/raid1/www/Hosts/bankrupt/TCR_Public/140904.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, September 4, 2014, Vol. 18, No. 246
Headlines
808 RENEWABLE ENERGY: Reports $631K Net Loss for Q2 of 2014
AETHLON MEDICAL: Has $3.66-Mil. Loss for Quarter Ending June 30
AF OCEAN: Incurs $150K Net Loss for Quarter Ended June 30
ALGODON WINES: Has $2.99-Mil. Net Loss for Q2 Ended June 30
AMERICAN LOCKER: Reports $794K Net Loss for Q2 Ended June 30
ANESTHESIA HEALTHCARE: Court OKs Mills & Hoopes as Special Counsel
ANESTHESIA HEALTHCARE: Court Modifies Carl Marks Retention Order
ANPULO FOOD: Reports $364K Net Loss in Q2 Ended June 30
B/E AEROSPACE: Plan Spin Off No Impact on Moody's 'Ba1' CFR
BANKERS LIFE: A.M. Best Raises Issuer Credit Rating from 'bb'
BRIDGE FOODS: Case Summary & 20 Largest Unsecured Creditors
BRINK'S COMPANY: Note Redemption Plan No Impact on Moody's CFR
BUDD COMPANY: FrankGecker Okayed as Asbestos Committee Counsel
BUDD COMPANY: Court OKs Manewitz Weiker as Fee Examiner's Advisor
CHINA XINGBANG: Reports $719K Net Loss for Q2 of 2014
CICERO INC: Incurs $652K Net Loss for Quarter Ending June 30
COATES INTERNATIONAL: Has $2.35-Mil. Net Loss for Q2 of 2014
CROWN HOLDINGS: Moody's Places Ba1 CFR on Review for Downgrade
CRS HOLDING: Electronics Recycler Files for Chapter 11
CRS HOLDING: Proposes $1-Mil. DIP Financing From Regions Bank
CRS HOLDING: Proposes to Use Cash Collateral
CRS HOLDING: Rejecting Leases for 14 Underperforming Locations
CRS HOLDING: Proposes Shumaker as Bankruptcy Counsel
CUE & LOPEZ: Judge to Hold Plan Confirmation Hearing Oct. 22
D.A.B. GROUP: Hires Goldberg Weprin as Bankruptcy Counsel
D.A.B. GROUP: Taps Massey Knakal as Real Estate Broker
DIREXION INVESTMENTS: Closes Five Exchange-Traded Funds
DRIVE TRAIN TRUCK: Case Summary & 17 Largest Unsecured Creditors
EASTERN HILLS: Judge Confirms Chapter 11 Reorganization Plan
EAT AT JOE'S: Reports $5.62-Mil. Profit in Q2 of 2014
ENERGEN CORP: Moody's Lowers Sr. Unsecured Note Rating to 'Ba2'
FOREX INTERNATIONAL: Has $24K Net Loss for Q2 Ended June 30
GIGA-TRONICS INC: Posts $443K Net Loss for June 28 Quarter
GREAT LAKES AVIATION: Has $1.59-Mil. Net Loss in Q2 of 2014
GREEN INNOVATIONS: Has $925K Net Loss in Quarter Ending June 30
GTX INC: Reports $10.94-Mil. Net Loss in Q2 Ended June 30
HBC HOLDINGS: Moody's Assigns First Time Caa1 Corp. Family Rating
INDEX RECOVERY GROUP: Returns to Ch. 11 With $35MM Debt
INDEX RECOVERY GROUP: Proposes Menter Rudin as Counsel
INDEX RECOVERY: Case Summary & 22 Largest Unsecured Creditors
KRYOSPHERE INC: Case Summary & 20 Largest Unsecured Creditors
LDR INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors
LEHMAN BROTHERS: To Seek Opportunities to Monetize Unsec. Claims
MORNINGSTAR MARKETPLACE: Can Use Cash Collateral Thru Jan. 2015
NEW LIFE INT'L: Hires Decosimo as Accountant
NORTH AMERICAN LIFTING: Moody's Rates $190MM 2nd Lien Loan 'Caa1'
NYTEX ENERGY: Whitley Penn Raises Going Concern Doubt
OXFORD RESOURCE: Incurs $3.36-Mil. Net Loss in June 30 Quarter
PASTAZIOS PIZZA: Case Summary & 7 Largest Unsecured Creditors
PHOENIX PAYMENT: Taps Bederson LLP as Accountants
QUANTUM FOODS: Private Sale of Equipment for $75,000 Approved
QUANTUM FOODS: Private Sale of Inventory & Books for $300K Okayed
QUARTZ HILL: Creditors' Bid for Dismissal Granted
QUARTZ HILL: Seeks Reconsideration of Dismissal Order
REALOGY GROUP: Moody's Affirms 'B2' Corporate Family Rating
RENASCENT INC: Bankruptcy Court Enters Final Decree Closing Case
REVSTONE INDUSTRIES: Stuart Maue Ends Stint as Fee Examiner
SALEEEN AUTOMOTIVE: Reports $2.99-Mil. Income for Q2 of 2014
REPUBLIC POWDERED: Files for Ch. 11 Amid Asbestos Claims
REPUBLIC POWDERED: Seeks Stay of Asbestos Claims vs. Non-Debtors
REPUBLIC POWDERED: To Serve Summons to Claimants' Attorneys
RICHFIELD OIL: Reports $1.48-Mil. Net Loss for Q2 Ended June 30
SALUBRIOUS PHARMACEUTICAL: Files Schedules of Assets & Liabilities
SHOTWELL LANDFILL: Creditor Files Second Amended Liquidation Plan
SIMPLEXITY LLC: Sept. 18 Hearing on Hilco Receivables Employment
SPECIALTY HOSPITAL: Agreement on Rosenau LLP Employment Approved
SPECIALTY PRODUCTS: Republic in Ch. 11 Amid Asbestos Claims
SUPER BUY FURNITURE: Can Employ Cuprill-Hernandez as Attorney
SUPER BUY FURNITURE: To Tap Fiddler Gonzalez as Special Counsel
STOCKTON, CA: Stipulation on Stay of East Weber Property
SUNTECH POWER: Solyndra Residual Wants Recognition Bid Denied
SUPERTEL HOSPITALITY: Reports $10.46-Mil. Net Loss for Q2 of 2014
TESROD INVESTMENTS: Case Summary & 20 Largest Unsecured Creditors
THREE FORKS: Incurs $172K Net Loss for Q2 Ended June 30
TLC HEALTH: Status Hearing Slated for Oct. 27
TLC HEALTH: Hill Group Okayed to Assist in Bankruptcy Exit
TLC HEALTH: Decision on MRG, et al., Leases Until Plan Approval
TNI BIOTECH: Reports $6.59-Mil. Net Loss for Q2 of 2014
TOWER GROUP: A.M. Best Lowers Finc'l Strength Ratings to 'C(Weak)'
TRANS-LUX CORP: Incurs $2.5-Mil. Loss in Quarter Ended June 30
UBIQUITY INC: Incurs $5.47-Mil. Loss for Quarter Ended June 30
VISION-SCIENCES: Incurs $1.98-Mil. Net Loss for Q2 of 2014
WINDSOR PETROLEUM: Files Schedules of Assets and Liabilities
XENETIC BIOSCIENCES: Incurs $2.76-Mil. Net Loss for Q2 of 2014
XG TECHNOLOGY: Reports $4.53-Mil. Loss in Q2 Ended June 30
YOU ON DEMAND: Incurs $1.09-Mil. Net Loss for Q2 Ended June 30
* Recent Small-Dollar & Individual Chapter 11 Filings
*********
808 RENEWABLE ENERGY: Reports $631K Net Loss for Q2 of 2014
-----------------------------------------------------------
Renewable Energy Corporation filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, reporting a
net loss of $630,775 on $95,499 of net revenue for the
three months ended June 30, 2014, compared to a net loss of
$295,356 on $320,912 of net revenue for the same period in
2013.
The Company's balance sheet at June 30, 2014, showed $5.23 million
in total assets, $900,209 in total liabilities, and stockholders'
equity of $4.33 million.
During the six months ended June 30, 2014, the Company incurred
net losses of $1,277,778, and as of the same date has an
accumulated deficit of $16,310,079 and negative working capital of
$656,940. If the Company is unable to generate profits and is
unable to continue to obtain financing for its working capital
requirements, it may have to curtail its business sharply or cease
business altogether. These factors raise substantial doubt about
the Company's ability to continue as a going concern.
A copy of the Form 10-Q is available at:
http://is.gd/1SoENP
Garden Grove, Calif.-based 808 Renewable Energy Corporation --
http://www.808renewableenergy.com/-- engages in the design,
construction, engineering, and management of energy systems in the
United States. Its energy systems produce electricity, gas, heat,
or cooling from renewable sources of energy. The company is also
involved in the purchase and sale of power generation equipment.
AETHLON MEDICAL: Has $3.66-Mil. Loss for Quarter Ending June 30
---------------------------------------------------------------
Aethlon Medical, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $3.66 million on $51,296 of total revenue
for the three months ended June 30, 2014, compared with a net loss
of $303,498 on $195,596 of total revenue for the same period in
2013.
The Company's balance sheet at June 30, 2014, showed $1.14 million
in total assets, $4.67 million in total liabilities, and a
stockholders' deficit of $3.52 million.
A copy of the Form 10-Q is available at:
http://is.gd/PQNxYf
Aethlon Medical, Inc., a medical device company, focuses on
creating devices for the treatment of cancer, infectious diseases,
and other life-threatening conditions. It develops Aethlon
Hemopurifier, a medical device that targets the elimination of
circulating viruses and tumor-secreted exosomes that promote
cancer progression. The company's Aethlon Hemopurifier is
intended for the treatment of antiviral drug-resistance in
hepatitis-C virus and human immunodeficiency virus infected
individuals; serves as a countermeasure against viral pathogens
not addressed by drug or vaccine therapies; and represents the
therapeutic strategy to address cancer promoting exosomes. It
also develops exosome-based products to diagnose and monitor
cancer, infectious diseases, and neurological disorders; and is
developing a medical device to reduce the incidence of sepsis in
combat-injured soldiers. The company was founded in 1991 and is
based in San Diego, California.
Squar, Milner, Peterson, Miranda & Williamson, LLP, expressed
substantial doubt about the Company's ability to continue as a
going concern, citing that the Company has incurred continuing
losses from operations and at March 31, 2014 is in default on
certain debt agreements, has negative working capital of
approximately $14.17 million and an accumulated deficit of
approximately $74.83 million. A significant amount of additional
capital will be necessary to advance the development of the
Company's products to the point at which they may become
commercially viable.
AF OCEAN: Incurs $150K Net Loss for Quarter Ended June 30
---------------------------------------------------------
AF Ocean Investment Management Company filed its quarterly report
on Form 10-Q, reporting a net loss of $149,902 on $28,783 of total
revenue for the three months ended June 30, 2014, compared with a
net loss of $20,841 on $135,000 of total revenue for the same
period in 2013.
The Company's balance sheet at June 30, 2014, showed $1.62 million
in total assets, $889,713 in total liabilities, and a
stockholders' equity of $731,553.
The Company had $111,033 in revenue for the six months ended June
30, 2014 from management fees. During that same period, the
Company had a net loss of $227,097. These factors indicate the
Company is generating revenues; however the Company's continuation
as a going concern is dependent upon its ability to generate
revenues through its new business direction, according to the
regulatory filing.
A copy of the Form 10-Q is available:
http://is.gd/YYYVok
AF Ocean Investment Management Company promotes business relations
and exchanges between Chinese and United States-based companies.
The Company advises on international mergers and acquisitions,
promotes cooperation between Chinese companies and Wall Street
financial institutions, and helps Wall Street investors identify
and work with their Chinese counterparts.
ALGODON WINES: Has $2.99-Mil. Net Loss for Q2 Ended June 30
-----------------------------------------------------------
Algodon Wines & Luxury Development Group, Inc., filed its
quarterly report on Form 10-Q, reporting a net loss of $2.99
million on $458,379 of total revenue for the three months ended
June 30, 2014, compared with a net loss of $3.99 million on
$880,491 of total revenue for the same period in 2013.
The Company's balance sheet at June 30, 2014, showed $11.45
million in total assets, $6.36 million in total liabilities, and
stockholders' equity of $5.1 million.
The Company incurred losses of $2,712,272 and $4,724,942 during
the three and six months ended June 30, 2014, respectively and
$3,746,433 and $5,017,531 during the three and six months ended
June 30, 2013, respectively. Cash used in operating activities
was $3,231,260 and $2,175,857 for the six months ended June 30,
2014 and 2013, respectively. These factors raise substantial
doubt about the Company's ability to continue as a going concern,
according to the regulatory filing.
A copy of the Form 10-Q is available:
http://is.gd/2ZwpWq
New York, N.Y.-based Algodon Wines & Luxury Development Group,
Inc., currently invests in, develops and operates international
real estate projects.
AMERICAN LOCKER: Reports $794K Net Loss for Q2 Ended June 30
------------------------------------------------------------
American Locker Group Incorporated filed its quarterly report on
Form 10-Q, reporting a net loss of $793,842 on $6.17 million of
total revenue for the three months ended June 30, 2014, compared
with a net loss of $1.28 million on $7.24 million of total revenue
for the same period in 2013.
The Company's balance sheet at June 30, 2014, showed $6.99 million
in total assets, $8.91 million in total liabilities, and a
stockholders' equity of $137,391.
A copy of the Form 10-Q is available at:
http://is.gd/Yp5MiY
About American Locker Group
American Locker Group Incorporated (ALGI.PK) --
http://www.americanlocker.com/, http://www.canadianlocker.com;
and http://www.securitymanufacturing.com-- is known for its
proven reliability, durability and customer service. American
Locker is the only locker company to operate a dedicated center to
provide prompt and reliable service to their customers. American
Locker is used by thousands of water parks, theme parks, ski
resorts, retailers, law enforcement agencies, and health club
operators around the world.
Travis Wolff, LLP, expressed substantial doubt about the Company's
ability to continue as a going concern, citing that the Company
has experienced recurring losses from operations and has a working
capital deficiency.
ANESTHESIA HEALTHCARE: Court OKs Mills & Hoopes as Special Counsel
------------------------------------------------------------------
Anesthesia Healthcare Partners, Inc. and its debtor-affiliates
sought and obtained permission from the Hon. Wendy L. Hagenau of
the U.S. Bankruptcy Court for the Northern District of Georgia to
employ Mills & Hoopes, LLC as special counsel.
As reported in the Troubled Company Reporter, the U.S. Trustee
claims in an objection filed with the Court on July 29, 2014, that
it is unclear whether the Debtors seeks authorization to employ
only Mr. Hoopes or whether they also seek authorization to employ
the M&H firm. The prayer for relief in the application refers
only to Mr. Hoopes, while the approval order authorizes the
Debtors to employ the Firm. The U.S. Trustee asks that the
Application be amended to clarify whether Debtors seek to employ
both Mr. Hoopes and M&H or only Mr. Hoopes.
The Debtors amended the original application to substitute Mills &
Hoopes, LLC as Applicant.
Mills & Hoopes can be reached at:
Scott R. Hoopes, Esq.
MILLS & HOOPES, LLC
1550 North Brown Road, Suite 130
Lawrenceville, GA 30043
Tel: (678) 373-4220
Fax: (770) 513-8150
As reported by the TCR, fees for the firm's services will be paid
by the Debtors after approval of the Bankruptcy Court at Mr.
Hoopes' normal hourly rate of $295.
About Anesthesia Healthcare
Anesthesia Healthcare Partners, Inc., filed a bare-bones Chapter
11 petition (Bankr. N.D. Ga. Case No. 14-59631) in Atlanta on
May 15, 2014. The case is assigned to Judge Wendy L. Hagenau.
The Debtor is represented by Theodore N. Stapleton, Esq., at
Theodore N. Stapleton, P.C., in Atlanta.
Sean Lynch of Suwannee, Georgia, the CEO of the company, owns
100% of the common stock. In its schedules, the Debtor listed
$19,632,440 in total assets and $11,827,716 in total liabilities.
ANESTHESIA HEALTHCARE: Court Modifies Carl Marks Retention Order
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia
modified the retention order for the engagement of Carl Marks
Advisory Group LLC to provide crisis management and restructuring
services to Anesthesia Healthcare Partners, Inc.
The Modified Order resolves and addresses the objection filed by
Guy G. Gebhardt, Acting U.S. Trustee for Region 21, against the
retention of CMAG as consultant and F. Duffield Meyercord as chief
restructuring officer to the Debtor.
The Aug. 15, 2014 edition of The Troubled Company Reporter related
that among other things, the Acting U.S. Trustee was concerned
that the Consulting Agreement doesn't seem to obligate CMAG to
send in a detailed statement of services rendered, time spent, and
expenses incurred when seeking compensation for its services.
Under the Modified Order, the Court authorized the Debtors to
jointly employ CMAG, including the firm's partners, employees,
agents and independent contractors, to provide Debtors with the
services of F. Duffield Meyercord, as Chief Restructuring Officer,
along with the services of other CMAG personnel, including Tyler
Montague and Dick Walker. The Court opined that this may be may
be necessary to enable Mr. Meyercord to perform his duties as CRO.
The Court clarified that notwithstanding anything to the contrary
contained in the Consulting Agreement, CMAG and the Restructuring
Team will not act in any capacity in the Debtors' Chapter 11 cases
other than as crisis manager or Chief Restructuring Officer,
including financial advisor, claims agent, investor or acquirer.
No success fees or other back-end fees are payable under the
Consulting Agreement, the Court further clarified.
Notwithstanding anything to the contrary contained in the
Application, any supporting declarations, and the Consulting
Agreement, CMAG will not incur or be paid any fees in excess of
the $90,000 fixed monthly fee and actually incurred out-of-pocket
in expenses unless otherwise agreed by the DIP Lender, the Court
added.
The Monthly Fee will be paid to CMAG in accordance with the
Consulting Agreement and expenses paid upon submission of invoices
to the Debtors, unless any amounts set forth therein are disputed,
in which case the undisputed portion will be promptly paid, the
Court further ruled. Any disputed amounts will be promptly
resolved between CMAG and the disputing party or, if any dispute
cannot be resolved, by the Court following appropriate Notice and
hearing.
The Monthly Fee will be paid in advance, and the expenses will be
paid in arrears, as provided in the Consulting Agreement, the
Court ordered. Notwithstanding the forgoing, CMAG will not submit
invoices for and be paid any expenses incurred as to counsel for
purposes of obtaining approval of CMAG's engagement as provided
for in the Court's Order.
About Anesthesia Healthcare
Anesthesia Healthcare Partners, Inc., filed a bare-bones Chapter
11 petition (Bankr. N.D. Ga. Case No. 14-59631) in Atlanta on
May 15, 2014. The case is assigned to Judge Wendy L. Hagenau.
The Debtor is represented by Theodore N. Stapleton, Esq., at
Theodore N. Stapleton, P.C., in Atlanta.
Sean Lynch of Suwannee, Georgia, the CEO of the company, owns
100% of the common stock. In its schedules, the Debtor listed
$19,632,440 in total assets and $11,827,716 in total liabilities.
ANPULO FOOD: Reports $364K Net Loss in Q2 Ended June 30
-------------------------------------------------------
Anpulo Food, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $364,013 on $3.52 million of total revenue
for the three months ended June 30, 2014, compared with a net loss
of $468,810 on $4.24 million of total revenue for the same period
in 2013.
The Company's balance sheet at June 30, 2014, showed $20.28
million in total assets, $16.35 million in total liabilities, and
stockholders' equity of $3.93 million.
The Company has accumulated deficit of $2,532,486, a working
capital deficit and cash outflow from operating activities of
$7,386,361 and $285,049 at June 30, 2014. This raises substantial
doubt about its ability to continue as a going concern.
A copy of the Form 10-Q is available:
http://is.gd/dy66bO
Anpulo Food, Inc., processes and supplies pork and cured pork
products to wholesale customers, including fast food companies,
processing factories and school cafeterias. The Company has a
processing plant in Hubei, China where it also maintains its
headquarters.
B/E AEROSPACE: Plan Spin Off No Impact on Moody's 'Ba1' CFR
-----------------------------------------------------------
B/E Aerospace, Inc. provides additional information in connection
with its upcoming separation into two independent, publically-
traded companies. The CFR (Ba1) is unaffected at this time. The
rating outlook remains negative.
B/E Aerospace, Inc. is the world's largest manufacturer of
commercial and general aviation cabin interior products for
commercial aircraft and business jets and the world's leading
provider of aerospace fasteners, consumables and logistics
services. B/E Aerospace's products include aircraft seats,
equipment for food and beverage preparation and storage, modular
lavatories, oxygen delivery systems, and a range of business jet
and general aviation interior products.
BANKERS LIFE: A.M. Best Raises Issuer Credit Rating from 'bb'
-------------------------------------------------------------
A.M. Best Co. has upgraded the issuer credit rating (ICR) to "bb+"
from "bb" and affirmed the financial strength rating (FSR) of B
(Fair) of Bankers Life Insurance Company (Bankers Life) (St.
Petersburg, FL).
Concurrently, A.M. Best has affirmed the FSR of B+ (Good) and ICRs
of "bbb-' of Bankers Insurance Company (Bankers) (St. Petersburg,
FL) and its property/casualty subsidiaries, Bankers Specialty
Insurance Company (Metarie, LA) and First Community Insurance
Company (St. Petersburg, FL). The outlook for all ratings is
stable.
The ICR upgrade reflects A.M. Best's improved view of the overall
strategic importance of Bankers Life to Bankers. The ratings also
reflect its adequate level of risk-adjusted capitalization,
generally positive, though fluctuating operating performance and
improved credit quality of its fixed income portfolio. Bankers
Life operates as the sole life insurance member for Bankers,
contributing measurable levels of earnings and premium revenue to
the group. Bankers Life also maintains effective asset liability
management to mitigate significant mismatch or duration risk.
Offsetting factors include challenges in executing its strategic
business plans, maintenance of adequate capitalization levels as
it manages its expected growth in interest-sensitive liabilities
and ability to maintain improved operating results. Bankers Life
has used significant levels of reinsurance to manage capital and
business strain related to its fixed-annuity business. With plans
to retain all new business going forward, Bankers Life may have
difficulty improving upon its historical operating performance,
noting the statutory loss recorded through the first six months of
2014. Absolute capital levels are also relatively modest and
lower in 2014, reflecting dividends and the repayment of an
internal surplus note.
Factors that could lead to a positive rating action include a
sustained improvement in risk-adjusted capitalization as measured
by Best's Capital Adequacy Ratio, net operating performance trends
that meet or exceed A.M. Best's expectations or a positive rating
action on Bankers. Factors that could cause downward rating
pressure include a meaningful and sustained decline in risk-
adjusted capitalization, higher than expected dividend payments
made to Bankers, net operating trends that fall below A.M. Best's
expectations or a downgrade of Banker's ratings.
The ratings and outlook for the property/casualty operations
reflect adequate risk-adjusted capitalization, generally favorable
loss experience as a result of extensive exposure management, as
well as other profitability initiatives adopted by management in
recent years. Partially offsetting these positive factors are the
continuance of an elevated underwriting expense ratio and the
challenges stemming from rapid new business growth, which could
place pressure on capitalization and contribute to elevated
underwriting ratios. In addition, the group's narrow geographic
concentration exposes it to severe weather-related events.
Factors that could lead to positive rating action at the
property/casualty operations include a sustainable profitable
trend in operating performance, as well as improvement in risk-
adjusted capitalization as measured by Best's Capital Adequacy
Ratio. Conversely, any deterioration in operating performance and
erosion in the capital base and risk-adjusted capitalization could
result in negative rating pressure.
BRIDGE FOODS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Bridge Foods, LLC
16500 Chef Menteur Hwy
New Orleans, LA 70129
Case No.: 14-12358
Chapter 11 Petition Date: September 2, 2014
Court: United States Bankruptcy Court
Eastern District of Louisiana (New Orleans)
Judge: Hon. Elizabeth W. Magner
Debtor's Counsel: Stewart F. Peck, Esq.
LUGENBUHL, WHEATON, PECK, RANKIN & HUBBARD
601 Poydras Street, Suite 2775
New Orleans, LA 70130
Tel: (504) 568-1990
Fax: (504) 529-7418
Email: speck@lawla.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Henry Chigbu, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/laeb14-12358.pdf
BRINK'S COMPANY: Note Redemption Plan No Impact on Moody's CFR
--------------------------------------------------------------
Moody's Investors Service said The Brink's Company (BCO)
announcements on August 29, 2014, to redeem the Dominion Terminal
Authority Bonds and offer a lump sum and accelerated annuity
option to retirees are constructive steps, but involve several
offsets and do not affect the ratings (Ba1 CFR/stable).
BUDD COMPANY: FrankGecker Okayed as Asbestos Committee Counsel
--------------------------------------------------------------
The Committee of Asbestos Personal Injury Claimants of The Budd
Company, Inc. sought and obtained permission from the Hon. Jack B.
Schmetterer of the U.S. Bankruptcy Court for the Northern District
of Illinois to retain FrankGecker LLP as attorneys to the Asbestos
Committee, effective July 30, 2014.
The Asbestos Committee requires FrankGecker to act as its counsel
for all matters relating to the performance of the Asbestos
Committee's duties under 11 U.S.C. section 1103(a), including,
without limitation, the following services:
(a) representing the Asbestos Committee in any proceedings and
hearings that involve or might involve matters pertaining
to the Debtor's asbestos claimants;
(b) preparing on behalf of the Asbestos Committee any necessary
adversary complaints, motions, applications, orders and
other legal papers relating to such matters;
(c) giving the Asbestos Committee legal advice with respect to
its powers and duties in this case;
(d) assisting the Asbestos Committee in its investigation of
the acts, conduct, assets and insurance, liabilities,
financial condition, and operation of the Debtor's business
and any other matters relevant to the case, if necessary;
(e) advising the Committee with respect to the negotiation and
confirmation of a plan of reorganization; and
(f) performing all other legal services as required.
The Court authorized FrankGecker to seek approval of its interim
compensation and reimbursement of expenses for July 30, 2014 and
July 31, 2014 during the August-November, 2014 Interim Fee Period,
and FrankGecker will remain eligible to receive ongoing Statement
Payments, including for fees and expenses incurred on July 30,
2014 and July 31, 2014.
FrankGecker will seek compensation for attorneys' fees and
paraprofessionals' fees and reimbursement of necessary and
reasonable out-of-pocket expenses in accordance with the
applicable provisions of the Bankruptcy Code, the Bankruptcy
Rules, the Local Rules and this Court's April 22, 2014 Case
Management Procedures Order and any order entered by this Court
governing interim compensation of fees and expenses.
Joseph D. Frank, partner of FrankGecker, 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.
FrankGecker can be reached at:
Joseph D. Frank, Esq.
