/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/140828.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, August 28, 2014, Vol. 18, No. 239 Headlines 22ND CENTURY: Incurs $1.9 Million Net Loss in Second Quarter AC I MANAHAWKIN: U.S. Trustee Unable to Appoint Committee ACTIVECARE INC: Delays Second Quarter Form 10-Q for Analysis AFFYMAX INC: Xstelos Has Tender Offer to Acquire 25% Stake ALLY FINANCIAL: Posts $323 Million Net Income in Second Quarter ALPHA HOME: Voluntary Chapter 11 Case Summary AMERICAN APPAREL: Lion Capital Nominates Robert Mintz to Board AMERICAN POWER: Incurs $926,000 Net Loss in June 30 Quarter AMERICAN SPECTRUM: NYSE MKT Accepts Listing Compliance Plan AMINCOR INC: Issues 1.9MM Common Shares to Pres. and Interim CFO APOLLO MEDICAL: Incurs $1.6 Million Net Loss in June 30 Quarter ASSURED PHARMACY: Incurs $548,000 Net Loss in Second Quarter AUTOMATED BUSINESS: New Financing to Fund Plan Payments AXION INTERNATIONAL: Incurs $20.6-Mil. Net Loss in Second Quarter BAPTIST HOME: Creditors Have Until Oct. 16 to File Claims BAPTIST HOME: Oct. 1 Hearing on Bid for Exclusivity Extensions BIOFUELS POWER: Delays Second Quarter Form 10-Q BLX GROUP: 9th Cir. Rejects Tim Blixseth's Plan Appeal BON-TON STORES: Former CEO to Step Down From Board on Sept. 9 BOREAL WATER: Raises $140K From Strategic Funding Factoring Deal BUENA VISTA OCEANSIDE: Court Tosses Lawsuit Against Tenant CABEL PROPERTIES: Middle Creek, Goodwin Seeks Case Dismissal CAESARS ENTERTAINMENT: CERP Incurs $32MM Loss in Second Quarter CARTER'S GROVE: Liquidation Plan Confirmed; Assets Sold to Lender CHIQUITA BRANDS: Seeks to Reassure Investors on Fyffes Deal CHRISTIAN FAMILY WORSHIP: Case Summary & 6 Unsecured Creditors CICERO INC: Incurs $683,000 Net Loss in Second Quarter CIRCLE STAR: Expects $2 Million Net Loss in Fiscal 2014 COATES INTERNATIONAL: Board Approves Anti-Dilution Program COCRYSTAL PHARMA: Posts $4.7 Million Net Income in Second Quarter CORD BLOOD: Incurs $845,000 Net Loss in Second Quarter CRUMBS BAKE: Alan Chapell Named as Consumer Privacy Ombudsman CRUMBS BAKE: Alvarez & Marsal OK'd as Panel's Financial Advisors CRUMBS BAKE: Glassratner Advisory OK'd as Financial Advisor CRUMBS BAKE: Lowenstein Sandler Approved s Committee's Counsel DELTATHREE INC: Reports $466K Q2 Net Loss, Warns of Bankruptcy DETROIT, MI: Bonds Undergo Rating Actions After Tender Pd. Expires EDISON MISSION: Wants Chicago Bears' Suite License Claim Sacked EDUCATION MANAGEMENT: Enters Into Debt Restructuring Agreement EDUCATION TRAINING: Sketches Out Bankruptcy Sale Strategy ELITE PHARMACEUTICALS: Offering 3MM Shares Under Incentive Plan EMCOR GROUP: Moody Affirms Ba1 CFR & Rates $1.1BB Sr. Debt Ba1 ENNIS COMMERCIAL: Court Approves Colliers Tingey as Estate Broker ENNIS COMMERCIAL: Southern Sierra Approved as Real Estate Broker ENTERCOM COMMUNICATIONS: S&P Hikes Sr. Secured Debt Rating to BB EVERGREEN ACQCO1: S&P Revises Outlook to Neg. & Affirms 'B' CCR EXCITE MEDICAL: Case Summary & 6 Largest Unsecured Creditors FALCON STEEL: Names James Taylor as Chief Restructuring Officer FIRST DATA: Incurs $35 Million Net Loss in Second Quarter FIRST NAT'L COMMUNITY: Director Joseph Gentile Passed Away FOUNDATION HEALTHCARE: Incurs $1.5-Mil. Net Loss in 2nd Quarter FOUR OAKS: Kenneth Lehman Hikes Equity Stake to 50% FUSION TELECOMMUNICATIONS: Delays Q2 Form 10-Q for Audit GARLOCK SEALING: Ford, Honeywell Seek Access to RICO Claims GLOBAL GEOPHYSICAL: Amended DIP Loan Agreement Filed HYDROCARB ENERGY: CEO Quits; Kent Watts Assumes CEO Role INTELLICELL BIOSCIENCES: Delays Form 10-Q for Second Quarter INTERFAITH MEDICAL: Malpractice Claims Election Due Sept. 17 INTERFAITH MEDICAL: W. Caldwell Bid for Direct Plan Appeal Denied INTERLEUKIN GENETICS: CFO to Quit on Sept. 5 ISC8 INC: Delays Q3 Form 10-Q Over Financial Issues ISSAQUAH GLASS: Case Summary & 20 Largest Unsecured Creditors IZEA INC: Names LeAnn Hitchcock Chief Financial Officer JAMES CHARLES VAUGHN: Taxes Not Dischargeable, 10th Circuit Says JAMES RIVER: Has Court Approval to Sell Assets to Blackhawk Unit KO-KAUA OHANA: U.S. Trustee Balks at GlassRatner's Employment LAMSON & GOODNOW: 177-Yr Old Knife Maker Files Bankruptcy LARRY MCCLENDON: Defamation Claim Nondischargeable, 5th Cir. Says LIFEPOINT HOSPITALS: S&P Alters Outlook to Stable, Affirms BB- CCR LIGAND PHARMACEUTICALS: Lemelson Balks at Shares Sale LIQUIDMETAL TECHNOLOGIES: Inks $30MM Purchase Pact With Aspire LONG BEACH MEDICAL: Loeb & Troper Approved as Komanoff Auditors LONG BEACH MEDICAL: VCI to Serve as Medical Operations Advisor LYONDELL CHEMICAL: 5th Cir. Reverses Judgment in Union Dispute MASSIF MOUNTAIN: Bankr. Court Okays Sale of Assets to Samtech METADIGM INC: PE Firm Can't Shake WARN Claims From Cuts at Unit MERCATOR MINERALS: To File NOI Under Canadian Bankruptcy Act MF GLOBAL: Trustee Files Motion to Make Creditor Distributions MF GLOBAL: Execs Press Case for D&O Policy Proceeds MOBIVITY HOLDINGS: Incurs $1.4 Million Net Loss in Second Quarter MOMENTIVE PERFORMANCE: Make-Whole Ruling Rattles Bond Market MOMENTIVE PERFORMANCE: Expects to Exit Ch. 11 in Next Few Weeks N'GENUITY ENTERPRISES: Bo Jackson Dispute Prompts Ch.22 Filing NE OPCO: Court Denies Cenveo's Bid to Enforce Sept. 12 Sale Order NEOMEDIA TECHNOLOGIES: Posts $3.6 Million Net Income in Q2 NETTALK.COM INC: Delays Second Quarter Form 10-Q for Review NEW BERN RIVERFRONT: Weaver's Negligence Claim v. Curenton Nixed NEW BERN RIVERFRONT: No Quick Ruling in Weaver v. Gouras Dispute OMNICOMM SYSTEMS: Earns $580K in Q2, Doubts Going Concern Status PACDUNES INC: Case Summary & 20 Largest Unsecured Creditors PANACHE BEVERAGE: KLJ Replaces Silberstein as Accountant PENSKE AUTOMOTIVE: S&P Raises CCR to 'BB'; Outlook Stable PLASTIPAK HOLDINGS: S&P Affirms 'BB-' CCR; Outlook Stable PREMIER TRAILER: S&P Withdraws 'B-' CCR at Company's Request PREMONT INDEPENDENT SCHOOL: Moody's Affirms 'Ba1' GO Bonds Rating PRESSURE BIOSCIENCES: Presented at Wall Street Conference PSL-NORTH AMERICA: Gets Court OK to Sell Substantially All Assets PSL-NORTH AMERICA: CSX Approved to Proceed with Alabama Action RESIDENTIAL CAPITAL: Court Rejects Motion to Remand Suit v. UBS RESTORGENEX CORP: Grants 1.5MM Shares Options to Executives REVEL AC: Luis Salazar Appointed as Consumer Privacy Ombudsman REVEL AC: Gavin/Solmonese Okayed as Committee's Financial Advisor REVEL AC: Taps Ernst & Young LLP as Auditor and Tax Advisor REVEL AC: Wants to Hire Brattle Group as Economic Consultant RICEBRAN TECHNOLOGIES: Shareholders Elected 7 Directors RUBLE HOLDINGS: Voluntary Chapter 11 Case Summary QTS INC: Case Summary & 20 Largest Unsecured Creditors S&S THERMO: Files for Chapter 7 Bankruptcy in Minnesota SECUREALERT INC: Incurs $2.8 Million Net Loss in Third Quarter SHOTWELL LANDFILL: Fails in Bid to Dismiss LSCG Appeal SHOTWELL LANDFILL: Gurkins Appointed as Restructuring Officer SHOTWELL LANDFILL: Exclusivity Period Terminated SOUND SHORE: Disclosure Statement Hearing Set for Sept. 16 SOUTHERN PACIFIC RESOURCE: DBRS Puts 'CCC' Rating Under Review SWJ HOLDINGS: Connecticut Court Dismisses Chapter 11 Case TECHPRECISION CORP: Amends Fiscal 2014 Form 10-K TARGETED MEDICAL: Incurs $423,000 Net Loss in Second Quarter TELKONET INC: Posts $183,000 Net Income in Second Quarter TEXAS LEADERSHIP: S&P Lowers Rating on Revenue Bonds to 'BB' TRULAND SYSTEMS: Sept. 5 Bidding Deadline Set for Vehicles TRANS ENERGY: Reports $10.9 Million Net Loss in Second Quarter TRANS-LUX CORP: Had $2.5MM Q2 Loss, Doubts Going Concern Status UNITED AMERICAN: Delays Second Quarter Form 10-Q VERMILLION INC: Incurs $5.6 Million Net Loss in Second Quarter VERTICAL COMPUTER: Delays Form 10-Q for Second Quarter VUZIX CORP: Posts $239,000 Net Income in Second Quarter WEB.COM GROUP: Moody's Hikes 1st Lien Debt Rating to 'Ba1' WKI HOLDING: S&P Affirms 'B' CCR & Revises Outlook to Negative WORLD SURVEILLANCE: Delays Second Quarter Form 10-Q for Review WORLEY BROTHERS: Balks at Bid to Appoint Independent Examiner ZOGENIX INC: Armistice Capital Holds 5.9% Equity Stake * Goldman, Deutsche Escape $2.1-Bil. Guaranty Bank MBS Suit * Otterbourg's Cyganowski Named to GM Ignition Switch Committee * Credit Raters to Face New Conflict Curbs Under SEC Rules * Fed Urged to Ensure Emergency Lending Rules Bar Bailouts * Recent Small-Dollar & Individual Chapter 11 Filings ********* 22ND CENTURY: Incurs $1.9 Million Net Loss in Second Quarter ------------------------------------------------------------ 22nd Century Group Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.96 million on $16,114 of revenue for the three months ended June 30, 2014, compared to a net loss of $445,955 on $0 of revenue for the same period in 2013. For the six months ended June 30, 2014, the Company incurred a net loss of $7.28 million on $463,649 of revenue compared with a net loss of $2.95 million on $0 of revenue for the same period last year. As of June 30, 2014, the Company had $11.24 million in total assets, $2.11 million in total liabilities, and $9.12 million in total shareholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/3r5rfC About 22nd Century Clarence, New York-based 22nd Century Group, Inc., through its wholly-owned subsidiary, 22nd Century Ltd, is a plant biotechnology company using technology that allows for the level of nicotine and other nicotinic alkaloids (e.g., nornicotine, anatabine and anabasine) in tobacco plants to be decreased or increased through genetic engineering and plant breeding. 22nd Century reported a net loss of $26.15 million in 2013, a net loss of $6.73 million in 2012 and a net loss of $1.34 million in 2011. AC I MANAHAWKIN: U.S. Trustee Unable to Appoint Committee --------------------------------------------------------- U.S. Trustee William K. Harrington notifies the court that after he had contacted the 20 largest unsecured non-priority creditors, he attempted to form an official unsecured creditors' committee. The U.S. Trustee said that, as of the filing of notice on July 31, 2014, he has been unable to appoint a committee for unsecured creditors. AC I Inv Manahawkin LLC, AC I Manahawkin Mezz LLC and AC I Manahawkin LLC filed separate Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Case Nos. 14-22791, 14-22792 and 14-22793) on June 4, 2014. The petitions were signed by David Goldwasser, of GC Realty Advisors LLC, managing member. The Debtors estimated assets of $50 million to $100 million and debts of $0 to $50 million. Robinson Brog Leinwand Greene Genovese & Gluck, P.C., serves as the Debtors' counsel. Judge Robert D. Drain presides over the cases. Affiliates of AC I Inv., et al., have pending bankruptcy cases before Judge Drain. NY Affordable Housing Albany Assocs. LLC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 13-20007) on July 26, 2013. First Bronx LLC sought bankruptcy protection (Bankr. S.D.N.Y. Case NO. 14-22047) on Jan. 13, 2014. Ollie Allen Holding Company LLC sought bankruptcy (Case NO. 14-22204) on Feb. 18, 2014. ACTIVECARE INC: Delays Second Quarter Form 10-Q for Analysis ------------------------------------------------------------ ActiveCare, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the period ended July 30, 2014. The Company said it needs additional time to complete the presentation of its financial statements and the analysis thereof. About ActiveCare South West Valley City, Utah-based ActiveCare, Inc., is organized into three business segments based primarily on the nature of the Company's products. The Stains and Reagents segment is engaged in the business of manufacturing and marketing medical diagnostic stains, solutions and related equipment to hospitals and medical testing labs. The CareServices segment is engaged in the business of developing, distributing and marketing mobile health monitoring and concierge services to distributors and customers. The Chronic Illness Monitoring segment is primarily engaged in the monitoring of diabetic patients on a real time basis. The Company's business plan is to develop and market products for monitoring the health of and providing assistance to mobile and homebound seniors and the chronically ill, including those who may require a personal assistant to check on them during the day to ensure their safety and well being. ActiveCare incurred a net loss attributable to common stockholders of $25.95 million the year ended Sept. 30, 2013, as compared with a net loss attributable to common stockholders of $12.42 million for the year ended Sept. 30, 2012. The Company's balance sheet at March 31, 2014, showed $10.75 million in total assets, $9.78 million in total liabilities and $957,032 in total stockholders' equity. Tanner LLC, in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2013. The independent auditors noted that the Company has incurred recurring losses, has negative cash flows from operating activities, has negative working capital, and has negative total equity. These conditions, among others, raise substantial doubt about its ability to continue as a going concern. AFFYMAX INC: Xstelos Has Tender Offer to Acquire 25% Stake ---------------------------------------------------------- Xstelos Holdings, Inc., delivered a letter to the Affymax, Inc.'s board of directors on Aug. 25, 2014, reaffirming its proposal to buy from current stockholders of the Company up to 25% of the outstanding Shares of the Company at $0.10 per share, according to a document filed with the U.S. Securities and Exchange Commission. To the extent the tender offer is not fully subscribed, Xstelos is willing to buy additional shares directly from the Company. The letter also reiterated Xstelos' continued belief that its proposal, at $0.10 per Share, will offer significantly more value to the Company's shareholders than the Company's existing plan of liquidation, under which shareholders are estimated to receive between $0.05 and $0.06 per Share, while preserving the Company's ability to benefit from its net operating loss carryforwards. Under the Proposal, following the completion of the Tender Offer, the composition of the Board and its committees will be mutually agreed to by Xstelos and the Company. Subject to the Board's approval, Jon Couchman will serve as the Company's chief executive officer and chief financial officer. Mr. Couchman is currently the chief executive officer of Xstelos Holdings. As of Aug. 25, 2014, Jonathan M. Couchman beneficially owned 1,875,877 shares of the Company representing 5 percent of the shares outstanding. A copy of the Letter is available for free at: http://is.gd/W7i3xh About Affymax Affymax, Inc. (Nasdaq: AFFY) is a biopharmaceutical company based in Palo Alto, California. In March 2012, the U.S. Food and Drug Administration approved the Company's first and only product, OMONTYS(R) (peginesatide) Injection for the treatment of anemia due to chronic kidney disease in adult patients on dialysis. OMONTYS is a synthetic, peptide-based erythropoiesis stimulating agent, or ESA, designed to stimulate production of red blood cells and has been the only once-monthly ESA available to the adult dialysis patient population in the U.S. The Company co- commercialized OMONTYS with its collaboration partner, Takeda Pharmaceutical Company Limited, or Takeda during 2012 until February 2013, when the Company and Takeda announced a nationwide voluntary recall of OMONTYS as a result of safety concerns. Bankruptcy Warning The Company said in the Quarterly Report for the period ended March 31, 2014, "Because we have not made an irrevocable decision to liquidate, the accompanying condensed financial statements have been prepared under the assumption of a going concern basis that contemplates the realization of assets and liabilities in the ordinary course of business. Operating losses have been incurred each year since inception, resulting in an accumulated deficit of $559.5 million as of March 31, 2014. Nearly all of our revenues to date have come from our collaboration with Takeda. As a result of the February 23, 2013 nationwide voluntary recall of OMONTYS and the suspension of all marketing activities, there is significant uncertainty as to whether we will have sufficient existing cash to fund our operations for the next 12 months. Given our limited resources, there is no assurance that we will be able to reduce our operating expenses enough to meet our existing and future obligations and conduct ongoing operations. If we do not have sufficient funds to continue operations, we could be required to liquidate our assets, seek bankruptcy protection or other alternatives. Any failure to dispel any continuing doubts about our ability to continue as a going concern could adversely affect our ability to enter into collaborative relationships with business partners. These matters raise substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustments that may result from the outcome of this uncertainty." Affymax reported a net loss of $14.42 million in 2013 following a net loss of $93.41 million in 2012. As of June 30, 2014, the Company had $5.38 million in total assets, $214,000 in total liabilities, all current, and $5.17 million in total stockholders' equity. Ernst & Young LLP, in Redwood City, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that there is significant uncertainty as to whether the Company will have sufficient financial resources to fund its operations for the next 12 months. This condition raises substantial doubt about the Company's ability to continue as a going concern. ALLY FINANCIAL: Posts $323 Million Net Income in Second Quarter --------------------------------------------------------------- Ally Financial Inc. reported net income of $323 million, or $0.54 per diluted common share, for the second quarter of 2014 compared to net income of $227 million, or $0.33 per diluted common share, in the prior quarter, and a net loss of $927 million, or a loss of $2.73 per diluted common share, for the second quarter of 2013. The Company reported core pre-tax income of $400 million in the second quarter of 2014, compared to core pre-tax income of $336 million in the prior quarter and $201 million in the comparable prior year period. Core pre-tax income, excluding repositioning items, was $417 million for the second quarter of 2014, an increase of $205 million compared to same period last year. Results for the quarter were primarily driven by strong performance from the auto finance franchise. Consumer financing originations increased to $10.9 billion, the second highest quarter in Ally's history. Additionally, the Company continued to improve its cost of funds by increasing retail deposits 15 percent and improving its debt structure, which resulted in an increase in net financing revenue3 of 32 percent year-over-year. Moreover, strong credit performance contributed to an approximately 30 percent decline in provision for loan loss expense year-over-year. Partially offsetting results were unprecedented weather-related losses in the insurance business. Affecting the year-over-year comparison was also the non-recurrence of a $1.6 billion one-time charge taken in the second quarter of 2013 related to the comprehensive settlement agreement in the ResCap Chapter 11 bankruptcy case. "Ally's second quarter results demonstrate clear progress in our key objectives to improve profitability and drive value for our shareholders," said Chief Executive Officer Michael A. Carpenter. "Our core auto finance franchise had an outstanding quarter, posting the second highest level of consumer auto originations in Ally's history. Helping to drive these results were two high- water marks for the business, with the most decisioned applications in a quarter and the highest volume of used originations on record. These accomplishments speak to the strength of our franchise and our dealer-focused strategy." "Historically high weather losses due to severe hail storms in the Midwest during the quarter impacted results in the insurance business, but written premiums remained strong, totaling $267 million for the quarter," continued Carpenter. "Ally Bank continued to maintain steady momentum with retail deposits growing 15 percent in the past year to total $45.9 billion, and its customer base of loyal and purposeful savers expanded 18 percent during that time." Carpenter concluded, "We continue to make significant headway in all three areas of focus -- net interest margin expansion, expense reduction and regulatory normalization -- to reach double-digit core return on tangible common equity, which improved 190 basis points since last quarter to 8.4 percent. Going forward, our continued focus will be executing upon our three-pronged approach to further increase shareholder value, as we fully exit TARP and advance our leading dealer financial services and direct banking franchises." A full-text copy of the press release is available for free at: http://is.gd/BPm716 About Ally Financial Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/-- is one of the world's largest automotive financial services companies. The Company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3 percent stake. Private equity firm Cerberus Capital Management LP keeps 14.9 percent, while General Motors Co. owns 6.7 percent. As of March 31, 2014, the Company had $148.45 billion in total assets, $133.99 billion in total liabilities and $14.45 billion in total equity. * * * As reported by the TCR on Dec. 16, 2013, Standard & Poor's Ratings Services said it raised its issuer credit rating on Ally Financial Inc. to 'BB' from 'B+'. "The upgrade reflects the company's release from potential legal and financial liabilities stemming from its ownership of ResCap," said Standard & Poor's credit analyst Tom Connell. In the April 3, 2014, edition of the TCR, Fitch Ratings has upgraded Ally Financial Inc.'s long-term Issuer Default Rating (IDR) and senior unsecured debt rating to 'BB+' from 'BB'. The rating upgrade reflects increased clarity around Ally's ownership structure given Ally's recent announcement that it has launched an initial public offering those shares of its common stock held by the U.S. Treasury (the Treasury). As reported by the TCR on July 16, 2014, Moody's Investors Service affirmed the Ba3 corporate family and B1 senior unsecured ratings of Ally Financial, Inc. and revised the outlook for the ratings to positive from stable. Moody's affirmed Ally's ratings and revised its rating outlook to positive based on the company's progress toward sustained improvements in profitability and repayment of government assistance received during the financial crisis. ALPHA HOME: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Alpha Home Association of Greater Indianapolis (Indiana) Inc. 2640 Cold Spring Road Indianapolis, IN 46222 Case No.: 14-07997 Type of Business: Health Care Chapter 11 Petition Date: August 26, 2014 Court: United States Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: Hon. James K. Coachys Debtor's Counsel: Brian D. Salwowski, Esq. BRIAN D. SALWOWSKI, ATTORNEY AT LAW 8117 E. Washington St. #B Indianapolis, IN 46229 Tel: 317-292-4320 Email: bsalwowski@gmail.com Estimated Assets: $500 million to $1 billion Estimated Liabilities: $500 million to $1 billion The petition was signed by Jamell Burks-Craig, president. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. AMERICAN APPAREL: Lion Capital Nominates Robert Mintz to Board -------------------------------------------------------------- Suzanne Kapner, writing for The Wall Street Journal, citing people familiar with the matter, reported that Lion Capital, LLP, which holds warrants to buy 12% of American Apparel Inc.'s stock, has told the fashion company that it is exercising its right to fill one of the two vacant board seats it controls. According to the Journal, the firm has nominated Robert Mintz, most recently chief executive of rib and barbecue supplier Rupari Food Services Inc. Mr. Mintz attended middle school and high school in Montreal with American Apparel founder Dov Charney, the Journal said, citing one of the people. About American Apparel Los Angeles, Calif.-based American Apparel, Inc. (NYSE Amex: APP) -- http://www.americanapparel.com/-- is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel. As of September 2010, American Apparel employed over 10,000 people and operated 278 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea and China. Amid liquidity problems and declining sales, American Apparel in early 2011 reportedly tapped law firm Skadden, Arps, Slate, Meagher & Flom and investment bank Rothschild Inc. for advice on a restructuring. In April 2011, American Apparel said it raised $14.9 million in rescue financing from a group of investors led by Canadian financier Michael Serruya and private equity firm Delavaco Capital Corp., allowing the casual clothing retailer to meet obligations to its lenders for the time being. Under the deal, the investors were buying 15.8 million shares of common stock at 90 cents apiece. The deal allows the investors to purchase additional 27.4 million shares at the same price. American Apparel reported a net loss of $106.29 million on $633.94 million of net sales for the year ended Dec. 31, 2013, as compared with a net loss of $37.27 million on $617.31 million of net sales for the year ended Dec. 31, 2012. As of Dec. 31, 2013, the Company had $333.75 million in total assets, $411.15 million in total liabilities and a $77.40 million total stockholders' deficit. * * * As reported by the Troubled Company Reporter on Feb. 26, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating to 'CCC' from 'B-' on Los Angeles-based American Apparel Inc. The outlook is developing. The Troubled Company Reporter, on Nov. 21, 2013, reported that American Apparel Inc. had its corporate family rating cut one level to Caa2 by Moody's Investors Service. The clothing retailer's probability of default was also lowered one level and the outlook is negative. AMERICAN POWER: Incurs $926,000 Net Loss in June 30 Quarter ----------------------------------------------------------- American Power Group Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss available to common stockholders of $925,991 for the three months ended June 30, 2014, compared to a net loss available to common stockholders of $384,197 for the same period in 2013. Net sales for the three months ended June 30, 2014, were $1.78 million compared to net sales of $2.15 million for the same period during the prior year. The Company also reported a net loss available to common stockholders of $2.22 million for the nine months ended June 30, 2014 compared to a net loss available to common stockholders of $2.03 million for the same period in 2013. As of June 30, 2014, the Company had $9.58 million in total assets, $5.67 million in total liabilities and $3.90 million in total stockholder's equity. As of June 30, 2014, the Company had $1,537,854 in cash, cash equivalents and restricted certificates of deposit and working capital deficiency of $934,306. Lyle Jensen, American Power's chief executive officer, stated, "The past 120 days have been very productive with new dealers, expanding regions, more early-adopter customers and optimizing field performance of our dual fuel solution with our existing customers. We have begun to open up Canada, the Caribbean and the America's with several well known multi-national vehicular customers who collectively operate thousands of vehicles. We now have over 240 dual fuel trucks operating in over 21 states in the United States with fueling infrastructure continuing to be the most significant hurdle facing accelerated Class 8 adoption. We are expanding our cooperative sales and marketing efforts with many of the major CNG and LNG fuel suppliers in the U.S. and Canada to identify potential customers who through our cost effective dual fuel solution can allow the suppliers to optimize existing locations and/or justify developing new locations." Mr. Jensen added, "So as we finish up our fourth quarter, fiscal 2014 will have been an important year of early-adopter evaluations, field validation of our dual fuel system and most importantly, an increasing acceptance of dual fuel as a second mainstream fueling solution for natural gas vehicles. While we still have approximately 45 days to book and ship product, we believe the scheduled timing of approximately 150 follow-on dealer/customer vehicular deliveries will slip beyond September into the next fiscal year. This would put fiscal 2014 revenue in the $7 million to $8 million range, exclusive of backlog but with a growing number of early-adopter customers and follow-on customers entering fiscal 2015." A full-text copy of the Form 10-Q is available for free at: http://is.gd/IR1sd9 About American Power Group American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural GasTM conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100 percent diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 80% of the normal diesel fuel consumption with the average displacement ranging from 40 percent to 65 percent. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. Additional information at http://www.americanpowergroupinc.com/ AMERICAN SPECTRUM: NYSE MKT Accepts Listing Compliance Plan ----------------------------------------------------------- American Spectrum Realty, Inc. on Aug. 25 announced its receipt of correspondence from NYSE MKT LLC advising the Company that it accepted the Company's plan to regain compliance with the Exchange's continued listing standards and establishing time periods for the Company to regain compliance. On March 31, 2014, the Company filed a Form 12b-25 with the Securities and Exchange Commission disclosing that it was unable to file with the SEC its annual report on Form 10-K for the year ended December 31, 2013 by April 1, 2014 and that it expected to file its annual report as soon as practicable. On April 16, 2014, the Company received correspondence from the Exchange advising the Company that it was not in compliance with the continued listing standards of the Exchange as a result of the failure to timely file the 2013 Form 10-K. The Company submitted to the Exchange on April 30, 2014, a plan of compliance setting forth the steps intended to be taken by the Company to regain compliance with the NYSE MKT Company Guide no later than July 15, 2014. On June 25, 2014, the Company received correspondence from the Exchange, notifying the Company that the Exchange accepted the Company's plan and granted the Company extensions to regain compliance with the continued listing standards of the Exchange to no later than July 15, 2014 for the 2013 Form 10-K and no later than August 18, 2014 for the 2014 March Form 10-Q. On August 4, 2014, the Company received correspondence from the Exchange, notifying the Company that the Exchange accepted the Company's plan and granted the Company further extensions to regain compliance with the continued listing standards of the Exchange to no later than September 2, 2014 for the 2013 Form 10-K and no later than October 3, 2014 for the 2014 March Form 10-Q. The Company will be subject to periodic review by the Exchange during the Plan Periods. Failure to make progress consistent with the Plan or to regain compliance with the continued listing standards by the end of the Plan Periods could result in the Company being delisted from the Exchange. On August 19, 2014, the Company received additional correspondence from the Exchange advising that the Company is not in compliance with certain of the Exchange's continued listing standards and the Company has therefore become subject to the procedures and requirements of Section 1009 of the NYSE MKT Company Guide. The Exchange has advised that in order for the Company to maintain its listing with the Exchange, the Company must submit a plan of compliance by September 18, 2014 addressing how the Company intends to regain compliance with the Exchange's listing requirements by February 19, 2016. The Exchange's Issuer Oversight Department will evaluate the Company's Plan and make a determination as to whether such Plan provides a reasonable demonstration of the Company's ability to regain compliance within the Plan Period. If the Exchange accepts the Plan, the Company may be able to continue its listing during the Plan Period subject to periodic reviews by the Exchange to determine whether the Company is making progress consistent with the Plan. The Company continues to work towards compliance with the Plan and intends to file the 2013 Form 10-K and 2014 March Form 10-Q as soon as practicable. About American Spectrum Realty American Spectrum Realty, Inc. -- http://www.asrmanagement.com/-- is a real estate investment company that owns, through an operating partnership, interests in office, industrial, retail, self-storage, RV parks, retail, multi-family properties and undeveloped land throughout the United States. American Spectrum Management Group, Inc., a wholly-owned subsidiary of the Company, manages and leases all properties owned by American Spectrum Realty, Inc. as well as for third-party clients totaling 10 million square feet in multiple states. AMINCOR INC: Issues 1.9MM Common Shares to Pres. and Interim CFO ---------------------------------------------------------------- Pursuant to a unanimous written consent, the Board of Directors of the Amincor, Inc., approved the issuance of 1,924,242 shares of Class A Voting Common Stock, par value $0.001 to each of John R. Rice III, its president and Joseph F. Ingrassia its vice-president and interim financial officer for a total aggregate consideration of $127,000. The Shares have not been registered under the Securities Act of 1933, as amended and are restricted accordingly. About Amincor Inc. New York, N.Y.-based Amincor, Inc., is a holding company operating through its operating subsidiaries Baker's Pride, Inc., Environmental Holdings Corp. and Tyree Holdings Corp., and Amincor Other Assets, Inc. BPI is a producer of bakery goods. Tyree performs maintenance, repair and construction services to customers with underground petroleum storage tanks and petroleum product dispensing equipment. Through its wholly owned subsidiaries, Environmental Quality Services, Inc., and Advanced Waste & Water Technology, Inc., EHC provides environmental and hazardous waste testing and water remediation services in the Northeastern United States. Other Assets, Inc., was incorporated to hold real estate, equipment and loan receivables. As of March 31, 2013, all of Other Assets' real estate and equipment are classified as held for sale. As of March 31, 2014, the Company had $27.09 million in total assets, $43.81 million in total liabilities and a $16.71 million total deficit. APOLLO MEDICAL: Incurs $1.6 Million Net Loss in June 30 Quarter --------------------------------------------------------------- Apollo Medical Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $1.67 million on $4.09 million of net revenues for the three months ended June 30, 2014, compared with a net loss attributable to the Company of $1.93 million on $2.61 million of net revenues for the same period in 2013. As of June 30, 2014, the Company had $8.80 million in total assets, $11.79 million in total liabilities and a $2.99 million total stockholders' deficit. At June 30, 2014, the Company had cash equivalents and marketable securities of $6.2 million compared to cash and cash equivalents of $6.8 million at March 31, 2014. At June 30, 2014 the Company had borrowings totalling $6.7 million compared to borrowings at March 31, 2014 of $6.7 million. A full-text copy of the Form 10-Q is available for free at: http://is.gd/UQ4Mrp About Apollo Medical Glendale, Calif.-based Apollo Medical Holdings, Inc., provides hospitalist services in the Greater Los Angeles, California area. Hospitalist medicine is organized around the admission and care of patients in an inpatient facility such as a hospital or skilled nursing facility and is focused on providing, managing and coordinating the care of hospitalized patients. Apollo Medical reported a net loss of $4.55 million for the year ended Jan. 31, 2014, following a net loss of $8.90 million for the year ended Jan. 31, 2013. ASSURED PHARMACY: Incurs $548,000 Net Loss in Second Quarter ------------------------------------------------------------ Assured Pharmacy, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $548,254 on $2.17 million of sales for the three months ended June 30, 2014, compared to a net loss of $1.84 million on $1.38 million of sales for the same period last year. Net Loss for the six months ended June 30, 2014, was $673,512 on $3.79 million of sales compared to a net loss of $2.98 million on $3.07 million of sales for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $746,339 in total assets, $9.19 million in total liabilities, $3.17 million in series D redeemable convertible preferred stock, and a $11.62 million stockholder's deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/veJbea About Assured Pharmacy Headquartered in Frisco, Texas, Assured Pharmacy, Inc., is engaged in the business of establishing and operating pharmacies that specialize in dispensing highly regulated pain medication for chronic pain management. The Company was organized as a Nevada corporation on Oct. 22, 1999, under the name Surforama.com, Inc., and previously operated under the name eRXSYS, Inc. The Company changed its name to Assured Pharmacy, Inc., in October 2005. In their report on the consolidated financial statements for the year ended Dec. 31, 2013, BDO USA, LLP, expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has suffered recurring losses from operations and has a net capital deficiency. The Company reported a net loss of $3.36 million on $5.19 million of sales in 2013, compared with a net loss of $4 million on $5.64 million of sales in 2012. AUTOMATED BUSINESS: New Financing to Fund Plan Payments ------------------------------------------------------- Automated Business Power, Inc., et al.'s First Amended Plan of Reorganization provides that the funds necessary to implement the Plan will be generated from, among other things, (i) cash receipts fro operations; and (ii) the acquisition by the Debtors of new financing in an amount sufficient to pay the Class 1 claim in full and if possible, also the Allowed Classes 2 and 3 Claims. A copy of the Plan dated May 29, 2014, is available at: http://bankrupt.com/misc/AutomatedBus_200_194_Suppdoc_1stAplan.pdf About Automated Business Power Military supplier Automated Business Power, Inc., and Automated Business Power Holding Co. filed their Chapter 11 petitions (Bankr. D. Md. Case Nos. 13-27123 and 13-27125) on Oct. 8, 2013. Automated Business Power has been engaged in the design and production of advanced filed deployable uninterruptible power supplies, AC-to-DC power supplier, DC-to-DC converters, uninterruptible power systems, Power/Voice/Data cases, speakers, speaker/voice systems and ancillary equipment tactical transceivers, power amplifiers, SATCOM, and other communications equipment. The petitions were signed by Daniel Akman as president. The Debtors estimated assets of at least $50 million and liabilities of at least $10 million. The Debtor is represented by Nelson C. Cohen, Esq., at Zuckerman Spaeder LLP, in Washington, D.C. The Debtor tapped Dickinson Wright and Michael R. Holzman as Special ESOP Plan Counsel. PNC Bank is represented by James M. Smith, Esq., and Lisa Bittle Tancredi, Esq., at Gebhardt & Smith LLP. AXION INTERNATIONAL: Incurs $20.6-Mil. Net Loss in Second Quarter ----------------------------------------------------------------- Axion International Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common shareholders of $20.61 million on $4.05 million of revenue for the three months ended June 30, 2014, compared to net income attributable to common shareholders of $3.10 million on $1.49 million of revenue for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss attributable to common shareholders of $17.42 million on $8.90 million of revenue compared to a net loss attributable to common shareholders of $4.17 million on $3.25 million of revenue for the same period in 2013. As of June 30, 2014, the Company had $16.40 million in total assets, $34.04 million in total liabilities, $6.94 million in 10% convertible preferred stock, and a $24.58 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/bAdkGa About Axion International New Providence, N.J.-based Axion International Holdings, Inc. (OTC BB: AXIH) - http://www.axionintl.com/-- is the exclusive licensee of patented and patent-pending technologies developed for the production of structural plastic products such as railroad crossties, pilings, I-beams, T-Beams, and various size boards including a tongue and groove design that are utilized in multiple engineered design solutions such as rail track, rail and tank bridges (heavy load), pedestrian/park and recreation bridges, marinas, boardwalks and bulk heading to name a few. AXION International reported a net loss of $24.19 million on $6.63 million of revenue in 2013, compared to a net loss of $5.43 million on $5.34 million of revenue in 2012. Following the 2013 results, BDO USA, LLP, expressed substantial doubt about the Company's ability to continue as a going concern, stating that the Company has suffered recurring losses from operations and has working capital and net capital deficiencies. BDO USA, LLP also issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. BAPTIST HOME: Creditors Have Until Oct. 16 to File Claims --------------------------------------------------------- The Bankruptcy Court established Oct. 16, 2014, as the deadline for any individual or entity ? except governmental entities -- to file proofs of claim against The Baptist Home of Philadelphia doing business as Deer Meadows Retirement Community, et al. Governmental units have until Oct. 22, 2014 to file proofs of claims. About The Baptist Home of Philadelphia The Baptist Home of Philadelphia and The Baptist Home Foundation sought Chapter 11 protection (Bankr. E.D. Pa. Case Nos. 14-13305 and 14-13306) in Philadelphia on April 25, 2014. Baptist Home of Philadelphia is a Pennsylvania nonprofit corporation that owns and operates a continuing care retirement community known as "Deer Meadows Retirement Community", which is located at 8301 Roosevelt Boulevard, Philadelphia, Pennsylvania. Home offers 126 living accommodations, which vary in size, for independent living and personal care. It presently also has 206 skilled nursing beds in the nursing and rehabilitation center that offers short and long term care. It has 369 employees. Baptist Home of Philadelphia disclosed $37,330,904 in assets and $34,562,834 in liabilities as of the Chapter 11 filing. The Debtors have tapped Cozen O'Connor as counsel and KPMG Corporate Finance LLC as financial advisor and investment banker. The U.S. Trustee appointed Wilmarie Gonzalez as patient care ombudsman. U.S. Bank National Association, the trustee with regard to the secured bond indebtedness, hired Reed Smith LLP as counsel and CohnReznick LLP as financial advisor. Pepper Hamilton LLP represents the Official Committee of Unsecured Creditors. BAPTIST HOME: Oct. 1 Hearing on Bid for Exclusivity Extensions -------------------------------------------------------------- The Bankruptcy Court will convene a hearing on Oct. 1, 2014, at 11:00 a.m., to consider The Baptist Home of Philadelphia, et al.'s motion for exclusivity extensions. Objections, if any, are due Sept. 24. The Debtors are requesting for an extension of their time to file a plan of reorganization until Oct. 22, 2014, and solicit acceptances for that plan until Dec. 22. This was the Debtors' first request for an extension. About The Baptist Home of Philadelphia The Baptist Home of Philadelphia and The Baptist Home Foundation sought Chapter 11 protection (Bankr. E.D. Pa. Case Nos. 14-13305 and 14-13306) in Philadelphia on April 25, 2014. Baptist Home of Philadelphia is a Pennsylvania nonprofit corporation that owns and operates a continuing care retirement community known as "Deer Meadows Retirement Community", which is located at 8301 Roosevelt Boulevard, Philadelphia, Pennsylvania. Home offers 126 living accommodations, which vary in size, for independent living and personal care. It presently also has 206 skilled nursing beds in the nursing and rehabilitation center that offers short and long term care. It has 369 employees. Baptist Home of Philadelphia disclosed $37,330,904 in assets and $34,562,834 in liabilities as of the Chapter 11 filing. The Debtors have tapped Cozen O'Connor as counsel and KPMG Corporate Finance LLC as financial advisor and investment banker. The U.S. Trustee appointed Wilmarie Gonzalez as patient care ombudsman. U.S. Bank National Association, the trustee with regard to the secured bond indebtedness, hired Reed Smith LLP as counsel and CohnReznick LLP as financial advisor. Pepper Hamilton LLP represents the Official Committee of Unsecured Creditors. BIOFUELS POWER: Delays Second Quarter Form 10-Q ----------------------------------------------- Biofuels Power Corp. disclosed with the U.S. Securities and Exchange Commission that its financial statements for the quarter ended June 30, 2014, are not yet ready for distribution as a result of recent measures the Company has taken with regard to efforts to sign operating agreements which will effect subsequent events at the balance sheet date. Biofuels Power Humble, Tex.