/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/141229.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, December 29, 2014, Vol. 18, No. 360 Headlines 1800 W. LAKE: No Quick Ruling in Suit v. American Chartered ACOSTA HOLDCO: S&P Withdraws 'B' CCR on Merger with Subsidiary AGFEED USA: Liquidation Plan Declared Effective ALCO STORES: Court Sets Jan. 16, 2015 as Claims Bar Date ALEXZA PHARMACEUTICALS: Adopts 2014 Bonus Plan ALLY FINANCIAL: U.S. Treasury to Sell 54.9 Million Common Shares ALLY FINANCIAL: Registers $12.5 Billion Demand Notes AMERICAN APPAREL: Fund Asks Retailer to Consider Alternatives AMERICAN APPAREL: Board Declares Dividend AMERICAN INT'L: Coventry Says Suit Bad for Business AMERICAN SANDS: Needs Additional Capital to Commence Operations AMPLIPHI BIOSCIENCES: Philip Young Removed From Board ARAMID ENTERTAINMENT: Plan Proposal Period Extended to Jan. 9 ARKANOVA ENERGY: Incurs $3 Million Net Loss in Fiscal 2014 ASSOCIATED WHOLESALES: Wants Removal Period Extended to April 7 ASTANA FINANCE: Status Conference Adjourned Until June 2015 ATHLON HOLDINGS: Moody's Withdraws B2 Corporate Family Rating BALMORAL RACING: Files for Chapter 11 to Dodge Property Seizure BALMORAL RACING: Case Summary & 20 Largest Unsecured Creditors BANESCO USA: Fitch Affirms 'B+' IDR; Outlook Stable BENTLEY PREMIER: Wants Final Decree Closing Reorganization Case BIOLIFE SOLUTIONS: Annual Meeting of Stockholders Set for May 4 BIOLIFE SOLUTIONS: Files Post-Effective Amendment to Form S-1 BIOLITEC INC: Court Won't Vacate Order Expunging Insiders' Claim BOYD GAMING: Bank Debt Trades at 2% Off BUFFET PARTNERS: Bailey Brauer Wins Court Battle Over Back Taxes CAESARS ENTERTAINMENT: Five Law Firms Advise Cos. in Merger CAESARS ENTERTAINMENT: Bank Debt Won't Deter Ch. 11 Plan for Unit CAESARS ENTERTAINMENT: Extends Restructuring Agreement Deadlines CAMARILLO PLAZA: Final Decree Entered; Reorganization Case Closed CENTRIC HEALTH: S&P Keeps B- CCR on Revised Liquidity Assessment CHARLES FOGARTY: Defendants in Suit vs. Palumbo Win Judgment CHINA FRUITS: Has $520K Working Capital Deficit in Third Quarter CIT GROUP: Moody's Continues Review of Ba3 Sr. Unsecured Rating COLDWATER CREEK: Bankruptcy Cases of Other Debtors Closed COLDWATER CREEK: L. Trustee Has Until March 5 to Remove Actions CONVATEC HEALTHCARE: CEO Departure No Impact on Moody's B2 CFR CORD BLOOD: Seeks to Dismiss Lawsuit vs. Tonaquint and St. George DAHL'S FOODS: Associated Wholesale-Led Auction Slated for January DAUGHTERS OF CHARITY: S&P Lowers Rating on 2005 Bonds to 'CCC' DAVE & BUSTER'S: S&P Retains 'B+' Corporate Credit Rating DELIA*S INC: Gift Cards Valid Only Until Jan. 23 DELL INC: Fitch Raises IDR to 'BB'; Outlook Revised to Positive DOMUM LOCIS: Court Enters Memorandum of Decision on Various Bids DUPONT PERFORMANCE: Bank Debt Trades at 3% Off EDGENET INC: Amended Liquidation Plan Declared Effective EXIDE TECHNOLOGIES: Sued Over Alleged Health Problems FALCON STEEL: Equity Holders' Bid for Official Committee Denied FLC HOLDING: Bankruptcy Court Approves Sale of PNA Bank to Royal FLEXPOINT SENSOR: Lacks Revenue to Fund Operations FOREX INTERNATIONAL: Working Capital Insufficient for Operations FORTESCUE METALS: Bank Debt Trades at 9% Off FPL ENERGY: S&P Affirms 'BB' Rating on $365MM Sr. Sec. Notes GBG RANCH: Files Schedules of Assets and Liabilities GLOBALSTAR INC: Thermo Investments Buys 12.3-Mil. Common Shares GLYECO INC: Board Okays Equity Incentive Program GOPICNIC BRANDS: To Sell Packaged Meal Business at Auction GT ADVANCED: Portion of Furnace Sale Proceeds to Go to Apple GT ADVANCED: Wins Approval of Apple Settlement HAMILTON SUNDSTRAND: Bank Debt Trades at 8% Off HEALTHSOUTH CORP: Moody's Affirms Ba3 Corp. Family Rating HUNTINGTON BEACH SCHOOL DISTRICT: On Fin'l Brink Due to Asbestos INDEPENCE TAX II: Reports $128K Net Loss in Q2 Ending Sept. 30 INEOS GROUP: Bank Debt Trades at 3% Off INFINITY ENERGY: Recurring Losses Raise Going Concern Doubt INFORMATION RESOURCES: S&P Lowers CCR to 'B'; Outlook Stable INNES MCINTYRE: Ch.7 Trustee Can't Sell Prattville Shopping Mall INSTITUTO MEDICO: Taps Hooper Lundy as Special Counsel INTERLEUKIN GENETICS: Raises $10 Million in Financings INVENT VENTURES: Needs Financing to Continue as Going Concern ISTAR FINANCIAL: S&P Corrects Secured Debt Rating to 'B+' KANGADIS FOOD: Court OKs Stipulation, Closes Reorganization Case KENTUCKY ECONOMIC: Moody's Maintains Ba3 Senior Lien Bonds Rating KIOR INC: Asks Court to Set Claims Bar Date KIOR INC: Files Schedules of Assets and Liabilities LAS VEGAS SANDS: Fitch Raises Issuer Default Rating From 'BB+' LEHMAN BROTHERS: Sues St. Louis University Over Swaps LENCO MOBILE: Reports $2.52-Mil. Net Loss in Sept. 30 Quarter LOCATION BASED TECHNOLOGIES: CEO Issues Letter to Shareholders LONGVIEW POWER: Time to Remove Actions Extended to March 22 MATTAMY GROUP: S&P Revises Outlook to Neg. & Affirms 'BB' CCR MEDFORD DEVELOPMENT: Case Summary & Largest Unsecured Creditors MEG ENERGY: Bank Debt Trades at 5% Off MERCANTIL COMMERCEBANK: Fitch Affirms 'BB' IDR; Outlook Stable METALICO INC: Enters Into Exchange Agreements with Note Holders MF GLOBAL: Settles U.S. Govt. Lawsuit, To Pay $1.3BB MF GLOBAL: CFTC Fines Parent Company $100 Million MINERAL PARK: Removal Period Extended to March 23, 2015 MJC AMERICA: Has Access to East West Bank's Cash Collateral MOBILESMITH INC: Shlomo Elia Quits as Director MOMENTIVE PERFORMANCE: S&P Assigns 'B-' CCR; Outlook Stable MONROE HOSPITAL: Close to Hiring Business Dev't Director, CEO MUD KING: Court Extends Exclusive Plan Solicitation Period NEIMAN MARCUS: Bank Debt Trades at 3% Off NEWALTA CORP: Moody's Affirms Ba3 Corporate Family Rating NII HOLDINGS: Amends Schedules of Assets and Liabilities NRG ENERGY: Bank Debt Trades at 2% Off OCWEN FINANCIAL: Fitch Lowers Rating to 'B-' on Regulatory Deal OMNICARE INC: Anti-kickback Lawsuit No Impact on Moody's Ba3 CFR ONE SOURCE: Seeks Jan. 15 Extension of Schedules Filing OVERLAND PARK: S&P Affirms 'BB+' on $45.625MM Revenue Bonds PETRON ENERGY: Shareholders Elected Two Directors PETTERS COMPANY: Trustee Can Use Cash Collateral Until Dec. 31 PLASTIC2OIL INC: Final Hearing in Class Action Settlement Set PMC MARKETING: Court Dismissed Adversary Suit vs. Villa Blanca PORTER BANCORP: Has Until June 15 to Regain NASDAQ Compliance PRIME TIME INT'L: Plan Filing Exclusivity Extended to March 16 PROTECTION SYSTEMS: Former Litigation Counsel's Claim Disallowed RADIAN GUARANTY: Moody's Ba2 IFS Rating on Review for Upgrade RADIOSHACK CORP: CEO Says Chain Is 'Overstored' RESTAURANT BRANDS: S&P Assigns 'B+' CCR; Outlook Stable ROBERT MEIER: Bankruptcy Court Decides on Claims by Martha Meier RYNARD PROPERTIES: Fannie Mae Seeks to Lift Automatic Stay SABINE OIL: Sabine Investor Has 50% Stake as of Dec. 16 SAMSON RESOURCES: S&P Lowers Corporate Credit Rating to 'B-' SAN GOLD: Seeks Protection From Creditors SCHAEFER SALT: Khoudary Suspended From Law Practice in New York SEQUENOM INC: Okays $2 Million Employee Cash Bonuses SOUND SHORE: Plan of Liquidation Declared Effective SOURCE HOME: Committee's Challenge Period Extended Until Dec. 29 SOURCE HOME: Cash Collateral Use Milestones Extended SOURCE INTERLINK: Family Fare Withdraws Objections to Plan SPANISH BROADCASTING: Gets Noncompliance Notice From NASDAQ SPECIALTY HOSPITAL: Sale Closing Cues US Trustee to Withdraw Plea SPECTRASCIENCE INC: Needs Funding to Continue as Going Concern STAMP FARMS: Co-Owner Pleads Guilty to Bankruptcy Fraud STARR PASS: U.S. Bank Can Proceed With Suit in State Court STARR PASS: Can Hire Eason Rohde as Special Litigation Counsel STARWOOD PROPERTY: S&P Lowers Sr. Secured Debt Rating to 'BB' STATION CASINOS: Bank Debt Trades at 2% Off SUNGARD AVAILABILITY: S&P Lowers CCR to 'B'; Outlook Negative SUPERCONDUCTOR TECHNOLOGIES: Cash Is Insufficient for 2015 SWEET ONION TRADING: Case Summary & 17 Top Unsecured Creditors TACTICAL FIREARMS: Ex-Owner Refuses to Surrender Facebook Page TENET HEALTHCARE: Former Fla. Gov. Jeb Bush Quits From Board TLC HEALTH: Has Until Jan. 13 to File Chapter 11 Plan TRANSGENOMIC INC: Rodney Markin Quits From Board of Directors TRIGEANT HOLDINGS: Plan Filing Exclusivity Terminated TRIGEANT HOLDING: Can Hire Greenberg Traurig as Bankr. Counsel TRUMP ENTERTAINMENT: Lease Decision Period Extended to April 7 U.S. COAL: Judge Says Co. Can Begin Spending $2 Million Loan U-VEND INC: Incurs $286K Net Loss in Q3 Ending Sept. 30 ULTIMATE NUTRITION: Has Interim Authority to Use TD Bank Cash UNITED CONTINENTAL: Moody's Hikes Corporate Family Rating to B1 UNIVAR N.V.: Bank Debt Trades at 4% Off UNIVERSITY GENERAL: Closes UGH-Dallas Hospital VANN'S INC: Ex-Employees Settle Lawsuit Against Insiders VARIANT HOLDING: Wants Court to Set March 17 as Claim Bar Date VARIANT HOLDING: Has Until March 2015 on Lease-Related Decision VERMILLION INC: Has Equity Financing of up to $18.9 Million VERMILLION INC: Larry Feinberg Reports 18.8% Stake as of Dec. 23 VIGGLE INC: Obtains $2 Million Loan From Chairman and CEO VILLAGE GREEN: Court Affirms Dismissal of Suit vs. Fannie Mae VILLAGE GREEN: Fannie May Dispute Stays in Bankruptcy Court VISCOUNT SYSTEMS: Geoffrey Arens Appointed as Director VWR FUNDING: S&P Raises CCR to 'B+'; Outlook Stable WASHINGTON MUTUAL: Judge Approves $37MM Bankruptcy Settlement YARWAY CORP: Wants Court to Set March 18 as Claims Bar Date YELLOWSTONE MOUNTAIN: Blixseth Released From Jail ZUERCHER TRUST: Court Converts Case to Chapter 7 Liquidation ZUERCHER TRUST: Taps Matthew Sheridan to Valuate Bay Area Assets ZUERCHER TRUST: Taps Michael Abergel to Analyze LA Properties ZUERCHER TRUST: Trustee Taps Thomas Jeremiassen as Expert Witness ZYNEX INC: Obtains Forbearance From Senior Lender Until March 31 * Credit-Default Swaps Get New Look From Hedge Funds * Teen Apparel Sector Significant Restructuring Inevitable * BOND PRICING: For Week From December 22 to 26, 2014 ********* 1800 W. LAKE: No Quick Ruling in Suit v. American Chartered ----------------------------------------------------------- District Judge Matthew F. Kennelly denied the Defendants' motion for summary judgment in the lawsuit, 1800 W. LAKE STREET LLC, Plaintiff, v. AMERICAN CHARTERED BANK and SCHERSTON REAL ESTATE INVESTMENTS, LLC, Defendants, CASE NO. 14 C 420 (N.D. Ill.). The case is set for a status hearing on Jan. 5, 2015 at 9:30 a.m. for the purpose of setting a trial date and discussing the possibility of settlement. 1800 W. Lake Street on October 25, 2006, obtained a loan of $1,475,000 from American Chartered. The loan was secured by a mortgage in favor of American Chartered on real property located at 1800 W. Lake Street in Chicago. In addition, plaintiff and its affiliates obtained other loans from American Chartered related to other parcels of real property, as well as loans to pay taxes on those properties. Plaintiff was in danger of defaulting, and it entered into a series of forbearance agreements with American Chartered. Pursuant to one of these agreements, Plaintiff agreed to place a deed to the 1800 W. Lake Street property in escrow so that if Plaintiff defaulted, American Chartered would have the right to record the deed in lieu of foreclosing on its mortgage. Under the parties' agreement, if American Chartered recorded the deed, certain of plaintiff's loans from American Chartered would be deemed paid in full. Plaintiff defaulted, and American Chartered, through its affiliate Scherston Real Estate Investments, LLC, recorded the deed. Plaintiff then became insolvent and filed for bankruptcy. In connection with the bankruptcy case, plaintiff has sued American Chartered and Scherston, seeking to set aside the transfer of the property as fraudulent pursuant to 11 U.S.C. Sec. 548. Plaintiff alleges that it did not receive reasonably equivalent value in exchange for the transfer. A copy of the Court's Dec. 22, 2014 Memorandum Opinion and Order is available at http://is.gd/X2beTffrom Leagle.com. 1800 W. Lake Street LLC, owner of the real property located at 1800 W. Lake Street in Chicago, filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 13-49049) on Dec. 27, 2013. Hon. Benjamin A. Goldgar presides over the Chapter 11 case. The Debtor is represented by: David P Lloyd, Esq. DAVID P. LLOYD, LTD. 615B S. LaGrange Rd. LaGrange, IL 60525 Tel: 708 937-1264 Fax: 708 937-1265 E-mail: courtdocs@davidlloydlaw.com In its petition, the Debtor listed total assets of $2.40 million and total liabilities of $1.70 million. The petition was signed by Chris Bambulas, member/manager. A list of the Debtor's two largest unsecured creditors is available for free at http://bankrupt.com/misc/ilnb13-49049.pdf ACOSTA HOLDCO: S&P Withdraws 'B' CCR on Merger with Subsidiary -------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B' corporate credit rating on Acosta Holdco, Inc. following its merger into subsidiary Acosta Inc., the group's lead borrower. As a result of the merger and as contemplated in the debt issuance documents, Acosta Inc. is now the borrower under the $800 million notes and $2.29 billion credit facility. All of S&P's ratings on Acosta Inc., including its 'B' corporate credit rating, are unchanged, as is the stable outlook. AGFEED USA: Liquidation Plan Declared Effective ----------------------------------------------- AgFeed USA, LLC, et al., notified the Bankruptcy Court that the Effective Date of the Revised Second Amended Plan of Liquidation occurred on Nov. 10, 2014. As reported in the Troubled Company Reporter on Nov. 7, 2014, the Court confirmed the revised second amended plan, which was supported by the Official Committee of Equity Security Holders. The Debtors, prior to the Nov. 4 confirmation hearing, filed an amended supplement for its Revised Second Amended Chapter 11 Plan. According to BankruptcyData, the Amended Plan Supplement has been amended to include a revised Liquidating Trust Agreement and a reduced Insider Subordinated Claim Reserve, in the amount of $139,000, which is consistent with the settlement agreements with certain parties resolving their objections to the Plan. Law360 reported that the confirmation order was signed after the Debtors said they have settled nearly all of the objections to the plan. As previously reported by the TCR, the Plan provides for substantive consolidation of the Consolidated AgFeed USA Debtors and the liquidation of the Debtors' assets. The majority of the Debtors' assets have been liquidated, and the Plan provides for the estates' assets to be allocated and distributed to holders of allowed claims and interests. Holders of General Unsecured Claims, estimated to total $3,764,429, will recover 100% of their allowed claims. Holders of secured claims, estimated to total $1,456, and holders of priority non-tax claims, estimated to total $832, will also recover 100% of their allowed claims. About AgFeed Industries AgFeed Industries, Inc., has 21 farms and five feed mills in China producing more than 250,000 hogs annually. In the U.S., the business included 10 sow farms in three states and two feed mills producing more than one million hogs a year. AgFeed's revenue in 2012 was $244 million. AgFeed and its affiliates filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on July 15, 2013, with a deal to sell most of its subsidiaries to The Maschhoffs, LLC, for cash proceeds of $79 million, absent higher and better offers. The Debtors estimated assets of at least $100 million and debts of at least $50 million. Keith A. Maib signed the petition as chief restructuring officer. Hon. Brendan Linehan Shannon presides over the case. Donald J. Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' counsel. BDA Advisors Inc. acts as the Debtors' financial advisor. The Debtors' claims and noticing agent is BMC Group, Inc. The U.S. Trustee has appointed a five-member official committee of unsecured creditors to the Chapter 11 cases. The Creditors' Committee tapped Lowenstein Sandler as lead bankruptcy counsel and Greenberg Traurig, LLP, as co-counsel. CohnReznick LLP serves as the Creditors' Committee's financial advisor. An official committee of equity security holders was also appointed to the Chapter 11 cases. The Equity Committee tapped Sugar Felsenthal Grais & Hammer LLP and Elliott Greenleaf as co-counsel. Jefferies Leveraged Credit Products and Claims Recovery Group are represented by Lawrence J. Kotler, Esq., and Catherine B. Heitzenrater, Esq., at Duane Morris, LLP. ALCO STORES: Court Sets Jan. 16, 2015 as Claims Bar Date -------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas set Jan. 16, 2015 at 5:00 p.m. (prevailing Central Time) as the deadline for creditors of Alco Stores Inc. and its debtor- affiliates to file proofs of claim. The Court also set April 10, 2015 at 5:00 p.m. (prevailing Central Time) as deadline for all government units to file their claims. In addition, the Court fixed Jan. 16, 2015 at 5:00 p.m. (prevailing Central Time) as deadline for each person or entity to file a request for payment of claim pursuant to 11 U.S.C. Section 503(b)(9) against the appropriate Debtor. Proofs of Claim must be received on or before the applicable claim deadlines by Prime Clerk LLC, the Debtors' claims and noticing agent, at: ALCO Stores, Inc. Claims Processing Center c/o Prime Clerk LLC 830 3rd Avenue, 9th Floor New York, NY 10022 About ALCO Stores ALCO Stores, Inc., operates 198 stores in 23 states throughout the central United States. Alco offers 35,000 items at its stores, which are located at smaller markets usually not served by other regional or national broad line retail chains. The company was founded in 1901 as a general merchandising operation in Abilene, Kansas. ALCO is a public company, and its common stock is quoted on the NASDAQ National Market tier of the NASDAQ Stock Market under the ticker symbol "ALCS." ALCO Stores and ALCO Holdings LLC sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Lead Case No. 14-34941) in Dallas, Texas, on Oct. 12, 2014, with plans to let liquidators conduct store closing sales or sell the business to a going-concern buyer. Judge Stacey G. Jernigan presides over the Chapter 11 cases. The Debtors have DLA Piper LLP (US) as counsel, Houlihan Lokey Capital, Inc., as financial advisor, and Prime Clerk LLC as claims and noticing agent. Michael Moore has been named consultant to the Debtors. As of July 2014, ALCO Stores had assets totaling $222 million and liabilities totaling $162 million. The bulk of the liabilities was total debt outstanding under a credit facility with Wells Fargo Bank, National Association, of which the aggregate outstanding was $104.2 million as of the Petition Date. The U.S. Trustee for Region 6 appointed seven creditors to serve in the official committee of unsecured creditors of ALCO Stores, Inc. The Law Office of Judith W. Ross serve as local counsel to the Committee. ALEXZA PHARMACEUTICALS: Adopts 2014 Bonus Plan ---------------------------------------------- The Board of Directors of Alexza Pharmaceuticals, Inc., adopted the Company's 2014 Cash Bonus Plan for the Company's employees, including Thomas B. King, James V. Cassella, Edwin S. Kamemoto, Robert Lippe and Mark K. Oki. The Bonus Plan was adopted to motivate and retain the Company's employees. Under the Bonus Plan, the Board set corporate goals for 2014. To pay any cash bonus award to any employee under the Bonus Plan, including the Executive Officers, the Company must achieve 70% of the Corporate Goals, as determined by the Board. To receive any portion of his cash bonus award, each employee must be actively employed by the Company on Dec. 31, 2014, and be an employee in good standing. Under the terms of the Bonus Plan, each employee, including each Executive Officer, was assigned a target bonus percentage of such employee's current base salary for 2014, based on an evaluation by an outside compensation consulting firm of similar programs for similar companies. Pursuant to the terms of the Bonus Plan, the target bonus percentage was set at 60% of base salary for the Chief Executive Officer, and 40% of base salary for the other Executive Officers. The bonus amount payable to each employee was targeted at such employee's target bonus percentage, but employees, including the Executive Officers, may receive more than or less than 100% of their target bonus percentage, depending on corporate goal achievement, individual performance and Board discretion. The amounts payable are weighted for each employee, including Executive Officers, such that the Board's determination of the achievement of the Corporate Goals (and for all employees other than the Chief Executive Officer, the related department or individual goals as recorded with the Company's 2014 year-end individual performance evaluations) will account for 80% of the evaluation factor of the bonus potential for each employee, with the remaining 20% of the bonus potential being subject to the discretion of the Board. On Dec. 18, 2014, the Board determined that the Company achieved 79% of the Corporate Goals, and approved the payment of the cash bonuses related to the Corporate Goals under the Bonus Plan, and each of the Executive Officers, in addition to the other participants in the Bonus Plan, became entitled to receive the cash bonus associated with the Corporate Goals. The amounts awarded to the Executive Officers in connection with the Corporate Goals were as follows: Executive Officer Bonus Amount ----------------- ------------ Thomas B. King $241,181 President and Chief Executive Officer James V. Cassella, Ph.D. $135,690 Executive Vice President, Research and Development and Chief Scientific Officer Mark K. Oki $59,724 Senior Vice President, Finance, Chief Financial Officer and Secretary Edwin S. Kamemoto $91,640 Senior Vice President, Regulatory Affairs Robert A. Lippe $102,266 Executive Vice President, Operations and Chief Operations Officer 2015 Base Salary Increases On Dec. 18, 2014, the Board approved the following 2015 salary increases for the Executive Officers to be effective as of Jan. 1, 2015. The salary increases were based upon merit and a peer company review conducted by Radford. Executive Officer New Base Salary ----------------- --------------- James V. Cassella, Ph.D. $429,400 Executive Vice President, Research and Development and Chief Scientific Officer Mark K. Oki $324,450 Senior Vice President, Finance, Chief Financial Officer and Secretary Edwin S. Kamemoto $304,500 Senior Vice President, Regulatory Affairs Robert A. Lippe $387,600 Executive Vice President, Operations and Chief Operations Officer About Alexza Mountain View, California-based Alexza Pharmaceuticals, Inc., was incorporated in the state of Delaware on Dec. 19, 2000, as FaxMed, Inc. In June 2001, the Company changed its name to Alexza Corporation and in December 2001 became Alexza Molecular Delivery Corporation. In July 2005, the Company changed its name to Alexza Pharmaceuticals, Inc. The Company is a pharmaceutical development company focused on the research, development, and commercialization of novel proprietary products for the acute treatment of central nervous system conditions. Alexza Pharmaceuticals reported a net loss of $39.61 million in 2013, a net loss of $27.97 million in 2012 and a net loss of $40.53 million in 2011. The Company's balance sheet at Sept. 30, 2014, showed $65.8 million in total assets, $114.64 million in total liabilities and total stockholders' deficit of $48.84 million. ALLY FINANCIAL: U.S. Treasury to Sell 54.9 Million Common Shares ---------------------------------------------------------------- Ally Financial Inc., in connection with a registered underwritten secondary public offering of shares of its common stock, entered into an underwriting agreement with Goldman, Sachs & Co. and Morgan Stanley & Co. LLC, and the United States Department of the Treasury (the "Selling Stockholder"), pursuant to which the Selling Stockholder agreed to sell to the Underwriters 54,926,296 shares of the Company's common stock. The Company will not receive any proceeds from the sale of the shares of common stock in the Offering. The Underwriting Agreement contains customary representations, warranties and covenants of the Company, conditions to closing, indemnification obligations of the Company and the Underwriters, and termination and other customary provisions. A copy of the Underwriting Agreement is available for free at: http://is.gd/pzE9Kx About Ally Financial Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/-- is one of the world's largest automotive financial services companies. The Company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3 percent stake. Private equity firm Cerberus Capital Management LP keeps 14.9 percent, while General Motors Co. owns 6.7 percent. * * * As reported by the TCR on Dec. 16, 2013, Standard & Poor's Ratings Services said it raised its issuer credit rating on Ally Financial Inc. to 'BB' from 'B+'. "The upgrade reflects the company's release from potential legal and financial liabilities stemming from its ownership of ResCap," said Standard & Poor's credit analyst Tom Connell. In the April 3, 2014, edition of the TCR, Fitch Ratings has upgraded Ally Financial Inc.'s long-term Issuer Default Rating (IDR) and senior unsecured debt rating to 'BB+' from 'BB'. The rating upgrade reflects increased clarity around Ally's ownership structure given Ally's recent announcement that it has launched an initial public offering those shares of its common stock held by the U.S. Treasury (the Treasury). As reported by the TCR on July 16, 2014, Moody's Investors Service affirmed the Ba3 corporate family and B1 senior unsecured ratings of Ally Financial, Inc. and revised the outlook for the ratings to positive from stable. Moody's affirmed Ally's ratings and revised its rating outlook to positive based on the company's progress toward sustained improvements in profitability and repayment of government assistance received during the financial crisis. ALLY FINANCIAL: Registers $12.5 Billion Demand Notes ---------------------------------------------------- Ally Financial Inc. filed an automatic registration statement with the U.S. Securities and Exchange Commission on Form S-3ASR to register $12.5 billion of demand notes. The Demand Notes are unsecured and unsubordinated debt obligations of Ally Financial ranking equally with all of our other unsecured, unsubordinated obligations. The Demand Notes are not obligations of, or guaranteed by, any person or entity other than Ally Financial. Only the assets of Ally Financial are available for the payment of principal and interest. The Demand Notes have no stated maturity and are redeemable on demand. The Demand Notes may be redeemed in whole or in part by (i) writing a redemption check in an amount of $250 or more, (ii) wire transfer of redemption proceeds of $1,000 or more to a designated account or other Demand Note, (iii) automatic monthly or quarterly redemption by Automated Clearing House of specified amounts of $100 or more or automatic monthly interest redemption by ACH, (iv) authorizing an ACH redemption in an amount of $250 or more, (v) requesting in writing or by telephone that a redemption check in an amount of $250 or more be issued, and (vi) full redemption. Processing Agent: The Northern Trust Company P.O. Box 75707 Chicago, IL 60675-5707 Trustee: U.S. Bank National Association 535 Griswold, Suite 550, Detroit, Michigan 48226, under an Indenture dated as of Oct. 15, 1985, as amended and supplemented from time to time. A full-text copy of the regulatory filing is available at: http://is.gd/8BnVTp About Ally Financial Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/-- is one of the world's largest automotive financial services companies. The Company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3 percent stake. Private equity firm Cerberus Capital Management LP keeps 14.9 percent, while General Motors Co. owns 6.7 percent. * * * As reported by the TCR on Dec. 16, 2013, Standard & Poor's Ratings Services said it raised its issuer credit rating on Ally Financial Inc. to 'BB' from 'B+'. "The upgrade reflects the company's release from potential legal and financial liabilities stemming from its ownership of ResCap," said Standard & Poor's credit analyst Tom Connell. In the April 3, 2014, edition of the TCR, Fitch Ratings has upgraded Ally Financial Inc.'s long-term Issuer Default Rating (IDR) and senior unsecured debt rating to 'BB+' from 'BB'. The rating upgrade reflects increased clarity around Ally's ownership structure given Ally's recent announcement that it has launched an initial public offering those shares of its common stock held by the U.S. Treasury (the Treasury). As reported by the TCR on July 16, 2014, Moody's Investors Service affirmed the Ba3 corporate family and B1 senior unsecured ratings of Ally Financial, Inc. and revised the outlook for the ratings to positive from stable. Moody's affirmed Ally's ratings and revised its rating outlook to positive based on the company's progress toward sustained improvements in profitability and repayment of government assistance received during the financial crisis. AMERICAN APPAREL: Fund Asks Retailer to Consider Alternatives ------------------------------------------------------------- Suzanne Kapner, writing for The Wall Street Journal, reported that hedge fund Lion Capital is urging struggling retailer American Apparel Inc. to consider options like a sale, people familiar with the matter said. According to the report, citing the people, the hedge fund made its argument in a letter to American Apparel's board, saying the company should create a special committee to evaluate strategic alternatives following the retailer's receipt of a takeover offer from private-equity firm Irving Place Capital that valued the company at $1.30 to $1.40 a share. About American Apparel American Apparel is a vertically-integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. As of Sept. 30, 2014, American Apparel had approximately 10,000 employees and operated 245 retail stores in 20 countries including the United States and Canada. American Apparel also operates a global e-commerce site that serves over 60 countries worldwide at http://www.americanapparel.com. In addition, American Apparel operates a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. Amid liquidity problems and declining sales, American Apparel in early 2011 reportedly tapped law firm Skadden, Arps, Slate, Meagher & Flom and investment bank Rothschild Inc. for advice on a restructuring. In April 2011, American Apparel said it raised $14.9 million in rescue financing from a group of investors led by Canadian financier Michael Serruya and private equity firm Delavaco Capital Corp., allowing the casual clothing retailer to meet obligations to its lenders for the time being. Under the deal, the investors were buying 15.8 million shares of common stock at 90 cents apiece. The deal allows the investors to purchase additional 27.4 million shares at the same price. American Apparel has been in the red as far back as 2010. The Company reported a net loss of $106.29 million on $633.94 million of net sales for the year ended Dec. 31, 2013, as compared with a net loss of $37.27 million on $617.31 million of net sales for the year ended Dec. 31, 2012. American Apparel posted a net loss of $39.31 million on $547.33 million of net sales for the year ended Dec. 31, 2011, compared with a net loss of $86.31 million on $532.98 million of net sales during 2010. In 2011, American Apparel announced a restatement of its 2009 financial reports. The Company's balance sheet at Sept. 30, 2014, the Company had $307.18 million in total assets, $394.78 million in total liabilities and a $87.59 million total stockholders' deficit. * * * The TCR reported on Nov. 21, 2013, that Moody's Investors Service downgraded American Apparel Inc.'s corporate family rating to Caa2. The clothing retailer's probability of default was also lowered one level and the outlook is negative. As reported by the TCR on Sept. 2, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Los Angeles-based American Apparel Inc. to 'CCC-' from 'CCC'. The outlook is negative. "The downgrade reflects our assessment that a debt restructuring appears inevitable within six months, absent unanticipated significantly favorable changes in the company's circumstances," said Standard & Poor's credit analyst Ryan Ghose. AMERICAN APPAREL: Board Declares Dividend ----------------------------------------- The Board of Directors of American Apparel, Inc., declared a dividend distribution of one right for each outstanding share of common stock, par value $0.0001 per share, of the Company to shareholders of record at the close of business on Jan. 2, 2015, according to a regulatory filing with the U.S. Securities and Exchange Commission. Each Right entitles the registered holder to purchase from the Company a unit consisting of one ten-thousandth of a share of Series B Junior Participating Preferred Stock, par value $0.0001 per share, at a purchase price of $3.25 per Unit, subject to adjustment. The description and terms of the Rights are set forth in a Rights Agreement, dated as of Dec. 21, 2014, between the Company and Continental Stock Transfer & Trust Company as Rights Agent. A full-text copy of the Form 8-A is available for free at: http://is.gd/qMH3is About American Apparel American Apparel is a vertically-integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. As of Sept. 30, 2014, American Apparel had approximately 10,000 employees and operated 245 retail stores in 20 countries including the United States and Canada. American Apparel also operates a global e-commerce site that serves over 60 countries worldwide at http://www.americanapparel.com. In addition, American Apparel operates a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. Amid liquidity problems and declining sales, American Apparel in early 2011 reportedly tapped law firm Skadden, Arps, Slate, Meagher & Flom and investment bank Rothschild Inc. for advice on a restructuring. In April 2011, American Apparel said it raised $14.9 million in rescue financing from a group of investors led by Canadian financier Michael Serruya and private equity firm Delavaco Capital Corp., allowing the casual clothing retailer to meet obligations to its lenders for the time being. Under the deal, the investors were buying 15.8 million shares of common stock at 90 cents apiece. The deal allows the investors to purchase additional 27.4 million shares at the same price. American Apparel has been in the red as far back as 2010. The Company reported a net loss of $106.29 million on $633.94 million of net sales for the year ended Dec. 31, 2013, as compared with a net loss of $37.27 million on $617.31 million of net sales for the year ended Dec. 31, 2012. American Apparel posted a net loss of $39.31 million on $547.33 million of net sales for the year ended Dec. 31, 2011, compared with a net loss of $86.31 million on $532.98 million of net sales during 2010. In 2011, American Apparel announced a restatement of its 2009 financial reports. The Company's balance sheet at Sept. 30, 2014, the Company had $307.18 million in total assets, $394.78 million in total liabilities and a $87.59 million total stockholders' deficit. * * * The TCR reported on Nov. 21, 2013, that Moody's Investors Service downgraded American Apparel Inc.'s corporate family rating to Caa2. The clothing retailer's probability of default was also lowered one level and the outlook is negative. As reported by the TCR on Sept. 2, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Los Angeles-based American Apparel Inc. to 'CCC-' from 'CCC'. The outlook is negative. "The downgrade reflects our assessment that a debt restructuring appears inevitable within six months, absent unanticipated significantly favorable changes in the company's circumstances," said Standard & Poor's credit analyst Ryan Ghose. AMERICAN INT'L: Coventry Says Suit Bad for Business --------------------------------------------------- Donna Horowitz, writing for The Deal, reported that Coventry First LLC says that allegations made by an affiliate of American International Group Inc. have been "exceptionally bad" for its business. According to the report, the Fort Washington, Pa.