FRANKGECKER, LLP
325 North LaSalle Street, Suite 625
Chicago, IL 60654
Tel: (312) 276-1400
Fax: (312) 276-0035
E-mail: jfrank@fgllp.com
About The Budd Company
The Budd Company, Inc., a former supplier to the automotive
industry, filed for chapter 11 bankruptcy protection (Bankr. N.D.
Ill. Case No. 14-11873) on March 31, 2014, with a deal to settle
potential claims against its parent, ThyssenKrupp AG.
The company -- which ceased manufacturing operations in 2006 and
does not have any current employees, facilities or customers --
has obligations consisting largely of medical and other benefits
to approximately 10,000 former employees.
Liabilities amount to approximately $1 billion with assets of
approximately $400 million. Most of the debt consists largely of
medical and other benefits to approximately 10,000 former
employees.
The Debtor disclosed $387,555,681 in assets and $1,107,350,034 in
liabilities as of the Chapter 11 filing.
The Hon. Jack B. Schmetterer oversees the case. The Debtor has
tapped Proskauer Rose LLP as Chapter 11 counsel, Dickinson Wright
PLLC as special counsel, Epiq Bankruptcy Solutions, LLC as
noticing, claims and balloting agent, and Conway MacKenzie
Management Services, LLC's Charles M. Moore as CRO.
The U.S. Trustee appointed five individuals to serve on the
Committee of Executive & Administrative Retirees. The Segal
Company (Eastern States), Inc. serves as the Committee's actuarial
consultant. The Committee retained Solic Capital Advisors, LLC as
its financial advisor.
Reed Heiligman, Esq., at FrankGecker LLP, in Chicago, Illinois,
represents the ad hoc committee of asbestos personal injury
claimants.
BUDD COMPANY: Court OKs Manewitz Weiker as Fee Examiner's Advisor
-----------------------------------------------------------------
Diana G. Adams, the Fee Examiner of the Budd Company, Inc., sought
and obtained permission from the Hon. Jack B. Schmetterer of the
U.S. Bankruptcy Court for the Northern District of Illinois to
employ Manewitz Weiker Associates, LLC, as her advisors,
retroactive to Aug. 4, 2014.
As reported in the Troubled Company Reporter, Manewitz Weiker
will:
a) review the fee applications of the Retained Professionals;
b) identify billing entries, if any, which appear to be outside
of the applicable rules, guidelines and court orders and
discuss same with the fee examiner and her professionals;
c) make recommendations to the fee examiner regarding any
identified issues;
d) assist in the fee examiner and her attorneys in the
preparation of reports and court filings;
e) assist the fee examiner in developing protocols; and
f) provide other services as the Fee Examiner may request.
The Fee Examiner proposes that MWA be paid at these rates:
-- Data entry and computer analysis ($200 per hour);
-- Detailed analysis of entries and identification of potential
objections ($350 per hour); and
-- Preparation of reports, filing of reports, court appearances
and communication with Retained Professionals or the fee
examiner's other professionals ($450 per hour).
The Fee Examiner assures the Court the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
MANEWITZ WEIKER ASSOCIATES LLC
360 E 72nd St Apt A1401
New York, NY 10021-4757
Tel: (917) 882-2265
About The Budd Company
The Budd Company, Inc., a former supplier to the automotive
industry, filed for chapter 11 bankruptcy protection (Bankr. N.D.
Ill. Case No. 14-11873) on March 31, 2014, with a deal to settle
potential claims against its parent, ThyssenKrupp AG.
The company -- which ceased manufacturing operations in 2006 and
does not have any current employees, facilities or customers --
has obligations consisting largely of medical and other benefits
to approximately 10,000 former employees.
Liabilities amount to approximately $1 billion with assets of
approximately $400 million. Most of the debt consists largely of
medical and other benefits to approximately 10,000 former
employees.
The Debtor disclosed $387,555,681 in assets and $1,107,350,034 in
liabilities as of the Chapter 11 filing.
The Hon. Jack B. Schmetterer oversees the case. The Debtor has
tapped Proskauer Rose LLP as Chapter 11 counsel, Dickinson Wright
PLLC as special counsel, Epiq Bankruptcy Solutions, LLC as
noticing, claims and balloting agent, and Conway MacKenzie
Management Services, LLC's Charles M. Moore as CRO.
The U.S. Trustee appointed five individuals to serve on the
Committee of Executive & Administrative Retirees. The Segal
Company (Eastern States), Inc. serves as the Committee's actuarial
consultant. The Committee retained Solic Capital Advisors, LLC as
its financial advisor.
Reed Heiligman, Esq., at FrankGecker LLP, in Chicago, Illinois,
represents the ad hoc committee of asbestos personal injury
claimants.
CHINA XINGBANG: Reports $719K Net Loss for Q2 of 2014
-----------------------------------------------------
China Xingbang Industry Group Inc. filed its quarterly report on
Form 10-Q, reporting a net loss of $719,187 on $1,358 of total
revenue for the three months ended June 30, 2014, compared with a
net loss of $1.06 million on $8,145 of total revenue for the same
period in 2013.
The Company's balance sheet at June 30, 2014, showed $1.14 million
in total assets, $6.2 million in total liabilities, and a
stockholders' deficit of $5.06 million.
The Company's operations resulted in a net loss of $1,237,533 and
used cash in operations of $1,277,627 for the six months ended
June 30, 2014. As of June 30, 2014, the Company had an
unappropriated accumulated deficit of $6,263,756 and a working
capital deficiency of $5,471,085. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern, according to the regulatory filing.
A copy of the Form 10-Q is available:
http://is.gd/WlK4gU
Based in the city of Guangzhou, Guangdong Province, China,
Guangdong Xingbang is a company principally engaged in the
provision of marketing consultancy services to manufacturers,
distributors and other businesses and local governments in the
lighting, ceramics and other home furnishings industry in the PRC.
CICERO INC: Incurs $652K Net Loss for Quarter Ending June 30
------------------------------------------------------------
Cicero, Inc., filed its quarterly report on Form 10-Q, reporting a
net loss of $652,000 on $553,000 of total revenue for the three
months ended June 30, 2014, compared with a net loss of $865,000
on $595,000 of total revenue for the same period in 2013.
The Company's balance sheet at June 30, 2014, showed $3.16 million
in total assets, $13.15 million in total liabilities, and a
stockholders' deficit of $10 million.
The Company has incurred an operating loss of approximately
$3,206,000 for the year ended December 31, 2013, and has a history
of operating losses. For the six months ended June 30, 2014, the
Company incurred losses of $1,375,000 and had a working capital
deficiency of $12,851,000 as of June 30, 2014. These factors
raise substantial doubt about the Company's ability to continue as
a going concern.
A copy of the Form 10-Q is available 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. The Company's balance sheet at
Dec. 31, 2013, showed $4.19 million in total assets, $12.80
million in total liabilities and a $8.60 million total
stockholders' deficit.
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.
COATES INTERNATIONAL: Has $2.35-Mil. Net Loss for Q2 of 2014
------------------------------------------------------------
Coates International, Ltd., filed its quarterly report on Form 10-
Q, reporting a net loss of $2.35 million on $4,800 of total
revenue for the three months ended June 30, 2014, compared with a
net loss of $1.18 million on $4,800 of total revenue for the same
period in 2013.
The Company's balance sheet at June 30, 2014, showed $2.36 million
in total assets, $7.33 million in total liabilities, and a
stockholders' deficit of $4.96 million.
Coates International has incurred net recurring losses since
inception, amounting to $36.84 million, as of June 30, 2014,
primarily consisting of research and development expenses and had
a stockholders' deficiency of $4.96 million. These factors raise
substantial doubt about our ability to continue as a going
concern, according to the regulatory filing.
A copy of the Form 10-Q is available at:
http://is.gd/dY7f6X
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.
CROWN HOLDINGS: Moody's Places Ba1 CFR on Review for Downgrade
--------------------------------------------------------------
Moody's Investors Service placed the Ba1 corporate family, Ba1-PD
probability of default and other instrument ratings of Crown
Holdings, Inc. under review for downgrade.
Ratings Rationale
The review follows Crown's announcement that it entered into an
agreement to acquire EMPAQUE, a leading Mexican manufacturer of
aluminum cans and ends, bottle caps and glass bottles for the
beverage industry, from Heineken N.V., in a cash transaction value
at $1.225 billion. The acquisition, which is subject to customary
closing conditions, including competition authority approval, is
expected to close by year end 2014. Financing has been committed
in support of the transaction from Citigroup Global Markets Inc.
EMPAQUE is based in Monterrey, Mexico and currently operates two
beverage can plants, a plant that manufacturers beverage can ends
and aluminum closures and bottle caps and a glass bottle plant and
services facility. Projected 2014 sales and EBITDA are
approximately $700 million and $150 million, respectively.
Moody's review will focus on the final capital structure,
potential synergies, the integration plan, and the company's
commitment to dedicating free cash flow to debt reduction.
Moody's placed the following ratings under review for downgrade:
Crown Holdings, Inc.
-- Corporate family rating, Ba1
-- Probability of default rating, Ba1-PD
Crown Americas, LLC
-- $450 million US Revolving Credit Facility due December 2018,
Baa2 (LGD 2)
-- $800 million Term Loan A due December 2018, Baa2 (LGD 2)
-- $362 million Farm Credit Term Loan due December 2019, Baa2
(LGD 2)
-- $700 million 6.25% senior unsecured notes due February 2021,
Ba2 (LGD 5)
-- $1,000 million 4.50% senior unsecured notes due January 2023,
Ba2 (LGD 5)
Crown Cork & Seal Company, Inc.
-- $63.5 million 7.50% senior unsecured notes due December 2096,
Ba3 (LGD 6)
-- $350 million 7.375% senior unsecured notes due December 2026,
Ba3 (LGD 6)
Crown European Holdings S.A.
-- $700 million European revolving credit facility due December
2018, Baa2 (LGD 2)
-- EUR700 million senior secured Term Loan A due December 2018,
Baa2 (LGD 2)
-- EUR650 million 4.0% senior unsecured notes due July 2022 Ba1
(LGD 3)
Crown Metal Packaging Canada L.P.
-- $50 million Canadian revolving credit facility due December
2018, Baa2 (LGD 2)
The rating outlook is revised to rating under review for downgrade
from stable.
Crown Holdings, Inc., headquartered in Philadelphia, Pennsylvania,
is a global manufacturer of steel and aluminum containers for
food, beverage, and consumer products. Revenues for the twelve
months ended June 30, 2014 were approximately $8.8 billion.
The principal methodology used in these rating was the Global
Packaging Manufacturers: Metal, Glass, and Plastic Containers
Industry Methodology published in June 2009. Other methodologies
used include Loss Given Default for Speculative-Grade Non-
Financial Companies in the U.S., Canada and EMEA published in June
2009.
CRS HOLDING: Electronics Recycler Files for Chapter 11
------------------------------------------------------
Electronics recycler CRS Holding of America, LLC, sought
bankruptcy protection with plans to ultimately sell the business.
According to a court filing, CRS and its subsidiaries intend to
move forward expeditiously to continue their interrelated
operations and intend to propose a Joint Plan of Reorganization
that will likely provide for the substantive consolidation of the
Debtors' estates and the ultimate sale of the businesses in a
single, unified transaction.
The Debtors said they will use the proposed $1 million DIP
financing to pay, among other things, ordinary course operating
expenses and other administrative expenses consistent with the
Debtors' overall objective of stabilizing the business for likely
sale pursuant to a plan of reorganization.
The DIP financing from Regions Bank matures in 60 days from the
Petition Date but can be extended to 90 days if (x) the Debtors
file a reorganization plan within 60 days from the Petition Date,
or (y) the Debtors file a U.S.C. Sec. 363 sale motion within 15
days of the Petition Date, the Court approves the sale within 60
days of the Petition Date, and closing is scheduled within 90 days
of the Petition Date.
Through this Chapter 11 case, CRS seeks to first stabilize its
business operations and halt the collection and eviction efforts
of its various creditors, including landlords. During the
pendency of the case, CRS will seek to pare down its operations
through the rejection of leases at unprofitable facilities and
consolidate efforts in those locations which are profitable. CRS
then intends to pursue confirmation of a Chapter 11 Plan which
will provide for the sale of its collective assets as a going
concern in order to maximize value for the bankruptcy estate.
The Business
As of Dec. 31, 2013, CRS had a workforce of 345 employees working
from approximately 10 facilities in 11 states. However, CRS now
operates from approximately 6 facilities in 4 states with a
reduced workforce as a result of its woes.
The Debtors' corporate headquarters and primary base of operations
is located in Tampa, Florida. The Debtors lease their Tampa
locations and all other real property facilities where their
operations are located. In addition to the corporate headquarters
in Tampa, the Debtors currently operate facilities in Bloomfield,
Connecticut; Durham, North Carolina and Columbia, South Carolina.
CRS formerly operated facilities in Tallahassee, Florida, Georgia,
Illinois, Kentucky, Maryland, Pennsylvania, and Tennessee.
In 2013, CRS had gross revenues totaling $30,000,000. For the
year to date in 2014, CRS has gross revenues totaling $14,757,649.
Road to Bankruptcy
CRS explained in bankruptcy court filings that it has a number of
credit facilities through Regions Bank and Regions Equipment
Finance Corporation. Regions' obligations appear to be secured by
a security interest in substantially all of CRS's assets.
Additionally, CRS is indebted to various insiders in connection
with loans made to CRS, one or more of whom claims a security
interest in CRS's assets.2
On May 27, 2014, claiming that CRS's had defaulted under its
various obligations, Regions commenced an action against CRS, its
various subsidiaries, and two insider guarantors to enforce
payment of nearly $20 million in claimed outstanding indebtedness
and to foreclose its security interests in CRS's assets.
In the District Court Action, Regions also sought the appointment
of a receiver, which request was granted by the District Court on
July 16, 2014, when Robert Swett was appointed as receiver for CRS
and the subsidiaries.
Mr. Swett determined that given the companies' delinquency on
their secured debt to Regions, delinquent rent owed to certain
landlords (many of whom were on the verge of obtaining eviction
judgments), deferred disposal of leaded glass and other
potentially hazardous materials with costly associated removal
expenses, accumulated arrearages to vendors and a few utility
providers, and other operational concerns -- and in light of the
fundamentally sound nature of CRS's underlying businesses -- it
would be in the best interest of CRS Holding and its subsidiaries,
their creditors, their employees, and other parties in interest,
for CRS to file petitions under Chapter 11.
First Day Motions
The Debtors on the Petition Date filed motions to (a) jointly
administer their Chapter 11 cases, (b) use cash collateral, (c)
reject certain leases, (d) enjoin utilities from discontinuing
service, (e) maintain their existing bank accounts, (f) pay
administrative rent, (g) pay prepetition wages and benefits of
employees, and (h) obtain credit.
The Debtors say that they owe 134 employees $242,859 in
prepetition wages.
A preliminary hearing on the first-day motions was slated for
Sept.3.
About CRS Holding of America
CRS Holding of America, LLC, operates a full service electronics
recycling business, providing e-waste recycling solutions for
organizations of all sizes. CRS's offerings are designed to meet
customers' demand for data security and environmental compliance.
CRS Holding and 21 subsidiaries sought Chapter 11 protection
(Bankr. M.D. Fla. Case No. 14-bk-10142) in Tampa, Florida, on Aug.
29, 2014.
CRS estimated total assets of $50 million to $100 million and debt
of $10 million to $50 million. The Debtors' outstanding loan
balances to secured creditors are: Regions Bank, $15 million; JY
Creative Holdings, Inc. $6.8 million; and Intersection, LLC,
$250,000. The Debtors estimate that general unsecured claims
total $5 million.
The cases are assigned to Judge K. Rodney May.
The Debtors have tapped Shumaker, Loop & Kendrick, LLP, as
counsel.
CRS HOLDING: Proposes $1-Mil. DIP Financing From Regions Bank
-------------------------------------------------------------
CRS Holding of America, LLC, is seeking approval from the
bankruptcy court of a credit facility of up to $1 million of
financing from Regions Bank.
The material provisions of the credit facility include:
a. Interest Rate: Prime Rate, as defined in the documents plus
5%.
b. Maturity: Generally 60 to 90 days from the Petition Date.
c. Events of Default: The potential events of default are
numerous, and are set forth in Section 7 of the Agreement. In
general, however, events of default appear to be focused on the
prompt filing and subsequent approval of (i) a motion to sell all
or substantially all of the Companies assets pursuant to 11
U.S.C. Sec. 363, and (ii) a Chapter 11 Plan.
d. Liens: The Agreement provides that payment of the Credit
Facility will be secured by a first priority security interest in
all of the Companies' assets, pursuant to 11 U.S.C. Sec. 364(c).
e. Borrowing Limits: The Credit Facility is limited to
$1,000,000.
f. Borrowing Conditions: There are multiple conditions to the
borrowing(s), both financial and non-financial in nature. Sec.
2.03 of the Agreement requires that the Credit Facility be
utilized consistent with an agreed budget.
g. Deadlines: The Credit Facility establishes certain deadlines
for, among other things, (i) the filing of the Sale Motion, (ii)
the approval of the Sale Motion, and (iii) the filing of a Chapter
11 Plan.
h. Causes of Action: The Credit Facility does not provide for a
release, waiver or limitation on any claim or cause of action
belonging to the estate or the trustee. It does, however,
prohibit the use of the proceeds of the Credit Facility for
professional fees and expensed for pursuing certain claims against
Regions.
The Debtors say there were unable to obtain unsecured or secured
credit other than from Regions.
About CRS Holding of America
CRS Holding of America, LLC, operates a full service electronics
recycling business, providing e-waste recycling solutions for
organizations of all sizes. CRS's offerings are designed to meet
customers' demand for data security and environmental compliance.
CRS Holding and 21 subsidiaries sought Chapter 11 protection
(Bankr. M.D. Fla. Case No. 14-bk-10142) in Tampa, Florida, on Aug.
29, 2014.
CRS estimated total assets of $50 million to $100 million and debt
of $10 million to $50 million. The Debtors' outstanding loan
balances to secured creditors are: Regions Bank, $15 million; JY
Creative Holdings, Inc. $6.8 million; and Intersection, LLC,
$250,000. The Debtors estimate that general unsecured claims
total $5 million.
The cases are assigned to Judge K. Rodney May.
The Debtors have tapped Shumaker, Loop & Kendrick, LLP, as
counsel.
CRS HOLDING: Proposes to Use Cash Collateral
--------------------------------------------
CRS Holding of America, LLC, and its debtor-subsidiaries are
seeking approval from the bankruptcy court to use cash collateral
of their prepetition secured creditors.
Hugo S. deBeaubien, Esq., at Shumaker, Loop & Kendrick, LLP,
explains that the Debtors' revenues and other cash assets may
constitute cash collateral that Regions Bank and/or Regions
Equipment Finance Corporation, JY Creative Holdings, Inc. and/or
Intersection, LLC may claim a lien upon and/or an interest in by
virtue of security instruments securing various loans made to the
Debtor.
Mr. deBeaubien avers that that the use of the cash collateral is
essential to the ongoing operations of CRS as such cash collateral
is necessary to fund administrative expenses, adequate protection
payments, and all other operational funding needs of the Debtors.
CRS is offering Regions -- which holds a first position lien on
the Debtors' assets and which claim is undersecured -- [and other
secured creditors] adequate protection of their liens upon and/or
interests in the cash as follows:
a. Notwithstanding the provisions of 11 U.S.C. Sec. 552(a), a
lien on the postpetition Cash, which lien shall be of the same
extent, validity and priority that Regions, JYCHI and Intersection
held prepetition. However, any order adopting this offer will not
be construed as a determination as to the validity or priority of
Regions', JYCHI's or Intersection's lien on the Cash.
b. Use of the Cash solely for ordinary course operating
expenses, within a variance of +/- 15% consistent with the
proposed budget, and such other expenses outside the ordinary
course of CRS's business as may be approved by the Court.
c. Providing Regions, JYCHI and Intersection with periodic
statements of CRS's operations, income and expenses.
About CRS Holding of America
CRS Holding of America, LLC, operates a full service electronics
recycling business, providing e-waste recycling solutions for
organizations of all sizes. CRS's offerings are designed to meet
customers' demand for data security and environmental compliance.
CRS Holding and 21 subsidiaries sought Chapter 11 protection
(Bankr. M.D. Fla. Case No. 14-bk-10142) in Tampa, Florida, on Aug.
29, 2014.
CRS estimated total assets of $50 million to $100 million and debt
of $10 million to $50 million. The Debtors' outstanding loan
balances to secured creditors are: Regions Bank, $15 million; JY
Creative Holdings, Inc. $6.8 million; and Intersection, LLC,
$250,000. The Debtors estimate that general unsecured claims
total $5 million.
The cases are assigned to Judge K. Rodney May.
The Debtors have tapped Shumaker, Loop & Kendrick, LLP, as
counsel.
CRS HOLDING: Rejecting Leases for 14 Underperforming Locations
--------------------------------------------------------------
CRS Holding of America, LLC, and its debtor-subsidiaries seek
bankruptcy court approval to reject leases for properties where
they are not operating profitably.
CRS presently occupies, via a leasehold interest in the name of
the certain affiliated debtors, certain properties where it
conducts operations.
The Debtors say that the rejection of these leases will be
beneficial to the estate:
Landlord Premises Term Exp.
-------- -------- ---------
FJS Family, LLC 400 Woodland Ave. 04/30/18
Sponzo Enterprises LLC Bloomington, CT
Liberty Property 250 Boulder Dr., #300 09/30/20
LP Breinigsville, PA
Liberty Property 8150 Industrial Pkwy. Mo. - Mo.
Limited Partnership Breinigsville, PA
Carolina Pines I LLC 1061 Carolina Pines Rd. #3 09/30/18
of North Carolina, LLC
Farrow Road Assoc. LLC 251 Corporate Park Blvd. Uncertain
RH Corporate Park, LLC Columbia, SC
Meadowridge Indstr. 6725 Business Parkway 12/31/25
Center, LLC LLC Elkridge, MD
Troy Hill I, LLC Troy Hill Dr. 01/31/18
Elkridge, MD
Buckhead?Dupage 278 Windy Point Dr. 01/31/18
Industr. Prop., LLC Glendale Heights, IL
Weston Riverport 7100A Intermodal Dr., #A 02/28/19
LLC Louisville, KY 40258
Sealy Airpark Creative 1429 Donelson Pike 09/30/18
Nashville, L.P. Nashville, TN
PC Overnight, LLC 85 No. Industrial Rd. 11/30/15
Palmetto, GA
PC Overnight, LLC 4716 Capitol Cir. SW 12/31/15
Tallahassee, FL
G&I VII Tpa East 1831 Massaro Blvd. 04/30/16
LLC LLC Tampa, FL
Weingarten Realty
Investors
Liberty Property 6532 Judge Adams Rd. 12/31/14
Limited Partnership LLC Whitsett, NC
About CRS Holding of America
CRS Holding of America, LLC, operates a full service electronics
recycling business, providing e-waste recycling solutions for
organizations of all sizes. CRS's offerings are designed to meet
customers' demand for data security and environmental compliance.
CRS Holding and 21 subsidiaries sought Chapter 11 protection
(Bankr. M.D. Fla. Case No. 14-bk-10142) in Tampa, Florida, on Aug.
29, 2014.
CRS estimated total assets of $50 million to $100 million and debt
of $10 million to $50 million. The Debtors' outstanding loan
balances to secured creditors are: Regions Bank, $15 million; JY
Creative Holdings, Inc. $6.8 million; and Intersection, LLC,
$250,000. The Debtors estimate that general unsecured claims
total $5 million.
The cases are assigned to Judge K. Rodney May.
The Debtors have tapped Shumaker, Loop & Kendrick, LLP, as
counsel.
CRS HOLDING: Proposes Shumaker as Bankruptcy Counsel
----------------------------------------------------
CRS Holding of America, LLC, and its debtor-subsidiaries ask for
approval from the bankruptcy court to employ The Law Firm of
Shumaker, Loop & Kendrick, LLP, as counsel.
The Debtors require bankruptcy counsel to assist it with all
aspects of their Chapter 11 cases, including but not limited to
preparation of its schedules and statement of financial affairs,
attendance at hearings and out-of-court meetings necessitated by
the Chapter 11 cases, compliance with the requirements of the
Bankruptcy Code, Rules, and other applicable authorities, guidance
in operation as debtors-in-possession, development and drafting of
a Joint Chapter 11 Plan, and pursuit of confirmation of a Chapter
11 Plan, including the likely sale of all or substantially all of
the Debtors' assets.
The Debtors seeks to employ SLK and its professionals, including
but not limited to attorneys Jay B. Verona and Hugo S. deBeaubien,
to serve as bankruptcy counsel. Attorney Jay B. Verona has over
30 years' experience in business bankruptcy cases. 8. Attorney
Hugo S. deBeaubien is an associate at SLK whose practices
primarily in the areas of bankruptcy and creditors' rights,
including the representation of Chapter 11 debtors-in-possession
and Chapter 11 trustees.
The Debtors seek approval to compensate SLK on an hourly-plus-
expenses basis. In particular, the proposed arrangement for
compensation of SLK is that SLK be paid, subject to approval of
the Court, its normal hourly rates, plus reimbursement of all
costs and expenses incurred incident to the representation. By way
of example, $405 is the current normal hourly rate for Mr. Verona,
who is the SLK partner who will be primarily responsible for the
administration of the case; the normal hourly rate for
Mr. deBeaubien is $280.
The Debtors will not make any payment to the Firm for its services
rendered or costs incurred without first making an appropriate
application for such payment to the Court and obtaining entry of
an order approving same.
Mr. Verona attests that SLK is disinterested as that term is
defined in 11 U.S.C. Sec. 101(14) insofar as SLK (i) is not a
creditor, an equity security holder or an insider; (ii) is not and
was not, within 2 years before the date of the filing of the
petition, a director, officer, or employee of any of the Debtors;
and (iii) does not have an interest materially adverse to the
interest of the Debtors' estates or of any class of creditors or
equity security holders, by reason of any direct or indirect
relationship to, connection with, or interest in, the Debtors, or
for any other reason.
About CRS Holding of America
CRS Holding of America, LLC, operates a full service electronics
recycling business, providing e-waste recycling solutions for
organizations of all sizes. CRS's offerings are designed to meet
customers' demand for data security and environmental compliance.
CRS Holding and 21 subsidiaries sought Chapter 11 protection
(Bankr. M.D. Fla. Case No. 14-bk-10142) in Tampa, Florida, on Aug.
29, 2014.
CRS estimated total assets of $50 million to $100 million and debt
of $10 million to $50 million. The Debtors' outstanding loan
balances to secured creditors are: Regions Bank, $15 million; JY
Creative Holdings, Inc. $6.8 million; and Intersection, LLC,
$250,000. The Debtors estimate that general unsecured claims
total $5 million.