-based Biofuels Power Corporation is a distributed energy company that is pioneering the use of biodiesel to fuel small electric generating facilities that are located in close proximity to end-users. BPC's first power plant is currently located near Houston, Texas in the city of Oak Ridge North. Biofuels Power reported a net loss of $606,556 on $0 of sales for the year ended Dec. 31, 2013, as compared with net income of $342,456 on $0 of sales in 2012. The Company's balance sheet at March 31, 2014, showed $1.21 million in total assets, $6.24 million in total liabilities and a $5.03 million total stockholders' deficit. Clay Thomas, P.C., in Abilene, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered significant losses and will require additional capital to develop its business until the Company either (1) achieves a level of revenues adequate to generate sufficient cash flows from operations; or (2) obtains additional financing necessary to support its working capital requirements. These conditions raise substantial doubt about the Company's ability to continue as a going concern. BLX GROUP: 9th Cir. Rejects Tim Blixseth's Plan Appeal ------------------------------------------------------ A three-judge panel of the United States Court of Appeals, Ninth Circuit tossed an appeal by Timothy L. Blixseth from the district court's order dismissing his appeal of the bankruptcy court's order confirming the Modified Third Amended Plan of Liquidation for the BLX Group, Inc. Bankruptcy Estate. "The district court properly concluded that Blixseth does not have appellate standing with regard to the order he did appeal, the Confirmation Order, because he was not a "person aggrieved" by that order," according to the Ninth Circuit. "We affirm the dismissal of the appeal," the Ninth Circuit said in its August 26 Memorandum available at http://is.gd/ay3Ef1from Leagle.com. The case is, TIMOTHY L. BLIXSETH, Appellant, v. CARL A. EKLUND, Esquire, Chapter 11 Trustee of BLX Group, Inc., Appellee, No. 13- 35122 (9th Cir.). Marc S. Kirschner, as trustee of the Yellowstone Club Liquidating Trust, owed $190 million, together with two other creditors filed an involuntary chapter 11 petition (Bankr. D. Mont. Case No. 09- 61893) on Sept. 21, 2009. Charles W. Hingle, Esq., at Holland & Hart LLP in Billings, Mont., represented the Petitioners. BON-TON STORES: Former CEO to Step Down From Board on Sept. 9 ------------------------------------------------------------- The Bon-Ton Stores, Inc., disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that Brendan L. Hoffman will continue to serve as a director of the Company through the meeting of the Board of Directors currently scheduled for Sept. 9, 2014, at which time Mr. Hoffman will resign as a director of the Company. Mr. Hoffman's employment as president and chief executive officer of the Company ceased effective as of Aug. 25, 2014. Mr. Hoffman will continue to work with the Company through a transition period. About Bon-Ton Stores The Bon-Ton Stores, Inc. -- http://www.bonton.com-- with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 272 department stores, which includes 10 furniture galleries, in 25 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates. The stores offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. Bon-Ton Stores reported a net loss of $3.55 million for the fiscal year ended Feb. 1, 2014, a net loss of $21.55 million for the year ended Feb. 2, 2013, and a net loss of $12.12 million for the year ended Jan. 28, 2012. The Company's balance sheet at May 3, 2014, showed $1.56 billion in total assets, $1.47 billion in total liabilities and $96.05 million in total shareholders' equity. * * * As reported by the TCR on May 15, 2013, Moody's Investors Service upgraded The Bon-Ton Stores, Inc.'s Corporate Family Rating to B3 from Caa1 and its Probability of Default Rating to B3-PD from Caa1-PD. "The upgrade of Bon-Ton's Corporate Family Rating considers the company's ability to drive modest same store sales growth as well as operating margin expansion beginning in the second half of 2012 and that these positive trends have continued, with the company reporting that its same store were positive, and EBITDA margins expanded, in the first fiscal quarter of 2013," said Moody's Vice President Scott Tuhy. As reported by the TCR on May 17, 2013, Standard & Poor's Ratings Services affirmed the 'B-' corporate credit rating on The Bon-Ton Stores Inc. BOREAL WATER: Raises $140K From Strategic Funding Factoring Deal ---------------------------------------------------------------- Boreal Water Collection, Inc., entered into a "Revenue Based Factoring (RBF/ACH) Agreement" with Strategic Funding Source, Inc., on Aug. 14, 2014, according to a Form 8-K filed with the U.S. Securities and Exchange Commission. The Company, pursuant to the Agreement, sold future receipts, accounts, written contracts and other obligations to SFS. SFS purchased a total of $140,000 in receipts, which payment was received by the Company on Aug. 22, 2014. The Agreement has an indefinite term, lasting until the Company completes its obligations. SFS has a security interest in all accounts, chattel paper, equipment, general intangibles, instruments and inventory. Mrs. Francine Lavoie, sole member of the Board of Directors and Company CEO, has also personally guaranteed the Agreement. The Agreement is governed by New York law. A copy of the regulatory filing is available for free at: http://is.gd/Y1fm8O About Boreal Water Kiamesha Lake, N.Y.-based Boreal Water Collection, Inc., is a personalized bottled water company specializing in premium custom bottled water. Boreal Water reported net income of $849,748 on $2.15 million of sales for the year ended Dec. 31, 2013, as compared with a net loss of $822,902 on $2.68 million of sales in 2012. The Company's balance sheet at March 31, 2014, showed $3.07 million in total assets, $2.54 million in total liabilities and $536,291 in total stockholders' equity. Terry L. Johnson, CPA, in Casselberry, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditor noted that the Company has incurred a deficit of approximately $2.5 million and has used approximately $400,000 of cash due to its operating activities in the two years ended Dec. 31, 2013. The Company may not have adequate readily available resources to fund operations through Dec. 31, 2014. This raises substantial doubt about the Company's ability to continue as a going concern. BUENA VISTA OCEANSIDE: Court Tosses Lawsuit Against Tenant ---------------------------------------------------------- BUENA VISTA OCEANSIDE, LLC, Plaintiff, v. HOLISTIX 24, INC, HOLISTIX BY THE SEA, LLC, KEVIN SPARKS AND RYAN ZOFAY, Defendants, Adv. Proc. No. 14-02078-CMB (Bankr. W.D. Pa.), is dismissed for the Court's lack of subject-matter jurisdiction to adjudicate the adversary proceeding, Bankruptcy Judge Carlota M. Bohm ruled in an August 25 Memorandum Order available at http://is.gd/FXd3MAfrom Leagle.com. The Debtor commenced the lawsuit on April 9, 2014, asserting post- petition claims for breach of contract, fraud, imposition of constructive trust, and piercing the corporate veil under a commercial lease agreement with Holistix. The Debtor avers that by October 2013, Holistix was delinquent in rent to the Debtor in excess of $100,000. The Defendants sought dismissal of the Complaint. Jeffrey A. Hulton, Esq., represents Buena Vista Oceanside. Erica L. Koehl, Esq., and Norman E. Gilkey, Esq., represent the Defendants. Buena Vista Oceanside, LLC, filed a petition under Chapter 7 of the Bankruptcy Code (Banr. W.D. Pa. Case No. 11-24516) on July 20, 2011, which was subsequently converted to a case under Chapter 11 on August 9, 2011. The Debtor filed its Fifth Amended Plan of Reorganization and Fifth Amended Disclosure Statement to Accompany Amended Plan Dated March 11, 2013, on March 11, 2013, which was confirmed by the Court on May 29, 2013. On November 20, 2013, the Debtor filed Debtor's Motion for Final Decree in Accordance with 11 U.S.C. Sec. 1106(a)(7) and Report of Debtor. CABEL PROPERTIES: Middle Creek, Goodwin Seeks Case Dismissal ------------------------------------------------------------ Middle Creek and William R. Goodwin seek to dismiss the chapter 11 case filed by the debtor Cabel Properties on the ground of bad faith. Middle Creek and Goodwin, in the alternative, ask the court to grant automatic stay to litigate the disputes. The Movants allege that the filing of the chapter 11 case by the debtor is a means to obtain a tactical litigation advantage in connection with a contract dispute between the parties. On January 26, 2009, Middle Creek and Goodwin entered into a purchase agreement with George P. Cabel, the Debtor's owner, for the purchase of a property. The purchase agreement expressly states that the sale of the property to Mr. Cabel is subject to the existing lease between Goodwin and E.R. Linde Construction Corp. and to the right of first refusal between Goodwin and Linde. Linde exercised its right of first refusal and obtained on June 7, 2013, an injunction prohibiting the sale of the property. On May 2, 2013, the movants entered into a mutual release agreement with Mr. Cabel. The agreement required the closing of the sale by August 30, 2013. However, it was only on February 24, 2014 that the movants reached a settlement, resulting in the recording of a deed which granted a 50% undivided interest in the property to Goodwin and a 50% undivided interest to Linde. The debtor files it objection to the motion to dismiss the chapter 11 case. On May 20, 2014, the debtor commenced a chapter 11 case for the purpose of assuming the purchase agreement, as modified by the mutual release agreement, and to consummate the sale of the property. The Debtor asserts that the court has exclusive jurisdiction to assume the purchase agreement under section 365 of the bankruptcy code. Hence, the commencement of the chapter 11 case is not tainted with bad faith as it is the court that has the appropriate forum to adjudicate the propriety of its assumption of the mutual release agreement, a remedy available exclusively in the bankruptcy forum. On the other hand, relative to the filing of the movants of the motion to dismiss, Linde seeks to intervene by requesting the court to declare the purchase agreement terminated, not capable of assumption and time-barred under its own term and under the provisions of the bankruptcy code. In opposition to the intervention of Linde, the Debtor asserts that Linde does not hold a claim, and is not a creditor, within the meaning of the Bankruptcy Code. Middle Creek Quarry and William R. Goodwin are represented by: Barry D. Kleban, Esq. Aaron S. Applebaum, Esq. McELROY, DEUTSCH, MULVANEY & CARPENTER, LLP 1617 John F. Kennedy Philadelphia, PA 19103-1815 Tel: 215-557-2900 E.R. Linde Construction is represented by: Eugene C. Kelley, Esq. KELLEY, POLISHAN, WALSH & SOLFANELLI, LLC 259 South Keyser Avenue Old Forge PA 18518 Tel: 570-562-4520 Fax: 570-562-4531 Email: ekelley@kpwslaw.com Cabel Properties is represented by: Jeffrey Kurtzman, Esq. KLEHR HARRISON HARVEY BRANZBURG 1835 Market Street, Suite 1400 Philadelphia, PA 19103 Telephone: (215) 569-4493 E-mail: Jkurtzman@klehr.com About Cabel Properties Cabel Properties, LLC, filed a Chapter 11 petition (Bankr. M.D. Pa. Case No. 14-02370) in Wilkes-Barre, Pennsylvania, on May 20, 2014. The Debtor estimated assets of $10 million to $50 million and debt of $50,000 to $100,000. Judge John J Thomas oversees the case. The Tafton, Pennsylvania-based company is represented by Jeffrey D Kurtzman, Esq., at Klehr, Harrison, Harvey, Branzburg LLP, in Philadelphia, as counsel. CAESARS ENTERTAINMENT: CERP Incurs $32MM Loss in Second Quarter --------------------------------------------------------------- Caesars Entertainment Corporation filed with the U.S. Securities and Exchange Commission a copy of the financial statements of Caesars Entertainment Resort Properties, LLC, for the period ended June 30, 2014. The Form 10-Q was filed for presentation purposes only. CERP incurred a net loss of $32.3 million on $538.2 million of net revenues for the three months ended June 30, 2014, compared to net income of $42.5 million on $526.5 million of net revenues for the same period in 2013. As of June 30, 2014, the Company had $7.37 billion in total assets, $6.27 billion in total liabilities and $1.10 billion in total owner's equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/YTp9WH Supplemental Indentures Caesars Entertainment Corporation previously consummatied the transaction contemplated by the Note Purchase and Support Agreement entered into as of Aug. 12, 2014, by and among CEC, Caesars Entertainment Operating Company, Inc., and certain holders of CEOC's outstanding 5.75% Senior Notes due 2017 and 6.50% Senior Notes due 2016. In connection with the closing of the Transaction, CEOC entered into supplemental indenture including (i) the First Supplemental Indenture, dated as of Aug. 22, 2014, between CEOC and Law Debenture Trust Company of New York, as trustee, relating to the 5.75% Notes, and (ii) the First Supplemental Indenture, dated as of Aug. 22, 2014, among CEOC, CEC and the Trustee, relating to the 6.50% Notes, which, in each case removed the provisions relating to CEC's guarantee of the 5.75% Notes and 6.50% Notes, respectively. Copies of the Indentures are available for free at: http://is.gd/jrzw92and http://is.gd/vG10dm About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. -- http://www.caesars.com/-- is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. Caesars Entertainment reported a net loss of $2.93 billion in 2013, as compared with a net loss of $1.50 billion in 2012. As of June 30, 2014, the Company had $27.06 billion in total assets, $29.64 billion in total liabilities and a $2.57 billion total deficit. * * * As reported by the TCR on April 9, 2013, Moody's Investors Service downgraded Caesars Entertainment Corporation's Corporate Family Rating to Caa2. "The downgrade of Caesars' ratings considers that its same store EBITDA growth in 2012-2013 has failed to materialize to any significant degree, and so Caesars' credit metrics have deteriorated and its free cash flow deficit will be higher than Moody's previous expectations," stated Moody's analyst Peggy Holloway. In the April 10, 2014, edition of the TCR, Standard & Poor's Ratings Services lowered its corporate credit ratings on Las Vegas-based Caesars Entertainment Corp. (CEC) and wholly owned subsidiaries, Caesars Entertainment Operating Co. (CEOC) and Caesars Entertainment Resort Properties (CERP), as well as the indirectly majority-owned Chester Downs and Marina, to 'CCC-' from 'CCC+'. The downgrade reflects S&P's expectation that Caesars' capital structure is unsustainable, and the amount of cash the company will burn in 2014 and 2015 creates conditions under which S&P believes a restructuring of some form is increasingly likely over the near term absent an unanticipated significantly favorable change in operating performance. As reported by the TCR on May 1, 2014, Fitch Ratings had downgraded the Issuer Default Ratings (IDRs) of Caesars Entertainment Corp (CEC) and Caesars Entertainment Operating Company (CEOC) to 'CC' from 'CCC'. CARTER'S GROVE: Liquidation Plan Confirmed; Assets Sold to Lender ----------------------------------------------------------------- Judge Stephen C. St. John of the U.S. Bankruptcy Court for the Eastern District of Virginia, Newport News Division, confirmed in May the Second Amended Plan of Liquidation filed by Stanley J. Samorajczyk, the Chapter 11 trustee for Carter's Grove, LLC, following the court's March approval of the disclosure statement explaining the Plan. The Plan provides that Carter's Grove -- a historic 400 acre property located in Grove, James City County, Virginia, improved by a plantation house, stables and underground museum -- and Martin's Beach -- a parcel of unimproved land located adjacent to Carter's Grove -- and the Debtor's other tangible assets will be sold free and clear of liens and encumbrances and that the proceeds of the sale will be disbursed to creditors with allowed claims. On June 20, Judge St. John approved the sale of the Debtor's assets to The Colonial Williamsburg Foundation, which offered a credit bid of $7,400,000 representing the entire value of the claim it possesses against the Debtor's estate. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/CARTERSGROVEds0312.pdf About Carter's Grove San Francisco, California-based Carter's Grove, LLC, owns the historic Williamsburg, Virginia-area mansion named Carter's Grove. Halsey M. Minor owns the Company and bought the Carter's Grove mansion for $15.3 million in 2007, at the height of the real estate bubble. Carter's Grove filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-30554) on Feb. 14, 2011. Debra I. Grassgreen, Esq., and John W. Lucas, Esq., at Pachulski, Stang, Ziehl, and Jones LLP, San Francisco, Calif.; Robert S. Westermann, Esq., and Sheila deLa Cruz, Esq., at Hirschler Fleischer, P.C., in Richmond, Va., serve as the Debtor's bankruptcy counsel. Conway MacKenzie, Inc., serves as financial restructuring advisors to assist it during the Chapter 11 case, and perform other consulting services necessary to the Debtor's continuing operations. In its schedules, the Debtor disclosed $21.2 million in assets and $12.5 million in liabilities. On Aug. 1, 2011, the U.S. Bankruptcy Court for the Northern District of California approved the transfer of the Chapter 11 case of Carter's Grove, LLC to the Bankruptcy Court for the Eastern District of Virginia, Newport News Division. On April 4, 2012, the U.S. Trustee appointed Stanley J. Samorajczyk as Chapter 11 trustee of the Debtor's estate. The trustee tapped McNamee Hosea Jernigan Kim Greenan & Lynch, P.A., and Willcox & Savage, P.C., as his co-counsels. CHIQUITA BRANDS: Seeks to Reassure Investors on Fyffes Deal ----------------------------------------------------------- Chad Bray, writing for The New York Times' DealBook, reported that Chiquita Brands International and Fyffes tried to reassure investors about their planned merger, saying that they now expected the combined company to achieve an additional $20 million in annual cost savings by 2016. According to the report, the announcement comes about two weeks after Chiquita, based in Charlotte, N.C., rejected an unsolicited rival bid from the Cutrale Group and the Safra Group, both of Brazil. The Brazilian bidders, which offered to pay $13 a share or $611 million for Chiquita, have urged shareholders at a special investor meeting set for Sept. 17 to reject Chiquita's plans to take over Fyffes of Ireland, the DealBook said. * * * The March 17, 2014 edition of The Troubled Company Reporter reported that Standard & Poor's Ratings Services revised its rating outlook on Chiquita Brands International Inc. to positive from stable. At the same time, S&P affirmed the 'B' corporate credit rating, 'B' senior secured debt rating, and 'CCC+' unsecured debt rating on the company. The TCR, on Jan. 30, 2014, reported that Moody's Investors Service changed the rating outlook for Chiquita Brands International Inc. to stable from negative while affirming all ratings of the company, including its B2 Corporate Family Rating (CFR) and B2-PD Probability of Default Rating (PDR). Moody's also affirmed the company's SGL-3 liquidity rating. The change in the outlook to stable reflects Moody's expectation for continued improvement in Chiquita's credit metrics, which have recently benefitted from margin improvement largely as a result of cost saving initiatives. The Aug. 14, 2014, edition of the TCR reported that Moody's Investors Service views the proposed non-binding all cash bid from Cutrale Group and Safra Group to acquire Chiquita Brands International, Inc. favorably but it does not impact Chiquita's B2 CFR or developing outlook. CHRISTIAN FAMILY WORSHIP: Case Summary & 6 Unsecured Creditors -------------------------------------------------------------- Debtor: Christian Family Worship Center of South Florida, Inc. dba The Oasis Miami 27500 Old Dixie Highway Homestead, FL 33032 Case No.: 14-29129 Chapter 11 Petition Date: August 26, 2014 Court: United States Bankruptcy Court Southern District of Florida (Miami) Judge: Hon. Robert A Mark Debtor's Counsel: Joe M. Grant, Esq. MARSHALL SOCARRAS GRANT, P.L. 197 S. Federal Hwy #300 Boca Raton, FL 33432 Tel: (561) 3611000 Fax: 561.672.7581 Email: jgrant@msglaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Travis Spaulding, director/treasurer. A list of the Debtor's six largest unsecured creditors is available for free at http://bankrupt.com/misc/flsb14-29129.pdf CICERO INC: Incurs $683,000 Net Loss in Second Quarter ------------------------------------------------------ Cicero, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss applicable to common stockholders of $683,000 on $553,000 of total operating revenue for the three months ended June 30, 2014, as compared with a net loss applicable to common stockholders of $896,000 on $595,000 of total operating revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss applicable to common stockholders of $1.43 million on $1.09 million of total operating revenue, compared with a net loss applicable to common stockholders of $1.94 million on $1.09 million of total operating revenue for the same period last year. As of June 30, 2014, the Company had $3.15 million in total assets, $13.15 million in total liabilities and a $9.99 million total stockholders' deficit. Cash and cash equivalents increased to $50,000 at June 30, 2014 from $5,000 at Dec. 31, 2013, an increase of $45,000. A full-text copy of the Form 10-Q is available for free at: http://is.gd/42Bksi About Cicero Inc. Cary, N.C.-based Cicero, Inc., provides business integration software solutions and also provides technical support, training and consulting services as part of its commitment to providing customers with industry-leading solutions. The Company focuses on the customer experience management market with emphasis on desktop integration and business process automation with its Cicero XM(TM) products. Cicero XM enables the flow of data between different applications, regardless of the type and source of the application, eliminating redundant entry and costly mistakes. The Company has extended the maturity dates of several debt obligations that were due in 2011 to 2012, to assist with liquidity and may attempt to extend these maturities again if necessary. Despite the recent additions of several new clients, the Company continues to struggle to gain additional sources of liquidity on terms that are acceptable to the Company. Cicero reported a net loss applicable to common stockholders of $3.33 million on $2.19 million of total operating revenue for the year ended Dec. 31, 2013, as compared with a net loss applicable to common stockholders of $315,000 on $5.99 million of total operating revenue in 2012. Cherry Bekaert LLP, in Raleigh, North Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has a working capital deficiency as of Dec. 31, 2013. CIRCLE STAR: Expects $2 Million Net Loss in Fiscal 2014 ------------------------------------------------------- Circle Star Energy Corp. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the period ended April 30, 2014. The Company was unable to gather certain business information in a timely manner in order to file its Annual Report on Form 10-K for the fiscal year ended April 30, 2014, by the filing deadline. The Company said it will file its Annual Report within the 15 day extension period. The Company expects to report a loss of approximately $2,000,000 for the year ended April 30, 2014, as compared to the loss of $10,812,694 for the year ended April 30, 2013. About Circle Star Fort Worth, Tex.-based Circle Star Energy Corp. (OTC BB: CRCL) owns a variety of non-operated working interests and overriding royalty interests in approximately 73 producing wells in Texas. The interests range from less than 1% up to approximately 5% in each well. The wells are located in the following areas: Permian Basin, Eagle Ford Shale, Pearsall Field, Giddings Field & the Woodbine Field. The wells are operated by Apache (Permian), Chesapeake (Eagle Ford Shale), CML (Giddings, Pearsall & Permian), Leexus (Giddings) and Woodbine Acquisitions (Woodbine). As of April 30, 2013, the Company had approximately 430 net leased acres in Texas. The Company also operates 2 wells in Kansas. The Company owns a 25% working interest (approximately 20% net revenue interest) before payout and a 43.75% working interest (approximately 35% net revenue interest) after payout in both wells which are located in Trego County. As of July, 31, 2013, the Company had approximately 9,838 net leased acres in Kansas. Approximately 1,480 are located in Trego County and approximately 8,358 are located in Sheridan County. There are multiple potential pay zones of interest with the primary zones of interest being the Arbuckle, Marmaton & Lansing-Kansas City ranging from approximately 3,200 feet to approximately 4,300 feet in depth. The Company's balance sheet at July 31, 2013, showed $3.38 million in total assets, $5.77 million in total liabilities, and a $2.38 million total stockholders' deficit. COATES INTERNATIONAL: Board Approves Anti-Dilution Program ---------------------------------------------------------- The board of directors of Coates International, Ltd., consented to an anti-dilution program which provides that shares of Series B Convertible Preferred Stock be issued to Gregory G. Coates whenever new shares of common stock are issued to non-Coates family members in order to maintain his ownership percentage of common stock at 5.31% of the pro forma number of shares of common stock outstanding, assuming all shares of Series B Convertible Preferred Stock are converted to common stock. This was his percentage ownership of common stock at Dec. 31, 2002. The number of those shares issued on July 28, 2014, based on this program was 29,002. On July 28, 2014, the board of directors consented to an anti- dilution program which provides that shares of Series B Convertible Preferred Stock be issued to Barry C. Kaye whenever new shares of common stock are issued to non-Coates family members in order to maintain his ownership percentage of common stock at 0.04157% of the pro forma number of shares of common stock outstanding, assuming all shares of Series B Convertible Preferred Stock are converted to common stock. This was his weighted average percentage ownership of common stock he purchased, based on the number of shares of common stock outstanding on each date he acquired additional shares of common stock. The number of those shares issued on July 28, 2014, based on this program was 2,069. The issuance of these shares of Series B Convertible Preferred Stock to Gregory G. Coates and Barry C. Kaye triggered the issuance of an additional 115,006 shares of Series B Convertible Preferred Stock to George J. Coates, in accordance with the anti- dilution program in effect for George J. Coates. After this issuance to George J. Coates, he held a total of 371,670 shares of Series B Convertible Preferred Stock. Each share of Series B entitles the holder to 1,000 votes at any meeting where corporate matters are brought before the shareholders for a vote. The Series B is restricted, unregistered stock which is not convertible until the second annual anniversary after the date of issue, after which each share is freely convertible into 1,000 restricted, unregistered shares of common stock. In the event of a sale or change of control of the Corporation, the Series B will become immediately convertible. Under this new anti-dilution Plan, for each new share of common stock issued by the Corporation to non-Coates family members in the future, additional shares of Series B Convertible Preferred Stock will be issued to Gregory G. Coates and Barry C. Kaye equal to that number of shares of Series B required to maintain their ownership percentage of outstanding shares of common stock outstanding on a pro forma basis, at 5.31% and 0.04157, respectively. After the issuances of shares of Series B Convertible Preferred Stock issued on July 28, 2014, there were a total of 402,741 shares of Series B Convertible Preferred Stock outstanding. These anti-dilution provisions do not apply to new shares of common stock issued in connection with exercises of employee stock options, a public offering of the Corporation's securities or a merger or acquisition. In the event that all of the 402,741 shares of Series B Convertible Preferred Stock outstanding as of July 29, 2014, were converted, once the conversion restrictions lapse, an additional 402,741,000 new restricted shares of common stock would be issued. On a pro forma basis, based on the number of shares of common stock outstanding as of July 29, 2014, this would dilute the ownership percentage of non-affiliated stockholders from 30.0% to 15.1%. To the extent that additional shares of Series B are issued under the anti-dilution plan, the non-affiliated stockholders' percentage ownership of the Corporation would be further diluted. About Coates International Based in Wall Township, N.J., Coates International, Ltd. (OTC BB: COTE) -- http://www.coatesengine.com/-- was incorporated on August 31, 1988, for the purpose of researching, patenting and manufacturing technology associated with a spherical rotary valve system for internal combustion engines. This technology was developed over a period of 15 years by Mr. George J. Coates, who is the President and Chairman of the Board of the Company. The Coates Spherical Rotary Valve System (CSRV) represents a revolutionary departure from the conventional poppet valve. It changes the means of delivering the air and fuel mixture to the firing chamber of an internal combustion engine and of expelling the exhaust produced when the mixture ignites. Coates International reported a net loss of $2.75 million on $19,200 of total revenues for the year ended Dec. 31, 2013, as compared with a net loss of $4.53 million on $19,200 of total revenues for the year ended Dec. 31, 2012. As of March 31, 2014, the Company had $2.36 million in total assets, $5.48 million in total liabilities and a $3.11 million total stockholders' deficiency. Cowan, Gunteski & Co., P.A., in Tinton Falls, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company continues to have negative cash flows from operations, recurring losses from operations, and a stockholders' deficiency. COCRYSTAL PHARMA: Posts $4.7 Million Net Income in Second Quarter ----------------------------------------------------------------- Cocrystal Pharma, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $4.73 million for the three months ended June 30, 2014, as compared with a net loss of $1.03 million for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income of $4.35 million compared with a net loss of $2.08 million for the same period last year. The Company is focused on research and development of novel medicines for use in the treatment of human viral diseases. Accordingly, the Company had no revenue for the three months and six months ended June 30, 2014, and 2013. As of June 30, 2014, the Company had $12.96 million in total assets, $6.91 million in total liabilities and $6.05 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/uKfnht About Cocrystal Pharma Cocrystal Pharma, Inc.'s primary business going forward is to develop novel medicines for use in the treatment of human viral diseases. Cocrystal has been developing novel technologies and approaches to create first-in-class and best-in-class antiviral drug candidates since its initial funding in 2008. Subsequent funding was provided to Cocrystal Discovery, Inc., by Teva Pharmaceuticals Industries, Ltd., or Teva, in 2011. The Company's focus is to pursue the development and commercialization of broad- spectrum antiviral drug candidates that will transform the treatment and prophylaxis of viral diseases in humans. By concentrating its research and development efforts on viral replication inhibitors, the Company plans to leverage its infrastructure and expertise in these areas. On Jan. 2, 2014, Biozone Pharmaceuticals, Inc., merged with Cocrystal Discovery, Inc. The Company was previously incorporated in Nevada under the name Biozone Pharmaceuticals, Inc. On March 18, 2014, the Company reincorporated in Delaware under the name Cocrystal Pharma, Inc.. Biozone incurred a net loss of $7.96 million in 2012, as compared with a net loss of $5.45 million in 2011. Paritz and Company. P.A., in Hackensack, New Jersey, issued a "going concern" qualification on the consolidated financial statements of Biozone for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred operating losses for its last two fiscal years, has a working capital deficiency of $5,255,220, and an accumulated deficit of $14,128,079. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. CORD BLOOD: Incurs $845,000 Net Loss in Second Quarter ------------------------------------------------------ Cord Blood America, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $845,759 for the three months ended June 30, 2014, compared to a net loss attributable to the Company of $402,986 for the same period in 2013. Revenues for the quarter ended June 30, 2014, were $1.53 million compared to revenues of $1.48 million for the same period last year. For the six months ended June 30, 2014, Cord Blood reported a net loss attributable to the Company of $1.28 million on $2.95 million in revenue compared to a net loss attributable to the Company of $945,032 on $2.94 million of revenue for the same period during the previous year. As of June 30, 2014, the Company had $5.64 million in total assets, $7.24 million in total liabilities and a $1.59 million total deficit. Joseph Vicente, president of Cord Blood America, Inc., commented "One of the key drivers to our future success stems from our ability create new revenue streams while leveraging our existing infrastructure which creates expanded brand recognition, diversity in our revenue base and the ability to attract marketing relationships with key healthcare groups. We have seen this firsthand from our tissue product launch last year which has increased our average per-customer recurring storage revenue by over 50%. We expanded on this initiative further in the second quarter with the launch of another new service offering for the isolation and expansion of mesenchymal stem cells, one of the fastest growing areas of stem cell research and expect this product to further increase our average per- customer storage fee revenue going forward. In addition to these recently launched products, we are working to continually identify new complimentary service offerings to provide our customers with the best in class product suite." A full-text copy of the Form 10-Q is available for free at: http://is.gd/cX6DCm About Cord Blood America Based in Las Vegas, Nevada, Cord Blood America, Inc., is primarily a holding company whose subsidiaries include Cord Partners, Inc., CorCell Co. Inc., CorCell Ltd.; CBA Professional Services, Inc. D/B/A BodyCells, Inc.; CBA Properties, Inc.; and Career Channel Inc, D/B/A Rainmakers International. Cord specializes in providing private cord blood stem cell preservation services to families. BodyCells is a developmental stage company and intends to be in the business of collecting, processing and preserving peripheral blood and adipose tissue stem cells allowing individuals to privately preserve their stem cells for potential future use in stem cell therapy. Properties was formed to hold the corporate trademarks and other intellectual property of CBAI. Rain specializes in creating direct response television and radio advertising campaigns, including media placement and commercial production. Cord Blood reported a net loss of $2.97 million on $5.97 million of revenue for the year ended Dec. 31, 2013, as compared with a net loss of $3.49 million on $5.99 million of revenue in 2012. Rose, Snyder & Jacobs, LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has sustained recurring operating losses and has an accumulated deficit at Dec. 31, 2012. These conditions raise substantial doubt about the Company's ability to continue as a going concern. CRUMBS BAKE: Alan Chapell Named as Consumer Privacy Ombudsman ------------------------------------------------------------- Roberta A. Deangelis, U.S. Trustee for Region 3, appointed Alan Chapell, JD, CIPP Chapell & Associates 692 Greenwich Street, No. 5 New York, NY 10014 Tel: (917) 318-8440 Fax: (646) 304-7147 as the consumer privacy ombudsman in the Chapter 11 cases of Crumbs Bake Shop, Inc., et al. On Aug. 7, Bankruptcy Judge Michael B. Kaplan directed the U.S. Trustee to appoint a consumer privacy ombudsman. The Court also said that the compensation for the consumer privacy ombudsman will be capped at $12,000, and the ombudsman may seek to increase the cap for good cause upon application to the Court. Objections Filed 99 Crumbs Bake Shop, Inc., et al., objected to the motion of the U.S. Trustee to appoint a privacy ombudsman. They stated that the Court may authorize the proposed sale without appointing a privacy ombudsman because the sale and transfer of the "personally identifiable information" is consistent with the Debtors' privacy policy. About Crumbs Bake Shop Crumbs Bake Shop, Inc. (OTCBB: CRMB), a New York-based cupcake specialty store chain, and 22 of its affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. N.J. Lead Case No. 14-24287) on July 11, 2014. John D. Ireland signed the petitions as chief financial officer. Crumbs Bake Shop estimated assets of $10 million to $50 million and the same range of liabilities. Cole, Schotz, Meisel, Forman & Leonard, P.A., acts as the Debtors' counsel. Glass Ratner is serving as Crumbs' financial advisor. Prime Clerk LLC is the Debtors' claims and noticing agent. Judge Michael B. Kaplan oversees the jointly administered cases. * * * On July 7, 2014, the Board of Directors of Crumbs Bake Shop determined to cease operations effective immediately. The Board's determination was made after the Company lacked sufficient liquidity to maintain current operations. On the petition date, Crumbs entered into an Asset Purchase Agreement through which Lemonis Fischer Acquisition Company, LLC, a joint venture created by Marcus Lemonis LLC and Fischer Enterprises, L.L.C., will acquire the Crumbs' business as part of the Company's Chapter 11 filing. The Debtor will sell itself at a bankruptcy auction on Aug. 21. The lead bidder has a $6.5 million credit bid. A hearing to approve the sale is scheduled to take place on Aug. 26. The Company hopes to complete the sale process in approximately 60 days, pending receipt of the necessary approvals from the Bankruptcy Court. Lemonis Fischer Acquisition is represented by Louis Price, Esq., at McAfee & Taft PC. CRUMBS BAKE: Alvarez & Marsal OK'd as Panel's Financial Advisors ---------------------------------------------------------------- The Bankruptcy Court authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Crumbs Bake Shop, Inc., et al., to retain Alvarez & Marsal North America, LLC as its financial advisors effective as of July 23, 2014. Alvarez & Marsal is expected to, among other things: a) advise the Committee on matters related to its interests in the sale of the Debtor's assets; b) assist with a review of the Debtors' cost/benefit evaluations with respect to the assumption or rejection of executory contracts and unexpired leases; and c) assist with a review of the business model, operations, liquidity situation, properties, assets and liabilities, financial condition and prospects of the Debtor. A&M will be compensated subject to these procedures: a) A&M will apply to the Court for allowances of compensation and reimbursement of expenses for its financial advisory support services; b) A&M will be paid for the services of its professionals at their customary hourly billing rates, which will be subject to these ranges: i. Managing Directors $625 to $850 ii. Directors $475 to $625 iii. Associates $350 to $475 iv. Analysts $225 to $350 c) In addition, A&M will be reimbursed for reasonable out-of- pocket expenses; and d) on a monthly basis, A&M will provide a monthly fee application. About Crumbs Bake Shop Crumbs Bake Shop, Inc. (OTCBB: CRMB), a New York-based cupcake specialty store chain, and 22 of its affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. N.J. Lead Case No. 14-24287) on July 11, 2014. John D. Ireland signed the petitions as chief financial officer. Crumbs Bake Shop estimated assets of $10 million to $50 million and the same range of liabilities. Cole, Schotz, Meisel, Forman & Leonard, P.A., acts as the Debtors' counsel. Glass Ratner is serving as Crumbs' financial advisor. Prime Clerk LLC is the Debtors' claims and noticing agent. Judge Michael B. Kaplan oversees the jointly administered cases. * * * On July 7, 2014, the Board of Directors of Crumbs Bake Shop determined to cease operations effective immediately. The Board's determination was made after the Company lacked sufficient liquidity to maintain current operations. On the petition date, Crumbs entered into an Asset Purchase Agreement through which Lemonis Fischer Acquisition Company, LLC, a joint venture created by Marcus Lemonis LLC and Fischer Enterprises, L.L.C., will acquire the Crumbs' business as part of the Company's Chapter 11 filing. The Debtor will sell itself at a bankruptcy auction on Aug. 21. The lead bidder has a $6.5 million credit bid. A hearing to approve the sale is scheduled to take place on Aug. 26. The Company hopes to complete the sale process in approximately 60 days, pending receipt of the necessary approvals from the Bankruptcy Court. Lemonis Fischer Acquisition is represented by Louis Price, Esq., at McAfee & Taft PC. CRUMBS BAKE: Glassratner Advisory OK'd as Financial Advisor ----------------------------------------------------------- The Bankruptcy Court authorized Crumbs Bake Shop, Inc., et al., to employ GlassRatner Advisory & Capital Group, LLC as financial advisor and investment banker nunc pro tunc to July 11, 2014. GlassRatner is expected to, among other things: a) assist in evaluating the Debtors' current business plan in preparation of a revised operating plan and cash flow forecast and presentation of such plan to the Debtors' board of directors and their creditors; b) assist in identifying cost reduction and operations improvements opportunities; and c) assisting in developing and managing a 13-week cash flow forecast. The hourly rates of GlassRatner's personnel are: Professional Title Hourly Rate ------------ ----- ----------- Mr. Schaeffer Principal $550 Carl Landeck, CPA Senior Consultant $400 Robert Naidoff Director ? Inv. Banking $310 David Neyhart, CPA Associate $210 Other professionals $125 to $550 In the event that GlassRatner is able to induce a plan proponent or asset purchaser to close a transaction during the term of their engagement or within six months of the termination of their engagement, GlassRatner will be paid a success fee of $100,000. In the event that a plan proponent or asset purchaser is referred by the Debtors, GlassRatner will be paid $50,000. GlassRatner has agreed that its success fee will be subordinated to certain priority and administrative claims. In addition to the fee structure, the Debtors agree to reimburse GlassRatner for all reasonable fees, disbursements and out-of- pocket expenses incurred in connection with the performance of its engagement under the engagement