-based life settlement provider said the insurer has undertaken an effort to destroy the company's business. As previously reported by The Troubled Company Reporter, David Boies, who represents Mr. Greenberg's Starr International Co., has made the case that the Government cheated IG shareholders of at least $25 billion partly for the benefit of an elite club of banks. Mr. Greenberg, who built AIG into a global financial- services powerhouse during nearly 40 years at its helm, is challenging the historic 2008 government bailout of the company and has asked a federal judge to rule that the government coerced AIG's board into harsh terms, allegedly cheating shareholders including Mr. Greenberg in the process. The case is Starr International Co. v. U.S., 11-cv-00779, U.S. Court of Federal Claims (Washington). About AIG With corporate headquarters in New York, American International Group, Inc., is an international insurance company, serving customers in more than 130 countries. AIG companies serve commercial, institutional and individual customers through property-casualty networks of any insurer. In addition, AIG companies are providers of life insurance and retirement services. At the height of the 2008 financial crisis, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. AIG almost collapsed under the weight of bad bets it made insuring mortgage-backed securities. The Company, however, was bailed out by the Federal Reserve, but even after an initial infusion of $85 billion, losses continued to grow. The later rescue packages brought the total to $182 billion, making it the biggest federal bailout in U.S. history. AIG sold off a number of its businesses and other assets to pay down loans received from the U.S. government. AMERICAN SANDS: Needs Additional Capital to Commence Operations --------------------------------------------------------------- American Sands Energy Corp. filed its quarterly report on Form 10- Q, reporting a net loss of $909,000 on $nil of total revenue for the three months ended Sept. 30, 2014, compared with a net loss of $792,000 on $nil of total revenue for the same period in 2013. The Company's balance sheet at Sept. 30, 2014, showed $1.89 million in total assets, $890,000 in total liabilities, and a stockholders' equity of $1 million. As of Sept. 30, 2014, the Company had cash and cash equivalents of $0.4 million and a working capital deficit of $32.0 million. The Company has incurred substantial losses from operations and has negative cash flows from operating activities, 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 Sept. 30, 2014 of $1.80 million and has an accumulated deficit of $16.4 million as of Sept. 30, 2014. In addition, the Company estimates it will require $150 million in capital to commence principal operations. A copy of the Form 10-Q is available at: http://is.gd/5y6ozZ American Sands Energy Corp. operates as a development stage company with interest in clean extraction of bitumen from oil sands. It has under lease oil sand deposits in Utah containing millions of barrels of recoverable bitumen resource. The company has also licensed and refined a proprietary extraction process that separates hydrocarbons from sand, dirt and other substances to produce a liquid fuel stock suitable for refining. American Sands Energy was founded by William C. Gibbs on April 7, 1983 and is headquartered in Salt Lake City, Utah. AMPLIPHI BIOSCIENCES: Philip Young Removed From Board ----------------------------------------------------- Ampliphi Biosciences Corporation held a special meeting of shareholders on Dec. 19, 2014, at which the shareholders: (1) authorized an amendment to the Amended and Restated Articles of Incorporation of the Company allowing its Board, in its discretion at any time prior to June 30, 2015, to effect a reverse stock split of the Company's outstanding common stock at a ratio at least five-for-one and up to fifty-for-one; (2) approved an amendment to the Company's Amended and Restated Articles of Incorporation modifying the requirements of director removal; and (3) removed Philip J. Young from the Board of the Company, effective Dec. 19, 2014. Amends Form S-1 Ampliphi Biosciences had amended its registration statement covering the sale of an aggregate of up to 73,362,164 shares of the Company's common stock, par value $0.01 per share, by Edward Cappabianca, OTA, LLC, NRM VII Holdings I, LLC, et al. The Shares consist of 72,007,000 shares of the Company's common stock that were issued pursuant to a Subscription Agreement, dated as of Dec. 19, 2013, and 1,355,164 shares underlying the exercise of warrants held by certain of the Selling Stockholders. The Company will not receive any proceeds from the sale by the Selling Stockholders of the shares covered by this prospectus. A copy of the Form S-1/A is available for free at: http://is.gd/cviPej About AmpliPhi AmpliPhi Biosciences Corp. is a biopharmaceutical company that develops bacteriophage-based therapeutics. It also develops an internally generated pipeline of naturally occurring viruses called bacteriophage (Phage) for the treatment of bacterial infection, such as drug-resistant strains of bacteria that are commonly found in the hospital setting. The company's Phage discovery also focuses on acute & chronic lung, sinus and gastrointestinal infections. AmpliPhi Biosciences was founded in March 1989 and is headquartered in Glen Allen, Virginia. The Company reported a net loss of $57.65 million on $325,000 of total revenue for the year ended Dec. 31, 2013, compared with a net loss of $1.11 million on $664,000 of total revenue in 2012. PBMares, LLP, in Richmond, Virginia, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has had recurring losses from operations and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. As of Sept. 30, 2014, the Company had $28.41 million in total assets, $17.08 million in total liabilities and $11.33 million in total stockholders' equity. ARAMID ENTERTAINMENT: Plan Proposal Period Extended to Jan. 9 ------------------------------------------------------------- Bankruptcy Judge Sean H. Lane granted Aramid Entertainment Fund Limited an extension (i) through and until January 9, 2015, of its exclusive period to propose a Chapter 11 plan, and (ii) through and until March 20, 2014, of its exclusive period to solicit acceptances of that plan. As reported in the Oct. 21, 2014 edition of the Troubled Company Reporter, Aramid Entertainment, et al., in seeking the exclusive period extension explained that in the first four months of the case, they have made substantial progress in the conduct of reorganizing their businesses. The duly appointed joint voluntary liquidators investigated and understood the assets and liabilities of the Debtors. Their findings show that the litigation between the Debtors and the parties David Molner and David Bergstein had historically, and continued to, consume an extraordinary amount of the Debtors' time and resources. Based on the number and intensity of the Actions, the Debtors concluded that if they were not resolved, the Actions would result in debilitating distraction and material and unlikely costs to them. Due to the number, complexity and expense associated with the Actions, the Debtors asserted that their strategy with respect to the Actions is a threshold issue in these cases that should logically be resolved before they proceed with the proposal of the plan. About Aramid Entertainment Aramid Entertainment Fund Limited has been engaged in the business of providing short and medium term liquidity to producers and distributors of film, television and other media and entertainment content by way of loans and equity investments. On May 7, 2014, Geoffrey Varga and Jess Shakespeare of Kinetic Partners (Cayman) Limited were appointed under Cayman law as the joint voluntary liquidators of AEF and two affiliates. On June 13, 2014, the JVLs authorized AEF and two affiliates to file for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-11802) in Manhattan on June 13, 2014. The Debtors have tapped James C. McCarroll, Esq., Jordan W. Siev, Esq., Richard A. Robinson, Esq., and Michael J. Venditto, Esq. of Reed Smith, LLP, in New York, as counsel and Kinetic Partners (Cayman) Limited as crisis managers. AEF estimated at least $100 million in assets and between $10 million to $50 million in liabilities. ARKANOVA ENERGY: Incurs $3 Million Net Loss in Fiscal 2014 ---------------------------------------------------------- Arkanova Energy Corporation filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $3 million on $844,303 of total revenue for the year ended Sept. 30, 2014, compared with a net loss of $2.73 million on $849,916 of total revenue for the year ended Sept. 30, 2013. As of Sept. 30, 2014, the Company had $2.52 million in total assets, $14.15 million in total liabilities and a $11.62 million total stockholders' deficit. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2014. The independent auditors noted that the Company has incurred cumulative losses since inception and has negative working capital, which raises substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/9N02xN About Arkanova Austin, Tex.-based Arkanova Energy Corporation is a junior producing oil and gas company and is also engaged in the acquisition, exploration and development of prospective oil and gas properties. It holds mineral leases in Delores County, Lone Mesa State Park, Colorado and leasehold interests located in Pondera and Glacier Counties, Montana. ASSOCIATED WHOLESALES: Wants Removal Period Extended to April 7 --------------------------------------------------------------- ADI Liquidation, Inc., formerly known as AWI Delaware, Inc., et al., ask the Bankruptcy Court to extend the period within which to remove actions for an additional 120 days through and including April 7, 2015. Since the Petition Date, the Debtors have made significant progress in resolving many of the issues facing the Debtors' estates. The Debtors have a legitimate need for additional time to remove the actions. Absent the requested relief, the Debtors will be prejudiced with their right to remove actions since they would lose an important part of their ability to manage litigation during the Chapter 11 cases. The hearing on the motion is set on Jan. 21, 2015, at 10:00 a.m. (EST). About Associated Wholesalers Founded in 1962 and headquartered in Robesonia, Pennsylvania, Associated Wholesalers Inc. serviced 800 supermarkets, specialty stores, convenience stores and superettes with grocery, meat, produce, dairy, frozen foods and general merchandise/health and beauty care products. AWI, with distribution facilities in Robesonia, Pennsylvania, and York, Pennsylvania, served the mid- Atlantic United States. AWI is owned by its 500 retail members, who in turn operate supermarkets. AWI had 1,459 employees. White Rose Inc. is a food wholesaler and distributor serving the greater New York metropolitan area. The company traces its origins to 1886, when brothers Joseph and Sigel Seeman founded Seeman Brothers & Doremus to provide grocery deliveries throughout New York City. White Rose carries out its operations through three leased warehouse and distribution centers, two of which are located in Carteret, New Jersey, and one in Woodbridge, New Jersey. White Rose has 777 employees. Associated Wholesalers and its affiliates sought Chapter 11 bankruptcy protection on Sept. 9, 2014, to sell their assets under 11 U.S.C. Sec. 363 to C&S Wholesale Grocers, absent higher and better offers. The Debtors have sought joint administration of their Chapter 11 cases for procedural purposes, seeking to maintain all pleadings on the case docket for AWI Delaware, Inc., Bankr. D. Del. Case No. 14-12092. As of the Petition Date, the Debtors owe the Bank Group (consisting of lenders, Bank of America, N.A., Bank of American Securities LLC as sole lead arranger and joint book runner, Wells Fargo Capital Finance, LLC as joint book runner and syndication agent, and RBS Capita, as documentation agent) an aggregate principal amount of not less than $131,857,966 (inclusive of outstanding letters of credit), plus accrued interest. The Debtors estimate trade debt of $72 million. AWI Delaware disclosed $11,440 in assets and $125,112,386 in liabilities as of the Chapter 11 filing. Saul Ewing LLP and Rhoads & Sinon LLP are serving as legal advisors to the Debtors, Lazard Middle Market is serving as financial advisor, and Carl Marks Advisors is serving as restructuring advisor to AWI. Carl Marks' Douglas A. Booth has been tapped as chief restructuring officer. Epiq Systems serves as the claims agent. The Official Committee of Unsecured Creditors tapped to retain Hahn & Hessen LLP as its lead counsel; Pepper Hamilton LLP as its co-counsel; and Capstone Advisory Group, LLC, together with its wholly-owned subsidiary Capstone Valuation Services, LLC, as its financial advisors. ASTANA FINANCE: Status Conference Adjourned Until June 2015 ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York adjourned until June 2, 2015, at 10:00 a.m., the status conference on the petition under Chapter 15 for recognition of foreign proceeding and motion for permanent injunction filed on behalf of JSC "Astana-Finance". The status conference was originally scheduled for Dec. 9, 2014. About Astana Finance JSC "Astana Finance", a financial-services company based in Kazakhstan, is seeking court protection from its U.S. creditors while it carries out its $1.9 billion restructuring plan in Kazakhstan. AF seeks recognition of pending proceedings before the specialized financial court of Almaty, Kazakhstan, as "foreign main proceeding". Marat Duysenbekovich Aitenov, as foreign representative, signed a Chapter 15 bankruptcy petition (Bankr. S.D.N.Y. Case No. 12-4113). The petition was filed Oct. 1, 2012. The Debtor is estimated to have at least $500 million in assets and at least $1 billion in liabilities. Bankruptcy Judge Allan L. Gropper oversees the Chapter 15 case. Alex R. Rovira, Esq., at Sidley Austin LLP, represents the Foreign Representative as counsel. AF was established as a Kazakhstan government funded body on Dec. 18, 1997, as the State Enterprise Fund of Economic and Social Development of Akmola Special Economic Zone in accordance with the law of Kazakhstan in Astana, Kazakhstan by a decision of the Administrative Council of Akmola Special Economic Zone. AF now acts primarily as the parent company for a group of companies providing banking and financial services, including a Kazakhstan bank, JSC Bank Astana Finance. AF said in court filings that its financial position suffered both directly and indirectly as a result of the global financial crisis. Specifically, the global financial crisis had a negative impact on the ability of borrowers to repay loans made by AF and its subsidiaries and on the prices of residential and commercial real estate in Kazakhstan over which such loans are secured. As of Dec. 31, 2009, 62.9% of the loan portfolio of AF's group of companies was comprised of loans for real estate development and construction and retail mortgage loans. In addition, the global capital markets suffered severe reductions in liquidity, greater volatility and general widening of spreads which resulted in a significantly reduced availability of funding for Kazakhstan borrowers such as AF. As a consequence of the negative impact on AF of these events, on several occasions between 2009 and 2011 the credit ratings of AF were downgraded and were eventually withdrawn in 2011, and AF's shares were delisted from the Kazakhstan Stock Exchange in October 2010. AF has submitted a plan that sets out the terms and procedures for the restructuring and/or cancellation of the indebtedness and indebtedness guarantees of AF and its subsidiaries. The principal amount of indebtedness to be restructured was approximately $1.9 billion (such amount subject to change because of disputed claims which are in the process of independent adjudication pursuant to, and in accordance with, the restructuring plan). Claim forms for the bulk of the debt were submitted. Only approximately 15% of the value of the debt was not covered by claim forms, but the debt will be discharged and cancelled in accordance with the terms of the restructuring plan. AF has creditors in the United States: (i) the Export-Import Bank of the United States, an export credit agency; (ii) certain beneficial owners of notes privately placed inside and outside the United States; and (iii) certain holders of notes placed exclusively outside the United States pursuant to Regulation S only who subsequently purchased Eurobonds in the secondary market. ATHLON HOLDINGS: Moody's Withdraws B2 Corporate Family Rating ------------------------------------------------------------- Moody's Investors Service has withdrawn all of its ratings on Athlon Holdings LP after Encana Corporation (Baa2 stable) completed its acquisition of the company and subsequently redeemed all of Athlon's outstanding $1.15 billion bonds on December 16, 2014. The ratings withdrawn include Athlon's B2 Corporate Family Rating, B2-PD Probability of Default Rating and SGL-2 Speculative Grade Liquidity Rating. This formally concludes Moody's review of Athlon's ratings that were placed on review on September 29, 2014. Issuer: Athlon Holdings LP Ratings Withdrawn: B2 Corporate Family Rating B2-PD Probability of Default Rating SGL-2 Speculative Grade Liquidity Rating Outlook Action: Withdraw Ratings Under Review for Upgrade Ratings Rationale Athlon Energy Inc. LP was previously engaged in the acquisition, exploration, development and production of oil and gas in the Midland Basin of West Texas. BALMORAL RACING: Files for Chapter 11 to Dodge Property Seizure --------------------------------------------------------------- Illinois-based affiliates Balmoral Racing Club, Inc. (Bankr. N.D. Ill. Case No. 14-45711) and Maywood Park Trotting Association, Inc. (Bankr. N.D. Ill. Case No. 14-45718) filed for Chapter 11 bankruptcy protection on Dec. 24, 2014, to continue operations into 2015 and protect themselves against property seizure, Tony Briscoe at Chicago Tribune reports. Chicago Tribune recalls that a state court had handed down a $78 million lawsuit judgment earlier in December for the tracks' ownership's role in an extortion scandal involving former Gov. Rod Blagojevich. Attorney William McKenna, who is representing the Johnston family -- the principal owner of the Debtors -- said during a Dec. 16, 2014 Illinois Racing Board that if they could not reach a lower settlement on the judgment, they would have to file for bankruptcy, a process that would take at least a year, Chicago Tribune relates. The Debtors said in a statement released on Dec. 24, 2014, that "the voluntary Chapter 11 filings will give the tracks sufficient breathing room to continue working through the process." Citing Illinois Racing Board Commissioners chairperson William Berry, Chicago Tribune states that commissioners would consider voting on the race tracks' wagering licenses on a month-to-month basis, starting with January, rather than for the entire calendar year, on the condition that their management and legal counsel regularly report their financial status. The report says that the next meeting will be held on Jan. 27, 2015, in the John R. Thompson Center. According to Chicago Tribune, the U.S. 7th Circuit Court of Appeals ordered on Dec. 11, 2014, (i) the Debtors to pay a total of $77.8 million to four of the state's riverboat casinos: Empress Casino in Joliet, Harrah's Casino in Joliet, Grand Victoria Casino in Elgin and Hollywood Casino in Aurora; and (ii) Balmoral president/Maywood vice-president John Johnston to pay the casinos $1 million each in punitive damages. The report says that the Debtors were sued on grounds that Mr. Johnston agreed to Gov. Blagojevich's request for a $100,000 campaign contribution ? which were never made -- in return for signing 2008 legislation to benefit the Debtors and the state's three thoroughbred tracks. In their Petitions, the Debtors each disclosed $10 million to $50 million in assets and $50 million $100 million. The Petitions were signed by John A. Johnston, president. Judge Donald R Cassling presides over the case. Chicago Tribune says that the two Chapter 11 cases will be heard jointly. Alexander F Brougham, Esq., Chad H. Gettleman, Esq., and Nathan Q. Rugg, Esq., at Adelman & Gettleman, Ltd., serve as the Debtors' bankruptcy counsel. Balmoral Racing Balmoral Racing Club, Inc., owns and runs its races at Balmoral Park in Crete, Illinois. BALMORAL RACING: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor affiiates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Balmoral Racing Club, Inc. 14-45711 26435 S. Dixie Highway Crete, IL 60417 Maywood Park Trotting Association, Inc. 14-45718 8600 W. North Avenue Melrose Park, IL 60160 Type of Business: Balmoral owns and runs its races at Balmoral Park, located in Crete, Illinois. Chapter 11 Petition Date: December 24, 2014 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Hon. Donald R Cassling Debtors' Counsel: Alexander F Brougham, Esq. ADELMAN & GETTLEMAN, LTD. 53 W. Jackson Blvd., Suite 1050 Chicago, IL 60604 Tel: (312) 435-1050 Email: abrougham@ag-ltd.com - and - Chad H. Gettleman, Esq. ADELMAN & GETTLEMAN, LTD. 53 West Jackson Boulevard, Suite 1050 Chicago, IL 60604 Tel: 312 435-1050 Ext. 215 Fax: 312 435-1059 Email: cgettleman@ag-ltd.com - and - Nathan Q. Rugg, Esq. ADELMAN & GETTLEMAN, LTD. 53 W. Jackson Blvd., # 1050 Chicago, IL 60604 Tel: 312 435-1050 Email: nrugg@ag-ltd.com Total Total Assets Debts ----------- ------------ Balmoral Racing Club $10MM-$50MM $50MM-$100MM Maywood Park Trotting $10MM-$50MM $50MM-$100MM The petitions were signed by John A. Johnston, president. List of Balmoral Racing Club's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Brittany Goodman Host fees and $21,139 Amwest Entertainment LLC Settlements 13011 W. Highway 42, Ste. 107 Prospect Heights, KY 40059 502-292-1075 x3 Delta Downs Host fees and $38,611 settlements Des Plaines Development LP Litigation/Stayed $21,801,000 c/o Robert M. Andalman Judgment A & G Law LLC Chicago, IL 60605 312-341-3900 Elgin Riverboat Resort- Litigation/Stayed $26,037,000 Riverboat Casino Judgment c/o Robert M. Andalman A & G Law LLC Chicago, IL 60605 312-341-3900 Elite Turf Club Host Fees and $76,055 Settlements Empress Casino Joliet Litigation/Stayed $12,624,000 Corporation Judgment c/o Robert M. Andalman A & G Law LLC Chicago, IL 60605 312-341-3900 Hollywood Casino-Aurora, Inc. Litigation/Stayed $17,358,000 c/o Robert M. Andalman Judgment A & G Law LLC Chicago, IL 60605 312-341-3900 Illinois Harness Horsemen's Control Daily $68,716 Association Assoc. Fee and Bike Claim MidAmerican Energy Company Contract Electricity $83,341 Monarch Content Management Host fees and $21,111 settlements New Meadowlands Racetrack, LLC Host fees and $25,536 Settlements Northfield Park Associaties LLC Host fees and $44,975 settlements Penn National c/o MRTA Host fees and $29,064 settlements Pompano Park Assoc. Host fees and $33,954 settlements Red Mile c/o Lexington Trots Host fees and $22,480 Breeders As settlements RGS Red Rock Administrative Host fees and $226,675 Services settlements Roberts Communications Goods-Decoder $66,009 Network Fees and services Woodbine Entertainment Host fees and $69,787 settlements Xpressbet Host fees and $49,017 settlements Yonkers Raceway Host fees and $22,665 settlements List of Maywood Park's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Arlington Park International 2014 Host Track $27,746 Race Course Expenses Churchill Downs Settlement & $116,066 Simulcast Fees Cook County Collector 1% Handle Tax $69,000 for ILLOTB/itw taxes/taxes Del Mar Thoroughbred Club Settlement & $21,298 Simulcast fees Delta Downs Settlement & Simulcast fees $45,493 Des Plaines Development LP Litigation/ $21,801,000 A & G Law LLC Stayed Judgment 542 S. Dearborn St., 10th Fl. Chicago, IL 60605 Tel: 312-341-3900 DuPage County Treasurer 1% Handle Tax $24,500 for ILLOTB Elgin Riverboat Resort-Riverboat Litigation/ $26,037,000 Casino Stayed Judgment c/o Robert M. Andalman A & G Law LLC Chicago, IL 60605 312-341-3900 Empress Casino Joliet Corporation Litigation/ $12,624,000 c/o Robert M. Andalman Stayed Judgment A & G Law LLC Chicago, IL 60605 312-341-3900 Evangeline Downs Settlement & $21,101 Simulcast Fees Hawthorne Race Course Purse & Comm and $64,800 2014 Host Track Expenses Hollywood Casino-Aurora, Inc. Litigation/ $17,358,000 c/o Robert M. Andalman Stayed Judgment A & G Law LLC 542 S. Dearborn St., 10th Floor Chicago, IL 60605 Northfield Park Settlement & $58,480 Simulcast Fees Ohio Settlement Agent Settlement & $26,947 Simulcast Fees Pari Global Solutions, Inc. Settlement & $68,833 Simulcast Fees Premier Gateway International Settlement & $26,099 Simulcast Fees Remington Park Settlement & $24,818 Simulcast Fees Village of Melrose Park Water & Sewer $40,000 Woodbine Settlement & $47,710 Simulcast Fees Yonkers Raceway Settlement & $23,269 Simulcast Fees BANESCO USA: Fitch Affirms 'B+' IDR; Outlook Stable --------------------------------------------------- Fitch Ratings has affirmed the Long-and Short-term IDRs of Banesco USA (BNSC) at 'B+' and 'B', respectively. The Rating Outlook is Stable. Fitch's rating action follows the downgrade of Banesco Banco Universal (BBU). KEY RATING DRIVERS - IDRs, VR In Fitch's view, BNSC's ratings are not immediately impacted by the downgrade of BBU. Although BNSC is affiliated with the Banesco Group and shares a common ownership, BNSC does not incorporate a holding company structure, and there is no direct ownership linkage to BBU. BNSC benefits from the 'Banesco' brand and its strong recognition in Latin America and is a market leader in Venezuela through BBU, Venezuela's largest privately held bank in terms of deposit and assets. Fitch notes that there may be risks to BNSC's Venezuelan depositors seeking other U.S. based-banking institutions to deposit their monies in the event of concern regarding BNSC or the Banesco Group. However, to date, BNSC has actually benefited from its association with the Banesco brand, despite volatility in Venezuela, as demonstrated by its stable deposit base. Should a change in depositor behavior becoming prevelant, BNSC's ratings may come under review. The funding structure is largely core deposit driven and benefits from a high volume of international deposits, which make up 61% of total deposits. The majority of international funding is sourced from Venezuelan depositors who have turned to U.S. banks as a safe haven. These deposits typically have a very low attrition rate, limited rate sensitivity and provide a stable source of low cost funding. In an effort to reduce reliance on Venezuelan funding, management has been working to grow domestic deposits in conjunction with loan growth. Fitch views the diversification of funding sources positively. Furthermore, BNSC maintains a high level of liquid assets to support immediate cash needs. BNSC's IDRs are currently constrained by low levels of profitability, its geographic and product concentration to the South Florida CRE market, and exposure to non-domestic credit markets. Conversely, the capital base and stable funding profile provide support to the credit profile and ratings. Although credit performance has remained solid over the past seven quarters and dramatically improved since the financial crisis, asset quality indicators may be benefitting from the rapid loan portfolio growth BNSC has experienced. Fitch considers BNSC's credit risk profile to be reflective of the rating. The company has exhibited strong growth, particularly in CRE and commercial credits, in recent years. Moreover, Fitch also considers BNSC to be product and geographically concentrated as CRE represents 400% of capital and is mainly in the Miami-Dade MSA. Additional credit risk considerations include the effects of sovereign risk in the international loan portfolio which makes up approximately 11% of total loans. Over half of the international portfolio consists of exposure to borrowers in Venezuela and is mainly secured by residential, and to a lesser extent CRE properties in South Florida. Although economic instability remains a concern in Venezuela, credit risk is offset by the strong level of collateral protection and prudent non-resident credit underwriting standards. BNSC's credit rating benefits from a solid capital structure. As Sept. 30, 2014, the company's Fitch core capital/risk-weighted assets ratio was 13.23% and its tangible common equity/tangible assets ratio was 9.32%. Fitch considers the capital base sufficient to support risks within the business mix; however, further balance sheet growth coupled with limited profitability have the potential to adversely impact capital ratios. Moreover, the lack of access to external capital is considered a rating constraint. BBU's downgrade was triggered by the rating action of the country Venezuela's IDR to 'CCC' from 'B' due to the country's high commodity dependence which has been negatively impacted by the significant decline in international oil prices pressuring financing flexibility and rising macroeconomic instability. For further details, please see 'Fitch Downgrades Venezuela's IDRs to 'CCC'' on Dec. 18, 2014. Additionally, the ratings of banks operating in Venezuela are constrained due to government control over the financial sector and broader economy as well as high exposure to the public sector. RATING SENSITIVITIES - IDRs, VR Sustained and improved profitability combined with the maintenance of strong credit performance, solid capital and liquidity levels would be considered positive rating drivers. Given BNSC's ties to the Banesco Group and in particular the Venezuelan deposit base, positive rating momentum would only occur following stabilization of the operating environment in Venezuela. Ratings could be negatively affected if BNSC experienced a declining trend in its depositor base and/or r unexpected events that impact Banesco Group. Other negative rating action trigger would be excess growth in high risk lending segments, which Fitch believes may result in comprising underwriting. Considering the recent trends and updated growth plans, Fitch considers this a relatively low likelihood. KEY RATING DRIVERS - SUPPORT RATING AND SUPPORT RATING FLOOR BNSC has a Support Rating of '5' and Support Rating Floor of 'NF'. In Fitch's view, BNSC is not systemically important and therefore, the probability of support is unlikely. The IDRs and VRs do not incorporate any support. Historically, BNSC's principal shareholders have demonstrated a willingness to provide capital; however, Fitch's rating analysis does not assume capital support from the shareholders RATING SENSITIVITIES - SUPPORT RATING AND SUPPORT RATING FLOOR BNSC's Support Rating and Support Rating Floor are sensitive to Fitch's assumption around capacity to procure extraordinary support in case of need. KEY RATING DRIVERS - LONG AND SHORT-TERM DEPOSIT RATINGS BNSC's uninsured deposit ratings are rated one notch higher than the company's IDR because U.S. uninsured deposits benefit from depositor preference. U.S. depositor preference gives deposit liabilities superior recovery prospects in the event of default. RATING SENSITIVITIES - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings of long- and short-term deposits issued by BNSC are primarily sensitive to any change in BNSC's long- and short-term IDRs. Fitch affirms these ratings: Banesco USA (BNSC) -- Long-term IDR at 'B+'; Outlook Stable; -- Short-term IDR at 'B'; -- Long-term deposits at 'BB-'; -- Short-term deposits at 'B'; -- Viability at 'b+'; -- Support at '5'; -- Support Floor at 'NF'. BENTLEY PREMIER: Wants Final Decree Closing Reorganization Case --------------------------------------------------------------- Bentley Premier Builders, LLC, now known as Starside Custom Builders, LLC, asks the Bankruptcy Court to enter a final decree closing its Chapter 11 case. According to the Reorganized Debtor, the Plan was confirmed and has been substantially consummated. The Reorganized Debtor has paid its U.S. Trustee's fees and has satisfied its administrative requirements. About Bentley Premier Bentley Premier Builders, LLC, is a Texas limited liability company in the business of selling high-end residential lots and building high-quality luxury homes. The Debtor owns and develops lots, primarily in the two subdivisions known as Normandy Estates, which straddles both Denton and Collin Counties, near the intersection of Spring Creek Parkway and Midway Road in Plano, and Wyndsor Pointe, which is located in Frisco off Stonebrook Parkway, one-half mile west of the Dallas North Tollway. The company has 100 vacant residential lots, with listing prices ranging from $150,000 to $900,000. In addition to these vacant lots, the company owns a model house and an Amenities Center in Normandy Estates, two houses in Wyndsor Pointe, some common areas and an approximately 5-acre tract zoned for commercial use. Bentley filed a Chapter 11 petition (Bankr. E.D. Tex. Case No. 13-41940) on Aug. 6, 2013 in Sherman, Texas. The Debtor disclosed $35,793,857 in assets and $30,428,782 in liabilities as of the Chapter 11 filing. The Phillip M. Pourchot Revocable Trust (led by co-trustee Phillip M. Pourchot) and Sandy Golgart each hold a 50% member's interest in the Debtor. Ms. Golgart signed the bankruptcy petition. The Debtor sought bankruptcy after Starside LLC, an entity owned by Phillip Pourchot, acquired the note issued to Sovereign Bank for a $7,250,000 loan, and served notice of its attempt to foreclose upon properties securing the note. Gerald P. Urbach, Esq., and Jason A. Katz, Esq., at Hiersche, Hayward, Drakeley & Urbach, P.C., in Addison, Texas, serve as the Debtor's counsel. Judge Brenda Rhoades presides over the case. A Chapter 11 trustee was appointed following motions filed by the U.S. Trustee and the Pourchot Trust. Jason R. Searcy, the Chapter 11 trustee, tapped to employ Joshua P. Searcy, Esq., at Searcy & Searcy, P.C. as attorneys, and Gollob, Morgan, Peddy & Co., P.C., as accountants. The deadline to file claims against and interest in the Debtor was Dec. 5, 2013. Governmental entities had until Feb. 3, 2014, to file proofs of claim. Golgart is represented by Mark A. Castillo, Esq., and Joshua L. Shepherd, Esq., at Curtis | Castillo PC; and John T. Palter, Esq., and Kimberly M. J. Sims, Esq., at Palter Stokley Sims Wright PLLC. The Pourchot Parties are represented by Mark E. Andrews, Esq., and Aaron M. Kaufman, Esq., at Cox Smith Matthews Incorporated; and Laura L. Worsham, Esq., and Lynn Schleiner, Esq., at Jones, Allen & Fuquay, LLC. BIOLIFE SOLUTIONS: Annual Meeting of Stockholders Set for May 4 --------------------------------------------------------------- BioLife Solutions, Inc., will hold its 2015 annual meeting of stockholders on May 4, 2015. Because the expected date for the Annual Meeting represents a change of more than 30 days from the anniversary of the Company's 2014 annual meeting of stockholders held on Aug. 6, 2014, the Company has set a new deadline for receipt of stockholder proposals for inclusion in the Company's proxy statement for the Annual Meeting, pursuant to Rule 14a-8 of the Securities Exchange Act of 1934, as amended, of Jan. 15, 2015. Any such proposals must contain certain specified information, including, among other things, information as would be required to be included in a proxy statement under Securities and Exchange Commission rules. All proposals or other notices should be addressed to the Company at 3303 Monte Villa Parkway, Suite 310, Bothell, Washington 98021, Attention: Chief Financial Officer. The proxies that the Company solicits for the 2015 Annual Meeting will confer discretionary authority on the proxy holders to vote on any stockholder proposal presented at that meeting, unless the Company receives notice of such stockholder's proposal not later than Feb. 6, 2015. About BioLife Solutions Bothell, Washington-based BioLife Solutions, Inc., develops and markets patented hypothermic storage and cryo-preservation solutions for cells, tissues, and organs, and provides contracted research and development and consulting services related to optimization of biopreservation processes and protocols. BioLife Solutions incurred a net loss of $1.08 million in 2013, a net loss of $1.65 million in 2012, and a net loss of $1.95 million in 2011. As of Sept. 30, 2014, the Company had $14.25 million in total assets, $1.58 million in total liabilities and $12.66 million in total shareholders' equity. BIOLIFE SOLUTIONS: Files Post-Effective Amendment to Form S-1 ------------------------------------------------------------- BioLife Solutions, Inc., filed with the U.S. Securities and Exchange Commission a post-effective amendment to its registration statement on Form S-1 relating to the sale by the Company of up to 3,604,651 units, with the Units consisting in the aggregate of (1) 3,604,651 shares of the Company's common stock and (2) 3,604,651 warrants exercisable for an aggregate of 3,604,651 Common Shares. The Company sold 3,588,878 of the Units pursuant to the Registration Statement on March 25, 2014. None of the Warrants have been exercised, and all of the Warrants remain outstanding and exercisable for the Warrant Shares. The Company's common stock is listed on The NASDAQ Capital Market under the symbol "BLFS". On Dec. 23, 2014, the Company's common stock closed at $1.81 per share. A full-text copy of the amended prospectus is available at: http://is.gd/hbhPa9 About BioLife Solutions Bothell, Washington-based BioLife Solutions, Inc., develops and markets patented hypothermic storage and cryo-preservation solutions for cells, tissues, and organs, and provides contracted research and development and consulting services related to optimization of biopreservation processes and protocols. BioLife Solutions incurred a net loss of $1.08 million in 2013, a net loss of $1.65 million in 2012, and a net loss of $1.95 million in 2011. As of Sept. 30, 2014, the Company had $14.25 million in total assets, $1.58 million in total liabilities and $12.66 million in total shareholders' equity. BIOLITEC INC: Court Won't Vacate Order Expunging Insiders' Claim ---------------------------------------------------------------- Judge Donald H. Steckroth of the U.S. Bankruptcy Court for the District of New Jersey denied the motion filed by Kelly Moran and Carol Morello (the "New Jersey Plaintiffs") to vacate this Court's August 19, 2014 Order expunging their proof of claim in the Chapter 11 case of Biolitec, Inc. The New Jersey Plaintiffs are shareholders and insiders of the