The cases are assigned to Judge K. Rodney May.
The Debtors have tapped Shumaker, Loop & Kendrick, LLP, as
counsel.
CUE & LOPEZ: Judge to Hold Plan Confirmation Hearing Oct. 22
------------------------------------------------------------
U.S. Bankruptcy Judge Brian Tester is set to hold a hearing on
October 22 to consider approval of Cue & Lopez Construction Inc.'s
proposed plan to exit bankruptcy protection.
The bankruptcy judge last month approved Cue & Lopez's disclosure
statement outlining its reorganization plan, which provides an
estimated recovery for claims against the company.
Under the plan, claims will be paid with available funds from the
company's operations, available cash balance when the company
officially exits bankruptcy, collection of accounts receivable,
and the surrender of real properties.
A copy of Judge Tester's order dated August 14 is available for
free at http://is.gd/WnROzW
Cue & Lopez on August 14 also received court approval of the
agreement it made with Oriental Bank in connection with the plan.
Under the agreement, Oriental Bank will have a deficiency claim in
the amount of $79,631 upon the turnover of a vessel, which secures
the bank's claim.
Oriental Bank asserts a secured claim in the amount of $146,631
for the acquisition of the vessel, which is reportedly worth
$67,000, according to court filings.
Pursuant to the agreement, the bank's deficiency claim will be
paid in part by the construction company on a pro rata basis as a
general unsecured claim under Class 5 of the plan. The agreement
is available for free at http://is.gd/9s1cLd
About Cue & Lopez
San Juan, Puerto Rico-based Cue & Lopez Construction, Inc., sought
protection under Chapter 11 of the Bankruptcy Code on Oct. 4, 2013
(Case No. 13-08297, Bankr. D.P.R.). The case is assigned to Judge
Brian K. Tester.
Cue & Lopez Contractors, Inc., filed a separate Chapter 11
petition (Case No. 13-08299) on the same date.
The Debtors are represented by Charles Alfred Cuprill, Esq., at
Charles A Curpill, PSC Law Office, in San Juan, Puerto Rico. CPA
Luis R. Carrasquillo & Co., P.S.C., serves as accountant.
Cue & Lopez Construction scheduled $13,334,151 in total assets and
$17,520,089 in total liabilities. The Chapter 11 petitions were
signed by Frank F. Cue Garcia, president.
D.A.B. GROUP: Hires Goldberg Weprin as Bankruptcy Counsel
---------------------------------------------------------
D.A.B. Group LLC seeks authorization from the Hon. Shelley C.
Chapman of the U.S. Bankruptcy Court for the Southern District of
New York to employ Goldberg Weprin Finkel Goldstein LLP as
bankruptcy counsel.
The Debtor requires Goldberg Weprin to:
(a) provide the Debtor with all necessary legal advice in
connection with this bankruptcy case, as well as the
Debtor's responsibilities as a debtor-in-possession;
(b) represent the Debtor in all proceedings before the
Bankruptcy Court and the office of the U.S. Trustee;
(c) draft, prepare and file all necessary legal papers,
applications, motions, objections, adversary proceedings,
reports and plan documents on the Debtor's behalf;
(d) represent the Debtor with respect to developing and
formulating a plan of reorganization; and
(e) render all other legal services required by the Debtor in
connection with the bankruptcy case.
Goldberg Weprin will be paid at these hourly rates:
Partner $495
Associates $250-$425
Paralegal $90-$120
Goldberg Weprin will also be reimbursed for reasonable out-of-
pocket expenses incurred.
Prior to the bankruptcy filing, Goldberg Weprin received a pre-
petition retainer payment of $20,000 funded by the Debtor's
principal, Ben Zhavian, including the filing fee.
Kevin J. Nash, member of Goldberg Weprin, 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.
Goldberg Weprin can be reached at:
Kevin J. Nash, Esq.
GOLDBERG WEPRIN
FINKEL GOLDSTEIN LLP
1501 Broadway, 22nd Floor
New York, NY 10036
Tel: (212) 221-5700
About DAB Group
D.A.B. Group LLC, owner of a stalled 16-story Allen Street Hotel
project in Orchard Street, New York, sought Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 14-12057) in Manhattan on July 14, 2014,
to pursue a prompt sale of the property. The case is assigned to
Judge Shelley C. Chapman.
The property has been in the hands of a receiver since July 18,
2011. Simon J.K. Miller, of Blank Rome LLP, serves as receiver.
J. Ted Donovan, Esq., at Goldberg Weprin Finkel Goldstein LLP, in
New York, serves as counsel to the Debtor.
DAB Group said in a court filing that its property is continguous
to the commercial property owned by its affiliate, 77-79 Rivington
Street Realty LLC (Bankr. S.D.N.Y. Case No. 14-10339).
Accordingly, DAB's Chapter 11 case is being filed as a related
proceeding.
The Debtor is currently required to file its Chapter 11 plan and
disclosure statement by Nov. 12, 2014.
D.A.B. GROUP: Taps Massey Knakal as Real Estate Broker
------------------------------------------------------
D.A.B. Group LLC seeks authorization from the Hon. Shelley C.
Chapman of the U.S. Bankruptcy Court for the Southern District of
New York to employ Massey Knakal Realty Services as its real
estate broker.
The Debtor has arranged for the proposed retention of Massey
Knakal to act as the exclusive real estate broker, to
simultaneously market both the DAB Property located at 139-141
Orchard Street, New York, NY (Block 415, Lots 66 and 67), and
lease the Rivington Property located at Block 415, Lots 61 and 62,
owned by the Debtor's affiliate, 77-70 Rivington Street Realty
LLC. The dual offering will permit the emergence of a possible
single purchaser/lessee for both the DAB Property and the
Rivington Property or for the sale of the DAB Property separately.
The Debtor's application does not indicate the compensation
payable to the firm.
James P. Nelson, partner of Massey Knakal, 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.
Massey Knakal can be reached at:
James P. Nelson
MASSEY KNAKAL REALTY SERVICES
275 Madison Avenue, Third Floor
New York, NY 10016
Tel: (212) 696-2500 x 7710
E-mail: jnelson@masseyknakal.com
About DAB Group
D.A.B. Group LLC, owner of a stalled 16-story Allen Street Hotel
project in Orchard Street, New York, sought Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 14-12057) in Manhattan on July 14, 2014,
to pursue a prompt sale of the property. The case is assigned to
Judge Shelley C. Chapman.
The property has been in the hands of a receiver since July 18,
2011. Simon J.K. Miller, of Blank Rome LLP, serves as receiver.
J. Ted Donovan, Esq., at Goldberg Weprin Finkel Goldstein LLP, in
New York, serves as counsel to the Debtor.
DAB Group said in a court filing that its property is continguous
to the commercial property owned by its affiliate, 77-79 Rivington
Street Realty LLC (Bankr. S.D.N.Y. Case No. 14-10339).
Accordingly, DAB's Chapter 11 case is being filed as a related
proceeding.
The Debtor is currently required to file its Chapter 11 plan and
disclosure statement by Nov. 12, 2014.
DIREXION INVESTMENTS: Closes Five Exchange-Traded Funds
-------------------------------------------------------
Direxion Investments on Sept. 2 disclosed that the Board of
Trustees of the Direxion Shares ETF Trust has decided to liquidate
and shutter five exchange-traded funds based on the recommendation
of Rafferty Asset Management, LLC, the Trust's advisor.
Due to the Funds' inability to attract sufficient investment
assets, Rafferty believes they cannot continue to conduct their
business and operations in an economically efficient manner. As a
result, the Board concluded that liquidating and shuttering the
Funds would be in the best interests of the Funds and their
shareholders.
The Trust will close the following funds: Direxion Daily Brazil
Bear 3X Shares (BRZS), Direxion Daily FTSE Europe Bear 3X Shares
(EURZ, formerly Direxion Daily European Bear 3X Shares), Direxion
Daily Japan Bull 3X Shares (JPNS), Direxion Daily South Korea Bear
3X Shares (KORZ) and the Direxion Daily Natural Gas Related Bear
3X Shares (GASX).
Shares of the Funds will stop trading on the NYSE Arca, Inc., and
will no longer be open to purchase by investors, at the close of
regular trading on September 23, 2014. Shareholders may sell
their holdings in the Funds prior to the closing date, and those
transactions are subject to customary brokerage charges. Between
the closing date and the liquidation date, shareholders may only
be able to sell their shares to certain broker-dealers and there
is no assurance that there will be a market for the Funds during
that time period.
On September 29, 2014, the Funds will liquidate their assets and
distribute cash pro rata to shareholders who have not previously
redeemed or exchanged their shares. These payments are taxable
and will include any accrued capital gains and dividends. Each
Fund's net asset value will reflect the costs of closing the Fund
as calculated on the liquidation date. The Funds will close when
the distributions are complete.
The process of closing down and liquidating the Funds' portfolios,
scheduled to take place between September 23, 2014 and
September 29, 2014, will result in the Funds not tracking their
underlying indexes and experiencing an increase in cash holdings.
These developments may not be consistent with each Fund's
investment objective and strategy.
For more information about the liquidation and termination
process, please contact Direxion at 800-851-0511. For media
inquiries, please contact James Doyle at 973-850-7308 or
jdoyle@jcprinc.com
About Direxion Investments
Direxion Investments -- http://www.direxioninvestments.com--
managed by Rafferty Asset Management, LLC, offers highly liquid,
tactical and strategic institutional-style ETFs and Mutual Funds
for investors seeking to solve for better investment outcomes.
The firm provides a wide range of index-based products that offer
directional options, magnified exposure and long-term, rules-based
strategies. Founded in 1997, the company has approximately $8.4
billion in assets under management as of June 30, 2014.
DRIVE TRAIN TRUCK: Case Summary & 17 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Drive Train Truck Parts Corp.
763 Blue Point Road
Holtsville, NY 11742
Case No.: 14-74053
Chapter 11 Petition Date: September 2, 2014
Court: United States Bankruptcy Court
Eastern District of New York (Central Islip)
Judge: Hon. Louis A. Scarcella
Debtor's Counsel: Ronald D Weiss, Esq.
RONALD D. WEISS, P.C.
734 Walt Whitman Road
Suite 203, Melville, NY 11747
Tel: (631) 271-3737
Fax: (631) 271-3784
Email: weiss@ny-bankruptcy.com
Total Assets: $1.41 million
Total Liabilities: $787,437
The petition was signed by George Hallahan, Sr., president and
100% shareholder.
A list of the Debtor's 17 largest unsecured creditors is available
for free at http://bankrupt.com/misc/nyeb14-74053.pdf
EASTERN HILLS: Judge Confirms Chapter 11 Reorganization Plan
------------------------------------------------------------
A federal judge confirmed the plan proposed by Eastern Hills
Country Club to exit bankruptcy protection.
Judge Stacey Jernigan of the U.S. Bankruptcy Court for the
Northern District of Texas signed off on an order confirming
Eastern Hills' Chapter 11 reorganization plan, which proposes to
pay creditors in full.
Creditors of Eastern Hills will be paid from the proceeds of the
sale of its golf course, according to the plan. Early this year,
Robert Yaquinto, Jr., Eastern Hills' bankruptcy trustee, received
court approval to sell its principal asset for a gross price of
$4.05 million.
A copy of the confirmation order is available without charge at
http://is.gd/QzbnDu
About Eastern Hills
Eastern Hills Country Club filed a bare-bones Chapter 11 petition
(Bankr. N.D. Tex. Case No. 13-33123) in Dallas on June 21, 2013.
The Debtor estimated at least $10 million in assets and less than
$1 million in liabilities. The petition was signed by David
Harvey as president. Richard W. Ward, Esq., serves as the
Debtor's counsel.
According to Web site, http://www.easternhillscc.com,the Eastern
Hills Country Club in Garland Texas, was established in 1954 and
boasts a Ralph Plummer designed 18-hole golf course, 5,000 sq.
foot putting green, practice facility, and driving range. The
golf course has been home of the Texas Womens Open since 2011.
Judge Stacey G. Jernigan presides over the bankruptcy case.
Robert Yaquinto, Jr., has been named the Chapter 11 trustee of
Eastern Hills Country Club. He is represented by his firm,
Sherman & Yaquinto, LLP.
On April 15, 2014, the Court granted the trustee approval to sell
the principal asset of the Debtor.
EAT AT JOE'S: Reports $5.62-Mil. Profit in Q2 of 2014
-----------------------------------------------------
Eat at Joe's, Ltd., filed its quarterly report on Form 10-Q,
reporting a net income of $5.62 million on $729,776 of total
revenue for the three months ended June 30, 2014, compared with a
net loss of $57,264 on $604,068 of total revenue for the same
period in 2013.
The Company's balance sheet at June 30, 2014, showed
$18.67 million in total assets, $10.78 million in total
liabilities, and stockholders' equity of $7.9 million.
A copy of the Form 10-Q is available at:
http://is.gd/FZsmSe
About Eat at Joe's
Scarsdale, N.Y.-based Eat at Joe's, Ltd., presently owns and
operates one theme restaurant located in Philadelphia,
Pennsylvania.
Eat at Joe's reported a net loss of $1.38 million in 2013
following net income of $2.84 million on in 2012.
Robison, Hill & Co., in Salt Lake City, Utah, 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
raising substantial doubt about its ability to continue as a going
concern.
ENERGEN CORP: Moody's Lowers Sr. Unsecured Note Rating to 'Ba2'
---------------------------------------------------------------
Moody's downgraded the senior unsecured note rating for Energen
Corporation to Ba2 following the company's announcement that it
replaced its old unsecured revolving credit facility with a new
$1.5 billion secured credit facility. The company's senior notes
remain unsecured. The downgrade of Energen's senior note rating to
Ba2 reflects the superior claim that the new credit facility has
on the company's assets after a default. Energen's Ba1 Corporate
Family Rating was affirmed and the outlook remains negative.
"Moody's downgrade of the senior notes was driven by a higher loss
given default for the senior notes after the company closed on a
new senior secured bank credit facility," said Stuart Miller,
Moody's Vice President. "Despite the significant debt reduction
after the divestiture of Alabama Gas Corporation, unless reserves
and production growth accelerates, Energen's rating remains
vulnerable to a downgrade. As a result, Moody's affirmed Energen's
Corporate Family Rating and maintained a negative outlook."
Rating Actions
Corporate Family Rating: Affirmed at Ba1
Probability of Default: Affirmed at Ba1-PD
Senior Unsecured Notes: Downgraded to Ba2 (LGD5-86%)
Senior Unsecured MTNs: Downgraded to Ba2 (LGD5-86%)
Senior Unsecured Shelf: Downgraded to (P)Ba2
Senior Unsecured MTN Program: Downgraded to (P)Ba2
Preferred Shelf: Downgraded to (P)B1
Speculative Grade Liquidity Rating: Affirmed at SGL-2
Outlook: Negative
Ratings Rationale
Energen's scale, as measured by reserves and production, more
closely resembles a Ba2 company. The sale of Alabama Gas
Corporation (Alagasco, A2 stable) generated roughly $1.1 billion
in after tax proceeds, which are expected to be used to reduce
debt. As a result, Moody's project Energen's leverage ratios to
fall to about $16,000 per average daily barrel of production and
to about $4 per proved developed barrel of reserves. The leverage
reduction helps to offset the loss of Alagasco's stable cash flow
and provides support to Energen's Ba1 rating. However, Energen
plans to borrow under its revolving credit facility to fund an
aggressive expenditure program in its Permian Basin acreage.
Therefore, leverage could creep higher unless the company is
successful in improving its capital efficiency and reducing its
finding and development (F&D) costs. F&D costs in 2013 were in
excess of $26 per Boe, a level that exceeds every other Permian
Basin focused producer that Moody's rate. To stabilize Energen's
rating at Ba1, Moody's would be looking for the company to develop
a trend of production and reserve growth without an increase in
leverage. To accomplish this, Energen will need to lower its F&D
costs. . Reported drilling and completion results in the second
quarter of 2014 are encouraging, but a longer track record needs
to be reported.
Energen has good liquidity. From a cash flow perspective, Moody's
project Energen will out spend cash flow by $500 to $700 million
through the end of 2015. The new secured credit facility provides
access to nearly $1.5 billion of liquidity to fund this shortfall.
The credit facility has a $2.1 billion borrowing base that is in
excess of the committed amount of $1.5 billion. Given this excess,
Energen could sell assets to generate additional liquidity despite
mortgages on roughly 80% of the PV-9 value of the company's
reserves. There is expected to be sufficient cushion under the
financial covenants to allow for the full amount of the credit
facility to be borrowed.
The rating at Energen could be downgraded if Moody's believes the
growth in production rates and booked reserves will not keep pace
with increased borrowings. Should debt to average daily production
rise above $20,000 per Boe or debt to proved developed reserves
rise above $5.00 per Boe, the ratings may be downgraded. However,
if Moody's believes that capital efficiency has improved to the
point where leverage can be maintained below these targets, the
rating outlook could be stabilized. An upgrade is unlikely without
significant growth in scale or significant reduction in leverage.
The principal methodology used in this rating was Global
Independent Exploration and Production Industry published in
December 2011. 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 Birmingham, Alabama, Energen Corporation is
engaged in the exploration and production of crude oil and natural
gas.
FOREX INTERNATIONAL: Has $24K Net Loss for Q2 Ended June 30
-----------------------------------------------------------
Forex International Trading Corp. filed its quarterly report on
Form 10-Q, disclosing a net loss of $24,098 on $30,000 of total
revenues for the three months ended June 30, 2014, compared with
a net loss of $134,862 on $40,000 of total revenues for the same
period in 2013.
The Company's balance sheet at June 30, 2014, showed
$1.09 million in total assets, $912,686 in total liabilities, and
a stockholders' equity of $173,322.
The Company has generated revenues in the six months ended June
30, 2014, but has had recurring losses from operations since
inception, and has a negative working capital as of June 30,
2014. As of June 30, 2014, the Company has an accumulated deficit
of $2,150,245. As the Company continues to incur losses,
transition to profitability is dependent upon achieving a level of
revenues adequate to support the Company's cost structure. The
Company may never achieve profitability, and unless and until it
does, the Company will continue to need to raise additional cash.
This raises substantial doubt about the Company's ability to
continue as a going concern.
A copy of the Form 10-Q is available at:
http://is.gd/n5yV3P
Headquartered in New York, N.Y., Forex International Trading Corp.
operates an offshore advanced online trading platform for Forex
markets to non U.S. residents. The Company focuses on providing
individual and institutional investors with a platform for buying
and selling currencies, precious metals and commodity futures.
GIGA-TRONICS INC: Posts $443K Net Loss for June 28 Quarter
----------------------------------------------------------
Giga-tronics Incorporated filed its quarterly report on Form 10-Q
disclosing a net loss of $443,000 on $4.51 million of net sales
for the three months ended June 28, 2014, compared with a net loss
of $681,000 on $3.04 million of net sales for the same period last
year.
The Company's balance sheet at June 30, 2014, showed $8.92 million
in total assets, $8.38 million in total liabilities, and total
stockholders' equity of $540,000.
A copy of the Form 10-Q is available at:
http://is.gd/qteXhA
Giga-tronics is a publicly held company, traded on the NASDAQ
Capital Market under the symbol "GIGA". Giga-tronics produces
instruments, subsystems and sophisticated microwave components
that have broad applications in defense electronics, aeronautics
and wireless telecommunications.
GREAT LAKES AVIATION: Has $1.59-Mil. Net Loss in Q2 of 2014
-----------------------------------------------------------
Great Lakes Aviation, Ltd., filed its quarterly report on Form 10-
Q, reporting a net loss of $1.59 million on $14.86 million of
total revenue for the three months ended June 30, 2014, compared
with a net income of $145,878 on $30.62 million of total revenue
for the same period in 2013.
The Company's balance sheet at June 30, 2014, showed $67.96
million in total assets, $35.23 million in total liabilities, and
stockholders' equity of $32.74 million.
The Company has experienced curtailment of operations has had a
negative impact on revenue, operating income and operating cash
flows which is expected to continue. Due to this negative impact
on revenue, operating income and operating cash flows, the Company
does not expect to be in compliance with the debt to earnings
coverage covenant in its credit agreement. Until the Company is
able to re-staff a sufficient number of qualified pilots to
restore service to suspended markets, it expects that it will not
have sufficient liquidity to service its existing debt
obligations.
A copy of the Form 10-Q is available at:
http://is.gd/B96Msg
Great Lakes Aviation, Ltd., provides scheduled air service to its
hubs under the Great Lakes brand. The Cheyenne, Wyoming-based
Company provides passenger service to 30 airports in nine states
in the U.S. effective April 1, 2014.
GREEN INNOVATIONS: Has $925K Net Loss in Quarter Ending June 30
---------------------------------------------------------------
Green Innovations Ltd. filed its quarterly report on Form 10-Q,
reporting a net loss of $925,117 on $768,867 of total revenue for
the three months ended June 30, 2014, compared with a net loss of
$869,464 on $437,940 of total revenue for the same period in 2013.
The Company's balance sheet at June 30, 2014, showed $2.88 million
in total assets, $5.16 million in total liabilities, and a
stockholders' deficit of $2.28 million.
A copy of the Form 10-Q is available:
http://is.gd/Hzid15
About Green Innovations
Cape Coral, Fla.-based Green Innovations Ltd. (OTC QB: GNIN) (OTC
BB: GNIN) was formed to develop an Internet social website that
catered to wine lovers. In August 2012, with the acquisition of
Green Hygienics, Inc., the Company changed its operations to the
business of importing and distributing bamboo-based hygienic
products. The prior operations of the Company have been abandoned
effective with the acquisition of Green Hygienics.
GTX INC: Reports $10.94-Mil. Net Loss in Q2 Ended June 30
---------------------------------------------------------
GTx, Inc., filed its quarterly report on Form 10-Q, disclosing a
net loss of $10.94 million for the three months ended June 30,
2014, compared with a net loss of $12.8 million for the same
period in 2013.
The Company's balance sheet at June 30, 2014, showed $19.13
million in total assets, $3.85 million in total liabilities and
total stockholders' equity of $15.28 million.
A copy of the Form 10-Q is available at:
http://is.gd/rZkWC4
GTx, Inc., a biopharmaceutical company, is engaged in the
discovery, development, and commercialization of small molecules
for the treatment of cancer, cancer supportive care, and other
serious medical conditions. It is involved in developing Enobosarm
3 mg, an androgen receptor modulator, which is in Phase III
clinical trial for the prevention and treatment of muscle wasting
in patients with non-small cell lung cancer; and Enobosarm 9 mg,
which is in Phase II clinical trial for the treatment of AR
positive and ER positive metastatic breast cancer in women. The
company also develops Capesaris, an oral nonsteroidal estrogen
receptor alpha agonist that is in Phase II clinical trial for
secondary hormonal therapy in men with metastatic or nonmetastatic
castration resistant prostate cancer. GTx, Inc. was founded in
1997 and is headquartered in Memphis, Tennessee.
HBC HOLDINGS: Moody's Assigns First Time Caa1 Corp. Family Rating
-----------------------------------------------------------------
Moody's Investors Service assigned a Caa1 corporate family rating
and a Caa1-PD probability of default rating to HBC Holdings LLC
(d.b.a. Hardware Holdings), and a Caa2(LGD4) rating to the
company's proposed $155 million first lien senior secured term
loan due 2021. The rating outlook is stable. This is the first
time Moody's has assigned ratings to this issuer.
Hardware Holdings has entered into a definitive agreement to
acquire Jones Stephens, an Alabama-based specialty plumbing
products distributor. The acquisition will be financed with
proceeds from the proposed $155 million first lien senior secured
term loan, borrowings under the new $40 million revolving credit
facility due 2019 and cash on hand. The proceeds will also be used
to repay Hardware Holdings' existing debt.
The following rating actions have been taken:
Issuer: HBC Holdings LLC:
Corporate family rating, assigned Caa1;
Probability of default rating, assigned Caa1-PD;
Issuer: HBC Holdings LLC (along with co-issuers):
Proposed $155 million first lien senior secured term loan due
2021, assigned Caa2(LGD4);
The rating outlook is stable.
Ratings Rationale
The Caa1 corporate family rating reflects the company's small size
and scale compared to peers, acquisition-driven growth strategy
and the associated potential integration and synergy realization
risks, very high pro forma debt leverage, low operating margins
inherent to the distribution business model, limited time in the
company's current configuration, and potential long-term
shareholder-friendly actions given the private equity ownership.
Moody's estimate pro forma Moody's adjusted debt-to-EBITDA at June
30, 2014 to be approximately 7.0x, taking into consideration the
improving run rate performance of Handy Holdings (which the
company acquired in 2013). Handy Holdings' operating losses are
narrowing, but its very low operating margins are dilutive to
Hardware Holdings' overall profitability. The company's rating is
supported by the variety of its product offerings and distribution
channels, solid product sourcing capabilities, and low customer
concentration. Additionally, the rating is supported by the
positive trends in the repair and remodeling market and the
expected cost savings to be achieved through consolidation and
procurement initiatives in connection with recent and contemplated
acquisitions.
The company has an adequate liquidity profile, supported by the
proposed $40 million ABL revolving credit facility due 2019, $17
million of which is expected to be available at closing of the
transaction. However, liquidity is constrained by limited cash
balances and Moody's expectation for low free cash flow
generation, as well as by a maximum permitted term loan leverage
covenant that includes quarterly step-downs.
The stable outlook reflects Moody's expectation for successful
integration of recent and contemplated acquisitions, modest EBITDA
improvement through cost synergy realizations and associated
declines in adjusted debt leverage in the intermediate term.
The ratings could be pressured if cost synergy achievements take
longer than anticipated, if product volumes and revenues decline,
causing earnings to weaken such that leverage remains elevated for
an extended period of time, or if liquidity deteriorates.
The ratings could be upgraded if the company builds size and
scale, improves profitability and earnings through synergy
realizations such that leverage declines and is sustained below
6.0x, and generates positive free cash flow, while successfully
integrating acquisitions and maintaining sufficient liquidity.
The principal methodology used in this rating was Global
Distribution & Supply Chain Services published in November 2011.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.
Hardware Holdings, founded in 1971 and headquartered in Cranbury,
New Jersey, is a multi-channel distributor of hardware, plumbing
and household products. The company's product offering consists of
over 75,000 SKUs and distribution channels include local retail
stores, industrial suppliers, national retailers, food and drug
stores. In 2012, Hardware Holdings was acquired by Littlejohn &
Co. (the sponsor). The company's pro forma revenues for the LTM
period ending June 30, 2014 including recent and contemplated
acquisitions are approximately $440 million.
INDEX RECOVERY GROUP: Returns to Ch. 11 With $35MM Debt
-------------------------------------------------------
Index Recovery Group, LP, a managed futures investor formerly
known as SPhinX Managed Futures Index Fund, LP, has sought
bankruptcy protection with $35 million of liabilities.