letter. Peter N. Schaeffer, principal of GlassRatner, tells the Court that the Debtors paid the firm a retainer of $75,000. For the 12-month period prior to the Filing Date, GlassRatner has been paid a total of $546,074 in fees and $1,734 for reimbursable expenses. Mr. Schaeffer assures the Court that GlassRatner is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Crumbs Bake Shop Crumbs Bake Shop, Inc. (OTCBB: CRMB), a New York-based cupcake specialty store chain, and 22 of its affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. N.J. Lead Case No. 14-24287) on July 11, 2014. John D. Ireland signed the petitions as chief financial officer. Crumbs Bake Shop estimated assets of $10 million to $50 million and the same range of liabilities. Cole, Schotz, Meisel, Forman & Leonard, P.A., acts as the Debtors' counsel. Glass Ratner is serving as Crumbs' financial advisor. Prime Clerk LLC is the Debtors' claims and noticing agent. Judge Michael B. Kaplan oversees the jointly administered cases. * * * On July 7, 2014, the Board of Directors of Crumbs Bake Shop determined to cease operations effective immediately. The Board's determination was made after the Company lacked sufficient liquidity to maintain current operations. On the petition date, Crumbs entered into an Asset Purchase Agreement through which Lemonis Fischer Acquisition Company, LLC, a joint venture created by Marcus Lemonis LLC and Fischer Enterprises, L.L.C., will acquire the Crumbs' business as part of the Company's Chapter 11 filing. The Debtor will sell itself at a bankruptcy auction on Aug. 21. The lead bidder has a $6.5 million credit bid. A hearing to approve the sale is scheduled to take place on Aug. 26. The Company hopes to complete the sale process in approximately 60 days, pending receipt of the necessary approvals from the Bankruptcy Court. Lemonis Fischer Acquisition is represented by Louis Price, Esq., at McAfee & Taft PC. CRUMBS BAKE: Lowenstein Sandler Approved s Committee's Counsel -------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Crumbs Bake Shop, Inc., et al., ask the Bankruptcy Court for permission to retain Lowenstein Sandler LLP to serve as its counsel effective as of July 31, 2014. The hourly rates of Lowenstein Sandler's personnel are: Members $475 - $945 Counsel $385 - $685 Associates $260 - $495 Legal Assistants $155 - $260 To the best of the Committee's knowledge, Lowenstein Sandler is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Kenneth A. Rosen, Esq. Sharon L. Levine, Esq. LOWENSTEIN SANDLER LLP 65 Livingston Avenue Roseland, NJ 07068 Tel: (973) 597-2500 Fax: (973) 597-2400 About Crumbs Bake Shop Crumbs Bake Shop, Inc. (OTCBB: CRMB), a New York-based cupcake specialty store chain, and 22 of its affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. N.J. Lead Case No. 14-24287) on July 11, 2014. John D. Ireland signed the petitions as chief financial officer. Crumbs Bake Shop estimated assets of $10 million to $50 million and the same range of liabilities. Cole, Schotz, Meisel, Forman & Leonard, P.A., acts as the Debtors' counsel. Glass Ratner is serving as Crumbs' financial advisor. Prime Clerk LLC is the Debtors' claims and noticing agent. Judge Michael B. Kaplan oversees the jointly administered cases. * * * On July 7, 2014, the Board of Directors of Crumbs Bake Shop determined to cease operations effective immediately. The Board's determination was made after the Company lacked sufficient liquidity to maintain current operations. On the petition date, Crumbs entered into an Asset Purchase Agreement through which Lemonis Fischer Acquisition Company, LLC, a joint venture created by Marcus Lemonis LLC and Fischer Enterprises, L.L.C., will acquire the Crumbs' business as part of the Company's Chapter 11 filing. The Debtor will sell itself at a bankruptcy auction on Aug. 21. The lead bidder has a $6.5 million credit bid. A hearing to approve the sale is scheduled to take place on Aug. 26. The Company hopes to complete the sale process in approximately 60 days, pending receipt of the necessary approvals from the Bankruptcy Court. Lemonis Fischer Acquisition is represented by Louis Price, Esq., at McAfee & Taft PC. DELTATHREE INC: Reports $466K Q2 Net Loss, Warns of Bankruptcy -------------------------------------------------------------- deltathree, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $466,000 on $4.39 million in revenues for the three months ended June 30, 2014, compared to a net loss of $414,000 on $4.21 million in revenues for the same period last year. The Company also reported a net loss of $797,000 on $8.71 million in revenues for the six months ended June 30, 2014, compared to a net loss of $770,000 on $7.94 million in revenues for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $1.38 million in total assets, $9.04 million in total liabilities and a $7.66 million total stockholders' deficiency. "We believe that, unless we are able to increase revenues and generate additional cash, our current cash and cash equivalents will not satisfy our current projected cash requirements beyond the immediate future. As a result, there is substantial doubt about our ability to continue as a going concern," the Company stated in the Report. "In view of our current cash resources, nondiscretionary expenses, debt and near term debt service obligations, we have begun exploring strategic alternatives available to us and may explore all such alternatives available to us, including, but not limited to, a sale or merger of our company, a sale of our assets, recapitalization, partnership, debt or equity financing, voluntary deregistration of its securities, financial reorganization, liquidation and/or ceasing operations. In the event that we are unable to secure additional funding, we may determine that it is in our best interests to voluntarily seek relief under Chapter 11 of the U.S. Bankruptcy Code," the Company added. A full-text copy of the Form 10-Q is available for free at: http://is.gd/lZvqgc About deltathree Based in New York, deltathree, Inc. (OTC QB: DDDC) -- http://www.deltathree.com/-- is a global provider of video and voice over Internet Protocol (VoIP) telephony services, products, hosted solutions and infrastructures for service providers, resellers and direct consumers. deltathree reported a net loss of $1.81 million on $16.08 million of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $1.57 million on $13.68 million of revenues in 2012. Brightman Almagor Zohar & Co., in Tel Aviv, Israel, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's recurring losses from operations and deficiency in stockholders' equity raise substantial doubt about its ability to continue as a going concern. DETROIT, MI: Bonds Undergo Rating Actions After Tender Pd. Expires ------------------------------------------------------------------ Standard & Poor's Ratings Services has taken numerous rating actions on Detroit's outstanding sewage disposal and water supply revenue bonds, including the following: -- lowered the rating to 'CC' from 'CCC' on tendered bonds purchased by Detroit below par or accreted value and considered impaired for most of the duration of the tender invitation period that began on Aug. 7, 2014; -- removed the ratings from CreditWatch, where they were placed with negative implications on July 3, 2013. The outlook on these bonds is negative. -- raised the rating to 'BBB+' from 'CCC' on all other tendered and untendered bonds and removed the ratings from CreditWatch; the outlook on these bonds is stable. In addition, S&P assigned its 'BBB+' rating to Michigan Finance Authority's series 2014C and 2014D bonds (the "MFA 2014C and D bonds"), which are payable primarily from payments on Detroit Water and Sewerage Department (DWSD) obligations to be purchased with the proceeds of the MFA 2014C and D bonds. The DWSD obligations are secured by a statutory lien on pledged assets of each system separately (prioritized by the lien status), which include: -- Net revenues of the city's sewage disposal or water supply system, Investments credited to the sewer or water system, and -- Earnings on those investments. DWSD has also entered into a trust agreement related to all sewer and water revenue debt. The trustee is Wilmington Bank N.A. While S&P understands that the MFA 2014C and D bonds will be issued in various subseries as senior-lien and second-lien bonds, there is no difference in the ratings because S&P's analysis is based on its opinion of DWSD's creditworthiness with regard to covering all fixed costs, and DWSD has indicated it plans to fund capital expenditures with bonds secured by all of its existing liens. Proceeds of the DWSD obligations will be used to purchase tendered and redeemed bonds, and in the case of series 2014C-1 and C-2 bonds, to fund capital improvements for the sewage department. As the result of a tender invitation that started was effective on Aug. 7, 2014 and expired on Aug. 21, 2014, the city has agreed to purchase $1.468 billion of outstanding sewerage and water revenue bonds. "All ratings that are 'CC' are considered to involve a distressed exchange in which bondholders are receiving less than the original promise," said Standard & Poor's credit analyst Scott Garrigan. "At closing, we would expect to change the rating on the affected cusips to 'D' and then to 'NR'. Generally, we consider an exchange offer to be distressed if we believe that the bondholders receive less than originally promised, and if the bondholders are accepting the offer because of the risk that the issuer will not fulfill its obligations. Accordingly, we applied the 'CC' rating to those cusips that were considered both impaired prior to the tender invitation period and will be tendered at less than par." Ratings on bonds with all other outstanding cusips, whether senior or second lien, are 'BBB+', as noted. "The 'BBB+' rating reflects our opinion of the underlying creditworthiness of the sewer disposal and water supply systems," continued Mr. Garrigan. "Even though the rating on bonds secured by the pledged assets of each system could diverge, at this time we believe the creditworthiness of each system is the same, regardless of lien position. The rating is supported by S&P's view of the following characteristics: -- The legal framework includes a statutory lien on net revenues, provisions under the city's current Plan of Adjustment (POA) that consider all DWSD-related bond claims as unimpaired, and an order entered by the bankruptcy court that, among other things, both precludes the city from filing future POA amendments that would impair any DWSD- related bond claims and that overrules all objections to the order and documents related to the 2014 DWSD bonds. -- Significant economic stress within Detroit partly offsets a much more diverse revenue stream from a large number of wholesale customers. -- Historical financial performance has been generally adequate as measured by days' operating cash and investments and total fixed-cost coverage, but the amount of accounts payable and allowances for doubtful accounts is significant. -- There is upward pressure on rates, in S&P's view, due to the need to fund a large capital program and additional debt needs. Based on income indicators for the Detroit metropolitan area, S&P deems the rates affordable although, based on the significantly lower income indicators for the city of Detroit, S&P considers the rates high for customers located in Detroit. -- System leverage is high, and S&P do not believe that will abate given the large amount of debt needs to fund the current capital improvement program. S&P also notes that DWSD has been in the process of implementing many policies and procedures that S&P views as supportive of credit quality, especially as they relate to collecting delinquent bills, recovering a higher percentage of fixed costs, simplifying the wholesale contract and rate structures, and controlling operating expenses. DWSD's financial projections show generally better overall financial performance than has been attained over the past several fiscal years. Before raising the rating further, S&P would look for the systems to achieve and, in its view, to be able to maintain better financial performance over multiple fiscal years. The negative outlook on the bonds rated 'CC' reflects S&P's expectation that the rating will be lowered to 'D' once the tendered bonds are purchased. The stable outlook on the bonds rated 'BBB+' reflects S&P's expectation that the financial performance of both the sewer and water systems should be consistent with or better than projections. S&P bases this expectation on its belief that as DWSD management continues to implement various policy and procedural changes, financial performance will likely improve because of the specific efforts aimed at improving collections, stabilizing the operating revenue stream, and controlling costs. However, actual financial performance could be worse than projected, based on numerous events occurring. Economic pressures that limit collection rates and rate affordability could continue. Billed water volumes could decline due to a combination of weather or economic events. Additional environmental compliance mandates could lead to unforeseen capital and debt expenses. If one or more of these events occurred, and a direct negative impact on financial performance resulted, S&P could lower the ratings. At present, the various events listed are possible causes of financial stress for nearly all public utilities. But S&P is pointing them out in this case to indicate that future upward movement in the rating would most likely be predicated on S&P's belief that financial performance can be sustained in a fashion that insulates the utilities from the negative impacts these unforeseen events can have on credit quality. Most notably, sustained levels of unrestricted liquidity and coverage of all fixed costs that meet or exceed the current projections would be two performance metrics S&P would expect to have a significant positive impact on credit quality. For upward rating movement to occur, S&P expects these to be sustainable in future fiscal years, and to occur without significant additions of debt not currently identified in the CIP (of course, S&P do understand that beyond the current scope of the CIP, which ends in 2019, there could be additional, currently unforeseen debt issued). The rating on the bonds secured by net revenues of the sewage disposal and water supply systems could diverge if S&P determines that there is enough of a difference in the relevant credit factors. However, it is difficult to foresee at this time whether that would occur or what the precipitating factors leading to such a divergence would be. EDISON MISSION: Wants Chicago Bears' Suite License Claim Sacked --------------------------------------------------------------- Law360 reported that Edison Mission Energy urged an Illinois bankruptcy judge to deny Chicago Bears Football Club Inc.'s claim against EME's estate for fees tied to a license agreement for an executive stadium suite, saying EME itself doesn't owe the Bears anything and that CBFC failed to mitigate its damages. According to the report, the reorganization trust for EME filed an objection to a $114,240 claim lodged by CBFC. The claim relates to a license agreement between the Bears and EME affiliate Midwest Generation EME for an executive suite at Soldier Field, which Midwest Gen terminated after EME filed its bankruptcy petition, the report related. About Edison Mission Santa Ana, California-based Edison Mission Energy is a holding company whose subsidiaries and affiliates are engaged in the business of developing, acquiring, owning or leasing, operating and selling energy and capacity from independent power production facilities. EME also engages in hedging and energy trading activities in power markets through its subsidiary Edison Mission Marketing & Trading, Inc. EME was formed in 1986 and is an indirect subsidiary of Edison International. Edison International also owns Southern California Edison Company, one of the largest electric utilities in the United States. EME and its affiliates sought Chapter 11 protection (Bankr. N.D. Ill. Lead Case No. 12-49219) on Dec. 17, 2012. EME has reached an agreement with the holders of a majority of EME's $3.7 billion of outstanding public indebtedness and its parent company, Edison International EIX, that, pursuant to a plan of reorganization and pending court approval, would transition Edison International's equity interest to EME's creditors, retire existing public debt and enhance EME's access to liquidity. The Company's balance sheet at Sept. 30, 2012, showed $8.17 billion in total assets, $6.68 billion in total liabilities and $1.48 billion in total equity. In its schedules, Edison Mission Energy disclosed total assets of assets of $5,721,559,170 and total liabilities of $6,202,215,094 as of the Petition Date. The Debtors, other than Camino Energy Company, are also represented by James H.M. Sprayregen, P.C., Sarah Hiltz Seewer, Esq., and Seth A. Gastwirth, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois; and Joshua A. Sussberg, Esq., at Kirkland & Ellis LLP, in New York. Debtor Camino Energy Company is represented by David A. Agay, Esq., and Joshua Gadharf, Esq., at McDonald Hopkins LLC, in Chicago, Illinois. Perella Weinberg Partners is acting as the Debtors' financial advisor and McKinsey & Company Recovery and Transformation Services is acting as restructuring advisor. GCG, Inc., is the claims and notice agent. An official committee of unsecured creditors has been appointed in the case and is represented by Ira S. Dizengoff, Esq., Stephen M. Baldini, Esq., Arik Preis, Esq., and Robert J. Boller, Esq., at Akin Gump Strauss Hauer & Feld LLP in New York; James Savin, Esq., and Kevin M. Eide, Esq., at Akin Gump Strauss Hauer & Feld LLP in Washington, DC; and David M. Neff, Esq., and Brian Audette, Esq., at Perkins Coie LLP. The Committee also has tapped Blackstone Advisory Partners as investment banker and FTI Consulting as financial advisor. EME's Joint Plan of Reorganization was confirmed on March 11, 2014. The Plan provides for: (a) the sale to NRG Energy, Inc. and NRG Energy Holdings, Inc. of substantially all of EME's assets for approximately $2.635 billion, subject to certain adjustments provided in the Acquisition Agreement, and assumption of so-called PoJo Leases, as modified; (b) a settlement with Edison International -- EIX -- and certain EME noteholders pursuant to which EME will emerge from bankruptcy free of liabilities but will remain an indirect wholly-owned subsidiary of EIX; and (c) the transfer of substantially all remaining assets and liabilities of EME that are not otherwise discharged in the bankruptcy or transferred to NRG to the Reorganization Trust. Once consummated, the Plan will result in recoveries of over 80% for holders of unsecured claims against EME and payment in full in cash of claims against EME's subsidiaries. The Plan was declared effective on April 1, 2014. EDUCATION MANAGEMENT: Enters Into Debt Restructuring Agreement -------------------------------------------------------------- Education Management Corporation, a provider of post-secondary education in North America, disclosed that it has reached agreement in principle regarding a financial restructuring with holders of more than 80 percent of its secured and unsecured financial indebtedness. The company's board of directors has approved the restructuring. "We believe this plan, which will convert a significant portion of our debt into equity and result in a vastly improved capital structure with lower interest expense and extended maturities, is in the best interests of all stakeholders, most importantly our students," said Edward H. West, Education Management president and CEO. "This new capital structure is critical to the future success of EDMC and part of our plan to transform the company." The proposed restructuring will reduce the company's funded debt by approximately $1.1 billion, providing for the exchange of approximately $1.5 billion of outstanding debt as of June 30, 2014 for $400 million of new debt, preferred equity interests that would be convertible into common shares and warrants for the purchase of common shares. The company's existing shareholders would retain 4 percent of the outstanding common stock after giving effect to the conversion of the new preferred stock and receive warrants to purchase an additional 5 percent of the common stock. The comprehensive, multi-step restructuring remains subject to applicable regulatory approvals and a shareholder vote, which the company expects to complete in 2015. Pending consummation of the restructuring, the company will enter into an amendment to its senior credit facility to waive all financial covenants through June 30, 2015, substantially decrease cash interest expense and require no principal amortization payments through June 30, 2015, and extend the maturity of the revolving credit facility through July 2, 2015. The restructuring plan has the support of more than 80 percent of the company's revolving lenders, term loan lenders and bondholders. The company is seeking support for its restructuring plan from the remaining lenders and bondholders. However, no assurance can be given as to the level of additional support for the restructuring the company ultimately will be able to obtain. Additional details may be found in the company's filing on Form 8-K dated Aug. 27, 2014. About Education Management Corporation With approximately 119,500 students as of April 2014, Education Management Corporation -- http://www.edmc.edu-- is among the largest providers of post-secondary education in North America, based on student enrollment and revenue, with a total of 110 locations in 32 U.S. states and Canada. The company offers academic programs to students through campus-based and online instruction, or through a combination of both. The company is committed to offering quality academic programs and strives to improve the learning experience for its students. Its educational institutions offer students the opportunity to earn undergraduate and graduate degrees and certain specialized non-degree diplomas in a broad range of disciplines, including media arts, health sciences, design, psychology and behavioral sciences, culinary, business, fashion, legal, education and information technology. EDUCATION TRAINING: Sketches Out Bankruptcy Sale Strategy --------------------------------------------------------- Peg Brickley and Stephanie Gleason, writing for Daily Bankruptcy Review, reported that Nancy Mitchell, lawyer for Education Training Corp., told the U.S. Bankruptcy Court in Delaware that the company sold off 14 of its for-profit schools before filing for bankruptcy in an effort to preserve value in light of a federal ban on funding for bankrupt school operators. According to the report, further citing the lawyer, money from the pre- bankruptcy sale is being used to support a bankruptcy effort to sell some of the remaining schools in spite of laws that make such sales difficult. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that the post-secondary schools operator said in court papers that private-equity owners of one of the schools they manage, Anthem, will have no recovery on their $170 million investment. Unsecured creditors likewise realize nothing from the bankruptcy except to the extent their contracts might be transferred to IEC Corp., Mr. Rochelle related. Mr. Rochelle further related that the company said there will be no reorganization, as the Chapter 11 case will either be dismissed or converted to liquidation in Chapter 7 after the sale is completed. About FCC Inc. Education Training Corporation, aka Florida Career College, aka FCC Anthem College, aka Anthem College - Bryman School, aka Anthem College, and its affiliates sought protection under Chapter 11 of the Bankruptcy Code on Aug. 25, 2014. The lead case is In re FCC Holdings, Inc., Case No. 14-11987 (D. Del.). The case is assigned to Judge Christopher S. Sontchi. The Debtors are represented by Dennis A. Meloro, Esq., at Greenberg Traurig, LLP, in Wilmington, Delaware. The Debtors' noting, claims, and balloting agent is Kurtzman Carson Consultants. ELITE PHARMACEUTICALS: Offering 3MM Shares Under Incentive Plan --------------------------------------------------------------- Elite Pharmaceuticals, Inc., registered with the U.S. Securities and Exchange Commission 3,000,000 shares of common stock issuable under the Company's 2014 Equity Incentive Plan for a proposed maximum aggregate offering price of $1.08 million. A full-text copy of the Form S-8 registration statement is available for free at http://is.gd/gA70rh About Elite Pharmaceuticals Northvale, New Jersey-based Elite Pharmaceuticals, Inc., is a specialty pharmaceutical company principally engaged in the development and manufacture of oral, controlled-release products, using proprietary technology and the development and manufacture of generic pharmaceuticals. The Company has one product, Phentermine 37.5mg tablets, currently being sold commercially. Elite Pharmaceuticals disclosed a net loss attributable to common shareholders of $96.57 million on $4.60 million of total revenues for the year ended March 31, 2014, as compared with net income attributable to common shareholders of $1.48 million on $3.40 million of total revenues for the year ended March 31, 2013. The Company's balance sheet at March 31, 2014, showed $24.31 million in total assets, $105.51 million in total liabilities and a $81.19 million total stockholders' deficit. EMCOR GROUP: Moody Affirms Ba1 CFR & Rates $1.1BB Sr. Debt Ba1 -------------------------------------------------------------- Moody's Investors Service affirmed EMCOR Group, Inc.'s Ba1 Corporate Family Rating and Ba1-PD Probability of Default Rating, and also assigned a Ba1 rating to the company's existing $1.1 billion senior secured bank credit facility. The facility consists of a $750 million senior secured revolving credit facility and a $341 million (originally $350 million) senior secured term loan, both maturing in 2018. In a related action, Moody's assigned a SGL-1 Speculative Grade Liquidity Rating. The rating outlook remains stable. The following ratings were affected: Ba1 Corporate Family Rating affirmed; Ba1-PD Probability of Default Rating affirmed; Ba1 rating assigned to existing $1.1 billion senior secured bank credit facility due 2018; SGL-1 Speculative Grade Liquidity Rating assigned Ratings Rationale EMCOR's Ba1 Corporate Family Rating reflects the company's healthy liquidity, conservative capital structure (excluding Moody's standard accounting adjustments) and strong credit metrics. The rating is also supported by EMCOR's strong competitive market position and breadth of products and services, and to a lesser extent, its geographic diversification. However, after adjusting the company's balance sheet debt to account for its significant multi-employer pension plan exposure, certain key credit metrics that are otherwise strong weaken materially, and this will likely continue to constrain the ratings over the near term. In addition, the company relies heavily on its large surety bond line in order to bid on certain government and other large projects, as well as to provide liquidity for advance contract payments from customers. This line has only moderate revolver back-up to cover potential rough patches in surety availability, which could adversely affect the company's financial position and its ability to bid competitively for contracts. Finally, EMCOR's reliance on the currently weak non-residential construction market may pressure near-term earnings. Although a growing backlog and certain macroeconomic trends indicate slow but steady improvement in non- residential construction and industrial production, those trends have yet to translate into strong organic revenue growth for EMCOR's businesses. The SGL-1 Speculative Grade Liquidity Rating reflects the company's strong cash position and cash flow generation relative to its basic cash needs, as well as a sizeable, largely unused revolving credit facility. The $750 million senior secured revolver is currently undrawn, with the exception of about $92 million in outstanding letter of credit commitments, and and may be increased by up to $300 million if existing lenders choose to increase their commitments or if additional lenders are identified who are acceptable to the Agent and issuers of letters of credit. The company also has no significant debt maturities until its $1.1 billion bank facility matures in November 2018. EMCOR maintains sufficient headroom under its financial covenants, which include 3.0x maximum net debt to EBITDA and 3.5x minimum EBIT interest coverage, as well as a maximum capital and restricted expenditure covenant. The Ba1 rating assigned to the existing $1.1 billion senior secured bank credit facility is in line with the corporate family rating, as the revolver and term loan comprise close to 100% of the company's debt capital structure. The stable outlook reflects Moody's expectation that EMCOR is unlikely to be upgraded in the next 12 to 18 months given the currently sluggish recovery in the company's core end markets, primarily non-residential construction. The company's sizable off- balance sheet exposures also will limit its upgrade potential. At the same time, the stable outlook reflects Moody's belief that the company is currently well-positioned in its rating category. The rating or outlook could improve if EMCOR's end markets enter a stronger expansionary phase and the company is able to show sustainable year-over-year sales growth and margin improvement. An upgrade could be considered if EMCOR demonstrates the ability to maintain adjusted debt-to-EBITDA below 2.75x and adjusted EBITA to interest expense to above 5.0x, and also if the company strengthens its liquidity profile relative to its adjusted balance sheet obligations. The rating and/or outlook could deteriorate if the company's sales begin to decline significantly, if adjusted EBITA margin deteriorates to below 5.0%, or if the company's contract backlog declines materially. The ratings could also come under pressure if adjusted debt to EBITDA remains above 5.0x for a prolonged period of time. Negative rating actions may also be considered if cash flow generation turns negative or if EMCOR's access to the surety bond market becomes limited. The principal methodology used in this rating was Global Construction Methodology published in November 2010. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. EMCOR Group, Inc., headquartered in Norwalk, CT, is a global leader in electrical and mechanical construction, energy infrastructure, and facilities services. Revenues and net income for 12 months ended June 30, 2014 totaled approximately $6.5 billion and $154 million, respectively. ENNIS COMMERCIAL: Court Approves Colliers Tingey as Estate Broker ----------------------------------------------------------------- David Stapleton, the Plan Administrator of Ennis Commercial Properties, sought and obtained permission from the Hon. Frederick Clement of the U.S. Bankruptcy Court for the Eastern District of California to employ Colliers Tingey International, Inc. as real estate broker, for the following additional real properties: -- Henderson & Westwood (17 acres), Porterville, California; and -- NW Corner Westwood & Henderson (3.89 acres), Porterville, California. Colliers Tingey's compensation will be paid in the form of either 5% commission without cooperating broker or a 6% commission with a cooperating broker on the purchase price of each real property to be paid through escrow as the sale of each real property closes. To the best of the Plan Administrator's knowledge, the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Ennis Commercial Porterville, California-based Ennis Commercial Properties, LLC's business consisted of acquiring raw land and building commercial developments. The Company then either operated or sold the commercial buildings comprising the commercial development. ECP is owned by Ben Ennis, Brian Ennis and Pamela Ennis, in equal shares. On Sept. 20, 2010, Pam Ennis and Brian Ennis transferred all of their ownership interests in ECP to Ben Ennis. ECP filed for Chapter 11 bankruptcy protection (Bankr. E.D. Cal. Case No. 10-12709) on March 16, 2010. Peter L. Fear, Esq., and Gabriel J. Waddell, Esq., at the Law Offices of Peter L. Fear, in Fresno, Calif., represent ECP as counsel. No creditors committee has been formed in the case. In its schedules, the Debtor disclosed $40,878,319 in assets and $43,922,485 in liabilities. Ben Ennis filed a voluntary petition under Chapter 11 (Bankr. E.D. Calif. Case No. 10-62315) on Oct. 25, 2010. Pam and Brian filed separate Chapter 7 petitions. On May 25, 2011, Terence Long was appointed as Chapter 11 Trustee in the Benn Ennis bankruptcy. Consequently, the Chapter 11 Trustee stood in the shoes of Ben Ennis, and held all of the membership interests in ECP and controled it accordingly. Justin D. Harris, Esq., at Motschiedler, Michaelides, Wishon, Brewer & Ryan, LLP, in Fresno, represented the Chapter 11 Trustee as counsel. The plan of reorganization proposed by secured creditor Wells Fargo Bank for ECP was confirmed on June 27, 2013. David Stapleton has been named as plan administrator for each of the confirmed plans of Ben Enis and ECP. ENNIS COMMERCIAL: Southern Sierra Approved as Real Estate Broker ---------------------------------------------------------------- David Stapleton, the Plan Administrator of Ennis Commercial Properties, sought and obtained permission from the Hon. Frederick Clement of the U.S. Bankruptcy Court for the Eastern District of California to employ Southern Sierra Real Estate as broker for the real property commonly known as 1522 James Road, Camp Nelson, California. To the best of the Plan Administrator's knowledge, the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Ennis Commercial Porterville, California-based Ennis Commercial Properties, LLC's business consisted of acquiring raw land and building commercial developments. The Company then either operated or sold the commercial buildings comprising the commercial development. ECP is owned by Ben Ennis, Brian Ennis and Pamela Ennis, in equal shares. On Sept. 20, 2010, Pam Ennis and Brian Ennis transferred all of their ownership interests in ECP to Ben Ennis. ECP filed for Chapter 11 bankruptcy protection (Bankr. E.D. Cal. Case No. 10-12709) on March 16, 2010. Peter L. Fear, Esq., and Gabriel J. Waddell, Esq., at the Law Offices of Peter L. Fear, in Fresno, Calif., represent ECP as counsel. No creditors committee has been formed in the case. In its schedules, the Debtor disclosed $40,878,319 in assets and $43,922,485 in liabilities. Ben Ennis filed a voluntary petition under Chapter 11 (Bankr. E.D. Calif. Case No. 10-62315) on Oct. 25, 2010. Pam and Brian filed separate Chapter 7 petitions. On May 25, 2011, Terence Long was appointed as Chapter 11 Trustee in the Benn Ennis bankruptcy. Consequently, the Chapter 11 Trustee stood in the shoes of Ben Ennis, and held all of the membership interests in ECP and controled it accordingly. Justin D. Harris, Esq., at Motschiedler, Michaelides, Wishon, Brewer & Ryan, LLP, in Fresno, represented the Chapter 11 Trustee as counsel. The plan of reorganization proposed by secured creditor Wells Fargo Bank for ECP was confirmed on June 27, 2013. David Stapleton has been named as plan administrator for each of the confirmed plans of Ben Enis and ECP. ENTERCOM COMMUNICATIONS: S&P Hikes Sr. Secured Debt Rating to BB ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its recovery rating on Entercom Communication Corp.'s senior secured debt to '1', indicating S&P's expectation of very high (90%-100%) recovery in the event of a payment default, from '2'. S&P subsequently raised the issue-level rating on this debt to 'BB' from 'BB-', in accordance with its notching criteria. At the same time, S&P affirmed the 'B+' corporate credit rating on Entercom, along with the unsecured issue-level ratings. The rating outlook is stable. "The revision of our recovery rating reflects a lower amount of senior secured debt under our simulated default scenario, and the improved position of senior secured creditors," said Standard & Poor's credit analyst Jeanne Shoesmith. Entercom is the fourth-largest radio broadcaster in the U.S., with significant market coverage, including more than 100 stations in 23 markets. Standard & Poor's sees the potential for weak industry fundamentals to result in revenue erosion over the intermediate to long term. Entercom's good geographic diversity and competitive position in large and midsize markets, and its high EBITDA margin, do not offset these risks. S&P's assessment of Entercom's business risk profile as "fair" stems from these factors. In particular, it stems from the industry's exposure to competition from alternative media, risks to ad rate integrity, and obstacles to significant growth in digital contribution (approximately 6% of total revenues). Entercom's EBITDA margin, at 31.5% in 2013, is roughly in line with its peers'. S&P expects the company's margin will contract by about 100 basis points (bps) in 2014 as a result of higher operating expenses relating to digital investments and slightly higher core station expenses. S&P's assessment of Entercom's financial risk profile as "aggressive" reflects these factors, along with S&P's expectation that leverage will remain in the mid- to high-4x area in 2014. The company's debt-to-EBITDA ratio is high, at 4.8x as of June 30, 2014, at the high end of the 4x to 5x range that S&P associates with an "aggressive" financial risk profile. S&P's rating outlook on Entercom is stable. S&P expects the company to maintain adequate liquidity over the next 18 months, despite risks surrounding longer-term secular trends in radio, and despite S&P's expectation that the company's EBITDA margin of compliance with covenants could fall to about 15% in the second half of 2015. S&P views a downgrade as slightly more likely than an upgrade over the intermediate term. EVERGREEN ACQCO1: S&P Revises Outlook to Neg. & Affirms 'B' CCR --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Bellevue, Wash.