Debtor, the United States affiliate of a multi-national group of companies in the business of manufacturing and distributing medical lasers and fiber optic devices, pharmaceuticals, and industrial fiber optics. The corporate structure of the Debtor and its various subsidiaries and affiliates is complex. The New Jersey Plaintiffs own 10% of the Debtor, while the remaining 90% is owned by Biolitec AG. Wolfgang Neuberger is the President, Chief Executive Officer, and Chairman of the Board of Directors of the Debtor, and the sole owner of Biomed Technology Holdings, Ltd., which owns 74.3% of Biolitec AG. While it is not disputed that Mr. Neuberger had significant control over the operations of the Debtor and its related entities, the extent of the New Jersey Plaintiffs' knowledge and involvement in the Debtor's financing transactions and day to day operations is disputed. On June 29, 2009, the New Jersey Plaintiffs filed a complaint against the Debtor, Biolitec AG, Mr. Neuberger, and Biomed in the Superior Court of New Jersey, Chancery Division, Mercer County, Docket No. C-63-09, asserting a cause of action under New Jersey's shareholder oppression statute for Mr. Neuberger's alleged oppressive conduct, fraud, and looting of the Debtor's assets. In their motion, the New Jersey Plaintiffs argue that the expungement should be vacated pursuant to Rule 60(b) of the Federal Rules of Civil Procedure because they have an allowable claim against the Debtor and the Order was entered in error after they failed to respond to an objection to the claim due to a misunderstanding regarding the scheduling of the hearing date. The Motion is opposed by Biolitec Holdings U.S., Inc., Biolitec Medical Devices, Inc., and CeramOptec Industries, Inc. (collectively, the "Non-Debtor Affiliates") and by Melanie L. Cyganowski, the Chapter 11 Trustee (the "Trustee") for the Estate of the Debtor. The Non-Debtor Affiliates and the Trustee argue that the Motion should be denied because the claim was properly expunged and that grounds to vacate the order under Rule 60(b) are not present. While it is within a court's discretion to set aside a final judgment when required in the interest of justice, relief under Rule 60(b) is "extraordinary" and should only be granted in "exceptional" circumstances, the Court said. Judge Steckroth explained that the misunderstanding cited by counsel does not constitute an "extraordinary" circumstance that justifies relief under Rule 60(b) because the New Jersey Plaintiffs had the burden of proving the sufficiency of their claim and there is no reasonable explanation for their failure to respond to the Objection. "Given that the New Jersey Plaintiffs had the burden of proof, there is no reasonable explanation for their failure to defend their claim in the more than two months that transpired between the date the Objection was filed and the hearing," Judge Steckroth opined. A full-text copy of the November 26, 2014 Opinion is available at http://bit.ly/1HJVQ2ifrom Leagle.com. The New Jersey Plaintiffs are represented by: Eric R. Levine, Esq. Peter Reiser, Esq. EISEMAN LEVINE LEHRHAUPT & KAKOYIANNIS, P.C. 805 3rd Avenue New York, NY 10022 Telephone: (212) 752-1000 E-mail: preiser@eisemanlevine.com - and - Laurence May, Esq. Kenneth L. Baum, Esq. COLE, SCHOTZ, MEISEL, FORMAN & LEONARD, P.A. Court Plaza North 25 Main Street Hackensack, NJ 07601 Telephone: (201) 489-3000 Facsimile: (201) 489-1536 E-mail: lmay@coleschotz.com kbaum@coleschotz.com Parties-in-Interest, Biolitec AG, BioMed Technology Holdings, Ltd., CeramOptec Industries, Inc., and Wolfgang Neuberger are represented by: Joseph J. DiPasquale, Esq. Henry M. Karwowski, Esq. TRENK, DIPASQUALE, DELLA, FERA & SODONO, P.C. 347 Mount Pleasant Avenue, Suite 300 West Orange, NJ 07052 Telephone: (973) 243-8600 Facsimile: (973) 243-8677 E-mail: jdipasquale@trenklawfirm.com hkarwowski@trenklawfirm.com - and - Edward Griffith, Esq. THE GRIFFITH FIRM 235 W 76Th St., Suite 6C New York, NY 10023 The Chapter 11 Trustee is represented by: Brian T. Crowley, Esq. MCDONNELL CROWLEY HOFMEISTER, LLC 115 Maple Avenue, Suite 201 Red Bank, NJ 07701 Telephone: (732) 383-7233 Facsimile: (732) 383-7531 E-mail: bcrowley@mcdonnellcrowley.com - and - David Posner, Esq. OTTERBOURG, STEINDLER, HOUSTON & ROSEN, P.C. 230 Park Avenue New York, NY 10169-0075 Telephone: (212) 661-9100 Facsimile: (212) 682-6104 E-mail: dposner@otterbourg.com Creditor AngioDynamics, Inc. is represented by: Douglas J. McGill, Esq. WEBBER MCGILL LLC 760 Route 10, Suite 104 Whippany, NJ 07981 Telephone: (973) 739-9559 Facsimile: (973) 739-9575 E-mail: dmcgill@webbermcgill.com - and - Joseph Zagraniczny, Esq. Stephen A. Donato, Esq. Sara C. Temes, Esq. BOND SCHOENECK & KING, PLLC One Lincoln Center 110 West Fayette Street Syracuse, NY 13202-1355 Telephone: (315) 218-8000 Facsimile: (315) 218-8100 E-mail: jzagraniczny@bsk.com sdonato@bsk.com stemes@bsk.com About Biolitec Inc. Biolitec, Inc., is a member of the Biolitec Group, a multinational group of affiliated companies that is a global market leader in the manufacture and distribution of fiber optic devices and products such as medical lasers and fibers, photo-pharmaceuticals and industrial fiber optics. Biolitec AG, a German public company listed on the highly regulated Prime Standard segment of the Frankfurt stock exchange, is the ultimate parent of the Debtor. Biolitec, Inc., filed a Chapter 11 petition (Bankr. D.N.J. Case No. 13-11157) on Jan. 22, 2013, to stop competitor AngioDynamics Inc. from collecting $23 million it won in a breach of contract lawsuit. Brian K. Foley signed the petition as chief operating officer. In its schedules, the Debtor listed $8,986,073 in assets and $46,286,763 in liabilities. BOYD GAMING: Bank Debt Trades at 2% Off --------------------------------------- Participations in a syndicated loan under which Boyd Gaming is a borrower traded in the secondary market at 97.85 cents-on-the- dollar during the week ended Friday, December 27, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 1.35 percentage points from the previous week, The Journal relates. Boyd Gaming pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on August 12, 2020, and carries Moody's Ba3 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 212 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. BUFFET PARTNERS: Bailey Brauer Wins Court Battle Over Back Taxes ---------------------------------------------------------------- Attorneys from the Dallas complex litigation boutique Bailey Brauer PLLC won a court battle over the filing and payment of back taxes for Buffet Partners L.P., the former parent company of Furr's Cafeteria. In a Dec. 17 ruling, Judge Harlin DeWayne Hale of the U.S. Bankruptcy Court for the Northern District of Texas ordered Atlanta-based Chatham Credit Management III LLC (CCM) to file and pay Buffet Partners' 2013 and 2014 taxes and preparation expenses, the combined total of which could be as much as $130,000. In April, CCM purchased the assets of San Antonio-based Buffet Partners, including Furr's Cafeteria, just two months after Buffet Partners filed for bankruptcy protection. Shortly after, CCM resold the same assets to Arizona-based Fresh Acquisitions LLC, which has since rebranded the Furr's franchise as Furr's Fresh Buffet. Although the purchase agreement between CCM and Buffet Partners required CCM to file Buffet Partners' tax returns and pay the taxes and preparation expenses, CCM repeatedly refused to do so, says Bailey Brauer named partner Alex Brauer. He represents Buffet Partners Holding Co. LLC (BPHC), which owns Buffet Partners and its general partner, Buffet G.P. Inc. BPHC did not file bankruptcy and participated solely as the equity interest holder of Buffet Partners and Buffet G.P. "Chatham Credit's purchase and immediate asset resale left Buffet Partners without the resources necessary to wind up their corporate affairs, including filing and paying their taxes," Mr. Brauer says. The situation was complicated by the fact that Chatham Credit is an affiliate of Chatham Capital Partners Inc., which holds the vast majority of Buffet Partners' debt and essentially controls the company. "Chatham Capital has used its unique position to maximize its own recovery in the bankruptcy at the expense of other creditors," says Ben Stewart, of counsel to Bailey Brauer and co-counsel in the case. "We're grateful to Judge Hale for requiring Chatham to abide by the agreements the company willingly signed." Bailey Brauer PLLC is committed to providing efficient, effective legal representation in high-stakes litigation. Led by experienced trial and appellate lawyers Clayton Bailey and Alex Brauer, the firm focuses on complex commercial litigation, agribusiness, appeals, and class and collective actions. About Buffet Partners Buffet Partners, L.P., owns and operates Furr's Fresh Buffet, a restaurant chain with 29 restaurants in Arizona, Arkansas, New Mexico, Oklahoma and Texas. With a 65+ year operating history, Furr's -- http://www.furrs.net/-- operates straight-line and scatter-bar buffet units that feature a variety of all-you-can-eat and home-cooked foods served at an affordable price. Buffet Partners was formed to purchase Furr's in September 2003. Headquartered in Plano, Texas, Buffet Partners and an affiliate sought Chapter 11 protection in Dallas (Bankr. N.D. Tex. Case No. Case No. 14-30699) on Feb. 4, 2014. Attorneys at Baker & McKenzie LLP serve as counsel to the Debtors. Bridgepoint Consulting is the financial advisor. Buffet Partners disclosed $33,281,729 in assets and $48,926,256 in liabilities as of the Chapter 11 filing. William T. Neary, U.S. Trustee for Region 6, appointed five creditors to serve in the Official Committee of Unsecured Creditors. Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP serves as its counsel. Mesirow Financial Consulting, LLC, serves as its financial advisors. The restaurant was founded in 1946 by Roy Furr, and expanded to approximately 60 locations as a family-owned business for over 35 years. In 1980, it was acquired by Kmart Corporation. Kmart ultimately sold Furr's in a leveraged buy-out which subsequently went public in 1986. Following a take-private transaction, the Company entered a period of decline due to its debt burden, culminating in a restructuring and reorganization under chapter 11 in 2003 in Dallas, Texas. CAESARS ENTERTAINMENT: Five Law Firms Advise Cos. in Merger ----------------------------------------------------------- Nell Gluckman at The AM Law Daily reports that these five AM Law 100 firms play role in the merger of Caesars Entertainment Corporation and Caesars Acquisition Company: a. Latham & Watkins, counsel to CAC: corporate partners Raymond Lin, Stephen Amdur, Charles Ruck, and Michael Treska; finance and banking partner Mark Broude; litigation partner Christopher Harris; benefits and compensation partner Bradd Williamson; tax partner David Raab; and Latham associates Matthew Dewitz, Lori Goodman, Kristian Herrmann, and Liliana Parias Neuburg; b. Skadden, Arps, Slate, Meagher & Flom, counsel to CAC's board of director's special committee: corporate partners Rodrigo Guerra Jr. and Andrew Garelick; corporate restructuring partner Van Durrerr II; litigation partner Eric Waxman; tax partner Kenneth Betts; federal income tax partner Andre LeDuc; and associates Allison Hunter, Annie Li, and Barbara Swensied c. Paul, Weiss, Rifkind, Wharton & Garrison, counsel to CEC: John Scott and Brian Finnegan, both partners in the firm's corporate department and members of its mergers and acquisitions group; d. Reed Smith, counsel to CEC's special committee: M&A partner Howard Shecter, corporate partner Glenn Mahone, and associates Adam Cohen and Ken Siegel; and e. Weil, Gotshal & Manges, counsel to Centerview Partners, the financial adviser to CEC's special committee: corporate partner Matthew Gilroy; business, finance and restructuring partner Michael Walsh; and securities litigation partner John Neuwirth, as well as associates Evert Christensen, John Godfrey and Frank Martire. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. -- http://www.caesars.com/-- is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. Caesars Entertainment reported a net loss of $2.93 billion in 2013, as compared with a net loss of $1.50 billion in 2012. The Company's balance sheet at Sept. 30, 2014, showed $24.5 billion in total assets, $28.20 billion in total liabilities and a $3.71 billion total deficit. * * * In the April 10, 2014, edition of the TCR, Standard & Poor's Ratings Services lowered its corporate credit ratings on Las Vegas-based Caesars Entertainment Corp. (CEC) and wholly owned subsidiaries, Caesars Entertainment Operating Co. (CEOC) and Caesars Entertainment Resort Properties (CERP), as well as the indirectly majority-owned Chester Downs and Marina, to 'CCC-' from 'CCC+'. The downgrade reflects S&P's expectation that Caesars' capital structure is unsustainable, and the amount of cash the company will burn in 2014 and 2015 creates conditions under which S&P believes a restructuring of some form is increasingly likely over the near term absent an unanticipated significantly favorable change in operating performance. As reported by the TCR on May 1, 2014, Fitch Ratings had downgraded the Issuer Default Ratings (IDRs) of Caesars Entertainment Corp (CEC) and Caesars Entertainment Operating Company (CEOC) to 'CC' from 'CCC'. In May 2014, Moody's Investors Service affirmed the Caa3 corporate family rating and Caa3-PD probability of default ratings. The negative rating outlook reflects Moody's view that CEOC will pursue a debt restructuring in the next year. Ratings could be lowered if CEOC does not take steps to address it unsustainable capital structure. Ratings improvement is not expected unless there is a significant reduction in CEOC's $18 billion debt load. As reported by the TCR on Dec. 18, 2014, Fitch Ratings downgraded the Issuer Default Rating (IDR) of Caesars Entertainment Operating Company (CEOC) to 'C' from 'CC'. The downgrade of the IDR to 'C' reflects CEOC's missed $223 million interest payment to the holders of the 10% second lien notes that was due December 15. As reported by the TCR on Dec. 18, 2014, Moody's Investors Service downgraded the ratings of Caesars Entertainment Operating Company, including the corporate family rating, to Ca from Caa3. As reported by the TCR on Dec. 18, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating to 'D' from 'CCC-' on Caesars Entertainment Operating Co. Inc. (CEOC), a majority-owned subsidiary of Caesars Entertainment Corp. "We lowered the rating as a result of the company's decision not to pay approximately $225 million in interest that was due on Dec. 15, 2014 on $4.5 billion of 10% second-priority senior secured notes due 2015 and 2018," said Standard & Poor's credit analyst Melissa Long. CAESARS ENTERTAINMENT: Bank Debt Won't Deter Ch. 11 Plan for Unit ----------------------------------------------------------------- Lisa Allen, writing for The Deal, reported that Caesars Entertainment Corp. plans to pursue a mid-January Chapter 11 bankruptcy filing for its debt-laden operating unit with or without the support of the investors who hold its bank debt, according to two sources familiar with the situation. According to the report, multiple bank debt investors have pulled out of restructuring negotiations over the last two months and the informal committee of bank lenders' exit from talks on Dec. 10 has led observers to question that debt class's support for the restructuring plan that's backed by a steering committee of first- lien bondholders. Still, as long as at least 60% of first-lien bondholders pledge their support for the restructuring plan, a mid-January bankruptcy filing will go forward, The Deal said, citing a first-lien bondholder, who asked to remain unnamed. About Caesars Entertainment Operating Company Inc. Caesars Entertainment Operating Company, Inc., a majority owned subsidiary of Caesars Entertainment Corporation, provides casino entertainment services and owns, operates or manages 44 gaming and resort properties in 13 states of the United States and in five countries primarily under the Caesars, Harrah's and Horseshoe brand names. * * * The all-stock deal, according to David Gelles, writing for The New York Times' DealBook, will leave Caesars Entertainment with $1.7 billion in cash, much of which will be used to fund the bankruptcy. The DealBook said that the move, for creditors, is good news, bringing several of the best Caesars properties back into the parent company and avoiding the assumption of more debt. Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that a steering committee representing holders of 38 percent of first-lien creditors of Caesars Entertainment Operating Co. Inc. has signed an agreement laying out the terms of a Caesars Entertainment Operating Chapter 11 reorganization to start around mid-January. According to the Bloomberg report, the restructuring is contingent on signing up a total of 60 percent of first-lien bondholders by Jan. 5. To be effective, the deal also requires that holders of two-thirds of the senior bonds must sign up before the bankruptcy filing on Jan. 15 or not later than Jan. 30, the Bloomberg report related. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. -- http://www.caesars.com/-- is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. Caesars Entertainment reported a net loss of $2.93 billion in 2013, as compared with a net loss of $1.50 billion in 2012. The Company's balance sheet at Sept. 30, 2014, showed $24.5 billion in total assets, $28.20 billion in total liabilities and a $3.71 billion total deficit. CAESARS ENTERTAINMENT: Extends Restructuring Agreement Deadlines ---------------------------------------------------------------- Caesars Entertainment Corporation, Caesars Entertainment Operating Company, Inc., a majority owned subsidiary of CEC, and holders of over 38% of claims in respect of CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior secured notes due 2020 and CEOC's 9% senior secured notes due 2020 agreed to extend certain deadlines set forth in the Restructuring Support and Forbearance Agreement, dated as Dec. 19, 2014, among CEC, CEOC and the Consenting Creditors, the entry of which was previously announced by CEC and CEOC on Dec. 19, 2014. The Parties agreed to: (i) extend from noon on Dec. 24, 2014, to 5:00 p.m., New York City time, on Dec. 28, 2014, the time by which the Parties are obligated to reach an agreement with respect to the remaining terms of the operating leases and the Management and Lease Support Agreement; (ii) extend from Dec. 24, 2014, to Dec. 29, 2014, the date by which any holder of the First Lien Notes may sign the RSA and have the option to elect to join the backstop for the $300 million of preferred equity of the restructured property company; (iii) Jan. 5, 2014, as the date by which allocations must be determined among the Preferred Backstop Investors for the Preferred PropCo Equity; and (iv) extend from 5:00 p.m., New York City time, on Jan. 5, 2014, to 5:00 p.m., New York City time, on Jan. 9, 2015, the time until which creditors holding at least 60% of the First Lien Bond Claims must sign the RSA for the RSA to become effective. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. -- http://www.caesars.com/-- is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. Caesars Entertainment reported a net loss of $2.93 billion in 2013, as compared with a net loss of $1.50 billion in 2012. The Company's balance sheet at Sept. 30, 2014, showed $24.5 billion in total assets, $28.20 billion in total liabilities and a $3.71 billion total deficit. * * * In the April 10, 2014, edition of the TCR, Standard & Poor's Ratings Services lowered its corporate credit ratings on Las Vegas-based Caesars Entertainment Corp. (CEC) and wholly owned subsidiaries, Caesars Entertainment Operating Co. (CEOC) and Caesars Entertainment Resort Properties (CERP), as well as the indirectly majority-owned Chester Downs and Marina, to 'CCC-' from 'CCC+'. The downgrade reflects S&P's expectation that Caesars' capital structure is unsustainable, and the amount of cash the company will burn in 2014 and 2015 creates conditions under which S&P believes a restructuring of some form is increasingly likely over the near term absent an unanticipated significantly favorable change in operating performance. As reported by the TCR on May 1, 2014, Fitch Ratings had downgraded the Issuer Default Ratings (IDRs) of Caesars Entertainment Corp (CEC) and Caesars Entertainment Operating Company (CEOC) to 'CC' from 'CCC'. In May 2014, Moody's Investors Service affirmed the Caa3 corporate family rating and Caa3-PD probability of default ratings. The negative rating outlook reflects Moody's view that CEOC will pursue a debt restructuring in the next year. Ratings could be lowered if CEOC does not take steps to address it unsustainable capital structure. Ratings improvement is not expected unless there is a significant reduction in CEOC's $18 billion debt load. As reported by the TCR on Dec. 18, 2014, Fitch Ratings downgraded the Issuer Default Rating (IDR) of Caesars Entertainment Operating Company (CEOC) to 'C' from 'CC'. The downgrade of the IDR to 'C' reflects CEOC's missed $223 million interest payment to the holders of the 10% second lien notes that was due December 15. As reported by the TCR on Dec. 18, 2014, Moody's Investors Service downgraded the ratings of Caesars Entertainment Operating Company, including the corporate family rating, to Ca from Caa3. As reported by the TCR on Dec. 18, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating to 'D' from 'CCC-' on Caesars Entertainment Operating Co. Inc. (CEOC), a majority-owned subsidiary of Caesars Entertainment Corp. "We lowered the rating as a result of the company's decision not to pay approximately $225 million in interest that was due on Dec. 15, 2014 on $4.5 billion of 10% second-priority senior secured notes due 2015 and 2018," said Standard & Poor's credit analyst Melissa Long. CAMARILLO PLAZA: Final Decree Entered; Reorganization Case Closed ----------------------------------------------------------------- The Bankruptcy court entered a final decree closing the Chapter 11 case of Camarillo Plaza, LLC. As reported in the Troubled Company Reporter on Oct. 8, 2014, the Debtor said that the order confirming the Plan has become final. The Plan was confirmed on Sept. 30, 2013. The Court-approved sale has been consummated; all creditors provided for in the Plan have been paid; and there are no pending proceedings in which the Debtor may be found guilty of felony. As reported in the TCR on Dec. 16, 2013, the Bankruptcy Court confirmed the Debtor's Third Amended Plan of Reorganization. Upon receipt of proceeds of the sale of Debtor's property, Debtor's counsel, Janet A. Lawson, Esq., will place $500,000 in a separate attorney trust fund account as a reserve to pay for the disputed claims of Brendan's Irish Pub & Restaurant and Ramiro Martinez against Debtor's estate and promptly cure all defaults of Debtor (if any), under the leases Debtor has assumed and assigned to the buyer of Debtor's property. As reported in the TCR on Aug. 27, 2013, the Debtor filed with the Bankruptcy Court a third amended Chapter plan of reorganization that will be funded through the all-cash sale of the Debtor's 74,072 square foot shopping center commonly known as Camarillo Plaza and the underlying real property, located at 1701-1877 East Daily Drive, in Camarillo, California to be conducted via a competitive bidding process. Following consummation of the sale, there will be net cash proceeds sufficient to satisfy all allowed claims. The Debtor and the Wells Fargo Bank, N.A., as Trustee for the Registered Holders of Credit Suisse First Boston Mortgage Securities Corp., Commercial Pass-Through Certificates, Series 2006-C3, entered into the stipulation regarding Claim 3-1 filed by Wells Fargo. The parties agreed that as of July 15, 2013, the allowed claim is $15,159,517, subject to adjustments. General unsecured creditors holding undisputed claims will recover 100% without interest on the Effective Date. A copy of the Third Amended Plan is available at: http://bankrupt.com/misc/camarilloplaza.doc174.pdf About Camarillo Plaza Shopping center operator Camarillo Plaza LLC, based in Los Angeles, California, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-59637) on Dec. 5, 2011. Judge Sheri Bluebond was assigned to the case. At the Debtor's behest the next day, the case was transferred to the Northern Division (Bankr. C.D. Calif. Case No. 11-bk-15562). The case in the Los Angeles Division was closed, and Judge Robin Riblet took over from Judge Bluebond. The Debtor scheduled assets of $21.6 million and liabilities of $12.3 million as of the Chapter 11 filing. Janet A. Lawson, Esq., in Ventura County, California, serves as the Debtor's counsel. The petition was signed by Aaron Arnold Klein, managing partner. Alan M. Feld, Esq., at Sheppard, Mullin, Richter & Hampton LLP represents creditor Wells Fargo Bank, N.A. On Sept. 12, 2013, the Court approved the sale of the Debtor's primary asset -- a shopping center located at 1701-1877 East Daily 22 Drive, Camarillo, California. On Oct. 30, the sale was consummated and escrow closed. The Debtor also won confirmation of its Third Amended Plan of Reorganization on Oct. 30, 2013. The Plan was funded through the all-cash sale of the 74,072 square foot shopping center commonly known as Camarillo Plaza and the underlying real property. The Debtor and Wells Fargo Bank, N.A., as Trustee for the Registered Holders of Credit Suisse First Boston Mortgage Securities Corp., Commercial Pass-Through Certificates, Series 2006-C3, entered into a stipulation regarding Claim 3-1 filed by Wells Fargo. The parties agreed that as of July 15, 2013, the allowed claim is $15,159,517, subject to adjustments. General unsecured creditors holding undisputed claims will recover 100% without interest on the Effective Date. As a part of the Plan, $500,000 was ordered to be held in a segregated attorney trust fund account maintained by Janet A. Lawson to pay for two disputed claims. One of those claims has been resolved leaving $399,196 in the trust fund account. The other claim is the one filed by Brendan's Camarillo, LLC. CENTRIC HEALTH: S&P Keeps B- CCR on Revised Liquidity Assessment ---------------------------------------------------------------- Standard & Poor's Ratings Services said its ratings on Centric Health Corp. are unchanged following its revision of its liquidity descriptor on Centric Health to "less than adequate" from "adequate". While the company has benefited from a significant amount of cash proceeds from recent asset divestitures, a portion of which has been used to repay debt, Centric's C$40 million senior secured revolver, an important source of financial flexibility, matures in June 2015. Furthermore, the company has also yet to establish a consistent track record of positive free cash flow generation. Remaining proceeds from the divestitures are required to be used for acquisitions and/or repayment of debt. S&P's 'B-' corporate credit rating on Centric reflects its assessment of the company's business risk profile as "weak" and financial risk profile as "highly leveraged". Following its recent divestitures, the company is refocusing on three core areas -- physiotherapy, rehabilitation, and wellness; specialty pharmacy; and surgical and medical centers. S&P believes the increased focus will lead to improved margins and cash flow generation. However, leverage remains high, at over 9x, and S&P expects only gradual improvement. RATINGS LIST Centric Health Corp. Corporate Credit Rating B-/Stable/-- Senior secured notes B- Recovery rating 4 CHARLES FOGARTY: Defendants in Suit vs. Palumbo Win Judgment ------------------------------------------------------------ The Superior Court of Rhode Island in Kent County grants all four of the Defendants' motions for summary judgment in the consolidated lawsuit captioned Fogarty v. Palumbo, et al. The current dispute between the parties involves a 360-acre tract of land located in Hopkinton, Rhode Island. The land, known as the Reserve at Brushy Brook, was owned originally by Mr. Fogarty in the 1970s. In 1994, Mr. Fogarty sold the Property from his Chapter 11 Bankruptcy estate. An entity called Stone Ridge, Inc. purchased the Property from Mr. Fogarty's bankruptcy estate. Stone Ridge is comprised of four shareholders: Plaintiffs Fogarty and Ottenbacher; Grant Schmidt, M.D.; and William McComb. In 2002, the Property was transferred from Stone Ridge to Brushy Brook Development, LLC. Brushy Brook's sole member was the Stone Ridge entity. The Plaintiffs allege to have suffered damages as a result of the Property's transfer to Boulder Brook LLC, and not to the Ottenbacher purchasing group. The Plaintiffs contend their losses consist of losing their respective share of the land, as well as the profits which could have been made by developing the Property. Specifically, the Plaintiffs point to lost profits from condominium sales, house lots, and revenues generated by a golf course, exercise facility, and restaurant. In response, the Defendants move for summary judgment on the grounds that the Plaintiffs have failed to provide proof, to a reasonable degree of certainty, as to the amount of lost profits actually incurred as a result of their offer not being accepted. By failing to introduce sufficient evidence regarding their damages, the Defendants claim this controversy is ripe for summary judgment. The Plaintiff is represented by: Michael T. Finan, Esq. FINAN AND GROURKE 24 Spring Street Pawtucket, Rhode Island Telephone: (401) 723-6800 - and - Philip J. Laffey, Esq. MARSHALL & LAFFEY LTD. 3 Regency Plaza, Suite 3 Providence, RI 02903 Telephone: (401) 727-4100 Facsimile: (401) 228-6165 E-mail: plaffey@marshall-laffey.com The Defendants are represented by: Vincent A. Indeglia, Esq. INDEGLIA & ASSOCIATES ATTORNEYS AT LAW The Summit East, Suite 320 300 Centerville Road Warwick, RI 02886 Telephone: (401) 886-9240 E-mail: vincent@indeglialaw.com - and - Patricia A. Buckley, Esq. BENGTSON & JESTINGS, LLP 40 Westminster Street, Suite 300 Providence, RI 02903 Telephone: (401) 331-7272 Toll free: (866) 657-6250 Facsimile: (401) 331-4404 A full-text copy of the Decision dated December 1, 2014, is available at http://bit.ly/1uCU2B5from Leagle.com. Charles E. Fogarty filed for Chapter 11 bankruptcy in 1994. The lawsuits are Charles E. Fogarty v. Ralph Palumbo, Pilgrim Title Insurance and Jonathan Savage, Case No. KB-2008-1073; and James Ottenbacher v. Ralph Palumbo, Pilgrim Title Insurance and Jonathan Savage, Case No. KB-2008-1087, in the Superior Court of Rhode Island for Kent County. CHINA FRUITS: Has $520K Working Capital Deficit in Third Quarter ---------------------------------------------------------------- China Fruits Corp. filed its quarterly report on Form 10-Q, reporting net income of $245,000 on $2.86 million of total revenue for the three months ended Sept. 30, 2014, compared with a net loss of $62,000 on $662,000 of revenue for the same period in 2013. The Company's balance sheet at Sept. 30, 2014, showed $10.6 million in total assets, $7.48 million in total liabilities, and stockholders' equity of $3.14 million. As of Sept. 30, 2014, the Company had accumulated deficits of $1.33 million and working capital deficit of current liabilities exceeding current assets by $520,000 due to the substantial losses in operation in prior years and default of its notes payable. Management has taken certain action and continues to implement changes designed to improve the Company's financial results and operating cash flows, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/kqx6lz Headquartered in Nan Feng County, Jiang Xi Province, P.R.C., China Fruits Corp. was incorporated in the State of Delaware on Jan. 6, 1993 as Vaxcel, Inc. On Dec. 19, 2000, CHFR changed its name to eLocity Networks Corporation. On Aug. 6, 2002, CHFR further changed its name to Diversified Financial Resources Corporation. The principal activities of CHFR at that time was seeking and consummating a merger or acquisition opportunity with a business entity. On May 12, 2006, CHFR was re-domiciled to the State of Nevada. On May 31, 2006, CHFR completed a stock exchange transaction with Jiangxi Taina Guo Ye Yon Xian Gong Si ("Tai Na"). Tai Na was incorporated as a limited liability company in the P.R.C. on Oct. 28, 2005, with its principal place of business in Nanfeng Town, Jiangxi Province, the P.R.C. Tai Na is principally engaged in manufacturing, trading, and distributing of Nanfeng tangerine, and operating franchise retail stores for fresh fruits through its wholly-owned subsidiary, Tai Na International Fruits (Beijing) Co. Ltd. * * * As reported in the TCR on April 19, 2013, Lake & Associates CPA's LLC, in Schaumburg, Ill., in its report on China Fruits Corp.'s consolidated financial statements for the fiscal year ended Dec. 31, 2012, said that the Company's accumulated deficit and negative cash flow from operations raise substantial doubt about the Company's ability to continue as a going concern. CIT GROUP: Moody's Continues Review of Ba3 Sr. Unsecured Rating --------------------------------------------------------------- Moody's Investors Service said that it is continuing its review of CIT Group Inc.'s Ba3 senior unsecured rating for possible downgrade. CIT's corporate family rating remains unchanged at Ba3 with a stable outlook. Ratings Rationale Moody's has extended the review for downgrade of CIT's senior unsecured rating because the company's planned acquisition of California-based OneWest Bank is still pending. On July 22, 2014, Moody's affirmed CIT's Ba3 corporate family rating with a stable outlook, reflecting Moody's expectation that the overall credit implications of the OneWest acquisition will be neutral to CIT's credit profile. Moody's placed CIT's senior unsecured rating on review for downgrade based on its expectation that the transaction will increase the structural subordination of CIT's senior unsecured creditors to the depositors at subsidiary CIT Bank. CIT expects the acquisition, not yet approved by regulators, to close in mid-2015. Positive aspects of CIT's acquisition of OneWest include increased diversification of revenues from the addition of OneWest's banking services platform and a lower cost of funding from the growth in deposit funding. CIT will also be subject to increased regulatory scrutiny because it will grow to more than $50 billion in assets, requiring that the company adhere to enhanced regulatory mandates applicable to systemically important financial institutions (SIFIs), an additional credit positive. Acquisition risks include the future performance of OneWest's commercial and legacy loan portfolios, rapid growth in recent years, and the uncertain resilience of the bank's deposit franchise, including to a change in interest rates and competitive pressures. At closing, CIT Bank will double in size to nearly $43 billion of assets, with deposits increasing to $28.7 billion from $14.4 billion on a pro forma basis at September 30, 2014. The bank's assets will grow to over 60% of CIT's consolidated assets from about 44% at September 2014, while deposits will expand to 56% of total funding from 43%. The transition of a higher proportion of CIT's earning assets into CIT Bank will result in parent company creditors having weaker earning asset coverage than the bank's creditors, a trend that Moody's expects will continue. Additionally, the holding company's earnings and assets could be used by the parent to support the bank should it become necessary in the future. The principal methodology used in this rating was Finance Company Global Rating Methodology published in March 2012. CIT Group Inc. is a $46 billion financial holding company primarily focused on serving the small business and middle market sectors with headquarters in New York City and Livingston, New Jersey. OneWest is a privately owned regional bank that operates 73 retail branches in Southern California, with nearly $22 billion in assets at September 30, 2014. COLDWATER CREEK: Bankruptcy Cases of Other Debtors Closed --------------------------------------------------------- The Bankruptcy Court entered a final decree closing the Chapter 11 cases of consolidated non-lead debtors in the cases of CWC Liquidation Inc. formerly known as Coldwater Creek Inc, et al. About Coldwater Creek Coldwater Creek is a multi-channel retailer that offers its merchandise through retail stores across the country, its catalog and its e-commerce Web site, http://www.coldwatercreek.com/ Originally founded in Sandpoint, Idaho in 1984 as a direct, catalog-based marketer, Coldwater evolved into a multi-channel specialty retailer operating 334 premium retail stores, 31 factory outlet stores and seven day spa locations throughout the United States. As of the bankruptcy filing, the Debtors domestically employ a total of approximately 5,990 employees throughout their retail locations, corporate headquarters and distribution, design and call centers. Coldwater Creek Inc. and its debtor-affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10867) on April 11, 2014, to liquidate their assets. Coldwater Creek Inc. disclosed assets of $721,468,388 plus undetermined amount and liabilities of $425,475,739 plus undetermined amount. Affiliate Coldwater Creek U.S. Inc. estimated $100 million to $500 million in assets and liabilities. The Debtors have drawn $37.5 million and have approximately $10 million in letters of credit outstanding under a senior secured credit facility (ABL facility) provided by lenders led by Wells Fargo Bank, National Association, as agent. The Debtors also owe $96 million, which includes accrued interest and approximately $23 million representing a prepayment premium payable, under a term loan from lenders led by CC Holding Agency Corporation, as agent. Aside from the funded debt, the Debtors have accumulated a significant amount of accrued and unpaid trade and other unsecured debt in the normal course of their business. The Debtors have tapped Young Conaway Stargatt & Taylor, LLP, and Shearman & Sterling LLP as attorneys, Perella Weinberg Partners LP as financial advisor, Alvarez & Marsal as restructuring advisor, and Prime Clerk LLC as claims and noticing agent. The U.S. Trustee for Region Three named seven creditors to serve on the official committee of unsecured creditors. Lowenstein Sandler LLP represents the Committee. CWC Liquidation Inc., formerly known as Coldwater Creek Inc., et al., notified the Bankruptcy Court that the effective date of its Modified Third Amended Joint Plan of Liquidation occurred on Sept. 26, 2014. COLDWATER CREEK: L. Trustee Has Until March 5 to Remove Actions --------------------------------------------------------------- The Bankruptcy Court extended until March 5, 2015, the time for the Liquidating Trustee for CWC Liquidation Inc. formerly known as Coldwater Creek Inc, et al., to file notices to remove actions. As reported in the TCR on Nov. 28, 2014, according to the Liquidating Trustee, since the Sept. 26, 2014 Effective Date, it has been reviewing and reconciling, and has begun to prepare objections to, the more than 2,500 proofs of claim that have been filed in the cases. The efforts have included, and will continue to include, work to resolve Claims that remain subject to litigation pending in other jurisdictions. About Coldwater Creek Coldwater Creek is a multi-channel retailer that offers its merchandise through retail stores across the country, its catalog and its e-commerce Web site, http://www.coldwatercreek.com/ Originally founded in Sandpoint, Idaho in 1984 as a direct, catalog-based marketer, Coldwater evolved into a multi-channel specialty retailer operating 334 premium retail stores, 31 factory outlet stores and seven day spa locations throughout the United States. As of the bankruptcy filing, the Debtors domestically employ a total of approximately 5,990 employees throughout their retail locations, corporate headquarters and distribution, design and call centers. Coldwater Creek Inc. and its debtor-affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10867) on April 11, 2014, to liquidate their assets. Coldwater Creek Inc. disclosed assets of $721,468,388 plus undetermined amount and liabilities of $425,475,739 plus undetermined amount. Affiliate Coldwater Creek U.S. Inc. estimated $100 million to $500 million in assets and liabilities. The Debtors have drawn $37.5 million and have approximately $10 million in letters of credit outstanding under a senior secured credit facility (ABL facility) provided by lenders led by Wells Fargo Bank, National Association, as agent. The Debtors also owe $96 million, which includes accrued interest and approximately $23 million representing a prepayment premium payable, under a term loan from lenders led by CC Holding Agency Corporation, as agent. Aside from the funded debt, the Debtors have accumulated a significant amount of accrued and unpaid trade and other unsecured debt in the normal course of their business. The Debtors have tapped Young Conaway Stargatt & Taylor, LLP, and Shearman & Sterling LLP as attorneys, Perella Weinberg Partners LP as financial advisor, Alvarez & Marsal as restructuring advisor, and Prime Clerk LLC as claims and noticing agent. The U.S. Trustee for Region Three named seven creditors to serve on the official committee of unsecured creditors. Lowenstein Sandler LLP represents the Committee. CWC Liquidation Inc., formerly known as Coldwater Creek Inc., et al., notified the Bankruptcy Court that the effective date of its Modified Third Amended Joint Plan of Liquidation occurred on Sept. 26, 2014. CONVATEC HEALTHCARE: CEO Departure No Impact on Moody's B2 CFR -------------------------------------------------------------- Moody's Investors Service commented on the announcement by ConvaTec Healthcare A S.a.r.l that its CEO, Ken Berger, will step down and be replaced on an interim basis by Paul Moraviec, currently ConvaTec's president in Europe, Middle East and Africa, while the Board searches for a permanent successor. The unexpected leadership change is credit negative because it raises uncertainty about the company's long-term leadership and strategy, and is occurring at a time when ConvaTec faces challenges on multiple fronts. However, ConvaTec's B2 Corporate Family Rating and negative outlook are not affected by the announcement. The principal methodology used in this rating was the Global Medical Products & Device Industry published in October 2012. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. ConvaTec is a leading developer, manufacturer and marketer of products for ostomy management, advanced chronic and acute wound care, continence & critical care (CCC), sterile single-use medical devices for hospitals, and infusion sets used in diabetes treatment. ConvaTec generated approximately $1.8 billion of revenues for the 12 months ended September 30, 2014. ConvaTec is owned by Nordic Capital and Avista Capital Partners. CORD BLOOD: Seeks to Dismiss Lawsuit vs. Tonaquint and St. George ----------------------------------------------------------------- In a transaction that closed on Dec. 17, 2014, and in settlement of the previously disclosed litigation matter between Cord Blood America, Inc., on the one hand, and St. George Investments LLC, and Tonaquint, Inc., on the other, Case Number 2:13-CV-00806-PMW filed in the United States District Court for the District of Utah, Center Division, the Company, St. George and Tonaquint entered into a settlement and exchange agreement. Pursuant to the Settlement Agreement, the Secured Convertible Promissory Note and the Warrant to Purchase Shares of Common Stock issued by the Company to St. George on or around March 10, 2011, as well as the Note and Warrant Purchase Agreement pursuant to which the St. George Note and St. George Warrant were issued, and all other documents that made up the March 2011 transaction between the Company and St. George, all of which have been set forth in detail in prior filings by the Company, were terminated, cancelled or otherwise extinguished. Further pursuant to the Settlement Agreement, the Secured Convertible Promissory Note issued by the Company to Tonaquint on or around June 27, 2012, was exchanged for a Secured Convertible Promissory Note of the Company in the principal amount of $2,500,000, and certain of the other documents that were part of the June 27, 2012, transaction between the Company and Tonaquint were terminated, cancelled or otherwise extinguished, and certain of them were amended. Under the Company Note, the Company shall make monthly payments to Tonaquint, with the first payment due on or before April 17, 2015, and with payments continuing thereafter until the Company's Note is paid in full, with a maturity date that is 33 calendar months after April 17, 2015. The amount of the monthly payments is $100,000; provided, however, that if the remaining amount owing under the Company Note as of the applicable Installment Date is less than $100,000, then the Installment Amount for such Installment Date shall be equal to the outstanding amount. The Company may prepay any or all of the outstanding amount of the Company Note at any time, without penalty. In the event the Company prepays an amount that is less than the outstanding amount, then the prepayment amount shall be applied to the next Installment Amounts due under the Company Note. For each monthly payment, the Company may elect to designate all or any portion of the Installment Amount then due as a conversion eligible amount; provided that the total outstanding Conversion Eligible Amount that has not been converted by Tonaquint, at any given time may not exceed $100,000 without Tonaquint's prior written consent and subject to additional restrictions set forth in the Company Note. In the event the Company designates any portion of any monthly payment amount as a Conversion Eligible Amount, the applicable monthly payment shall be reduced by an amount equal to the portion thereof designated as a Conversion Eligible Amount. The Conversion Eligible Amount shall continue to be included in and be deemed to be a part of the Outstanding Balance of the Company Note unless and until such amount is either paid in cash by the Company or converted into Common Stock by Tonaquint. The Company may pay the Conversion Eligible Amount in cash, provided that no prepayments of cash shall reduce the Conversion Eligible Amount until the Outstanding Balance is equal to or less than the Conversion Eligible Amount. Once the Company has designated amounts as Conversion Eligible Amount, Tonaquint may convert all or any portion of that amount into shares of the Company's Common Stock. In the event of a conversion by Tonaquint of a Conversion Eligible Amount, the number of Common Stock shares delivered to Tonaquint upon conversion will be calculated by dividing the amount of the Company Note that is being converted by 70% of the average of the three lowest Closing Bid Prices of the Common Stock in the 20 Trading Days immediately preceding the applicable Conversion. The Company Note has an interest rate of 7.5%, which would increase to a rate of 15.0% on the happening of certain Events of Default that are not considered a Payment Default, provided that the Company may cure the default in accordance with and subject to the terms set forth in the Company Note. Where a Payment Default occurs, including where (i) Borrower shall fail to pay any principal, interest, fees, charges, or any other amount when due and payable under that Company Note; or (ii) Borrower shall fail to deliver any Conversion Shares in accordance with the terms of the Company Note, late fees shall accrue as set forth in the Company Note, and in addition, the Company shall have 90 days from delivery of notice of default from Tonaquint to cure the default, as set forth in more detail in the Company Note. If the Company fails to cure the Payment Default, Tonaquint may accelerate the Company Note by written notice to the Company, with the Outstanding Balance becoming immediately due and payable in cash at the Mandatory Default Amount (defined in the Company Note) equal to (i) the Outstanding Balance as of the date of acceleration (which Outstanding Balance, for the avoidance of doubt, will include all Late Fees that accrue until any applicable Payment Default is cured) multiplied by (ii) two hundred fifty percent (250%), along with other remedies, as set forth in the Company Note. The Company Note, as well as a First Amendment to Security Agreement, which amended the Security Agreement entered as part of the June 2012 Tonaquint Transaction and Consent to Entry of Judgment by Confession, along with a First Amendment to Guaranty executed by all wholly owned subsidiaries of the Company, which amended the Amendment to Guaranty that was entered as part of June 2012 Tonaquint Transaction were each delivered along with the Settlement Agreement. The Transaction Documents contain representations and warranties of the Company and Tonaquint that are customary for transactions of this kind. On Dec. 22, 2014, the Company, Tonaquint and St. George filed a Stipulated Motion to Dismiss with Prejudice the lawsuit between and among those same parties in the United States District Court for the District of Utah, Central Division, case number 2:13-cv- 00806-PMW, and on that same day, the Court entered an Order of Dismissal, dismissing the Action in its entirety. Employment Agreement with President The Company entered into an executive employment agreement with Joseph R. Vicente, the Company's president and chairman of the Board, which is effective as of Jan. 1, 2015, and will terminate as of Dec. 31, 2017, unless earlier terminated by the Company or Mr. Vicente in accordance with the Employment Agreement. Mr. Vicente's Executive Employment Agreement provides for a base salary equal to $135,000, as well as an annual bonus, payable at the discretion of the Board of Directors, equal to 30% of Mr. Vicente's base salary for that calendar year, provided that Mr. Vicente has the option to receive any portion of his salary and bonus in stock of the Company, in lieu of cash, at a value determined by the Board of Directors in their reasonable discretion and otherwise in accordance with the Employment Agreement. The Employment Agreement provides for change of control termination payments, whereby if Mr. Vicente is terminated, his compensation reduced, or the employer terminates his employment within one year after a change in control, then Mr. Vicente is entitled to a termination benefit in an amount no less than the total of the highest annual salary and bonus amount set forth in the Employment Agreement multiplied by two. The Employment Agreement also provides for termination payments in the absence of a change of control in the event the Company terminates Mr. Vicente without cause, which said payments will be in an amount equal to all compensation paid by the Company to Mr. Vicente for the 24 months preceding the termination, including salary, bonus, equity, stock options and other compensation, to be paid in equal, monthly installments over the 24-month period following termination. About Cord Blood America Based in Las Vegas, Nevada, Cord Blood America, Inc., is primarily a holding company whose subsidiaries include Cord Partners, Inc., CorCell Co. Inc., CorCell Ltd.; CBA Professional Services, Inc. D/B/A BodyCells, Inc.; CBA Properties, Inc.; and Career Channel Inc, D/B/A Rainmakers International. Cord specializes in providing private cord blood stem cell preservation services to families. BodyCells is a developmental stage company and intends to be in the business of collecting, processing and preserving peripheral blood and adipose tissue stem cells allowing individuals to privately preserve their stem cells for potential future use in stem cell therapy. Properties was formed to hold the corporate trademarks and other intellectual property of CBAI. Rain specializes in creating direct response television and radio advertising campaigns, including media placement and commercial production. Cord Blood reported a net loss of $2.97 million on $5.97 million of revenue for the year ended Dec. 31, 2013, as compared with a net loss of $3.49 million on $5.99 million of revenue in 2012. Rose, Snyder & Jacobs, LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has sustained recurring operating losses and has an accumulated deficit at Dec. 31, 2012. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's balance sheet at Sept. 30, 2014, showed $3.95 million in total assets, $4.66 million in total liabilities, and a $708,000 total deficit. DAHL'S FOODS: Associated Wholesale-Led Auction Slated for January ----------------------------------------------------------------- U.S. Bankruptcy Judge Anita L. Shodeen has approved bidding procedures, including the break-up fee, in connection with the auction and sale of Dahl's Foods' assets. The sale hearing will commence on Jan. 30, 2015, at 9:00 a.m. prevailing Central time or at such other hour on that date as the Court will announce. Objections to the sale hearing must be in writing and filed with this court no later than Jan. 12, 2015. The auction, if necessary, will commence no later than Jan. 19, 2015, and will be completed no later than Jan. 21, 2015. As reported in the TCR on Nov. 12, 2014, Dahl's Foods, operator of 10 grocery stores in Des Moines, Iowa, sought bankruptcy protection with a deal to Associated Wholesale Grocers, Inc., absent higher and better offers. After good-faith and arm's-length negotiations, the Debtor executing an Asset Purchase Agreement to sell for $4.8 million all assets, although the purchase price may be reduced by $1 million if the real property associated with the store at 5003 EP True Parkway, West Des Moines, Iowa, is excluded from the sale, and $1.3 million if the real property associated with the store located at 8700 Hickman Road, Clive, Iowa. The Debtors also own the property associated with the store located at 1320 E. Euclid Avenue, Des Moines, Iowa. The other properties associated with the other stores are leased. A copy of the APA is available for free at http://bankrupt.com/misc/Dahls_AWG_Sale_Deal.pdf About Dahl's Foods Dahl's Foods owns and operates 10 full-line grocery stores in and around the Des Moines, Iowa area. Since the 1970s, Dahl's has been employee owned pursuant to an ESOP with 97% of the ownership held by the ESOP. The remaining 3% is owned by certain past and present members of management and other former employees. Individual grocery store square footage ranges from 28,820 to 70,000 and averages 55,188. Dahl's employs over 950 people. For the 52 weeks ended June 28, 2014, Dahl's generated sales of $136.8 million. Foods, Inc. dba Dahl's Foods, Dahl's Food Mart, Inc., and Dahl's Holdings I, LLC, sought bankruptcy protection (Bankr. S.D. Iowa Lead Case No. 14-02689) in Des Moines, Iowa on Nov. 9, 2014, with a deal to sell to Associated Wholesale Grocers Inc. for $4.8 million. The Debtors have tapped Bradshaw, Fowler, Proctor & Fairgrave, P.C., as bankruptcy counsel, Crowe & Dunlevy, P.C., as special reorganization and conflicts counsel, and Foods Partners, LLC as financial advisor and investment banker. DAUGHTERS OF CHARITY: S&P Lowers Rating on 2005 Bonds to 'CCC' -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating to 'CCC' from 'B-' on the California Statewide Communities Development Authority's series 2005A, 2005F, 2005G, and 2005H fixed-rate bonds, issued for the Daughters of Charity Health System (DCHS). The rating outlook is negative. "The rating reflects DCHS' extremely weak financial profile and our opinion that the system's financial commitments appear to be unsustainable in the long term, which could result in a default scenario during the next 12 months," said Standard & Poor's credit analyst Kenneth Gacka. According to S&P's criteria, these scenarios include a near-term liquidity crisis, violation of financial covenants, or consideration of a distressed exchange or redemption. On Oct. 3, 2014, DCHS' board approved the sale of its hospitals to Prime Healthcare Services and Prime Healthcare Foundation (Prime), in a deal that S&P understands would include Prime taking on all of DCHS,' liabilities, including bonds and pension obligations. The deal is currently being reviewed by the Attorney General of California. The negative outlook reflects S&P's opinion that DCHS' rating could be lowered further within the one-year outlook period if DCHS' current plans to sell its hospitals does not materialize or are delayed. S&P believes this could occur because it expects that the system's operations will continue to be pressured, and S&P believes that DCHS' balance sheet offers very limited cushion for further prolonged losses. "DCHS' financial position is very fragile as demonstrated by persistent operating losses and limited unrestricted reserves," added Mr. Gacka. Based on Standard & Poor's calculations, DCHS lost $44 million from operations in the first quarter of fiscal 2015 after posting an operating loss of $186 million in audited fiscal 2014 (both figures exclude contribution revenues). At Sept. 30, 2014, DCHS had $76 million in unrestricted reserves (20 days' cash on hand) and $116 million of funds remaining from the issuance of $125 million of privately placed bonds (series 2014A, B, and C issued and placed in July and August 2014) to provide funds for working capital. These bonds mature on July 10, 2015. DCHS' liquidity needs in the near term can likely be supported given the access to the working capital proceeds and expected receipt of funds related to the California provider fee program in early calendar year 2015. However, given DCHS' current rate of operating losses, S&P believes that longer term liquidity risks are considerable especially given the July 2015 maturity of the 2014 bonds. Given this, it is S&P's opinion that a distressed scenario could likely occur over the next 12 months without successful resolution of DCHS' pending sale of its hospitals. As of Sept. 30, 2014, DCHS had $288 million of long-term debt, $125 million of short-term debt, and $276 million of pension and other liabilities outstanding. DCHS has six hospitals located in Northern California and Southern California. The hospitals staff more than 1,500 beds and are clustered around the San Francisco Bay Area (O'Connor Hospital, St. Louise Regional Hospital, Seton Medical Center, and Seton Medical Center Coastside) and Los Angeles (St. Vincent Medical Center and St. Francis Medical Center). DAVE & BUSTER'S: S&P Retains 'B+' Corporate Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services said its ratings on Dave & Buster's Entertainment Inc. are unchanged and it assigned its 'B+' corporate credit rating to the company's indirect operating subsidiary, Dave & Buster's Inc. The corporate credit rating on Dave & Buster's Inc. is same as its ultimate parent. Financials are issued at Dave & Buster's Entertainment; S&P analyzes the company on a consolidated basis. The ratings on Dave & Buster's reflect its participation in the restaurant and out-of-home entertainment industries, which S&P believes remains intensely competitive. It differentiates itself from other restaurants by offering a large array of game entertainment options, which contribute about half of its revenues. It plans to open about seven to eight new stores annually; store execution risks remain if it pursues new locations with competing entertainment alternatives and unfavorable population demographics. S&P forecasts leverage in the mid-4x area in the next year, as earnings growth will partly mitigate higher lease-adjusted debt associated with new stores. S&P also considers financial sponsor Oak Hill Capital's significant ownership of the company and influence over financial policies, which could impair credit protection measures if debt-funded shareholder initiatives are pursued. RATINGS LIST Dave & Buster's Entertainment Inc. Corporate Credit Rating B+/Stable/-- New Rating Dave & Buster's Inc. Corporate Credit Rating B+/Stable/-- DELIA*S INC: Gift Cards Valid Only Until Jan. 23 ------------------------------------------------ Sara Randazzo, writing for The Wall Street Journal, reported that a representative for the company liquidating Delia*s said the store is accepting gift cards, merchandise credit and loyalty programs only until Jan. 23. According to the Journal, the going- out-of-business sales are expected to run until mid-April. About DELIA*S INC. Launched in 1993, dELiA*s Inc., is a retailer which sells apparel, accessories, footwear, and cosmetics marketed primarily to teenage girls and young women. The dELiA*s brand products are sold through the Company's mall-based retail stores, direct mail catalogs and e-commerce Web sites. On Dec. 7, 2014, dELiA*s and eight of its subsidiaries each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y.). The Debtors have requested that their cases be jointly administered under Case No. 14-23678. As of the bankruptcy filing, dELiA*s owns and operates 92 stores in 29 states. The Debtors have tapped Piper LLP (US) as counsel, Clear Thinking Group LLC, as restructuring advisor, Janney Montgomery Scott LLC, as investment banker, and Prime Clerk LLC as claims agent. As of the Petition Date, the Debtors had $47 million in total assets and $50.5 million in liabilities. The Debtors have sought court approval of a deal for Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources, LLC, to launch going-out-of-business sales. DELL INC: Fitch Raises IDR to 'BB'; Outlook Revised to Positive --------------------------------------------------------------- Fitch Ratings has upgraded the long-term Issuer Default Rating (IDR) of Dell, Inc. (Dell) and its direct wholly-owned subsidiary, Dell International Inc. (Dell International), to 'BB' from 'BB-'. The Rating Outlook is revised to Positive from Stable. KEY RATINGS DRIVERS Dell's ratings and Outlook reflect: -- Dell's use of free cash flow (FCF) to repay debt and Fitch's expectations for core leverage to fall below 3x by the end of fiscal 2015 (Jan. 31, 2015). Fitch estimates Dell will have reduced core debt (excluding debt related to financing activities) by $3.3 billion during fiscal 2015. -- Adequate financial flexibility supported by Dell's significant cash balance, the majority of which is overseas, a largely undrawn $2 billion asset-based revolving credit facility, partially offset by a significant and increased working capital deficit that could weigh on liquidity if revenue materially declines. -- Fitch's belief that Dell remains committed to using FCF primarily for debt reduction, consistent with the company's objective of returning ratings to investment grade. Fitch also believes the company could use a portion of FCF for acquisitions to plug product gaps. Dell has reduced core leverage since the close of the LBO on Oct. 29, 2013 through Oct. 31, 2014 primarily due to sustainable cost- reduction actions and increasing Enterprise Solutions Group demand (driven by PowerEdge Servers) and favorable conditions in the commercial PC market (e.g. expiration of Windows XP support). -- Credit metrics improved as expected, especially core (non- financing), excluding purchase price accounting adjustments (PPA). Fitch estimates Dell's total core leverage will drop below 3x by the end of fiscal 2015 (Jan. 31, 2015) compared with 4.6x at Nov. 1, 2013. -- Significant scale, which provides procurement efficiencies for memory, hard disk drives and other components utilized across the hardware business, specifically PCs, servers and storage. -- Highly diversified revenue base by customer and geography (approximately half outside U.S.) Ratings concerns center on: -- The majority of Dell's revenue remains transactional and derived from Client Solutions predominantly in the commercial market (formerly End User Computing). Commercial PC demand has benefitted from Microsoft's end of support for Windows XP in April 2014 but the commercial XP refresh is nearing completion, potentially moderating near-term commercial PC demand. Consumer PC demand remains weak and Fitch believes meaningful improvement is unlikely, given continued tablet substitution in this space. -- Aggressive industry pricing environment for PCs and servers, particularly for the hyperscale server market. -- Limited financial flexibility to make significant acquisitions to fill product and service gaps that may arise as technologies evolve. RATINGS SENSITIVITIES Positive rating actions could occur if: -- Consistent positive trends for a sustained period in Client Solutions and ESG in conjunction with further debt reduction from FCF results in Fitch's expectations for core leverage sustained below 2.5x; -- Less reliance on secured debt in capital structure. Negative rating actions could occur if: -- Pre-dividend FCF margin remains below 2% for a sustained period; -- Core leverage exceeds 3.5x for a sustained period from significant revenue declines, likely the result of Dell's inability to offset further PC market erosion with stronger results from enterprise, software and services businesses. Fitch upgrades Dell's ratings as: Dell Inc. -- Long-term IDR to 'BB' from BB-; -- Senior unsecured debt to 'BB' from 'B+'. Dell International Inc. -- Long-term IDR to 'BB' from BB-; -- Senior secured first lien ABL facility to 'BBB-' from 'BB+'; -- Senior secured first lien term loans to 'BBB-' from 'BB+'; -- Senior secured notes to 'BBB-' from 'BB+'. The Rating Outlook is revised to Positive from Stable. DOMUM LOCIS: Court Enters Memorandum of Decision on Various Bids ---------------------------------------------------------------- The Bankruptcy Court entered memorandum decision on various motions of Domum Locis, LLC, and creditor Lloyds TSB Bank PLC. The Debtor and Lloyds are parties to an adversary proceeding. The Court finds that, because the material facts necessary to resolve the motions are not in dispute, there is no need to proceed with evidentiary hearings and that further hearings are no longer necessary because the parties have fully briefed the motions. Accordingly, the Court ordered that: 1. The motion to dismiss pursuant to Fed R. Civ. P. 12(b)(6) is granted. 2. The objection to claim pursuant to federal rule of bankruptcy procedure 3007 as pleaded in the complaint is overruled without prejudice. 3. The adversary proceeding is dismissed with prejudice, except the objection to claim is dismissed without prejudice. 4. The first motion for relief from the automatic stay in the real property; and the second stay relief motion are both granted. 5. It is further ordered that any non-bankruptcy litigation in the actions before the Los Angeles and Riverside Superior Courts with respect to the properties (as defined in the memorandum decision) may proceed as the properties are not property of the Debtor's estate and accordingly, the automatic stay does not apply. 6. The Debtor's motion to use the cash collateral of prepetition secured parties is denied because the properties are not assets of the Debtor's estate. 7. The motion to approve residential lease agreement is denied because the properties are not assets of the Debtor's estate. 8. The motion for protective order limiting the scope of discovery is deemed moot because the proceedings to which the discovery was sought is resolved by the memorandum decision and the order. 9. The Court directs the Clerk of Court to enter the order both in the main bankruptcy case and in the adversary proceeding. 10. The further hearings on the matters are vacated. Lloyds is represented by: Martha S. Sullivan, Esq. Gabriel Colwell, Esq. Kristin E. Richner, Esq. Emily L. Wallerstein, Esq. SQUIRE PATTON BOGGS (US) LLP 555 South Flower Street, 31st Floor Los Angeles, CA 90071 Tel: +1 213 624 2500 Fax: +1 213 623 4581 E-mail: martha.sullivan@squirepb.com gabriel.colwell@squirepb.com kristin.richner@squirepb.com emily.wallerstein@squirepb.com About Domum Locis Domum Locis LLC filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 14-23301) on July 11, 2014. Michael J. Kilroy signed the petition as managing member. The Debtor estimated assets and liabilities of at least $10 million. Cypress LLP serves as the Debtor's counsel. Judge Robert N. Kwan presides over the case. The Debtor selected Cypress LLP as general bankruptcy counsel. The Debtor reported $14,571,293 in total assets and $11,043,877 in total liabilities. DUPONT PERFORMANCE: Bank Debt Trades at 3% Off ---------------------------------------------- Participations in a syndicated loan under which DuPont Performance Coatings is a borrower traded in the secondary market at 97.25 cents-on-the-dollar during the week ended Friday, December 27, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 1.54 percentage points from the previous week, The Journal relates. DuPont Performance Coatings pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on February 1, 2020, and carries Moody's B1 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 212 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. EDGENET INC: Amended Liquidation Plan Declared Effective -------------------------------------------------------- Edgenet Inc., nka EI Windown Inc., and EHC Holding Wind Down Corp. notified the U.S. Bankruptcy Court for the District of Delaware that their modified amended Chapter 11 plan of liquidation became effective as of Dec. 15, 2014. All final requests for payment of professional claims incurred in connection with services rendered prior to and including the effective date, must be filed with the Court and served on the post effective date Debtors no later than Jan. 29, 2015, which is the date that is 45 days after the effective date. Additionally, any claims for administrative claims, not previously filed, must be filed with the clerk of the Bankruptcy Court 824 Market Street, Wilmington, DE 19801 on or before January 14, 2015 which is the first business day 30 days after the effective date and served upon the plan administrator c/o her counsel: KLEHR HARRISON HARVEY BRANZBURG LLP Attn: Domenic Pacitti, Esq. Raymond H. Lemisch, Esq. 919 Market Street, Suite 1000 Wilmington, DE 19801 Email: dpacitti@klehr.com rlemisch@klehr.com About Edgenet Inc. Edgenet, Inc., and Edgenet Holding Corp. are providers of cloud- based content and applications that enable companies to sell more products and services with greater ease across multiple channels and devices. Edgenet has three business locations: Waukesha, WI, Brentwood, TN, and its main office in Atlanta, GA. Edgenet Inc. and Edgenet Holding filed for Chapter 11 bankruptcy protection in Delaware (Lead Case No. 14-10066) on Jan. 14, 2014. Edgenet Inc. estimated assets of at least $10 million and liabilities of $100 million to $500 million. Raymond Howard Lemisch, Esq., at Klehr Harrison Harvey Branzburg LLP, in Wilmington, Delaware, serves as counsel to the Debtors; Glass Ratner Advisory & Capital Group LLC is the financial advisor; JMP Securities, LLC, is the investment banker, and Phase Eleven Consultants, LLC, is the claims and noticing agent. The U.S. Trustee did not form an official unsecured creditors committee as no sufficient interest has been generated from creditors. Fred Marxer, Timothy Choate and Davis Carr, individuals and holders of a segment of the promissory notes issued in 2004 that have been referred to by Edgenet, Inc., et al., requested that the Court issue an order appointing an official committee of Seller Noteholders, or in the alternative, an official committee of unsecured creditors, with members appointed from the Seller Noteholders who agree to waive any continued security interest arising from the Seller Notes. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed on March 13, 2014, five noteholders to serve on the Official Committee of Note Holders. In May, Bankruptcy Judge Brendan L. Shannon denied Edgenet Inc., et al.'s motion to disband the Noteholders Committee. The Noteholders Committee has retained Morris James LLP's Jeffrey R. Waxman, Esq.; and Cooley LLP's Cathey Hershcopf, Esq., and Jeffrey L. Cohen, Esq., as co-counsel to the Committee. An auction of the Debtors' assets was held on June 6, 2014, and EdgeAQ, L.L.C., was declared the successful bidder. The Bankruptcy Court approved the sale on June 12, and the sale closed on June 16. Edgenet Inc. changed its name to El Wind Down, Inc., and Edgenet Holding Corporation to EHC Holding Wind Down Corp. EXIDE TECHNOLOGIES: Sued Over Alleged Health Problems ----------------------------------------------------- Sara Randazzo, writing for Daily Bankruptcy Review, reported that years of contamination at a Southern California lead-acid battery- recycling plant caused severe health problems for local residents, including cancer and kidney failure, according to a new lawsuit. According to the report, the suit, brought against directors and officers of Exide Technologies, was filed in Los Angeles Superior Court. About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. Exide first sought Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002 and exited bankruptcy two years after. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 13-11482) on June 10, 2013. Exide disclosed $1.89 billion in assets and $1.14 billion in liabilities as of March 31, 2013. Exide's international operations were not included in the filing and will continue their business operations without supervision from the U.S. courts. For the new case, Exide has tapped Anthony W. Clark, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang Ziehl & Jones LLP as counsel; Alvarez & Marsal as financial advisor; Sitrick and Company Inc. as public relations consultant and GCG as claims agent. Schnader Harrison Segal & Lewis LLP was tapped as special counsel. The Official Committee of Unsecured Creditors is represented by Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as co-counsel. Zolfo Cooper, LLC serves as its bankruptcy consultants and financial advisors. Geosyntec Consultants was tapped as environmental consultants to the Committee. Robert J. Keach of the law firm Bernstein Shur as fee examiner has been appointed as fee examiner. He has hired his own firm as counsel. FALCON STEEL: Equity Holders' Bid for Official Committee Denied --------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas entered an order denying, without prejudice, a bid by equity holders for an official equity committee in the Chapter 11 case of Falcon Steel Company. The order does not prejudice any party from filing a motion to direct the appointment of employee noteholders to the Official Committee of Unsecured Creditors or the United States Trustee from appointing the same, the Court held in its Dec. 18 ruling. A group of equity holders represented by Dallas, Texas-based law firm Munsch Hardt Kopf & Harr, P.C. that owns shares in the steel maker complained of not being "adequately" represented, and asked U.S. Bankruptcy Judge D. Michael Lynn to approve the formation of an equity committee. As reported in the Dec. 5, 2014 edition of the Troubled Company Reporter, the Debtors and the U.S. Trustee opposed the proposal to have an official committee of equity holders in the Debtors' Chapter 11 cases. They contended that equity is more than adequately represented, this case is not complex enough to warrant an equity committee, and the substantial costs of an additional committee far outweigh any potential benefits, especially given equity's substantial representation on the Board. The Official Committee of Unsecured Creditors joined in the objections to the Motion. "FSC is a small, non-public, closely held, employee owned company with a total of 24 shareholders. FSC's board of directors is comprised of three directors. Two directors are the two largest employee shareholders: (i) Larry Minor -- FSC's largest shareholder with 27.6% of the voting shares; and (ii) David Dunlap -- FSC's third largest shareholder with 9.1%.8 Given their stakes in Falcon as major shareholders and employees, their interests are fully aligned with the other 22 shareholders. And given their significant equity stakes, any decision that they might make that hurts shareholders would hurt them significantly more than most of the other shareholders," the Committee said in its objection. The Creditors Committee's attorneys can be reached at: Jonathan L. Howell, Esq. Eric M. Van Horn, Esq. MCCATHERN PLLC Regency Plaza 3710 Rawlins Street, Ste. 1600 Dallas, Texas 75219 Telephone: (214) 273-6409 Facsimile: (214) 723-5966 E-mail: jhowell@mccathernlaw.com ericvanhorn@mccathernlaw.com About Falcon Steel Falcon Steel Company and New Falcon Steel, LLC, sought Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division (Case Nos. 14-42585 and 14-42586) on June 29, 2014. Falcon Steel claims to be the only American-owned company that builds steel lattice towers for high electrical transmission lines. Falcon Steel was formed in 1963 and has operated continuously since that time as a manufacturer engaged in fabricating and galvanizing structural steel for customers in the United States. New Falcon, a subsidiary, suspended operations in June 2013 and is being held for sale. Falcon has three manufacturing plants in the DFW area in Texas, with one facility in Haltom City, another in Euless, and the third facility in Kaufman, Texas. The company's corporate headquarters is located at its Haltom City plant. It currently employs approximately 255 employees. Bankruptcy Judge D. Michael Lynn, in an amended order, directed the joint administration of the case of Falcon Steel Company and New Falcon Steel, LLC (Lead Case No. 14-42585). Falcon Steel estimated assets and debt of $10 million to $50 million. The Debtors have tapped Forshey & Prostok, LLP, as general counsel and Decker, Jones, McMackin, McClane, Hall & Bates, P.C. as special corporate counsel. Ryan LLC acts as property tax consultant. The Debtors also tapped Western Operations LLC as financial consultant, and Rylander, Clay & Opitz, LLP, as accountants. The U.S. Trustee has appointed a five-member panel to serve as the official unsecured creditors committee in the Debtors' cases. The Committee has tapped McCathern, PLLC, as counsel. FLC HOLDING: Bankruptcy Court Approves Sale of PNA Bank to Royal ---------------------------------------------------------------- Royal Financial, Inc., on Dec. 23 disclosed that the U.S. Bankruptcy Court for the Northern Division of Illinois, Eastern Division, approved a Sale Order for the sale of all of the issued and outstanding shares of common stock of PNA Bank to Royal for a cash purchase price of $1.2 million. As previously announced on November 14, 2014, Royal entered into an Asset Purchase Agreement with FLC Holding Company, an Illinois corporation and a registered savings and loan holding company, to acquire FLC's wholly-owned subsidiary, PNA Bank, a federal savings bank with banking offices in Chicago and Niles, Illinois. The acquisition remains subject to the terms and conditions set forth in the Asset Purchase Agreement and the provisions of Section 363 of the Bankruptcy Code, which included the receipt of approval of the Bankruptcy Court. Under the provisions of the Sale Order, Royal purchased the acquired assets free and clear of all liens, claims and encumbrances and will assume no liability of FLC. Royal next intends to file the necessary bank merger applications with state and federal banking regulators seeking their approval of the proposed acquisition. Royal expects the acquisition to close in the second quarter of calendar 2015 following the approval of bank regulators. As part of the transaction, Royal intends to merge PNA Bank with and into Royal's wholly-owned subsidiary, Royal Savings Bank. On a combined basis with PNA Bank, Royal will have approximately $232 million in assets, $156 million in loans and $178 million in deposits and serve the combined market area through a total of five office locations. "We are pleased with the Court's decision today, which removes the cloud of FLC Holding's bankruptcy from PNA Bank and enables us to move forward with applications for regulatory approval," said Jim Fitch, Chairman of Royal Financial. "This transaction advances execution of our strategic plan to increase value for our shareholders. We are excited by this opportunity to serve PNA Bank's customers and to welcome the staff at PNA Bank to our company." Royal was advised in the transaction by RP Financial, LC. as financial advisor, and Vedder Price P.C. as legal counsel. FLC was advised by Adelman & Gettleman, Ltd, as legal counsel. A copy of the Sale Order entered by the Bankruptcy Court along with the original Asset Purchase Agreement is available on Royal's website, under "Royal Financial", at www.royal-bank.us from the OTC Markets' website at www.otcmarkets.com under the ticker RYFL, or from the Clerk of the U.S. Bankruptcy Court. About Royal Savings Bank Royal Savings Bank -- http://www.royal-bank.us-- offers a range of checking and savings products and a full line of home and commercial lending solutions. Royal Savings Bank has been operating continuously in the south and southeast communities of Chicago since 1887, and currently has three branches in Chicago, with lending centers in Homewood and St. Charles, Illinois. About FLC Holding FLC Holding Company filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 13-24125) on June 11, 2013. Chad H. Gettleman, Esq., at Adelman & Gettleman, Ltd., in Chicago, serves as counsel. The Debtor estimated assets of $500,001 to $1 million and debts of $1 million to $10 million. FLEXPOINT SENSOR: Lacks Revenue to Fund Operations -------------------------------------------------- Flexpoint Sensor Systems, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $232,000 on $124,000 of revenue for the three months ended Sept. 30, 2014, compared with a net loss of $188,000 on $33,400 of total revenue for the same period in 2013. The balance sheet at Sept. 30, 2014, showed $5.35 million in total assets, $1.52 million in total liabilities, and a stockholders' equity of $3.84 million. Flexpoint is unable to fund day-to-day operations from revenues and the lack of revenues for continued growth may cause the Company to delay its business development. For the nine months ending Sept. 30, 2014, the Company had negative cash flows from operating activities of $360,225. Flexpoint will require additional financing to fund short-term cash needs and it may be required to rely on debt financing, loans from related parties, and private placements of common stock for that additional funding. A copy of the Form 10-Q is available at: http://is.gd/jFJYk7 Flexpoint Sensor Systems, Inc. has developed and patented the Bend Sensor technology. The Bend Sensor is a technological breakthrough that offers a superior solution for applications that require accurate measurement and sensing of deflection, acceleration and range of motion. Global market opportunities include automotive, medical, industrial controls, government, health and fitness, security, computer, aerospace, transportation and consumer products. FOREX INTERNATIONAL: Working Capital Insufficient for Operations ---------------------------------------------------------------- Forex International Trading Corp. filed its quarterly report on Form 10-Q, reporting a net loss of $203,000 on $30,000 of total revenue for the three months ended Sept. 30, 2014, compared with a net loss of $40,000 on $30,000 of total revenue for the same period in 2013. The Company's balance sheet at Sept. 30, 2014, showed $1.09 million in total assets, $999,700 in total liabilities, and a stockholders' equity of $86,000. As of Sept. 30, 2014, the Company had cash and cash equivalents of approximately $0.4 million and a working capital deficit of $32.0 million. Forex International has generated revenues in the nine months ended Sept. 30, 2014, but has had recurring losses from operations since inception, and has a negative working capital as of Sept. 30, 2014. As of Sept. 30, 2014, the Company has an accumulated deficit of $2.35 million. Based on the Company's operating plan, existing working capital at Sept. 30, 2014, was not sufficient to meet the cash requirements to fund planned operations through Dec. 31, 2014, without additional sources of cash. This raises 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 at: http://is.gd/eSDH1y 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. FORTESCUE METALS: Bank Debt Trades at 9% Off -------------------------------------------- Participations in a syndicated loan under which Fortescue Metals Group Ltd is a borrower traded in the secondary market at 90.88 cents-on-the-dollar during the week ended Friday, December 27, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 5.19 percentage points from the previous week, The Journal relates. Fortescue Metals pays 325 basis points above LIBOR to borrow under the facility. The bank loan matures on June 13, 2019, and carries Moody's Baa3 rating and Standard & Poor's BBB rating. The loan is one of the biggest gainers and losers among 212 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. FPL ENERGY: S&P Affirms 'BB' Rating on $365MM Sr. Sec. Notes ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB' issue-level rating on project finance entity FPL Energy National Wind LLC's $365 million senior secured notes due 2024. At the same time, S&P revised the outlook to negative from stable. The '1' recovery rating on the facility remains unchanged. A '1' recovery rating indicates S&P's expectation of substantial recovery (90% to 100%) if a default occurs. S&P's recovery expectations are in the higher end of the 90% to 100% range. "Our rating action stems from our assessment of the negative effect on debt service coverages from unforeseen structural repairs that the project has identified at one of the project sites," said Standard & Poor's credit analyst Trevor D'Olier-Lees. Based on S&P's discussions with management, there is a range of costs up to about $7.5 million. Currently, S&P has increased its base case cost assumptions by about $2.8 million over 2015 and 2016 and such repairs are expected to hurt project availability and financial performance over the next two years. As management completes assessing repair costs and determines when it will incur them, S&P expects to have more definitive cost numbers in the first half of 2015. Including S&P's repair cost estimates, under its base case, excluding 2015, S&P expects a minimum debt service coverage ratio (DSCR) of 1.22x and average DSCR of 1.57x through debt maturity. S&P chose to exclude the 2015 ratios from its assessment because it believes the additional costs are an exceptional event. Although this minimum is low for the current rating, the project shows resiliency in our downside scenario, which supports the current 'BB' rating. National Wind is a portfolio of eight wind power projects totaling 389.6 megawatts that operate at seven U.S. locations, with four wind regimes. From the second half of 2014, National Wind began repaying debt almost entirely from project cash flows generated by converting wind energy into electricity and selling it to off- takers under long-term power purchase agreements, as most of its production tax credit benefits have ended. The negative outlook on National Wind reflects S&P's view of the pressure and uncertainly on cash available for debt service due to the unexpected additional repair costs at one of the sites. S&P expects National Wind to achieve a DSCR of 1.12x in 2015 and 1.22x in 2016. GBG RANCH: Files Schedules of Assets and Liabilities ---------------------------------------------------- GBG Ranch, Ltd., filed with the U.S. Bankruptcy Court for the Southern District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $35,400,000 B. Personal Property $18,711,258 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $7,588 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-Priority Claims $4,393,905 ----------- ----------- Total $54,111,258 $4,401,493 A copy of the schedules is available for free at http://bankrupt.com/misc/GBGRanch_159_SAL.pdf About GBG Ranch GBG Ranch, LTD, a Texas Limited Partnership, sought Chapter 11 protection (Bankr. S.D. Tex. Case No. 14-50155) in Laredo, Texas on July 8, 2014, without stating a reason. The company is represented by the Law Office of Carl M. Barto. Leslie M. Luttrell and the Luttrell + Villareal Law Group serve as special counsel. GLOBALSTAR INC: Thermo Investments Buys 12.3-Mil. Common Shares --------------------------------------------------------------- Globalstar, Inc., disclosed that on Dec. 19, 2014, Thermo Investments II, LLC, acquired 12,371,136 shares of Globalstar voting common stock from Thermo Funding II, LLC, at $2.82 per share in a privately negotiated transaction. After the transaction, TF and its affiliates retain approximately 770,000,000 aggregate voting and nonvoting shares of Globalstar on a fully diluted basis. James Lynch and the James Monroe III Grantor Trust are the members of TI and TF, respectively. The transaction by TF was solely for tax planning purposes relating to taxable gains recognized by TF on the acquisition of tw telecom inc. by Level 3 Communications, Inc. The Shares originally were acquired by an affiliate of TF in 2006 and 2007 pursuant to a stock purchase agreement whereby the affiliate purchased $200 million, or 12,371,136 shares, of Globalstar voting common stock at $16.17 per share that it subsequently contributed to TF. TF's loss on the sale of the Shares offsets a portion of the taxable gain realized by TF and its affiliates from the acquisition of TWTC by LVLT. The investment in TWTC originated from a 2006 sale to TWTC of a majority ownership by a TF affiliate of Xspedius Communications, a long-haul and metro fiber telecommunications network provider. The Shares acquired by TI currently are restricted securities under the federal securities laws and their resale will be registered pursuant to a Form S-3 registration statement to be filed with no expenses paid by Globalstar. Neither TF nor TI have plans to dispose of their respective shares. The transaction does not impact the Company's status as a controlled company under NYSE MKT rules. About Globalstar, Inc. Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to commercial and recreational users in more than 120 countries around the world. The company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Globalstar customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications. Globalstar reported a net loss of $591.11 million in 2013, a net loss of $112.19 million in 2012 and a net loss of $54.92 million in 2011. As of Sept. 30, 2014, the Company had $1.31 billion in total assets, $1.33 billion in total liabilities and a $14.53 million total stockholders' deficit. GLYECO INC: Board Okays Equity Incentive Program ------------------------------------------------ The Board of Directors of GlyEco, Inc., approved an equity incentive program, whereby the Company's employees may elect to receive equity in lieu of cash for all or part of their salary compensation, according to a regulatory filing with the U.S. Securities and Exchange Commission. Pursuant to the Equity Incentive Program, each of the Company's employees may choose to forego all or part of their salary compensation in exchange for stock options or shares of restricted stock. For each dollar of compensation foregone, each employee is eligible to receive either four stock options or three and one- third shares of restricted common stock. The Company will issue all stock options and restricted stock due to employees pursuant to the Equity Incentive Program on the last day of each calendar month. Stock options issued pursuant to the program will vest immediately upon issuance and have an exercise price of $0.30. Those stock options will have a term of ten years and be otherwise subject to the terms of the Company's 2012 Equity Incentive Plan, including cashless exercise as an available form of payment. Restricted stock issued pursuant to the program will also vest immediately and have a stock basis of $0.30 per share. The Company's Chief Executive Officer, John Lorenz, and Chief Financial Officer, Alicia Williams Young, have both decided to participate in the Equity Incentive Program. Mr. Lorenz has decided to forego $9,000 per month of his cash compensation, therefore electing to receive 36,000 stock options per month under the program, while Ms. Williams Young has decided to forego $8,000 per month of her cash compensation, therefore electing to receive 32,000 stock options per month under the program. The Equity Incentive Program will remain in effect until March 31, 2015, at which time it will be reevaluated. Upon the conclusion of the program, the Company will calculate its profitability for the quarter using an adjusted EBITDA calculation, and if the Company has achieved profitable operations, it will proportionally distribute salary compensation back to all employees participating in the program. About GlyEco, Inc. Phoenix, Ariz.-based GlyEco, Inc., is a green chemistry company formed to roll-out its proprietary and patent pending glycol recycling technology that transforms waste glycols, a hazardous material, into profitable green products. GlyeCo reported a net loss of $4.01 million in 2013, a net loss of $1.86 million in 2012, and a net loss of $592,171 in 2011. The Company's balance sheet at Sept. 30, 2014, showed $15.52 million in total assets, $2.49 million in total liabilities and $13.03 million in total stockholders' equity. Semple, Marchal & Cooper, LLP, in Phoenix, Arizona, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has yet to achieve profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable profitable operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. GOPICNIC BRANDS: To Sell Packaged Meal Business at Auction ---------------------------------------------------------- Jacqueline Palank, writing for Daily Bankruptcy Review, reported that GoPicnic Brands Inc., whose packaged meals are sold in big- box retailers like Costco and Target, is heading to the auction block. According to the report, Judge Jacqueline Cox of the U.S. Bankruptcy Court in Chicago authorized the company to sell itself to the highest bidder at a Jan. 27 auction, court papers show. Headquartered in Chicago, Illinois, GoPicnic Brands, Inc., produces boxed meals and snack. Its products are available at more than 15,000 retail locations worldwide. GoPicnic Brands, Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 14-43382) on Dec. 3, 2014, citing lack of growth and a dispute between the company's board and its former director. The petition was signed by Bret Lorenc, chief financial officer. GoPicnic Brands estimated its assets at between $1 million and $10 million, and its liabilities between $1 million and $10 million. GT ADVANCED: Portion of Furnace Sale Proceeds to Go to Apple ------------------------------------------------------------ GT Advanced Technologies Inc., following the Bankruptcy Court's approval of its settlement agreement with Apple Inc., is now pursuing ASF furnace opportunities for sapphire cover glass applications across the broader smartphone market as well as ongoing opportunities in the LED and Industrial markets. Under the Settlement Agreement, all previous exclusivity restrictions have been lifted and GT retains control of its intellectual property as well as ownership of its production, ancillary and inventory assets located in Mesa. GT has been provided with a rent-free lease of the Mesa facility through the end of 2015 and a subsequent rent-free lease of a portion of the facility for storage through 2019, subject to early termination by Apple on 6-months prior notice, which can be issued no sooner than July 1, 2016. Apple has been provided with a mechanism for recovering its $439 million pre-payment made to GT whereby Apple will receive a portion of ASF sales for each furnace that GT sells. "We are very pleased that the court has approved our Settlement Agreement with Apple, which we believe is in the best interest of all parties," said Tom Gutierrez, GT's chief executive officer and president. "We are focused on executing on our business plan which includes marketing and selling our market-leading ASF sapphire growth technology. Based on the demonstrated field performance of the ASF, GT's technology roadmap and our unmatched sapphire growth expertise, we are confident that GT's ASF platform offers sapphire manufacturers the most cost competitive, scalable and versatile solution for sapphire growth for several applications including consumer electronics. Since we have re- entered the market, interest in our sapphire technology has continued to grow." Mr. Gutierrez concluded, "Since our Chapter 11 filing, we have taken several important steps to significantly reduce our cash operating expenses and protect our cash position, which was $96.7 million as of December 19th, while at the same time we have continued to invest in our market leading technologies. We are making good progress in our efforts to secure debtor-in-possession financing which we believe will provide GT with sufficient liquidity to continue to implement our business plan." Vikas Shukla at Valuewalk.com relates that Luc Despins, the attorney for GT, had previously told the Bankruptcy Court that each furnace was expected to fetch about $500,000. The report says that GT, Apple, and some creditors negotiated other provisions, and estimated that the first 500 furnaces would fetch $169,000 per unit. The report adds that the next 500 would generate $224,000 each. About GT Advanced Technologies Headquartered in Merrimack, New Hampshire, GT Advanced Technologies Inc. -- http://www.gtat.com/-- produces materials and equipment for the electronics industry. On Nov. 4, 2013, GTAT announced a multiyear supply deal with Apple Inc. to produce sapphire glass material for use in consumer electronics products. Under the deal, Apple would provide GTAT with a prepayment of approximately $578 million paid in four installments and, starting in 2015, GTAT would reimburse Apple for the prepayment over a five-year period. GT is a publicly held corporation whose stock was traded on NASDAQ under the ticker symbol "GTAT." GTAT was de-listed from the NASDAQ stock exchange in October 2014. As of June 28, 2014, the GTAT Group's unaudited and consolidated financial statements reflected assets totaling $1.5 billion and liabilities totaling $1.3 billion. As of Sept. 29, 2014, GTAT had $85 million in cash, $84 million of which is unencumbered. On Oct. 6, 2014, GT Advanced Technologies and eight affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D.N.H. Lead Case No. 14- 11916). GT says that it has sought bankruptcy protection due to a severe liquidity crisis brought about by its issues with Apple. The Debtors have tapped Nixon Peabody LLP and Paul Hastings LLP as attorneys and Kurtzman Carson Consultants LLC as claims and noticing agent. The U.S. Trustee has named seven members to the Official Committee of Unsecured Creditors. The Committee' professionals are Kelley Drye as its bankruptcy counsel; Devine, Millimet & Branch, Professional Association as local counsel; EisnerAmper LLP as financial advisors; and Houlihan Lokey Capital, Inc. as investment banker. GTAT has reached a settlement with Apple. The settlement gives Apple an approved claim for $439 million secured by more than 2,000 sapphire furnaces that GT Advanced owns and has four years to sell, with proceeds going to Apple. In addition, Apple gets royalty-free, non-exclusive licenses for GTAT's technology. GT ADVANCED: Wins Approval of Apple Settlement ---------------------------------------------- GT Advanced Technologies Inc. on Dec. 23 disclosed that following the Bankruptcy Court's recent approval of its Settlement Agreement with Apple, GT is now pursuing ASF(R) furnace opportunities for sapphire cover glass applications across the broader smartphone market as well as ongoing opportunities in the LED and Industrial markets. Under the Settlement Agreement, all previous exclusivity restrictions have been lifted and GT retains control of its intellectual property as well as ownership of its production, ancillary and inventory assets located in Mesa. GT has been provided with a rent-free lease of the Mesa facility through the end of 2015 and a subsequent rent-free lease of a portion of the facility for storage through 2019, subject to early termination by Apple on 6 months' prior notice, which can be issued no sooner than July 1, 2016. Apple has been provided with a mechanism for recovering its $439 million pre-payment made to GT whereby Apple will receive a portion of ASF sales for each furnace that GT sells. "We are very pleased that the court has approved our Settlement Agreement with Apple, which we believe is in the best interest of all parties," said Tom Gutierrez, GT's chief executive officer and president. "We are focused on executing on our business plan which includes marketing and selling our market-leading ASF sapphire growth technology. Based on the demonstrated field performance of the ASF, GT's technology roadmap and our unmatched sapphire growth expertise, we are confident that GT's ASF platform offers sapphire manufacturers the most cost competitive, scalable and versatile solution for sapphire growth for several applications including consumer electronics. Since we have re-entered the market, interest in our sapphire technology has continued to grow." Mr. Gutierrez concluded, "Since our chapter 11 filing, we have taken several important steps to significantly reduce our cash operating expenses and protect our cash position, which was $96.7 million as of December 19th, while at the same time we have continued to invest in our market leading technologies. We are making good progress in our efforts to secure debtor-in-possession financing which we believe will provide GT with sufficient liquidity to continue to implement our business plan." About GT Advanced Technologies Headquartered in Merrimack, New Hampshire, GT Advanced Technologies Inc. -- http://www.gtat.com/-- produces materials and equipment for the electronics industry. On Nov. 4, 2013, GTAT announced a multiyear supply deal with Apple Inc. to produce sapphire glass material for use in consumer electronics products. Under the deal, Apple would provide GTAT with a prepayment of approximately $578 million paid in four installments and, starting in 2015, GTAT would reimburse Apple for the prepayment over a five-year period. GT is a publicly held corporation whose stock was traded on NASDAQ under the ticker symbol "GTAT." GTAT was de-listed from the NASDAQ stock exchange in October 2014. As of June 28, 2014, the GTAT Group's unaudited and consolidated financial statements reflected assets totaling $1.5 billion and liabilities totaling $1.3 billion. As of Sept. 29, 2014, GTAT had $85 million in cash, $84 million of which is unencumbered. On Oct. 6, 2014, GT Advanced Technologies and eight affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D.N.H. Lead Case No. 14- 11916). GT says that it has sought bankruptcy protection due to a severe liquidity crisis brought about by its issues with Apple. The Debtors have tapped Nixon Peabody LLP and Paul Hastings LLP as attorneys and Kurtzman Carson Consultants LLC as claims and noticing agent. The U.S. Trustee has named seven members to the Official Committee of Unsecured Creditors. The Committee' professionals are Kelley Drye as its bankruptcy counsel; Devine, Millimet & Branch, Professional Association as local counsel; EisnerAmper LLP as financial advisors; and Houlihan Lokey Capital, Inc. as investment banker. GTAT has reached a settlement with Apple. The settlement gives Apple an approved claim for $439 million secured by more than 2,000 sapphire furnaces that GT Advanced owns and has four years to sell, with proceeds going to Apple. In addition, Apple gets royalty-free, non-exclusive licenses for GTAT's technology. HAMILTON SUNDSTRAND: Bank Debt Trades at 8% Off ----------------------------------------------- Participations in a syndicated loan under which Hamilton Sundstrand Industrial is a borrower traded in the secondary market at 92.52 cents-on-the-dollar during the week ended Friday, December 27, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 2.19 percentage points from the previous week, The Journal relates. Hamilton Sundstrand Industrial pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on Dec. 10, 2019, and carries Moody's B1 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 212 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. HEALTHSOUTH CORP: Moody's Affirms Ba3 Corp. Family Rating --------------------------------------------------------- Moody's Investors Service affirmed HealthSouth Corporation's Ba3 Corporate Family Rating and Ba3-PD Probability of Default Rating. Moody's also assigned a Baa3 rating to HealthSouth's incremental $300 million senior secured term loan. Proceeds from the new term loan, along with a draw on the company's revolver will be used to fund the $750 million acquisition of EHHI Holdings Inc., which owns Encompass Home Health and Hospice. The acquisition is expected to close by the end of 2014. Concurrently, Moody's affirmed the ratings on HealthSouth's existing senior secured revolver and term loan at Baa3 and lowered the rating on the company's senior unsecured notes to B1 from Ba3. The downgrade of the senior note rating reflects the significant increase in the amount of senior secured debt in the capital structure in the form of the incremental term loan and the considerable draw on the revolver. Finally, Moody's also affirmed HealthSouth's Speculative Grade Liquidity Rating at SGL-1. The rating outlook remains stable. The affirmation of HealthSouth's Ba3 CFR reflects Moody's expectation that while financial leverage will increase as a result of the acquisition, debt to EBITDA will quickly be reduced to below 3.5 times through EBITDA growth and the repayment of debt with available cash flow. Moody's also understands that the incremental term loan will have a first out provision if the company raises additional unsecured debt. All else being equal, the exercise of this provision through the issuance of additional unsecured notes, the repayment of the incremental term loan and a reduction in the amount of revolver outstanding could result in an upgrade of the senior unsecured rating. Ratings affirmed/LGD assessments revised: Corporate Family Rating, Ba3 Probability of Default Rating, Ba3-PD Senior secured revolver due 2019 to Baa3 (LGD 2) from Baa3 (LGD 1) Senior secured term loan due 2019 to Baa3 (LGD 2) from Baa3 (LGD 1) Speculative Grade Liquidity Rating at SGL-1 Ratings assigned: New senior secured term loan due 2019 at Baa3 (LGD 2) Ratings lowered: Senior unsecured notes to B1 (LGD 4) from Ba3 (LGD 4) The rating outlook is stable. Ratings Rationale HealthSouth's Ba3 Corporate Family Rating reflects the company's moderate leverage and strong interest coverage. Moody's expects that healthy cash flow will allow the company to reduce leverage following the acquisition of Encompass and continue to invest in growing its inpatient rehabilitation business. Moody's also acknowledges that HealthSouth's considerable scale in the inpatient rehabilitation sector and geographic diversification should allow the company to adjust to or mitigate payment reductions more easily than many other inpatient rehabilitation providers. Further, while the acquisition of Encompass will not reduce HealthSouth's reliance on the Medicare program for a significant portion of revenue, it will diversify the company's offerings across the post-acute continuum of care by adding home health and hospice services. The ratings could be upgraded if HealthSouth can sustain debt to EBITDA below 3.0 times and EBITA to interest above 3.5 times. Also, the company would need to remain disciplined in regards to shareholder returns and their impact on credit metrics. Finally, Moody's would need to gain comfort around the company's high exposure to Medicare and the potential for negative reimbursement changes prior to a ratings upgrade. If Moody's expects debt to EBITDA to increase and be sustained above 4.0 times, either through unforeseen adverse developments in Medicare reimbursement, a significant debt financed acquisition, an increased appetite for debt financed shareholder initiatives, or deterioration in operating performance, the ratings could be downgraded. The principal methodology used in these ratings was Global Healthcare Service Providers 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, HealthSouth Corporation (HealthSouth) is the largest operator of inpatient rehabilitation facilities (IRFs). The company recognized over $2.3 billion in revenue for the twelve months ended September 30, 2014. HUNTINGTON BEACH SCHOOL DISTRICT: On Fin'l Brink Due to Asbestos ---------------------------------------------------------------- Nicole Knight Shine, writing for Los Angeles Times, reported that the Huntington Beach School District, a small school district in Orange County, California, is reeling under a multimillion-dollar budget shortfall following the closure of campuses and bus students in the wake of an asbestos scare. According to the report, Wendy Benkert, assistant superintendent for business services at the Orange County Department of Education, told trustees for Ocean View School District, that the district has run through $2.9 million of $4.3 million in general fund emergency reserves and faces an additional $9.2 million in costs related to asbestos removal and a modernization project at 11 schools. Should the Huntington Beach school district fail to close its $7.8-million shortfall, it might need emergency funding or could be taken over by the state, Benkert warned, the report further related. INDEPENCE TAX II: Reports $128K Net Loss in Q2 Ending Sept. 30 -------------------------------------------------------------- Independence Tax Credit Plus L.P. II filed its quarterly report on Form 10-Q, reporting a net loss of $128,000 on $216,000 of total revenue for the three months ended Sept. 30, 2014, compared with a net loss of $131,000 on $209,700 of total revenue for the same period in 2013. The Company's balance sheet at Sept. 30, 2014, showed $2.7 million in total assets, $16.7 million in total liabilities, and a stockholders' deficit of $14 million. At Sept. 30, 2014, the Partnership's liabilities exceeded assets by $14.0 million and for the six months ended Sept. 30, 2014, the Partnership had net loss of $247,000. These factors raise substantial doubt about the Partnership's 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/B1sc8Z About Independence Tax Credit Plus L.P. II Based in New York, Independence Tax Credit Plus L.P. II was organized on Feb. 11, 1992, and commenced its public offering on Jan. 19, 1993. The general partner of the Partnership is Related Independence Associates L.P., a Delaware limited partnership. The general partner of Related Independence Associates L.P. is Related Independence Associates Inc., a Delaware Corporation. The ultimate parent of Related Independence Associates L.P. is Centerline Holding Company. The Partnership's business is primarily to invest in other partnerships owning leveraged apartment complexes that are eligible for the low-income housing tax credit enacted in the Tax Reform Act of 1986, some of which may also be eligible for the historic rehabilitation tax credit. The Partnership is in the process of developing a plan to dispose of all of its investments. INEOS GROUP: Bank Debt Trades at 3% Off --------------------------------------- Participations in a syndicated loan under which Ineos Group Plc is a borrower traded in the secondary market at 96.79 cents-on-the- dollar during the week ended Friday, December 27, 2014 according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 3.20 percentage points from the previous week, The Journal relates. Ineos Group pays 275 basis points above LIBOR to borrow under the facility. The bank loan matures on May 2, 2018, and carries Moody's Ba3 