The Debtor said it has no real property assets. It has a
financial account of with Merrill Lynch Pierce Fenner and Smith
Inc. of $13.8 million and 37,828.8019 shares of "S Shares" issued
by SPhinX Managed Futures Fund SPC of "unknown" value as its loan
assets.
The Company said in its formal schedules that it has total debt of
$35.5 million, none of which are secured. Debt is mostly on
account of the 2005 redemption of limited partnership interests:
Claimant Amount
-------- ------
Mandabach, Paul J. $230,655
Masonic Hall & Asylum Fund $1,294,362
Masonic Medical Research Laboratory $3,132,271
Merrill Lynch, Pierce, Fenner & Smith $28,781,711
-----------
$33,439,000
About Index Recovery Group
Index Recovery Group, LP, sought Chapter 11 protection (Bankr.
N.D.N.Y. Case No. 14-61434) in Utica, New York, on Sept. 2, 2014.
The case is assigned to Judge Diane Davis.
The deadline for governmental entities to file claims is March 2,
2015.
The Debtor is represented by Jeffrey A. Dove, Esq., at Menter,
Rudin & Trivelpiece, P.C. The firm also represented the Debtor in
its prior Chapter 11 bankruptcy case filed by the Debtor in its
prior Chapter 11 bankruptcy case on Oct. 19, 2007 (Bankr. N.D.N.Y.
Case No. 07-63679-6-SDG).
INDEX RECOVERY GROUP: Proposes Menter Rudin as Counsel
------------------------------------------------------
Index Recovery Group, LP, seeks approval from the bankruptcy court
to hire Menter, Rudin & Trivelpiece, P.C., as attorneys.
Menter Rudein intends to bill the Debtor at its normal hourly
rates for reorganization work. The rates in effect for attorneys
are $190 to $345 per hour, the rate for full-time law clerks is
$120 per hour, and the rate for paralegals is $120 per hour.
Menter Rudin represented the Debtor in its prior Chapter 11
bankruptcy case filed by the Debtor in its prior Chapter 11
bankruptcy case on Oct. 19, 2007 (Bankr. N.D.N.Y. Case No.
07-63679-6-SDG).
To the best of the Debtor's knowledge, Menter Rudin has no
connection with the Debtor's creditors or any other party-in-
interest or their respective attorneys or accountants.
INDEX RECOVERY: Case Summary & 22 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Index Recovery Group, LP
fka SPhinX Managed Futures Index Fund, LP
135 South LaSalle Street, Eighth Floor
IL4-135-08-62
Chicago, IL 60603
Case No.: 14-61434
Type of Business: Managed Futures Investor
Chapter 11 Petition Date: September 2, 2014
Court: United States Bankruptcy Court
Northern District of New York (Utica)
Judge: Hon. Diane Davis
Debtor's Counsel: Jeffrey A. Dove, Esq.
MENTER, RUDIN & TRIVELPIECE, P.C.
308 Maltbie Street, Suite 200
Syracuse, NY 13204-1498
Tel: (315) 474-7541
Fax: (315) 474-4040
Email: jdove@menterlaw.com
Total Assets: $13.76 million
Total Liabilities: $35.48 million
The petition was signed by Irina Logovinsky, manager of ML Sphinx,
LLC, manager of Index GP, LLC, general partner of Index Recovery
Company, LP.
List of Debtor's 22 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Merrill Lynch, Pierce, Fenner Partnership $28,781,711
& Smith Inc. Interest
Gregory Distler
2 World Financial Center
38th Floor, New York
Masonic Medical Research Partnership $3,132,271
Laboratory Interest
Dr. Charles Antzelevitch
Executive Director
2150 Bleecker Street
Utica, NY
Masonic Hall & Asylum Fund Partnership $1,294,361
Richard P. Thomas Interest
2150 Bleecker Street
Utica, NY
Coleman, Rogers K. & Mary Lou Partnership $590,230
Rogers K. Coleman Interest
5205 Cornanche Vista Trail
Granbury, TX
Davis, John P. & Carol A. Partnership $494,532
JTWROS Interest
John P & Carol A. Davis
191 Keats Drive
Mooresville, NC
Refco Alternative Investments Management Fees $264,686
LLC
Richard C. Butt, president
One World Financial Center
Tower A, 22
New York
Steven M. Mizel, Roth IRA Partnersihip $248,155
Interest
Mandabach, Paul J. Partnership $230,655
Interest
Alston & Bird LLP Legal Services $160,463
Vickery, David R. & Catherine S. Partnership $143,741
Interest
Huberman, Jean-Pierre Partnership $46,090
Interest
Lininger, Mark Partnership $45,322
Interest
Citi Hedge Fund Services Services $25,000
North America, Inc. Provided
Stevens & Lee PC Legal Services $12,543
The William Penn Foundation Partnership $4,829
Interest
Les Schwab Profit Sharing Partnership $1,400
Retirement Trust Interest
Iowa West Foundation Partnership $1,113
Interest
Washington State University Partnership $1,052
Foundation Interest
Rochester Institute of Partnership $1,001
Technology Interest
Michigan State University Partnership $990
Foundation Interest
Howell, Mace David III Partnership $534
Interest
Howell, M. Dane Partnership $368
Interest
KRYOSPHERE INC: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Kryosphere, Inc.
3515 Lake Breeze Lane
Gainesville, GA 30506
Case No.: 14-22080
Chapter 11 Petition Date: September 2, 2014
Court: United States Bankruptcy Court
Northern District of Georgia (Gainesville)
Debtor's Counsel: Jimmy C. Luke, Esq.
MARTIN BAGWELL LUKE, P.C.
Suite 1225, 400 Northridge Road
Atlanta, GA 30350
Tel: (404) 467-5867
Fax: (678) 218-0396
Email: jluke@mbllawfirm.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by John O. Norton, chief executive
officer.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/ganb14-22080.pdf
LDR INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: LDR Industries, LLC
600 North Kilbourn Avenue
Chicago, IL 60624
Case No.: 14-32138
Chapter 11 Petition Date: September 2, 2014
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Hon. Pamela S. Hollis
Debtor's Counsel: Stephen T. Bobo, Esq.
REED SMITH LLP
10 South Wacker Drive, Suite 4000
Chicago, IL 60606
Tel: 312 207-6480
Fax: 312 207-6400
Email: sbobo@reedsmith.com
- and -
Aaron B Chapin, Esq.
REED SMITH LLP
10 S. Wacker Drive, 40th Floor
Chicago, IL 60606
Tel: (312) - 2072452
Email: achapin@reedsmith.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by William Underwood, president and chief
executive officer.
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
U.S. Customs Government Debt $4,854,733
6650 Telecom Dr.
Suite 100
Indianapolis, IN 46278
Winvest Trade Debt $276,470
Attn: Yvonne Gao
Building A12, D Area, Democratic
Village, Western Industrial Zone,
Shajing Town, Bao'an District,
Shenzhen, China
Tel:: 0755 29484892-801
Email: yvonnegao2012@126.com
Hq Trade Debt $211,552
Jinmahe Branch Xuzhuo
Economic & Techincal
Sizen Trade Debt $125,574
Zhejiang Minmetals Sanhe I/E Trade Debt $100,263
Pannext Trade Debt $99,483
Langfang Pannext Pipe Fitting
Xiamen Runner Trade Debt $67,940
Wellmade Trade Debt $65,609
Storm Trade Debt $58,937
Cixi Storm Showers Co. Ltd.
E-Z Weld Inc Trade Debt $54,811
Ningbo Runner Trade Debt $35,433
Flexible Staffing Trade Debt $34,539
Central States Trade Debt $31,417
Jianglin Trade Debt $25,846
Packaging Industrial Zone
William H. Harvey Trade Debt $22,248
Sannuotop Trade Debt $21,239
Zoeller Company Trade Debt $20,899
Gy Trade Debt $17,554
Yang Metal Co., Ltd. Ningbo
Genova Products Trade Debt $17,460
Tri State Logistics Trade Debt $16,678
LEHMAN BROTHERS: To Seek Opportunities to Monetize Unsec. Claims
----------------------------------------------------------------
Lehman Brothers Holdings Inc. on Aug. 28 disclosed that it intends
to explore monetization opportunities related to certain remaining
allowed general unsecured claims against Lehman Brothers Inc. held
by Lehman and certain of its controlled affiliates. There is no
assurance that Lehman will proceed with any such opportunities.
Lehman is represented in its chapter 11 cases by Weil, Gotshal &
Manges LLP.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33
billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
MORNINGSTAR MARKETPLACE: Can Use Cash Collateral Thru Jan. 2015
---------------------------------------------------------------
The Honorable Mary D. France of the United States Bankruptcy Court
for the Middle District of Pennsylvania entered on
August 28, 2014, a first amended final stipulated order
authorizing Morningstar Marketplace, LTD's use of cash collateral
through January 30, 2015.
The stipulation was entered between the Debtor and Manufacturers
and Traders Trust Company, as duly appointed Trustee under the
Trust Indenture for the holders of the York County Industrial
Development Authority Mortgage Revenue Bonds (Morningstar Solar
LLC Project) Series 2010.
M&T filed an emergency motion on March 14, 2014, to prohibit use
of property belonging to M&T or, in the alternative, for an order
prohibiting the continued unauthorized use of cash collateral
pursuant to Section 363(e) of the Bankruptcy Code, terminating the
automatic stay pursuant to Section 362(d) of the Bankruptcy Code,
and Federal Rule of Bankruptcy Procedure 4001(a).
As of the Petition Date, the Debtor was obligated and indebted to
M&T in the approximate amount of $3,350,000, without accounting
for recovery, if any, from the Debt Service Reserve Fund claim to
which is expressly reserved by the parties, together with accrued
and unpaid interest thereon, costs and expenses, including
trustee's fees and attorneys' fees
M&T and the Debtor agree that the Debtor may use Cash Collateral
through January 30, 2015, in the amounts set forth on a monthly
basis in the Budget with an aggregate monthly variance of 10% per
line permitted except that the Debtor may exceed the monthly 10%
variance for utilities, insurance, small tools, equipment and
supplies so long as the total being expended does not exceed the
aggregate line item of the Budget. A copy of the Operating Budget
from August 2014 to January 2015 is available for free at:
http://bankrupt.com/misc/Morningstar_Budget_08282014.pdf
Judge France directed the Debtor to make a monthly adequate
protection payment to M&T in the amount of $7,500 commencing with
a payment to be received by August 15, 2014, and to be received on
or before the 15th of each successive month.
The Debtor's authority to use Cash Collateral pursuant to the
Stipulation will immediately terminate without further order,
notice or hearing, upon the occurrence of certain events,
including (i) in the event that, on or before January 30, 2015,
the parties do not jointly submit an amended Final Cash Collateral
Order authorizing the use of Cash Collateral, or enter into a
written and executed Stipulation between the Debtor and M&T
authorizing the use of Cash Collateral after January 30, 2015;
(ii) The conversion of the Debtor's Chapter 11 case to one under
Chapter 7 of the Code; and (iii) the dismissal of the Debtor's
bankruptcy case.
The Court will convene a hearing on January 27, 2015, at 9:30
a.m., with respect to the continued use of Cash Collateral.
About Morningstar Marketplace
Morningstar Marketplace, LTD, operator of a flea market business
in St. Thomas, Pennsylvania, filed a Chapter 11 bankruptcy
petition (Bankr. M.D. Pa. Case No. 14-00451) in Harrisburg on Feb.
3, 2014. Judge Mary D France presides over the case. Attorneys
at Smigel, Anderson & Sacks, LLP serve as counsel to the Debtor.
The Debtor estimated $100 million to $500 million in assets and
liabilities.
NEW LIFE INT'L: Hires Decosimo as Accountant
--------------------------------------------
New Life International seeks authorization from the U.S.
Bankruptcy Court for the Middle District of Tennessee to employ
Joseph Decosimo and Company, PLLC ("Decosimo") as accountant.
The Debtor requires Decosimo to:
(a) prepare and file federal and state tax returns and the
appropriate forms which are to accompany such returns;
(b) assist the Debtor in meeting all reporting requirements
with states in which Debtor has conducted business in the
years prior to the filing of the Chapter 11 petition; and
(c) in general, perform all other financial and accounting
services for the Debtor which may be necessary and
appropriate for the Debtor to liquidate its assets and wind
down its operations, under applicable law and the Plan.
For these services Decosimo will charge the Debtor a fixed fee of
$13,000. Any accounting work other than that necessary to
accomplish the above filings and reporting will be charged at a
rate of $170 per hour.
Decosimo will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Prior to the petition date, Decosimo provided auditing, accounting
and reporting services to the Debtor, for which Decosimo was paid
pre-petition. As of the petition date, the Debtor was current
with Decosimo, and Decosimo is not a creditor of the Debtor.
Decosimo has requested a retainer of $5,000 for the engagement.
Ken E. Lowery, principal and member of Decosimo, 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 Middle District of Tennessee will hold a hearing
on the motion on Sept. 23, 2014, at 9:00 a.m. Objections, if any,
are due Sept. 15, 2014.
Decosimo can be reached at:
Ken E. Lowery
JOSEPH DECOSIMO AND COMPANY, PLLC
5214 Maryland Way, Suite 307
Brentwood, TN 37027
Tel: (615) 292-7135
Fax: (615) 292-7169
E-mail: kenlowery@decosimo.com
About New Life
New Life International, a religious corporation originally
incorporated under the name "World Bible Society", sought Chapter
11 bankruptcy protection (Bankr. M.D. Tenn. Case No. 13-bk-10974)
in Nashville, Tennessee, on Dec. 31, 2013.
The Debtor disclosed $44,651,301 in assets and $46,362,805 in
liabilities as of the Chapter 11 filing.
NLI's sources of revenue include donations of goods, money and
other property, investment earnings, sale of Christian-themed
merchandise and earnings from other real estate and operating
entities. Other names used by the Debtor are the National
Community Foundation, The New Life Group, and Band Angels.
The Debtor has tapped Gullett Sanford Robinson & Martin, PLLC as
attorneys and Kraft CPAs Turnaround & Restructuring Group, PLLC,
as financial consultant.
The U.S. Trustee for Region 8 appointed an official committee of
unsecured creditors consisting of Robert T. Abbotts, Dorothy F.
Mack, James D. Rice, Richard M. Taylor, and Sharon L. Upton-Rice.
Bradley, Arant, Boult, Cumming LLP serves as counsel to the
Committee.
NORTH AMERICAN LIFTING: Moody's Rates $190MM 2nd Lien Loan 'Caa1'
-----------------------------------------------------------------
Moody's Investors Service affirmed North American Lifting
Holdings, Inc.'s (dba TNT Crane & Rigging, Inc.) B2 Corporate
Family Rating and B2-PD Probability of Default Rating. Moody's
also affirmed the B1 ratings on the company's $465 million first
lien term loan and $75 million first lien revolving credit
facility as well as the Caa1 rating on the $190 million second
lien term loan. The rating outlook is stable.
The $465 million first lien term loan includes a $65 million
proposed incremental facility and the $190 million second lien
term loan includes a $20 million incremental facility. The
proceeds will be used for the acquisition of Stampede Crane &
Rigging -- energy focused lifting services business in Western
Canada -- and to term out the company's revolving credit facility
which was utilized for the acquisition of Rent-A-Crane. The
acquisitions are de-leveraging as the purchase multiples are lower
than the company's historical debt leverage resulting in a Moody's
adjusted pro forma debt to EBITDA of 6x as compared to 6.2x for
the last twelve month (LTM) period ended June 30, 2014.
The following ratings were affirmed:
Corporate Family Rating, affirmed at B2;
Probability of Default Rating, affirmed at B2-PD;
$75 million first lien revolving credit facility due 2018,
affirmed at B1 (LGD3);
$465 million first lien term loan (includes $65 million
incremental term loan) due 2020, affirmed at B1 (LGD3);
$190 million second lien term loan (includes $20 million
incremental term loan) due 2021, affirmed Caa1 (LGD5);
The rating outlook is stable.
Ratings Rationale
The B2 Corporate Family Rating reflects TNT Crane & Rigging's
aggressive balance sheet management that has resulted in a high
Moody's adjusted debt leverage of around 6x. Moody's expects debt
leverage to decline below 6x over the next 12-18 months as
synergies from the recent acquisitions take hold. Moreover, the B2
Corporate Family Rating is constrained by the company's low
interest coverage (EBIT/interest expense) of 1.1x and limited free
cash flow generation with free cash flow to debt of around 5% over
the next 12-18 months. TNT Crane & Rigging has been using debt as
a financing vehicle for its recent acquisitions as its free cash
flow generation has been negative. Additionally, the B2 Corporate
Family Rating considers the company's small revenue base of around
$280 million for the LTM period ended June 30, 2014.
The B2 Corporate Family Rating benefits from TNT Crane & Rigging's
recurring revenue stream as 70% of the company's revenues are
related to turnaround and maintenance work. Moreover, the B2
rating is supported by the company's widely diversified end
markets as a downturn in one segment could be offset by a positive
performance in another segment. As a percent of revenues
exploration and production (E&P) represents 23%, Refining 16%,
Power 13% and Petrochemical 11%, all other markets are less than
10%. In part because of the company's broad end market reach, TNT
Crane & Rigging has moderate customer concentration with top ten
customers representing about 25% of revenues and no customer
representing more than 4% of revenues. In addition, the B2
Corporate Family Rating recognizes TNT Crane & Rigging's good
liquidity profile that is supported by a $75 million revolving
credit facility (expected to be fully available during 2015) and
covenant-lite structure of the credit facilities.
The stable outlook reflects Moody's expectation that the company's
credit metrics will improve in 2015.
The ratings could be downgraded if the company is not able to
delever below 6 times over the next 12-18 months, if free cash
flow generation continues to be negative, and interest coverage
(EBIT/interest expense) falls below 1x on a sustained basis.
Moreover, if the company decides to engage in shareholder friendly
policies or major acquisitions that weaken credit metrics, the
ratings could be downgraded.
While unlikely in the near term, the ratings could be upgraded if
the company increases its revenue size, deleverages below 4.5
times and generates consistent positive free cash flow/debt of
above 8%.
The principal methodology used in this rating was the Global
Equipment and Automobile Rental Industry Methodology published in
December 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.
TNT Crane and Rigging, Inc. is a pure-play operated & maintained
lifting services provider in North America focused on the energy
infrastructure, upstream and industrial end markets with revenues
for the LTM period ended June 30, 2014 of $280 million.
NYTEX ENERGY: Whitley Penn Raises Going Concern Doubt
-----------------------------------------------------
Nytex Energy Holdings, Inc., filed with the U.S. Securities and
Exchange Commission on Aug. 14, 2014, its annual report on Form
10-K for the year ended Dec. 31, 2013.
Whitley Penn LLP expressed substantial doubt about the Company's
ability to continue as a going concern, citing that the Company
will need additional working capital to fund operations.
The Company reported a net loss of $2.68 million on $930,158 of
total revenues in 2013, compared with a net loss of $5.16 million
on $6.01 million of net sales in 2012.
The Company's balance sheet at Dec. 31, 2013, showed $4.36 million
in total assets, $1.03 million in total liabilities, $3.72 million
in preferred stock and stockholders' deficit of $395,058.
A copy of the Form 10-K is available at:
http://is.gd/6pzK59
About NYTEX Energy
Located in Dallas, Texas, Nytex Energy Holdings, Inc., is an
energy holding company with operations centralized in two
subsidiaries, Francis Drilling Fluids, Ltd. ("FDF") and NYTEX
Petroleum, Inc. ("NYTEX Petroleum"). FDF is a 35 year old full-
service provider of drilling, completion and specialized fluids
and specialty additives; technical and environmental support
services; industrial cleaning services; equipment rentals; and
transportation, handling and storage of fluids and dry products
for the oil and gas industry. NYTEX Petroleum, Inc., is an
exploration and production company focusing on early stage
development of minor oil and gas resource plays within the United
States.
The Company's balance sheet at Sept. 30, 2013, showed $8.02
million in total assets, $2.73 million in total liabilities, $4.76
million in mezzanine equity and $519,124 in total stockholders'
equity.
NYTEX Energy reported a net loss of $5.15 million in 2012, as
compared with net income of $16.75 million in 2011.
As reported by the TCR on May 8, 2014, NYTEX Energy has delayed
the filing of its annual report on Form 10-K for the year ended
Dec. 31, 2013.
"Due to limited financial resources, limited staff availability,
and the need to focus on operational and capital raising matters,
the process of compiling and disseminating the information
required to be included in the Form 10-K for the relevant fiscal
year cannot be completed without incurring undue hardship and
expense," the Company said.
OXFORD RESOURCE: Incurs $3.36-Mil. Net Loss in June 30 Quarter
--------------------------------------------------------------
Oxford Resource Partners, LP, filed its quarterly report on Form
10-Q, disclosing a net loss of $3.36 million on $82 million of
total revenues for the three months ended June 30, 2014, compared
to a net loss of $4.13 million on $88.12 million of total revenues
for the same period last year.
The Company's balance sheet at June 30, 2014, showed
$207.87 million in total assets, $231.92 million in total
liabilities and a total stockholders' deficit of $24.05 million.
A copy of the Form 10-Q is available at:
http://is.gd/9VtgVP
About Oxford Resource
Columbus, Ohio-based Oxford Resource Resource Partners, LP, is a
low-cost producer of high value steam coal, and is the largest
producer of surface mined coal in Ohio.
The Company reported a net loss of $20.2 million on $287.0 million
of revenues for the nine months ended Sept. 30, 2012, compared
with a net loss of $4.0 million on $304.1 million of revenues for
the same period of 2011. As of March 31, 2013, the Company had
$227.91 million in total assets, $222.60 million in total
liabilities and $5.30 million in total partners' capital.
PASTAZIOS PIZZA: Case Summary & 7 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Pastazios Pizza, Inc
5026 Addison Circle
Addison, TX 75001
Case No.: 14-34324
Chapter 11 Petition Date: September 2, 2014
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Hon. Harlin DeWayne Hale
Debtor's Counsel: Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER, ATTORNEY AT LAW
8140 Walnut Hill Ln. Ste. 301
Dallas, TX 75231
Tel: (972) 503-4033
Fax: (972) 503-4034
Email: joyce@joycelindauer.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Danny Deari, owner.
A list of the Debtor's seven largest unsecured creditors is
available for free at http://bankrupt.com/misc/txnb14-34324.pdf
PHOENIX PAYMENT: Taps Bederson LLP as Accountants
-------------------------------------------------
Phoenix Payment Systems, Inc., aka Electronic Payment Systems or
EPX, filed a motion with the U.S. Bankruptcy Court for the
District of Delaware seeking to employ Bederson LLP as its
accountants.
As accountants, the firm will be tasked to provide these services:
a. Prepare tax returns;
b. Review the Debtor's books and records to determine the
existence of preferences, fraudulent conveyances or other
monies owed to the Debtor's estate; and
c. Assisting in the prosecution of adversary proceedings.
Charles N. Persing -- cpersing@bederson.com -- CPA/CFF, CIRA, CFE,
CVA, a member of Bederson, attests that the firm is a
"disinterested person" as the term as defined in Section 101(14)
of the Bankruptcy Code.
The firm's standard rates are:
Position Rates/hr
-------- --------
Partners $365 to $555
Outside Consultants $300
Directors $315
Managers $310
Tax Managers $250
Supervisor $245
Senior Accountants $240
Technology IT Director $260
Technology IT Specialist $150 to $235
Semi Sr. Accountants $200
Staff Accountants $165
Para Professionals $150
Hearing on the motion was set for September 3, 2014.
About Phoenix Payment
Founded in 2004, Phoenix Payment Systems, Inc., aka Electronic
Payment Systems, aka EPX, is an international payment processor
with corporate headquarters in Wilmington, Delaware, and
technology headquarters in Phoenix, Arizona. It provides
acceptance, processing, support, authorization and settlement
services for credit card, debit card and e-check payments.
Providing processing services at more than 8,700 locations
worldwide, PPS processed, in multiple currencies, 280 million
transactions in 2013 and expects to process 400 million in 2014.
Phoenix Payment Systems sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case No. 14-11848) on Aug. 4,
2014, to quickly sell its assets.
As of the Petition Date, the Debtor had total outstanding
liabilities and other obligations of $16.6 million and 9.8 million
shares of outstanding preferred and common stock. Debt to secured
creditor The Bancorp Bank is estimated at $6.2 million.
Judge Mary F. Walrath presides over the case.
The Debtor's attorneys are Richard J. Bernard, Esq., at Foley &
Lardner LLP, in New York; and Mark D. Collins, Esq., Russell
Siberglied, Esq., Zachary I Shapiro, Esq., and Marisa A.
Terranova, Esq., at Richards Layton & Finger, P.A., in Wilmington,
Delaware. The Debtor's banker and financial advisor is Raymond
James & Associates, Inc., while Bederson, LLC, is the Debtor's
accountant. PMCM, LLC, provides advisory services and executive
leadership to the Debtor. The Debtor's claims and noticing agent
is Omni Management Group, LLC.
QUANTUM FOODS: Private Sale of Equipment for $75,000 Approved
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware entered an
order (i) approving Quantum Foods LLC's entry into an asset
purchase agreement with Asian Food Solutions, Inc., a Florida
Corporation, for $75,000; and (ii) authorizing the private sale of
the Debtor's equipment located at facilities pursuant to the
parties' asset purchase agreement, which is dated July 11, 2014.
Asian Food purchased all of the Debtor's interests in the Debtor's
inventory that is located at its facility in Bolingbrook,
Illinois.
About Quantum Foods
Founded in 1990 and headquartered in Bolingbrook, Illinois,
Quantum Foods, LLC -- http://www.quantumfoods.com-- provides
protein products made from beef, poultry and pork.
Quantum Foods LLC and its affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 14-10318) on Feb. 18, 2014, to
facilitate the sale of substantially all their business to CTI
Foods Holding Co., LLC.
The Debtors' primary secured indebtedness totals $50.2 million,
owing to lenders led by Crystal Financial, LLC, as administrative
and collateral agent.
Quantum Foods is being advised in its restructuring by Daniel J.
McGuire, Esq., Gregory M. Gartland, Esq., and Caitlin S. Barr,
Esq., at Winston & Strawn as counsel; M. Blake Cleary, Esq.,
Kenneth J. Enos, Esq., and Andrew Magaziner, Esq., at Young,
Conaway, Stargatt & Taylor, LLP, serve as local counsel. City
Capital Advisors is the investment banker. FTI Consulting, Inc.
also serves as advisor. BMC Group is the claims and notice agent.
The U.S. Trustee for Region 3 appointed five members to the
official committee of unsecured creditors in the case. The
Committee is seeking to retain Triton Capital Partners, Ltd. as
financial advisor; and Mark D. Collins, Esq., Russell C.