-based thrift store operator Evergreen AcqCo1 LP (d/b/a Savers) to negative from stable. S&P also affirmed its 'B' corporate credit rating and 'B' issue-level ratings on the company's $75 million revolver and $702 million term loan. The recovery ratings on this debt are '3', indicating S&P's expectation for meaningful (50%-70%) recovery in the event of a payment default. "The outlook revision reflects our expectation that Savers will continue to experience margin pressure for at least the remainder of 2014 because of increased material and production labor costs associated with obtaining merchandise from charities and individuals," said credit analyst Diya Iyer. "While we believe the inclement weather in the first quarter created unique challenges related to truck rescheduling and lower store processing volumes, we do not believe the increase in on-site donations in the U.S. and Canada will offset potentially lower supply in the next year." The negative outlook reflects S&P's expectation that Savers will continue to experience cost and traffic pressures through the end of the year, with lagging customer counts particularly in the Apogee and Unique Chicago chains. S&P expects only 11 new stores in the U.S. compared to the 15 to 25 S&P was originally expecting, with continued modest growth in Canada as well. Downside Scenario S&P could lower the rating in the next year if management cannot navigate persistent pressure on the company's core middle-class consumer, leading to continued lower-than-expected charitable donations and subsequent merchandise supply shortages. This would lead to slower revenue growth and margin contraction such that leverage exceeds 7.0x. In that instance, sales would grow in the low-single-digit-percentage area or gross margin would decline more than 150 bps 2014. This would result in EBITDA declining in the coming year. S&P could also lower the ratings if the company's owners added significant additional debt in the coming year to fund a dividend or large acquisition or if operations began consuming cash. Upside Scenario Given Savers' credit measures, U.S. expansion plans, and recent operational challenges, S&P is not expecting to revise its outlook or raise its ratings over the remainder of the year. In either of these unlikely scenarios, Savers would need to deleverage more than 1.0x to the low 5.0x area, which would require more than 300 bps of gross margin expansion or sales growth in the mid-20% area. EXCITE MEDICAL: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Excite Medical Corp. 5412 Pioneer Park Blvd. Ste. A Tampa, Fl 33634 Case No.: 14-09906 Chapter 11 Petition Date: August 26, 2014 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Suzy Tate, Esq. SUZY TATE, P.A. 14502 North Dale Mabry Highway, Suite 200 Tampa, FL 33618 Tel: (813) 264-1685 Fax: (813) 264-1690 Email: suzy@suzytate.com Total Assets: $76,066 Total Liabilities: $1.52 million The petition was signed by Saleem Musallam, president. A list of the Debtor's six largest unsecured creditors is available for free at http://bankrupt.com/misc/flmb14-09906.pdf FALCON STEEL: Names James Taylor as Chief Restructuring Officer --------------------------------------------------------------- Falcon Steel Company and New Falcon Steel, LLC ask for permission from the Hon. D. Michael Lynn of the U.S. Bankruptcy Court for the Northern District of Texas to approve the agreement with James "Jim" T. Taylor to serve as the Debtors' chief restructuring officer and provide consulting services to the debtors, effective June 29, 2014 petition date. As CRO, Mr. Taylor will perform a number of duties for the Debtors, including coordinating the restructuring efforts of the Debtors and identifying, developing, and implementing strategies related to the Debtors' debt obligation, business operations, and other related matters. Pursuant to the engagement letter, Mr. Taylor will direct the Debtors' reorganization with an objective of completing a plan of reorganization, improving operations, working capital controls, and working directly with the Debtors' constituencies to facilitate assets divestitures as necessary. Pursuant to the engagement letter, the Company made an initial payment of $16,000 to Mr. Taylor upon its execution. In addition, the Company has agreed to pay Mr. Taylor $1,600 per day for his services. Mr. Taylor will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Taylor assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The Court for the Northern District of Texas will hold a hearing on the application on Aug. 28, 2014, at 1:30 p.m. Objections were due Aug. 22, 2014. Mr. Taylor can be reached at: Mr. James T. Taylor 1900 McKinney Ave., Suite 1502 Dallas, TX 75601 About Falcon Steel Company Falcon Steel Company and New Falcon Steel, LLC, sought Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division (Case Nos. 14-42585 and 14-42586) on June 29, 2014. Falcon Steel claims to be the only American-owned company that builds steel lattice towers for high electrical transmission lines. The Debtors are seeking joint administration of their Chapter 11 cases (Lead Case No. 14-42585). Falcon Steel was formed in 1963 and has operated continuously since that time as a manufacturer engaged in fabricating and galvanizing structural steel for customers in the United States. New Falcon, a subsidiary, suspended operations in June 2013 and is being held for sale. Falcon has three manufacturing plants in the DFW area in Texas, with one facility in Haltom City, another in Euless, and the third facility in Kaufman, Texas. The company's corporate headquarters is located at its Haltom City plant. It currently employs approximately 255 employees. Falcon Steel estimated assets and debt of $10 million to $50 million. The Debtors have tapped Forshey & Prostok, LLP, as counsel. The Court entered an order extending the Debtor's deadline to file its schedules of assets and liabilities and statement of financial affairs or new case deficiencies, excluding the matrix until Aug. 1. Bankruptcy Judge D. Michael Lynn, in an amended order, directed the joint administration of the case of Falcon Steel Company and New Falcon Steel, LLC FIRST DATA: Incurs $35 Million Net Loss in Second Quarter --------------------------------------------------------- First Data Corporation reported a net loss attributable to the Company of $34.5 million on $2.83 billion of revenues for the three months ended June 30, 2014, as compared with a net loss attributable to the Company of $189.1 million on $2.70 billion of revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss attributable to the Company of $235 million on $5.47 billion of revenues as compared with a net loss attributable to the Company of $526.5 million on $5.29 billion of revenues for the same period during the prior year. The Company's balance sheet at June 30, 2014, showed $37.23 billion in total assets, $35.74 billion in total liabilities, $70 million in redeemable noncontrolling interest and $1.41 billion in total equity. "The extraordinary work that our team has done to begin to transform First Data over the past year is showing strong results, though we are all clear-eyed about the hard work, and continued transformation, that lies ahead for our company," said Frank Bisignano, Chairman and CEO of First Data. "The company's year of transformation was validated, and our strategy for the future was endorsed, by the $3.5 billion in new equity we received from investors who share our vision for helping our clients -- thousands of financial institutions and millions of merchants around the world -- grow their business," Bisignano added. A full-text copy of the press release is available for free at: http://is.gd/bexiep About First Data Based in Atlanta, Georgia, First Data Corporation provides commerce and payment solutions for financial institutions, merchants, and other organizations worldwide. First Data reported a net loss attributable to the Company of $869.1 million in 2013, a net loss attributable to the Company of $700.9 million in 2012 and a net loss attributable to the Company of $516.1 million in 2011. * * * The Company carries a 'B3' corporate family rating, with a stable outlook, from Moody's Investors Service, a 'B' corporate credit rating, with stable outlook, from Standard & Poor's, and a 'B' long-term issuer default rating from Fitch Ratings. FIRST NAT'L COMMUNITY: Director Joseph Gentile Passed Away ---------------------------------------------------------- The Board of Directors of First National Community Bancorp, Inc., was notified on Aug. 22, 2014, that one of its directors, Joseph J. Gentile, had passed away, according to a regulatory filing with the U.S. Securities and Exchange Commission. Mr. Gentile served as a director of the Company since 1998 and as director of First National Community Bank, the Company's wholly-owned subsidiary, since 1989. About First National Headquartered in Dunmore, Pa., First National Community Bancorp, Inc., is a Pennsylvania corporation, incorporated in 1997 and is registered as a bank holding company under the Bank Holding Company Act ("BHCA") of 1956, as amended. The Company became an active bank holding company on July 1, 1998, when it acquired ownership of First National Community Bank (the "Bank"). The Bank is a wholly-owned subsidiary of the Company. The Company's primary activity consists of owning and operating the Bank, which provides customary retail and commercial banking services to individuals and businesses. The Bank provides practically all of the Company's earnings as a result of its banking services. First National reported net income of $6.38 million on $32.95 million of total interest income for the year ended Dec. 31, 2013, as compared with a net loss of $13.71 million on $37.02 million of total interest income for the year ended Dec. 31, 2012. As of June 30, 2014, the Company had $957.87 million in total assets, $908.66 million in total liabilities and $49.20 million in total shareholders' equity. Regulatory Matters The Bank is under a Consent Order from the Office of the Comptroller of the Currency dated Sept. 1, 2010. The Company is also subject to a Written Agreement with the Federal Reserve Bank of Philadelphia dated Nov. 24, 2010. The Bank, pursuant to a Stipulation and Consent to the Issuance of a Consent Order dated Sept. 1, 2010, without admitting or denying any wrongdoing, consented and agreed to the issuance of the Order by the OCC, the Bank's primary regulator. The Order requires the Bank to undertake certain actions within designated timeframes, and to operate in compliance with the provisions thereof during its term. The Order is based on the results of an examination of the Bank as of March 31, 2009. Since the examination, management has engaged in ongoing discussions with the OCC and has taken steps to improve the condition, policies and procedures of the Bank. Compliance with the Order is monitored by a committee of at least three directors, none of whom is an employee or controlling shareholder of the Bank or its affiliates or a family member of any such person. The Committee is required to submit written progress reports to the OCC on a monthly basis. The Committee has submitted each of the required monthly progress reports with the OCC. The members of the Committee are John P. Moses, Joseph Coccia, Joseph J. Gentile and Thomas J. Melone. FOUNDATION HEALTHCARE: Incurs $1.5-Mil. Net Loss in 2nd Quarter --------------------------------------------------------------- Foundation Healthcare, Inc., reported a net loss attributable to the Company's common stock of $1.50 million on $22.07 million of revenues for the three months ended June 30, 2014, compared with net income attributable to the Company's common stock of $638,762 on $21.64 million of revenues for the same period in 2013. Net loss attributable to the Company's common stock for the six months ended June 30, 2014, was $3.40 million, compared to net income attributable to the Company's common stock of $18,151 for the same period last year. As of June 30, 2014, the Company had $55.53 million in total assets, $65.61 million in total liabilities, $8.70 million in preferred noncontrolling interest and a $18.78 million total deficit. "We are pleased with our results as we recorded an 8% increase in revenue at our majority owned hospitals for the second quarter of 2014 as compared to second quarter 2013. In addition we successfully refinanced our debt at the end of the quarter reducing our average cost of funds from 6.5% to 4.25% and extending debt amortization to reduce costs by $2 million annually," stated Stanton Nelson, CEO of Foundation Healthcare, Inc. As of June 30, 2014, cash and cash equivalents totaled $1.9 million, compared to $4.0 million at March 31, 2014. A full-text copy of the Form 10-Q is available for free at: http://is.gd/2gC7mY About Foundation Healthcare Oklahoma-based Foundation Healthcare is a healthcare services company primarily focused on owning controlling interests in surgical hospitals and the inclusion of ancillary service lines. The Company currently owns controlling and noncontrolling interests in surgical hospitals located in Texas. The Company also owns noncontrolling interests in ambulatory surgery centers ("ASCs") located in Texas, Oklahoma, Pennsylvania, New Jersey, Maryland and Ohio. Additionally, the Company provides sleep testing management services to various rural hospitals in Iowa, Minnesota, Missouri, Nebraska and South Dakota under management contracts with the hospitals. The Company provides management services to a majority of its Affiliates under the terms of various management agreements. Prior to Dec. 2, 2013, the Company's name was Graymark Healthcare, Inc. Foundation Healthcare reported a net loss attributable to Foundation Healthcare common stock of $20.42 million on $93.14 million of revenues for the year ended Dec. 31, 2013, as compared with net income attributable to Foundation Healthcare common stock of $2.45 million on $52.97 million of revenues in 2012. Hein & Associates LLP, in Denver, Colorado, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company had insufficient working capital as of Dec. 31, 2013, to fund anticipated working capital needs over the next twelve months. These conditions raise substantial doubt about the Company's ability to continue as a going concern. FOUR OAKS: Kenneth Lehman Hikes Equity Stake to 50% --------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Kenneth R. Lehman disclosed that as of Aug. 15, 2014, he beneficially owned 16,000,000 shares of common stock of Four Oaks Fincorp, Inc., representing 49.9 percent of the shares outstanding. Mr. Lehman previously reported beneficial ownership of 875,000 common shares at March 27, 2014. Mr. Lehman had acquired 15,125,000 shares of Common Stock from the Company on Aug. 15, 2014, for $1.00 per share. A copy of the regulatory filing is available for free at: http://is.gd/6odbUr About Four Oaks Based in Four Oaks, North Carolina, Four Oaks Fincorp, Inc., is the bank holding company for Four Oaks Bank & Trust Company. The Company has no significant assets other than cash, the capital stock of the bank and its membership interest in Four Oaks Mortgage Services, L.L.C., as well as $1,241,000 in securities available for sale as of Dec. 31, 2011. Four Oaks reported a net loss of $350,000 in 2013, a net loss of $6.96 million in 2012 and a net loss of $9.09 million in 2011. As of June 30, 2014, the Company had $833.36 million in total assets, $806.06 million in total liabilities and $27.30 million in total shareholders' equity. Written Agreement "In late May 2011, the Company and the Bank entered into a formal written agreement (the "Written Agreement") with the Federal Reserve Bank of Richmond (the "FRB") and the North Carolina Office of the Commissioner of Banks (the "NCCOB"). Under the terms of the Written Agreement, the Bank developed and submitted for approval, within the time periods specified, plans to: * revise lending and credit administration policies and procedures at the Bank and provide relevant training; * enhance the Bank's real estate appraisal policies and procedures; * enhance the Bank's loan grading and independent loan review programs; * improve the Bank's position with respect to loans, relationships, or other assets in excess of $750,000, which are now or in the future become past due more than 90 days, are on the Bank's problem loan list, or adversely classified in any report of examination of the Bank; and * review and revise the Bank's policy regarding the Bank's allowance for loan and lease losses and maintain a program for the maintenance of an adequate allowance. A material failure to comply with the terms of the Written Agreement could subject the Company to additional regulatory actions and further restrictions on its business. These regulatory actions and resulting restrictions on the Company's business may have a material adverse effect on its future results of operations and financial condition," the Company said in its quarterly report for the period ended March 31, 2014. FUSION TELECOMMUNICATIONS: Delays Q2 Form 10-Q for Audit -------------------------------------------------------- Fusion Telecommunications International, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the period ended June 30, 2014. The Company told the Commission it requires additional time to file the subject report in order to complete auditor review. It is anticipated that net loss for the quarter and six months ended June 30, 2014, will be approximately $2.3 million and $0.9 million, respectively, as compared to net income for the quarter and six months ended June 30, 2013 of $1.7 million and $0.1 million, respectively. Net income for the quarter and six months ended June 30, 2013 includes a one-time gain on the extinguishment of accounts payable in the amount of $2.9 million. About Fusion Telecommunications New York City-based Fusion Telecommunications International, Inc. (OTC BB: FSNN) is a provider of Internet Protocol ("IP") based digital voice and data communications services to corporations and carriers worldwide. Fusion Telecommunications incurred a net loss applicable to common stockholders of $5.48 million in 2013, a net loss applicable to common stockholders of $5.61 million in 2012 and a net loss of $4.45 million in 2011. The Company's balance sheet at March 31, 2014, showed $69.69 million in total assets, $58.51 million in total liabilities and $11.18 million in total stockholders' equity. GARLOCK SEALING: Ford, Honeywell Seek Access to RICO Claims ----------------------------------------------------------- Law360 reported that Ford Motor Co., Honeywell International Inc. and numerous other companies asked a North Carolina federal judge to let them inspect sealed court records in Garlock Sealing Technologies LLC's asbestos-related bankruptcy case, which they say involve claims against lawyers who allegedly engaged in fraud in settling mesothelioma claims. According to the report, in their memorandum accompanying a motion asking U.S. District Judge Max O. Cogburn Jr. to unseal the records, the automotive and insurance companies, including Volkswagen Group, cite statements made by U.S. Bankruptcy Judge George Hodges while presiding over the Garlock case calling into question the truthfulness of mesothelioma claimants' representations to active defendants about their asbestos exposure. The case is Garlock Sealing Technologies LLC, et al., v. Belluck & Fox LLP. et al, case number 3:14-cv-00118, in the U.S. District Court for the Western District of North Carolina, Charlotte Division. About Garlock Sealing Headquartered in Palmyra, New York, Garlock Sealing Technologies LLC is a unit of EnPro Industries, Inc. (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, 2010, Garlock filed a voluntary Chapter 11 petition (Bankr. W.D.N.C. Case No. 10-31607) in Charlotte, North Carolina, to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor estimated $500 million to $1 billion in assets and up to $500 million in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in their Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for asbestos matters. The Official Committee of Asbestos Personal Injury Claimants in the Chapter 11 cases is represented by Travis W. Moon, Esq., at Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, NC, Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, and Trevor W. Swett III, Esq., Leslie M. Kelleher, Esq., and Jeanna Rickards Koski, Esq., in Washington, D.C. 20005. Joseph W. Grier, III, the Court-appointed legal representative for future asbestos claimants, has retained A. Cotten Wright, Esq., at Grier Furr & Crisp, PA, and Richard H. Wyron, Esq., and Jonathan P. Guy, Esq., at Orrick, Herrington & Sutcliffe LLP, as his co- counsel. Judge George Hodges of the United States Bankruptcy Court for the Western District of North Carolina on Jan. 10, 2014, entered an order estimating the liability for present and future mesothelioma claims against EnPro Industries' Garlock Sealing Technologies LLC subsidiary at $125 million, consistent with the positions GST put forth at trial. GLOBAL GEOPHYSICAL: Amended DIP Loan Agreement Filed ---------------------------------------------------- BankruptcyData, citing documents filed with the U.S. Securities and Exchange Commission, reported that Global Geophysical Services has entered into an amendment and waiver to its financing agreement with agent Wilmington Trust. According to BData, the S.E.C. filing states, "Among other things, the DIP Credit Facility Amendment amends provisions in the DIP Credit Facility relating to limitations on foreign cash balances and waives the requirement that the Company obtain deposit account control agreements with respect to certain of its deposit accounts. The amendment, BData, said, further explains, "No Loan Party shall (a) establish or maintain a Deposit Account or a Securities Account in the United States that is not subject to a Control Agreement following the date on which Control Agreements are required to be delivered hereunder, (b) permit the aggregate amount of Cash and Cash Equivalents of any Loan Party or any Subsidiary of any Loan Party maintained outside the United States to exceed $1,500,000 at any time (excluding (i) amounts maintained in Brazil, Colombia, Kurdistan or Canada....Except with respect to a plan of reorganization that proposes the immediate indefeasible payment in full in cash (other than cash provided by the Lenders) of the Obligations, no Loan Party shall, or shall permit any of its Subsidiaries to, file any plan of reorganization with the Bankruptcy Court without the prior written consent, as to both form and substance, of the Required Lenders." About Global Geophysical Based in Missouri City, Texas, Global Geophysical disclosed assets of $468.7 million and liabilities totaling $407.3 million as of Sept. 30, 2013. Liabilities include $81.8 million on a secured term loan owing to TPG Specialty Lending Inc. and Tennenbaum Capital Partners LLC. TPG is the lenders' agent. Global also owes $250 million on two issues of 10.5 percent senior unsecured notes, with Bank of New York Mellon Trust Co. as indenture trustee. Global Geophysical and five affiliates, including Autoseis, Inc. (lead debtor), filed Chapter 11 petitions in Corpus Christi, Texas (Bankr. S.D. Tex. Lead Case No. 14-20130) on March 25, 2014. The Debtors have tapped Baker Botts LLP as general bankruptcy counsel, Jordan Hyden Womble Culbreth & Holzer PC, as local counsel, Alvarez & Marsal as restructuring advisors, Fox Rothschild Inc. as financial advisor, and Prime Clerk as claims and noticing agent. Judy A. Robbins, the U.S. Trustee for Region 7, has selected seven creditors to the Official Committee of Unsecured Creditors. HYDROCARB ENERGY: CEO Quits; Kent Watts Assumes CEO Role -------------------------------------------------------- Pasquale V. Scaturro resigned as the chief executive officer of Hydrocarb Energy Corporation effective on Aug. 8, 2014. On the same date, Mr. Scaturro entered into a consulting agreement with the Company and agreed to provide the Company Geological and Geophysical consulting pertaining to the Company's oil and gas concession in Namibia. Effective immediately upon Mr. Scaturro's resignation, Kent P. Watts, the Company's executive chairman, assumed the duties of and title as chief executive officer of the Company. Sells 619,879 Shares Hydrocarb Energy sold 619,960 shares of unregistered and restricted shares of the Company's common stock to SMDRE, LLC, an unrelated entity, in consideration for a $1,859,879 non-interest bearing note. The 619,960 shares were previously issued by the Company to Hydrocarb Corporation to settle liabilities due from the Company to HCN related to a September 2012 Consulting Services Agreement with HCN, entered into in conjunction with the acquisition of Namibia Exploration, Inc. SMDRE, LLC, agreed to pay the note as follows: (1) 100% of the proceeds payable from the sale of all or part of the Shares to a third party will be payable to the Company; (2) within sixty days of the six month anniversary of the Dec. 4, 2013, stock sale (Aug. 3, 3014) or within sixty days from the date that the shares become unrestricted (whichever is first); and (3) 100% of any remaining balance due within 90 days of the Company being listed on a major stock exchange if the share price of the Company's common stock is above $6.00 per share. On Aug. 8, 2014, and effective Aug. 4, 2014, the Company and SMDRE, LLC, entered into an amendment to the note, whereby SMDRE, LLC agreed to pay the Company a $50,000 extension fee (bringing the total balance of the note to $1,909,879) and we agreed to modify the repayment terms of the note so that $750,000 would be due and payable by Dec. 31, 2014, and $1,159,879 would be due and payable by March 31, 2015, provided that notwithstanding the due dates above the note shall be paid in full within sixty days of the date the Company obtains a listing of its common stock on the NYSE MKT or NASDAQ trading market. About Hydrocarb Energy Hydrocarb Energy, formerly known as Duma Energy Corp, is a publicly-traded Domestic and International energy exploration and production company targeting major under-explored oil and gas projects in emerging, highly prospective regions of the world. With exploration concessions in Africa, production in Galveston Bay and Oil Field Services in the United Arab Emirates, the Company maintain offices in Houston, Texas, Abu Dhabi, UAE and Windhoek, Namibia. Duma Energy incurred a net loss of $40.47 million for the year ended July 31, 2013, a net loss of $4.57 million for the year ended July 31, 2012, and a net loss of $10.28 million for the year ended July 31, 2011. The Company's balance sheet at April 30, 2014, showed $26.73 million in total assets, $15.22 million in total liabilities and $11.50 million in total equity. INTELLICELL BIOSCIENCES: Delays Form 10-Q for Second Quarter ------------------------------------------------------------ Intellicell Biosciences, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the period ended June 30, 2014. The Company said it was not able to obtain all information prior to filing date and management could not complete the required financial statements and Management's Discussion and Analysis of those financial statements by Aug. 14, 2014. About Intellicell Biosciences Intellicell BioSciences, Inc., headquartered in New York, N.Y., was formed on Aug. 13, 2010, under the name "Regen Biosciences, Inc." as a pioneering regenerative medicine company to develop and commercialize regenerative medical technologies in large markets with unmet clinical needs. On Feb. 17, 2011, the company changed its name from "Regen Biosciences, Inc." to "IntelliCell BioSciences Inc". To date, IntelliCell has developed proprietary technologies that allow for the efficient and reproducible separation of stromal vascular fraction (branded "IntelliCell(TM)") containing adipose stem cells that can be performed in tissue processing centers and in doctors' offices. Intellicell Biosciences reported a net loss of $11.14 million on $0 of total net revenues for the year ended Dec. 31, 2013, as compared with a net loss of $4.15 million on $534,942 of total net revenues during the prior year. The Company's balance sheet at March 31, 2014, showed $4.09 million in total assets, $25.26 million in total liabilities and a $21.16 million total stockholders' deficit. Going Concern "The condensed consolidated financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses since inception resulting in an accumulated deficit of $61,421,672 and a working capital deficit of $23,780,066 as of March 31, 2014, respectively. Further losses are anticipated in the continued development of its business, raising substantial doubt about the Company's ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and a private placement of common stock or other debt or equity securities. There can be no assurance that we will be able to obtain further financing, do so on reasonable terms, or do so on terms that would not substantially dilute our current stockholders' equity interests in us. If we are unable to raise additional funds on a timely basis, or at all, we probably will not be able to continue as a going concern," the Company said in the quarterly report for the period ended March 31, 2014. INTERFAITH MEDICAL: Malpractice Claims Election Due Sept. 17 ------------------------------------------------------------ U.S. Bankruptcy Judge Carla E. Craig entered a second order in aid of consummation of the Second Amended Plan of Reorganization for Interfaith Medical Center, Inc. The order provides, among other things: 1. Notwithstanding anything in the Plan or confirmation order to the contrary: (a) the Covered Person Claims Injunction will protect all IMC doctors from the commencement or continuation of any action or proceeding or from enforcing or collecting any judgment or order respecting a Covered Person Claim related to a Prepetition Medical Malpractice Claim until Sept. 17, 2014; and (b) after Sept. 17, the Covered Person Claims Injunction will only protect an IMC doctor from such actions related to Prepetition Medical Malpractice Claims if such IMC doctor (i) was an IMC fellow or resident during the relevant time period; (ii) both: (A) has timely submitted the form to participate in the Covered Persons Fund; (B) has paid such doctor's initial amount(s) due to the Covered Persons Fund under the Plan; and (iii) for so long as such doctor continues to make the required contributions to the Covered Persons Fund in the amounts and at the times provided for under the Plan. 2. The costs of enforcing the Covered Person Claims Injunction, whether for providing notice or seeking judicial relief, will be paid from the Covered Persons Fund. 3. A holder of a Prepetition or Postpetition Medical Malpractice Claim may make an Election for its Claim until the later of: (a) Sept. 17; or (b) thirty days after the date of service to such holder of notice of the right to make the Election. About Interfaith Medical Center Headquartered in Brooklyn, New York, Interfaith Medical Center, Inc., operates a 287-bed hospital on Atlantic Avenue in Bedford- Stuyvesant and an ambulatory care network of eight clinics in central Brooklyn, in Crown Heights and Bedford-Stuyvesant. The Company filed for Chapter 11 protection (Bankr. E.D. N.Y. Case No. 12-48226) on Dec. 2, 2012. The Debtor disclosed $111,872,972 in assets and $193,540,998 in liabilities as of the Chapter 11 filing. Liabilities include $117.9 million owing to the New York State Dormitory Authority on bonds secured by the assets. Alan J. Lipkin, Esq., at Willkie Farr & Gallagher LLP, serves as bankruptcy counsel to the Debtor. Nixon Peabody LLP is the special corporate and healthcare counsel. CohnReznick LLP serves as financial advisor. Donlin, Recano & Company, Inc. serves as administrative agent. The Official Committee of Unsecured Creditors tapped Alston & Bird LLP as its counsel, and CBIZ Accounting, Tax & Advisory of New York, LLC as its financial advisor. Eric M. Huebscher, the patient care ombudsman, tapped the law firm of DiConza Traurig LLP, as his counsel. INTERFAITH MEDICAL: W. Caldwell Bid for Direct Plan Appeal Denied ----------------------------------------------------------------- A bankruptcy judge denied Walter Caldwell's for direct certification to the U.S. Court of Appeals for the Second Circuit of its appeal of the bankruptcy court order confirming the Chapter 11 Plan of Interfaith Medical Center, Inc. On June 24, the appellant, pro se, filed the relief. On July 9, Melanie Cyganowski, the temporary operator, filed an objection to the certification request; and the appellant did not object to confirmation of the Plan prior to or at the confirmation hearing. The Bankruptcy Court found that direct certification of the appeal to the Second Circuit will not materially advance the progress of the Debtor's case, in which the Plan has been confirmed and is currently being implemented; and it is further found, that there is no basis to certify the appeal to the Second Circuit. About Interfaith Medical Center Headquartered in Brooklyn, New York, Interfaith Medical Center, Inc., operates a 287-bed hospital on Atlantic Avenue in Bedford- Stuyvesant and an ambulatory care network of eight clinics in central Brooklyn, in Crown Heights and Bedford-Stuyvesant. The Company filed for Chapter 11 protection (Bankr. E.D. N.Y. Case No. 12-48226) on Dec. 2, 2012. The Debtor disclosed $111,872,972 in assets and $193,540,998 in liabilities as of the Chapter 11 filing. Liabilities include $117.9 million owing to the New York State Dormitory Authority on bonds secured by the assets. Alan J. Lipkin, Esq., at Willkie Farr & Gallagher LLP, serves as bankruptcy counsel to the Debtor. Nixon Peabody LLP is the special corporate and healthcare counsel. CohnReznick LLP serves as financial advisor. Donlin, Recano & Company, Inc. serves as administrative agent. The Official Committee of Unsecured Creditors tapped Alston & Bird LLP as its counsel, and CBIZ Accounting, Tax & Advisory of New York, LLC as its financial advisor. Eric M. Huebscher, the patient care ombudsman, tapped the law firm of DiConza Traurig LLP, as his counsel. INTERLEUKIN GENETICS: CFO to Quit on Sept. 5 -------------------------------------------- Eliot M. Lurier, the chief financial officer of Interleukin Genetics, Inc., informed the Company that he was resigning in order to pursue another professional opportunity at a major Boston-based academic institution with which he has had a long standing personal relationship, according to a regulatory filing with the U.S. Securities and Exchange Commission. Mr. Lurier's resignation will be effective as of the close of business on Sept. 5, 2014. About Interleukin Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized health company that develops unique genetic tests to provide information to better manage health and specific health risks. Interleukin Genetics incurred a net loss of $7.05 million on $2.42 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss of $5.12 million on $2.23 million of total revenue in 2012. Grant Thornton LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 3, 2013. The independent auditors noted that the Company has incurred recurring losses from operations and has an accumulated deficit that raise substantial doubt about the Company's ability to continue as a going concern. ISC8 INC: Delays Q3 Form 10-Q Over Financial Issues --------------------------------------------------- ISC8 Inc. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the period ended June 30, 2014.. "Due to ISC8 Inc.'s current financial condition, the Company is unable to file the quarterly report on Form 10-Q within the prescribed time period. Management is currently seeking short- term capital to address its short-term liquidity concerns, although we may not be able to secure adequate financing to allow for the filing of the Quarterly Report on Form 10-Q with in the extension period," the Company stated in the regulatory filing. About ISC8 Inc. Costa Mesa, California-based ISC8 Inc. is engaged in the design, development, manufacture and sale of a family of security products, consisting of cyber security solutions for commercial and U.S. government applications, secure memory products, some of which utilize technologies that the Company has pioneered for three-dimensional ("3-D") stacking of semiconductors, systems in a package ("Systems in a Package" or "SIP"), and anti-tamper systems. The Company reported a net loss of $28.02 million on $501,000 of revenues in fiscal year ended Sept. 30, 2013, compared with a net loss of $19.7 million in fiscal year ended Sept 30, 2012. Squar, Milner, Peterson, Miranda & Williamson, LLP, in their audit report on the consolidated financial statements for the year ended Sept. 30, 2013, expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has negative working capital of $29.7 million and a stockholders' deficit of $55.5 million. ISSAQUAH GLASS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Issaquah Glass Inc. 30200 SE 79th St., Ste. 130 Issaquah, WA 98027 Case No.: 14-16379 Nature of Business: Glass and Glazing Chapter 11 Petition Date: August 26, 2014 Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Hon. Timothy W. Dore Debtor's Counsel: Larry B. Feinstein, Esq. VORTMAN & FEINSTEIN 500 Union St Ste 500 Seattle, WA 98101 Tel: 206-223-9595 Email: feinstein2010@gmail.com Total Assets: $1.14 million Total Liabilities: $3.48 million The petition was signed by Timothy Bergsma, vice president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/wawb14-16379.pdf IZEA INC: Names LeAnn Hitchcock Chief Financial Officer ------------------------------------------------------- IZEA, Inc., appointed LeAnn Hitchcock as chief financial officer on Aug. 25, 2014, according a document filed with the U.S. Securities and Exchange Commission. Ms. Hitchcock began working with IZEA as a consultant in November 2011, where she was responsible for SEC compliance, filings and coordinating the audit process with IZEA's independent auditors. She was named IZEA's interim CFO in June 2013. "LeAnn's deep experience in the public sector and her history with IZEA will help us to continue our growth," stated Ted Murphy, Chairman and CEO of IZEA. "She has been instrumental to IZEA's success over the past four years, and she will play an integral role in our organization as we move forward." Prior to working with IZEA, Ms. Hitchcock worked as the chief financial officer of NBI Juiceworks in 2010 and in 2009 as the SEC Compliance Officer of Workstream Inc., a SaaS company that provides enterprise management solutions for employee tracking. From 2002 to 2009, Ms. Hitchcock worked at Galaxy Nutritional Foods as its chief financial officer and later its SEC Compliance Officer where she successfully repositioned the debt structure of the company, created and filed all SEC reports and worked to sell and privatize the company through a tender offer in 2009. In 1997, Ms. Hitchcock became the chief financial officer of FoodMaster International, an international dairy food company that operated dairy production facilities throughout the former Soviet Union. She oversaw the financial training, management, accounting and consolidation of over 12 entities until its successful sale to a French dairy company in 2004. Ms. Hitchcock started her career as an auditor with Arthur Andersen and PriceWaterhouse Coopers with a strong emphasis on public companies. Ms. Hitchcock holds a double major in Accounting and Business Administration from Palm Beach Atlantic University and a Masters in Accounting from Florida State University. Pursuant to the employment agreement between the Company and Ms. Hitchcock, she will receive an annual base salary of $185,000 and be eligible for bonus distributions as determined by the Board of Directors, based on meeting and exceeding mutually agreed upon annual performance goals. Additionally, Ms. Hitchcock received an option to purchase 400,000 shares of common stock at an exercise price based on market value on the grant date and expiring on Aug. 25, 2019. The option vests 25% immediately and the remainder in equal monthly instalments over three years, in accordance with the Company's incentive stock plan. About IZEA, Inc. IZEA, Inc., headquartered in Orlando, Fla., believes it is a world leader in social media sponsorships ("SMS"), a rapidly growing segment within social media where a company compensates a social media publisher to share sponsored content within their social network. The Company accomplishes this by operating multiple marketplaces that include its platforms SocialSpark, SponsoredTweets and WeReward, as well as its legacy platforms PayPerPost and InPostLinks. IZEA reported a net loss of $3.32 million on $6.62 million of revenue for the 12 months ended Dec. 31, 2013, as compared with a net loss of $4.67 million on $4.95 million of revenue during the prior year. As of June 30, 2014, the Company had $12.18 million in total assets, $13.27 million in total liabilities and a $1.09 million total stockholders' deficit. JAMES CHARLES VAUGHN: Taxes Not Dischargeable, 10th Circuit Says ---------------------------------------------------------------- James Charles Vaughn commenced an adversary proceeding seeking a declaration that his taxes assessed for the years 1999 and 2000 are dischargeable under his Chapter 11 bankruptcy petition. After a trial, the bankruptcy court determined the taxes were not dischargeable under 11 U.S.C. Sec. 523(a)(1)(C) because Vaughn had filed a fraudulent tax return and sought to evade those taxes. The bankruptcy court's decision was affirmed by the federal district court on appeal. Vaughn now appeals the district court's order affirming the bankruptcy court's decision. In an Aug. 26 ruling, available at http://is.gd/hQN3hdfrom Leagle.com, a three-judge panel of the United States Court of Appeals, Tenth Circuit held that none of Vaughn's arguments "persuade us the bankruptcy court's determination that Appellant willfully attempted to evade his tax obligations is clearly erroneous. Appellant fails to demonstrate why we should not defer to the bankruptcy court's factual finding that Appellant willfully attempted to evade his tax liability under [Sec.] 523(a)(1)(C)." "We affirm the district court's decision to affirm the order of the bankruptcy court," the Ninth Circuit said. The case is, JAMES CHARLES VAUGHN, Appellant, v. UNITED STATES OF AMERICA INTERNAL REVENUE SERVICE, Appellee, No. 13-1189 (10th Cir.). Counsel to Vaughn is: Joseph J. Mellon, Esq. THE MELLON LAW FIRM 1401 Wewatta St. #806 Denver, CO 80202 Tel: 303-825-1901 Cell: 303-915-0198 E-mail: jmellon@mellonlaw.com Rachel I. Wollitzer, Attorney, Tax Division (John F. Walsh, United States Attorney, Of Counsel; Kathryn Keneally, Assistant Attorney General; and Bruce R. Ellisen, Attorney, Tax Division, with her on the brief), Department of Justice, Washington, D.C., represent the U.S. government. James Charles Vaughn, based in Lone Tree, Colo., filed for Chapter 11 bankruptcy (Bankr. D. Col. Case No. 06-18082) on Nov. 3, 2006, in Denver. Judge Michael E. Romero presided over the case. Lee M. Kutner, Esq., at Kutner Miller, P.C., served as Chapter 11 counsel to Vaughn. In his petition, he estimated more than $100 million in assets, and $1 million to $100 million in liabilities, listing the Internal Revenue Service, owed $13.8 million, as his largest unsecured creditor. JAMES RIVER: Has Court Approval to Sell Assets to Blackhawk Unit ---------------------------------------------------------------- The U.S. Bankruptcy Court in Richmond, Virginia, has approved the sale of the assets of James River Coal Company, according to entries in the Chapter 11 case docket. Sara Randazzo and Jacqueline Palank, writing for Daily Bankruptcy Review, reported that James River will sell its coal-mining facilities to a unit of Kentucky's Blackhawk Mining LLC for $52 million. Dawn McCarty, writing for Bloomberg News, said the Blackhawk Mining unit will pay $20 million in cash and assume $32 million in liabilities. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that Kentucky River Properties LLC gets a $5 million second-lien note, while James River takes the $20 million and the $25 million third-lien note. The $20 million goes to pay down secured debt, other than amounts carved out to pay costs of the Chapter 11 effort, Mr. Rochelle said. About James River James River Coal Company is a producer and marketer of coal in the Central Appalachia ("CAPP") and the Midwest coal regions of the United States. James River's principal business is the mining, preparation and sale of metallurgical coal, thermal coal (which is also known as steam coal) and specialty coal. James River and 33 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Va. Case Nos. 14-31848 to 14-31886) in Richmond, Virginia, on April 7, 2014. The petitions were signed by Peter T. Socha as president and chief executive officer. Judge Kevin R. Huennekens oversees the Chapter 11 cases. On the petition date, James River Coal disclosed total assets of $1.06 billion and total liabilities of $818.6 million. The Debtors are represented by Tyler P. Brown, Esq., Henry P. (Toby) Long, III, Esq., and Justin F. Paget, Esq. at Hunton & Williams LLP of Richmond, VA and Marshall S. Huebner, Esq, Brian M. Resnick, Esq., and Michelle M. McGreal, Esq. at Davis Polk & Wardwell LLP of New York, NY. Kilpatrick Townsend & Stockton LLP serves as the Debtors' special counsel. Perella Weinberg Partners L.P. is the Debtors' financial advisor. Deutsche Bank Securities Inc. serves as the Debtors' investment banker and M&G advisor. Epiq Bankruptcy Solutions, LLC, acts as the debtors' notice, claims and administrative agent. The U.S. Trustee for Region 4 has appointed five creditors to the Official Committee of Unsecured Creditors. Michael S. Stamer, Esq., Alexis Freeman, Esq., and Jack M. Tracy II, Esq., at Akin Gump Strauss Hauer & Feld LLP; and Jonathan L. Gold, Esq., Christopher L. Perkins, Esq., and Christian K. Vogel, Esq., at LeClairRyan. KO-KAUA OHANA: U.S. Trustee Balks at GlassRatner's Employment ------------------------------------------------------------- The U.S. Trustee objected to Ohana Group, LLC's application to employ GlassRatner Advisory & Capital Group, LLC, as interest rate expert. According to the U.S. Trustee, the application contemplated that the employment is nunc pro tunc back to November 2013, prior to confirmation of the Plan. The Court entered an order confirming the Debtor's Second Amended Plan of Reorganization on Dec. 20, 2013. The U.S. Trustee noted that any employment must only be authorized after notice and a hearing, and only from the date of the application, unless the expert can satisfy the Ninth Circuit's "exceptional circumstances" test for nunc pro tunc approval. The Debtor, in its application, stated that it engaged J. Michael Issa of GlassRatner as its interest rate expert for the purpose of preparing a written expert report and testifying, as necessary, at the evidentiary hearing on the Debtor's First Amended Plan of Reorganization. The Debtor intended to seek approval of GlassRatner's engagement, however, due to the parties' settlement negotiations and agreement that occurred in the latter part of November 2013, and early weeks of December 2013, an application to engage GlassRatner was not filed. The Debtor asserted that the engagement of GlassRatner under a general retainer is necessary because of the services required for the estate. To the best of the Debtor's knowledge, GlassRatner is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The Debtor is represented by: Brian H. Krikorian, Esq. LAW OFFICES OF BRIAN H. KRIKORIAN 4100 194th Street SW, Suite 215 Lynnwood, WA 98036 Tel: (206) 547-1942 Fax: (425) 732-0115 E-mail: bhkrik@bhklaw.com About Ohana Group LLC Ohana Group LLC, in Seattle, Washington, filed for Chapter 11 bankruptcy (Bankr. W.D. Wash. Case No. 12-21904) on Nov. 30, 2012. Judge Marc Barreca oversees the case. James L. Day, Esq., at Bush Strout & Kornfeld LLP, serves as bankruptcy counsel. In its petition, the Debtor scheduled $16,000,000 in assets and $11,696,131 in liabilities. LAMSON & GOODNOW: 177-Yr Old Knife Maker Files Bankruptcy --------------------------------------------------------- Lamson & Goodnow Manufacturing Co., based in Shelburne Falls, Massachusetts, founded in 1837, is the nation's oldest cutlery manufacturer. On August 15, 2014, the 177-year old Company, together with two affiliates, filed for Chapter 11 bankruptcy protection from creditors in U.S. Bankruptcy Court for the District of Massachusetts in Springfield. The Recorder of Greenfield, Massachusetts, reports that Lamson & Goodnow has put its 18-acre factory complex up for sale. Debtor affiliates filing separate Chapter 11 bankruptcy petitions are: Debtor Case No. ------ -------- Lamson and Goodnow Manufacturing Company 14-30798 Lamson and Goodnow, LLC 14-30799 Lamson and Goodnow Retail, LLC 14-30801 Judge Henry J. Boroff presides over the case. Gary M. Weiner, Esq., at Weiner & Lange, P.C., serves as the Debtors' counsel. Lamson and Goodnow Manufacturing estimated $1 million to $10 million in both assets and liabilities. Lamson and Goodnow LLC estimated $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Lamson and Goodnow Retail listed under $50,000 in assets and under $10 million in liabilities. The petitions were signed by John Ross Anderson, president. A list of Lamson and Goodnow Manufacturing's 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/mab14-30798.pdf A list of Lamson and Goodnow, LLC's 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/mab14-30799.pdf A list of Lamson And Goodnow Retail's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/mab14-30801.pdf According to The Recorder, the company sought bankruptcy protection as a result of two multi-million-dollar loans it could not repay. The company owes $1 million on a U.S. Small Business Administration loan and more than $2 million to the small business corporation in New York. LARRY MCCLENDON: Defamation Claim Nondischargeable, 5th Cir. Says ----------------------------------------------------------------- A state court entered judgment upon a jury verdict awarding Bobby Springfield $341,000 in damages for defamation against Larry Gene McClendon. Mr. McClendon subsequently filed for Chapter 11 bankruptcy. Mr. Springfield filed a proceeding seeking to have the debt arising from the defamation judgment declared nondischargeable pursuant to 11 U.S.C. Sec. 526(a)(6). The bankruptcy court found the defamation to have been a willful and malicious injury and declared it nondischargeable, and the district court affirmed. Mr. McClendon appeals, arguing insufficiency of the evidence and that the bankruptcy court impermissibly shifted the burden of proof to him. "We affirm," said Circuit Judge Patrick E. Higginbotham, on behalf of the three-judge panel of the United States Court of Appeals, Fifth Circuit. A copy of the Fifth Circuit's Aug. 26 decision is available at http://is.gd/tmTPn0from Leagle.com. The case is, LARRY GENE MCCLENDON, Appellant, v. BOBBY J. SPRINGFIELD, Appellee, No. 13-41030 (5th Cir.). On Jan. 30, 2012, Mr. McClendon confirmed a Chapter 11 plan of reorganization. On May 22, 2012, an order was entered in Mr. McClendon's Chapter 11 case allowing Mr. Springfield's proof of claim in the unsecured amount of $341,000. LIFEPOINT HOSPITALS: S&P Alters Outlook to Stable, Affirms BB- CCR ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Brentwood, Tenn.