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 212 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. INFINITY ENERGY: Recurring Losses Raise Going Concern Doubt ----------------------------------------------------------- Infinity Energy Resources, Inc., late last month filed with the U.S. Securities and Exchange Commission its Form 10-K for the year ended Dec. 31, 2013. EKS&H LLLP, in Denver, Colorado, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses, has no on-going operations, and has a significant working capital deficit, which raises substantial doubt about its ability to continue as a going concern. Infinity Energy disclosed a net loss applicable to common shareholders of $5.59 million for the year ended Dec. 31, 2013, compared to net income applicable to common shareholders of $894,570 for the year ended Dec. 31, 2012. As of Dec. 31, 2013, the Company had $10.49 million in total assets, $11.71 million in total liabilities, $1.65 million in redeemable, convertible preferred stock, and a $2.87 million total stockholders' deficit. A full-text copy of the Form 10-K is available for free at: http://is.gd/XKrhqs About Infinity Energy Overland Park, Kansas-based Infinity Energy Resources, Inc., and its subsidiaries, are engaged in the acquisition and exploration of oil and gas properties offshore Nicaragua in the Caribbean Sea. Infinity Energy disclosed net income of $2.90 million for the year ended Dec. 31, 2012, as compared with a net loss of $3.52 million during the prior year. Infinity Energy reported a net loss applicable to common shareholders of $5.58 million for the year ended Dec. 31, 2013, compared to net income applicable to common shareholders of $894,570 for the year ended Dec. 31, 2012. As of Dec. 31, 2013, the Company had $10.49 million in total assets, $11.71 million in total liabilities, $1.65 million in redeemable, convertible preferred stock, and a $2.87 million total stockholders' deficit. EKS&H LLLP, in Denver, Colorado, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses, has no on-going operations, and has a significant working capital deficit, which raises substantial doubt about its ability to continue as a going concern. INFORMATION RESOURCES: S&P Lowers CCR to 'B'; Outlook Stable ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its corporate credit rating on Information Resources Inc. to 'B' from 'B+'. The outlook is stable. At the same time, S&P lowered the issue-level ratings on the company's debt by one notch. The recovery ratings remain unchanged. "The downgrade reflects IRI's elevated leverage in the mid- to high-7x area, which significantly exceeds the 5x-or-higher threshold that we associate with a "highly leveraged" financial risk profile," said Standard & Poor's credit analyst Heidi Zhang. Because IRI's leverage is no longer in line with other 'B+' rated companies, we revised the comparable rating analysis modifier to "neutral" from "positive". We expect IRI to deleverage to the 6.5x area by 2015 through EBITDA growth related to data center migration cost savings and modest organic growth. S&P views IRI's business risk profile as "fair". As a provider of market tracking products and corresponding consulting services, the IRI competes against a variety of companies, including Nielsen Holdings N.V., which is better capitalized, has wider global reach, and achieves a significantly higher EBITDA margin. However, IRI has developed fairly stable relationships with manufacturers and retailers in the consumer packaged goods (CPG) and consumer health industries and further benefits from contract- based revenue and high barriers to entry, given the capital intensity of the business. The stable rating outlook reflects S&P's view that IRI's liquidity will remain adequate and that leverage will remain high. S&P currently views either an upgrade or a downgrade as unlikely over the next 12 months. S&P could raise the rating by one notch if it become convinced that the company will reduce adjusted debt-to-EBITDA to the low-5x area and consistently generate strong discretionary cash flow that would be available for debt reduction. This scenario would likely involve IRI achieving an adjusted EBITDA margin greater than 13% or repaying about $150 million of debt over the next few years. S&P could lower the rating if it becomes convinced that the company will be unable to consistently generate positive discretionary free cash flow or will face a material cash deficit in the next 12 months. These scenarios would likely involve IRI engaging in large acquisitions or operating at an adjusted EBITDA margin below 9% because of weak synergies from recent acquisitions or continued client losses. INNES MCINTYRE: Ch.7 Trustee Can't Sell Prattville Shopping Mall ---------------------------------------------------------------- Bankruptcy Judge William R. Sawyer denied two motions filed by the Chapter 7 Trustee for debtor Innes T. McIntyre IV: (1) Motion to Approve Compromise; and (2) Motion to Sell Property Free and Clear of Liens. Branch Banking & Trust Co. objected to both motions. The Chapter 7 Trustee, Daniel G. Hamm, was present by counsel Robert D. Reynolds. BB&T was present by counsel Joe A. Joseph, ServisFirst Bank was present by counsel Thomas P. Griffin, Jr., Innes T. McIntyre was present by counsel Jamie A. Wilson and Mitzi McIntyre and McIntyre Land Co., Inc., were present by counsel Scott M. Speagle. On March 8, 2010, Innes McIntyre filed a petition (Bankr. M.D. Ala. Case No. 10-30570-WRS) in bankruptcy pursuant to Chapter 11 of the Bankruptcy Code. On September 20, 2010, he voluntarily converted his case to a case under Chapter 7. Daniel G. Hamm was later appointed Chapter 7 Trustee in this case. In furtherance of his duties as Chapter 7 Trustee, Hamm filed an Adversary Proceeding styled: Hamm v. Innes McIntyre, Mitzi McIntyre and McIntyre Land Co., Inc., Adv. Pro. 11-3097. The Adversary Proceeding is brought in ten counts, however, a fair summary of that proceeding can be reduced to four elements, which are as follows: (1) a determination that McIntyre Land Company, Inc., is owned by Innes McIntyre and therefore is property of the estate; (2) a determination that the marital residence occupied by Debtor Innes McIntyre and his wife Mitzi is, at least in part, property of the estate in this case; (3) an objection to Innes McIntyre's discharge pursuant to 11 U.S.C. Sec. 727; (4) a money judgment against Mitzi McIntyre on a theory that transfers to her by McIntyre Land were fraudulent conveyances. Because of the complexity of the Trustee's Adversary Proceeding and the demand for a jury trial made by Mitzi, the Bankruptcy Court did not have jurisdiction to hear all of the claims made by the Trustee. Those issues triable before a Bankruptcy Judge were scheduled for trial on November 17, 2014, with the remainder of the issues to be tried in the District Court later. The parties to the Adversary Proceeding announced that they had reached a settlement during a pretrial hearing. As the Trustee's power to settle is subject to approval by the Court, after notice to creditors with an opportunity to be heard, the agreement did not terminate the Adversary Proceeding. On November 12, 2014, the Trustee filed a Motion to Approve Compromise and a Motion to Sell Property Free and Clear of Liens. The proposed settlement agreement contains three distinct pieces which are linked. That is, if any part of the settlement is not approved, there is no deal. The agreement may be summarized as follows: 1. Defendants Innes and Mitzi McIntyre will concede that McIntyre Land is property of the estate in this case. 2. Innes and Mitzi will purchase the Prattville Square Shopping Center, which is owned by McIntyre Land, from the estate for $740,000, free and clear of all liens and encumbrances, including the mortgages held by BB&T and ServisFirst Bank. 3. Innes and Mitzi will pay an additional $180,000 to the Trustee to settle all remaining claims. In return for this, the Trustee will agree to a dismissal, with prejudice, of Adversary Proceeding 11-3097. This would mean that Innes would get his Chapter 7 discharge, the marital residence would not be taken, Mitzi would not be exposed to liability for fraudulent conveyances and that the McIntyres would not be at risk for further claims from the Trustee. BB&T and ServisFirst object on a number of grounds: -- they contend that the Prattville Square Shopping Center is not property of the estate in this case and for that reason cannot be sold pursuant to 11 U.S.C. Sec. 363. -- they contend that there is no valid business reason for the sale and that it cannot be sold pursuant to Sec. 363(b). -- they contend that the price is inadequate. -- they contend that the sale does not satisfy any of the disjunctive conditions of Sec. 363(f) and for that reason, the property cannot be sold free and clear. -- BB&T contends that the proposed sale is improper because it is cast in such a manner so as to defeat their right to credit bid on property. The Court concludes that the first two objections are well taken, and did not reach the remainder of objections. As the motion to sell property pursuant to Sec. 363 is denied, it follows that the motion to approve the compromise must also be denied, the Court says. The Court agrees that the subject property is not property of the estate and for that reason, it cannot be sold pursuant to Sec. 363. Also, there is no valid business reason for the sale. Because the motion to compromise is contingent upon the private sale of the Prattville Square Shopping Center and because that sale is not approved, the motion to approve the compromise is denied, the Court adds. A copy of the Court's Dec. 23, 2014 Memorandum Decision is available at http://is.gd/mUIZh4from Leagle.com. INSTITUTO MEDICO: Taps Hooper Lundy as Special Counsel ------------------------------------------------------ Instituto Medico Del Norte Inc. asks the U.S. Bankruptcy Court for the District of Puerto Rico for permission to employ Robert L. Roth, Esq. and the firm of Hooper, Lundy & Bookman, P.C., as its special counsel. The firm will provide Hospital Wilma N. Vazquez with legal services relating to resolving the Hospital's Medicare DSH Part C days issue, which is currently pending in the Hospital's appeal before the Provider Reimbursement Review Board for fiscal years 2003, 2004, 2005 and 2006. Mr. Roth will be retained by the Debtor for an initial flat fee of $5,000 and an additional 10% of any recovery on the claims being collected on behalf of the Debtor, plus reasonable expenses. The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Mr. Roth can be reached at: Robert L. Roth, Esq. HOOPER, LUNDY & BOOKMAN, P.C. 401 9th Street, NW, Suite 550 Washington, D.C. 20004 Tel: (202) 580-7700 Fax: (202) 580-7719 E-Mail: rroth@health-law.com U.S. Trustee Objection Guy G. Gebhardt, the United States Trustee for Region 21, objects to the compensation provisions of the second application that attempts to establish that any fee or retainer disbursed will be regarded as non-refundable; earned upon receipt, not to be property of the estate and not applied to interim billing. According to the U.S. Trustee, the fee or retainer cannot cease to be property of the estate and cannot be regarded as non-refundable or earned upon receipt in contravention of Section 330 of the Bankruptcy Code, which provides that professional fees are not earned without prior approval of the court. Therefore, by operation of Section 330 in the event the fee or retainer is not used up as payment for the services provided the balance of unearned monies must be returned to Debtor, the U.S. Trustee points out. The U.S. Trustee adds, as to the $5,000 fee or retainer which is to be disbursed post-petition to the proposed professional, the post-petition disbursement is not in the ordinary course of the Debtor's business and can only be allowed, if the circumstances so warrant it. About Instituto Medico Instituto Medico del Norte, Inc. -- aka Centro Medico Wilma N. Vazquez, aka Hospital Wilma N. Vazquez Skill Nursing Facility of Centro Medico Wilma N. Vazquez -- sought protection under Chapter 11 of the Bankruptcy Code on Oct. 30, 2013 (Bankr. D.P.R. Case No. 13-08961). The case is assigned to Judge Mildred Caban Flores. The Debtor scheduled $20,843,692 in total assets and $20,107,642 in total liabilities. The Debtor, however, said its real property has a book value of $16,000,000 and personal property is worth $6,105,979. The Debtor is represented by Fausto David Godreau Zayas, Esq., and Rafael A. Gonzalez Valiente, Esq., at Latimer Biaggi Rachid & Godreau, in San Juan, Puerto Rico. Luis B. Gonzalez & Co. CPA's P.S.C. serves as accountant. The U.S. Trustee for the District of Puerto Rico in December appointed Dr. Carlos Mellado (b/t Lcda Dinorah Collazo Ortiz) as patient care ombudsman. INTERLEUKIN GENETICS: Raises $10 Million in Financings ------------------------------------------------------ Interleukin Genetics, Inc., has entered into a securities purchase agreement with various accredited investors to raise gross proceeds of $5 million in a private placement financing. The syndicate is comprised of new and existing investors including two leading life sciences investment firms, New Enterprise Associates (NEA) and Bay City Capital. Pursuant to the purchase agreement, the Company has agreed to issue an aggregate of 50,099,700 shares of the Company's common stock at a price per share of $0.1003, as well as warrants to purchase up to an aggregate of 50,099,700 shares of common stock. The warrants have a term of seven years and an exercise price of $0.1003 per share. BTIG, LLC, served as the placement agent for the private placement. Separately, Interleukin also entered into a venture loan and security agreement with Horizon Technology Finance Corporation (NASDAQ: HRZN) under which the Company has borrowed $5 million. In connection with the loan agreement, the Company has issued to Horizon warrants to purchase a total of 2,492,523 shares of common stock at a per share exercise price of $0.1003. The lender warrants have a term of 10 years. The Company has agreed to repay the loan in 45 monthly payments, including an initial 15-month period of interest-only payments. Net proceeds from the private placement and loan will be used primarily to accelerate commercialization of the Company's proprietary genetic tests, including PerioPredict, which identifies genetic variations that increase the risk for severe periodontal disease, and for general corporate and working capital purposes. About Interleukin Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized health company that develops unique genetic tests to provide information to better manage health and specific health risks. Interleukin Genetics incurred a net loss of $7.05 million on $2.42 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss of $5.12 million on $2.23 million of total revenue in 2012. As of Sept. 30, 2014, the Company had $4.45 million in total assets, $3.51 million in total liabilities, all current, and $937,289 in total stockholders' equity. Grant Thornton LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 3, 2013. The independent auditors noted that the Company has incurred recurring losses from operations and has an accumulated deficit that raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning The Company warned in its quarterly report for the period ended Sept. 30, 2014, that it if fails to obtain additional capital by Feb. 28, 2015, it may have to end its operations and seek protection under bankruptcy laws. "We expect that our current and anticipated financial resources will be adequate to maintain our current and planned operations only through February 28, 2015. We need significant additional capital to fund our continued operations, including for the continued commercial launch of our PerioPredictTM test, continued research and development efforts, obtaining and protecting patents and administrative expenses. We have retained a financial advisor, however, based on current economic conditions, additional financing may not be available, or, if available, it may not be available on favorable terms. In addition, the terms of any financing may adversely affect the holdings or the rights of our existing shareholders. For example, if we raise additional funds by issuing equity securities, further dilution to our then- existing shareholders will result. Debt financing, if available, may involve restrictive covenants that could limit our flexibility in conducting future business activities. We also could be required to seek funds through arrangements with collaborators or others that may require us to relinquish rights to some of our technologies, tests or products in development. If we cannot obtain additional funding on acceptable terms, we may have to discontinue operations and seek protection under U.S. bankruptcy laws." INVENT VENTURES: Needs Financing to Continue as Going Concern ------------------------------------------------------------- INVENT Ventures, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $128,000 on $74,300 of total revenue for the three months ended Sept. 30, 2014, compared with a net loss of $266,000 on $33,600 of total revenue for the same period in 2013. The Company's balance sheet at Sept. 30, 2014, showed $5.22 million in total assets, $1.43 million in total liabilities, and stockholders' equity of $3.79 million. The Company incurred a loss from operations of $344,000 during the nine months ended Sept. 30, 2014. The Company's only sources of cash flow have been from investments in the Company's common stock, borrowing on the company's line of credit, issuances of convertible notes, management fees from portfolio companies, and loans from its CEO. If the Company is unable to continue to raise sufficient capital to meet its operating needs or generate cash flow from operations, substantial doubt exists regarding the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/KuEj1O About INVENT Ventures Las Vegas, Nevada-based INVENT Ventures, Inc., formerly known as Los Angeles Syndicate of Technology, Inc., is a technology venture fund that creates, builds, and invests in web and mobile technology companies. The Company develops businesses in the consumer Internet, mobile and biotechnology markets, and owns six companies at different stages of development. ISTAR FINANCIAL: S&P Corrects Secured Debt Rating to 'B+' --------------------------------------------------------- Standard & Poor's Ratings Services corrected by lowering its rating on iStar Financial Inc.'s senior secured debt to 'B+' from 'BB-'. S&P affirmed the rating in error on Dec. 12, 2014, when S&P implemented its revised issue-level criteria for nonbank financial institutions to iStar. Under that criteria, S&P no longer rates secured debt above the issuer credit rating. S&P's issuer credit rating on iStar is 'B+'. The change in the rating did not result from any change in the creditworthiness of the debt. KANGADIS FOOD: Court OKs Stipulation, Closes Reorganization Case ---------------------------------------------------------------- U.S. Bankruptcy Judge Sandra J. Feuerstein approved a stipulation dismissing appellants Joseph Ebin and Yeruchum Jenkins' appeal on the order denying their motion to dismiss Kangadis Food, Inc.'s petition for bankruptcy, or, in the alternative, for relief from the automatic stay. In this relation, the Clerk of Court will close the case. As reported in the Troubled Company Reporter on Dec. 12, 2014, Sara Randazzo, writing for Daily Bankruptcy Review, reported that Kangadis Food won approval to leave bankruptcy after reaching a deal to pay $2 million to get rid of a class-action lawsuit accusing it of marketing an industrially processed product as pure olive oil. According to the report, citing Adam Rosen, an attorney for the company, Judge Robert Grossman in U.S. Bankruptcy Court in Central Islip, N.Y., signed off on Kangadis' creditor- repayment plan during a hearing. About Kangadis Food Formed in 2003, Kangadis Food Inc. is an importer of olives and other European delicacies, and a leading distributor of olive oil. The Debtor sells its products under the brand names "Capatriti," "Porto," "Olio Villa," "Zorba," and "Kivotos". The company is 100% owned by the Kangadis family. The company says that for the past six years, the popularity of its olive oil product sold under the brand name "Capatriti" has grown over time, and it is one of the leading brands in the New York metropolitan area. As of its bankruptcy filing, Kangadis Food employs 51 people, and operates from a 75,000 square foot facility located in Hauppauge, New York, that serves as a warehouse, production facility, and shipping center. Kangadis Food Inc. filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.Y. Case No. 8-14-72649) in the Central Islip division, in New York, on June 6, 2014. Themistoklis Kangadis signed the petition as chief executive officer. As of the Dec. 31, 2013, the Debtor, on an unaudited basis, had total assets of $12,259,802 and total liabilities of $6,136,456, which amount does not include any disputed claim relating to the class action. Judge Robert E. Grossman presides over the case. Silverman Acampora LLP, in Jericho, New York, serves as the Debtor's counsel. KENTUCKY ECONOMIC: Moody's Maintains Ba3 Senior Lien Bonds Rating ----------------------------------------------------------------- Moody's Investors Service maintains the underlying Ba3 rating with a stable outlook on the Kentucky Economic Development Finance Authority's (KEDFA) Louisville Arena Project Revenue Senior Lien Bonds. Debt outstanding includes: $319 million Series 2008-A bonds, $15 million Series 2008-B bonds and $9.9 million Series 2008-C bonds. The Series A bonds consist of $284 million of current interest fixed rate bonds and $26.9 million of capital appreciation bonds. The Series B bonds are taxable fixed rate bonds. Both issues are insured by Assured Guaranty Corp. (A3, negative outlook). The Series C bonds are unrated and uninsured. Rating Rationale The rating reflects the arena's narrow operating margins with a debt service coverage ratio (DSCR) below 1.1 times, low liquidity including a depleted Renovation and Replacement reserve, and dependence on volatile sales tax based TIF revenue for about a quarter of pledged revenues. The rating incorporates the fact that about two-thirds of annual revenues are derived from relatively more predictable sources, including payments from Metro Louisville, property taxes collected in the TIF district and long- term contracted sponsorship and naming rights revenues. The rating also recognizes recent improvements that have yielded positive results to date. These include the re-sizing of the TIF district to generate additional revenue and the addition of AEG as operations manager. While these improvements have yielded higher revenue growth to date and are likely to continue to increase as the general economy improves, LAA's financial profile is not expected to materially improve for at least a couple of years given the authority's ascending debt service payment requirements and limitations related to its operating agreements. The performance of the University of Louisville's men's and women's basketball team remains a key driver of long-term demand and revenue growth. Outlook The stable outlook is based on Moody's view that the arena's operating margins will remain narrow with debt service coverage at or below 1.1 times in the near term, including the Metro Louisville maximum payments. This is due to rising fixed debt service costs that require annual revenue growth to maintain the current financial profile. Sales tax revenues generated from the redefined 2-sq mile TIF district are likely to continue to increase in step with regional economic improvement, and Moody's expect AEG will continue to deliver its annual minimum guaranteed payment that is expected to continue to adequately cover LAA's operating expenses. What Could Change the Rating -- UP Sustained improvements in debt service coverage to over 1.2 times, replenished reserves, greater than projected sales tax revenue growth in the TIF district and arena revenue growth could exert upward pressure on the rating. What Could Change the Rating -- DOWN The rating could face downward rating pressure if revenues are inadequate to cover all costs resulting in a shortfall in debt service payments that require the use of the debt service reserve fund. Credit Strengths -- Strong support from the state and Metro Louisville decreases the demand risk for the arena and provides a base level of cash flow predictability -- Strong attendance record for the arena's anchor tenant, the University of Louisville's men's and women's Cardinals basketball teams, provides stability -- The contract granting the TIF revenues can only be canceled with approval of the bond trustee -- Recent operational improvements have yielded increasing revenues Credit Challenges -- Narrow operating margins with a low total debt service coverage ratio below 1.1 times and weak liquidity -- Steady and continuous growth in volatile TIF sales taxes is needed to support rising debt service costs -- TIF district exempts certain developments from payment of all or some of the taxes pledged to the project. Future developments could be added to the TIF district exemptions by action of the legislative council of Metro Louisville, but not without approval by the state and the authority. -- LAA's revenue sharing lease with ULAA limits the authority's profit upside from the successful anchor tenant Rating Methodologies The principal methodology used in this rating was Generic Project Finance Methodology published in December 2010. The additional methodology used in this rating was US Public Finance Special Tax Methodology published in January 2014. KIOR INC: Asks Court to Set Claims Bar Date ------------------------------------------- KiOR Inc. asks the U.S. Bankruptcy Court for the District of Delaware to set the deadline for creditors to file proofs of claim in the case. For claims arising before Nov. 9, 2014, the Debtor asks the Court to set at least 30 days after the service date at 5:00 p.m. (prevailing Eastern time) as the Claims Bar Date. Meanwhile, all governmental units must file their claims no later than 5:00 p.m. (prevailing Eastern time) on May 8, 2015. All proofs of claim must be filed either by: a) regular mail: KiOR Inc. Claims Processing Center c/o Epiq Bankruptcy Solutions LLC Grand Central Station P.O. Box 5283 New York, NY 10163-5283 b) overnight mail courier: KiOR Inc. Claims Processing Center c/o Epiq Bankruptcy Solutions LLC 757 Third Avenue, 3rd Floor New York, NY 10017 About Kior Inc. KiOR, Inc., and wholly owned subsidiary KiOR Columbus, LLC, are development stage, renewable fuels companies based in Pasadena, Texas and Columbus, Mississippi, respectively. KiOR, Inc., was founded in 2007 as a joint venture between Khosla Ventures, LLC, and BIOeCon B.V. KiOR Inc.'s primary business is the development and commercialization of a ground-breaking proprietary technology designed to generate a renewable crude oil from non-food cellulosic biomass. KiOR, Inc. filed a Chapter 11 petition (Bankr. D. Del. Case No. 14-12514) on Nov. 9, 2014, in Delaware. Through the chapter 11 case, the Debtor intends to reorganize its business or sell substantially all of its assets so that it can continue its core research and development activities. KiOR Columbus did not seek bankruptcy protection. The Debtor disclosed $58.27 million in assets and $261.3 million in liabilities as of June 30, 2014. The Debtor is represented by Mark W. Wege, Esq., Edward L. Ripley, Esq., and Eric M. English, Esq., at King & Spalding, LLP, in Houston, Texas; and John Henry Knight, Esq., Michael Joseph Merchant, Esq., and Amanda R. Steele, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware. The Debtor's financial advisor is Alvarez & Marsal. Guggenheim Securities, LLC, is the Debtor's investment banker. Epiq Bankruptcy Solutions, LLC, is the Debtor's claims and noticing agent. Pasadena Investments, LLC, as administrative agent for a consortium of lenders, committed to provide up to $15,000,000 in postpetition financing. The DIP Agent is represented by Thomas E. Patterson, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, in Los Angeles, California, and Michael R. Nestor, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. KIOR INC: Files Schedules of Assets and Liabilities --------------------------------------------------- KiOR Inc. filed its schedules of assets and liabilities, and statement of financial affairs in the U.S. Bankruptcy Court for the District of Delaware, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property B. Personal Property $31,228,986 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $237,373,500 E. Creditors Holding Unsecured Priority Claims $746,297 F. Creditors Holding Unsecured Non-priority Claims $4,270,665 ----------- ----------- TOTAL $31,228,986 $242,390,463 A full-text copy of the Debtor's schedules is available for free at http://is.gd/eQW8Bd About Kior Inc. KiOR, Inc., and wholly owned subsidiary KiOR Columbus, LLC, are development stage, renewable fuels companies based in Pasadena, Texas and Columbus, Mississippi, respectively. KiOR, Inc., was founded in 2007 as a joint venture between Khosla Ventures, LLC, and BIOeCon B.V. KiOR Inc.'s primary business is the development and commercialization of a ground-breaking proprietary technology designed to generate a renewable crude oil from non-food cellulosic biomass. KiOR, Inc. filed a Chapter 11 petition (Bankr. D. Del. Case No. 14-12514) on Nov. 9, 2014, in Delaware. Through the chapter 11 case, the Debtor intends to reorganize its business or sell substantially all of its assets so that it can continue its core research and development activities. KiOR Columbus did not seek bankruptcy protection. The Debtor disclosed $58.27 million in assets and $261.3 million in liabilities as of June 30, 2014. The Debtor is represented by Mark W. Wege, Esq., Edward L. Ripley, Esq., and Eric M. English, Esq., at King & Spalding, LLP, in Houston, Texas; and John Henry Knight, Esq., Michael Joseph Merchant, Esq., and Amanda R. Steele, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware. The Debtor's financial advisor is Alvarez & Marsal. Guggenheim Securities, LLC, is the Debtor's investment banker. Epiq Bankruptcy Solutions, LLC, is the Debtor's claims and noticing agent. Pasadena Investments, LLC, as administrative agent for a consortium of lenders, committed to provide up to $15,000,000 in postpetition financing. The DIP Agent is represented by Thomas E. Patterson, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, in Los Angeles, California, and Michael R. Nestor, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. LAS VEGAS SANDS: Fitch Raises Issuer Default Rating From 'BB+' -------------------------------------------------------------- Fitch Ratings has upgraded Las Vegas Sands Corp.'s (LVS) and its subsidiaries Issuer Default Ratings (IDR) to 'BBB-' from 'BB+' and upgraded the subsidiaries' senior secured credit facilities to 'BBB' from 'BBB-'. The rating actions affect LVS' Las Vegas Sands, LLC (LVS LLC), Sands China, Ltd. (Sands China), VML US Finance, LLC (VML US) and Marina Bay Sands Pte. Ltd (MBS), whose IDRs are all linked. In addition, the Rating Outlook is revised to Stable from Positive. Key Rating Drivers Fitch's upgrade of LVS' IDR to 'BBB-' mainly reflects the company's demonstrated commitment to maintaining conservative financial policies since it started to wind down its comprehensive capital development pipeline and return cash to shareholders about three years ago. The company's publicly stated goal is to maintain gross leverage below about 3x before additional debt related to large-scale development. The 3x gross leverage goal is well within Fitch's 4x gross leverage target (3.5x on net basis) for an investment-grade IDR given LVS' overall credit risk profile, although the Fitch- calculated ratio is about 0.4x higher relative to the company's calculation. The difference is attributable to Fitch subtracting corporate expense and income attributable to minority interest from EBITDA and Fitch calculates LVS' consolidated gross and net leverage for the LTM period ending Sept. 30, 2014 at 2.3x and 1.7x, respectively. LVS has maintained its capital allocation policies consistent with its leverage goal since mid-2011. Fitch believes that maintaining a strong balance sheet as a competitive advantage when bidding on large-scale casino resort developments in new gaming jurisdictions is an important motivation to maintain prudent financial policies. There is some flexibility around Fitch's leverage targets during the peak of a development cycle within the investment-grade context. The degree of flexibility will depend on the Fitch's visibility with respect to the operating environment as well as Fitch's perceived return on investment (ROI) for the project(s), whether they are fully funded, and the company's capital allocation decisions leading up to the peak spending levels (i.e. preserving adequate liquidity and possibly lessening more discretionary shareholder-friendly activity). Other key drivers for LVS' investment-grade IDR include its strong liquidity, robust discretionary free cash flow and significant capacity to monetize non-core assets. LVS also maintains a strong business profile supported by high-quality assets in attractive regulatory regimes, which provides the company with the best global market exposure profile in the industry. The ratings also consider LVS' history of being an aggressive developer of large-scale integrated resorts, management's still- limited track record of adhering to investment-grade-like policies relative to global investment-grade peers, and corporate governance issues mainly pertaining to Foreign Corrupt Practices Act(FCPA) investigations. Market Outlooks LVS' LTM (ending Sept. 30, 2014) property EBITDA is 64% Macau, 28% Singapore, 6% Las Vegas and 2% Pennsylvania. Gaming revenues in both Macau and Singapore have been pressured over the past several months due to the weakness in VIP and premium mass segments. In Macau, gaming revenue is pressured by the corruption crackdown in China, credit tightening among junkets, increased visa restrictions and the recently implemented smoking ban. Fitch projects negative growth in Macau gaming revenue of 2% in 2014 and 4% in 2015. The weakness in Macau is expected to persist through first-half 2015 (1H'15) until Galaxy Entertainment and Melco Crown open their respective projects (Fitch estimates LVS' Parisian will open mid-2016) and the negative trends that began mid-2014 are lapped. Fitch is modeling largely flat sequential growth through 1H'15 and sequential 5%-- 8% mass growth and 2% -- 4% VIP growth thereafter. LVS has lower than market average exposure to the VIP gaming segment (16% of Sands China's profit), which equates to less volatile earnings in Macau. Sands China's year-over-year (YoY) revenue declines have averaged 6% per month for the past six months since the declines started in June versus market average declines of 11%. Per Fitch's base case, Sands China's EBITDA declines are in the low teens in 1H'15 and then grow in the mid- single-digit range in 2H'15. Despite the negative overall 2015 forecasts, Fitch remains favorable on Macau's long-term fundamentals, continuing to hold that Macau and the greater China market remain underpenetrated. Gaming revenue growth should be driven by new supply and infrastructure development and the Chinese economy should continue to grow (6.8% in 2015 and 6.5% in 2016), anchoring mass market demand. Singapore is facing challenges in the VIP segment similar to Macau. The challenges are accentuated by new competition for Chinese VIP business from Philippines and by the aggressive competition from Resorts World Sentosa, MBS' sole competitor in Singapore. Positively, VIP gaming only accounts for 11% of LVS' profits in Singapore. The mass market remains healthy in Singapore; however, unlike in Macau the mass market in Singapore has little room to grow in light of the country's attempt to curb gambling by the locals and MBS' physical capacity constraints. Issue-Specific Ratings The upgrade of the ratings on U.S., Singapore and Macau credit facilities to 'BBB' from 'BBB-' reflects their significant asset overcollateralization (OC). The notch uplift also takes into account the conservative additional debt and asset disposition covenants in the credit agreements, with maximum leverage not allowed to exceed 3.0x-5.5x (the U.S. facility counts Singapore and Macau dividends in EBITDA). Asset disposition covenants do provide for certain carve-outs including the ability to sell certain retail assets in Macao and Singapore. The existing Macau facility does not include a lien on the Parisian project. The OC of the U.S.