Silberglied, Esq., Michael J. Merchant, Esq., Christopher M.
Samis, Esq., and Robert C. Maddox, Esq., at Richards, Layton &
Finger, P.A. as counsel.
Raging Bull is represented in the case by Van C. Durrer II, Esq.,
at Skadden Arps Slate Meagher & Flom LLP. Crystal Finance LLC is
represented by David S. Berman, Esq., at Riemer & Braunstein LLP.
QUANTUM FOODS: Private Sale of Inventory & Books for $300K Okayed
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware entered an
order (i) approving Quantum Foods LLC's entry into an agreement
for the private sale of certain inventory, books and records with
West Liberty Foods, L.L.C., for $300,000; and (ii) authorizing the
private sale of the Debtor's property pursuant to the parties'
Asset Purchase Agreement dated as of June 11, 2014.
The Purchased Assets are composed of rights, title and interest in
all electronic books and records in the Debtor's possession, which
include the Debtor's customer list, sale records and product
formulations.
As of the Closing Date, West Liberty will accept and assume, and
fulfill all liabilities and obligations arising out or relating to
the Purchased Assets. West Liberty agrees to direct its employees
and independent contractors to take actions requested by the
Debtor in connection with the preparation, removal and loading of
the inventory sold to Asian Foods Solutions, Inc.
About Quantum Foods
Founded in 1990 and headquartered in Bolingbrook, Illinois,
Quantum Foods, LLC -- http://www.quantumfoods.com-- provides
protein products made from beef, poultry and pork.
Quantum Foods LLC and its affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 14-10318) on Feb. 18, 2014, to
facilitate the sale of substantially all their business to CTI
Foods Holding Co., LLC.
The Debtors' primary secured indebtedness totals $50.2 million,
owing to lenders led by Crystal Financial, LLC, as administrative
and collateral agent.
Quantum Foods is being advised in its restructuring by Daniel J.
McGuire, Esq., Gregory M. Gartland, Esq., and Caitlin S. Barr,
Esq., at Winston & Strawn as counsel; M. Blake Cleary, Esq.,
Kenneth J. Enos, Esq., and Andrew Magaziner, Esq., at Young,
Conaway, Stargatt & Taylor, LLP, serve as local counsel. City
Capital Advisors is the investment banker. FTI Consulting, Inc.
also serves as advisor. BMC Group is the claims and notice agent.
The U.S. Trustee for Region 3 appointed five members to the
official committee of unsecured creditors in the case. The
Committee is seeking to retain Triton Capital Partners, Ltd. as
financial advisor; and Mark D. Collins, Esq., Russell C.
Silberglied, Esq., Michael J. Merchant, Esq., Christopher M.
Samis, Esq., and Robert C. Maddox, Esq., at Richards, Layton &
Finger, P.A. as counsel.
Raging Bull is represented in the case by Van C. Durrer II, Esq.,
at Skadden Arps Slate Meagher & Flom LLP. Crystal Finance LLC is
represented by David S. Berman, Esq., at Riemer & Braunstein LLP.
QUARTZ HILL: Creditors' Bid for Dismissal Granted
-------------------------------------------------
Bankruptcy Judge A. Jay Cristol in early August entered an order
dismissing the Chapter 11 cases of Quartz Hill Mining, LLC, and
Superior Gold, LLC, with prejudice to the Debtors filing a
petition under any chapter of the Bankruptcy Code in any United
States Bankruptcy Court for a period of one year.
Dismissal was sought by secured creditors the Estate of William B.
Kemper and Marjorie Robbins Daggett.
In his conclusions of law, Judge Cristol stated:
-- IMPROPER VENUE. Venue is governed by 28 U.S.C. Sec. 1408.
Section 1408 requires that a debtor have a domicile, residence,
principal place of business or principal assets in the district
for at least 180 days prior to the commencement of the action.
Those requirements have not been met in this Chapter 11 case.
Although Debtors' petitions, signed by Attorney Moffa, represent
that there is an affiliate bankruptcy pending in this district,
the Debtors have abandoned this representation. There is no
pending affiliate bankruptcy in this district as defined in 11
U.S.C. Sec. 101(2). Debtors argue instead that their power of
attorney's presence in Florida delivered venue. The Court finds
this argument unpersuasive. If a power of attorney could create
venue, any debtor at any instance would create venue on the eve of
filing bankruptcy and be capable of forum shopping even though the
four recited concepts of venue (domicile, residence, principal
place of business or principal assets) exist elsewhere. Finally,
Debtors' argue that venue belonged in Miami as the Debtors' "nerve
center" was in Miami via the power of attorney. The Court rejects
Debtor's "nerve center" argument. A nerve center is best defined
as the principal place of business. As stated above, the location
of a power of attorney is not the principal place of business in
this case. Debtors have no place of business, let alone a
principal place of business, in Florida. Thus, under the simple
concepts of venue, this Chapter 11 case will be dismissed.
-- BAD FAITH. Cause for dismissal under 11 U.S.C. Sec. 1112 is
determined on the basis of the "totality of the circumstances."
In re Kitchens 702 F.2d 885 (11th. Cir. 1983). Causal dismissal
includes bad faith. "A comprehensive definition of good faith is
not practical. Broadly speaking, the basic inquiry should be
whether or not under the circumstances of the case there has been
an abuse of the provisions, purposes or spirit of (the chapter) in
the proposal." 9 Collier on Bankruptcy para. 9.20 at 319 (14th ed.
1978). The totality of the circumstances concept is best
exemplified by Phoenix Piccadilly Ltd. v. Life Insurance Company
of Virginia, 849 F.2d 1393 (11th. Cir. 1988) in which "bad faith"
may be imputed by certain criteria. The elements recited in
Phoenix Piccadilly are: (I) debtor has only one asset, the
property, in which it does not hold legal title [mortgagees hold
legal title]; (ii) debtor has few unsecured creditors whose claims
are small in relation to the claims of the secured creditors;
(iii) debtor has few employees; (iv) property is the subject of a
foreclosure action as a result of arrearages on the debt; (v)
debtor's financial problems involve a dispute between the debtor
and the secured creditors which can be resolved in the pending
state court action; and (vi) the timing of debtor's filing
evidences an intent to delay or frustrate the legitimate efforts
of the debtor's secured creditors' ability to enforce their
rights. Phoenix Piccadilly at 1394-1395. These Chapter 11
petitions present grounds for dismissal under the principles of
Phoenix Piccadilly Ltd. v. Life Insurance Company of Virginia 849
F.2d 1393 (11th Cir. 1988).
-- ONE ASSET. Debtors are Colorado limited liability
companies, who have only one primary asset: the Colorado Property.
-- FEW UNSECURED CREDITORS. The majority of the unsecured debt
in this case is to insiders or professionals defending Creditors'
claims to sell the Property. These debts are relatively small in
comparison to the secured liquidated debt owed to Creditors.
-- NO EMPLOYEES. The Debtors' reports indicate they have no
employees here. The reports further reflect that the Debtors are
non-operating businesses. In addition to the lack of employees,
these Debtors have no financial records, no bank accounts or other
indicia of an operating business.
-- SUBJECT TO FORECLOSURE ACTION. The Colorado Litigation and
the 2009 judgment amounted to more than $1,490,000 which the
Creditors seek to satisfy through a sheriff's sale of the
Property, which had been scheduled for March 31, 2014. The sale
is analogous to a foreclosure sale of a mortgaged debt.
-- ONE-ON-ONE DISPUTE THAT CAN BE HANDLED IN THE STATE FORUM.
The majority of the Debtors' debt is owed to the Creditors. This
is a one-on-one dispute which was removed from the Colorado state
courts to a Miami bankruptcy court. Debtors have filed two
adversaries against the Creditors [Adv. No. 14-1328 and Adv. No.
14-1315] and one Objection to Claims in Case No. 09-11958-BKC-AJC.
These actions merely seek to use this Court to relitigate
adverse state court judgments. Such attempts are in bad faith. In
re C-TC 9th Avenue Partnership,113 F.3d 1304 (2nd Cir. 1997).
Debtors' petitions represent single asset-single creditor
disputes.
-- TIMING EVIDENCES DELAY. The Debtors' timing of the
bankruptcy filings, within weeks of an adverse state court
judgment, to apparently avoid posting a supersedeas bond on appeal
to subvert the sheriff's sale, are indicia of bad faith In re
Leavitt, 171 F.3d 1219 (9th Cir. 1999). Instead of filing a
supersedeas bond, the Debtors filed the petitions herein to stay
the sale of the Property. The filing of Chapter 11 on the eve of a
foreclosure sale is itself evidence of bad faith. Albany Partners
Ltd. v. Westbrook (In re Albany Partners, Ltd.), 749 F.2d 670
(11th Cir. 1984). Under such circumstances, when the Chapter 11
petitions are filed at the very moment that state court litigation
has taken a turn for the worse and foreclosure is imminent, a
bankruptcy court may dismiss a bad faith filing on an interested
party's motion or dismiss. In re Winshall Settlor's Trust, 758
F.2d 1136, 1137 (6th Cir. 1985).
-- OTHER FACTORS. Failure to timely pay taxes under 11 U.S.C.
1112(b)(4)(I) is cause or one of the "circumstances" which lead to
dismissal. The Debtors have failed to pay taxes and the tax debt
continues to accrue. Additionally, Debtors' forum shopping and
attempts to manipulate venue requirements to file this case in a
jurisdiction distant from their Colorado Property and their
Colorado creditors is frowned upon. Debtors filed their Chapter 11
petitions to delay a pending sheriff's sale and avoid the posting
of a supersedeas bond to obtain a stay pending appeal. Such
actions purposely and effectively delayed and harassed Creditors,
causing needless, repetitive and expensive litigation.
According to Judge Cristol, in light of the foregoing, it is the
Debtors' burden to establish that their petitions were filed in
good faith. In Re Integrated Telecom Express, Inc. 384 F.3d 108
(10th Cir. 2004). However, after reviewing the Debtors' post
hearing submissions, particularly their proposed order, the Court
believes the Debtors have failed to persuade the Court this case
was filed in good faith. The Court believes these jointly
administered Chapter 11 proceedings have been filed in bad faith
and should be dismissed accordingly. The criteria for dismissal
for bad faith have met. Albany Partners, 749 F.2d at 670; Marsch
v. Marsch 36 F.3d 825 (9th Cir. 1994).
A full-text copy of the Dismissal Order is available for free at:
http://bankrupt.com/misc/Quartz_Hill_Dismissal_Order.pdf
About Quartz Hill
Quartz Hill Mining, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Case No. 14-15419, Bankr. S.D.Fla.) on March 7,
2014. The case was initially assigned to Judge Robert A. Mark,
but later transferred to Judge A. Jay Cristol's chambers. The
Debtor is represented by Robert P. Charbonneau, Esq., and
Jacqueline Calderin, Esq., at Ehrenstein Charbonneau Calderin, in
Miami, Florida. The Debtor's special counsel is John A. Moffa,
Esq., at Moffa & Bonacquisti, P.A., in Plantation, Florida. The
Debtor said it has $58 million in assets and $7.5 million in
debts.
Affiliate Superior Gold, LLC, also sought Chapter 11 protection.
The judge approved the joint administration of the two cases.
QUARTZ HILL: Seeks Reconsideration of Dismissal Order
-----------------------------------------------------
Quartz Hill Mining, LLC and Superior Gold, LLC, ask the U.S.
Bankruptcy Court for the Southern District of Florida, to:
(1) enter an order transferring their Chapter 11 cases to the
Bankruptcy Court for the District of Colorado; and
(2) amend the order dismissing their Chapter 11 cases with
prejudice to comport with the evidence of record and
resolve the unanswered questions presented; or, in the
alternative
(3) enter an order granting the Debtors a stay pending appeal
of the dismissal order.
Bankruptcy Judge A. Jay Cristol on Aug. 1, 2014 granted the motion
filed by secured creditors the Estate of William B. Kemper and
Marjorie Robbins Daggett for the dismissal of Quartz Hill and
Superior Gold's Chapter 11 cases.
Counsel to the Debtors, John A. Moffa, Esq., at Moffa &
Bonacquisti, P.A., points out that in the Dismissal Order, the
Court never took into consideration that the Court's own orders in
the case of Merendon Mining (Nevada), Inc. (Case 09-11958-BKC-AJC)
were the bases for the filing of Quartz Hill and Superior Gold's
cases in the Southern District of Florida, Miami Division. Since
the Court refused to accept any evidence, it must have made
conclusory assumptions that ignore the critical distinctions
between this case and the ordinary bad faith case. The bad faith
arguments center around the assertion that the "Debtors have only
one asset which is the Colorado real property which is the subject
of long standing Colorado litigation and pending foreclosure," and
that the Debtors' "petitions were filed to prevent a sheriffs'
sale of the Debtors' real property . . .[and] to avoid posting a
supercedeas bond in Gilpin County Colorado." 8 See, Motion to
Dismiss par. 17b, d-f. What the Dismissal Order fails to address
is whether Kemper/Daggett is even a secured creditor. It is
without dispute that Kemper/Daggett does NOT hold a claim against
these Debtors other than as an alleged lien creditor in the real
property. The Debtors seek a Court determination of whether
Kemper/Daggett is indeed a lien creditor. This Court has not
answered this question.
Mr. Moffa argues that had the Court taken evidence:
* the Debtors believe they would have been able to demonstrate
that, in fact, their assets are comprehensive in nature, including
over 150 mining claims, equipment, machinery, inventory, finished
and unfinished gold and other tangible assets;
* the Court would have been able to consider the Debtors'
efforts at obtaining financing that would be contingent upon
affording the protections available to a Chapter 11 DIP lender;
* the Debtors would have demonstrated the viability of setting
aside significant parcels for development as well as for potential
sale or joint ventures for recovery of raw material;
* the Debtors may have been able to demonstrate to the Court
that this case has a reasonable likelihood of reorganization; and
* the Debtors may have been able to demonstrate that
Kemper/Daggett was not a creditor of these bankruptcy estates and
was not entitled to even hold a lien on the real property.
The Debtors assert that a real question of law remains unanswered,
that being: whether when real property which is owned by a non-
debtor entity is declared to be property of a bankruptcy estate by
an Order which is nunc pro tunc to the date of the Petition can be
encumbered by a purported lien recorded against the non-debtor
entity which previously held title to the real property? The
Debtors believe that answer to this unanswered question is: NO.
Further, according to Mr. Moffa, based on the total lack of
evidence submitted and considered by the Court, the Debtors
contend that there is no basis to have dismissed this case with a
one-year prejudice period from filing a bankruptcy case anywhere
in the United States, especially in light of the Court having
(albeit momentarily) granted the Motion to Transfer Venue.
A full-text copy of the Motion for Reconsideration is available
for free at:
http://bankrupt.com/misc/Quartz_Hill_Dismissal_Recons.pdf
About Quartz Hill
Quartz Hill Mining, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Case No. 14-15419, Bankr. S.D.Fla.) on March 7,
2014. The case was initially assigned to Judge Robert A. Mark,
but later transferred to Judge A. Jay Cristol's chambers. The
Debtor is represented by Robert P. Charbonneau, Esq., and
Jacqueline Calderin, Esq., at Ehrenstein Charbonneau Calderin, in
Miami, Florida. The Debtor's special counsel is John A. Moffa,
Esq., at Moffa & Bonacquisti, P.A., in Plantation, Florida. The
Debtor said it has $58 million in assets and $7.5 million in
debts.
Affiliate Superior Gold, LLC, also sought Chapter 11 protection.
The judge approved the joint administration of the two cases.
REALOGY GROUP: Moody's Affirms 'B2' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service affirmed the credit ratings of Realogy
Group LLC, including the B2 Corporate Family rating ("CFR"), B2-PD
Probability of Default rating ("PDR"), Ba3 senior secured 1st
lien, B3 senior secured 1.5 lien and Caa1 senior unsecured
ratings. The speculative grade liquidity rating was affirmed at
SGL-2. The ratings outlook was revised to positive from stable.
Ratings Rationale
"We expect Realogy to apply free cash flow to reduce debt in 2015
and 2016, leading to improved financial metrics, although
acquisitions and uncertain existing home sales prospects could
slow the pace," noted Edmond DeForest, Moody's Senior Credit
Officer.
The rating affirmations reflect Moody's expectation of 2% to 4%
annual revenue growth and the application of free cash flow of at
least $300 million toward debt reduction and acquisitions. High
cost fixed rate bonds become callable in 2015 and 2016, and
refinancing or repaying them would impact both earnings and free
cash flow positively. Moody's modest revenue growth expectations
are limited by current residential real estate brokerage market
conditions and risks, including limited inventory, strict mortgage
finance criteria, declining participation of non-traditional cash
buyers (private equity) and tepid improvement in employment and
wages. Better than anticipated revenue growth driven by some
combination of rising existing unit home sales and average prices,
mortgage finance market improvements, the return of the first time
buyer and broker count increases could lead to higher ratings.
Liquidity is considered good.
The positive ratings outlook reflects Moody's anticipation that
Debt to EBITDA (all financial metrics reflect Moody's standard
adjustments) will improve to about 5 times over the next year from
modest EBITDA growth and expected debt repayment. The rating
outlook incorporates the expectation that Realogy may use a
portion of its free cash flow to purchase brokerage operations or
other related residential real estate businesses. An upgrade is
possible if Moody's comes to expect revenue growth above 5% and
free cash flow above $400 million to fuel accelerated debt
repayment, leading to expectations for debt to EBITDA approaching
4.5 times and free cash flow to debt sustained above 8%. The
ratings could be downgraded if revenue or free cash flow decline
such that Moody's anticipates debt to EBITDA will remain above 6
times and free cash flow below $100 million.
Affirmations:
Corporate Family Rating, B2
Probability of Default Rating, B2-PD
Speculative Grade Liquidity Rating, SGL-2
Senior Secured 1st Lien, Ba3 (LGD2)
Senior Secured 1.5 Lien, B3 (LGD5)
Senior Unsecured, Caa1 (LGD5)
Outlook Actions:
Outlook, Changed to Positive from Stable
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.
Realogy is a leading global provider of real estate and relocation
services. The company operates in four segments: real estate
franchise services, company owned real estate brokerage services,
relocation services and title and settlement services. The
franchise brand portfolio includes Century 21, Coldwell Banker,
Coldwell Banker Commercial, ERA, Sotheby's International Realty
and Better Homes and Gardens Real Estate. Moody's expects 2015
revenues of about $5.6 billion.
RENASCENT INC: Bankruptcy Court Enters Final Decree Closing Case
----------------------------------------------------------------
The Bankruptcy Court entered a final decree closing the Chapter 11
case of Renascent, Inc.
The Court also ordered that the Debtor is released from all
dischargeable debts and liabilities, except as provided in the
Plan and order confirming Plan.
The Debtor, in its application dated Aug. 15, 2014, stated that
the Second Amended Plan of Reorganization has been substantially
consummated. The Plan was confirmed Jan. 13, 2012.
On July 24, 2014, the Court authorized the Debtor to modify its
confirmed Plan.
All ballots voted to accepted the Plan, according to Jon R.
Binney, Esq., counsel for the Debtor.
The Debtor's Second Amended Plan of Reorganization contemplates a
combination of:
a. the development and sale of the Debtor's real estate (81 &
83 Bell Crossing); and
b. continuing claims against the State of Montana and Ravalli
County, continuing claims in Adversary #11-00045 against
Countrywide Home Loans, Inc.; BAC Home Loans Servicing LP
fka. Countrywide Home Loans, Servicing, LP; Thornburg
Mortgage Securities Trust 2007-3; Recontrust Company NA;
Mortgage Electronic Registration System, Inc.
A copy of the Second Amended Disclosure Statement is available for
free at http://bankrupt.com/misc/renascentinc.doc229.pdf
About Renascent Inc.
Victor, Montana-based Renascent, Inc., filed for Chapter 11
protection (Bankr. D. Mont. Case No. 10-62358) on Sept. 29, 2010.
At the time of the filing, the Debtor owned two large tracts of
property in Ravalli County, Montana. This property was sold in
two sales for $2.5 million on July 14, 2001. The Debtor also
owned a 170-acre parcel of land consisting of two tracts of
contiguous land near Stevensville, Montana (83 Bell Crossing and
81 Bell Crossing).
Jon R. Binney, Esq., at Binney Law Firm, P.C., in Missoula,
Montana, represents the Debtor. David Markette, Esq., and Dustin
Chouinard, at Markette & Chouinard, serve as the Debtor's special
counsel. There was no official committee appointed in the
Debtor's case. The Company disclosed $13,131,199 in assets and
$7,278,420 in liabilities as of the Chapter 11 filing.
In a court-approved stipulation, Renascent, Inc. and the Office of
the United States Trustee agreed to appoint Ross P. Richardson as
special litigation master.
REVSTONE INDUSTRIES: Stuart Maue Ends Stint as Fee Examiner
-----------------------------------------------------------
The Bankruptcy Court entered an order terminating (i) appointment
of Stuart Maue as fee examiner for Revstone Industries, LLC, et
al.; and (ii) related procedures for compensation and
reimbursement of expenses for professionals.
As reported in the TCR on July 31, 2014, the Debtors asked the
Court to terminate the appointment of the fee examiner and the
related procedures for compensation and reimbursement of expenses
for professionals and consideration of fee applications, after
determining that the fee examiner is no longer necessary in the
bankruptcy cases.
According to papers filed in court, the appointment of the fee
examiner was a result of disputes over the allocation of
professionals fees. Those disputes, the court papers said, were
resolved when the Debtors, the Pension Benefit Guaranty
Corporation, the Official Committee of Unsecured Creditors of
Revstone, and Boston Finance Group, LLC, entered into the global
settlement.
About Revstone Industries et al.
Lexington, Kentucky-based Revstone Industries LLC, a maker of
truck parts, filed for Chapter 11 bankruptcy (Bankr. D. Del. Case
No. 12-13262) on Dec. 3, 2012. Judge Brendan Linehan Shannon
oversees the case. Laura Davis Jones, Esq., Timothy P. Cairns,
Esq., and Colin Robinson, Esq., at Pachulski Stang Ziehl & Jones
LLP represent Revstone. In its petition, Revstone estimated under
$50 million in assets and debts.
Affiliate Spara LLC filed its Chapter 11 petition (Bankr. D. Del.
Case No. 12-13263) on Dec. 3, 2012.
Lexington-based Greenwood Forgings, LLC (Bankr. D. Del. Case No.
13-10027) and US Tool & Engineering LLC (Bankr. D. Del. Case No.
13-10028) filed separate Chapter 11 petitions on Jan. 7, 2013.
Judge Shannon also oversees the cases.
Duane David Werb, Esq., at Werb & Sullivan, serves as bankruptcy
counsel to Greenwood and US Tool. Greenwood estimated $1 million
to $10 million in assets and $10 million to $50 million in debts.
US Tool & Engineering estimated under $1 million in assets and
$1 million to $10 million in debts. The petitions were signed by
George S. Homeister, chairman.
Metavation, also known as Hillsdale Automotive, LLC, joined parent
Revstone in Chapter 11 (Bankr. D. Del. Case No. 13-11831) on
July 22, 2013, to sell the bulk of its assets to industry rival
Dayco for $25 million, absent higher and better offers.
Metavation has tapped Pachulski as its counsel. Pachulski also
serves as counsel to Revstone and Spara. Metavation also has
tapped McDonald Hopkins PLC as special counsel, and Rust
Consulting/Omni Bankruptcy as claims agent and to provide
administrative services. Stuart Maue is fee examiner.
Mark L. Desgrosseilliers, Esq., Ericka Fredricks Johnson, Esq.,
Steven K. Kortanek, Esq., and Matthew P. Ward, Esq., at Womble
Carlyle Sandridge & Rice, LLP, represent the Official Committee of
Unsecured Creditors in Revstone's case.
Boston Finance Group, LLC, a committee member, also has hired as
counsel Gregg M. Galardi, Esq., and Sarah E. Castle, Esq., at DLA
Piper LLP.
SALEEEN AUTOMOTIVE: Reports $2.99-Mil. Income for Q2 of 2014
------------------------------------------------------------
Saleen Automotive Inc. filed its quarterly report on Form 10-Q,
reporting a net income of $2.99 million on $1.7 million of total
revenue for the three months ended June 30, 2014, compared with a
net loss of $2.44 million on $889,904 of total revenue for the
same period in 2013.
The Company's balance sheet at June 30, 2014, showed $1.38 million
in total assets, $5.91 million in total liabilities, and a
stockholders' deficit of $4.53 million.
During the three months ended June 30, 2014, the Company incurred
an operating loss of $1,603,749 and utilized $1,423,194 of cash in
operations. The Company also had a stockholders' deficit and
working capital deficit of $4,530,646 and $3,757,048,
respectively, as of June 30, 2014, and as of that date, the
Company owed $612,716 in past unpaid payroll taxes, $352,795 of
outstanding notes payable were in default and $583,150 of accounts
payable was greater than 90 days past due. These factors raise
substantial doubt about the Company's ability to continue as a
going concern.
A copy of the Form 10-Q is available:
http://is.gd/PpRYvV
Corona, Calif.-based Saleen Automotive Inc. designs, develops,
manufactures and sells high performance vehicles built from base
chassis' of Ford Mustangs, Chevrolet Camaros, and Dodge
Challengers. The Company is a low volume vehicle design,
engineering and manufacturing company focusing on the mass
customization (the process of customizing automobiles that are
mass produced by the manufacturers (Ford, Chevrolet and Dodge)) of
OEM American Sports Cars and the production of high performance
USA-engineered racing cars.
REPUBLIC POWDERED: Files for Ch. 11 Amid Asbestos Claims
--------------------------------------------------------
Republic Powdered Metals, Inc., a unit of RPM International, Inc.,
followed its parent Specialty Products Holding Corp. into Chapter
11 bankruptcy in order to file a reorganization plan that creates
a trust that would pay off asbestos claims.
Prior to the filing of its chapter 11 case, Republic, its ultimate
parent company, RPM International Inc., Specialty Products Holding
Corp. ("SPHC"), and Bondex International, Inc. entered into a
settlement term sheet with representative of Republic's current
and future asbestos claimants setting forth the parties' agreement
in principle to resolve all "Asbestos Personal Injury Claims".
The Term Sheet contemplates the filing of a consensual plan of
reorganization for Republic that will (a) provide for the creation
and funding of a trust or trusts established under section 524(g)
of the Bankruptcy Code to pay Asbestos Personal Injury Claims and
(b) permanently enjoin any entity from, among other things, taking
any action to collect, recover or receive payment of, on or with
respect to Asbestos Personal Injury Claims from certain "Protected
Parties" (as such term is defined in the Term Sheet).
Republic says it has reached an agreement in principal on the
terms of a U.S.C. 11 Section 524(g) plan of reorganization that
will fairly resolve Republic's asbestos claims.