-based LifePoint Hospitals Inc. to stable from negative. In addition, S&P affirmed its 'BB-' corporate credit rating on the company. At the same time, S&P affirmed its 'BB-' issue-level ratings on the company's first-lien debt and its unsecured notes. The '4' recovery ratings remain unchanged. The ratings on the first-lien and unsecured notes are the same because S&P views the credit facility and senior unsecured notes as pari-passu because of the weak security pledge on the first-lien debt. "The ratings on LifePoint incorporate Standard & Poor's Ratings Services' assessment that the hospital chain operates in rural communities and has to contend with a significant reimbursement risk, competition for its business including outmigration to larger communities, weak patient volume trends, and an extended period of an adverse payor mix shift notwithstanding a favorable shift in the second quarter of 2014," said credit analyst David Peknay. S&P's stable rating outlook on LifePoint reflects its view that the positive impact of the Affordable Care Act will enable the company to weather a renewal of weak patient volume trends and ongoing reimbursement pressure. S&P's outlook is also predicated on its expectation that the company will size its share repurchases to maintain leverage within a range that is consistent with a "significant" financial risk profile (for example, 3x to 4x). Upside Scenario An upgrade is unlikely in the foreseeable future. Notwithstanding the positive impact of the Affordable Care Act, considering industry pressures, S&P would not expect that the company would be able to maintain any meaningful operating improvements suggestive of a better business risk profile. Also, given S&P's view of the company's financial policy which favors share repurchases over debt repayment, S&P do not expect LifePoint's financial risk profile to deviate from "significant" to "intermediate". Downside Scenario A downgrade would be predicated on operating challenges that would prevent LifePoint from maintaining credit metrics consistent with a "significant" financial risk profile. This might include sustained organic revenue declines of even modest size, caused by a chronic reduction in admissions and adverse reimbursement changes that cause margins to contract at least 100 basis points. An increase in debt-financed acquisitions could also contribute to a lower rating. LIGAND PHARMACEUTICALS: Lemelson Balks at Shares Sale ----------------------------------------------------- Lemelson Capital Management, a private investment management firm, on Aug. 25 released additional research and comments on Ligand Pharmaceuticals amidst the company's unusual and complex debt arrangement under which the firm has assumed $245 million in debt principally so that large institutional shareholders can offload shares of the troubled company in private transactions at undisclosed prices. In what is likely the first in a series of large institutional share sales of Ligand, the company's largest shareholder, BVF, Inc., revealed to the U.S. Securities and Exchange Commission (SEC) this week that it has sold 484,524 shares of the company's stock. "Ligand Pharmaceuticals is an insolvent company facing severe competitive threats to its key royalty programs that has now absorbed an extraordinary amount of costly debt apparently to allow their largest shareholders to liquidate their holdings as 'going concern risk' at the company grows," Lemelson Capital Management Chief Investment Officer Emmanuel Lemelson said on Aug. 25. "This transaction reaffirms our prior research thesis that Ligand has justifiably lost favor with its largest investors and has dramatically increased the likelihood of the company eventually being forced to seek protection from creditors," he added. Lemelson Capital Management first announced its short position in Ligand Pharmaceuticals on June 16, 2014. The stock has undergone a significant 26 percent correction since. "We reiterate our position that the intrinsic value for Ligand is zero and see these large institutional sales as an indication that our concerns are increasingly broadly held," Lemelson said. Disclosure: Lemelson Capital is currently short shares of LGND for its clients. About Lemelson Capital Management Lemelson Capital Management, LLC -- http://www.lemelsoncapital.com -- is a private investment management firm focused on deep value and special situation investments. The firm's flagship fund, The Amvona Fund, has been named repeatedly one of the world's top performing hedge funds. About Ligand Pharmaceuticals La Jolla, California-based Ligand Pharmaceuticals Incorporated is engaged in the development and commercialization of drugs in partnership with other pharmaceutical companies, including GlaxoSmithKline, Pfizer and Merck. Ligand has developed drug formulation technologies to target a broad spectrum of diseases, including hepatitis, Alzheimer's disease and diabetes. LIQUIDMETAL TECHNOLOGIES: Inks $30MM Purchase Pact With Aspire -------------------------------------------------------------- Liquidmetal Technologies, Inc., entered into a common stock purchase agreement with Aspire Capital Fund LLC which provides that Aspire Capital is committed to purchase up to an aggregate of $30 million of shares of the Company's common stock over the approximately 36 month term of the Purchase Agreement. Concurrently with entering into the Purchase Agreement, the Company also entered into a registration rights agreement with Aspire Capital, in which the Company agreed to file one or more registration statements, as permissible and necessary to register under the Securities Act of 1933, as amended, the sale of the shares of the Company's common stock that have been and may be issued to Aspire Capital under the Purchase Agreement. A full-text copy of the Common Stock Purchase Agreement is available for free at http://is.gd/OnwnI9 About Liquidmetal Technologies Based in Rancho Santa Margarita, Cal., Liquidmetal Technologies, Inc., and its subsidiaries are in the business of developing, manufacturing, and marketing products made from amorphous alloys. Liquidmetal Technologies markets and sells Liquidmetal(R) alloy industrial coatings and also manufactures, markets and sells products and components from bulk Liquidmetal alloys that can be incorporated into the finished goods of its customers across a variety of industries. The Company also partners with third- party licensees and distributors to develop and commercialize Liquidmetal alloy products. Liquidmetal reported a net loss and comprehensive loss of $14.24 million on $1.02 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss and comprehensive loss of $14.02 million on $650,000 of total revenue for the year ended Dec. 31, 2012. The Company's balance sheet at June 30, 2014, showed $16.01 million in total assets, $8.45 million in total liabilities, and stockholders' equity of $7.56 million. SingerLewak LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has an accumulated deficit. This raises substantial doubt about the Company's ability to continue as a going concern. LONG BEACH MEDICAL: Loeb & Troper Approved as Komanoff Auditors --------------------------------------------------------------- The Bankruptcy Court authorized Long Beach Medical Center, et al., to employ Loeb & Troper as auditors for Long Beach Memorial Nursing Home doing business as The Komanoff Center for Geriatric and Rehabilitative Medicine. L&T is expected to (i) audit Komanoff's balance sheet as of Dec. 31, 2013, including the related statements of operations, change in net assets and cash flows for the year then ended; and (ii) prepare required 990 and CHAR 500 filing for Komanoff. L&T also acted as the Debtors' auditors for several years prior to the petition date, thus has significant institutional knowledge of the Debtors and their financial affairs and is the best position to complete the necessary audits and their financial affairs. L&T will be paid $50,000 as compensation for rendering the services. L&T has not received any retainer in relation with the retention by Komaoff. To the best of the Debtors' knowledge, L&T is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The Debtor is represented by: Burton S. Weston, Esq. Afsheen A. Shah, Esq. GARFUNKEL WILD, P.C. 111 Great Neck Road Great Neck, NY 11021 Tel: (516) 393-2588 Fax: (516) 466-5964 About Long Beach Medical Center Long Beach Medical Center, formerly Long Beach Memorial Hospital, was a 162-bed, community-based hospital offering primary, acute, emergency and long-term health care to residents of Long Beach, New York. Founded in 1922, LBMC was a teaching facility for the New York College of Osteopathic Medicine. LBMC was shut down after superstorm Sandy devastated the hospital in October 2012. Long Beach Memorial Nursing Home Inc, runs the The Komanoff Center for Geriatric and Rehabilitative Medicine, a 200-bed skilled nursing facility affiliated with LBMC. It provides services for residents requiring long term nursing home care and short term post-acute (sub-acute) care. Currently there are 127 residents of Komanoff. Long Beach Medical Center and Long Beach Memorial Nursing Home d/b/a The Komanoff Center for Geriatric and Rehabilitative Medicine, sought Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case Nos. 14-70593 and 14-70597) on Feb. 19, 2014. Long Beach Medical Center scheduled $17,400,606 in total assets and $84,512,298 in total liabilities. Garfunkel Wild P.C. serves as the Debtors' counsel. GCG, Inc., is the Debtors' claims and noticing agent. The Hon. Alan S. Trust presides over the cases. The U.S. Trustee has appointed three members to the official committee of unsecured creditors. The panel retained Klestadt & Winters, LLP, led by Sean C. Southard, Esq., as counsel. LONG BEACH MEDICAL: VCI to Serve as Medical Operations Advisor -------------------------------------------------------------- Laura W. Patt, the patient care ombudsman appointed in the Chapter 11 case of Long Beach Memorial Nursing Home, Inc., doing business as The Komanoff Center for Geriatric and Rehabilitative Medicine, asks the Bankruptcy Court for permission to employ Vernon Consulting, Inc., as her medical operations advisor nunc pro tunc to March 17, 2014. VCI will, among other things: a) conduct interviews of patients and facility staff; b) review license and governmental permits; c) review adequacy of staffing, supplies and equipment; and d) review safety standards. VCI has agreed to reduce its rates by 15%. The ombudsman has been advised by VCI that the current hourly rates, which will be charged in respect of the primary members of the VCI engagement team for the ombudsman, are: Position Customary Rate Discounted Rate -------- -------------- --------------- Patient Care Ombudsman $425 $361 Medical Operations: Managing Director $400 $340 Director $375 $318 Sr. Managing Consultant $325 $276 Analyst $150 $127 From time to time, other VCI professionals may be involved in the cases as needed. Hourly discounted rates for the professionals range as: $127 to $340. Reasonable travel time will be charged at one-half of the applicable hourly rate unless actual work is performed during such travel time, in which case the full hourly rate will be charged. To the best of the ombudsman's knowledge, VCI is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Long Beach Medical Center Long Beach Medical Center, formerly Long Beach Memorial Hospital, was a 162-bed, community-based hospital offering primary, acute, emergency and long-term health care to residents of Long Beach, New York. Founded in 1922, LBMC was a teaching facility for the New York College of Osteopathic Medicine. LBMC was shut down after superstorm Sandy devastated the hospital in October 2012. Long Beach Memorial Nursing Home Inc, runs the The Komanoff Center for Geriatric and Rehabilitative Medicine, a 200-bed skilled nursing facility affiliated with LBMC. It provides services for residents requiring long term nursing home care and short term post-acute (sub-acute) care. Currently there are 127 residents of Komanoff. Long Beach Medical Center and Long Beach Memorial Nursing Home d/b/a The Komanoff Center for Geriatric and Rehabilitative Medicine, sought Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case Nos. 14-70593 and 14-70597) on Feb. 19, 2014. Long Beach Medical Center scheduled $17,400,606 in total assets and $84,512,298 in total liabilities. Garfunkel Wild P.C. serves as the Debtors' counsel. GCG, Inc., is the Debtors' claims and noticing agent. The Hon. Alan S. Trust presides over the cases. The U.S. Trustee has appointed three members to the official committee of unsecured creditors. The panel retained Klestadt & Winters, LLP, led by Sean C. Southard, Esq., as counsel. LYONDELL CHEMICAL: 5th Cir. Reverses Judgment in Union Dispute -------------------------------------------------------------- After filing for bankruptcy, Houston Refining, L.P., suspended matching contributions to its employees' 401(k) plans. The company later agreed to enter into arbitration regarding the suspension with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, acting on behalf of itself and its local unions. After the arbitrator found that the suspension violated the parties' collective bargaining agreement, Houston Refining brought an action in the district court to vacate the arbitral award, and the Union counterclaimed to enforce the award. Both parties moved for summary judgment. The district court denied the company's motion, granted the Union's motion in part, and remanded to the arbitrator for clarification of the remedy. Houston Refining timely appealed. "We reverse the judgment of the district court and remand for further proceedings," said Circuit Judge Emilio M. Garza, on behalf of a three-judge panel of the United States Court of Appeals, Fifth Circuit. A copy of the Fifth Circuit's August 25, 2014 decision is available at http://is.gd/VaRupffrom Leagle.com. Houston Refining filed for bankruptcy along with other subsidiaries and affiliates of Lyondell Chemical Company. The case is, HOUSTON REFINING, L.P., Plaintiff-Appellant, v. UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL UNION; UNITED STEEL WORKERS LOCAL UNION NO. 13-227, Defendants-Appellees, No. 13-20384 (5th Cir.). About Lyondell Chemical LyondellBasell Industries is one of the world's largest polymers, petrochemicals and fuels companies. Luxembourg-based Basell AF and Lyondell Chemical Company merged operations in 2007 to form LyondellBasell Industries, the world's third largest independent chemical company. LyondellBasell became saddled with debt as part of the US$12.7 billion merger. Len Blavatnik's Access Industries owned the Company prior to its bankruptcy filing. On Jan. 6, 2009, LyondellBasell Industries' U.S. operations, led by Lyondell Chemical Co., and one of its European holding companies -- Basell Germany Holdings GmbH -- filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code to facilitate a restructuring of the company's debts. The case is In re Lyondell Chemical Company, et al., Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell entities filed for Chapter 11. Luxembourg-based LyondellBasell Industries AF S.C.A. and another affiliate were voluntarily added to Lyondell Chemical's reorganization filing under Chapter 11 protection on April 24, 2009. Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, served as the Debtors' bankruptcy counsel. Evercore Partners served as financial advisors, and Alix Partners and its subsidiary AP Services LLC, served as restructuring advisors. AlixPartners' Kevin M. McShea acted as the Debtors' Chief Restructuring Officer. Clifford Chance LLP served as restructuring advisors to the European entities. LyondellBasell emerged from Chapter 11 bankruptcy protection in May 2010, with a plan that provides the Company with US$3 billion of opening liquidity. A new parent company, LyondellBasell Industries N.V., incorporated in the Netherlands, is the successor of the former parent company, LyondellBasell Industries AF S.C.A., a Luxembourg company that is no longer part of LyondellBasell. LyondellBasell Industries N.V. owns and operates substantially the same businesses as the previous parent company, including subsidiaries that were not involved in the bankruptcy cases. LyondellBasell's corporate seat is Rotterdam, Netherlands, with administrative offices in Houston and Rotterdam. MASSIF MOUNTAIN: Bankr. Court Okays Sale of Assets to Samtech ------------------------------------------------------------- On August 22, 2014, in Case No. 14-11659, the U.S. Bankruptcy Court for the District of Delaware approved the sale of substantially all of the assets of Massif Mountain Gear Company L.L.C., debtor and debtor in possession, to Samtech, LLC. Greenberg Glusker client Samtech was the successful bidder for $10.2 million at a Section 363 auction sale held on August 20, 2014. "This acquisition will be seamless to our customers. The Antex team has been a huge part of our business since its start so we're looking forward to growing the business together." Samtech is affiliated with Matchmaster Dyeing & Finishing, Inc. dba Antex Knitting Mills, based in Los Angeles, California. Massif is a supplier of a flame resistant army combat shirt. The acquisition enhances Massif's supply chain through vertical integration, product innovation and rapid prototyping capabilities, while providing Antex/Matchmaster with an expanded infrastructure to meet the global needs of the civilian & military flame resistant clothing industry. The Massif brand will be maintained. "The Massif team is thrilled to solidify our long-standing relationship with our most important supplier," said Noelle Christensen, vice president and general manager of Massif. "This acquisition will be seamless to our customers. The Antex team has been a huge part of our business since its start so we're looking forward to growing the business together." "The Antex/Matchmaster team has worked closely with Massif for many years on development and production of flame resistant fabrics and garments," said Bill Tenenblatt of Samtech. "We are very excited about this acquisition. It is a natural outgrowth of our long-standing partnership and we look forward to our next phase as one team." Greenberg Glusker attorneys Brian Davidoff and Jeffrey Krieger served as legal counsel for Samtech. Mr. Davidoff noted that Samtech overbid the stalking horse bidder which was an affiliate of Sun Capital. The process was completed in record time in light of the fact that the debtor and stalking horse purchaser had set an accelerated schedule from the time of noticing the sale to court approval. We assisted in guiding Samtech through the maze of requirements in becoming a qualified bidder and then negotiating and documenting the sale transition. Attorney Patrick Reilly from Cole Schotz, Meisel, Forman & Leanard P.A. was co-counsel for the buyer in the transaction. Attorneys Morton Branzburg, Domenic Pacitti, Michael Yurkewicz and Michael Rittinger of the Law firm of Klehr Harrison Harvey Branzburg, LLP represented the Debtor in the transaction and Carlin Adrianopoli of Houlihan Lokey was the investment banker in the transaction. About Greenberg Glusker For nearly 55 years, Greenberg Glusker -- http://www.GreenbergGlusker.com-- is a full-service law firm in Los Angeles. Greenberg Glusker maximizes client potential by providing strategic business and legal counsel in matters involving bankruptcy, corporate, employment, entertainment, environmental, intellectual property, litigation, real estate, taxation and trusts and estates. METADIGM INC: PE Firm Can't Shake WARN Claims From Cuts at Unit --------------------------------------------------------------- Law360 reported that a Delaware federal judge refused to dismiss a lawsuit against private equity firm Navigation Capital Partners Inc. over layoffs at a bankrupt unit in 2013, ruling the former employees had adequately alleged the firm had de facto control over its affiliate and could thus be liable. According to the report, in a 15-page opinion, U.S. District Judge Leonard P. Stark wrote that while the allegations employees suing under the U.S. Worker Adjustment and Retraining Notification Act lodged regarding NCP's connection to Metadigm Services Inc. by personnel and dependency of policy were "wholly conclusory," the laid-off workers had sufficiently pled that the two entities can be treated as a single employer in the case. The case is Hampton v. Navigation Capital Partners Inc., case number 1:13-cv-00747, in the U.S. District Court for the District of Delaware. MERCATOR MINERALS: To File NOI Under Canadian Bankruptcy Act ------------------------------------------------------------ Mercator Minerals Ltd. on Aug. 26 disclosed that it has filed a Notice of Intention to make a proposal ("NOI") under the Canadian Bankruptcy and Insolvency Act ("BIA"). As per Mercator's announcement on Aug. 7, 2014, the Company, with the support of its financial advisor, has been actively considering its alternatives including, but not limited to the sale of the Company. Several interested parties have delivered proposals that the Mercator Board of Directors believe would be in the best interest of all stakeholders. The proposals have been shared with the Mineral Park lenders ("MPI Lenders"). Unfortunately, the MPI Lenders did not constructively engage with the Company or our financial advisor. A NOI is the first stage of a restructuring process under the BIA, which permits the Company to pursue a restructuring of its financial affairs, through a formal Proposal. The NOI provides an opportunity for the Company to avoid Bankruptcy and may allow creditors to receive some form of compensation for amounts owing to them by the Company. Once the NOI has been filed the Company will be granted up to an initial 30 days of protection from its creditors to enable the Company to pursue the option of a Proposal. Pursuant to the NOI, Deloitte Restructuring Inc. has been appointed as the trustee in the Company's proposal proceedings and in that capacity will monitor and assist the Company in its restructuring efforts. In addition, each of Mercator's direct and indirect wholly owned subsidiaries Mercator Mineral Park Holdings Ltd., Lodestrike Resources Ltd., Mineral Park Inc. ("MPI") and Bluefish Energy Corporation have also filed a Chapter 11 bankruptcy petition in the US. MPI will engage an investment bank for a stand-alone sale of MPI. The Board of Directors of Mercator believe the stand-alone sale of MPI would result in a recovery of less than 100% to the MPI Lenders and that the liabilities of the Company pursuant to the parent guarantee in addition to its other liabilities have created a situation where Mercator is unable to meet its current and future obligations. Accordingly, the Board of Directors of Mercator is forced to file the NOI. There can be no guarantee that the Company will be successful in its restructuring efforts. Failure by the Company to achieve its financing and restructuring goals will likely result in the Company becoming bankrupt. About Mercator Minerals Ltd. Mercator Minerals Ltd., a TSX listed base metals mining company, operates the wholly-owned copper/molybdenum/silver Mineral Park Mine in Arizona, USA. Mercator also wholly-owns two development projects in Sonora, Mexico: the copper heap leach El Pilar project and the molybdenum/copper El Creston project. MF GLOBAL: Trustee Files Motion to Make Creditor Distributions -------------------------------------------------------------- James W. Giddens, Trustee for the liquidation of MF Global Inc. (MFGI), has filed a motion with the U.S. Bankruptcy Court for the Southern District of New York, Honorable Judge Martin Glenn presiding, seeking approval to make 100 percent distributions on allowed secured, administrative and priority general creditor claims and a first interim distribution of 20 percent on unsecured general creditor claims. The Trustee is proposing to distribute $295 million to holders of secured, administrative, priority and unsecured general claims, with the majority being distributed to holders of unsecured claims. The Trustee is also seeking to establish a reserve of $462 million on account of unresolved claims that are before the court and do not have a final determination. The Trustee expects interim distributions to allowed unsecured claims to be followed by additional distributions at a future date as required reserves are reduced. With this filing, the Trustee is fully protecting the MFGI estate and respecting the due process rights of all. "From the beginning, we have worked aggressively and diligently to pay customers 100 percent and marshal assets for distributions to the general estate, which were two goals that many thought would not be possible," Mr. Giddens said. "Both goals have now been achieved, and I am satisfied that we are positioned to make these distributions." The Trustee will continue to diligently attempt to work through unresolved claims and other disputes in an attempt to reduce the reserves required to be held to meet the obligations of all parties. This significant progress in the administration of the general estate follows the Trustee's announcement in April 2014 that MFGI's former public customers with allowed claims would receive a final, 100 percent distribution. Distributions to customers are now virtually complete, with a total of $6.7 billion returned to over 26,000 securities and commodities futures customers. The information in this statement does not apply to any other MF Global entity, including separate insolvency proceedings involving the parent company, MF Global Holdings Ltd. MF GLOBAL: Execs Press Case for D&O Policy Proceeds --------------------------------------------------- Law360 reported that former officers and directors of MF Global Holdings USA Inc., including ex-CEO Jon Corzine, doubled down on their bid for additional access to their liability insurance policies, telling a New York bankruptcy court that doing so will ultimately benefit the estate by reducing potential indemnification claims. According to the report, the former executives shot back at MF Global's objections to their original motion, filed in late July, saying the company already conceded that the proceeds of the policies do not belong to the estate and that it's relying on a misinterpretation of the company's liquidation plan. In fact, the motion argues, there's ample evidence to suggest that using the proceeds of those policies to advance defense costs will actually help the estate, the report related. About MF Global New York-based MF Global -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058), after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. On Nov. 7, 2011, the United States Trustee appointed the statutory creditors' committee in the Debtors' cases. At the behest of the Statutory Creditor's Committee, the Court directed the U.S. Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy Court entered an order approving the appointment of Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC, as Chapter 11 trustee. On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On Dec. 27, the Court entered an order installing Mr. Freeh as Chapter 11 Trustee of the New Debtors. On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr. Freeh also was installed as its Chapter 11 Trustee. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. The Official Committee of Unsecured Creditors has retained Capstone Advisory Group LLC as financial advisor, while lawyers at Proskauer Rose LLP serve as counsel. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. In April 2013, the Bankruptcy Court approved MF Global Holdings' plan to liquidate its assets. Bloomberg News reported that the court-approved disclosure statement initially told creditors with $1.134 billion in unsecured claims against the parent holding company why they could expect a recovery of 13.4% to 39.1% from the plan. As a consequence of a settlement with JPMorgan, supplemental materials informed unsecured creditors their recovery was reduced to the range of 11.4% to 34.4%. Bank lenders will have the same recovery on their $1.174 billion claim against the holding company. As a consequence of the settlement, the predicted recovery became 18% to 41.5% for holders of $1.19 billion in unsecured claims against the finance subsidiary, one of the companies under the umbrella of the holding company trustee. Previously, the predicted recovery was 14.7% to 34% on bank lenders' claims against the finance subsidiary. MOBIVITY HOLDINGS: Incurs $1.4 Million Net Loss in Second Quarter ----------------------------------------------------------------- Mobivity Holdings Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.43 million on $1.11 million of revenues for the three months ended June 30, 2014, compared to a net loss of $9.87 million on $1.08 million of revenues for the same period in 2013. Net loss for the six months ended June 30, 2014, was $3.19 million compared to a net loss of $12.29 million for the same period last year. Revenues for the six months ended June 30, 2014, were $2,013,106, a decrease of $100,497, or 5%, compared to the same period in 2013. As of June 30, 2014, the Company had $12.54 million in total assets, $3.52 million in total liabilities and $9.02 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/TNqKjQ About Mobivity Holdings Mobivity Holdings Corp. was incorporated as Ares Ventures Corporation in Nevada in 2008. On Nov. 2, 2010, the Company acquired CommerceTel, Inc., which was wholly-owned by CommerceTel Canada Corporation, in a reverse merger. Pursuant to the Merger, all of the issued and outstanding shares of CommerceTel, Inc., common stock were converted, at an exchange ratio of 0.7268-for-1, into an aggregate of 10,000,000 shares of the Company's common stock, and CommerceTel, Inc., became a wholly owned subsidiary of the Company. In connection with the Merger, the Company changed its corporate name to CommerceTel Corporation on Oct. 5, 2010. In connection with the Company's acquisition of assets from Mobivity, LLC, the Company changed its corporate name to Mobivity Holdings Corp. and its operating company to Mobivity, Inc, on Aug. 23, 2012. Mobivity Holdings reported a net loss of $16.75 million in 2013, a net loss of $7.33 million in 2012 and a net loss of $16.31 million in 2011. MOMENTIVE PERFORMANCE: Make-Whole Ruling Rattles Bond Market ------------------------------------------------------------ Matthieu Wirz, writing for Daily Bankruptcy Review, reported that U.S. Bankruptcy Judge Robert Drain's Aug. 26 ruling in the case of Momentive Performance Materials Inc. has shaken up the distressed investing world. According to the DBR report, citing TRACE, the little known silicone maker's bonds were the most actively traded corporate debt in U.S. markets with more than $400 million face value changing hands. Paper losses on the bonds have exceeded $60 million this week, the DBR report said. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that, on Aug. 26, Judge Drain refused to sign an order confirming Momentive Performance's plan of reorganization until the company raises the interest rates on two replacement liens by 0.5 percent and 0.75 percent, to compensate the lenders for risk. Judge Drain, according to Mr. Rochelle, said lenders to the producer of silicones for the semiconductor industry aren't entitled to a so-called make-whole premium, which would have been approximately $200 million, for early repayment of the debt. Several issues, among them whether first-lien lenders were entitled to the so-called make-whole premium, were the subject of the contested confirmation hearing, which lasted four days and involved numerous documents. Before the confirmation hearing, two groups of Momentive Performance Inc. bondholders told Judge Drain that they decided to drop opposition to the Chapter 11 plan, Mr. Rochelle said. Nick Brown, writing for Reuters, said one of the key objection to the Plan comes from junior bondholders led by U.S. Bank NA, who would recover nothing under the plan. Owed some $382 million, U.S. Bank says it cannot be treated worse than the bondholders participating in the rights offering, Reuters related. Meanwhile, BankruptcyData reported that Momentive Performance has sought and obtained extension from U.S. Bankruptcy Court in Del. of the exclusive period during which it can file a Chapter 11 plan and solicit acceptances thereof through and including Oct. 10, 2014 and Dec. 9, 2014, respectively. About Momentive Performance Momentive Performance is one of the world's largest producers of silicones and silicone derivatives, and is a global leader in the development and manufacture of products derived from quartz and specialty ceramics. Momentive has a 70-year history, with its origins as the Advanced Materials business of General Electric Company. In 2006, investment funds affiliated with Apollo Global Management, LLC, acquired the company from GE. As of Dec. 31, 2013, the Company had 4,500 employees worldwide, of which 46% of the Company's employees are members of a labor union or are represented by workers' councils that have collective bargaining agreements. Momentive Performance Materials Inc., Momentive Performance Materials Holdings Inc., and their affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 14-22503) on April 14, 2014, with a deal with noteholders on a balance-sheet restructuring. As of Dec. 31, 2013, the Debtors had $4.114 billion of consolidated outstanding indebtedness, including payments due within the next 12 months and short-term borrowings. The Debtors said that the restructuring will eliminate $3 billion in debt. The Debtors have tapped Willkie Farr & Gallagher LLP as bankruptcy counsel with regard to the filing and prosecution of these chapter 11 cases; Sidley Austin LLP as special litigation counsel; Moelis & Company LLC as financial advisor and investment banker; AlixPartners, LLP as restructuring advisor; PricewaterhouseCoopers as auditor; and Crowe Horwath LLP as benefit plan auditor. Kurtzman Carson Consultants LLC is the notice and claims agent. The U.S. Trustee for Region 2 appointed seven members to serve on the Official Committee of Unsecured Creditors of the Debtors' cases. Klee, Tuchin, Bogdanoff & Stern LLP serves as its counsel. FTI Consulting, Inc., serves as its financial advisor. Rust Consulting Omni Bankruptcy serves as its information agent. Wilmington Trust, National Association, the Trustee for the Momentive Performance Materials Inc. 10% Senior Secured Notes due 2020 -- 1.5 Lien Notes -- under the Indenture, dated as of May 25, 2012, by and between Momentive Performance Materials Inc. and The Bank of New York Mellon Trust Company, National Association, is represented by Mark R. Somerstein, Esq., Mark I. Bane, Esq., and Stephen Moeller-Sally, Esq., at Ropes & Gray LLP. U.S. Bank National Association -- as successor Indenture Trustee under the indenture dated as of December 4, 2006, among Momentive Performance Materials Inc., the Guarantors named in the Indenture, and Wells Fargo Bank, N.A. as initial trustee, governing the 11.5% Senior Subordinated Notes due 2016 -- is represented in the case by Susheel Kirpalani, Esq., Benjamin I. Finestone, Esq., David L. Elsberg, Esq., Robert Loigman, Esq., K. John Shaffer, Esq., and Matthew R. Scheck, Esq., at Quinn Emanuel Urquhart & Sullivan, LLP; and Clark Whitmore, Esq., and Ana Chilingarishvili, Esq., at Maslon Edelman Borman & Brand, LLP. BOKF, NA -- as successor First Lien Trustee to The Bank of New York Mellon Trust Company, N.A., as trustee under an indenture dated as of October 25, 2012, for the 8.875% First-Priority Senior Secured Notes due 2020 issued by Momentive Performance Materials Inc. and guaranteed by certain of the debtors -- is represented by Michael J. Sage, Esq., Brian E. Greer, Esq., and Mauricio A. Espana, Esq., at Dechert LLP. Counsel to Apollo Global Management, LLC and certain of its affiliated funds are Ira S. Dizengoff, Esq., Philip C. Dublin, Esq., Abid Qureshi, Esq., Deborah J. Newman, Esq., and Ashleigh L. Blaylock, Esq., at Akin Gump Strauss Hauer & Feld LLP. Attorneys for Ad Hoc Committee of Second Lien Noteholders are Dennis F. Dunne, Esq., Michael Hirschfeld, Esq., and Samuel A. Khalil, Esq., at Milbank, Tweed, Hadley & McCloy LLP. MOMENTIVE PERFORMANCE: Expects to Exit Ch. 11 in Next Few Weeks --------------------------------------------------------------- Momentive Performance Materials Inc. disclosed that the U.S. Bankruptcy Court for the Southern District of New York indicated at a hearing on Aug. 26, 2014 that it will enter an order confirming the Company's restructuring plan once certain modifications have been made to the plan. MPM expects to complete the modifications shortly and to formally emerge from Chapter 11 within the next few weeks. "Now that the court has indicated that it will confirm our plan, the path is clear for MPM to emerge from Chapter 11 as a stronger and more competitive company," said Craig O. Morrison, Chairman, President and CEO of MPM. "Our restructured balance sheet better aligns MPM with current industry dynamics and will provide us with additional cash flow that, among other things, can be invested in growth opportunities, research and development and technology enhancements." The key terms of the plan include a $600 million rights offering, which will provide a significant equity infusion to the Company and 100% recovery to trade creditors and other general unsecured creditors. Upon emergence, MPM will have eliminated $3 billion of debt from its balance sheet, and will have liquidity of approximately $425 million and net debt of $1.2 billion. Mr. Morrison continued, "I want to thank our lenders, including the financial institutions that have provided us with debtor-in- possession and exit financing, for their invaluable support of our company. I also want to express my gratitude to our customers, suppliers and employees for their unwavering commitment to MPM, which has allowed us to operate without interruption throughout this process and to fulfill our obligations worldwide. MPM has a bright future ahead of it, and we look forward to sharing our future success with all of our stakeholders." More information at http://www.momentive.com/mpmrestructuring/ Suppliers can contact a dedicated vendor hotline, toll-free at 844-812-8197 or locally at 614-225-4200, or via e-mail at mpmvendorhotline@momentive.com Court filings and information about the claims process are available on a dedicated website administered by MPM's claims agent, Kurtzman Carson Consultants LLC, at http://www.kccllc.net/mpmor by calling 888-249-2792 (310-751-2607 for international calls). Willkie Farr & Gallagher LLP is serving as legal counsel, Moelis & Company is serving as financial advisor, and AlixPartners, LLP is serving as restructuring advisor to MPM. About Momentive Performance Momentive Performance is one of the world's largest producers of silicones and silicone derivatives, and is a global leader in the development and manufacture of products derived from quartz and specialty ceramics. Momentive has a 70-year history, with its origins as the Advanced Materials business of General Electric Company. In 2006, investment funds affiliated with Apollo Global Management, LLC, acquired the company from GE. As of Dec. 31, 2013, the Company had 4,500 employees worldwide, of which 46% of the Company's employees are members of a labor union or are represented by workers' councils that have collective bargaining agreements. Momentive Performance Materials Inc., Momentive Performance Materials Holdings Inc., and their affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 14-22503) on April 14, 2014, with a deal with noteholders on a balance-sheet restructuring. As of Dec. 31, 2013, the Debtors had $4.114 billion of consolidated outstanding indebtedness, including payments due within the next 12 months and short-term borrowings. The Debtors said that the restructuring will eliminate $3 billion in debt. The Debtors have tapped Willkie Farr & Gallagher LLP as bankruptcy counsel with regard to the filing and prosecution of these chapter 11 cases; Sidley Austin LLP as special litigation counsel; Moelis & Company LLC as financial advisor and investment banker; AlixPartners, LLP as restructuring advisor; PricewaterhouseCoopers as auditor; and Crowe Horwath LLP as benefit plan auditor. Kurtzman Carson Consultants LLC is the notice and claims agent. The U.S. Trustee for Region 2 appointed seven members to serve on the Official Committee of Unsecured Creditors of the Debtors' cases. Klee, Tuchin, Bogdanoff & Stern LLP serves as its counsel. FTI Consulting, Inc., serves as its financial advisor. Rust Consulting Omni Bankruptcy serves as its information agent. Wilmington Trust, National Association, the Trustee for the Momentive Performance Materials Inc. 10% Senior Secured Notes due 2020 -- 1.5 Lien Notes -- under the Indenture, dated as of May 25, 2012, by and between Momentive Performance Materials Inc. and The Bank of New York Mellon Trust Company, National Association, is represented by Mark R. Somerstein, Esq., Mark I. Bane, Esq., and Stephen Moeller-Sally, Esq., at Ropes & Gray LLP. U.S. Bank National Association -- as successor Indenture Trustee under the indenture dated as of December 4, 2006, among Momentive Performance Materials Inc., the Guarantors named in the Indenture, and Wells Fargo Bank, N.A. as initial trustee, governing the 11.5% Senior Subordinated Notes due 2016 -- is represented in the case by Susheel Kirpalani, Esq., Benjamin I. Finestone, Esq., David L. Elsberg, Esq., Robert Loigman, Esq., K. John Shaffer, Esq., and Matthew R. Scheck, Esq., at Quinn Emanuel Urquhart & Sullivan, LLP; and Clark Whitmore, Esq., and Ana Chilingarishvili, Esq., at Maslon Edelman Borman & Brand, LLP. BOKF, NA -- as successor First Lien Trustee to The Bank of New York Mellon Trust Company, N.A., as trustee under an indenture dated as of October 25, 2012, for the 8.875% First-Priority Senior Secured Notes due 2020 issued by Momentive Performance Materials Inc. and guaranteed by certain of the debtors -- is represented by Michael J. Sage, Esq., Brian E. Greer, Esq., and Mauricio A. Espana, Esq., at Dechert LLP. Counsel to Apollo Global Management, LLC and certain of its affiliated funds are Ira S. Dizengoff, Esq., Philip C. Dublin, Esq., Abid Qureshi, Esq., Deborah J. Newman, Esq., and Ashleigh L. Blaylock, Esq., at Akin Gump Strauss Hauer & Feld LLP. Attorneys for Ad Hoc Committee of Second Lien Noteholders are Dennis F. Dunne, Esq., Michael Hirschfeld, Esq., and Samuel A. Khalil, Esq., at Milbank, Tweed, Hadley & McCloy LLP. N'GENUITY ENTERPRISES: Bo Jackson Dispute Prompts Ch.22 Filing -------------------------------------------------------------- N'Genuity Enterprises Co., based on Scottsdale, Arizona, filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case No. 14-11553) in Phoenix on July 28, 2014, listing total assets of $2.33 million and total debts of $3.06 million. The company makes food products for the U.S. military, restaurants, food service operations and casinos. Judge Paul Sala presides over the case. John R. Clemency, Esq., at Gallagher & Kennedy, P.A., serves as the Debtor's counsel. MCA Financial Group, Ltd., serves as the Debtor's financial and restructuring advisor. The petition was signed by Valerie M. LittleChief, president. A list of the Debtor's 11 largest unsecured creditors is available for free at http://bankrupt.com/misc/azb14-11553.pdf Mike Sunnucks, writing for Phoenix Business Journal, reports that N'Genuity cited continued lawsuits from Vincent "Bo" Jackson, who starred in both the National Football League and Major League Baseball, as one of the driving reasons for the bankruptcy. "The company cannot afford another round of litigation with Jackson which would undoubtedly would be followed by another round," Ms. LittleChief said in court documents filed with the U.S. Bankruptcy Court in Phoenix, according to the report. According to the Business Journal, Mr. Jackson and N'Genuity had a business partnership that started in 2001. But by 2009, the relationship had soured and Jackson asked to be taken out of marketing campaigns. The former outfielder has alleged mismanagement, nepotism and contends he was squeezed out of decision-making. The report also noted that the relationship soured even more when a likeness of Mr. Jackson, a former Auburn University and Oakland Raiders running back, started doing advertisements for Chick-Fil- A. N'Genuity sued Chick-Fil-A in 2011 over ads featuring Mr. Jackson. He then turned around and sued N'Genuity, seeking $17 million in damages. The court in that case ended up awarding Jackson $500,000 in damages and 49% of the company. N'Genuity first filed for Chapter 11 bankruptcy protection in 2011, also citing lawsuits with Mr. Jackson, the report recounted. The company emerged from that bankruptcy in 2013 only to refile again in July. Business Journal also reported that a bankruptcy court filing by Mr. Jackson's attorneys claims the latest Chapter 11 is to avoid potential damages N'Genuity might owe from civil lawsuits. The report also said Mr. Jackson has challenged N'Genuity's hiring of Gallagher & Kennedy PA attorney John Clemency in its most recent bankruptcy case. Mr. Clemency and LittleChief did not respond to requests for comment, according to the report. Warren Stapleton, Mr. Jackson's attorney in Phoenix, also was not able to comment on the bankruptcy and other legal fights. NE OPCO: Court Denies Cenveo's Bid to Enforce Sept. 12 Sale Order ----------------------------------------------------------------- U.S. Bankruptcy Judge Christopher S. Sontchi entered an order denying in part, and approving in part, the corrected motion of Cenveo Corporation and Cenveo, Inc., buyers of certain assets of NE Opco Inc., to enforce the Sept. 12, 2013 sale order and injunction. As reported in the Troubled Company Reporter on Aug. 12, 2014, Cenveo filed a "Corrected Motion Pursuant to 11 U.S.C. [Sections] 105 and 363 to Enforce the Court's Sept. 12, 2013 Sale Order and Injunction" to bar a wrongful discrimination claim filed by Paul Torres, who worked as a machine adjuster for NE Opco. Judge Sontchi, in an opinion, said that the pre-Closing claims against Cenveo related to the sale of the assets do not survive the Closing. Consequently, Mr. Torres' pre-Closing claims are barred by the Sale Order and enjoined from continuing against Cenveo. Judge Sontchi, however, added that claims arising post-Closing are not claims against the Debtors' bankruptcy estate and cannot be barred by the Sale Order. Thus, the Sale Order does not enjoin Torres from asserting claims against Cenveo for (alleged) wrongdoings committed after the Closing. Furthermore, as there are no post-Closing claims against the Debtors, the Bankruptcy Court does not have jurisdiction to decide the post-Closing claims between Torres and Cenveo, the judge said. About NE OPCO, Inc. National Envelope is the largest privately-held manufacturer of envelopes in North America. Headquartered in Frisco, Texas, National Envelope has eight plants and 15 percent of the envelope market. Revenue of $427 million in 2012 resulted in a $60.1 million net loss, continuing an unbroken string of losses since 2007. NE OPCO, Inc., doing business as National Envelope, along with affiliate NEV Credit Holdings, Inc., filed petitions seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-11483) on June 10, 2013. The company disclosed liabilities including $148.4 million in secured debt, with $37.5 million owing on a revolving credit and $15.6 million on a secured term loan. There is a $55.7 million second-lien debt 82 percent held by a Gores Group LLC affiliate. National Envelope, then known as NEC Holdings Corp., first sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 10-11890) on June 10, 2010. The business was bought by Gores Group LLC for $208 million in a bankruptcy sale. National Envelope, through NE OPCO, has returned to bankruptcy to pursue a plan of reorganization or sell the assets as a going concern via 11 U.S.C. Sec. 363. The Debtor plans to facilitate a sale of the business with publicly traded competitor Cenveo Inc. In the 2013 case, the company tapped the law firm Richards, Layton & Finger as counsel, PricewaterhouseCoopers LLP as financial adviser, and Epiq Bankruptcy Solutions as claims and notice agent. The Gores Group is represented by Weil, Gotshal and Manges LLP and Lowenstein Landler LLP. Salus Capital Partners, the DIP agent, is represented by Choate, Hall & Stewart LLP and Morris Nichols Arsht & Tunnell LLP. Wells Fargo Capital Finance, LLC, the prepetition senior agent, is represented by Goldberg Kohn Ltd and DLA Piper. The Official Committee of Unsecured Creditors is represented by Pachulski Stang Ziehl & Jones LLP's Laura Davis Jones, Esq., Bradford J. Sandier, Esq., Robert J. Feinstein, Esq., and Peter J. Keane, Esq. Guggenheim Securities, LLC, serves as its investment banker and financial advisor. National Envelope won court approval on July 19, 2013, for a global settlement permitting a sale of the company without objection from the official unsecured creditors' committee. The settlement ensures some recovery for unsecured creditors. The Company also won final approval for $67.5 million in bankruptcy financing being supplied by Salus Capital Partners LLC. Judge Christopher Sontchi authorized three buyers to acquire National Envelope's business for a total of about $70 million. Connecticut-based printer Cenveo Inc. acquired National Envelope's operating assets for $25 million, Hilco Receivables LLC picked up accounts receivable for $25 million and Southern Paper LLC took on its inventory for $15 million. NEOMEDIA TECHNOLOGIES: Posts $3.6 Million Net Income in Q2 ---------------------------------------------------------- NeoMedia Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $3.57 million on $654,000 of revenue for the three months ended June 30, 2014, as compared with net income of $637,000 on $1.66 million of revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income of $3.58 million on $1.65 million of revenue compared to net income of $29.67 million on $2.26 million of revenue for the same period last year. As of June 30, 2014, the Company had $4.79 million in total assets, $37.66 million in total liabilities, all current, $4.59 million in series C convertible preferred stock, $348,000 in series D convertible preferred stock, and a $37.81 million total shareholders' deficit. As of June 30, 2014, the Company had $64,000 in cash and cash equivalents compared with $267,000 as of Dec. 31, 2013. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Dp5mAL About NeoMedia Technologies Atlanta, Ga.-based NeoMedia Technologies provides mobile barcode scanning solutions. The Company's technology allows mobile devices with cameras to read 1D and 2D barcodes and provide "one click" access to mobile content. NeoMedia reported a net loss of $214.11 million in 2013, as compared with a net loss of $19.38 million in 2012. Kingery & Crouse, P.A., in Tampa, FL, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations, has significant working capital and shareholder deficits and may have ongoing requirements for additional capital investment. These factors raise substantial doubt about the Company's ability to continue as a going concern. NETTALK.COM INC: Delays Second Quarter Form 10-Q for Review ----------------------------------------------------------- Nettalk.com, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the period ended June 30, 2014. "We are working with our independent accountants to complete our second quarter financial statements and footnote disclosures to be included in Form 10-Q. We need additional time to properly complete the review and final preparation of Form 10-Q," the Company said. About Net Talk.com Based in Miami, Fla., Net Talk.com, Inc., is a telephone company, that provides, sells and supplies commercial and residential telecommunication services, including services utilizing voice over internet protocol technology, session initiation protocol technology, wireless fidelity technology, wireless maximum technology, marine satellite services technology and other similar type technologies. Net Talk.com incurred a net loss of $4.78 million on $6.02 million of net revenues for the year ended Dec. 31, 2013, as compared with a net loss of $14.71 million on $5.79 million of net revenues in 2012. Zachary Salum Auditors P.A., in Miami, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred significant recurring losses from operations, its total liabilities exceeds its total assets, and is dependent on outside sources of funding for continuation of its operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "We have not sustained profits and our losses could continue. Without sufficient additional capital to repay our indebtedness or continue operations, we may be required to significantly scale back our operations, significantly reduce our headcount, seek protection under the provisions of the U.S. Bankruptcy Code, and/or discontinue many of our activities which could negatively affect our business and prospects. Our current capital raising efforts may not be successful in raising additional capital on favorable terms, or at all," the Company said in the 2013 Annual Report. NEW BERN RIVERFRONT: Weaver's Negligence Claim v. Curenton Nixed ---------------------------------------------------------------- U.S. Bankruptcy Judge Stephani W. Humrickhouse said Weaver Cooke Construction, LLC's claims for negligence and breach of express warranty asserted against Curenton Concrete Works, Inc. related to the development of the SkySail Luxury Condominiums in New Bern, North Carolina, are time-barred. Curenton argues that Weaver Cooke's negligence and breach of warranty claims accrued more than three years prior to the June 14, 2012, filing date of Weaver Cooke's second, third-party complaint. Curenton claims that, due to Weaver Cooke's knowledge of alleged defects attributable to it prior to June of 2009, Weaver Cooke's negligence and breach of warranty claims are time- barred. In response, Weaver Cooke argues that a genuine issue of material fact exists as to when Weaver Cooke discovered the impact of the defects giving rise to its causes of action alleged against Curenton; i.e., Weaver Cooke claims it first discovered the extent of the damage caused by defects attributable to Curenton within three years of its second, third-party complaint. Judge Humrickhouse, however, sided with Curenton in her August 25 Order available at http://is.gd/wdjiTcfrom Leagle.com. Debtor New Bern Riverfront Development, LLC, the owner and developer of the SkySail Project, filed on March 30, 2009, an action in Wake County Superior Court against nine individual defendants related to the alleged defective construction of the SkySail Condos. The named defendants in the State Action included: New Bern's general contractor, Weaver Cooke; Travelers Casualty and Surety Company of America; National Erectors Rebar, Inc. f/k/a National Reinforcing Systems, Inc.; and certain subcontractors of the general contractor. The State Action was removed to the United States District Court for the Eastern District of North Carolina on December 16, 2009, and subsequently transferred to this court on February 3, 2010. After voluntarily dismissing its causes of action as to the subcontractors named as defendants in the State Action, New Bern filed its first amended complaint on May 6, 2010, asserting claims against Weaver Cooke; Travelers; National Erectors Rebar, Inc. f/k/a NRS, and the additional parties of J. Davis Architects, PLLC, and Fluhrer Reed, PA. Weaver Cooke filed an answer to New Bern's first amended complaint and a third-party complaint against Wachovia Bank, National Association and Wells Fargo & Company f/d/b/a Wachovia Corporation. Absent as third-party defendants in Weaver Cooke's original third-party complaint were any of the subcontractors hired by Weaver Cooke during the construction of the SkySail Project. Weaver Cooke then filed its second, third-party complaint asserting claims of negligence, contractual indemnity and breach of express warranty against many of the subcontractors hired during the construction of the SkySail Project, including Curenton. About New Bern Riverfront Cary, North Carolina-based New Bern Riverfront Development, LLC, is the developer of SkySail Condominium, consisting of 121 residential condominiums (plus 1 commercial/non-residential unit) located on Middle Street on the waterfront in historic downtown New Bern, North Carolina, and sells the SkySail Condominiums in the ordinary course of business. New Bern Riverfront filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.C. Case No. 09-10340) on Nov. 30, 2009. John A. Northen, Esq., at Northen Blue, LLP, represents the Debtor. The Company disclosed $31,515,040 in assets and $25,676,781 in liabilities as of the Chapter 11 filing. New Bern Riverfront has filed an Amended Plan of Reorganization, which represents a consensual plan negotiated with the Debtor's secured creditor, Wells Fargo Bank, N.A. The Debtor contemplates selling properties. NEW BERN RIVERFRONT: No Quick Ruling in Weaver v. Gouras Dispute ---------------------------------------------------------------- Bankruptcy Judge Stephani W. Humrickhouse declined to make a summary judgment ruling regarding the third party complaint of Weaver Cooke Construction, LLC against Gouras, Incorporated, related to the development of the SkySail Luxury Condominiums in New Bern, North Carolina. The judge turned down Gouras' summary judgment motion, saying genuine issues of material fact exist as to whether Weaver Cooke knew, or should have known, about Gouras' alleged defects more than three years prior to the June 14, 2012, filing date of its second, third-party complaint. Summary judgment on the statute of limitations defense is denied, the judge said. Debtor New Bern Riverfront Development, LLC, the owner and developer of the SkySail Project, filed on March 30, 2009, an action in Wake County Superior Court against nine individual defendants related to the alleged defective construction of the SkySail Condos. The named defendants in the State Action included: New Bern's general contractor, Weaver Cooke; Travelers Casualty and Surety Company of America; National Erectors Rebar, Inc. f/k/a National Reinforcing Systems, Inc.; and certain subcontractors of the general contractor. The State Action was removed to the United States District Court for the Eastern District of North Carolina on December 16, 2009, and subsequently transferred to this court on February 3, 2010. After voluntarily dismissing its causes of action as to the subcontractors named as defendants in the State Action, New Bern filed its first amended complaint on May 6, 2010, asserting claims against Weaver Cooke; Travelers; National Erectors Rebar, Inc. f/k/a NRS, and the additional parties of J. Davis Architects, PLLC, and Fluhrer Reed, PA. Weaver Cooke filed an answer to New Bern's first amended complaint and a third-party complaint against Wachovia Bank, National Association and Wells Fargo & Company f/d/b/a Wachovia Corporation. Absent as third-party defendants in Weaver Cooke's original third-party complaint were any of the subcontractors hired by Weaver Cooke during the construction of the SkySail Project. Weaver Cooke then filed its second, third-party complaint asserting claims of negligence, contractual indemnity and breach of express warranty against many of the subcontractors hired during the construction of the SkySail Project, including Gouras. A copy of Judge Humrickhouse's August 25 Order is available at http://is.gd/1xQojFfrom Leagle.com. About New Bern Riverfront Cary, North Carolina-based New Bern Riverfront Development, LLC, is the developer of SkySail Condominium, consisting of 121 residential condominiums (plus 1 commercial/non-residential unit) located on Middle Street on the waterfront in historic downtown New Bern, North Carolina, and sells the SkySail Condominiums in the ordinary course of business. New Bern Riverfront filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.C. Case No. 09-10340) on Nov. 30, 2009. John A. Northen, Esq., at Northen Blue, LLP, represents the Debtor. The Company disclosed $31,515,040 in assets and $25,676,781 in liabilities as of the Chapter 11 filing. New Bern Riverfront has filed an Amended Plan of Reorganization, which represents a consensual plan negotiated with the Debtor's secured creditor, Wells Fargo Bank, N.A. The Debtor contemplates selling properties. OMNICOMM SYSTEMS: Earns $580K in Q2, Doubts Going Concern Status ---------------------------------------------------------------- OmniComm Systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income attributable to common stockholders of $580,640 on $3.60 million of total revenues for the three months ended June 30, 2014, compared to a net loss attributable to common stockholders of $1.71 million on $3.72 million of total revenues for the same period last year. For the six months ended June 30, 2014, the Company incurred a net loss attributable to common stockholders of $979,099 on $6.79 million of total revenues compared to a net loss attributable to common stockholders of $6.30 million on $7.47 million of total revenues for the same period in 2013. As of June 30, 2014, the Company had $7.03 million in total assets, $39.36 million in total liabilities and a $32.32 million total shareholders' deficit. "The ability of the Company to continue in existence is dependent on its having sufficient financial resources to bring products and services to market for marketplace acceptance. As a result of our historical operating losses, negative cash flows and accumulated deficits for the period ending June 30, 2014 there is substantial doubt about the Company's ability to continue as a going concern," the Company said in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/oPyigV On Nov. 13, 2013, OmniComm Systems reported under its quarterly report on Form 10-Q for the quarter ended Sept. 30, 2013, the information relating to its acquisition of all the outstanding shares of Promasys B.V. on Nov. 11, 2013. On August 14, the Company filed with the SEC a Form 8-K to report the historical audited financial statements of Promasys for the years ended Dec. 31, 2012 and 2011 required by Rule 8-04 of Regulation S-X. A copy of Prosys' 2012 Annual Report is available at: http://is.gd/QYOKJj About OmniComm Systems Ft. Lauderdale, Fla.-based OmniComm Systems, Inc., is a healthcare technology company that provides Web-based electronic data capture ("EDC") solutions and related value-added services to pharmaceutical and biotech companies, clinical research organizations, and other clinical trial sponsors principally located in the United States and Europe. OmniComm Systems reported a net loss attributable to common stockholders of $3.36 million in 2013, following a net loss attributable to common stockholders of $8.06 million in 2012. The Company's balance sheet at March 31, 2014, showed $4.92 million in total assets, $37.88 million in total liabilities and a $32.95 million total shareholders' deficit. Liggett, Vogt & Webb, P.A., in Boynton Beach, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has experienced net losses and negative cash flows from operations and has utilized debt and equity financing to help provide working capital, capital expenditure and R&D needs. These factors raise substantial doubt about the Company's ability to continue as a going concern. PACDUNES INC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: PacDunes, Inc. dba Kempsville Countertops and Cabinets 1125 Lance Road Norfolk, VA 23502 Case No.: 14-73113 Chapter 11 Petition Date: August 26, 2014 Court: United States Bankruptcy Court Eastern District of Virginia (Norfolk) Judge: Hon. Stephen C. St. John Debtor's Counsel: Joseph T. Liberatore, Esq. CROWLEY, LIBERATORE, RYAN & BROGAN, P.C. Town Point Center, Suite 300 150 Boush Street Norfolk, VA 23510 Tel: 757-333-4500 Fax: 757-333-4501 Email: jliberatore@clrbfirm.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by John C. Wheary, president/treasurer. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/vaeb14-73113.pdf PANACHE BEVERAGE: KLJ Replaces Silberstein as Accountant -------------------------------------------------------- Silberstein Ungar, PLLC, resigned as Panache Beverage, Inc.'s independent registered public accounting firm on July 24, 2014, in connection with the acquisition of a large portion of its client base by KLJ & Associates, LLP. Silberstein's reports on the Company's financial statements for the years ended Dec. 31, 2012, and Dec. 31, 2013, did not contain an adverse opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles, except that the audited financial statements contained in the Company's annual reports on Form 10-K for the fiscal years ended Dec. 31, 2012, and Dec. 31, 2013, contained a going concern qualification. The Company said the resignation was not a result from any disagreement with the accounting firm. On July 28, 2014, the Board of Directors of the Company approved the appointment of KLJ & Associates, LLP, as the Company's independent registered public accounting firm. The Company said that during the Company's fiscal years ended Dec. 31, 2012, and 2013, and through July 24, 2014, no one acting on behalf of the Company has consulted KLJ regarding (i) the application of accounting principles to a specific completed or contemplated transaction, or the type of audit opinion that might be rendered on the Company's financial statements; or (ii) any matter that was either the subject of a disagreement or a reportable event, as defined in Item 304(a) of Regulation S-K. About Panache Beverage New York-based Panache Beverage, Inc., specializes in the strategic development and aggressive early growth of spirits brands establishing its assets as viable and attractive acquisition candidates for the major global spirits companies. Panache builds its brands as individual acquisition candidates while continuing to develop its pipeline of new brands into the Panache portfolio. Panache Beverage reported a net loss of $4.58 million in 2013 following a net loss of $3.27 million in 2012. The Company's balance sheet at March 31, 2014, showed $6.05 million in total assets, $14.36 million in total liabilities and a $8.31 million total deficit. In its report on the consolidated financial statements for the year ended Dec. 31, 2013, Silberstein Ungar, PLLC, expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has limited working capital and has incurred losses from operations. PENSKE AUTOMOTIVE: S&P Raises CCR to 'BB'; Outlook Stable --------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Bloomfield Hills, Mich.-based automotive retailer Penske Automotive Group Inc. to 'BB' from 'BB-'. The outlook is stable. At the same time, S&P raised its issue-level rating on the company's 5.75% $550 million senior subordinated debt to 'B+' (two notches below the corporate credit rating) from 'B'. The '6' recovery rating on the notes remains unchanged, indicating S&P's expectation for negligible recovery (0%-10%) in the event of a payment default. The stable outlook on Penske indicates S&P's expectation that the company will able to meet requirements for the current rating. "For the rating, we would expect the company to maintain its above-average profitability," said Standard & Poor's credit analyst Nancy Messer. "Specifically, we would expect the company to continue to sustain EBITDA margin of 4.0% or better. We would also expect it to maintain debt leverage of 5.0x or less and FOCF to debt of at least 5%." For an upgrade to occur, the company's financial risk profile would need to improve. Specifically, S&P would expect debt leverage to fall to below 4.0x and FOCF as a percentage of debt to increase to at least 10% on a sustainable basis. S&P would also need to believe that the company will employ a "moderate" financial risk policy that balances shareholder expectations for revenue growth with credit quality that is consistent with a higher rating. S&P could lower the rating if Penske's aggressive acquisition strategy leads to investments that S&P believes is significantly riskier than the U.S.-based light vehicle retail market or includes an event that transforms the company's business. S&P could also lower the rating if the U.S. economy falls into another recession, which would decrease demand for vehicles and maintenance, or if Penske's European and U.K. operations become much less profitable than S&P expects. On the financial side, S&P could lower the rating if worsening debt leverage and FOCF cause the company's financial risk profile to worsen. This could occur if debt leverage remains above 5x and FOCF to debt is persistently below 5%. PLASTIPAK HOLDINGS: S&P Affirms 'BB-' CCR; Outlook Stable --------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on Plymouth, Mich.-based packaging company Plastipak Holdings Inc. S&P also affirmed its 'B+' issue-level ratings on the company's $375 million senior unsecured notes. The '5' recovery rating on the company's senior unsecured debt is unchanged, and indicates S&P's expectation of modest (10% to 30%) recovery in the event of a payment default. The revision of the financial risk profile follows S&P's rating review on Plastipak and the recent publication of its Credit FAQ. In August 2012, Goldman Sachs Capital Partners purchased a 35% equity stake in the company. As part of the shareholders agreement, Goldman Sachs Capital Partners has a "put" option to offer Plastipak the right (but not the obligation) to purchase back the equity stake or initiate a sale of the company. "Given that the put option exists at the earlier of Aug. 2017 or in certain other instances, we do not view this instrument as having a strong degree of permanence in the capital structure and are now treating this as debt in our ratio calculations," said Standard & Poor's credit analyst Daniel Krauss. As a result, credit measures weaken moderately and are more in line with an "aggressive" financial risk profile assessment. At the current rating S&P would expect Plastipak to maintain funds from operations (FFO) to total adjusted debt between 15% and 20%. In addition, S&P removed the negative financial policy modifier that it was previously using, given its current expectation that financial policy decisions, including a potential future change in ownership, would not result in credit measures weakening below the "aggressive" band. Privately held Plastipak, with annual revenues of about $2.4 billion, is a leading producer of blow-molded plastic containers in the fragmented and highly competitive rigid plastic packaging industry. Plastipak's business position reflects its satisfactory market shares in plastic packaging for food, beverages, and consumer cleaning products, strategically located facilities in close proximity to customers, and its long-standing and mostly contractual relationships with well-established customers. Plastipak derives a significant portion of revenues from recession-resistant end markets, which helped contribute to volume growth through the past recession. In addition, S&P expects the company to continue to benefit from the gradual shift to plastic from other packaging materials, due to its lighter weight, reduced transportation costs, and sustainability characteristics. The outlook is stable. Plastipak derives a meaningful portion of its earnings from the recession-resistant food and beverage and consumer products end markets, which has led to continued volume growth over the past several years (unit volumes have grown at a compound annual growth rate of about 5% from fiscal 2009 through fiscal 2013). S&P's base case assumes that EBITDA in fiscal 2014 will be roughly in line with fiscal 2013 levels, as growth in North America and the acquisition of Constar is offset by continued weakness in Latin America. S&P expects that throughout the next year, Plastipak will maintain adequate liquidity and credit measures that are in line with S&P's expectations at the current rating, including FFO to debt of 15% to 20%. In order to consider a higher rating, S&P would need to gain more clarity around the company's potential future ownership and financial policy decisions. In addition to this, S&P could consider a one-notch upgrade if it believes that the company will be able to improve FFO to debt to about 25% for an extended period. S&P would expect the company to consistently generate positive discretionary cash flow and to maintain adequate liquidity levels, with covenant cushions greater than 20%. Based on S&P's scenario forecasts, it could lower the ratings if EBITDA declines materially as a result of increasingly competitive market conditions, raw material cost pressures, or the loss of a key customer. Based on S&P's downside scenario, it could lower the ratings if EBITDA margins weaken by 200 basis points or more below S&P's expectations, coupled with revenue declines of above 5%. In this scenario, S&P would expect FFO to total debt to approach 12%. The ratings could also come under pressure if debt increased materially as a result of a potential change in ownership, increased capital expenditures, shareholder rewards, or acquisitions. A downgrade is also possible if unfavorable settlements in the outstanding Brazilian tax cases pressured liquidity, or if covenant cushions decline to less than 10%. PREMIER TRAILER: S&P Withdraws 'B-' CCR at Company's Request ------------------------------------------------------------ Standard & Poor's Ratings Services withdrew its ratings on Premier Trailer Leasing Inc., including the 'B-' corporate credit rating. "We initially assigned ratings to the company on June 13, 2014, in conjunction with its plan to enter into a new $135 million second- lien term loan," said Standard & Poor's credit analyst Lisa Jenkins. "Premier didn't complete the transaction and has asked that we withdraw our ratings on the company. Premier is a provider of trailer leases and rentals." PREMONT INDEPENDENT SCHOOL: Moody's Affirms 'Ba1' GO Bonds Rating ----------------------------------------------------------------- Moody's Investors Service has affirmed the Ba1 rating on Premont Independent School District's (TX) general obligation bonds. The rating affects $2 million of outstanding GO debt. The bonds are secured by an unlimited ad valorem tax on all taxable property within the district. Summary Rating Rationale The affirmation of the Ba1 rating reflects the district's accreditation status of "Accredited-Warned," an improved financial position, small and concentrated tax base, weak socioeconomic profile, and a moderate debt burden. Strengths: -- Improved financial position -- Increase in enrollment in fiscal 2014 Challenges: -- Accreditation status of "Accredited-Warned" -- Long-term trend of declining enrollment -- Modestly-sized tax base that is concentrated in oil and gas -- Weak socioeconomic profile What Could Make The Rating Go -- UP -- Accreditation status of "Accredited" with TEA -- Stabilization of enrollment -- Significant tax base growth and diversification What Could Make The Rating Go -- DOWN -- Deterioration of fund balance or liquidity -- Further declines in enrollment -- Contraction of the tax base PRESSURE BIOSCIENCES: Presented at Wall Street Conference --------------------------------------------------------- Richard T.Schumacher, president, CEO and board member of Pressure Biosciences, Inc., presented at the Wall Street Research Conference on Aug. 19, 2014. The presentation discussed about Company overview, experienced management and board, and key investment highlights. A copy of Powerpoint Presentation is available for free at http://is.gd/uw1dFC About Pressure Biosciences Pressure BioSciences, Inc., headquartered in South Easton, Massachusetts, holds 14 United States and 10 foreign patents covering multiple applications of pressure cycling technology in the life sciences field. Pressure Biosciences reported a net loss applicable to common shareholders of $5.24 million on $1.50 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss applicable to common stockholders of $4.40 million on $1.23 million of total revenue in 2012. As of June 30, 2014, the Company had $1.48 million in total assets, $2.75 million in total liabilities, and a $1.27 million total stockholders' deficit. Marcum LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has had recurring net losses and continues to experience negative cash flows from operations. The auditors said these conditions raise substantial doubt about its ability to continue as a going concern. PSL-NORTH AMERICA: Gets Court OK to Sell Substantially All Assets ----------------------------------------------------------------- A bankruptcy judge authorized PSL-North America LLC, et al., to sell substantially all their assets to Jindal Tubular USA LLC in accordance with the terms of the asset purchase agreement dated June 16, 2014. In an auction held on Aug. 15, Jindal's offer constituted the highest or best offer for the purchased assets. The Debtors had resolved certain objections, among other things, in satisfaction of its secured claim against the Debtors, AM/NS Calvert LLC will receive: 1. The immediate payment in cash of $327,600, which is comprised of $75,000 in cash on hand that the Debtors had as of the Petition Date and $252,600 in accounts receivable generated by the sale of Calvert's collateral that was collected postpetition; 2. The immediate return of all manufactured pipe made from coil supplied by Calvert that was unsold as of the petition date, of which the Debtors believe there remains 521 tons; and 3. The immediate return of all unmanufactured Calvert coil in the Debtors' possession, custody or control. In response to the objection of CSX Transportation, Inc., to the sale motion, the Debtors said that the sale to Jindal Tubular was the culmination of a full and fair marketing process and represents the highest and best value for the Debtors' estates. No other bids for purchase of the Debtors' assets were received by the bid deadline. The Debtors added that the DIP financing facility provided by ICICI Bank Limited, New York Branch funded the sale process and provides for a wind-down budget which the Debtors intend to use to propose a plan of liquidation to conclude the Chapter 11 cases. ICICI Bank Limited, New York Branch, as prepetition and postpetition senior secured lender joined the Debtor's response to CSX's objection. As reported in the Troubled Company Reporter on Aug. 15, 2014, Law360 reported that CSX took issue with the Debtors' proposed $104 million stalking horse sale, saying the structure of the deal unfairly benefits the bankrupt pipe maker's largest creditor. According to the report, railroad giant CSX, an unsecured creditor of PSL NA, does not oppose a Section 363 auction of the debtors' assets but contends the proposed sale terms are improper because ICICI Bank Ltd. would have its $78 million debt assumed before the court can determine whether its liens are properly secured, according to an objection filed in court. The Court also ordered that other objections were overruled. About PSL-North America Founded in 2006, PSL-North America LLC is a manufacturer and coater of large diameter steel pipes. The company has a state-of- the-art facility located in Bay St. Louis, Mississippi, with the land leased for 99 years. The company is an American-based partially owned subsidiary of India's largest producer and manufacturer of steel piping, PSL Limited. On June 16, 2014, PSL-North America LLC and PSL USA Inc., filed voluntary petitions in Delaware (Lead Case No. 14-11477) seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Judge Peter J. Walsh. The Debtors seek to have their cases jointly administered for procedural purposes. PSL-North America LL disclosed $93,343,085 in assets and $204,025,409 in liabilities as of the Chapter 11 filing. As of the Petition Date, the company had total outstanding debt obligations of $130 million, according to a court filing. Proposed counsel for the Debtor are John H. Knight, Esq., Paul N. Heath, Esq., Tyler D. Semmelman, Esq., Amanda R. Steele, Esq. and William A. Romanowicz, Esq. at Richards, Layton & Finger, P.A. of Wilmington, Delaware. Epiq Bankruptcy Solutions serves as claims agent. PSL-NORTH AMERICA: CSX Approved to Proceed with Alabama Action -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved a stipulation granting CSX Transportation, Inc., limited relief from the automatic stay in the Chapter 11 cases of PSL - North America LLC, et al. On Aug. 7, 2014, CSX requested for relief from the automatic stay to pursue claims that are nominally against the Debtor and pending in the U.S. District Court for the Northern District of Alabama, but for which the Debtor is fully insured and represented by insurance carriers. CSX assert that the Alabama Action is nearly complete after a year of discovery and must be permitted to proceed to trial. About PSL-North America Founded in 2006, PSL-North America LLC is a manufacturer and coater of large diameter steel pipes. The company has a state-of- the-art facility located in Bay St. Louis, Mississippi, with the land leased for 99 years. The company is an American-based partially owned subsidiary of India's largest producer and manufacturer of steel piping, PSL Limited. On June 16, 2014, PSL-North America LLC and PSL USA Inc., filed voluntary petitions in Delaware (Lead Case No. 14-11477) seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Judge Peter J. Walsh. The Debtors seek to have their cases jointly administered for procedural purposes. PSL-North America LL disclosed $93,343,085 in assets and $204,025,409 in liabilities as of the Chapter 11 filing. As of the Petition Date, the company had total outstanding debt obligations of $130 million, according to a court filing. Proposed counsel for the Debtor are John H. Knight, Esq., Paul N. Heath, Esq., Tyler D. Semmelman, Esq., Amanda R. Steele, Esq. and William A. Romanowicz, Esq. at Richards, Layton & Finger, P.A. of Wilmington, Delaware. Epiq Bankruptcy Solutions serves as claims agent. RESIDENTIAL CAPITAL: Court Rejects Motion to Remand Suit v. UBS --------------------------------------------------------------- Bankruptcy Judge Martin Glenn denied a motion to remand in the lawsuit, RESIDENTIAL FUNDING COMPANY, LLC, Plaintiff, v. UBS REAL ESTATE SECURITIES, INC., Defendant, Adv. Pro. Case No. 14-01926 (MG)(Bankr. S.D.N.Y.). Residential Funding Company, LLC sued UBS Real Estate Securities, Inc. in the New York State Supreme Court, seeking breach of contract damages and indemnification related to loans UBS sold to RFC. RFC then removed the action to the Bankruptcy Court, and UBS now seeks to remand the case to state court. UBS also filed a motion to withdraw the reference of the action to the Bankruptcy Court. Judge Daniels of the District Court denied that motion without prejudice, in part to await the Bankruptcy Court's decision on the Remand Motion. The complaint against UBS is substantially similar to complaints in 83 other lawsuits initiated by RFC or its successor in interest, the ResCap Liquidating Trust. The majority of the RMBS Actions are currently pending in the U.S. District Court for the District of Minnesota, and 13 adversary proceedings substantially similar to the action against UBS are currently pending before the Bankruptcy Court, under the central docket In re ResCap Liquidating Trust Mortgage Purchase Litigation, Adv. No. 14-07900 (Bankr. S.D.N.Y.). At least 10 defendants in those adversary proceedings have pending motions to withdraw the bankruptcy reference and/or transfer venue, each in front of a different district judge. The RMBS Actions involve similar state law claims for breach of contract and indemnification related to the packaging and sale of residential mortgage backed securities. According to Judge Glenn, what sets the UBS action apart is the fact that UBS filed a proof of claim against RFC in the bankruptcy case. That distinction is determinative of the outcome of this Motion. UBS's proof of claim seeks contract breach damages and indemnification under a separate but similar contract governing the sale of loans from RFC to UBS. RFC's claims against UBS are counterclaims to UBS's proof of claim. According to Judge Glenn, those counterclaims are statutorily "core" under 28 U.S.C. Sec. 157(b)(2)(C) as "counterclaims by the estate against persons filing claims against the estate." It follows that the counterclaims fall within Congress' grant of federal subject matter jurisdiction under 28 U.S.C. Sec. 1334(b) over "civil proceedings arising under title 11, or arising in or related to cases under title 11." "Whether this Court has the constitutional authority (absent consent) to enter final judgment on the counterclaims is a separate issue, not necessary for a ruling on the Remand Motion. Further, because RFC's claims are "core," they are not subject to mandatory abstention under 28 U.S.C. [Sec.] 1334(c)(2), and the Court will not abstain from hearing this action under the permissive abstention principles of 28 U.S.C. [Sec.] 1334(c)(1)," Judge Glenn said. "Accordingly, the Remand Motion is denied." A copy of Judge Glenn's August 25 Order is available at http://is.gd/4jFQWCfrom Leagle.com. Attorneys for Defendant UBS Real Estate Securities, Inc.: Alexander C. Drylewski, Esq. SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP Four Times Square New York, NY 10036 Attorneys for Plaintiff Residential Funding Company, LLC: Isaac Nesser, Esq. QUINN EMANUEL URQUHART & SULLIVAN, LLP 51 Madison Avenue, 22nd Floor New York, NY 10010 About Residential Capital Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities at March 31, 2012. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. ResCap sold most of the businesses for a combined $4.5 billion. The Bankruptcy Court in November 2012 approved ResCap's sale of its mortgage servicing and origination platform assets to Ocwen Loan Servicing, LLC and Walter Investment Management Corporation for $3 billion; and its portfolio of roughly 50,000 whole loans to Berkshire Hathaway for $1.5 billion. Judge Martin Glenn in December 2013 confirmed the Joint Chapter 11 Plan co-proposed by Residential Capital and the Official Committee of Unsecured Creditors. RESTORGENEX CORP: Grants 1.5MM Shares Options to Executives ----------------------------------------------------------- Effective July 24, 2014, the Board of Directors of Restorgenex Corporation approved the grant of stock options to the following officers and directors: (a) Yael Schwartz, executive vice president of Preclinical Development, options to purchase 119,482 shares; (b) David Sherris, chief scientific officer and director, options to purchase 119,482 shares; (c) Stephen M. Simes, chief executive officer, options to purchase 542,975 shares; (d) Sol Barer, Chairman of the Board, options to purchase 123,287 shares; (e) Isaac Blech, director, options to purchase 87,449 shares; (f) Rex Bright, options to purchase 61,085 shares; (g) Craig Abolin, vice president of Pharmaceutical Sciences, options to purchase 59,729 shares; (h) Tim Boris, General Counsel, options to purchase 79,655 shares; (i) Phil Donenberg, chief financial officer, options to purchase 271,475 shares; and (j) Nelson Stacks, director, options to purchase 61,374 shares. All of the options are for a term of 10 years at an exercise price of $3.92 per share and vest quarterly over a three-year period. About RestorGenex RestorGenex Corporation operates as a biopharmaceutical company. It focuses on dermatology, ocular disease, and women's health areas. The company was formerly known as Stratus Media Group, Inc., and changed its name to RestorGenex Corporation in March 2014. RestorGenex Corporation is based in Los Angeles, California. Restorgenex reported a net loss of $2.45 million in 2013 following a net loss of $6.85 million in 2012. The Company's balance sheet at March 31, 2014, showed $26.45 million in total assets, $14.23 million in total liabilities, and stockholders' equity of $12.21 million. Goldman Kurland and Mohidin LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that RestorGenex Corporation has suffered recurring losses and has negative cash flow from operations. These conditions raise substantial doubt as to the ability of RestorGenex Corporation to continue as a going concern. REVEL AC: Luis Salazar Appointed as Consumer Privacy Ombudsman -------------------------------------------------------------- In the Chapter 11 cases of Revel AC and their affiliates, the Bankruptcy Court entered these orders: -- an order directing the United States Trustee to appoint one disinterested person to serve as ombudsman in the Debtors' cases; -- a corrected order that authorized and approved the Debtors' Key Employee Incentive Program. Among other things, the corrected order directs the debtors to file the unredacted version of the KEIP disclosing the sale consideration milestones promptly upon the announcement of the successful bidder at the conclusion of the auction; and -- a final order authorizing the Debtors to pay the prepetition claims of certain essential vendors. On August 8, the U.S. Trustee filed a notice of appointment of Luis Salazar as the consumer privacy ombudsman. Revel AC asked the Bankruptcy Court to enter a judgment and order on the payment of prepetition claims, and to approve the KEIP. The Debtors, the Office of the United States Trustee for the District of New Jersey and the DIP Lenders consented to the appointment of a consumer privacy ombudsman. On July 7, 2014, IDEA Boardwalk filed with the court a limited opposition with regard to the payment of prepetition claim. While IDEA is supportive of the relief sought by Revel, IDEA believes that the payment of the prepetition claim requires clarification. The Debtors seek authority to pay prepetition claims of essential vendors, such as third party operators accepting room charges for goods and services, like IDEA. IDEA argues that the monies collected by the Debtors for the third party operators should be segregated from the assets of the Debtors. Further, it is stated that the financing motion sought by the Debtor should be amended to indicate that the Debtors' authority to use cash collateral does not include authorization to use or lien monies collected on account for the third party operators. On July 14, 2014, the Court entered an order authorizing, but not directing, the Debtors to pay the prepetition claims of essential vendors or parties who supply goods or services to the continued operation of the Debtors' businesses. Thus, subject to claim payment procedures, the Debtors may make essential payments in an aggregate amount not to exceed $3.5 million, with no one essential vendor receiving more than $385,000. On the other hand, the official committee of unsecured creditors submitted its limited objection to the KEIP. The committee believes that it is a wasteful exercise to engage in discovery and litigate the KEIP motion. The Committee also said it is premature to embark on a disclosure statement approval and plan solicitation and confirmation process until after there is an indication that there will be a successful auction will be an exercise in futility. On July 25, 2014, the U.S. Trustee filed its objection to the KEIP. The KEIP bonus provision is based in part on the success of operations from the petition date to the closing date and in part in the successful sale of the Debtor's assets. The KEIP's total potential award is $1,750,000 to be taken from the realization of a certain amount of proceeds from the sale of substantially all of the debtors' assets and part from the debtors in achieving an actual operating cash flow that equals or exceeds the budgeted operating cash flow. The U.S. Trustee's concern deals particularly on the fact that the KEIP does not identify which of the participating employee is an insider. The program also does not provide sufficient information regarding the difficulty of achieving the bonus targets. About Revel AC Revel AC, Inc. -- http://www.revelresorts.com/-- owns and operates Revel, a Las Vegas-style, beachfront entertainment resort and casino located on the Boardwalk in the south inlet of Atlantic City, New Jersey. Revel AC Inc. and five of its affiliates sought bankruptcy protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19, 2014, to pursue a quick sale of the assets. The Chapter 11 cases are assigned to Judge Gloria M. Burns. The Debtors' Chapter 11 cases are jointly consolidated for procedural purposes. Revel AC estimated assets ranging from $500 million to $1 billion, and the same amount of liabilities. White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors' Counsel, and Moelis & Company, LLC, is the investment banker. The Debtors' solicitation and claims agent is Alixpartners, LLP. The prepetition first lenders are represented by Cadwalader, Wickersham & Taft LLP. The prepetition second lien lenders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP. This is Revel AC's second trip to bankruptcy. The company first sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13- 16253) on March 25, 2013, with a prepackaged plan that reduced debt by $1.25 billion. Less than two months later on May 15, 2013, the 2013 Plan was confirmed and became effective on May 21, 2013. REVEL AC: Gavin/Solmonese Okayed as Committee's Financial Advisor ----------------------------------------------------------------- U.S. Bankruptcy Judge Gloria M. Burns authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Revel AC, Inc., et al., to retain Gavin/Solmonese LLC as its financial advisor nunc pro tunc to July 2, 2014. Gavin/Solmonese is expected to, among other things: a) review and analyze the businesses, management, operations, properties, financial condition and prospects of the Debtors; b) review and analyze historical financial performance, and transactions between and among the Debtors, their creditors, affiliates and other entities; and c) review the assumptions underlying the business plans and cash flow projections for the assets involved in any potential asset sale or plan of reorganization. Gavin/Solmonese engagement team for the Committee is comprised of: Hourly Rate ----------- Edward T. Gavin, CTP $625 Wayne P. Weitz $500 Stanley Mastil $395 From time to time, other Gavin/Solmonese professionals may be involved in the cases as needed. Hourly rates for the professionals range from $250 to $650 per hour. The Court also ordered that Gavin/Solmonese's total fees for the engagement will not exceed $200,000. To the best of the Committee's knowledge, Gavin/Solmonese does not hold or represent any interest adverse to the Debtors, their estates or creditors. In a separate order, the Court authorized the Debtors to employ The Brattle Group, Inc. as their economic consultant. The Committee is represented by: Michael D. Sirota, Esq. Warren A. Usatine, Esq. Ilana Volkov, Esq. Ryan T. Jareck, Esq. COLE, SCHOTZ, MEISEL, FORMAN & LEONARD, P.A. A Professional Corporation Court Plaza North 25 Main Street P.O. Box 800 Hackensack, NJ 07602-0800 Tel: (201) 489-3000 Fax: (201) 489-1536 The Debtors are represented by: Alfred J. Lechner Jr., Esq. John K. Cunningham, Esq. Richard S. Kebrdle, Esq. Kevin M. McGill, Esq. WHITE & CASE LLP Southeast Financial Center 200 South Biscayne Boulevard, Suite 4900 Miami, FL 33131 Tel: (305) 371-2700 Fax: (305) 358-5744 E-mails: jlechner@whitecase.com jcunningham@whitecase.com rkebrdle@whitecase.com kmcgill@whitecase.com About Revel AC Revel AC, Inc. -- http://www.revelresorts.com/-- owns and operates Revel, a Las Vegas-style, beachfront entertainment resort and casino located on the Boardwalk in the south inlet of Atlantic City, New Jersey. Revel AC Inc. and five of its affiliates sought bankruptcy protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19, 2014, to pursue a quick sale of the assets. The Chapter 11 cases are assigned to Judge Gloria M. Burns. The Debtors' Chapter 11 cases are jointly consolidated for procedural purposes. Revel AC estimated assets ranging from $500 million to $1 billion, and the same amount of liabilities. White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors' Counsel, and Moelis & Company, LLC, is the investment banker. The Debtors' solicitation and claims agent is Alixpartners, LLP. The prepetition first lenders are represented by Cadwalader, Wickersham & Taft LLP. The prepetition second lien lenders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP. This is Revel AC's second trip to bankruptcy. The company first sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13- 16253) on March 25, 2013, with a prepackaged plan that reduced debt by $1.25 billion. Less than two months later on May 15, 2013, the 2013 Plan was confirmed and became effective on May 21, 2013. REVEL AC: Taps Ernst & Young LLP as Auditor and Tax Advisor ----------------------------------------------------------- Revel AC, Inc., et al., ask the Bankruptcy Court for permission to employ Ernst & Young LLP as auditor and tax advisor. EY LLP will, among other things: 1. provide audit services pursuant to the 2013 and 2014 financial statement audit engagement letters, well as the benefit plan audit engagement agreement; and 2. provide tax services pursuant to the certain master services agreement. Patrick T. Pruitt, a partner at EY LLP, tells the Court that the hourly rates of EY LLP's personnel to handle the audit are: Partner $500 Senior Manager $425 Manager $350 Senior $250 Staff $150 EY LLP will also charge the Debtors a fixed fee of $17,000 plus certain out-of-pocket expenses. EY LLP will charge the Debtors for tax services based on these hourly rates: Partner/Principal/Exec. Director $475 to $850 Senior Manager $350 to $575 Manager $275 to $450 Senior $225 to $350 Staff $160 to $225 According to Mr. Pruitt, the fees under the tax compliance are capped at $95,000, the fees under the New Jersey Manufacturing and Employment Tax Credit Statement of work are capped at $75,000 and the fees under the Federal Work Opportunity Tax Credit statement of work are capped at $40,000. Prepetition, EY LLP received $491,726 from the Debtors, including a retainer in the amount of $150,000. EY LLP is not owed any amount by the Debtors as of the Petition Date and continues to hold a retainer of $15,187 as of the Petition Date. Mr. Pruitt assures the Court that EY LLP is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Revel AC Revel AC, Inc. -- http://www.revelresorts.com/-- owns and operates Revel, a Las Vegas-style, beachfront entertainment resort and casino located on the Boardwalk in the south inlet of Atlantic City, New Jersey. Revel AC Inc. and five of its affiliates sought bankruptcy protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19, 2014, to pursue a quick sale of the assets. The Chapter 11 cases are assigned to Judge Gloria M. Burns. The Debtors' Chapter 11 cases are jointly consolidated for procedural purposes. Revel AC estimated assets ranging from $500 million to $1 billion, and the same amount of liabilities. White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors' Counsel, and Moelis & Company, LLC, is the investment banker. The Debtors' solicitation and claims agent is Alixpartners, LLP. The prepetition first lenders are represented by Cadwalader, Wickersham & Taft LLP. The prepetition second lien lenders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP. This is Revel AC's second trip to bankruptcy. The company first sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13- 16253) on March 25, 2013, with a prepackaged plan that reduced debt by $1.25 billion. Less than two months later on May 15, 2013, the 2013 Plan was confirmed and became effective on May 21, 2013. REVEL AC: Wants to Hire Brattle Group as Economic Consultant ------------------------------------------------------------ Revel AC, Inc., et al., ask the Bankruptcy Court to authorize and approve the employment of The Brattle Group, Inc., as its economic consultant nunc pro tunc to the Petition Date. Brattle is providing economic analyses and litigation support in connection with the Chapter 11 cases. In particular, Brattle will analyze the fair market value of services provided under that certain Second Amended and Restated Energy Sales Agreement by and between Debtor Revel Entertainment Group, LLC and ACR Energy Partners, LLC dated April 11, 2011, and related issues as requested by counsel to the Debtors. The Debtors will compensate Brattle at its standard hourly rates. The hourly rates for professionals who may be assigned to the engagement are: Full-Time Principals $400 to $800 Senior Consultants $350 to $600 Senior Associates $350 to $450 Associates $290 to $400 Research Assoc./ Consultants $255 to $360 Research Analysts $200 to $330 Administrative $80 to $95 Brattle anticipates that the staffing of the Debtors' engagement will consist primarily of Dean M. Murphy ($450/hour). Out-of-pocket expenses for activities as travel or communications will be billed at the actual amounts incurred. To the best of the Debtors' knowledge, Brattle is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Revel AC Revel AC, Inc. -- http://www.revelresorts.com/-- owns and operates Revel, a Las Vegas-style, beachfront entertainment resort and casino located on the Boardwalk in the south inlet of Atlantic City, New Jersey. Revel AC Inc. and five of its affiliates sought bankruptcy protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19, 2014, to pursue a quick sale of the assets. The Chapter 11 cases are assigned to Judge Gloria M. Burns. The Debtors' Chapter 11 cases are jointly consolidated for procedural purposes. Revel AC estimated assets ranging from $500 million to $1 billion, and the same amount of liabilities. White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors' Counsel, and Moelis & Company, LLC, is the investment banker. The Debtors' solicitation and claims agent is Alixpartners, LLP. The prepetition first lenders are represented by Cadwalader, Wickersham & Taft LLP. The prepetition second lien lenders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP. This is Revel AC's second trip to bankruptcy. The company first sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13- 16253) on March 25, 2013, with a prepackaged plan that reduced debt by $1.25 billion. Less than two months later on May 15, 2013, the 2013 Plan was confirmed and became effective on May 21, 2013. RICEBRAN TECHNOLOGIES: Shareholders Elected 7 Directors ------------------------------------------------------- Ricebran Technologies disclosed with the U.S. Securities and Exhange Commission that it held an annual meeting of shareholders on Aug. 19, 2014, at which the shareholders: (1) elected John Short, David Goldman, Baruch Halpern, Henk W. Hoogenkamp, Robert S. Kopriva, Robert C. Schweitzer, and Peter A. Woog to the Board of Directors; (2) approved the Company's 2014 Equity Incentive Plan; (3) approved, on a nonbinding advisory basis, the compensation of the Company's named executive officers; and (4) ratified the appointment of BDO USA, LLP, as the Company's independent registered public accounting firm for the for the year ending Dec. 31, 2014. The 2014 Equity Plan reserves 1,600,000 shares of common stock of the Company for issuance to current and prospective employees, consultants, current non-employee directors of the Company or other eligible participants under the Plan. About RiceBran Scottsdale, Ariz.-based RiceBran Technologies, a California corporation, is a human food ingredient and animal nutrition company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. RiceBran Technologies reported a net loss of $17.64 million on $35.05 million of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $11.13 million on $37.72 million of revenues for the year ended Dec. 31, 2012. As of June 30, 2014, the Company had $54.31 million in total assets, $32.13 million in total liabilities, $5.60 million in temporary equity and $16.57 million in total equity attributable to the Company's shareholders. BDO USA, LLP, in Phoenix, Arizona, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations resulting in an accumulated deficit of $219 million at Dec. 31, 2013. This factor among other things, raises substantial doubt about its ability to continue as a going concern. RUBLE HOLDINGS: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Ruble Holdings, LLC P O Box 7744 Gulfport, MS 39506 Case No.: 14-51336 Chapter 11 Petition Date: August 26, 2014 Court: United States Bankruptcy Court Southern District of Mississippi (Gulfport-6 Divisional Office) Judge: Hon. Katharine M. Samson Debtor's Counsel: Robert Gambrell, Esq. GAMBRELL & ASSOCIATES, PLLC 101 Ricky D Britt Blvd, Ste 3 Oxford, MS 38655 Tel: 662-281-8800 Fax: 662-202-1002 Email: rg@ms-bankruptcy.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by John H. Ruble, managing member. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. QTS INC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------ Debtor: QTS, Inc. 500 W. 140th St. #D Gardena, CA 90248 Case No.: 14-26361 Chapter 11 Petition Date: August 26, 2014 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Judge: Hon. Neil W. Bason Debtor's Counsel: Naveen Madala, Esq. PRIMA LAW GROUP, INC. 14730 Beach Blvd., Suite 207 La Mirada, CA 90638 Tel: 714-515-1626 Fax: 714-738-0400 Email: naveen@primalawgroupinc.com Total Assets: $359,995 Total Liabilities: $9.51 million The petition was signed by James Kang, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb14-26361.pdf S&S THERMO: Files for Chapter 7 Bankruptcy in Minnesota ------------------------------------------------------- S&S Thermo Dynamics Inc., filed for Chapter 7 bankruptcy (Bankr. D. Minn. Case No. 14-33322) in St. Paul, Minnesota, on Aug. 12, disclosing assets of $1,330,740 and liabilities of $1,034,706. The petition was signed by Shawn Wenner, president. SECUREALERT INC: Incurs $2.8 Million Net Loss in Third Quarter -------------------------------------------------------------- SecureAlert, Inc., reported a net loss attributable to common stockholders of $2.80 million on $3.15 million of total revenues for the three months ended June 30, 2014, compared to a net loss attributable to common stockholders of $4.14 million on $2.68 million of total revenues for the same period in 2013. The Company also reported a net loss attributable to common stockholders of $5.39 million on $8.26 million of total revenues for the nine months ended June 30, 2014, compared to a net loss attributable to common stockholders of $7.22 million on $13.08 million of total revenues for the same period last year. As of June 30, 2014, the Company had $50.71 million in total assets, $27.48 million in total liabilities and $23.22 million in total equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/CYZvpR The Company also filed an amendment to its Form 8-K report originally filed with the SEC on June 4, 2014, disclosing its acquisition of Emerge Monitoring, Inc., which is the direct owner of all of the issued and outstanding equity interests of Emerge Monitoring II, LLC, a wholly-owned subsidiary of Emerge, and a majority (65%) of the equity interest of Integrated Monitoring Systems LLC, a subsidiary of Emerge LLC. Subsequently on July 11, 2014 the Company purchased the remaining 35% of the equity interest of IMS from Future Technology Partners, LLC. Under the Original 8-K, the Company stated that (a) the financial information of Emerge Monitoring, Inc. and its subsidiaries, the notes related thereto and the related independent report of registered public accounting firm would be filed no later than 71 days following the date that the Original 8-K was required to be filed, and (b) pro forma financial information would be filed by amendment no later than 71 days following the date that the Original 8-K was required to be filed. The audited consolidated financial statements of Emerge Monitoring, Inc., as of Dec. 31, 2013 and 2012, and the unaudited condensed consolidated financial statements for the interim period, the notes related thereto and the related independent auditors' report of Eide Bailly, LLP, are available for free at: http://is.gd/AEZVBu http://is.gd/6lAvpq About SecureAlert Sandy, Utah-based SecureAlert, Inc., markets and deploys offender management programs, combining patented GPS tracking technologies, fulltime 24/7/365 intervention-based monitoring capabilities and case management services. SecureAlert incurred a net loss attributable to the Company's common stockholders of $18.95 million for the year ended Sept. 30, 2013, following a net loss attributable to the Company's common stockholders of $19.93 million for the fiscal year ended Sept. 30, 2012. Hansen, Barnett & Maxwell, P.C., in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2013. The independent auditors noted that the Company has incurred losses, negative cash flows from operating activities, notes payable in default and has an accumulated deficit. These conditions raise substantial doubt about its ability to continue as a going concern. SHOTWELL LANDFILL: Fails in Bid to Dismiss LSCG Appeal ------------------------------------------------------ Senior District Judge W. Earl Britt said Friday that the appeal by LSCG Fund 18, LLC from U.S. Bankruptcy Judge Stephani W. Humrickhouse's order denying the request of David A. Cook and LSCG for appointment of a Chapter 11 trustee in the Chapter 11 cases of Shotwell Landfill Inc., may proceed. In their request, LSCG and Cook argue that David W. King, Jr., being the sole director and president of the Debtors, is incompetent in managing the business affairs of the Debtors. After a final hearing on the motion on May 21, 2014, the Bankruptcy Court, on June 13, 2014, disagreed with LSCG and Cook, and denied the motion. On June 26, 2014, LSCG filed a notice of appeal to the United District Court for the Eastern District of North California. On appeal, the Debtors argue that the Bankruptcy Judge's order is interlocutory in nature and therefore not appealable now. The District Court concluded that the Bankruptcy Court's order is final and therefore, the District Court has jurisdiction over the appeal. A copy of the District Court's Aug. 22 Order is available at http://is.gd/T2IH7ffrom Leagle.com. On April 19, 2013, Shotwell filed a petition for relief under Chapter 11 of the Bankruptcy Code. Due to King's mismanagement and fraudulent activity, LSCG and Cook first filed a motion for the appointment of a trustee on October 31, 2013. In a "Renewed and Restated Emergency Motion" filed on May 1, 2014, LSCG and Cook allege that King has been using the funds of the Debtors for his personal benefit, and since January 1, 2011, King did not exercise proper control over the Debtors' finances and failed to maintain a separation of the Debtors and his personal debts. On November 1, 2013, the North Carolina Department of Environment and Natural Resources issued a third facility compliance report to Shotwell regarding an October 10, 2013 site inspection. In the report, NCDENR noted that Shotwell still failed to resolve previous violations. LSCG and Cook assert that the appointment of a Chapter 11 trustee will not be an unduly burdensome expense of the bankruptcy estate and that it will provide the creditors with the reassurance that a fair fiduciary is managing the Debtors. On May 20, 2014, the Debtors filed their objection to the motion to appoint a Chapter 11 trustee. The Debtors argue that they are still operating appropriately, and in compliance with their permit and applicable environmental regulations. Further, their financial transactions have been disclosed to the court and all the parties in interest. The notice from NCDENR is typical and is taken seriously by the Debtors, they added. Counsel for LSCG Fund 18, LLC are: Thomas W. Waldrep, Jr., Esq. Jennifer B. Lyday, Esq. WOMBLE CARLYLE SANDRIDGE & RICE, LLP One West Fourth Street Winston-Salem, NC 27101 Tel: (336) 747-6631 About Shotwell Landfill, Inc. Raleigh, North Carolina-based Shotwell Landfill, Inc., filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 13-02590) in Wilson on April 19, 2013. Blake P. Barnard, Esq., William P. Janvier, Esq., and Samantha Y. Moore, Esq., at the Janvier Law Firm, PLLC, in Raleigh, N.C., represent the Debtor as counsel. William W. Pollock, Esq., at Ragsdale Liggett PLLC, in Raleigh, N.C., represents the Debtor as special counsel. The Debtor, in its amended schedules, disclosed $23,235,236 in assets and $10,049,020 in liabilities. The Bankruptcy Administrator was unable to appoint an official committee of unsecured creditors in the Debtor's case. SHOTWELL LANDFILL: Gurkins Appointed as Restructuring Officer ------------------------------------------------------------- Shotwell Landfill seeks for the appointment of Doug Gurkins as restructuring officer. On April 19, 2013, debtor filed voluntary petition pursuant to Chapter 11 of the Bankruptcy Code. Due to the aggressive stance of LSCG Fund 18, LLC in forcing the debtor into liquidation. On October 31, 2013, LSCG filed an emergency motion to appoint a trustee. On May 1, 2014, LSCG filed a restated emergency motion to appoint a trustee. By reason of the series of acts made by LSCG, the Debtor has spent extraordinary amount of time, energy, and money addressing what the Debtor believes an unfounded allegations. Thus, in order to end the distraction caused by LSCG, the Debtor wishes to appoint a court restructuring officer to take charge of the Debtors' finances and to monitor the Debtor's environmental compliance. The Debtor wants to appoint Mr. Gurkins as the court restructuring officer and perform, among others, duties relative to the conduct of prosecuting the business of the debtor. The Debtor said its request is for the best interest of the creditors and the estate. The Debtor said Mr. Gurkins will be compensated at the rate of $125 per hour plus expenses, which will include travel time. A hearing was held on May 21, 2014 to determine the propriety of the motion of debtor and objection of LSCG. On June 13, 2014, Judge Stephani W. Humrickhouse, after considering the merits of the motion and after finding that the appointment of a court restructuring officer is to the best interest of the debtor, creditors and the estate, appointed Mr. Gurkins as court restructuring officer. About Shotwell Landfill, Inc. Raleigh, North Carolina-based Shotwell Landfill, Inc., filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 13-02590) in Wilson on April 19, 2013. Blake P. Barnard, Esq., William P. Janvier, Esq., and Samantha Y. Moore, Esq., at the Janvier Law Firm, PLLC, in Raleigh, N.C., represent the Debtor as counsel. William W. Pollock, Esq., at Ragsdale Liggett PLLC, in Raleigh, N.C., represents the Debtor as special counsel. The Debtor, in its amended schedules, disclosed $23,235,236 in assets and $10,049,020 in liabilities. The Bankruptcy Administrator was unable to appoint an official committee of unsecured creditors in the Debtor's case. SHOTWELL LANDFILL: Exclusivity Period Terminated ------------------------------------------------ Judge Stephani W. Humrickhouse has terminated the exclusivity/ acceptance period in which the affiliate debtors of Shotwell Landfill Inc., may file a chapter 11 plan and disclosure statement. On April 19, 2013, Shotwell Landfill filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. On April 25, 2013, the court ordered the Debtor to file plan and disclosure statement with the deadline set on or before July 18, 2013. On July 18, 2013, Shotwell filed a motion to extend time to file its plan and disclosure statement. The court subsequently extended the filing on or before August 19, 2013. On August 16, 2013, Shotwell filed its chapter 11 plan and disclosure statement. On September 12, 2013, Shotwell sought to extend the 180-day exclusivity period for at least sixty days. On December 2, 2013, the Debtor moved to extend the exclusivity period, which the Court extended for Shotwell to and including February 20, 2014. The related entity debtors, on December 6, 2013, filed a petition for relief under Chapter 11. The related entity debtors constitute essential parts of Shotwell's business operations. On January 22, 2014, the court ordered the consolidation of the bankruptcy cases of Shotwell and the related entity debtors. On February 3, 2014, the debtors filed their consolidated Chapter 11 plan and upon hearing on May 1, 2014, the court finds that the disclosure statement is inadequate. The court gave the debtors until May 16, 2014 to amend the disclosure statement. Shotwell's exclusivity period expired on February 20, 2014 and the related entity debtor's exclusivity period expired on June 4, 2014. LSCG Fund 18, LLC, seeks to terminate the exclusivity period of the related entity debtors, namely, Capitol Waste Transfer, LLC, Capitol Recycling, LLC, Debris Removal Partners, LLC, Shotwell Transfer Station II, Inc., King's Grading, Inc. LSCG said the business of the related entity debtors cannot operate without Shotwell. Further, it is unlikely that within the remaining time of the exclusivity period the related entity debtors can file a confirmable plan. In response to the motion to terminate, the Debtors assert that the exclusivity period should not be terminated due to the size and complexity of the case. The administratively consolidated cases consist of six inter-related entities with more than $15,000,000 in alleged secured debt and significant unsecured creditors. In addition, the Debtors believe that it is their right to file a plan until June 4, 2014. The Debtors also noted that they have been paying their bills as they become due so that there is a reasonable prospect for filing a viable plan before the court. On June 13, 2014, the court, in order to allow concurrent consideration of the plans, determined that the termination of exclusivity for the affiliates is necessary. About Shotwell Landfill, Inc. Raleigh, North Carolina-based Shotwell Landfill, Inc., filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 13-02590) in Wilson on April 19, 2013. Blake P. Barnard, Esq., William P. Janvier, Esq., and Samantha Y. Moore, Esq., at the Janvier Law Firm, PLLC, in Raleigh, N.C., represent the Debtor as counsel. William W. Pollock, Esq., at Ragsdale Liggett PLLC, in Raleigh, N.C., represents the Debtor as special counsel. The Debtor, in its amended schedules, disclosed $23,235,236 in assets and $10,049,020 in liabilities. The Bankruptcy Administrator was unable to appoint an official committee of unsecured creditors in the Debtor's case. SOUND SHORE: Disclosure Statement Hearing Set for Sept. 16 ---------------------------------------------------------- Sound Shore Medical Center of Westchester, et al., ask the U.S. Bankruptcy Court for the Southern District of New York to find that the disclosure statement explaining their Chapter 11 plan of liquidation contains "adequate information" as defined in Section 1125(b) of the Bankruptcy Code. The hearing to consider approval of the Disclosure Statement will be held on Sept. 16, 2014, at 10:00 a.m. Objections are due by Sept. 11. The Plan provides a means by which the proceeds of the liquidation of the Debtor's assets will be distributed. Holders of Allowed Unsecured Claims, including Allowed Medical Malpractice/Personal Injury Claims, will receive pro rata distributions of cash from the net proceeds. To recall, the closing of the sale of the Debtors' assets was concluded in November of 2013. Montefiore Medical Center and certain of its affiliates agreed to buy the Debtors' assets in the amount of $54 million, plus the appraised value of furniture, equipment and inventory acquired by the buyer. The majority of the liens were satisfied through the sale proceeds at the closing of the sale. Specifically, the Debtors paid approximately $42.2 million to satisfy their secured claims. The Debtors request that the Confirmation Hearing be scheduled for Nov. 3, 2014, at 10:00 a.m. (prevailing Eastern time). The Debtors also ask that the Court fix the last date for filing objections to confirmation of the Plan as seven business days before the Confirmation Hearing. A full-text copy of the Disclosure Statement dated Aug. 18, 2014, is available at http://bankrupt.com/misc/SoundShoreds0818.pdf About Sound Shore Medical Center Sound Shore Medical Center of Westchester, Mount Vernon Hospital Inc., Howe Avenue Nursing Home and related entities sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 13-22840) on May 29, 2013, in White Plains, New York. The Debtors were the largest "safety net" providers for Southern Westchester County in New York. Affiliated with New York Medical College, Sound Shore is a not-for-profit 242-bed, community based- teaching hospital located in New Rochelle, New York. Mountain Vernon Hospital is a voluntary, not-for-profit 176-bed hospital located in Mount Vernon, New York. Howe Avenue Nursing Home is a 150-bed, comprehensive facility. The Debtors tapped Burton S. Weston, Esq., at Garfunkel Wild, P.C. as counsel; Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors; and GCG Inc., as claims agent. Alston & Bird LLP represents the Official Committee of Unsecured Creditors. Deloitte Financial Advisory Services LLP serves as the Committee's as financial advisor. Sound Shore disclosed assets of $159.6 million and liabilities totaling $200 million. Liabilities include a $16.2 million revolving credit and a $5.8 million term loan with Midcap Financial LLC. There is $9 million in mortgages with Sun Life Assurance Co. of Canada (US) and $11.5 million owing to the New York State Dormitory Authority. Neubert, Pepe & Monteith, P.C., represents Daniel T. McMurray, the patient care ombudsman for Sound Shore. The Debtors filed for bankruptcy to sell their assets, including their hospital and nursing home operations, to the Montefiore health system. On Aug. 8, 2013, the Bankruptcy Court entered an order, as affirmed and ratified by a Supplemental Sale Order entered on Oct. 15, 2013, approving the sale to Montefiore New Rochelle Hospital, Inc., Schaffer Extended Care Center, Inc., Montefiore Mount Vernon Hospital, Inc. and certain related affiliates. In June 2013, Montefiore added $4.75 million to its purchase offer to speed up the sale. Montefiore raised its bid to $58.75 million plus furniture and equipment as part of a request for a private sale of the hospitals. On Nov. 6, 2013 at 12:01 a.m., the closing of the Sale occurred and the sale became effective. Montefiore is represented by Togut, Segal & Segal LLP. SOUTHERN PACIFIC RESOURCE: DBRS Puts 'CCC' Rating Under Review -------------------------------------------------------------- DBRS Inc. notes that Southern Pacific Resource Corp. (STP or the Company; rated CCC with ratings Under Review with Negative Implications) has announced the conclusion of its strategic review process. STP concluded that none of the proposals received were acceptable and that the Company will continue with the development of its existing assets. DBRS notes that STP currently has limited liquidity and minimal operating cash flows to support its operations ($34 million of estimated working capital as of June 30, 2014). Uses of liquidity in the near term include approximately $20 million of interest expense related to its Senior Secured Second Lien Notes (the Notes) and its First Lien Term Loan and capex aimed at increasing production rates at STP- McKay. The Company is expected to release its year-end financial statements by the end of September 2014, at which time DBRS will again review the ratings of STP and may resolve the Under Review with Negative Implications status. However, further material deterioration in liquidity in the immediate future may result in a negative rating action prior to the end of September 2014. STP's inability to raise additional liquidity may result in a negative rating action, given STP's ongoing operational challenges and limited access to the capital markets. On December 12, 2013, DBRS downgraded the Issuer Rating of STP to CCC and the ratings of the Notes to CCC (low). DBRS also placed all ratings Under Review with Negative Implications and changed the recovery rating of the Notes to RR5 from RR4. The rating action at the time reflected the material change in the Company's business risk profile following continued disappointing production results and the limited liquidity available to support operations. SWJ HOLDINGS: Connecticut Court Dismisses Chapter 11 Case --------------------------------------------------------- Judge Alan H.W. Shiff of the U.S. Bankruptcy Court for the District of Connecticut entered an order on Aug. 19, 2014, dismissing the bankruptcy case of SWJ Holdings, LLC. The move for case dismissal was brought by U.S. Trustee William K. Harrington. As previously reported in The Troubled Company Reporter, in asserting his Motion, the U.S. Trustee contended that SWJ Holdings, LLC, (i) failed to submit a list of their 20 largest unsecured creditors, corporate ownership statement, and statement of financial affairs; (ii) failed to appear at any of the four Section 341 meetings with the creditors; and (iii) failed to file Chapter 11 quarterly fees. In addition, the U.S. Trustee related, the Debtor's counsel Bruce Duke, Esq., has not filed any appearance before the District of Connecticut. About SWJ Holdings and SWJ Management SWJ Holdings, LLC, filed a Chapter 11 bankruptcy petition, Case No. 14-10376, on Feb. 25, 2014, in the U.S. Bankruptcy Court for the District of Delaware, estimating $10 million to $50 million in assets and less than $10 million in liabilities. On March 3, 2014, related entity SWJ Management, LLC, followed and filed for Chapter 11 protection, Case No. 14-10460, also in Delaware, estimating $10 million to $50 million in assets and $1 million to $10 million in liabilities. The Debtors' cases have since been transferred to the U.S. Bankruptcy Court for the District of Connecticut. Bruce Duke, Esq., in Mount Laurel, New Jersey, serves as counsel to the Debtors. The petitions were signed by Richard Annunziata as managing member. TECHPRECISION CORP: Amends Fiscal 2014 Form 10-K ------------------------------------------------ TechPrecision Corporation had amended its annual report on Form 10-K for the fiscal year ended March 31, 2014, to supplement Item 10 and amend and restate Items 11 through 14 to include the information intended to be incorporated therein by reference to the Company's definitive proxy statement with respect to its Annual Meeting of Shareholders for 2014. The remainder of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2014, filed with the Securities and Exchange Commission on July 15, 2014, remains unchanged. A full-text copy of the Form 10-K/A is available for free at http://is.gd/GM2tRJ About TechPrecision TechPrecision Corporation (OTC BB: TPCSE), through its wholly owned subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical Components Co., Ltd., globally manufactures large-scale, metal fabricated and machined precision components and equipment. TechPrecision reported a net loss of $7.09 million on $21.06 million of net sales for the year ended March 31, 2014, as compared with a net loss of $2.41 million on $32.47 million of net sales for the year ended March 31, 2013. The Company's balance sheet at March 31, 2014, showed $16.97 million in total assets, $13.44 million in total liabilities and $3.53 million in total stockholders' equity. KPMG LLP, in Philadelphia, Pennsylvania, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2013. The independent auditors noted that the Company was not in compliance with the fixed charges and interest coverage financial covenants under their credit facility, and the Bank has not agreed to waive the non-compliance with the covenants. Since the Company is in default, the Bank has the right to accelerate payment of the debt in full upon 60 days written notice. The Company has suffered recurring losses from operations, and the Company's liquidity may not be sufficient to meet its debt service requirements as they come due over the next twelve months. These circumstances raise substantial doubt about the Company's ability to continue as a going concern. TARGETED MEDICAL: Incurs $423,000 Net Loss in Second Quarter ------------------------------------------------------------ Targeted Medical Pharma, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $423,218 on $2.22 million of total revenue for the three months ended June 30, 2014, compared to a net loss of $7.84 million on $1.91 million of total revenue for the same period last year. Net loss for the six months ended June 30, 2014, was $1.39 million on $4.02 million of total revenue compared to a net loss of $8.11 million on $4.72 million of total revenue for the same period in 2013. As of June 30, 2014, the Company had $3.82 million in total assets, $11.75 million in total liabilities and a $7.93 million total stockholders' deficit. A full-text copy of the Form Quarterly Report is available for free at http://is.gd/ptsmAM About Targeted Medical Los Angeles, Calif.