Asbestos Claims
According to court filing, Republic was incorporated in 1963. On
May 31, 1972, it purchased the assets and assumed the liabilities
associated with the product line of the Republic Powdered Metals
Division of what is now Specialty Products Holding Corp. (SPHC).
From that time forward, Republic continued to manufacture a line
of roofing and exterior maintenance products, some of which
continued to contain asbestos until the mid- to late-1980s.
Republic was served with its first asbestos-related lawsuit in
1990. Since that time, Republic has been named in over 5,000
asbestos-related lawsuits, many of which were dismissed without
payment. The filings against Republic have been somewhat erratic
over this period; high volumes of claims were filed in 1997
(1,551) and 2000 (2,057), but relatively few claims were filed in
the years before or after. During the period between 2000 and
2010, Republic averaged approximately 140 claims per year. Since
2005, Republic has not settled any claims and many claims have
been dismissed without payment. Nonetheless, Republic has
continued to incur significant professional fees defending the
claims and it has no insurance coverage for asbestos claims.
Moreover, Republic anticipates that it will face a continuing
stream of asbestos-related lawsuits into the foreseeable future.
Many claims against Republic appear to have been the result of
name confusion with SPHC. This is likely the result of the fact
that, historically, SPHC has been known by three names: (a) from
its inception through 1971, it was known as Republic Powdered
Metals, Inc; (b) from 1971 through April 2010, it was known as
RPM, Inc.; and (c) from April 2010 it has been known as SPHC. The
remaining claims appear to have been based on Republic's
historical manufacture of certain roofing and exterior maintenance
products that contained asbestos.
RPM International is a holding company that has never sold any of
Republic's products and has not assumed liability for any of
Republic's products. Nonetheless, RPM International and/or
one or more of its affiliates have from time to time been named as
defendants in the asbestos-related lawsuits against Republic, and
those lawsuits have sought to hold RPM International and these
other entities liable for Republic's asbestos-containing products
based on theories of alter ego, successor liability and other
derivative liability theories.
Global Settlement
On July 26, 2014, Republic, the Initial Debtors (SPHC and Bondex)
and RPM International entered into a settlement term sheet with
(i) the statutory committee of asbestos personal injury claimants,
both in its capacity as the official asbestos claimants' committee
in the Initial Debtors' bankruptcy cases and in its capacity as
the ad hoc asbestos claimants' committee selected for the purpose
of negotiating a pre-packaged or prenegotiated plan of
reorganization for Republic, and counsel for each member of the
Committee both in the capacity as counsel for members of the
official asbestos claimants' committee in the Initial Debtors'
bankruptcy cases and as counsel for the members of the ad hoc
asbestos claimants' committee with respect to Republic, and (ii)
the Future Claimants' Representative, both in his capacity as the
Future Claimants' Representative appointed in the Initial Debtors'
bankruptcy cases and in his capacity as the future claimants'
representative selected by Republic and the Committee, setting
forth the parties' agreement in principle to resolve all present
and future asbestos personal injury claims related to the Initial
Debtors and Republic.
The Term Sheet contemplates that Republic will file for chapter 11
protection and pursue consummation of a consensual plan of
reorganization (the "Plan") that will provide for the creation and
funding of a trust or trusts established under Section 524(g) of
the Bankruptcy Code for the benefit of current and future asbestos
personal injury claimants of Republic. The Term Sheet also
provides that the Plan will include a permanent injunction
enjoining any entity from seeking to collect, recover or receive
payment of, on or with respect to Asbestos Personal Injury Claims
from the Protected Parties. Republic has filed for chapter 11
relief in order to implement the agreements reflected in the Term
Sheet.
First Day Motions
Republic on the Petition Date filed motions for joint
administration, to extend the automatic stay to non-debtors, and
for approval of service procedures for summons and complaints.
About Republic Powdered Metals
Republic Powdered Metals, Inc., and affiliate NMBFiL, Inc. sought
Chapter 11 protection (Bankr. D. Del. Case No. 14-12028) on Aug.
31, 2014. Republic provides exclusive products for roof and wall
restoration, including an extensive line of roof coatings. It
estimated assets of $10 million to $50 million and debt of less
than $10 million as of the bankruptcy filing.
The Debtors have sought joint administration of their Chapter 11
cases for procedural purposes only, with the chapter 11 cases of
Specialty Products Holding Corp. and Bondex International, Inc.
Specialty Products, a unit of RPM International Inc., is a
manufacturer, distributor and seller of various specialty chemical
product lines, including exterior insulating finishing systems,
powder coatings, fluorescent colorants and pigments, cleaning and
protection products, fuel additives, wood treatments and coatings
and sealants, in both the industrial and consumer markets.
Specialty and affiliate Bondex International filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 10-11780) on
May 31, 2010. The Debtors have tapped Jones Day as counsel,
Richards Layton & Finger, as co-counsel, and Logan and Company as
the claims and notice agent. Specialty estimated assets and debts
of $100 million to $500 million as of the bankruptcy filing.
REPUBLIC POWDERED: Seeks Stay of Asbestos Claims vs. Non-Debtors
----------------------------------------------------------------
Republic Powdered Metals, Inc., has filed an adversary proceeding
pursuant to Federal Rules of Bankruptcy Procedure 7001(7) and (9)
to extend and/or apply the Bankruptcy Code's automatic stay to any
efforts of entities to collect, recover, or receive payment of, on
or with respect to asbestos personal injury claims from parties
identified in a global settlement.
Republic also has filed a motion to extend and/or apply the
automatic stay that accompanies the Debtors' bankruptcy filing to
the pursuit asbestos personal injury claims by any entities
against non-debtors that are designed as protected parties.
Prior to the filing of its chapter 11 case, Republic, its ultimate
parent company, RPM International Inc., Specialty Products Holding
Corp. ("SPHC"), and Bondex International, Inc. entered into a
settlement term sheet with representative of Republic's current
and future asbestos claimants setting forth the parties' agreement
in principle to resolve all "Asbestos Personal Injury Claims".
The Term Sheet contemplates the filing of a consensual plan of
reorganization for Republic that will (a) provide for the creation
and funding of a trust or trusts established under section 524(g)
of the Bankruptcy Code to pay Asbestos Personal Injury Claims and
(b) permanently enjoin any entity from, among other things, taking
any action to collect, recover or receive payment of, on or with
respect to Asbestos Personal Injury Claims from certain "Protected
Parties" (as such term is defined in the Term Sheet).
Republic seeks to preserve the status quo while it proceeds with
efforts to confirm a consensual plan of reorganization that, if
consummated, would permanently enjoin the pursuit of such claims
against the Protected Parties.
In the motion to extend, Tyler D. Semmelman, Esq., at Richards,
Layton & Finger, P.A., explains that any purported liability of
the Protected Parties for Asbestos Personal Injury Claims is
strictly derivative of Republic's liability. He said that in view
of the imposition of the automatic stay, which has halted all
Asbestos Personal Injury Claims against Republic, the Defendants
may attempt to pursue the Asbestos Personal Injury Claims against
the Protected Parties: the Defendants may attempt to proceed with
litigation against the Protected Parties while severing Republic,
move to add the Protected Parties to pending lawsuits or attempt
to sue the Protected Parties directly.
According to Mr. Semmelman, allowing the Defendants to litigate
Asbestos Personal Injury Claims against the Protected Parties,
while Republic simultaneously attempts to obtain confirmation of a
consensual plan of reorganization that, if confirmed, would
permanently resolve that liability under the parameters of section
524(g), would defeat Congress's purpose in enacting section
524(g), compromise the integrity of the automatic stay, and result
in irreparable prejudice to Republic's estate.
For these reasons, courts, Mr. Semmelman points out, have
consistently exercised their injunctive powers under Section
105(a), in combination with the automatic stay of Section 362, to
enjoin personal liability claimants from continuing or commencing
derivative actions against non-debtors in mass-tort bankruptcies.
Courts considering the propriety of an injunction under Section
105(a) apply the traditional-four factor test for injunctions,
tailored to the unique circumstances of bankruptcy. Each of these
factors weighs decidedly in favor of the requested injunctive
relief.
According to Mr. Semmelman, with respect to the likelihood of
success on the merits, Republic has reached an agreement in
principal on the terms of a section 524(g) plan of reorganization
that will fairly resolve Republic's asbestos claims.
Additionally, if Republic obtains confirmation of that consensual
plan, all actions or claims to collect, recover or receive payment
of, on or with respect to Asbestos Personal Injury Claims from the
Protected Parties would be channeled to a trust, and the Protected
Parties would be entitled to the benefits of the related
channeling and discharge injunctions. Therefore, Republic's
prospects for a successful reorganization are strong and its
effort to equitably resolve its asbestos claims is unquestionably
in good faith -- the precise circumstances for which Congress
enacted Section 524(g).
Mr. Semmelman warns, "Failure to grant the requested injunction
would irreparably harm Republic's efforts and undercut the
integrity of the automatic stay. Under the well-established
doctrines of collateral estoppel and res judicata, there is an
acute risk that resolution of issues in ongoing litigation against
the Protected Parties based on Asbestos Personal Injury Claims
might bind Republic. In addition, because Republic likely has at
least common-law obligations to indemnify the Protected Parties,
judgments against these entities would have the effect of fixing
indemnification claims against Republic outside of these chapter
11 cases. And, these claim preclusion and indemnification issues
would also compel Republic to participate -- both through
witnesses and as de facto parties -- in every action based on the
Asbestos Personal Injury Claims, undermining the automatic stay
and distracting key personnel who would otherwise be working
toward the goal of consummating a successful reorganization.
At the same time, any harm an injunction might occasion would be
minimal, especially when weighed against the burden that ongoing
litigation against the Protected Parties in respect of Asbestos
Personal Injury Claims would place on Republic. While an
injunction might delay the Defendants' efforts to hold the
Protected Parties liable for the Asbestos Personal Injury Claims,
it is well established that mere delay is insufficient to prevent
a court from issuing an injunction. Neither can the desire of a
few claimants to jump to the front of the line -- and immediately
recover from the Protected Parties for Asbestos Personal Injury
Claims -- outweigh the public benefit that would flow to all other
current and future claimants from the global and equitable
resolution contemplated by the Term Sheet and section 524(g).
The case for an injunction is further bolstered under Third
Circuit precedent that recognizes that the mandatory stay of
section 362 extends of its own force to reach parties who share
such an identity of interest with the debtors that the debtors are
in effect the real-party defendants."
About Republic Powdered Metals
Republic Powdered Metals, Inc., and affiliate NMBFiL, Inc. sought
Chapter 11 protection (Bankr. D. Del. Case No. 14-12028) on Aug.
31, 2014. Republic provides exclusive products for roof and wall
restoration, including an extensive line of roof coatings. It
estimated assets of $10 million to $50 million and debt of less
than $10 million as of the bankruptcy filing.
The Debtors have sought joint administration of their Chapter 11
cases for procedural purposes only, with the chapter 11 cases of
Specialty Products Holding Corp. and Bondex International, Inc.
Specialty Products, a unit of RPM International Inc., is a
manufacturer, distributor and seller of various specialty chemical
product lines, including exterior insulating finishing systems,
powder coatings, fluorescent colorants and pigments, cleaning and
protection products, fuel additives, wood treatments and coatings
and sealants, in both the industrial and consumer markets.
Specialty and affiliate Bondex International filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 10-11780) on
May 31, 2010. The Debtors have tapped Jones Day as counsel,
Richards Layton & Finger, as co-counsel, and Logan and Company as
the claims and notice agent. Specialty estimated assets and debts
of $100 million to $500 million as of the bankruptcy filing.
REPUBLIC POWDERED: To Serve Summons to Claimants' Attorneys
-----------------------------------------------------------
Republic Powdered Metals, Inc., asks the bankruptcy court to enter
an order, substantially the same as the one entered in the
bankruptcy cases of Specialty Products Holding Corp. and Bondex
International, Inc., confirming that it may serve the summons and
complaint in its adversary proceeding by first class mail on the
counsel of record representing claimants in the underlying
asbestos litigation, in lieu of service directly on the many
individual claimants.
Tyler D. Semmelman, Esq., at Richards, Layton & Finger, P.A.,
explains that the address information for the Asbestos Claimants
is not readily available to Republic. However, the Asbestos
Claimants are represented by a comparatively small number of
counsel of record whose addresses are readily available.
Mr. Semmelman notes that acquiring the address information for all
of the Asbestos Claimants would require review of files maintained
by Republic's counsel to identify, if possible, their home
addresses, and then verification that the individual plaintiff's
home address is current?and, even then, this process would not
reliably result in valid addresses for all of the Asbestos
Claimants. This is not practically feasible. On the other hand,
the legal representation of the many Asbestos Claimants is
centralized in relatively few law firms.
Mr. Semmelman notes that federal courts have held that counsel of
record in related, underlying litigation are impliedly authorized
to receive service of process in adversary proceedings stemming
from mass-tort litigation, such as this one.
About Republic Powdered Metals
Republic Powdered Metals, Inc., and affiliate NMBFiL, Inc. sought
Chapter 11 protection (Bankr. D. Del. Case No. 14-12028) on Aug.
31, 2014. Republic provides exclusive products for roof and wall
restoration, including an extensive line of roof coatings. It
estimated assets of $10 million to $50 million and debt of less
than $10 million as of the bankruptcy filing.
The Debtors have sought joint administration of their Chapter 11
cases for procedural purposes only, with the chapter 11 cases of
Specialty Products Holding Corp. and Bondex International, Inc.
Specialty Products, a unit of RPM International Inc., is a
manufacturer, distributor and seller of various specialty chemical
product lines, including exterior insulating finishing systems,
powder coatings, fluorescent colorants and pigments, cleaning and
protection products, fuel additives, wood treatments and coatings
and sealants, in both the industrial and consumer markets.
Specialty and affiliate Bondex International filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 10-11780) on
May 31, 2010. The Debtors have tapped Jones Day as counsel,
Richards Layton & Finger, as co-counsel, and Logan and Company as
the claims and notice agent. Specialty estimated assets and debts
of $100 million to $500 million as of the bankruptcy filing.
RICHFIELD OIL: Reports $1.48-Mil. Net Loss for Q2 Ended June 30
----------------------------------------------------------------
Richfield Oil & Gas Company filed its quarterly report on Form 10-
Q, reporting a net loss of $1.48 million on $231,711 of total
revenue for the three months ended June 30, 2014, compared with a
net loss of $2.22 million on $305,673 of total revenue for the
same period in 2013.
The Company's balance sheet at June 30, 2014, showed
$22.54 million in total assets, $8.54 million in total
liabilities, and stockholders' equity of $14 million.
The Company has incurred substantial losses from operations
causing negative working capital, in that current liabilities
exceed current assets, and the Company has negative operating cash
flows, which raise substantial doubt about the Company's ability
to continue as a going concern. The Company sustained a net loss
for the six months ended June 30, 2014, of $4,876,043 and a net
loss for the year ended December 31, 2013, of $6,799,584, and has
an accumulated deficit of $42,880,634 as of June 30, 2014.
A copy of the Form 10-Q is available:
http://is.gd/ugo3qT
Salt Lake City-based Richfield Oil & Gas Company is an oil and gas
exploration and production company with ten projects in Utah,
Kansas, Oklahoma and Wyoming. The Company is currently producing
oil from four projects in Kansas. The Company is currently
completing one well in Juab County, Utah which the Company refers
to as the "Liberty #1 Well," and is in the completion stage of
development.
SALUBRIOUS PHARMACEUTICAL: Files Schedules of Assets & Liabilities
------------------------------------------------------------------
Salubrious Pharmaceutical LLC on August 28 filed with the U.S.
Bankruptcy Court for the Central District of California its
schedules of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $0
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $0
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $1,042,000
----------- -----------
TOTAL $0 $1,042,000
A copy of the schedules is available without charge at
http://is.gd/E64f1r
About Salubrious Pharmaceutical
Salubrious Pharmaceutical filed a Chapter 11 bankruptcy
petition (Bankr. C.D. Cal. Case No. 14-13835) in San Fernando
Valley, California, on Aug. 15, 2014. George H. Nelson, signed
the petition as manager/member. The case is assigned to
Judge Maureen Tighe.
The company tapped Timothy Quick, Esq., at the Law Offices of
Timothy K Quick, in Los Alamitos, California, as counsel.
The Woodland Hills, California-based company estimated $50 million
to $100 million in assets and less than $1 million in debt.
SHOTWELL LANDFILL: Creditor Files Second Amended Liquidation Plan
-----------------------------------------------------------------
Secured creditor LSCG Fund 18, LLC, filed with the U.S. Bankruptcy
Court for the Eastern District of North Carolina a Second Amended
Consolidated Chapter 11 Plan of Liquidation for Shotwell Landfill,
Inc., et al.
LSCG Fund says in the Second Amended Plan filed on Aug. 25, 2014,
that the Debtors' creditors are best served if the landfill
located at 4724 Smithfield Road, Wendell, North Carolina 27591,
and all of the Debtors' property are managed, marketed, and
liquidated. Within six months of the confirmation date (or at a
later time as a liquidation trustee will determine only after
consultation and approval by LSCG and the Unsecured Creditors'
Committee), the Liquidation Trustee will conduct an auction of the
property, including the Landfill.
Under the Plan, the Debtors' principals as well as the appointed
corporate restructuring officer, will be removed on the
confirmation date as officers and principals of the Debtors as
well as from the conduct of the day-to-day operation of the
Landfill, and the Liquidation Trustee -- to be approved by the
Committee and LSCG prior to the confirmation date -- will be
immediately appointed to manage, market, and liquidate the
property. Subject to approval by the Committee and LSCG, the
Liquidation Trustee will employ appropriate professional or
professionals to operate the Landfill pending its liquidation.
As the property is sold, the net proceeds will be deposited into a
liquidation trust. Once all the property has been sold, the
Liquidation Trustee will make disbursements to creditors and
equity security holders in order of their respective priorities:
first to secured creditors with an allowed secured claim on the
property sold (except for any carveout provided for General
Unsecured Claims in the Second Amended Plan), then to holders of
General Unsecured Claims, and finally to holders of equity
security interests.
Each holder of an allowed administrative expense claim or tax
claim will be paid in accordance with Section 1129(9) and as
provided herein. Each holder of an allowed general unsecured
claim will receive a Pro Rata cash distribution of any carveout
provided to the General Unsecured Claims and any net proceeds
remaining after payment of priority lienholder claims, including
LSCG's secured claim, from the sale of any of the property.
In addition, each holder of an allowed General Unsecured Claim
will receive a Pro Rata cash distribution of any net recovery,
after payment or reimbursement of litigation fees and costs, from
the adversary proceedings, and of any amount remaining in the
liquidation trust after all property has been liquidated and all
litigation resolved.
A copy of the Second Amended Plan is available for free at:
http://bankrupt.com/misc/SHOTWELLLANDFILL_783_2plan.pdf
As reported by the Troubled Company Reporter on Aug. 22, 2014, the
Court the Court rescheduled until Sept. 15, 2014, the hearing to
consider final approval of the disclosure statements explaining
the competing Chapter 11 plans. LSCG Fund, on the one hand, and
the Shotwell Landfill itself, on the other, have filed competing
Chapter 11 plans for the Debtor. The LSCG plan proposed that
proceeds resulting from the liquidation of the Landfill and all of
the Debtors' property be distributed to creditors with allowed
claims in the order of their respective priorities under the
Bankruptcy Code and other applicable law. On July 18, 2014, the
Court entered an amended order conditionally approving the LSCG
Fund's disclosure statement, as amended, and directed the Plan
proponent to file a ballot report.
On Aug. 13, 2014, Caterpillar Financial Services Corporation filed
with the Court a statement of preference pursuant to 11 U.S.C.
Section 1129(c), saying that CFSC has cast ballots accepting both
filed plans.
CFSC is represented by:
Williams Mullen
Holmes P. Harden, Esq.
301 Fayetteville Street, Suite 1700
Raleigh, North Carolina 27601
On Aug. 14, 2014, James M. Barnes filed an objection to the LSCG
Fund Plan and accompanying disclosure statement, saying that he
objects to the July Amended Disclosure Statement lacks necessary
information for Mr. Barnes and other unsecured creditors to make
an informed decision on the Plan, including any alternative plan
payments to all unsecured creditors depending on the unsecured
claims ultimately allowed by the Court.
A copy of the objection is available for free at:
http://bankrupt.com/misc/SHOTWELLLANDFILL_752_dsobj.pdf
Mr. Barnes is represented by:
Smith Debnam Narron Drake SAintsing & Myers, L.L.P.
Byron L. Saintsing, Esq.
Post Office Drawer 26268
Raleigh, NC 27611
Tel: (919) 250-2000
E-mail: bsaintsing@smithdebnamlaw.com
On Aug. 15, 2014, Shotwell Landfill filed an objection to the LSCG
Fund Plan, saying that the Plan was not proposed in good faith,
and is instead the culmination of a concerted attempt to force a
liquidation of the Debtor to the detriment of all creditors other
than LSCG Fund.
Shotwell Landfill claims in a filing dated Aug. 15 that, among
other things, the Plan proposes an unworkable and unreasonably
short liquidation process. The result of the proposed process
would be to eliminate all potential buyers other than Waste
Industries. Upon information and belief, LSCG Fund began
discussing and plotting the liquidation of the Debtor with Waste
Industries almost immediately after LSCG Fund purchased the debt
from BB&T, and has received material aid from Waste Industries in
violation of at least one non-disclosure agreement.
According to Shotwell Landfill, the Disclosure Statement is
defective and fails to provide adequate information in that it
fails to disclose the Plan's defects. Among other things, the
Disclosure Statement fails to disclose LSCG Fund's discussions,
cooperation, and agreements with Waste Industries. The Disclosure
Statement further fails to disclose that discussions with Waste
Industries and efforts to force the Debtors into liquidation have
been ongoing since shortly after LSCG purchased the debt.
A copy of the objection is available for free at:
http://bankrupt.com/misc/SHOTWELLLANDFILL_753_dsobj.pdf
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.
SIMPLEXITY LLC: Sept. 18 Hearing on Hilco Receivables Employment
----------------------------------------------------------------
The Bankruptcy will convene a hearing on Sept. 18, 2014, at 10:00
a.m., to consider Simplexity, LLC, et al.'s application to employ
Hilco Receivables, LLC as receivables servicer nunc pro tunc to
Aug. 11, 2014.
Hilco will:
1. develop and implement a collection plan for all of the
applicable accounts receivable;
2. dedicate personnel to assist the Debtor in making phone
calls and taking other actions to collect applicable accounts
receivable; and
3. manage the collection disputes on behalf of the Debtors
pursuant to settlement authority established by the Debtors.
Hilco will be entitled to receive 12% of gross cash receipts.
Except in the limited circumstances, Hilco will bear all costs and
expenses associated with the engagement.
To the best of the Debtors' knowledge, Hilco is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
About Simplexity
Simplexity, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case No. 14-10569) on March 16,
2014. The case is before Judge Kevin Gross. The Debtors'
counsel is Kenneth J. Enos, Esq., and Robert S. Brady, Esq., at
Young, Conaway, Stargatt & Taylor, LLP, in Wilmington, Delaware.
Prime Clerk LLC serves as claims and noticing agent. Simplexity
hired Rutberg & Co. as investment banker.
Simplexity LLC and Simplexity Services LLC both estimated
$10 million to $50 million in assets, and $50 million to $100
million in liabilities.
The U.S. Trustee for Region 3 appointed five members to an
official committee of unsecured creditors. Peter S. Partee, Sr.,
Esq., and Michael P. Richman, Esq., at Hunton & Williams LLP, in
New York; and Christopher A. Ward, Esq., and Shanti M. Katona,
Esq., at Polsinelli PC, in Wilmington, Delaware, represent the
Committee.
SPECIALTY HOSPITAL: Agreement on Rosenau LLP Employment Approved
----------------------------------------------------------------
Bankruptcy Court approved an agreed order authorizing Specialty
Hospital of Washington, LLC, et al., to employ Rosenau LLP as
special counsel nunc pro tunc to the Petition Date.
The agreement between the Debtors and the Official Committee of
Unsecured Creditors was intended to resolve the objections filed
by the Committee.
The Committee, in its objection, stated that the Rosenau
application did not provide any details with respect to the
specific cases in which Mr. Rosenau will provide services.
However, the Committee believes that the Debtors intend to
continue to utilize Rosenau as counsel in the matter of Sodexho
Operations v. Specialty Hospitals of America, LLC et al.
The Committee asserted that Rosenau's proposed representation as
to the Sodexho Litigation is not in the best interests of the
estates, and represents an interest adverse to the estates with
respect to the matter on which Rosenau is proposed to be employed.
The agreement provides that, among other things:
1. Except with respect to the Sodexo Litigation, the Debtors
are authorized to employ and retain Rosenau as special counsel;
2. After entry of the order, Rosenau may not represent the
Debtors in the Sodexo Litigation absent further order of the
Court.
3. Rosenau will apply for compensation for professional
services rendered and reimbursement of expenses incurred in
connection with the Debtors' chapter 11 cases.
To the best of the Debtors' knowledge, Rosenau represent no
interest adverse to the bankruptcy estates with respect to the
matters upon which they are to be engaged.
The Debtors are represented by:
PILLSBURY WINTHROP SHAW PITTMAN LLP
Patrick Potter
Dania Slim
2300 N Street, NW
Washington, DC 20037-1122
Tel: (202) 663-8000
Fax: (202) 663-8007
E-mail: patrick.potter@pillsburylaw.com
dania.slim@pillsburylaw.com
Andrew M. Troop, Esq.
1540 Broadway
New York, NY 10036-4039
Tel: (212) 858-1000
Fax: (212) 858-1500
E-mail: andrew.troop@pillsburylaw.com
The Committee is represented by:
Dylan G. Trache, Esq.
Valerie P. Morrison, Esq.
John T. Farnum, Esq.
Lauren Friend McKelvey, Esq.
WILEY REIN LLP
7925 Jones Branch Drive, Suite 6200
McLean, Virginia 22102
Tel: (703) 905-2800
About Specialty Hospital
Specialty Hospital of America LLC operates nursing home
facilities and long-term acute care hospitals.
On April 23, 2014, an involuntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 14-
10935) was filed against Specialty Hospitals of Washington, LLC
("SHDC").
Capitol Hill Group and five other alleged creditors who signed the
involuntary bankruptcy petition are represented by Stephen W.
Spence, Esq., at Phillips, Goldman & Spence, in Wilmington,
Delaware. Capitol Hill Group claims to be owed $1.66 million on a
lease for non-residential real property while another creditor,
Metropolitan Medical Group, LLC, claims $837,000 for physician
services. The petitioners assert $2.69 million in total claims.
On May 9, 2014, the Delaware court transferred the case to
Washington, D.C. (Bankr. D.C. Case No. 14-00279).
On May 21, 2014, SHDC filed an answer and consent for relief under
Chapter 11. Also on May 21, six affiliates of SHDC, including
Specialty Hospital of America, LLC filed for Chapter 11
protection. The U.S. Bankruptcy Court entered an order directing
the joint administration the cases under Specialty Hospital of
Washington, LLC, Case No. 14-00279.
The Debtors announced plans to sell all of their assets in
exchange for a $15 million debtor-in-possession loan from Silver
Point Capital, which will allow the Debtors to continue operating
through the bankruptcy process.
Specialty Hospital of America estimated between $10 million and
$50 million in assets and between $50 million and $100 million in
liabilities in its bankruptcy petition.
The Debtors are represented by Pillsbury Winthrop Shaw Pittman LLP
as counsel. Alvarez and Marsal Healthcare Industry Group, LLC,
serves as the Debtorsv financial advisor. Cain Brothers &
Company, LLC, is the Debtorsv investment banker.
The U.S. Trustee has named three members to the Official Committee
of Unsecured Creditors.
SPECIALTY PRODUCTS: Republic in Ch. 11 Amid Asbestos Claims
-----------------------------------------------------------
Republic Powdered Metals, Inc., a unit of RPM International, Inc.,
followed its parent Specialty Products Holding Corp. into Chapter
11 bankruptcy in order to file a reorganization plan that creates
a trust that would pay off asbestos claims.
Prior to the filing of its chapter 11 case, Republic, its ultimate
parent company, RPM International Inc., Specialty Products Holding
Corp. ("SPHC"), and Bondex International, Inc. entered into a
settlement term sheet with representative of Republic's current
and future asbestos claimants setting forth the parties' agreement
in principle to resolve all "Asbestos Personal Injury Claims".
The Term Sheet contemplates the filing of a consensual plan of
reorganization for Republic that will (a) provide for the creation
and funding of a trust or trusts established under section 524(g)
of the Bankruptcy Code to pay Asbestos Personal Injury Claims and
(b) permanently enjoin any entity from, among other things, taking
any action to collect, recover or receive payment of, on or with
respect to Asbestos Personal Injury Claims from certain "Protected
Parties" (as such term is defined in the Term Sheet).
Republic says it has reached an agreement in principal on the
terms of a U.S.C. 11 Section 524(g) plan of reorganization that
will fairly resolve Republic's asbestos claims.
Asbestos Claims
According to court filing, Republic was incorporated in 1963. On
May 31, 1972, it purchased the assets and assumed the liabilities
associated with the product line of the Republic Powdered Metals
Division of what is now Specialty Products Holding Corp. (SPHC).
From that time forward, Republic continued to manufacture a line
of roofing and exterior maintenance products, some of which
continued to contain asbestos until the mid- to late-1980s.
Republic was served with its first asbestos-related lawsuit in
1990. Since that time, Republic has been named in over 5,000
asbestos-related lawsuits, many of which were dismissed without
payment. The filings against Republic have been somewhat erratic
over this period; high volumes of claims were filed in 1997
(1,551) and 2000 (2,057), but relatively few claims were filed in
the years before or after. During the period between 2000 and
2010, Republic averaged approximately 140 claims per year. Since
2005, Republic has not settled any claims and many claims have
been dismissed without payment. Nonetheless, Republic has
continued to incur significant professional fees defending the
claims and it has no insurance coverage for asbestos claims.
Moreover, Republic anticipates that it will face a continuing
stream of asbestos-related lawsuits into the foreseeable future.
Many claims against Republic appear to have been the result of
name confusion with SPHC. This is likely the result of the fact
that, historically, SPHC has been known by three names: (a) from
its inception through 1971, it was known as Republic Powdered
Metals, Inc; (b) from 1971 through April 2010, it was known as
RPM, Inc.; and (c) from April 2010 it has been known as SPHC. The
remaining claims appear to have been based on Republic's
historical manufacture of certain roofing and exterior maintenance
products that contained asbestos.
RPM International is a holding company that has never sold any of
Republic's products and has not assumed liability for any of
Republic's products. Nonetheless, RPM International and/or
one or more of its affiliates have from time to time been named as
defendants in the asbestos-related lawsuits against Republic, and
those lawsuits have sought to hold RPM International and these
other entities liable for Republic's asbestos-containing products
based on theories of alter ego, successor liability and other
derivative liability theories.
Global Settlement
On July 26, 2014, Republic, the Initial Debtors (SPHC and Bondex)
and RPM International entered into a settlement term sheet with
(i) the statutory committee of asbestos personal injury claimants,
both in its capacity as the official asbestos claimants' committee
in the Initial Debtors' bankruptcy cases and in its capacity as
the ad hoc asbestos claimants' committee selected for the purpose
of negotiating a pre-packaged or prenegotiated plan of
reorganization for Republic, and counsel for each member of the
Committee both in the capacity as counsel for members of the
official asbestos claimants' committee in the Initial Debtors'
bankruptcy cases and as counsel for the members of the ad hoc
asbestos claimants' committee with respect to Republic, and (ii)
the Future Claimants' Representative, both in his capacity as the
Future Claimants' Representative appointed in the Initial Debtors'
bankruptcy cases and in his capacity as the future claimants'
representative selected by Republic and the Committee, setting
forth the parties' agreement in principle to resolve all present
and future asbestos personal injury claims related to the Initial
Debtors and Republic.
The Term Sheet contemplates that Republic will file for chapter 11
protection and pursue consummation of a consensual plan of
reorganization (the "Plan") that will provide for the creation and
funding of a trust or trusts established under Section 524(g) of
the Bankruptcy Code for the benefit of current and future asbestos
personal injury claimants of Republic. The Term Sheet also
provides that the Plan will include a permanent injunction
enjoining any entity from seeking to collect, recover or receive
payment of, on or with respect to Asbestos Personal Injury Claims
from the Protected Parties. Republic has filed for chapter 11
relief in order to implement the agreements reflected in the Term
Sheet.
First Day Motions
Republic on the Petition Date filed motions for joint
administration, to extend the automatic stay to non-debtors, and
for approval of service procedures for summons and complaints.
About Republic Powdered Metals
Republic Powdered Metals, Inc., and affiliate NMBFiL, Inc. sought
Chapter 11 protection (Bankr. D. Del. Case No. 14-12028) on Aug.
31, 2014. Republic provides exclusive products for roof and wall
restoration, including an extensive line of roof coatings. It
estimated assets of $10 million to $50 million and debt of less
than $10 million as of the bankruptcy filing.
The Debtors have sought joint administration of their Chapter 11
cases for procedural purposes only, with the chapter 11 cases of
Specialty Products Holding Corp. and Bondex International, Inc.
Specialty Products, a unit of RPM International Inc., is a
manufacturer, distributor and seller of various specialty chemical
product lines, including exterior insulating finishing systems,
powder coatings, fluorescent colorants and pigments, cleaning and
protection products, fuel additives, wood treatments and coatings
and sealants, in both the industrial and consumer markets.
Specialty and affiliate Bondex International filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 10-11780) on
May 31, 2010. The Debtors have tapped Jones Day as counsel,
Richards Layton & Finger, as co-counsel, and Logan and Company as
the claims and notice agent. Specialty estimated assets and debts
of $100 million to $500 million as of the bankruptcy filing.
SUPER BUY FURNITURE: Can Employ Cuprill-Hernandez as Attorney
-------------------------------------------------------------
Super Buy Furniture, Inc., sought and obtained authority from the
United States Bankruptcy Court for the District of Puerto Rico to
employ Charles A. Cuprill-Hernandez as attorney for the Debtor.
About Super Buy Furniture
Cidra, Puerto Rico-based Super Buy Furniture, Inc., operator of
furniture stores throughout Puerto Rico under the business name of
"Casa Pitusa Muebles y Enseres", filed a Chapter 11 bankruptcy
petition (Bankr. D.P.R. Case No. 14-05523) in Old San Juan, Puerto
Rico, on July 3, 2014.
The Company disclosed $18.2 million in assets and $26.8 million in
debt in its schedules.
The Company has tapped the firm O'Neill & Borges, in San Juan,
Puerto Rico, as counsel, and CPA Luis R. Carrasquillo & Co.,
P.S.C., as financial consultant.
SUPER BUY FURNITURE: To Tap Fiddler Gonzalez as Special Counsel
---------------------------------------------------------------
Super Buy Furniture, Inc., seeks authority from the United States
Bankruptcy Court for the District of Puerto Rico to employ Fiddler
Gonzalez & Rodriguez, PSC, as its special counsel.
FGR will represent the Debtor in labor law matters. FGR's hourly
fees are:
Attorneys $125
Paralegals $105
Law Clerks $90
Enrique R. Padro Rodriguez, Esq., at Fiddler Gonzalez & Rodriguez,
PSC, in San Juan, Puerto Rico -- epadro@fgrlaw.com -- disclosed
that other than having acted as the Debtor's labor law counsel
prior to the filing of its Chapter 11 case and being an unsecured
creditor in the case for $10,975, as a result of the performance
of said services, FGR and its members have no other connections
with the Debtor, its officers, directors and insiders, any
creditor, or other party-in-interest. He assures the Court that
neither he nor the members of FGR have any other connections with
the Debtor, its officers, directors and insiders, any creditor or
other party-in-interest.
About Super Buy Furniture
Cidra, Puerto Rico-based Super Buy Furniture, Inc., operator of
furniture stores throughout Puerto Rico under the business name of
"Casa Pitusa Muebles y Enseres", filed a Chapter 11 bankruptcy
petition (Bankr. D.P.R. Case No. 14-05523) in Old San Juan, Puerto
Rico, on July 3, 2014.
The Company disclosed $18.2 million in assets and $26.8 million in
debt in its schedules.
The Company has tapped the firm O'Neill & Borges, in San Juan,
Puerto Rico, as counsel, and CPA Luis R. Carrasquillo & Co.,
P.S.C., as financial consultant.
STOCKTON, CA: Stipulation on Stay of East Weber Property
--------------------------------------------------------
The Bankruptcy Court approved a stipulation between the City of
Stockton and Rabobank, N.A., in relation to the automatic stay
with respect to the real property commonly known as 347 East Weber
Avenue, Stockton, CA 95202, together with the rents and related
personal property.
The stipulation provides that although the property itself is not
the City's property, the automatic stay may apply to protect the
city's interests from being extinguished by RNA's foreclosure.
RBA is the beneficiary under a deed of trust dated July 3, 2007,
executed by Zachary A. Cort, as trustor, and recorded in the
Official Records of San Joaquin County of July 20, 2007,
encumbering the property.
RNA has declared a default by Borrower under the RNA loan, and RNA
sought to foreclose the RNA deed of trust.
The Debtor is represented by:
Thomas G. Mouzes, Esq.
Robert J. Wood, Esq.
BOUTIN JONES INC.
555 Capitol Mall, Suite 1500
Sacramento, CA 95814-4603
Tel: (916) 321-444
Fax: (916) 441-7597
E-mail: tmouzes@boutinjones.com
rjwood@boutinjones.com
About Stockton, Calif.
The City of Stockton, California, filed a Chapter 9 petition
(Bankr. E.D. Cal. Case No. 12-32118) in Sacramento on June 28,
2012, becoming the largest city to seek creditor protection in
U.S. history. The city was forced to file for bankruptcy after
talks with bondholders and labor unions failed. Stockton
estimated more than $1 billion in assets and in excess of
$500 million in liabilities.
The city, with a population of about 300,000, identified the
California Public Employees Retirement System as the largest
unsecured creditor with a claim of $147.5 million for unfunded
pension costs. In second place is Wells Fargo Bank NA as trustee
for $124.3 million in pension obligation bonds. The list of
largest creditors includes $119.2 million owing on four other
series of bonds.
The city is being represented by Marc A. Levinson, Esq., and John
W. Killeen, Esq., at Orrick, Herrington & Sutcliffe LLP. The
petition was signed by Robert Deis, city manager.
Mr. Levinson also represented the city of Vallejo, Cal. in its
2008 bankruptcy. Vallejo filed for protection under Chapter 9
(Bankr. E.D. Cal. Case No. 08-26813) on May 23, 2008, estimating
$500 million to $1 billion in assets and $100 million to $500
million in debts in its petition. In August 2011, Vallejo was
given green light to exit the municipal reorganization. The
Vallejo Chapter 9 plan restructures $50 million of publicly held
debt secured by leases on public buildings. Although the Plan
doesn't affect pensions, it adjusts the claims and benefits of
current and former city employees. Bankruptcy Judge Michael
McManus released Vallejo from bankruptcy on Nov. 1, 2011.
The bankruptcy judge on April 1, 2013, ruled that the city of
Stockton is eligible for municipal bankruptcy in Chapter 9.
SUNTECH POWER: Solyndra Residual Wants Recognition Bid Denied
-------------------------------------------------------------
Solyndra Residual Trust asks the U.S. Bankruptcy Court to dismiss
Suntech Power Holdings Co., Ltd.'s petition for recognition of its
proceeding pending in the Cayman Islands.
Solyndra related that the Cayman proceeding is not a foreign non-
main proceeding. According to Solyndra, Suntech's principal place
of business in the United States is in the Northern District of
California.
Solyndra is Suntech's largest creditor with a $1.5 billion
contingent claim against the Company. Solyndra's claim is based on
its antitrust complaint filed in the Northern District of
California.
Solyndra is represented by:
W. Gordon Dobie, Esq.
Eric E. Sagerman, Esq.
Justin E. Rawlins, Esq.
William C. O'Neil, Esq.
WINSTON & STRAWN LLP
333 S. Grand Avenue
Los Angeles, CA 90071
Tel: (213) 615-1700
Fax: (213) 615-1750
John A. Morris, Esq.
Debra I. Grassgreen, Esq.
Jason H. Rosell, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
780 Third Avenue, 34th Floor
New York, NY 10017
Tel: (212) 561-7700
Fax: (212) 561-7777
About Suntech
Suntech Power Holdings Co., Ltd. (OTC: STPFQ) produces solar
products for residential, commercial, industrial, and utility
applications. Suntech has delivered more than 25,000,000
photovoltaic panels to over a thousand customers in more than 80
countries.
Suntech Power Holdings Co., Ltd., received from the trustee of its
3 percent Convertible Notes a notice of default and acceleration
relating to Suntech's non-payment of the principal amount of
US$541 million that was due to holders of the Notes on March 15,
2013. That event of default has also triggered cross-defaults
under Suntech's other outstanding debt, including its loans from
International Finance Corporation and Chinese domestic lenders.
Suntech Power had involuntary Chapter 7 bankruptcy proceedings
initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in
White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by
holders of more than $1.5 million of defaulted securities under a
2008 $575 million indenture. The Chapter 7 Petitioners are
Trondheim Capital Partners, L.P., Michael Meixler, Longball
Holdings, LLC, and Jiangsu Liquidators, LLC. They are
represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP,
in White Plains, New York.
Suntech Power on Jan. 31, 2014, disclosed that it has signed a
Restructuring Support Agreement relating to the petition for
involuntary bankruptcy filed against it under chapter 7 of the
U.S. Bankruptcy Code. Under the RSA, the parties agreed that
chapter 7 proceedings will be dismissed following recognition of
the provisional liquidation proceeding previously filed by the
Company in the Cayman Islands under chapter 15 of the U.S.
Bankruptcy Code.
On Feb. 21, 2014, David Walker and Ian Stokoe, the joint
provisional liquidators of Suntech Power Holdings Co., Ltd.,
appointed by the Grand Court of the Cayman Islands, commenced a
Chapter 15 proceeding (Bankr. S.D.N.Y. Case No. 14-10383). The
Chapter 15 Petitioners are represented by Jennifer Taylor, Esq.,
and Diana Perez, Esq., at O'Melveny & Myers LLP. According to the
Chapter 15 petition, Suntech has more than $1 billion in both
assets and debts.
SUPERTEL HOSPITALITY: Reports $10.46-Mil. Net Loss for Q2 of 2014
-----------------------------------------------------------------
Supertel Hospitality, Inc., filed its quarterly report on Form 10-
Q, reporting a net loss of $10.46 million on $16.06 million of
total revenue for the three months ended June 30, 2014, compared
with a net income of $2.38 million on $14.79 million of total
revenue for the same period in 2013.
The Company's balance sheet at June 30, 2014, showed $162.67
million in total assets, $130.58 million in total liabilities, and
stockholders' equity of $24.33 million.
On Sept. 26, 2013, the Company withdrew and terminated its
previously announced proposed public offering of 16,700,000 shares
of Common Stock. The costs of this offering and its failure to be
completed have had a severe impact on the Company's liquidity.
These conditions raise significant uncertainty about our ability
to continue as a going concern.
A copy of the Form 10-Q is available at:
http://is.gd/xFRlRy
About Supertel Hospitality, Inc.
Headquartered in Norfolk, Nebraska, Supertel Hospitality, Inc. --
http://www.supertelinc.com-- is a self-administered real estate
investment trust that specializes in the ownership of select-
service hotels. The company currently owns 75 hotels comprising
6,474 rooms in 21 states . Supertel's hotels are franchised by a
number of the industry's most well-regarded brand families,
including Hilton, Choice and Wyndham.
TESROD INVESTMENTS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Tesrod Investments LP
6630 Spencer Highway
Pasadena, TX 77505
Case No.: 14-34890
Chapter 11 Petition Date: September 2, 2014
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Hon. Karen K. Brown
Debtor's Counsel: Barbara Mincey Rogers, Esq.
ROGERS & ANDERSON, PLLC
1415 North Loop West, Ste 1020
Houston, TX 77008
Tel: 713-868-4411
Fax: 713-868-4413
Email: brogers@ralaw.net
Total Assets: $938,550
Total Liabilities: $1.45 million
The petition was signed by Ralph S Dorsett, Jr., president of
general partner.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/txsb14-34890.pdf
THREE FORKS: Incurs $172K Net Loss for Q2 Ended June 30
-------------------------------------------------------
Three Forks, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $172,301 on $520,155 of total revenue for
the three months ended June 30, 2014, compared with a net loss of
$422,881 on $nil of total revenue for the same period in 2013.
The Company's balance sheet at June 30, 2014, showed $7.02 million
in total assets, $2.13 million in total liabilities, and a
stockholders' equity of $4.89 million.
A copy of the Form 10-Q is available:
http://is.gd/Yms7lh
Three Forks, Inc., based in Broomfield, Colorado, is engaged in
the acquisition, exploration, development, and production of oil
and gas properties. The Company currently has oil and gas
projects in Texas, Oklahoma, and Louisiana.
TLC HEALTH: Status Hearing Slated for Oct. 27
---------------------------------------------
The Bankruptcy Court, according to TLC Health Network's case
docket, continued until Nov. 24, 2014, at 1:00 p.m., the hearing
to consider the Debtor's motion to continue using cash collateral.
The Court conditioned the hearing on the filing of a plan and
disclosure statement. A status hearing will be held on Oct. 27,
at 11:30 a.m.
Previously, the Court entered a Fourth Amended Final Order
authorizing the Debtor to (i) incur postpetition secured
superpriority indebtedness from lender Brooks Memorial Hospital;
and (ii) use cash collateral in which Brooks, Community Bank,
N.A., UPMC and the Dormitory Authority of the State of New York
assert an interest.
About TLC Health Network
TLC Health Network filed a Chapter 11 petition (Bankr. W.D.N.Y.
Case No. 13-13294) on Dec. 16, 2013. The petition was signed by
Timothy Cooper as Chairman of the Board. The Debtor estimated
assets of at least $10 million and debts of at least $1 million.
Jeffrey A. Dove, Esq., at Menter, Rudin & Trivelpiece, P.C.,
serves as the Debtor's counsel. Damon & Morey LLP is the Debtor's
Special Health Care Law and Corporate Counsel. The Bonadio Group
is the Debtor's accountants. Howard P. Schultz & Associates, LLC
is the Debtor's appraiser.
The case is assigned to the Hon. Carl L. Bucki.
A three-member panel composed of Cannon Design, Chautauqua
Opportunities, Inc., and Jamestown Rehab Services has been
appointed as the official unsecured creditors committee. Bond,
Schoeneck & King, PLLC is the counsel to the Committee. The
Committee has tapped NextPoint LLC as financial advisor.
Gleichenhaus, Marchese & Weishaar, PC is the general counsel for
Linda Scharf, the Patient Care Ombudsman of TLC Health.
The U.S. Trustee adjourned until Nov. 24, at 12:00 p.m., the
meeting of creditors in the Debtor's case.
TLC HEALTH: Hill Group Okayed to Assist in Bankruptcy Exit
----------------------------------------------------------
The Hon. Carl L. Bucki authorized TLC Health Network to employ The
Hill Group, Inc., as broker to market and sell or refinance some
or all of the Debtor's assets necessary to facilitate its
emergence from bankruptcy.
HGI is expected to provide these services:
i. Home Health Care;
ii. Long-term care;
iii. acute medical care as defined as acute and outpatient
services of Lake Shore Hospital, Irving Campus
iv. underlying utilized and vacant real estate of the Irving
Campus;
v. the Gowanda Clinic; and
vi. the Forestville Clinic, and any associated assets of the
foregoing, including but not limited to, equipment,
intellectual property and services, provided such associated
assets are included in a sale of one or more pperating
units.
The Court also ordered that the Debtor engage the broker on a non-
exclusive basis to assist in securing financing or equity to
enable Debtor to emerge from Chapter 11 bankruptcy.
HGI has served in the role for TLC since October 2013.
To the best of the Debtor's knowledge, HGI is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The Debtors are represented by:
Jeffrey A. Dove, Esq.
MENTER, RUDIN & TRIVELPIECE, P.C.
308 Maltbie Street, Suite 200
Syracuse, NY 13204-1439
Tel: (315) 474-7541
Fax: (315) 474-4040
About TLC Health Network
TLC Health Network filed a Chapter 11 petition (Bankr. W.D.N.Y.
Case No. 13-13294) on Dec. 16, 2013. The petition was signed by
Timothy Cooper as Chairman of the Board. The Debtor estimated
assets of at least $10 million and debts of at least $1 million.
Jeffrey A. Dove, Esq., at Menter, Rudin & Trivelpiece, P.C.,
serves as the Debtor's counsel. Damon & Morey LLP is the Debtor's
Special Health Care Law and Corporate Counsel. The Bonadio Group
is the Debtor's accountants. Howard P. Schultz & Associates, LLC
is the Debtor's appraiser.
The case is assigned to the Hon. Carl L. Bucki.
A three-member panel composed of Cannon Design, Chautauqua
Opportunities, Inc., and Jamestown Rehab Services has been
appointed as the official unsecured creditors committee. Bond,
Schoeneck & King, PLLC is the counsel to the Committee. The
Committee has tapped NextPoint LLC as financial advisor.
Gleichenhaus, Marchese & Weishaar, PC is the general counsel for
Linda Scharf, the Patient Care Ombudsman of TLC Health.
TLC HEALTH: Decision on MRG, et al., Leases Until Plan Approval
---------------------------------------------------------------
The Bankruptcy Court entered an order in relation to TLC Health
Network's motion to (i) assume or reject unexpired leases of non-
residential real property; and (ii) assume certain leases of non-
residential real property.
The Court said that, among other things:
1. the Debtor's time to assume or reject its leases with MRG
Properties, LLC, Tat Sum Lee, M.D. and Joseph C. Dolce is extended
until the date of the confirmation of a Chapter 11 Plan; and
2. TLC's assumption of its leases with Lakeshore Obstetrics &
Gynecology, P.C. and Derby Professional Park LLC is approved.
In a separate order, the court established Oct. 10, 2014, at
5:00 p.m., as the deadline for any individual or entity to file
proofs of claim against the Debtor.
About TLC Health Network
TLC Health Network filed a Chapter 11 petition (Bankr. W.D.N.Y.
Case No. 13-13294) on Dec. 16, 2013. The petition was signed by
Timothy Cooper as Chairman of the Board. The Debtor estimated
assets of at least $10 million and debts of at least $1 million.
Jeffrey A. Dove, Esq., at Menter, Rudin & Trivelpiece, P.C.,
serves as the Debtor's counsel. Damon & Morey LLP is the Debtor's
Special Health Care Law and Corporate Counsel. The Bonadio Group
is the Debtor's accountants. Howard P. Schultz & Associates, LLC
is the Debtor's appraiser.
The case is assigned to the Hon. Carl L. Bucki.
A three-member panel composed of Cannon Design, Chautauqua
Opportunities, Inc., and Jamestown Rehab Services has been
appointed as the official unsecured creditors committee. Bond,
Schoeneck & King, PLLC is the counsel to the Committee. The
Committee has tapped NextPoint LLC as financial advisor.
Gleichenhaus, Marchese & Weishaar, PC is the general counsel for
Linda Scharf, the Patient Care Ombudsman of TLC Health.
TNI BIOTECH: Reports $6.59-Mil. Net Loss for Q2 of 2014
-------------------------------------------------------
TNI BioTech, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $6.59 million on $nil of total revenue for
the three months ended June 30, 2014, compared with a net loss of
$24.68 million on $nil of total revenue for the same period in
2013.
The Company's balance sheet at June 30, 2014, showed
$17.32 million in total assets, $4.05 million in total
liabilities, and stockholders' equity of $13.27 million.
A copy of the Form 10-Q is available:
http://is.gd/5uILoY
TNI BioTech, Inc., develops a range of adoptive and active forms
of immunotherapies to treat cancer, HIV/AIDs and other autoimmune
diseases. The Company has recently developed IRT-103 low-dose
naltroxene (LDN), an active immunotherapy to cure tumor cells and
HIV/AIDS.
Turner Stone & Company, 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 since
inception and has a working capital deficiency.
TOWER GROUP: A.M. Best Lowers Finc'l Strength Ratings to 'C(Weak)'
------------------------------------------------------------------
A.M. Best Co. has downgraded the financial strength ratings to C
(Weak) from C++ (Marginal) and the issuer credit ratings (ICR) to
"ccc" from "b" of the pooled and reinsured members of the Tower US
Pool (Tower) and CastlePoint Reinsurance Company, Limited
(Bermuda). Concurrently, A.M. Best has downgraded the ICR to "c"
from "cc" and the debt rating on the $150 million par 5.00% senior
unsecured convertible notes due Sept. 14, 2014, for the
intermediate holding company, Tower Group, Inc. Additionally,
A.M. Best has downgraded the ICR to "c" from "cc" of the ultimate
parent, Tower Group International, Ltd. (TWGP) (Bermuda) [NASDAQ:
TWGP]. All ratings are under review with developing implications.
All companies are headquartered in New York, NY, unless otherwise
specified.