-based Targeted Medical Pharma, Inc., is a specialty pharmaceutical company that develops and commercializes nutrient- and pharmaceutical-based therapeutic systems. Targeted Medical reported a net loss of $9.33 million on $9.55 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss of $9.58 million on $7.29 million of total revenue in 2012. Marcum LLP, in Irvine, CA, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred significant net losses since its inception, and has an accumulated deficit of $23,022,407 as of Dec. 31, 2013, and incurred a net loss of $9,337,618 and negative cash flows from operations of $2,046,586 for the year ended Dec. 31, 2013. TELKONET INC: Posts $183,000 Net Income in Second Quarter --------------------------------------------------------- Telkonet, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income attributable to common stockholders of $183,122 on $4.35 million of total net revenue for the three months ended June 30, 2014, compared with a net loss attributable to common stockholders of $749,499 on $3.59 million of total net revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss attributable to common stockholders of $630,847 on $6.98 million of total net revenue compared to a net loss attributable to common stockholders of $1.33 million on $6.72 million of total net revenue for the same period during the prior year. The Company's balance sheet at June 30, 2014, showed $10.75 million in total assets, $5.60 million in total liabilities, $1.23 million in redeemable common stock, and $3.91 million of stockholders' equity. Commenting on the second quarter 2014 financial results, Jason Tienor, Telkonet's CEO stated, "We are encouraged with our positive performance which continues to track in accordance with our strategic growth plans. Increasing demand for our EcoSmart energy management platform drove overall growth in total revenues by 21% in the second quarter. Beyond our top line, we excelled in all key financial and operational performance measures. This progress is a clear indication of the heightened recognition for our exceptional cloud-based energy efficiency solutions and that our profitable growth strategies are being successfully implemented." Mr. Tienor continued, "Our prior year marketing and sales investments and sales traction in the first quarter of this year have driven our continued strength and pipeline activity. From a strategic perspective, we believe our team is executing on planned initiatives intended to broaden our markets and bolster our sales through expanded use of channel partners and deeper secondary market penetration. Both primary and secondary markets are favorably responding to our suite of products which offer a unique value proposition for efficient energy consumption, return on investment, and user comfort and convenience." A full-text copy of the Form 10-Q is available for free at: http://is.gd/e9QCO0 About Telkonet Milwaukee, Wisconsin-based Telkonet, Inc., is a clean technology company that develops and manufactures proprietary energy efficiency and smart grid networking technology. Telkonet reported a net loss attributable to common stockholders of $4.90 million on $13.88 million of total net revenues for the year ended Dec. 31, 2013, as compared with a net loss attributable to common stockholders of $507,558 on $12.75 million of total net revenues in 2012. BDO USA, LLP, in Milwaukee, Wisconsin, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has a history of losses from operations, a working capital deficiency, and an accumulated deficit of $121,948,847 that raise substantial doubt about its ability to continue as a going concern. TEXAS LEADERSHIP: S&P Lowers Rating on Revenue Bonds to 'BB' ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its long-term rating to 'BB' from 'BB+' on Tom Green County Cultural Education Facilities Finance Corp., Texas' tax-exempt series 2013Q (direct pay qualified school construction bonds, or QSCBs), tax-exempt series 2013A, and taxable 2013B education revenue bonds, both issued on behalf of the Texas Leadership Charter Academy (TLCA). The outlook is stable. "The 'BB' rating reflects our view of TLCA's rapid and prolific growth from a charter school of 632 students and one campus in the 2009-2010 school year to 1,737 students and three campuses for the 2014 school year, with another campus in Abilene, Texas, projected to open in fall 2015," said Standard & Poor's credit analyst Phillip Pena. "The rating also reflects the risks, operational and managerial, associated with such expansion, as well as a level of cash more commensurate with Standard & Poor's 'BB' medians," added Mr. Pena. The rating also reflects S&P's opinion of the inherent uncertainty associated with all charter schools, including the need to renew the charter during the life of the bonds; potential changes in per-pupil state, federal, and local funding; the competition for and maintenance of student enrollment at a level sufficient to support debt service; and the requirement of TLCA to meet liquidity and debt service covenants as of the end of the fiscal 2015 year. The series 2013 bond proceeds were used to purchase and renovate a new academic building on TLCA's new Midland campus, to renovate and improve existing facilities in San Angelo, and to cash fund a debt service reserve fund equal to maximum annual debt service. TRULAND SYSTEMS: Sept. 5 Bidding Deadline Set for Vehicles ---------------------------------------------------------- The liquidation of assets owned by bankrupt electrical contractor Truland Systems is under way with the first online auction of trucks, trailers, vans, bucket trucks and other vehicles. Online bidding began Aug. 23 for 37 of the vehicles, with more auctions planned in the coming weeks, according to Stephen Karbelk, of Auction Markets LLC and David Fiegel of Blackbird Asset Services, LLC, who are selling the assets for the estate. But first, the auction company faces the challenge of getting possession of more than half of the vehicles, according to Mr. Karbelk. "Truland had more than 250 active construction projects at the time of their filing, and approximately 300 vehicles were allocated to those projects and assigned to various offices and employees. With the employees now terminated, there was no provision for turning these vehicles in, so we have to locate them and prepare them for auction," said Mr. Karbelk. "We'll be selling vehicles in groups as we recover them and are able to get them ready for sale," he said. Mr. Karbelk said they are contacting former employees to locate and recover vehicles. "We don't anticipate major problems, but it's a significant administrative task with so many vehicles. We expect that everyone will cooperate. After all, the company's creditors include employees, contractors and others, so recovering and selling these vehicles will help get them paid," he said. Bidding on the first group of vehicles is scheduled to end on Friday, Sept. 5, at 3:00 p.m. Eastern (subject to a court hearing to approve this and future sales, which will be held three days earlier on September 2). Individuals seeking to bid may view the inventory, register and bid online at auctionmarkets.com. Vehicles in this first sale include vans, trucks and bucket trucks. "We have quite a few Chevy G3500 vans, several Silverado pickups, some Chevy Colorado pickups and various other pieces, most of which are 2008 models or newer," said Mr. Karbelk. "A bankruptcy like Truland is so unfortunate to those affected, and our group is focused on helping the estate recover as much as possible for creditors," he said. Prior to filing bankruptcy on July 23, the Reston-based Truland Group of companies was one of the largest electrical contractors in the United States. At the time of their filing, they were working on high-profile construction projects such as buildings for Marriott, NASA and George Washington University. Individuals seeking additional information on the auction sales may visit http://www.auctionmarkets.com/or e-mail info@auctionmarkets.com TRANS ENERGY: Reports $10.9 Million Net Loss in Second Quarter -------------------------------------------------------------- Trans Energy, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $10.95 million on $8.45 million of total operating revenues for the three months ended June 30, 2014, compared to a net loss of $2.61 million on $4.67 million of total operating revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $12.47 million on $18.23 million of total operating revenues compared to a net loss of $5.31 million on $8.28 million of total operating revenues for the six months ended June 30, 2013. The Company's balance sheet at June 30, 2014, showed $93.78 million in total assets, $113.79 million in total liabilities, and a $20 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/mvloio About Trans Energy St. Mary's, West Virginia-based Trans Energy, Inc. (OTC BB: TENG) -- http://www.transenergyinc.com/-- is an independent energy company engaged in the acquisition, exploration, development, exploitation and production of oil and natural gas. Its operations are presently focused in the State of West Virginia. Trans Energy reported a net loss of $17.7 million in 2013 following a net loss of $21.2 million in 2012. TRANS-LUX CORP: Had $2.5MM Q2 Loss, Doubts Going Concern Status --------------------------------------------------------------- Trans-Lux Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $2.50 million on $5.90 million of total revenues for the three months ended June 30, 2014, compared with a net loss of $723,000 on $4.78 million of total revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $2.66 million on $12.36 million of total revenues compared to a net loss of $1.02 million on $8.88 million of total revenues for the same period last year. As of June 30, 2014, the Company had $18.54 million in total assets, $16.47 million in total liabilities and $2.07 million in total stockholders' equity. "In light of the unprecedented instability in the financial markets and the severe slowdown in the overall economy, we do not have adequate liquidity, including access to the debt and equity capital markets, to operate our business in the manner in which we have historically operated. As a result, our short-term business focus has been to preserve our liquidity position. Unless we are successful in obtaining additional liquidity, we believe that we will not have sufficient cash and liquid assets to fund normal operations for the next 12 months," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/PZlOvz About Trans-Lux Corporation Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a designer and manufacturer of digital signage display solutions for the financial, sports and entertainment, gaming and leasing markets. Trans-Lux Corporation reported a net loss of $1.86 million on $20.90 million of total revenues for the year ended Dec. 31, 2013, as compared with a net loss of $1.36 million on $23.02 million of total revenues in 2012. BDO USA, LLP, in Melville, NY, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has a significant working capital deficiency that raise substantial doubt about its ability to continue as a going concern. Further, the Company is in default of the indenture agreements governing its outstanding 9 1/2 Subordinated debentures which was due in 2012 and its 8 1/4 percent Limited convertible senior subordinated notes which was due in 2012 so that the trustees or holders of 25 percent of the outstanding Debentures and Notes have the right to demand payment immediately. Additionally, the Company has a significant amount due to their pension plan over the next 12 months. UNITED AMERICAN: Delays Second Quarter Form 10-Q ------------------------------------------------ United American Healthcare Corp. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b- 25 with respect to its quarterly report on Form 10-Q for the period ended June 30, 2014. The Company said it is not in a position to file the Quarterly Report with the SEC because the Company cannot complete the Form 10-Q in a timely manner without unreasonable effort or expense. Based on work completed to date, the Company expects to file the Form 10-Q on or before Aug. 19, 2014. About United American Chicago-based United American Healthcare, through its wholly owned subsidiary Pulse Systems, LLC, provides contract manufacturing services to the medical device industry, with a focus on precision laser-cutting capabilities and the processing of thin-wall tubular metal components, sub-assemblies and implants, primarily in the cardiovascular market. The Company disclosed a net loss of $769,000 on $3.23 million of contract manufacturing revenue for the six months ended Dec. 31, 2013, as compared with net income of $82,000 on $3.83 million of contract manufacturing revenue for the same period in 2012. Bravos & Associates, CPA's, in Bloomingdale, Illinois, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2013. The independent auditors noted that the Company's liabilities and working capital raise substantial doubt about its ability to continue as a going concern. The Company's balance sheet at March 31, 2014, showed $14.95 million in total assets, $13.11 million in total liabilities and $1.84 million in total shareholders' equity. VERMILLION INC: Incurs $5.6 Million Net Loss in Second Quarter -------------------------------------------------------------- Vermillion, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $5.55 million on $324,000 of total revenue for the three months ended June 30, 2014, compared to a net loss of $2.11 million on $323,000 of total revenue for the same period last year. Net loss for the six months ended June 30, 2014, was $9.54 million on $629,000 of total revenue compared to a net loss of $4.68 million on $651,000 of total revenue for the same period in 2013. As of June 30, 2014, the Company had $23.51 million in total assets, $5.76 million in total liabilities and $17.74 million in total stockholders' equity. "There can be no assurance that the Company will achieve or sustain profitability or positive cash flow from operations. However, management believes that the current working capital position will be sufficient to meet the Company's working capital needs for at least the next 12 months. Management expects cash from OVA1 sales to be the Company's only material, recurring source of cash in 2014," the Company said in the Report. "In Q2, we reached major milestones on our OVA1 commercialization strategy," said James LaFrance, Vermillion's chairman, president and CEO. "We opened ASPiRA LABS, our own national CLIA certified clinical laboratory for diagnostic processing based near Austin, Texas. "We also significantly expanded our field sales team in April of this year. We typically see positive results three to six months after adding sales staff. Thus, we expect to see improved test volumes in the second half of the year." A full-text copy of the Form 10-Q is available for free at: http://is.gd/FmqZQS About Vermillion Vermillion, Inc., is dedicated to the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients. Vermillion, along with its prestigious scientific collaborators, has diagnostic programs in oncology, hematology, cardiology and women's health. The Company filed for Chapter 11 on March 30, 2009 (Bankr. D. Del. Case No. 09-11091). Vermillion's legal advisor in connection with its successful reorganization efforts wass Paul, Hastings, Janofsky & Walker LLP. Vermillion emerged from bankruptcy in January 2010. The Plan called for the Company to pay all claims in full and equity holders to retain control of the Company. Vermillion incurred a net loss of $8.81 million in 2013, a net loss of $7.14 million in 2012 and a net loss of $17.79 million in 2011. VERTICAL COMPUTER: Delays Form 10-Q for Second Quarter ------------------------------------------------------ Vertical Computer Systems, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b- 25 with respect to its quarterly report on Form 10-Q for period ended June 30, 2014. The Company said it has experienced delays in resolving issues material to the Company's financial statements. Accordingly, the Company was unable to file its Form 10-Q on or before the prescribed filing date. The Company expects to file the Form 10-Q within five days after the prescribed filing date. The Company disclosed that revenue increased by approximately $1.5 million and $2.2 million over prior year for the three and six months ending June 30, 2014, respectively. The increase in revenue is primarily due to licensing of the Company's SiteFlashTM technology. Total operating expenses increased approximately $1.1 million and $1.7 million over prior year for the three and six months ending June 30, 2014, respectively. The increase in total operating expenses is primarily due to legal expenses, royalties and taxes related to licensing of our SiteFlashTM technology. About Vertical Computer Richardson, Tex.-based Vertical Computer Systems, Inc., is a multinational provider of Internet core technologies, application software, and software services through its distribution network with operations or sales in the United States, Canada and Brazil. Vertical Computer reported a net loss applicable to common stockholders of $3.08 million in 2013 following a net loss applicable to common stockholders of $2.07 million in 2012. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company suffered net losses and has a working capital deficiency, which raises substantial doubt about its ability to continue as a going concern. VUZIX CORP: Posts $239,000 Net Income in Second Quarter ------------------------------------------------------- Vuzix Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $239,110 on $723,258 of total sales for the three months ended June 30, 2014, compared to a net loss of $1.65 million on $700,195 of total sales for the same period in 2013. Net income for the six months ended June 30, 2014, was $1.75 million on $1.52 million of total sales compared with a net loss of $2.59 million on $1.43 million of total sales for the same period last year. The Company's balance sheet at June 30, 2014, showed $4.84 million in total assets, $13.31 million in total liabilities, and a $8.47 million stockholders' deficit. "Our independent auditors issued a going concern paragraph in their report for the years ended December 31, 2013 and 2012. The accompanying condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business. These condensed consolidated financial statements do not include any adjustments to the specific amounts and classifications of assets and liabilities, which might be necessary should we be unable to continue as a going concern. As a result of our current level of funding and ongoing losses from operations, substantial doubt exists about our ability to continue as a going concern," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/PfJXf4 About Vuzix Corporation Vuzix -- http://www.vuzix.com-- is a supplier of Video Eyewear products in the consumer, commercial and entertainment markets. The Company's products, personal display devices that offer users a portable high quality viewing experience, provide solutions for mobility, wearable displays and virtual and augmented reality. Vuzix holds 33 patents and 15 additional patents pending and numerous IP licenses in the Video Eyewear field. Founded in 1997, Vuzix is a public company with offices in Rochester, NY, Oxford, UK and Tokyo, Japan. WEB.COM GROUP: Moody's Hikes 1st Lien Debt Rating to 'Ba1' ---------------------------------------------------------- Moody's Investors Service upgraded Web.com Group Inc's first lien senior secured credit facility ratings to Ba2 from Ba3 and maintained the company's positive ratings outlook. Additionally, Moody's affirmed the company's B1 corporate family rating ("CFR"), B1-PD probability of default rating ("PDR") and SGL-2 speculative grade liquidity rating. The company's first lien senior secured credit facility consists of a $70 million revolving credit facility due 2016 and a $305 million (outstanding) term loan due 2017. The upgrade of the instrument level ratings is in accordance with Moody's Loss Given Default ("LGD") methodology and was prompted by a shift in the mix of secured and unsecured debt in Web.com's capital structure. The first lien senior secured debt ratings upgrade reflects improved recovery prospects for the first lien debt as it represents a smaller percentage of the company's overall capital structure relative to Q3 2013 (when the $259 million unrated convertible notes were issued). Following the convertible notes transaction and during the 9 month period ended June 30, 2014 the company repaid approximately $74 million (net) of debt under the first lien secured credit facility. The rating upgrade incorporates the improved support provided by the junior convertible notes to the lower amount of outstanding first lien debt. The positive outlook reflects Moody's expectations that Web.com's free cash flow will remain relatively strong despite the company's recent downward revision of fiscal year 2014 revenue and free cash flow guidance. The positive outlook anticipates further improvement in the company's credit metrics through continued application of free cash flow proceeds towards debt reduction. The affirmation of the B1 CFR reflects year over year improvement in the company's operating and financial results, which along with the debt repayments, have resulted in a stronger credit profile. Issuer: Web.com Group, inc. Ratings affirmed: Corporate Family Rating at B1 Probability of Default Rating at B1-PD Speculative Grade Liquidity Rating at SGL-2 Ratings upgraded: $70 million 1st Lien Senior Secured Revolving Credit Facility due 2016 to Ba2 (LGD2) from Ba3 (LGD3) $305 million 1st Lien Senior Secured Term Loan due 2017 to Ba2 (LGD2) from Ba3 (LGD3) The rating outlook is positive. Ratings Rationale Web.com's B1 CFR reflects the company's strong competitive position as a provider of domain name registration and value added internet services to small and medium businesses, its enhanced scale and customer base (built through consolidation over the past few years), as well as its strong free cash flow relative to debt. The rating is further supported by the company's demonstrated ability and track record of applying free cash flow to reduce debt following leveraging events as well as management's good business execution, evidenced by stable subscriber retention rates and sequential increases in average revenue per user ("ARPU") and subscribers since the Network Solutions acquisition in Q4 2011. The company's credit profile benefits from good organic revenue growth prospects resulting from management's strategy of up- selling and cross-selling higher priced value added services to its customer segments. However, the B1 rating remains constrained by the company's high financial leverage (about 4.0 times as of June 30, 2014 on a Moody's adjusted basis) in the context of a still moderate revenue base and a highly competitive market for providing web services to small and medium size businesses, which is characterized by low barriers to entry, modest pricing power for basic products, and low attach rates for add-on services that result in low ARPU. The B1 rating also incorporates Web.com's track record of acquisitive growth and high financial risk tolerance to complete acquisitions. The SGL-2 speculative grade liquidity ("SGL") rating reflects Web.com's good free cash flow generation capabilities and access to borrowings under its $70 million revolving credit facility. Moody's could upgrade Web.com's ratings if the company generates sustained growth in revenue and cash flow from operations and demonstrates a commitment to conservative financial policies. Web.com's ratings could be raised if Moody's believes that the company will be able to maintain EBITDA margins in the high 20% range (including Moody's standard adjustments and fair value adjustments to deferred revenue) and sustain financial leverage of less than 3.5 times total debt to EBITDA (Moody's adjusted; including fair value adjustments to deferred revenue), after incorporating the potential for acquisitions. Conversely, Moody's could change the positive outlook to stable or downgrade Web.com's ratings if revenue growth decelerates materially, business execution weakens or increased competitive challenges cause leverage to exceed 4.5 times (Moody's adjusted) and/or free cash flow deteriorates to the low single digit percentages of total debt. Additionally, changes in financial policies that result in weakening of the balance sheet could trigger a downgrade. The principal methodology used in this rating was Global Business & Consumer Service Industry Rating Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Jacksonville, FL, Web.com Group, Inc. ("Web.com") provides internet domain name registration as well as value added internet services such as building custom websites and online marketing to small and medium size businesses ("SMBs"). WKI HOLDING: S&P Affirms 'B' CCR & Revises Outlook to Negative -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its corporate credit rating on Rosemont, Ill.-based WKI Holding Co. Inc. (World Kitchen) at 'B', and revised the outlook to negative from stable. At the same time, S&P affirmed its issue-level rating on the $342 million senior secured facility, which includes a $90 million revolving credit facility due 2018 and a $252 million term loan due 2019, at 'B'. The recovery rating remains '3', indicating S&P's expectation for meaningful (50%-70%) recovery of principal in the event of default. "The negative outlook reflects our expectation that covenant cushion could remain well below 15% in the second and third fiscal quarters of this year and next if adjusted EBITDA does not improve from current levels," said Standard & Poor's credit analyst Stephanie Harter. The ratings on World Kitchen reflect, in part, Standard & Poor's estimate that covenant cushion on the total leverage covenant is less than 10% for the 12 months ended June 29, 2014. S&P also estimates adjusted total debt to EBITDA of about 5x, which is slightly improved from the prior-year period. Similarly, the ratio of funds from operations (FFO) to total debt remained near 11%. These factors support S&P's view of the company's financial risk profile as "highly leveraged." S&P expects the company to improve its credit metrics through a combination of payments on the revolving credit facility before fiscal year-end 2014 and improved adjusted EBITDA margin. However, the next scheduled covenant step-down in Dec. 2014 could result in covenant cushion below 15% in the second and third quarters of fiscal 2015 if performance does not improve as expected. Moreover, the company faces another covenant step-down in Dec. 2015. World Kitchen, with approximately $630 million of total sales for the 12 months ended June 29, 2014, is one of the leading companies in the highly fragmented kitchenware industry, particularly in the niche dishware, glassware, and bakeware categories. World Kitchen sells products under brands such as Corelle, Pyrex, Corningware, Snapware, and Baker's Secret. Corelle and Pyrex account for about 60% of 2013 sales. The company competes against segments of larger players (such as Newell Rubbermaid Inc. and KitchenAid [a division of Whirlpool Corp.]) and it is S&P's opinion that barriers to market entry are low in some non-glassware categories, which could lead to ongoing pressure from private label entrants. S&P believes the company's narrow product focus leaves it vulnerable to changes in consumer tastes as well as the overall economy's performance. These factors support S&P's business risk assessment of "vulnerable." However, S&P believes that World Kitchen's products have exhibited strong demand, especially in the company's fiscal fourth quarter. WORLD SURVEILLANCE: Delays Second Quarter Form 10-Q for Review -------------------------------------------------------------- World Surveillance Group Inc. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the period ended June 30, 2014. The Company requires additional time for the auditors to complete their review of the Company's financial statements. About World Surveillance World Surveillance Group Inc. designs, develops, markets and sells autonomous lighter-than-air (LTA) unmanned aerial vehicles (UAVs) capable of carrying payloads that provide persistent security and/or wireless communication from air to ground solutions at low, mid and high altitudes. The Company's airships, when integrated with electronics systems and other high technology payloads, are designed for use by government-related and commercial entities that require real-time intelligence, surveillance and reconnaissance or communications support for military, homeland defense, border control, drug interdiction, natural disaster relief and maritime missions. The Company is headquartered at the Kennedy Space Center, in Florida. World Surveillance reported a net loss of $3.41 million on $558,574 of net revenues for the year ended Dec. 31, 2013, as compared with a net loss of $3.36 million on $272,201 of net revenues for the year ended Dec. 31, 2012. The Company's balance sheet at March 31, 2014, showed $3.49 million in total assets, $17.33 million in total liabilities, all current, and a $13.84 million total stockholders' deficit. Rosen Seymour Shapss Martin & Company LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has experienced significant losses and negative cash flows, resulting in decreased capital and increased accumulated deficits. These conditions raise substantial doubt about its ability to continue as a going concern. Bankruptcy Warning "Our indebtedness at December 31, 2013 was $16,958,374. A portion of such indebtedness reflects judicial judgments against us that could result in liens being placed on our bank accounts or assets. We are continuing to review our ability to reduce this debt level due to the age and/or settlement of certain payables but we may not be able to do so. This level of indebtedness could, among other things: * make it difficult for us to make payments on this debt and other obligations; * make it difficult for us to obtain future financing; * require us to redirect significant amounts of cash from operations to servicing the debt; * require us to take measures such as the reduction in scale of our operations that might hurt our future performance in order to satisfy our debt obligations; and * make us more vulnerable to bankruptcy or an unwanted acquisition on terms unsatisfactory to us," the Company said in the Annual Report for the year ended Dec. 31, 2013. WORLEY BROTHERS: Balks at Bid to Appoint Independent Examiner ------------------------------------------------------------- Lisa Gordon, writing for American Metal Market's AMM.com, reports that metal recycler Worley Brothers Scrap Iron & Metal Inc., is objecting to a creditor's request to appoint an independent examiner. Memphis, Tenn.-based Worley Brothers Scrap Iron & Metal, Inc. -- aw B&B Recyled Auto Parts; aw Worley Enterprises; aw Complete Auto Parts; aw Southside Auto Parts; and aw Worley Auto Parts -- filed for Chapter 11 bankruptcy (Bankr. W.D. Tenn. Case No. 14-26318) on June 20, 2014. Bankruptcy Judge Paulette J. Delk presides over the case. Steven N. Douglass, Esq., at Harris Shelton Hanover Walsh, PLLC, serves as counsel to the Debtor. In its petition, the Debtor estimated under $50,000 in assets and liabilities of $1 million to $10 million. The petition was signed by Johnny Worley, authorized individual. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/tnwb14-26318.pdf ZOGENIX INC: Armistice Capital Holds 5.9% Equity Stake ------------------------------------------------------ In a Schedule 13G filed with the U.S. Securities and Exchange Commission, Armistice Capital, LLC, Armistice Capital Master Fund Ltd., and Steven Boyd disclosed that as of Aug. 15, 2014, they beneficially owned 8,300,000 shares of common stock of Zogenix, Inc., representing 5.9 percent of the shares outstanding. A copy of the regulatory filing is available at http://is.gd/rCqOPa About Zogenix Inc. Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. Zogenix reported a net loss of $80.85 million in 2013, as compared with a net loss of $47.38 million in 2012. The Company's balance sheet at June 30, 2014, the Company had $133.29 million in total assets, $64.98 million in total liabilities and $68.31 million in total stockholders' equity. Ernst & Young LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's recurring losses from operations and lack of sufficient working capital raise substantial doubt about its ability to continue as a going concern. * Goldman, Deutsche Escape $2.1-Bil. Guaranty Bank MBS Suit ----------------------------------------------------------- Law360 reported that Goldman Sachs & Co., Deutsche Bank Securities Inc. and several other banks dodged the remnants of a lawsuit brought in Texas federal court by the Federal Deposit Insurance Corp. on behalf of defunct Guaranty Bank, which alleged it paid $2.1 billion to acquire 20 shoddy mortgage-backed securities from the banks. According to the report, in two separate cases, District Judge Sam Sparks granted summary judgment in favor of Goldman Sachs, Deutsche Bank, Merrill Lynch Pierce Fenner & Smith Inc. and RBS Securities Inc. The case is Federal Deposit Insurance Corporation as receiver for Guaranty Bank v. Merrill Lynch Pierce Fenner & Smith, Inc. et al., Case No. 1:14-cv-00126 (W.D. Tex.). * Otterbourg's Cyganowski Named to GM Ignition Switch Committee --------------------------------------------------------------- Otterbourg P.C. on Aug. 25 disclosed that U.S District Judge Jesse Furman has appointed Otterbourg's Melanie Cyganowski to the plaintiffs' Executive Committee that will assist lead counsel in key aspects of the General Motors ignition switch litigation pending in the U.S. District Court for the Southern District of New York. Judge Furman, who is overseeing more than 100 cases against G.M., appointed Ms. Cyganowski on Aug. 15 among other leadership appointments related to the litigation. "I am certain that our firm will add substantial value to the plaintiffs' litigation team, which will benefit from Melanie's expertise and wise counsel just as our clients do every day." Ms. Cyganowski chairs Otterbourg's Insolvency Litigation Services, ADR and Fiduciary Appointments Practice. She formerly served as the chief bankruptcy judge for the Eastern District of New York. "We are pleased that Melanie has such an exceptional reputation in the bankruptcy field that she received this appointment," said Daniel Wallen, Otterbourg's chairman. "I am certain that our firm will add substantial value to the plaintiffs' litigation team, which will benefit from Melanie's expertise and wise counsel just as our clients do every day." The Executive Committee will work with lead plaintiffs' counsel and liaison counsel on various substantive aspects of the litigation, including bankruptcy law, as well as case management issues to ensure that the massive and complex litigation proceeds efficiently through the judicial process. At Otterbourg, Ms. Cyganowski serves as a mediator, arbitrator, commercial and bankruptcy law litigator and expert witness. She also serves as a fiduciary (examiner, trustee, receiver, referee, monitor or special master) in bankruptcy and civil litigation. About Otterbourg P.C. Otterbourg P.C. offers clients a unique combination of legal insight and practical solutions and is known for its integrity, stability and business knowledge. The firm regularly represents clients in matters of national and international scope, including institutional lenders and creditors such as banks, asset-based lenders, hedge funds and private equity firms. The firm's practice includes domestic and cross-border financings, litigation and alternative dispute resolutions, mergers and acquisitions and other corporate transactions, real estate, restructuring and bankruptcy proceedings, and trusts and estates. * Credit Raters to Face New Conflict Curbs Under SEC Rules ---------------------------------------------------------- Dave Michaels, writing for Bloomberg News, reported that credit- rating firms, whose lapses played a central role in the 2008 financial crisis, will face new restrictions on conflicts of interest under rules set to be adopted by the U.S. Securities and Exchange Commission. According to the report, firms including Moody's Investors Service and McGraw Hill Financial Inc.'s Standard & Poor's would have to ensure they follow internal methodologies when grading debt and revising ratings under rules commissioners will vote on at a meeting in Washington. They will also have to disclose more about the accuracy of ratings, including a common way of presenting rates of defaults and downgrades for bonds backed by loans for homes and commercial buildings, the report related. * Fed Urged to Ensure Emergency Lending Rules Bar Bailouts ---------------------------------------------------------- Cheyenne Hopkins, writing for Bloomberg News, reported that a bipartisan group of lawmakers sent a letter asking the Federal Reserve to clarify its emergency lending authority rules to foreclose the possibility of "backdoor bailouts" in a future financial crisis. According to the report, the central bank's proposed rules for emergency lending place "no meaningful restrictions" on its lending powers in a time of crisis, inviting the prospect of assistance similar to that provided five years ago, 15 Senate and House members wrote in the letter to Federal Reserve Chair Janet Yellen. * Recent Small-Dollar & Individual Chapter 11 Filings ----------------------------------------------------- In re The Oliver Family Trust UDT June 3, 1992 Bankr. C.D. Cal. Case No. 14-11797 Chapter 11 Petition filed August 19, 2014 See http://bankrupt.com/misc/cacb14-11797.pdf Filed Pro Se In re Leslie B. Rand-Luby Bankr. C.D. Cal. Case No. 14-15071 Chapter 11 Petition filed August 19, 2014 In re Frydoun Sheikhpour Bankr. C.D. Cal. Case No. 14-25916 Chapter 11 Petition filed August 19, 2014 In re Helen Kotinopoulos Bankr. C.D. Cal. Case No. 14-25963 Chapter 11 Petition filed August 19, 2014 In re Ernest Glynn Roden and Helen Folden Roden Bankr. C.D. Cal. Case No. 14-31515 Chapter 11 Petition filed August 19, 2014 In re D.A.Y. Investments, LLC Bankr. N.D. Ill. Case No. 14-30508 Chapter 11 Petition filed August 19, 2014 See http://bankrupt.com/misc/ilnb14-30508.pdf Filed Pro Se In re Andy's Truck And Equipment Company Bankr. N.D. Ill. Case No. 14-30509 Chapter 11 Petition filed August 19, 2014 See http://bankrupt.com/misc/ilnb14-30509.pdf Filed Pro Se In re Gold Coast Rand Development Company Bankr. N.D. Ill. Case No. 14-30514 Chapter 11 Petition filed August 19, 2014 See http://bankrupt.com/misc/ilnb14-30514.pdf Filed Pro Se In re 840 Broadway, LLC Bankr. N.D. Ill. Case No. 14-30515 Chapter 11 Petition filed August 19, 2014 Filed Pro Se In re Surplus Management Systems, LLC Bankr. N.D. Ill. Case No. 14-30516 Chapter 11 Petition filed August 19, 2014 Filed Pro Se In re Gary II, LLC Bankr. N.D. Ill. Case No. 14-30518 Chapter 11 Petition filed August 19, 2014 See http://bankrupt.com/misc/ilnb14-30518.pdf Filed Pro Se In re Andrew L. Young Bankr. N.D. Ill. Case No. 14-30522 Chapter 11 Petition filed August 19, 2014 In re Speed Technologies, LLC Bankr. D. Nev. Case No. 14-51413 Chapter 11 Petition filed August 19, 2014 See http://bankrupt.com/misc/nvb14-51413.pdf represented by: Michael Lehners, Esq. E-mail: michaellehners@yahoo.com In re Arthur Kill Realty, LLC Bankr. E.D.N.Y. Case No. 14-44236 Chapter 11 Petition filed August 19, 2014 See http://bankrupt.com/misc/nyeb14-44236.pdf represented by: Michael F. Kanzer, Esq. MICHAEL F KANZER & ASSOCIATES, P.C. E-mail: kanzerlaw@yahoo.com In re James Harrington Bost, Jr. Bankr. E.D.N.C. Case No. 14-04769 Chapter 11 Petition filed August 19, 2014 In re Allegheny Woodworks, LLC Bankr. S.D. W.Va. Case No. 14-50206 Chapter 11 Petition filed August 19, 2014 See http://bankrupt.com/misc/wvsb14-50206.pdf represented by: George L. Lemon, Esq. LEMON LAW OFFICE E-mail: georgelemon@frontier.com In re Rick Labistre and Josephine Labistre Bankr. D. Ariz. Case No. 14-12868 Chapter 11 Petition filed August 20, 2014 In re BKG, LLC Bankr. W.D. Ark. Case No. 14-72473 Chapter 11 Petition filed August 20, 2014 See http://bankrupt.com/misc/arwb14-72473.pdf represented by: Carl W. Hopkins, Esq. HOPKINS & HOLMES, PLLC E-mail: cwhopkinslaw@msn.com In re Walter Darrel Haggard and Sandra Kay Haggard Bankr. D. Ariz. Case No. 14-12885 Chapter 11 Petition filed August 20, 2014 In re Gene E. Schwartz Bankr. C.D. Cal. Case No. 14-26005 Chapter 11 Petition filed August 20, 2014 In re Lidia Enelda Recinos Bankr. C.D. Cal. Case No. 14-26046 Chapter 11 Petition filed August 20, 2014 In re Seafood Peddler of San Rafael, Inc. aka Seafood Peddler Bankr. N.D. Cal. Case No. 14-31219 Chapter 11 Petition filed August 20, 2014 See http://bankrupt.com/misc/canb14-31219.pdf Filed Pro Se In re Srivastava Real Estate Holding, Inc. Bankr. S.D. Ind. Case No. 14-07802 Chapter 11 Petition filed August 20, 2014 See http://bankrupt.com/misc/insb14-07802.pdf represented by: KC Cohen, Esq. KC COHEN, LAWYER, P.C. E-mail: kc@esoft-legal.com In re Mohammed I. Khan Bankr. D. Md. Case No. 14-23066 Chapter 11 Petition filed August 20, 2014 In re Mark Moody and Sherrill Moody Bankr. D. Nev. Case No. 15622 Chapter 11 Petition filed August 20, 2014 In re T-Len, Inc. Bankr. D.N.J. Case No. 14-27167 Chapter 11 Petition filed August 20, 2014 See http://bankrupt.com/misc/njb14-27167.pdf represented by: David A. Kasen, Esq. KASEN & KASEN E-mail: dkasen@kasenlaw.com In re Blue Wave 1, LLC Bankr. D.N.J. Case No. 14-27184 Chapter 11 Petition filed August 20, 2014 See http://bankrupt.com/misc/njb14-27184.pdf represented by: Jules L. Rossi , Esq. LAW OFFICE OF JULES L. ROSSI E-mail: jlrbk423@aol.com In re Michael A. Quatela Bankr. W.D.N.Y. Case No. 21048 Chapter 11 Petition filed August 20, 2014 In re Ram Production Services, Inc. Bankr. S.D. Tex. Case No. 14-50172 Chapter 11 Petition filed August 20, 2014 See http://bankrupt.com/misc/txsb14-50172.pdf represented by: Argentina Cronfel-Meurer, Esq. CRONFEL-MEURER, P.C. E-mail: cronfellaw@sbcglobal.net In re Timothy Lee Hopkins Bankr. S.D. W.Va. Case No. 14-20441 Chapter 11 Petition filed August 20, 2014 In re TLH Investments, LLC Bankr. S.D. W.Va. Case No. 14-20442 Chapter 11 Petition filed August 20, 2014 See http://bankrupt.com/misc/wvsb14-20442.pdf represented by: Andrew S. Nason, Esq. PEPPER & NASON E-mail: andyn@peppernason.com In re Stephanie Marie Bunt Bankr. C.D. Cal. Case No. 14-26139 Chapter 11 Petition filed August 21, 2014 In re Bualai Lai White Bankr. E.D. Cal. Case No. 14-28468 Chapter 11 Petition filed August 21, 2014 In re American Rental Properties, LLC Bankr. M.D. Fla. Case No. 14-09754 Chapter 11 Petition filed August 21, 2014 See http://bankrupt.com/misc/flmb14-09754.pdf represented by: Leon A. Williamson, Jr., Esq. LEON A. WILLIAMSON, JR., P.A. E-mail: leon@lwilliamsonlaw.com In re Meant, LLC dba Meant Spa and Lounge Bankr. N.D. Ga. Case No. 14-66295 Chapter 11 Petition filed August 21, 2014 Filed Pro Se In re Thunderbolt Manufacturing, Inc. Bankr. D. Kans. Case No. 14-11954 Chapter 11 Petition filed August 21, 2014 See http://bankrupt.com/misc/ksb14-11954.pdf represented by: Elizabeth A. Carson, Esq. BRUCE BRUCE & LEHMAN, LLC E-mail: lcarson@ksadvocates.com In re B & J Enameling, Inc. Bankr. E.D. Mich. Case No. 14-53469 Chapter 11 Petition filed August 21, 2014 See http://bankrupt.com/misc/mieb14-53469.pdf represented by: Lynn M. Brimer, Esq. STROBL & SHARP, P.C. E-mail: lbrimer@stroblpc.com In re Clay Geoffrey Phillips Bankr. W.D. Mo. Case No. 14-61107 Chapter 11 Petition filed August 21, 2014 In re Area Plumbing Supply Inc. Bankr. E.D.N.Y. Case No. 14-44283 Chapter 11 Petition filed August 21, 2014 See http://bankrupt.com/misc/nyeb14-44283.pdf Filed Pro Se In re KJH, Inc. dba OK Cleaners Bankr. E.D. Pa. Case No. 14-16730 Chapter 11 Petition filed August 21, 2014 See http://bankrupt.com/misc/paeb14-16730.pdf represented by: Jon M. Adelstein, Esq. ADELSTEIN & KALINER, LLC E-mail: jma@tradenet.net In re GTS Services, Inc. Bankr. W.D. Pa. Case No. 14-23374 Chapter 11 Petition filed August 21, 2014 See http://bankrupt.com/misc/pawb14-23374.pdf represented by: Corey J. Sacca, Esq. BONONI & COMPANY E-mail: csacca@bononilaw.com In re View Point Farm, LLC Bankr. M.D. Tenn. Case No. 14-06693 Chapter 11 Petition filed August 21, 2014 See http://bankrupt.com/misc/tnmb14-06693.pdf represented by: Steven L. Lefkovitz LAW OFFICES LEFKOVITZ & LEFKOVITZ E-mail: slefkovitz@lefkovitz.com In re Ricardo S. Padilla, Jr. Bankr. D. Ariz. Case No. 14-13065 Chapter 11 Petition filed August 22, 2014 In re Harry Adam Stidham and Julie Jayne Stidham Bankr. C.D. Cal. Case No. 14-11840 Chapter 11 Petition filed August 22, 2014 In re Keith G. Speir and Rhonda L. Spier Bankr. C.D. Cal. Case No. 14-11835 Chapter 11 Petition filed August 22, 2014 In re John P. Stefani Bankr. C.D. Cal. Case No. 14-15137 Chapter 11 Petition filed August 22, 2014 In re Edward Harlan Abdalla Bankr. C.D. Cal. Case No. 14-26191 Chapter 11 Petition filed August 22, 2014 In re Cape Coral Towing & Recovery, Inc. Bankr. M.D. Fla. Case No. 14-09787 Chapter 11 Petition filed August 22, 2014 See http://bankrupt.com/misc/flmb14-09787.pdf represented by: Robert L. Vaughn, Esq. LAW OFFICE OF ROBERT L. VAUGHN, P.A. E-mail: Robert@vaughnlaw.net In re Kim C Crawford Bankr. S.D. Fla. Case No. 14-28923 Chapter 11 Petition filed August 22, 2014 In re PLH Investments & Properties, LLC Bankr. N.D. Ga. Case No. 14-66365 Chapter 11 Petition filed August 22, 2014 Filed Pro Se In re Eugene S. Frazier and Natalie W. Frazier Bankr. D. Md. Case No. 14-23237 Chapter 11 Petition filed August 22, 2014 In re Mathis Timber of Mississipi, Inc. Bankr. S.D. Miss. Case No. 14-02679 Chapter 11 Petition filed August 22, 2014 See http://bankrupt.com/misc/mssb14-02679.pdf represented by: Craig M. Geno, Esq. LAW OFFICES OF CRAIG M. GENO, PLLC In re Jorge Ramirez and Micaela Ramirez Bankr. D. Nev. Case No. 14-15726 Chapter 11 Petition filed August 22, 2014 In re Casildo Bustos Bankr. D. Nev. Case No. 14-15734 Chapter 11 Petition filed August 22, 2014 In re ShermacPlus Inc. Bankr. N.D. Ga. Case No. 14-66395 Chapter 11 Petition filed August 23, 2014 See http://bankrupt.com/misc/ganb14-66395.pdf represented by: Garrett A. Nail, Esq. THOMPSON HINE, LLP E-mail: garrett.nail@thompsonhine.com In re VA Athletic Group, LLC Bankr. E.D. Va. Case No. 14-73093 Chapter 11 Petition filed August 23, 2014 See http://bankrupt.com/misc/vaeb14-73093.pdf represented by: Joseph T. Liberatore, Esq. CROWLEY, LIBERATORE, RYAN & BROGAN, P.C. E-mail: jliberatore@clrbfirm.com In re Demitrius McKaye Anthony and Jasmine Eley Anthony Bankr. D. Md. Case No. 14-23271 Chapter 11 Petition filed August 24, 2014 In re Jose Oscar DeSouza and Ezella J. DeSouza Bankr. N.D. Tex. Case No. 14-34050 Chapter 11 Petition filed August 24, 2014 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com by e-mail. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to the nation's bankruptcy courts. The list includes links to freely downloadable of these small-dollar petitions in Acrobat PDF documents. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2014. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. *** End of Transmission ***