The rating actions take into consideration TWGP's most recent
Securities and Exchange Commission 10Q filing, which included a
net loss of $106 million and GAAP shareholders' equity (excluding
noncontrolling interests) of negative $11 million. In addition,
these rating downgrades reflect the heightened uncertainty around
TWGP's ability to repay its senior debt holders in the event its
pending merger with ACP Re Ltd. (ACP Re) (Bermuda) does not occur
on or before Sept. 15, 2014. These actions also consider the
additional ratings drag placed on all of TWGP's operating entities
in terms of their ability to pay claims. In addition, A.M. Best
remains concerned with the continued delays in TWGP reporting its
quarterly SEC filings, as well as its ability to operate as a
going concern.
The ratings will remain under review pending the planned merger
with ACP Re, which is anticipated to close in September 2014, but
may be delayed to as late as Nov. 15, 2014, which is the merger
termination date. The under review with developing implications
status on all the ratings acknowledges the potential benefits to
be garnered from the transaction, but also the potential downside
from any additional adverse reserve development or any unforeseen
event that might occur up until the close of the transaction. The
ratings could be downgraded further if certain events or
unforeseen circumstances cause the merger to fall through. Any
default on the payment of principal and/or interest to existing
debt holders would result in an immediate downgrade.
The FSR of C++ (Marginal) has been downgraded to C (Weak) and the
ICRs have been downgraded to "ccc" from "b" for the following
pooled and reinsured members of Tower US Pool:
CastlePoint Insurance Company
CastlePoint National Insurance Company
Tower Insurance Company of New York
Tower National Insurance Company
Preserver Insurance Company
North East Insurance Company
Hermitage Insurance Company
CastlePoint Florida Insurance Company
Kodiak Insurance Company
York Insurance Company of Maine
Massachusetts Homeland Insurance Company
TRANS-LUX CORP: Incurs $2.5-Mil. Loss in Quarter Ended June 30
--------------------------------------------------------------
Trans-Lux Corporation filed its quarterly report on Form 10-Q,
reporting a net loss of $2.5 million on $5.9 million of total
revenue for the three months ended June 30, 2014, compared with a
net loss of $723,000 on $4.79 million of total revenue for the
same period in 2013.
The Company's balance sheet at June 30, 2014, showed $18.54
million in total assets, $16.47 million in total liabilities, and
a stockholders' equity of $2.07 million.
A copy of the Form 10-Q is available 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. As of March 31, 2014, the Company had
$18.48 million in total assets, $17.24 million in total
liabilities and $1.23 million in total stockholders' equity.
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.
UBIQUITY INC: Incurs $5.47-Mil. Loss for Quarter Ended June 30
--------------------------------------------------------------
Ubiquity, Inc., filed its quarterly report on Form 10-Q, reporting
a net loss of $5.47 million on $14,100 of total revenue for the
three months ended June 30, 2014, compared with a net loss of
$1.78 million on $15,908 of total revenue for the same period in
2013.
The Company's balance sheet at June 30, 2014, showed $19.01
million in total assets, $3.49 million in total liabilities, and
stockholders' equity of $15.52 million.
The Company has negative working capital, has incurred operating
losses from inception, and has not yet produced significant
continuing revenues from operations. These factors raise
substantial doubt about the Company's ability to continue as a
going concern, according to the regulatory filing.
A copy of the Form 10-Q is available:
http://is.gd/cDCgFm
Based in Irvine, California, Ubiquity, Inc., develops applications
and content that enable users to access all their information,
services, files and other important data in the public domain
using any device. The Company recently announced its intent to
purchase all assets of Stray Angel Films for $3 million.
VISION-SCIENCES: Incurs $1.98-Mil. Net Loss for Q2 of 2014
----------------------------------------------------------
Vision-Sciences, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $1.98 million on $3.75 million of total
revenue for the three months ended June 30, 2014, compared with a
net loss of $2.43 million on $3.65 million of total revenue for
the same period in 2013.
The Company's balance sheet at June 30, 2014, showed
$10.38 million in total assets, $26.7 million in total
liabilities, and a stockholders' deficit of $16.32 million.
Vision-Sciences incurred substantial operating losses since
inception and there can be no assurance that we will ever achieve
or sustain a profitable level of operations in the future. The
Company anticipates to incur negative cash flows from operations
during the remainder of fiscal 2015, driven by continued
investment in a direct sales force for the U.S. market, spending
for marketing, revitalizing a research and development pipeline,
and general business operations.
A copy of the Form 10-Q is available at:
http://is.gd/0Mjgem
Orangeburg, N.Y.-based Vision-Sciences, Inc., designs, develops,
manufactures and markets products for endoscopy, the science of
using an instrument, known as an endoscope to provide minimally
invasive access to areas not readily visible to the human eye.
WINDSOR PETROLEUM: Files Schedules of Assets and Liabilities
------------------------------------------------------------
Windsor Petroleum Transport Corp. filed with the U.S. Bankruptcy
Court for the District of Delaware it schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $0
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $195,409,549
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-Priority
Claims $0
----------- -----------
Total $0 $195,409,549
A copy of the schedules is available for free at
http://bankrupt.com/misc/WindsorPetroleum_81_SALs.pdf
About Windsor Petroleum Transport Corporation
Windsor Petroleum Transport Corporation and several of its
subsidiaries and related entities on July 14, 2014, filed for
reorganization under Chapter 11 of the U.S. Bankruptcy Code in the
United States Bankruptcy Court in Wilmington, Delaware (Lead Case
No. 14-11708).
The Debtors' counsel is Pauline K. Morgan, Esq., at Young Conaway
Stargatt & Taylor, LLP, in Wilmington, Delaware. The Debtors'
crisis managers come from AMA Capital, while their chief
restructuring officer is Paul J. Leand, Jr.
The U.S. Trustee notified the Bankruptcy Court that it was unable
to appoint an official committee of unsecured creditors.
XENETIC BIOSCIENCES: Incurs $2.76-Mil. Net Loss for Q2 of 2014
--------------------------------------------------------------
Xenetic Biosciences, Inc., filed its quarterly report on Form 10-
Q, reporting a net loss of $2.76 million on $nil of total revenue
for the three months ended June 30, 2014, compared with a net loss
of $938,331 on $1 million of total revenue for the same period in
2013.
The balance sheet at June 30, 2014, showed $23.05 million in total
assets, $5.56 million in total liabilities, and stockholders'
equity of $17.49 million.
The Company's total current assets, cash and working capital were
approximately $8.3, $7.6 and $6.2 million, respectively, at
June 30, 2014. It estimates that, after including the $10 million
received from Baxter in January 2014, it has enough cash on hand
to fund current business plan to the middle of the first quarter
of 2015. The Company will need to raise additional working
capital either through equity or debt or a combination of equity
and debt during 2014 to continue its current business plan. The
Company's recurring operating losses, past liquidity issues and
indebtedness raise substantial doubt about its ability to continue
as a going concern beyond the first quarter of 2015.
A copy of the Form 10-Q is available:
http://is.gd/DnaK0i
Lexington, Mass.-based Xenetic Biosciences, Inc., is a
biopharmaceutical company that provides expertise in the
development of a whole new generation of drugs, cancer therapies
and vaccines. The Company is also developing its own pipeline of
next generation biotherapeutics-based on its PolyXen, Oncohist and
ImuXen platform technologies.
XG TECHNOLOGY: Reports $4.53-Mil. Loss in Q2 Ended June 30
----------------------------------------------------------
xG Technology, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $4.53 million on $163,000 of total revenue
for the three months ended June 30, 2014, compared with a net loss
of $3.57 million on $nil of total revenue for the same period in
2013.
The Company's balance sheet at June 30, 2014, showed $28 million
in total assets, $7.72 million in total liabilities, and
stockholders' equity of $22.28 million.
As of June 30, 2014, the Company had an accumulated deficit of
$161.2 million and a net loss of $9.7 million for the six months
ended June 30, 2014. This and other factors raise substantial
doubt about the Company's ability to continue as a going concern,
according to the regulatory filing.
A copy of the Form 10-Q is available:
http://is.gd/ihHYHv
Sarasota, Florida-based xG Technology, Inc., develops cognitive
radio network system xMax(R) that aims to enhance wireless
broadband communication for military, commercial and other
purposes.
YOU ON DEMAND: Incurs $1.09-Mil. Net Loss for Q2 Ended June 30
--------------------------------------------------------------
YOU On Demand Holdings, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $1.09 million on $182,696 of total
revenue for the three months ended June 30, 2014, compared with a
net loss of $3.59 million on $50,619 of total revenue for the same
period in 2013.
The Company's balance sheet at June 30, 2014, showed $26.91
million in total assets, $7.71 million in total liabilities, and
stockholders' equity of $19.85 million.
A copy of the Form 10-Q is available at:
http://is.gd/nnvthP
New York, N.Y.-based YOU On Demand Holdings, Inc., operates in the
Chinese media segment through its Chinese subsidiaries and
variable interest entities: (1) a business which provides to cable
providers both an integrated value-added service solution and
platform for the delivery of pay-per-view ("PPV") and video on
demand ("VOD") as well as enhanced premium content for cable
providers and (2) a cable broadband business based in the Jinan
region of China.
UHY, LLP, expressed substantial doubt about the Company's ability
to continue as a going concern, citing that the Company has
incurred significant losses during 2013 and 2012 and has relied on
debt and equity financings to fund their operations.
* Recent Small-Dollar & Individual Chapter 11 Filings
-----------------------------------------------------
In re Arthur B. Fontaine
Bankr. E.D. Cal. Case No. 14-14241
Chapter 11 Petition filed August 25, 2014
In re 1442 T Street, LLC
Bankr. D. D.C. Case No. 14-00490
Chapter 11 Petition filed August 25, 2014
See http://bankrupt.com/misc/dcb14-00490.pdf
represented by: Philip McNutt, Esq.
HUGHES & BENTZEN, PLLC
E-mail: pmcnutt@hughesbentzen.com
In re The Manor at Morton Grove Condominium Association, Inc.
Bankr. M.D. Fla. Case No. 14-09850
Chapter 11 Petition filed August 25, 2014
See http://bankrupt.com/misc/flmb14-09850.pdf
represented by: Richard A Johnston, Jr., Esq.
JOHNSTON CHAMPEAU, LLC
E-mail:
richard.johnston@johnstonchampeau.net
In re Adam S. Feinstein
Bankr. S.D. Fla. Case No. 14-29057
Chapter 11 Petition filed August 25, 2014
In re Deasy Associates, LLC
Bankr. D. Mass. Case No. 14-41882
Chapter 11 Petition filed August 25, 2014
See http://bankrupt.com/misc/mab14-41882.pdf
represented by: Michael J. Tremblay, Esq.
LAW OFFICE OF MICHAEL J. TREMBLAY
E-mail: attorney@tremblay.co
In re Vibert St. Elmo Frederick
Bankr. D. Nev. Case No. 14-15758
Chapter 11 Petition filed August 25, 2014
In re K&J Landscape Management, Inc.
Bankr. D.N.J. Case No. 14-27492
Chapter 11 Petition filed August 25, 2014
See http://bankrupt.com/misc/njb14-27492.pdf
represented by: John F. Bracaglia, Jr., Esq.
MAURO, SAVO, CAMERINO, GRANT & SCHALK
E-mail: brokaw@maurosavolaw.com
In re Toyomasters, Inc.
Bankr. D. N.M. Case No. 14-12554
Chapter 11 Petition filed August 25, 2014
See http://bankrupt.com/misc/nmb14-12554.pdf
represented by: Gerald R. Velarde, Esq.
LAW OFFICE OF GERALD R. VELARDE, P.C.
E-mail: velardepc@hotmail.com
In re Joann Brennan Percic
Bankr. D. Ore. Case No. 14-34833
Chapter 11 Petition filed August 25, 2014
In re Southern Communictions Resources, LLC
Bankr. D. S.C. Case No. 14-04784
Chapter 11 Petition filed August 25, 2014
See http://bankrupt.com/misc/scb14-04784.pdf
represented by: Reid B. Smith, Esq.
BIRD AND SMITH, P.A.
E-mail: rsmith@birdsmithlaw.com
In re Texas AHCS 2, LP
dba Park Plaza
Bankr. W.D. Tex. Case No. 14-60719
Chapter 11 Petition filed August 25, 2014
See http://bankrupt.com/misc/txwb14-60719.pdf
represented by: Jason R. Searcy, Esq.
JASON R. SEARCY, P.C.
E-mail: jrspc@jrsearcylaw.com
In re Milan Properties LLC
Bankr. E.D. Va. Case No. 14-73098
Chapter 11 Petition filed August 25, 2014
See http://bankrupt.com/misc/vaeb14-73098.pdf
Filed Pro Se
In re Encino Center, LLC
Bankr. C.D. Cal. Case No. 14-13981
Chapter 11 Petition filed August 26, 2014
See http://bankrupt.com/misc/cacb14-13981.pdf
represented by: Sandford Frey, Esq.
CREIM MACIAS KOENIG & FREY, LLP
E-mail: Sfrey@cmkllp.com
In re Granite Real Estate Investments, LLC
Bankr. C.D. Ill. Case No. 14-71546
Chapter 11 Petition filed August 26, 2014
See http://bankrupt.com/misc/ilcb14-71546.pdf
Filed Pro Se
In re Cypress Health Care Management, LLC
Bankr. W.D. La. Case No. 14-51055
Chapter 11 Petition filed August 26, 2014
See http://bankrupt.com/misc/lawb14-51055.pdf
represented by: Patrick J. Neligan, Jr., Esq.
NELIGAN FOLEY, LLP
E-mail: pneligan@neliganlaw.com
In re Cypress Health Care Holdings, LLC
Bankr. W.D. La. Case No. 14-51056
Chapter 11 Petition filed August 26, 2014
See http://bankrupt.com/misc/lawb14-51056.pdf
represented by: Patrick J. Neligan, Jr., Esq.
NELIGAN FOLEY, LLP
E-mail: pneligan@neliganlaw.com
In re George Madison Sturgis
Bankr. S.D. Miss. Case No. 14-02702
Chapter 11 Petition filed August 26, 2014
In re John H. Ruble and Dawn R. Ruble
Bankr. S.D. Miss. Case No. 14-51339
Chapter 11 Petition filed August 26, 2014
In re Rosa Ledezma
Bankr. D.N.J. Case No. 14-27531
Chapter 11 Petition filed August 26, 2014
In re Frontier Food Service Corp
dba Frontier Catering
Bankr. W.D.N.Y. Case No. 14-11956
Chapter 11 Petition filed August 26, 2014
See http://bankrupt.com/misc/nywb14-11956.pdf
represented by: Robert B. Gleichenhaus, Esq.
GLEICHENHAUS, MARCHESE & WEISHAAR, P.C.
E-mail: RBG_GMF@hotmail.com
In re RIC Ventures, Inc.
Bankr. E.D.N.C. Case No. 14-04926
Chapter 11 Petition filed August 26, 2014
See http://bankrupt.com/misc/nceb14-04926.pdf
represented by: J.M. Cook, Esq.
J.M. COOK, P.A.
E-mail: J.M.Cook@jmcookesq.com
In re A & J Towing and Recovery, Inc.
Bankr. M.D. Tenn. Case No. 14-06838
Chapter 11 Petition filed August 26, 2014
See http://bankrupt.com/misc/tnmb14-06838.pdf
represented by: Elliott Warner Jones, Esq.
EMERGE LAW, PLC
E-mail: elliott@emergelaw.net
In re Lewis Lee Bergsma and Helen A. Bergsma
Bankr. W.D. Wash. Case No. 14-16380
Chapter 11 Petition filed August 26, 2014
In re Timothy Lee Bergsma
Bankr. W.D. Wash. Case No. 14-16382
Chapter 11 Petition filed August 26, 2014
In re TCF, LLC
Bankr. N.D. Ala. Case No. 14-03339
Chapter 11 Petition filed August 27, 2014
See http://bankrupt.com/misc/alnb14-03339.pdf
represented by: C. Taylor Crockett, Esq.
C. TAYLOR CROCKETT, P.C.
E-mail: taylor@taylorcrockett.com
In re Connie Lopez
Bankr. C.D. Cal. Case No. 14-26425
Chapter 11 Petition filed August 27, 2014
In re Elaine F. Byers
Bankr. S.D. Fla. Case No. 14-29239
Chapter 11 Petition filed August 27, 2014
In re Robert C. Redden
Bankr. S.D. Fla. Case No. 14-29273
Chapter 11 Petition filed August 27, 2014
In re Troy Andrew McCullough
Bankr. M.D. Fla. Case No. 14-04143
Chapter 11 Petition filed August 27, 2014
In re Shaul C. Baruch
Bankr. M.D. Fla. Case No. 14-10019
Chapter 11 Petition filed August 27, 2014
In re SSM Associates Inc.
dba R and R Feed and Supply
Bankr. D.N.J. Case No. 14-27623
Chapter 11 Petition filed August 27, 2014
See http://bankrupt.com/misc/njb14-27623.pdf
represented by: Kevin S. Quinlan, Esq.
E-mail: ksqesqct@comcast.net
In re Noel Angel Perez Martinez and Sonia Socorro Pea Rivera
Bankr. D.P.R. Case No. 14-07030
Chapter 11 Petition filed August 27, 2014
In re Robert Lee Anders and Stephanie Teresa Anders
Bankr. W.D. Wash. Case No. 14-16418
Chapter 11 Petition filed August 27, 2014
In re Damon Christian Del Deo
Bankr. D. Ariz. Case No. 14-13359
Chapter 11 Petition filed August 28, 2014
In re Belasco Unlimited Corporation
Bankr. C.D. Cal. Case No. 14-26546
Chapter 11 Petition filed August 28, 2014
See http://bankrupt.com/misc/cacb14-26546.pdf
represented by: Timothy J. Yoo, Esq.
LEVENE NEALE BENDER RANKIN & BRILL, LLP
E-mail: tjy@lnbyb.com
In re Richard Lee Garcia and Jennifer Lynn Garcia
Bankr. E.D. Cal. Case No. 14-28694
Chapter 11 Petition filed August 28, 2014
In re Med-X Trans, Inc.
dba Med-X Transportation, Inc.
Bankr. D. Conn. Case No. 14-21715
Chapter 11 Petition filed August 28, 2014
See http://bankrupt.com/misc/ctb14-21715.pdf
represented by: Anthony S. Novak, Esq.
NOVAK LAW OFFICE, P.C.
E-mail: AnthonySNovak@aol.com
In re Med-X Transportation, LLC
Bankr. D. Conn. Case No. 14-21716
Chapter 11 Petition filed August 28, 2014
See http://bankrupt.com/misc/ctb14-21716.pdf
represented by: Anthony S. Novak, Esq.
NOVAK LAW OFFICE, P.C.
E-mail: AnthonySNovak@aol.com
In re Karina Lee Howe
Bankr. N.D. Cal. Case No. 14-31259
Chapter 11 Petition filed August 28, 2014
In re Bacarella Enterprises, Inc.
dba Garden Works
Bankr. E.D.N.Y. Case No. 14-44419
Chapter 11 Petition filed August 28, 2014
See http://bankrupt.com/misc/nyeb14-44419.pdf
represented by: Elio Forcina, Esq.
E-mail: forcinalaw@gmail.com
In re Bacarella Enterprises, Inc.
dba Garden Works
Bankr. E.D.N.Y. Case No. 14-44421
Chapter 11 Petition filed August 28, 2014
See http://bankrupt.com/misc/nyeb14-44421.pdf
represented by: Elio Forcina, Esq.
E-mail: forcinalaw@gmail.com
In re Bacarella Enterprises, Inc.
dba Garden Works
Bankr. E.D.N.Y. Case No. 14-44423
Chapter 11 Petition filed August 28, 2014
See http://bankrupt.com/misc/nyeb14-44423.pdf
represented by: Elio Forcina, Esq.
E-mail: forcinalaw@gmail.com
In re Grover Cleveland Cauthen, III
Bankr. E.D.N.C. Case No. 14-04960
Chapter 11 Petition filed August 28, 2014
In re Sisters & Co., Inc.
Bankr. N.D. Ga. Case No. 14-66808
Chapter 11 Petition filed August 28, 2014
See http://bankrupt.com/misc/ganb14-66808.pdf
represented by: A. Keith Logue, Esq.
LOGUE LAW FIRM, P.C.
E-mail: keith@logue-law.com
In re Mallasadi International, Inc.
Bankr. N.D. Tex. Case No. 14-34100
Chapter 11 Petition filed August 28, 2014
See http://bankrupt.com/misc/txnb14-34100.pdf
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS, P.C.
E-mail: eric@ealpc.com
In re Doreen Sue Bonilla and Doreen Sue Bonilla
Bankr. W.D. Wash. Case No. 14-16475
Chapter 11 Petition filed August 28, 2014
In re Osborn Financial Group, LLC
Bankr. D. Ariz. Case No. 14-13492
Chapter 11 Petition filed August 29, 2014
See http://bankrupt.com/misc/azb14-13492.pdf
represented by: Glenn W. Roethler, Esq.
GREEVES, PRICE & ROETHLER, PLC
E-mail: glenn.roethler@gmail.com
In re Priscilla Bose Legaspi
Bankr. C.D. Cal. Case No. 14-11897
Chapter 11 Petition filed August 29, 2014
In re Lisette G. Monast
Bankr. C.D. Cal. Case No. 14-11900
Chapter 11 Petition filed August 29, 2014
In re Irene Spitkovsky
Bankr. C.D. Cal. Case No. 14-14053
Chapter 11 Petition filed August 29, 2014
In re Peter Brook
Bankr. C.D. Cal. Case No. 14-26739
Chapter 11 Petition filed August 29, 2014
In re Efilorp Construction, Inc.
Bankr. S.D. Cal. Case No. 14-07064
Chapter 11 Petition filed August 29, 2014
See http://bankrupt.com/misc/casb14-07064.pdf
represented by: Andrew H. Griffin, III, Esq.
LAW OFFICES OF ANDREW H. GRIFFIN, III
E-mail: Griffinlaw@mac.com
In re Robert A. Robbins
Bankr. M.D. Ga. Case No. 14-52047
Chapter 11 Petition filed August 29, 2014
In re Golden Sunrise Holdings, LLC
Bankr. N.D. Ga. Case No. 14-66949
Chapter 11 Petition filed August 29, 2014
See http://bankrupt.com/misc/ganb14-66949.pdf
represented by: Evan M. Altman, Esq.
E-mail: evan.altman@laslawgroup.com
In re Vivian Thomas Smith
Bankr. N.D. Ga. Case No. 14-67061
Chapter 11 Petition filed August 29, 2014
In re Jody D. Kimbrell
Bankr. C.D. Ill. Case No. 14-81545
Chapter 11 Petition filed August 29, 2014
In re Family Ministries, Inc.
Bankr. D. Kans. Case No. 14-12026
Chapter 11 Petition filed August 29, 2014
See http://bankrupt.com/misc/ksb14-12026.pdf
represented by: Todd Allison, Esq.
LAW OFFICE OF TODD ALLISON, P.A.
E-mail: todd@toddallisonlaw.com
In re Jeffry S. Life
Bankr. D. Nev. Case No. 14-15912
Chapter 11 Petition filed August 29, 2014
In re NY Pride Holdings, Inc.
Bankr. E.D.N.Y. Case No. 14-74017
Chapter 11 Petition filed August 29, 2014
See http://bankrupt.com/misc/nyeb14-74017.pdf
represented by: Carlyet D Marshburn, Esq.
CARLYET D. MARSHBURN, P.C.
E-mail: Info@Marshburnlaw.com
In re Sara Morales-Otero and Juan B. Sanchez-Marrero
Bankr. D.P.R. Case No. 14-07201
Chapter 11 Petition filed August 29, 2014
In re Polcraft, Inc.
Bankr. N.D. Cal. Case No. 14-53645
Chapter 11 Petition filed August 30, 2014
See http://bankrupt.com/misc/canb14-53645.pdf
represented by: Henry G. Rendler, Esq.
LAW OFFICES OF HENRY G. RENDLER
E-mail: henry@rendlerlaw.com
In re Russ Floyd Barnes and Jarret Lee Watson Barnes
Bankr. M.D. Ga. Case No. 14-11202
Chapter 11 Petition filed August 30, 2014
In re Barnes Properties, Inc.
Bankr. M.D. Ga. Case No. 14-11203
Chapter 11 Petition filed August 30, 2014
See http://bankrupt.com/misc/gamb14-11203.pdf
represented by: Wesley J. Boyer, Esq.
KATZ, FLATAU, POPSON AND BOYER, LLP
E-mail: wjboyer_2000@yahoo.com
In re Michael Joseph Schwartz
Bankr. N.D. Cal. Case No. 14-31285
Chapter 11 Petition filed August 31, 2014
In re Integrated Housing Solutions, LLC
Bankr. N.D. Ga. Case No. 14-67144
Chapter 11 Petition filed August 31, 2014
See http://bankrupt.com/misc/ganb14-67144.pdf
represented by: Latif Oduola-Owoo, Esq.
ESSENTIA LEGAL, P.C.
E-mail: latif@essentialegal.com
In re Patrick O'neal Chevers
Bankr. M.D. Tenn. Case No. 14-07044
Chapter 11 Petition filed August 31, 2014
In re Melbourne Brown and Sharon Stone Brown
Bankr. N.D. Ga. Case No. 14-67163
Chapter 11 Petition filed September 1, 2014
In re Ridgely St., LLC
Bankr. D. Md. Case No. 14-23637
Chapter 11 Petition filed September 1, 2014
See http://bankrupt.com/misc/mdb14-23637.pdf
represented by: Jonathan C. Silverman, Esq.
JONATHAN C. SILVERMAN, LLC
E-mail: jonathan.c.silverman@gmail.com
In re F. Edel, Inc.
Bankr. D. Mass. Case No. 14-14136
Chapter 11 Petition filed September 1, 2014
See http://bankrupt.com/misc/mab14-14136.pdf
represented by: John F. Sommerstein, Esq.
LAW OFFICES OF JOHN F. SOMMERSTEIN
E-mail: jfsommer@aol.com
In re International Lion's Lairs, LLC
Bankr. N.D. Tex. Case No. 14-34286
Chapter 11 Petition filed September 1, 2014
See http://bankrupt.com/misc/txnb14-34286.pdf
represented by: Herman A. Lusky, Esq.
LUSKY & ASSOCIATES, P.C.
E-mail: mail@lusky.com
In re 11920 Group, LLC
Bankr. S.D. Tex. Case No. 14-34874
Chapter 11 Petition filed September 1, 2014
See http://bankrupt.com/misc/txsb14-34874.pdf
represented by: John Akard, Jr
JOHN AKARD JR. P.C.
E-mail: johnakard@attorney-cpa.com
In re 4850 Hazelton, Inc.
Bankr. S.D. Tex. Case No. 14-34887
Chapter 11 Petition filed September 1, 2014
See http://bankrupt.com/misc/txsb14-34887.pdf
represented by: James Patrick Brady, Esq.
E-mail: notices@bradylaw.comcastbiz.net
*********
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, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman,
Editors.
Copyright 2014. All rights reserved. ISSN: 1520-9474.
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