-based facility is not as great relative to that of Singapore and Macau. The leverage through the U.S. facility is 6.7x as of Sept. 30, 2014 based on LTM EBITDA of the Las Vegas assets plus the royalty fees from the Macau and Singapore subsidiaries. Fitch excludes Sands Bethlehem from the U.S. leverage calculation although if LVS sells the property it must use $500 million of the proceeds in excess of intercompany loans owed to LVS LLC to paydown and permanently reduce LVS LLC's revolver commitments. The facility also benefits from LVS LLC's partial ownership of the Singapore and Macau subsidiaries. Fitch may reconsider the one-notch uplift on the U.S. facility versus the IDR if LVS reorganizes its corporate structure such that the U.S. issuer no longer owns the Singapore and Macau subsidiaries. Rating Sensitivities Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- A longer track record of maintaining and complying with LVS' existing financial policy; -- Gross leverage sustaining below 3.5x on a gross basis and 3x on a net basis for an extended period; -- Renewal of the Macau gaming concession (expires 2022) and an extension of exclusivity in Singapore (expires 2017); -- Increased diversification through development in new jurisdictions (e.g. Japan, Korea, etc.); -- Greater clarity on succession planning. Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- Deviation from LVS' articulated financial policies; -- Gross leverage sustaining above 4x on a gross basis and 3.5x on a net basis for an extended period; -- Macau concession not being renewed or Singapore government awarding additional licenses starting 2017; -- Meaningful fine(s) or other negative implications connected to the FCPA investigations. With respect to the leverage targets above, there is flexibility in the event leverage temporarily increases above the stated targets during peak development cycle in the event LVS develops in Japan or another jurisdiction where the return on investment prospects are high. Fitch has upgraded these ratings: Las Vegas Sands Corp. -- IDR to 'BBB-' from 'BB+', Outlook to Stable from Positive. Las Vegas Sands LLC -- IDR to 'BBB-' from 'BB+', Outlook to Stable from Positive; -- US$2.25 billion secured term loan to 'BBB' from BBB-'; -- US$1.25 billion secured revolving credit facility to 'BBB' from BBB-'. Sands China Ltd. (Sands China) -- IDR to 'BBB- 'from 'BB+', Outlook to Stable from Positive. VML US Finance LLC (VML US) -- IDR to 'BBB-' from 'BB+', Outlook to Stable from Positive; -- US$2 billion Macau secured revolving credit facility to 'BBB' from 'BBB-'; -- US$2.4 billion Macau secured term loan to 'BBB' from 'BBB-'. Marina Bay Sands Pte. Ltd. (MBS) -- IDR to 'BBB-' from 'BB+', Outlook to Stable from Positive; -- SGD500 million Singapore secured revolving credit facility to 'BBB' from 'BBB-'; -- SGD3.7 billion Singapore secured term loan to 'BBB' from 'BBB-'. LEHMAN BROTHERS: Sues St. Louis University Over Swaps ----------------------------------------------------- Joseph Checkler, writing for Daily Bankruptcy Review, reported that Lehman Brothers Holdings Inc.'s estate is suing Saint Louis University over soured interest-rate swaps agreements, the latest in a string of such suits filed by the defunct investment bank. According to the report, in a filing with U.S. Bankruptcy Court in Manhattan, Lehman said that after the bank's 2008 bankruptcy filing caused a termination of the swap deals, the university used a "commercially unreasonable" method to determine how much it owed Lehman. Instead of seeking four dealers to estimate the value of the swaps, the school sought nine quotations and only used four of those in an attempt to "lowball" Lehman, Lehman said, the report added. 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 Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed 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. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. 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. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch 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 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. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. As of Oct. 2, 2014, Lehman's total distributions to unsecured creditors have amounted to $92.0 billion. As of Sept. 30, 2014, the brokerage trustee has substantially completed customer claims distributions, distributing more than $106 billion to 111,000 customers. 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. LENCO MOBILE: Reports $2.52-Mil. Net Loss in Sept. 30 Quarter ------------------------------------------------------------- Lenco Mobile Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $2.52 million on $4.21 million of total revenue for the three months ended Sept. 30, 2014, compared with net income of $0.49 million on $3.39 million of total revenue for the same period in 2013. The Company's balance sheet at Sept. 30, 2014, showed $6.46 million in total assets, $34.63 million in total liabilities, and a stockholders' deficit of $28.16 million. As of September 30, 2014, the Company had cash and cash equivalents of approximately $0.4 million, and a working capital deficit of $32.0 million. A copy of the Form 10-Q is available at: http://is.gd/4R8QUP About Lenco Mobile Inc. Lenco Mobile Inc. provides consulting and technical services, together with proprietary technology, for the fast-growing market for mobile marketing and mobile customer engagement applications. The company provides customers, including leading wireless carriers, consumer brands and enterprises, with turnkey solutions to attract, retain and monetize relationships with customers. Lenco Mobile offers brand owners the ability to design, manage, and execute mobile-based marketing campaigns through a variety of technologies, including MMS messaging with improved messaging throughput, better quality, and reduced bandwidth usage on a per message basis. LOCATION BASED TECHNOLOGIES: CEO Issues Letter to Shareholders -------------------------------------------------------------- Location Based Technologies Inc. Chief Executive Officer, Dave Morse, has released a letter to shareholders. Dear Shareholders, Year-end is a time for both reflection and a time to look forward. In looking back at 2014, LBT is particularly proud of achieving several key milestones in strategic areas: * Total paid monthly users (defined as the total number of users that paid a minimum of $12.95 for a month of service during the past year) exceeded 72,000, an increase of more than double (123%) compared to the prior year; * Service income achieved break-even levels in mid-2014, which will enable gross margins from service revenues to accelerate in future periods as many costs related to service revenue are fixed in nature; * Monthly service income exceeded $100,000 per month starting in July 2014; * Excluding the provision for inventory valuation reserves, the Company realized a 20% gross margin on device sales as compared to a negative 20% for the previous year; and * Overall gross margins were positive for the first time in the Company's history. These major advances reinforce LBT's core value proposition of attracting and retaining customers while creating the potential for a positive return on investment for you, our shareholders, in this Internet of Things (IoT) high growth space. We have focused on cutting our costs in areas with minimal impact upon our customers and have refocused our resources on growing the business in 2015 in the following four ways: * Expanding our US based sales by partnering with a world class distributor. Contract signed. * Expanding our sales in Mexico through key strategic retail outlets. Contract signed. * Launching a major initiative focused on partnering with auto dealerships in the US. * Introducing our new 3G PocketFinder devices into the US, Canadian and Australian markets. Our yearend filing can be seen at www.sec.gov and it contains specific information on each of these key initiatives along with high level revenue projections. Customers, employees, business partners and shareholders intersect with many common expectations and our commitment at LBT is to deliver the best value and the strongest results possible to each. Our vision remains clear and our resources are aligned - we know that our success is tied to the growth of our customer base and subscription revenues. That is our focus. Each of our key initiatives for 2015 provides dynamic growth opportunities that will carry us to our ultimate achievement of profitability. These exciting initiatives set the stage for what we believe to be a richly rewarding new year. We have a team that is up for and eager to meet these challenges. As always, we sincerely thank you for your continued hope in the success of our company and for your continued trust and confidence. We look forward to 2015 with excitement and confidence, hoping that it will be a year of success, growth, and profits for all. Sincerely, David M. Morse, PhD CEO About Location Based Technologies Irvine, Calif.-based Location Based Technologies, Inc., designs, develops, and sells leading-edge personal locator devices and services. The Company incurred a net loss of $11.04 million for the year ended Aug. 31, 2013, as compared with a net loss of $7.96 million for the year ended Aug. 31, 2012. Location Based reported a net loss of $5.14 million on $1.70 million of total net revenue for the year ended Aug. 31, 2014, compared to a net loss of $11.04 million on $1.91 million of total net revenue for the year ended Aug. 31, 2013. As of Aug. 31, 2014, the Company had $2.32 million in total assets, $12.31 million in total liabilities and a $9.98 million total stockholders' deficit. Friedman LLP, in East Hanover, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Aug. 31, 2014, citing that the Company's operating losses raise substantial doubt about its ability to continue as a going concern. Bankruptcy Warning "[W]e remain obligated under a significant amount of notes payable, and Silicon Valley Bank has been granted security interests in our assets. If we are unable to pay these or other obligations, the creditors could take action to enforce their rights, including foreclosing on their security interests, and we could be forced into liquidation and dissolution. We are also delinquent on a number of our accounts payable. Our creditors may be able to force us into involuntary bankruptcy," the Company stated in the Fiscal 2014 Report. LONGVIEW POWER: Time to Remove Actions Extended to March 22 ----------------------------------------------------------- U.S. Bankruptcy Judge Brendan L. Shannon has approved an extension of Longview Power LLC's removal period for filing notices of removal of the Actions by 120 days, up to and including March 22, 2015. About Longview Power Longview Power LLC is a special purpose entity created to construct, own, and operate a 695 MW supercritical pulverized coal-fired power plant located in Maidsville, West Virginia, just south of the Pennsylvania border and approximately 70 miles south of Pittsburgh. The project is owned 92% by First Reserve Corporation (First Reserve or sponsor), a private equity firm specializing in energy industry investments, through its affiliate GenPower Holdings (Delaware), L.P., and 8% by minority interests. Longview Power, LLC, filed a Chapter 11 (Bank. D. Del. Lead Case 13-12211) on Aug. 30, 2013. The petitions were signed by Jeffery L. Keffer, the Company's chief executive officer, president, treasurer and secretary. The Debtor estimated assets and debts of more than $1 billion. Judge Brendan Linehan Shannon presides over the case. Kirkland & Ellis LLP and Richards, Layton & Finger, P.A., serve as the Debtors' counsel. Lazard Freres & Company LLC acts as the Debtors' investment bankers. Alvarez & Marsal North America, LLC, is the Debtors' restructuring advisors. Ernst & Young serves as the Debtors' accountants. The Debtors' claims agent is Donlin, Recano & Co. Inc. The Debtor disclosed assets of $1,717,906,595 plus undisclosed amounts and liabilities of $1,075,748,155 plus undisclosed amounts. Roberta A. DeAngelis, U.S. Trustee for Region 3, disclosed that as of Sept. 11, 2013, a committee of unsecured creditors has not been appointed in the case due to insufficient response to the U.S. Trustee's communication/contact for service on the committee. MATTAMY GROUP: S&P Revises Outlook to Neg. & Affirms 'BB' CCR ------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on Oakville, Ont.-based Mattamy Group Corp. to negative from stable. At the same time, S&P affirmed its 'BB' corporate credit rating on the company and our 'BB' issue-level rating on the company's senior unsecured notes. The recovery rating on the notes is '3', indicating S&P's expectation for a meaningful (50% to 70%) recovery in the event of a default. "The outlook revision to negative from stable is largely driven by the increased debt we expect to be used to partially finance the acquisition of Monarch and its impact on Mattamy's credit measures," said Standard & Poor's credit analyst Matthew Lynam. The negative outlook reflects S&P's expectation that increased debt from the company's acquisition of Monarch Homes will result in debt to EBITDA within the 4x-5x range over the next 12 to 18 months. S&P could take a negative rating action if adverse conditions in the U.S. and Canadian housing markets cause the company to underperform S&P's forecast for home sale volume such that it believes leverage will be sustained above 5x or if the company's covenant cushion were to erode further. S&P could stabilize the outlook on the company if sales volume outperforms its forecast, causing credit measures to return to the pre-acquisition level, notably with debt to EBITDA returning to the 3x-4x range and debt to total capital below 50%, sooner than anticipated. Monarch is a leading Canadian builder and developer of detached single-family homes and both low-rise and high-rise condominium homes in the Toronto and Ottawa region, largely overlapping with Mattamy's existing footprint in these regions. MEDFORD DEVELOPMENT: Case Summary & Largest Unsecured Creditors --------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Medford Development Corp. 14-75666 701 Montauk Highway Bay Shore, NY 11706 Motor Parkway Enterprises, Inc. 14-75667 701 Montauk Highway Bay Shore, NY 11706 Wheeler Development, LLC 14-75668 701 Montauk Highway Bay Shore, NY 11706 Smithtown Development Corp. 14-75669 Brentwood Development Corp. 14-75670 Holbrook Development Corp. 14-75671 Carman Development Corp. 14-75672 Maple Avenue Hauppauge Development Corp. 14-75674 Port Jefferson Development Corp. 14-75675 Ronkonkoma Development Corp. 14-75676 Islandia Development Corp. 14-75677 Oceanside Enterprises Inc. 14-75678 Islip Development Corp. 14-75679 Westbury Enterprises, Inc. 14-75680 Airport Development Corp. 14-75683 Chapter 11 Petition Date: December 24, 2014 Court: United States Bankruptcy Court Eastern District of New York (Central Islip) Judge: Hon. Alan S Trust Debtors' Counsel: Michael J Macco, Esq. MACCO & STERN LLP 135 Pinelawn Road Suite 120 South Melville, NY 11747 Tel: 631-549-7900 Fax: 631-549-7845 Email: csmith@maccosternlaw.com Estimated Estimated Assets Liabilities ---------- ----------- Medford Development Corp. $0-$50,000 $100K-$500K Motor Parkway Enterprises $0-$50,000 $100K-$500K Wheeler Development $0-$50,000 $500K-$1MM Westbury Enterprises $0-$50,000 $100K-$500K The petitions were signed by Steve Keshtgar, president. A list of Medford Development's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nyeb14-75666.pdf A list of Motor Parkway's six largest unsecured creditors is available for free at http://bankrupt.com/misc/nyeb14-75667.pdf A list of Wheeler Development's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nyeb14-75668.pdf A list of Westbury Enterprises' 17 largest unsecured creditors is available for free at http://bankrupt.com/misc/nyeb14-75680.pdf MEG ENERGY: Bank Debt Trades at 5% Off --------------------------------------- Participations in a syndicated loan under which MEG Energy Corp is a borrower traded in the secondary market at 95.35 cents-on-the- dollar during the week ended Friday, December 27, 2014 according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 3.85 percentage points from the previous week, The Journal relates. MEG Energy Corp pays 275 basis points above LIBOR to borrow under the facility. The bank loan matures on March 16, 2020, and carries Moody's Ba1 rating and Standard & Poor's BBB- rating. The loan is one of the biggest gainers and losers among 212 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. MERCANTIL COMMERCEBANK: Fitch Affirms 'BB' IDR; Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed the Long- and Short-term Issuer Default Ratings (IDRs) of Mercantil Commercebank Florida Bancorp (MCFB) and its main subsidiary, Mercantil Commercebank, N.A. at 'BB/B' with a Stable Outlook. Through its ultimate domestic holding company, Mercantil Commercebank Holding Corp. (MCH), the bank is beneficially owned by Mercantil Servicios Financieros (MSF), one of the largest financial institutions based in Venezuela. Although the ratings assigned are for MCFB, Fitch also reviews the financials for MCH, which is the domestic holding company for MCFB in the U.S. Fitch's rating action follows the downgrade of MSF and its affiliated bank, Mercantil C.A. Banco Universal (Mercantil). KEY RATING DRIVERS - IDRs, Viability Rating (VR) and Senior Debt In Fitch's view, MCFB's ratings are not immediately affected by the downgrade of MSF and/or Mercantil. Although MCFB is part of the organizational structure of MSF and the franchise could be affected by the health of its parent company/and or affiliated bank, Fitch believes the recent downgrade of its ultimate parent reflected conditions in Venezuela and believe the impact on the Florida-based franchise, at this time, is limited. In Fitch's opinion, contagion risk to MCFB from the parent is limited at this time. MCFB's holding company structure isolates and ring-fences its assets given the strong local regulator which can restrict transfers of capital and liquidity from the subsidiary to the parent. Further, to date, there is no evidence that MSF has withdrawn liquidity or capital. Fitch believes that this supports the independence of the subsidiary's credit profile from that of its parent. In general, subsidiary banks can be vulnerable to a sharp deterioration in the parent's credit profile. However, Fitch believes this is a rare case, where the subsidiary's Viability Rating (VR), and Long-Term IDR, can be higher than its parent's Long-Term IDR. In Fitch's review of MCH, the criteria report 'Rating FI Subsidiaries and Holding Companies', August 2012, was applied. Fitch notes that there may be risks to MCFB's Venezuelan deposit base, such as depositors seeking other U.S.-based banking institutions in which to deposit their monies given concerns with MSF and/or Mercantil. However, to date, MCFB has actually demonstrated a stable, steady deposit base, despite volatility in Venezuela. Furthermore, MCFB has experienced a number of tumultuous events over the last 10 years that have pressured MSF in its home market, yet none have materially impacted MCFB's financial condition (either through loan losses and/or a meaningful decline in its deposit base). Nonetheless, should a change in depositor behavior become prevalent or exposure to Venezuela lead to credit deterioration, MCFB's ratings may come under review. The funding structure is largely core deposit driven, and benefits from a high volume of international deposits. The majority of international funding is sourced from Venezuelan depositors who have turned to U.S. banks as a safe haven. These deposits typically have a very low attrition rate, limited rate sensitivity and provide a stable source of low-cost funding. Furthermore, Fitch also believes MCH's balance sheet has good liquidity with a combination of cash, cash equivalents and investment securities representing about 33% of total assets on Sept. 30, 2014, with a loan-to-deposit ratio of 82%. MCFB's IDRs reflect its geographic concentration, mainly in South Florida, risk profile that includes exposure to economic conditions in Latin America, limited franchise, and modest earnings metrics. The company's ratings are supported by its solid capital levels and good liquidity profile, and Fitch believes the improvement in credit and financial performance over the last two years is sustainable. Although profitability has improved, MCH's earnings measures tend to be modest when compared to other community banks and are considered a rating constraint. Fitch attributes this to the company's asset mix, which is lower yielding, as cash and investment securities averaged 29% of total assets over the past four quarters. Additionally, MCH's large correspondent banking business and short-term trade finance business are lower-yielding than other types of loans, which also constrains spread revenue and the margin. Other factors affecting recent performance include the extended period of low interest rates. Credit trends have significantly improved from the peak of the crisis, as net charge-offs (NCOs), nonperforming assets (NPAs), and the inflows of criticized/classified assets all continue to decline and return to normalized levels. Fitch expects future credit costs to be manageable given the continued reduction in overall balances in the riskier segments of CRE and construction portfolios. For 3Q'14, NPAs, calculated by Fitch to include accruing troubled debt restructuring, was 0.70% compared to 0.97% the same period a year ago. NCOs also declined to 0.09% for 3Q'14 compared to 3.9% at the peak of the crisis year-end 2009. MCH's capital position is solid and supports the risks inherent in the bank's business mix. MCH's TCE/TA ratio stood at 8.64% and Tier 1 Common stood at 13.65%. Given projected loan growth, capital is expected to decline slightly but should remain above peer averages. The decline should also be manageable given the expectation of sustainable profitability. The company has continued to shift its loan mix by reducing real estate lending and growing its commercial and industrial (C&I) portfolio. Although Fitch views the diversification in the loan mix as a positive, the industry in general has also been growing C&I loans and competition is fierce. In general, Fitch is concerned with the potential for credit quality deterioration, since performance for these loans is better than historical averages. Offsetting this, MCFB's targeted client base is more niche, which gives the company an opportunity to leverage its expertise in Latin America as well as in oil-related industries. Additionally, the bank also engages in syndicated lending through participations in large lending arrangements to domestic corporate borrowers. Participations are entered into with the initial lending group or purchased in the secondary market. Although performance to date has been stable, Fitch will monitor the growth in this segment. KEY RATING SENSITIVITIES - IDRs, Senior Debt and VR Given MCFB's geographic concentration in South Florida, its IDRs are sensitive to market conditions within its footprint. Additionally, MCFB has a large component of international exposures (roughly 40% of its lending activity), which is also affected by economic conditions in Latin America. MCFB's ratings are on the high end of its rating potential. Although Fitch recognizes the company's recent improvements in asset quality and earnings, the company's ties to its parent company, MSF, and affiliated bank, Mercantil CA Banco Universal are considered as a rating constraint. Factors that could trigger negative rating action would be a change in depositor behavior represented by a declining trend in deposits. Although not anticipated, reputational risk is also a concern given that MCFB's ultimate parent is domiciled in Venezuela. Other factors that would be viewed negatively are a decline in earnings and/or a reversal of recent improvements in credit performance. Fitch notes that MCH has experienced above-average C&I loan growth that is as yet unseasoned. KEY RATING DRIVERS and SENSITIVITIES - Support and Support Rating Floors MCFB has a Support Rating of '5' and Support Rating Floor of 'NF'. In Fitch's view, MCFB is not systemically important and therefore, the probability of support is unlikely. IDRs and VRs do not incorporate any support. KEY RATING DRIVERS and SENSITIVITIES - Institutional Support Over the years, capital ratios have been augmented by capital contributions from MSF. Although MSF has demonstrated its willingness to provide capital support to MCFB and ultimately to MCB, Fitch assumes that additional contributions from MSF are unlikely and cannot be relied upon. KEY RATING DRIVERS - Holding Company MCH has a bank holding company (BHC) structure with the bank as the main subsidiary. The subsidiary is considered core to the parent holding company, supporting equalized ratings between the bank subsidiary and the BHC. IDRs and VRs are equalized with those of MCH's operating company and bank reflecting its role as the bank holding company, which is mandated in the U.S. to act as a source of strength for its bank subsidiaries. KEY RATING SENSITIVITIES - Holding Company On a stand-alone basis at the holding company, MCFB's liquidity is considered ample. The holding company maintained its own source of liquidity with cash and investment securities totaling $42 million at Sept. 30, 2014. Annual MCFB (parent-company only) interest expense totals approximately $7 million, providing about 6x coverage. The only debt outstanding at MCH or MCFB consists of $114 million of trust preferred securities (unrated), issued privately and through pools. Double leverage is modest at 111%. PROFILE Established in 1979, Mercantil Commercebank, N.A. (MCB), based in Coral Gables, FL, is a privately held, FDIC insured, nationally chartered bank, regulated by the Office of the Comptroller of the Currency (OCC). The bank has 11 branches throughout Miami-Dade County, three in Broward County, one in Palm Beach County, one in New York, NY, and four in Houston, TX. The bank is ultimately beneficially owned by Mercantil Servicios Financerios (MSF), the largest financial group based in Venezuela. Fitch has affirmed the following ratings, with a Stable Outlook: Mercantil Commercebank Florida BanCorp. -- Long-term IDR at 'BB'; -- Short-term IDR at 'B'; -- VR at 'bb'; -- Support at '5'; -- Support floor at 'NF'. Mercantil Commercebank, N.A. -- Long-term IDR at 'BB'; -- Long-term deposits t 'BB+'; -- Short-term IDR at 'B'; -- Short-term deposits at 'B'; -- VR at 'bb'; -- Support at '5'; -- Support Floor at 'NF'. METALICO INC: Enters Into Exchange Agreements with Note Holders --------------------------------------------------------------- Pursuant to the terms of the previously disclosed Exchange Agreements between the Company and each of the Note Holders, respectively, dated Oct. 21, 2014, Metalico, Inc., agreed to exchange for its outstanding 7% senior subordinated unsecured convertible notes due April 30, 2028, (i) new convertible notes in the aggregate principal amount of approximately $14.7 million, representing the outstanding balance of the Original Convertible Notes, and (ii) a right to receive a number of additional common shares in accordance with, and subject to, the terms set forth in the Exchange Agreements. Under the terms of the Exchange Agreements, the aggregate number of Additional Common Shares to be issued to the Note Holders was equal to (A) the quotient obtained by dividing (x) Ten Million Dollars ($10,000,000) and (y) 85% of the volume weighted average of the Weighted Average Prices (as defined in the New Series Convertible Notes) of the Common Stock during the period consisting of each of the forty (40) consecutive "Trading Days" as defined therein beginning on, and including, the Trading Day immediately following Oct. 21, 2014, less (B) 10,096,928. The number representing 85% of the volume weighted average of the Weighted Average Prices for the Measurement Period was determined to be approximately $0.4105. As a result, the Company is obligated to issue an aggregate of 14,265,815 shares of its Common Stock to the Note Holders. Pursuant to Section 4 of the Exchange Agreements, the Note Holders have the right to defer the issuance of a portion of their shares until a later date. The issuance of the shares of Common Stock was made in exchange for the Original Convertible Notes pursuant to an exemption from the registration requirements provided by Section 3(a)(9) under the Securities Act of 1933, as amended. About Metalico Metalico, Inc., is a holding company with operations in two principal business segments: ferrous and non-ferrous scrap metal recycling, and fabrication of lead-based products. The Company operates recycling facilities in New York, Pennsylvania, Ohio, West Virginia, New Jersey, Texas, and Mississippi and lead fabricating plants in Alabama, Illinois, and California. Metalico's common stock is traded on the NYSE MKT under the symbol MEA. Metalico reported a net loss attributable to the Company of $34.81 million in 2013 following a net loss attributable to the Company of $13.11 million in 2012. Metalico incurred a net loss attributable to the Company of $3.61 million for the six months ended June 30, 2014. As of Sept. 30, 2014, the Company had $294.46 million in total assets, $156.95 million in total liabilities and $137.51 million in total equity. MF GLOBAL: Settles U.S. Govt. Lawsuit, To Pay $1.3BB ---------------------------------------------------- Bob Van Voris and Gregory Mott at Bloomberg News reports that MF Global Holdings Ltd. has agreed to pay $1.2 billion in restitution and a $100 million fine for customer losses tied to the Company's 2011 collapse, settling a U.S. government lawsuit. Bloomberg News adds that U.S. District Judge Victor Marrero in Manhattan approved the agreement on Dec. 24, 2014. Bloomberg News recalls that the U.S. Commodity Futures Trading Commission, the main regulator of the Company's failed brokerage unit MF Global Inc., sued the Company and company officials including former Chief Executive Officer Jon Corzine in 2013 for failing to properly supervise workers. According to the report, CFTC claimed the Company is responsible for the brokerage's failure to notify the agency of deficiencies in client accounts, false statements and improper investments. Citing the CFTC, Bloomberg News relates that clients have already received most of what they are owed. According to Bloomberg News, the agency said it will continue its litigation against Mr. Corzine and Edith O'Brien, a former assistant treasurer of the unit that oversaw the funds. About MF Global New York-based MF Global -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058), after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. On Nov. 7, 2011, the United States Trustee appointed the statutory creditors' committee in the Debtors' cases. At the behest of the Statutory Creditor's Committee, the Court directed the U.S. Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy Court entered an order approving the appointment of Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC, as Chapter 11 trustee. On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On Dec. 27, the Court entered an order installing Mr. Freeh as Chapter 11 Trustee of the New Debtors. On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr. Freeh also was installed as its Chapter 11 Trustee. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. The Official Committee of Unsecured Creditors has retained Capstone Advisory Group LLC as financial advisor, while lawyers at Proskauer Rose LLP serve as counsel. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. In April 2013, the Bankruptcy Court approved MF Global Holdings' plan to liquidate its assets. Bloomberg News reported that the court-approved disclosure statement initially told creditors with $1.134 billion in unsecured claims against the parent holding company why they could expect a recovery of 13.4% to 39.1% from the plan. As a consequence of a settlement with JPMorgan, supplemental materials informed unsecured creditors their recovery was reduced to the range of 11.4% to 34.4%. Bank lenders will have the same recovery on their $1.174 billion claim against the holding company. As a consequence of the settlement, the predicted recovery became 18% to 41.5% for holders of $1.19 billion in unsecured claims against the finance subsidiary, one of the companies under the umbrella of the holding company trustee. Previously, the predicted recovery was 14.7% to 34% on bank lenders' claims against the finance subsidiary. MF GLOBAL: CFTC Fines Parent Company $100 Million ------------------------------------------------- Andrew Ackerman and Alan Zibel, writing for The Wall Street Journal, reported that the Commodity Futures Trading Commission said it fined the parent company of failed brokerage MF Global Inc. $100 million as part of a settlement stemming from the firm's 2011 collapse. According to the report, the settlement comes on top of a separate $100 million fine MF Global's brokerage has already agreed to pay to settle related civil charges over allegations the firm misused customers' money during the firm's collapse more than three years ago. As part of the settlement with the parent company, MF Global's holding company becomes jointly responsible with its brokerage unit to pay $1.2 billion in restitution to the failed brokerage firm's customers, the Journal said. About MF Global New York-based MF Global -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058), after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. On Nov. 7, 2011, the United States Trustee appointed the statutory creditors' committee in the Debtors' cases. At the behest of the Statutory Creditor's Committee, the Court directed the U.S. Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy Court entered an order approving the appointment of Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC, as Chapter 11 trustee. On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On Dec. 27, the Court entered an order installing Mr. Freeh as Chapter 11 Trustee of the New Debtors. On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr. Freeh also was installed as its Chapter 11 Trustee. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. The Official Committee of Unsecured Creditors has retained Capstone Advisory Group LLC as financial advisor, while lawyers at Proskauer Rose LLP serve as counsel. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. In April 2013, the Bankruptcy Court approved MF Global Holdings' plan to liquidate its assets. Bloomberg News reported that the court-approved disclosure statement initially told creditors with $1.134 billion in unsecured claims against the parent holding company why they could expect a recovery of 13.4% to 39.1% from the plan. As a consequence of a settlement with JPMorgan, supplemental materials informed unsecured creditors their recovery was reduced to the range of 11.4% to 34.4%. Bank lenders will have the same recovery on their $1.174 billion claim against the holding company. As a consequence of the settlement, the predicted recovery became 18% to 41.5% for holders of $1.19 billion in unsecured claims against the finance subsidiary, one of the companies under the umbrella of the holding company trustee. Previously, the predicted recovery was 14.7% to 34% on bank lenders' claims against the finance subsidiary. MINERAL PARK: Removal Period Extended to March 23, 2015 ------------------------------------------------------- U.S. Bankruptcy Judge Brendan L. Shannon has approved an extension of Mineral Park Inc.'s removal period for filing notices of removal of the Actions up to and including March 23, 2015. About Mineral Park Mineral Park, Inc., Bluefish Energy Corp. and two affiliates commenced proceedings under Chapter 11 of the Bankruptcy Code in Delaware on Aug. 25, 2014. The cases are pending before the Honorable Kevin J. Carey and are jointly administered under Case No. 14-11996. Mineral Park and its affiliated debtors are subsidiaries of Mercator Minerals Ltd. ("MML"), a mineral resource company engaged through various subsidiaries in the mining, exploration, development and operation of its mineral properties in Mohave County, Arizona, and Sonora, Mexico. Mineral Park's principal asset is the Mineral Park Mine, a producing copper-molybdenum mine located near Kingman, Arizona. Bluefish is the owner and operator of the industrial gas turbine power generator at the Mine. British Columbia, Canada-based MML, which has shares trading on the Toronto Stock Exchange under the trading symbol "ML", is not included in the bankruptcy filing. The Debtors have tapped Pachulski Stang Ziehl & Jones LLP as counsel, Evercore Group LLC as investment banker, FTI Consulting, Inc., as financial advisor, FTI's David J. Beckman as CRO, and FTI's Paul Hansen as assistant CRO. Prime Clerk LLC is the claims and noticing agent. The U.S. Trustee for Region 3 appointed three creditors of Mineral Park, Inc. and its affiliates to serve on the official committee of unsecured creditors. The Committee selected Stinson Leonard Street LLP and Hiller & Arban LLC as its counsel. Mineral Park reported $286,362,131 in total assets and $266,035,508 in total liabilities. MJC AMERICA: Has Access to East West Bank's Cash Collateral ----------------------------------------------------------- The Bankruptcy Court approved a stipulation for MJC America, Ltd.'s interim continued use of cash collateral. The Debtor's sixth stipulation with East West Bank authorizes the use of cash collateral until June 1, 2015. The parties have already entered into several cash collateral stipulations. The Debtor is represented by: David A. Tilem, Esq. LAW OFFICES OF DAVID A. TILEM 206 N. Jackson Street, Suite 201 Glendale, CA 91206 Tel: (818) 507-6000 Fax: (818) 507-6800 E-mail: davidtilem@tilemlaw.com About MJC America MJC America, Ltd., doing business as Soleus Air System -- http://www.soleusair.com/-- which sells Soleus-branded air conditioners and heaters in the U.S., filed for Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No. 13-39097) in Los Angeles on Dec. 10, 2013. The Debtor selected Law Offices of David A. Tilem ("TILEM") as its general bankruptcy counsel. Winston & Strawn LLP serves as special litigation counsel. MJC disclosed $14.0 million in total assets and $15.9 million in liabilities in its schedules. Accounts receivable of $9.22 million and inventory of $4.12 million comprise most of the assets. East West Bank has a scheduled secured claim of $2.1 million on a line of credit, and Hong Kong Gree Electric Appliances Sales, Ltd., is owed $4.07 million, but only $288,000 is secured. MOBILESMITH INC: Shlomo Elia Quits as Director ---------------------------------------------- Mr. Shlomo Elia notified Mobilesmith, Inc.'s board of directors that he would resign from the Board effective Dec. 31, 2014, in order to pursue other business interests and not as the result of any disagreement with the Company, according to a regulatory filing with the U.S. Securities and Exchange Commission. Mr. Elia has been a member of the Board since November 2006. About MobileSmith Inc. MobileSmith, Inc. (formerly, Smart Online, Inc.) was incorporated in the State of Delaware in 1993. The Company changed its name to MobileSmith, Inc., effective July 1, 2013. The Company develops and markets software products and services tailored to users of mobile devices. The Company's flagship product is The MobileSmithTM Platform. The MobileSmithTM Platform is an innovative, patents pending mobile app development platform that enables organizations to rapidly create, deploy, and manage custom, native smartphone apps deliverable across iOS and Android mobile platforms. In its report on the consolidated financial statements for the year ended Dec. 31, 2013, Cherry Bekaert LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has suffered recurring losses from operations and has a working capital deficiency as of Dec. 31, 2013. The Company reported a net loss of $27.53 million on $339,039 of total revenues in 2013, compared with a net loss of $4.4 million on $147,468 of total revenues in 2012. The Company's balance sheet at Sept. 30, 2014, showed $1.48 million in total assets, $31.23 million in total liabilities and a $29.75 million total stockholders' deficit. MOMENTIVE PERFORMANCE: S&P Assigns 'B-' CCR; Outlook Stable ----------------------------------------------------------- Standard & Poor's Ratings Services assigned a 'B-' corporate credit rating to Momentive Performance Materials Inc. (MPM). The outlook is stable. At the same time, S&P assigned a 'B' issue rating and '2' recovery rating to the company's $1.1 billion 3.88% first-priority senior secured notes due 2021. In addition, S&P assigned a 'B-' issue rating and '4' recovery rating to the company's $250 million 4.69% second-priority senior secured notes due 2022. "The ratings reflect what we regard as MPM's 'vulnerable' business risk profile and 'highly leveraged' financial risk profile," said Standard & Poor's credit analyst Paul Kurias. MPM is primarily a manufacturer of silicones that are used in a wide array of end markets. It also produces quartz that is used primarily in the production of semiconductors, but also in lighting and industrial ceramics. S&P regards the company's management and governance as weak based in part on the very aggressive financial policies of the financial sponsor (which remains the largest owner post-emergence). In addition, the company's strategy was historically inconsistent with its capabilities and marketplace conditions. If the company demonstrates a track-record of strategic improvement under new leadership, S&P could review its assessment. S&P expects liquidity to be and remain "adequate," with sources exceeding uses by more than 1.2x and sources minus uses remaining positive even if EBITDA is 15% less than S&P expects. The stable outlook indicates S&P's expectation of a modest revenue increase during the next few years as silicone volume growth is somewhat offset by continued competitive pricing due to industry oversupply, and quartz market conditions do not strengthen significantly. S&P assumes there will be some operational restructuring in each of the next two years, and S&P believes total adjusted debt to EBITDA will remain above or at 6x through 2016. S&P believes capital spending will increase somewhat in future years, but it expects the company to use internally generated funds to finance it. As a result, S&P expects liquidity to remain "adequate." S&P's could lower the ratings if, contrary to its expectations, liquidity is "less than adequate." This could result from deteriorating operating performance, greater-than-expected operational restructuring or capital spending, or payments associated with litigation or tax matters. Factors that could contribute to weaker operating performance include termination or substantial revision of the shared services agreement with MSC, even more competitive pricing actions on the part of competitors, a sharp spike in raw material costs, or a meaningful reduction in or loss of business with key customers due to the bankruptcy. Although S&P does not expect to raise the ratings within the next year, it could consider a modest upgrade if the company develops a successful operating track record and generates positive free operating cash flow post-emergence, adjusted debt to EBITDA appears poised to drop and remain below 6x, and financial policies support the maintenance of this leverage level. MONROE HOSPITAL: Close to Hiring Business Dev't Director, CEO ------------------------------------------------------------- Jim Summersett, Monroe Hospital, LLC's interim CEO, said that the hospital is close to hiring a business development director, hopes to recruit new physicians now that the hospital has emerged from the bankruptcy process, and hire a permanent CEO, Dann Denny at The Herald-Times reports. According to The Herald-Times, the hospital can stop its flow of red ink by improving its billing practices. The Herald-Times quoted Mr. Summersett as saying, "Financially, we work very hard on the revenue side -- getting paid for what we do -- and that starts with the documentation of the patient's condition put into the patient's record by the attending physician. Prime has made a science out of understanding how documentation translates to coding and how coding translates to reimbursements -- with the intention of getting paid for the work we do." New owner Prime Healthcare Services has an entire department that oversees the billing practices of the 30 hospitals it owns and operates in 10 states, The Herald-Times states, citing Mr. Summersett. Prime Healthcare, according to The Herald-Times, has hired a "clinical documentation specialist" to work with the hospital's attending physicians starting January 2015, helping them with their documentation and making sure patients admitted to the emergency department who should then be admitted to the hospital are indeed admitted. The Herald-Times relates that Monroe Hospital has shut down two of its three primary care clinics in Bloomfield and on Sare Road, which resulted in a handful of practitioners being laid off. The report says that since Prime Healthcare took over the hospital, it has cut the hospital's staff by about 25 people. "We are trying to consolidate our overhead by putting all our (clinic) operations, for the most part, at our Landmark Avenue facility. We're working to figure out what that medical group will look like in the end," The Herald-Times quoted Mr. Summersett as saying. About Monroe Hospital Monroe Hospital, LLC, since 2006, has operated a 32 licensed bed private acute care medical surgical hospital in Bloomington, Indiana. It leases the land on which the hospital is located from MPT Bloomington, LLC. Monroe Hospital, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Ind. Case No. 14-07417) in Indianapolis, Indiana, on Aug. 8, 2014. Joseph Roche signed the petition as president and chief executive officer. In its schedules, the Debtor disclosed $14,327,739 in total assets and $136,386,925 in liabilities. The case is assigned to Judge James M. Carr. The Debtor is represented by attorneys at Bingham Greenebaum Doll LLP. Upshot Services LLC acts as the Debtor's noticing, claims and balloting agent. MUD KING: Court Extends Exclusive Plan Solicitation Period ---------------------------------------------------------- The Hon. Karen K. Brown of the U.S. Bankruptcy Court for the Southern District of Texas extended the exclusive period of Mud King Products Inc. in which it may solicit and obtain acceptances of its Chapter 11 plan for a period of 45 days after the continued hearing on approval of the Debtor's disclosure statement. The hearing to approve the Debtor's disclosure statement, as may be amended, will be held on Jan. 26, 2015, at 10:00 a.m. in Courtroom #403, 515 Rusk Avenue in Houston, Texas 77002. The December 8 hearing was cancelled. About Mud King Products Mud King Products, Inc., filed a Chapter 11 petition (Bank. S.D. Tex. Case No. 13-32101) on April 5, 2013. The petition was signed by Erich Mundinger as vice president. The Debtor disclosed $18,959,158 in assets and $3,351,216 in liabilities as of the Chapter 11 filing. Annie E Catmull, Esq., Melissa Anne Haselden, Esq., Mazelle Sara Krasoff, Esq., and Edward L Rothberg, Esq., at Hoover Slovacek, LLP, represent the Debtor in its restructuring effort. Judge Karen K. Brown presides over the case. The U.S. Trustee was unable to appoint an official committee of unsecured creditor. * * * On July 1, 2014, the Debtor filed its Chapter 11 Plan and Disclosure Statement. The Plan provides that Allowed General Unsecured Claims of greater than $50,000 will receive a pro rata share of equal quarterly payments for a period of twenty quarters until such claims are paid in full, with simple interest at the rate of 5% per annum accruing from the Effective Date. The Court has yet to approve the Disclosure Statement describing the Plan. NEIMAN MARCUS: Bank Debt Trades at 3% Off ----------------------------------------- Participations in a syndicated loan under which Neiman Marcus Group Inc is a borrower traded in the secondary market at 97.72 cents-on-the-dollar during the week ended Friday, December 27, 2014 according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 1.59 percentage points from the previous week, The Journal relates. Neiman Marcus Group Inc pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 16, 2020, and carries Moody's B2 rating. The loan is one of the biggest gainers and losers among 212 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. NEWALTA CORP: Moody's Affirms Ba3 Corporate Family Rating --------------------------------------------------------- Moody's Investor's Services affirmed Newalta's Ba3 Corporate Family Rating, Ba3-PD Probability of Default Rating and B1 senior unsecured notes rating. Moody's also raised Newalta's Speculative Grade Liquidity Rating to SGL-2 from SGL-3.The outlook remains stable. "The affirmation reflects Newalta's low leverage following the announced sale of its Industrial Division and increasing growth in its Heavy Oil segment," said Paresh Chari, Moody's Analyst, "As well, Newalta's liquidity improves, which will help it weather an industry downturn." Upgrades: Issuer: Newalta Corporation Speculative Grade Liquidity Rating, Raised to SGL-2 from SGL-3 Outlook Actions: Outlook, Remains Stable Affirmations: Probability of Default Rating, Affirmed Ba3-PD Corporate Family Rating, Affirmed Ba3 Senior Unsecured Regular Bond/Debenture Apr 1, 2021, Affirmed B1(LGD4) Senior Unsecured Regular Bond/Debenture Nov 14, 2019, Affirmed B1(LGD4) Summary Rating Rationale Newalta Corporation's Ba3 CFR reflects its modest size within the broader oilfield services and waste management industries and susceptibility of cash flows to volatile oil & gas drilling activity. However, the rating also considers that only a third of Newalta's EBITDA is tied to drilling activity with a significant amount of EBITDA tied to reducing waste from oil sands production. As well, Newalta has regulatory permits and technological expertise that provide competitive advantages, a long-standing customer base and favorable leverage. The SGL-2 Speculative Grade Liquidity rating reflects good liquidity pro forma for the Industrial Division sale. Newalta will have about C$100 million of cash and C$260 million available (after C$20 million in letters of credit) under its C$280 million secured revolver due July 2016. Moody's expect Newalta's heavy growth capital spending to result in negative free cash flow of about C$120 million from September 30, 2014 to December 31, 2015, which can be funded with cash and its revolver. Moody's expect Newalta will remain well in compliance with its three financial covenants through 2015. Newalta has no refinancing risk over the next 12 to 18 months. Alternate liquidity is somewhat limited by the fact that all of the assets are pledged to the secured revolving credit facility lenders. In accordance with Moody's Loss Given Default (LGD) Methodology, both the C$125 million and C$150 million senior unsecured notes are rated B1, which is one notch below the Ba3 Corporate Family Rating due to the prior-ranking secured credit facility (C$280 million authorized). The stable outlook reflects the company's regulatory permits and Moody's expectation that leverage will be maintained below 3x. The rating could be upgraded if Newalta were to grow its asset base towards US$3 billion from US$1.1 billion pro forma for the industrial division sale without significantly degrading its current leverage. The rating could be downgraded if adjusted debt to EBITDA appears likely to remain above 3x, or if critical regulatory permits were lost. Newalta is a Calgary, Alberta-based oilfield waste management service provider. The principal methodology used in these ratings was Global Oilfield Services Industry Rating Methodology published in December 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. NII HOLDINGS: Amends Schedules of Assets and Liabilities -------------------------------------------------------- NII Holdings, Inc., filed another amended schedules of assets and liabilities in the U.S. Bankruptcy Court for the Southern District of New York, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $1,216,071,340 C. Property Claimed as Exempt D. Creditors Holding Secured Claims E. Creditors Holding Unsecured Priority Claims $172,270 F. Creditors Holding Unsecured Non-Priority Claims $3,068,103,749 -------------- -------------- Total $1,216,071,340 $3,068,276,020 As reported in the Troubled Company Reporter on Nov. 13, 2014, the Debtor reported $3,068,103,749 in liabilities. A full-text copy of the Debtor's amended schedules is available for free at http://is.gd/BGjqUN About NII Holdings NII Holdings Inc. through its subsidiaries provides wireless communication services for businesses and consumers in Brazil, Mexico and Argentina. NII Holdings has the exclusive right to use the Nextel brand in its markets pursuant to a trademark license agreement with Sprint Corporation and offers unique push-to-talk ("PTT") services associated with the Nextel brand in Latin America. NII Holdings' shares of common stock, par value $0.001, are publicly traded under the symbol NIHD on the NASDAQ Global Select Market. NII Holdings and its affiliated debtors sought bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-12611) in Manhattan on Sept. 15, 2014. The Debtors' cases are jointly administered and are assigned to Judge Shelley C. Chapman. The Debtors have tapped Jones Day as counsel and Prime Clerk LLC as claims and noticing agent. NII Holdings disclosed $1,216,071,340 in assets and $3,068,103,749 in liabilities as of the Chapter 11 filing. The U.S. Trustee for Region 2 on Sept. 29 appointed five creditors of NII Holdings to serve on the official committee of unsecured creditors. NRG ENERGY: Bank Debt Trades at 2% Off -------------------------------------- Participations in a syndicated loan under which NRG Energy is a borrower traded in the secondary market at 97.83 cents-on-the- dollar during the week ended Friday, December 27, 2014 according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 1.43 percentage points from the previous week, The Journal relates. NRG Energy pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on July 1, 2018, and carries Moody's Baa3 rating and Standard & Poor's BB+ rating. The loan is one of the biggest gainers and losers among 212 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. OCWEN FINANCIAL: Fitch Lowers Rating to 'B-' on Regulatory Deal --------------------------------------------------------------- Fitch Ratings has downgraded the ratings of Ocwen Financial Corporation (OCN) and its wholly-owned primary operating subsidiary, Ocwen Loan Servicing, LLC (OLS) to 'B-' from 'B'. The downgrade follows the announcement of the company's settlement with the New York Department of Financial Services (NY DFS) and the accompanying departure of its Executive Chairman. The ratings have also been removed from Rating Watch Negative and assigned a Negative Rating Outlook. KEY RATING DRIVERS - ISSUER DEFAULT RATINGS, SECURED AND UNSECURED DEBT The downgrade of the long-term Issuer Default Ratings (IDRs) reflects increased strategic uncertainty following the announced departure of the firm's Executive Chairman, combined with an expectation of increased earnings pressure as a result of heightened compliance standards. The removal of the Rating Watch Negative reflects the decrease of near-term risks associated with potential outsized fines and/or loss of servicing contracts. In place of these near-term concerns, however, are longer-term challenges in terms of strategic direction, leadership and financial performance under a heightened operational and governance framework, which together support the assignment of a Negative Rating Outlook. The terms of yesterday's settlement include both monetary and non- monetary provisions. The $150 million settlement, including a civil penalty of $100 million and restitution of $50 million will be largely covered by accruals made by the company for legal and regulatory matters during the third- and fourth-quarters of 2014, along with cash on-hand as of Sept. 30, 2014. Fitch calculates that leverage, as measured by total debt to tangible equity, was 3.69x on a stand-alone basis and 5.28x on a consolidated-affiliate basis, as of Sept. 30, 2014, which Fitch views to be consistent with the current rating category. Beyond the immediate financial impact, however, Fitch expects that the costs to meet the heightened compliance and governance standards will create a drag on operating margins. In addition, without the ability to continue to utilize affiliate companies for certain activities, additional operating costs may fall to OCN to support. Fitch views William Erbey's announced resignation from OCN and its related entities as a key driver for the downgrade and Negative Outlook, as his departure introduces strategic uncertainty with respect to OCN and its affiliates. Erbey will step down as an officer and director of OCN, as well as from the boards of OCN's related companies as of Jan. 16, 2015. From a non-monetary perspective, OCN is expected to seek to strengthen its corporate governance and will agree to not share any common officers or employees with any related parties and will not share risk, internal audit or vendor oversight functions with any related party. Any OCN employee, officer, or director owning more than $200,000 equity in any related party must be recused from negotiating or voting to approve a transaction with the related party, if the transaction size exceeds $120,000 in revenue or expense. Fitch believes that the appointment of an independent operations monitor for a minimum of two years to recommend and oversee the implementation of a more robust operational and corporate governance framework could stabilize OCN's governance profile. The monitor is expected to add two independent directors to OCN's board and consult with them to identify operational issues and to ensure that they are addressed. OCN may acquire mortgage servicing rights upon meeting certain benchmarks specified by the monitor related to its onboarding, including developing sufficient risk controls and a written plan to address potential risks and deficiencies in the onboarding process. The downgrade of OLS' senior secured term loan to 'B-/RR4' from 'B/RR4' maintains the equalization of the senior secured term loan rating with the IDRs assigned to OCN and OLS and continues to reflect average recovery prospects in a stressed scenario based upon collateral coverage for the term loan. The term loan is secured by a first priority interest in all unencumbered assets of the company and a pledge of the capital stock of all subsidiaries. The downgrade of OCN's senior unsecured notes to 'CC/RR6' from 'CCC/RR6' maintains the two notch differential between the senior unsecured notes and the IDR assigned to OCN and reflects the company's predominately secured funding profile and the modest level of unencumbered balance sheet assets available to support the unsecured noteholders in a stressed scenario. RATING SENSITIVITIES - OCN IDR AND UNSECURED DEBT The ratings could be further downgraded as a result of sustained strategic and management uncertainty or a materially modified strategic direction for the firm, if it proves to be adverse to creditors. Additional material fines and penalties, further restrictions on business activities, or termination of servicing duties could result in negative rating action, as could a material deterioration in financial performance resulting from a reduction in operating cash flow generation and/or available liquidity, a sustained increase in balance sheet leverage on a standalone or consolidated-affiliate basis, and/or aggressive capital management. Fitch does not envision positive rating momentum for OCN at this time. The Rating Outlook could be revised to Stable if OCN can successfully comply with the independent monitor and the consent order, address current strategic and leadership uncertainty and strengthen its overall operational and corporate governance framework and/or its financial position. Revision of the Rating Outlook is dependent on greater clarity with respect to OCN's organization structure, strategic direction and leadership, following the announced departure of its Executive Chairman. In addition, OCN's ability to navigate continued regulatory scrutiny and address and meet the requirements under the consent order will also influence the resolution of the Outlook. The ratings of the unsecured notes will be sensitive to any changes in OCN's long-term IDR as well as to changes in OCN's funding profile, the mix of secured versus unsecured funding, and unencumbered asset coverage. A material increase in unsecured funding combined with a material improvement in unencumbered asset coverage could reduce the notching between the IDR and the unsecured notes and/or improve the RR. RATING SENSITIVITIES - OLS IDR AND SECURED DEBT OLS is a primary operating company, and wholly-owned subsidiary of OCN. The ratings of OLS are aligned with those of OCN because of the unconditional guaranty provided by OCN and its guarantor subsidiaries. Therefore, the ratings for OLS are sensitive to the same factors that might drive a change in OCN's IDR. The ratings of the senior secured term loan are sensitive to changes OCN and OLS's IDRs as well as changes in collateral values and advances rates under the secured borrowing facilities, which ultimately impact the level of available asset coverage. Fitch originally placed the ratings of OCN and OLS on Rating Watch Negative on Oct. 24, 2014, following material issues raised by the NY DFS regarding OCN's servicing practices. More recently, the Office of Mortgage Settlement Oversight (OMSO) also identified two issues in a report on the servicer's compliance with the National Mortgage Settlement (NMS) related to processes in OCN's internal review group and the letter dating issue raised by the NY DFS in October. Fitch has removed from Rating Watch Negative and downgraded thew3 ratings: Ocwen Financial Corporation -- Long-term IDR to 'B-' from 'B'; -- Senior unsecured notes to 'CC/RR6' from 'CCC/RR6'. Ocwen Loan Servicing, LLC -- Long-term IDR to 'B-' from 'B'; -- Senior secured term loan to 'B-/RR4' from 'B/RR4'. Fitch has removed from Rating Watch Negative and affirmed these rating: Ocwen Financial Corporation -- Short-term IDR at 'B'. The Rating Outlook is Negative. OMNICARE INC: Anti-kickback Lawsuit No Impact on Moody's Ba3 CFR ---------------------------------------------------------------- Moody's Investors Service said that the Department of Justice's (DOJ) kickback lawsuit against Omnicare Inc. is credit negative as it raises legal and regulatory risks and increases uncertainties around Omnicare's future financial and liquidity position. However, there is no immediate impact on Omnicare's ratings, including its Ba3 Corporate Family Rating, and stable rating outlook. Omnicare, Inc., headquartered in Cincinnati, Ohio, is the leading provider of institutional pharmacy services to the long term care sector (LTC), mainly serving skilled nursing facilities (SNFs) and assisted living facilities. The company also has a specialty pharmacy business that provides specialty pharmacy and commercialization services for the biopharmaceutical industry. During the twelve months ended September 30, 2014, Omnicare's revenues approximated $6.3 billion. The principal methodology used in these ratings was the 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. ONE SOURCE: Seeks Jan. 15 Extension of Schedules Filing ------------------------------------------------------- One Source Industrial Holdings, LLC, asks the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, to extend through and including Jan. 15, 2015, its deadline for filing its schedules of assets and liabilities and statements of financial affairs. According to the Debtor, filing of the Schedules and Statements by Jan. 15 will allow sufficient time for parties-in-interest to review those documents in advance of the Section 341 meeting of creditors on Feb. 6, 2015. About One Source One Source Industrial Holdings, LLC, sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 14-44996) in Ft. Worth, Texas, on Dec. 16, 2014. The case is assigned to Judge Russell F. Nelms. The Debtor estimated $10 million to $50 million in assets and debt. The Debtor is represented by J. Robert Forshey, Esq., and Suzanne K. Rosen, Esq., at Forshey & Prostok, LLP, in Ft. Worth, Texas, serves as counsel to the Debtor. The meeting of creditors under 11 U.S.C. Sec. 341(a) is slated for Feb. 6, 2015. The deadline for filing claims is slated for May 7, 2015. OVERLAND PARK: S&P Affirms 'BB+' on $45.625MM Revenue Bonds ----------------------------------------------------------- Standard & Poor's Ratings Services withdrew its '3' recovery ratings from Overland Park convention Center Hotel's $45.625 million first-tier refunding revenue bonds series 2007A. At the same time, S&P affirmed its 'BB+' issue credit rating on the bonds. The outlook is stable. "The withdrawal of the recovery rating on Overland Park Convention Center Hotel's issue credit rating reflects the revision in our project finance criteria," said Standard & Poor's credit analyst Jayne Ross. S&P's 'BB+' rating reflects its view that the hotel project benefits from its location near the convention center, an experienced hotel operator, the additional security of the transient guest tax (TGT) revenue, its liquidity, and the recent completion of the hotel and meeting room renovation. Partially offsetting these factors are the hotel's reliance on local business, transient guests, and the highly competitive and cyclical hospitality market. The 412-room, full-service hotel has been operating under the Sheraton brand since it opened in 2002. It is in Overland Park, Kan., an affluent city about 15 miles south of downtown Kansas City and is connected by a covered walkway to the Overland Park Convention Center. The project has two series of debt that it issued in 2007 that refinanced the 2000 bond issuance. The first- tier series 2007A bonds are backed by hotel net revenue and revenue from a 1.5% transient occupancy tax, while the subordinated second-tier series 2007B bonds are backed by residual hotel revenue and revenue from a 4.5% transient occupancy tax. Both series of bonds are fully amortizing and mature in 2032. This report addresses the rating on the first-tier bonds only as Standard & Poor's U.S. Public Finance Group rates the second-tier bonds. The hotel's performance continued to improve in 2014, benefiting in part from increased group business, good transient business, an active sports market, which has resulted in more visitors to the soccer and softball complexes; the completion of the hotel's public spaces and meeting room renovation; and the general pick-up in the local economy. For the 12 months ended Oct. 31, 2014, revenue per available room (RevPAR) was $89.27, up 6.4% from the prior year driven mainly by a 1.4% increase in occupancy and a 5.1% increase in average daily rate (ADR). The hotel's performance was well ahead of the competitive set's RevPAR of $76.46. The stable outlook reflects S&P's belief that the project will maintain its current operating and financial performance and cash flow stability. The project's credit measures map to the 'b' category in the base case. As result, S&P's guidance for upgrade and downgrade map to credit measures established for his rating level. S&P could raise the rating if the favorable market trends and occupancy are sustainable, resulting in the project achieving and maintaining a debt service coverage ratio (DSCR) above 2.5x throughout a hospitality cycle. In addition, an upgrade could occur if S&P revised its view of the hotel's business risk (e.g., lower its current OPBA of '9') based on long-term sustained improvement in the market through a hospitality cycle, in which case a sustained DSCR of at least 1.7x, could lead to an upgrade. The project benefits from a one-notch uplift for liquidity reserves that account for more than 10% of outstanding project debt, S&P could lower the rating if this changes. S&P's DSCR guidance suggests that a project maintain at least 1x in the base case to sustain a 'b' category rating. In this case, however, S&P would expect--given Overland Park's higher 'bb+' rating--the project maintain at least 1.2x to 1.3x coverage to avoid a downgrade. PETRON ENERGY: Shareholders Elected Two Directors ------------------------------------------------- At the annual meeting of shareholders of Petron Energy II, Inc., held on Dec. 19, 2014, the shareholders: (1) elected Floyd Smith and David Knepper to the Board of Directors, and will serve as directors until the Company's next annual meeting or until their successors are elected and qualified; (2) ratified the appointment of Floyd Smith as the Company's CEO, president, secretary and treasurer; and (3) ratified the appointment of KWCO PC as the Company's independent registered public accounting firm. On Dec. 24, 2014, Petron Energy effectuated a reverse split of its issued common shares whereby every One Thousand Five Hundred (1,500) pre-split shares of common stock were exchanged for one (1) post-split share of the Company's common stock. As a result, the total issued shares of common stock of the Company decreased from 802,851,856 shares prior to the Reverse Split to 535,235 shares following the Reverse Split. FINRA confirmed approval of the Reverse Split on Dec. 23, 2014, and the Reverse Split became effective on Dec. 24, 2014. The Reverse Split shares are payable upon surrender of certificates to the Company's transfer agent. About Petron Energy Dallas-based Petron Energy II, Inc., is engaged primarily in the acquisition, development, production, exploration for and the sale of oil, gas and gas liquids in the United States. As of Dec. 31, 2011, the Company is operating in the states of Texas and Oklahoma. In addition, the Company operates two gas gathering systems located in Tulsa, Wagoner, Rogers and Mayes counties of Oklahoma. The pipeline consists of approximately 132 miles of steel and poly pipe, a gas processing plant and other ancillary equipment. The Company sells its oil and gas products primarily to a domestic pipeline and to another oil company. Petron Energy reported a net loss of $4.30 million in 2013 following a net loss of $8.32 million in 2012. As of Sept. 30, 2014, the Company had $3.74 million in total assets, $13.83 million in total liabilities and a $10.09 million total stockholders' deficit. KWCO, PC, in Odessa, TX, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's significant operating losses since inception raise substantial doubt about its ability to continue as a going concern. PETTERS COMPANY: Trustee Can Use Cash Collateral Until Dec. 31 -------------------------------------------------------------- The Hon. Gregory F. Kishel of the U.S. Bankruptcy Court for the District of Minnesota authorized Douglas A. Kelley, the duly appointed Chapter 11 trustee for Petters Company, Inc., et al., to use the cash collateral by the PBE Chapter 7 Trustee, through and including Dec. 31, 2015. On the Petition Date, Petters Worldwide had virtually no available cash funds, and has since generated funds mostly from the disposition of various assets and recover on claims in related bankruptcy proceedings. As adequate protection from any diminution in value of the lender's collateral, the trustee will grant replacement liens in all postpetition assets of Petters Worldwide, including avoidance actions and other rights to payment arising under Chapter 5 of the Bankruptcy Code. About Petters Company Based in Minnetonka, Minn., Petters Group Worldwide LLC is a collection of some 20 companies, most of which make and market consumer products. It also works with existing brands through licensing agreements to further extend those brands into new product lines and markets. Holdings include Fingerhut (consumer products via its catalog and Web site), SoniqCast (maker of portable, WiFi MP3 devices), leading instant film and camera company Polaroid (purchased for $426 million in 2005), Sun Country Airlines (acquired in 2006), and Enable Holdings (online marketplace and auction for consumers and manufacturers' overstock inventory). Founder and chairman Tom Petters formed the company in 1988. Petters Company, Inc., is the financing and capital-raising unit of Petters Group Worldwide. Thomas Petters, the founder and former CEO of Petters Group, has been indicted and a criminal proceeding against him is proceeding in the U.S. District Court for the District of Minnesota. Petters Company, Petters Group Worldwide and eight other affiliates filed separate petitions for Chapter 11 protection (Bankr. D. Minn. Lead Case No. 08-45257) on Oct. 11, 2008. In its petition, Petters Company estimated its debts at $500 million and $1 billion. Parent Petters Group Worldwide estimated its debts at not more than $50,000. Petters Aviation, LLC, and affiliates MN Airlines, LLC, doing business as Sun Country Airlines, Inc., and MN Airline Holdings, Inc., filed separate petitions for Chapter 11 bankruptcy protection (Bankr. D. Minn. Case Nos. 08-45136, 08-35197 and 08-35198) on Oct. 6, 2008. Petters Aviation is a wholly owned unit of Thomas Petters Inc. and owner of MN Airline Holdings, Sun Country's parent company. The Official Committee of Unsecured Creditors is represented by: David E. Runck, Esq., Lorie A. Klein, Esq., at FAFINSKI MARK & JOHNSON, P.A. Trustee Douglas A. Kelley is represented by James A. Lodoen, Esq., Mark D. Larsen, Esq., Kirstin D. Kanski, Esq., Adam C. Ballinger, Esq., at Lindquist & Vennum LLP. PLASTIC2OIL INC: Final Hearing in Class Action Settlement Set ------------------------------------------------------------- As previously reported, on Aug. 8, 2013, Plastic2Oil, Inc. (formerly known as JBI, Inc.) entered into a stipulation agreement in potential settlement of the previously reported class action lawsuit filed by certain stockholders of the Company against the Company and Messrs. John Bordynuik and Ronald Baldwin (both former officers of the Company) on behalf of a settlement class consisting of purchasers of the Company's common stock during the period from Aug. 28, 2009, through Jan. 4, 2012. On Dec. 18, 2014, the Court filed and entered its Order Preliminarily Approving Settlement and Providing for Notice of Proposed Settlement. In its Preliminary Approval Order the Court preliminarily approved the settlement, and scheduled a hearing on April 27, 2015, at which the Court will be asked to finally approve the settlement of the litigation and to enter judgment accordingly. Any actual settlement is subject to risks and uncertainties including, among other things, objections from class members to the terms of the settlement and failure of the Court to approve the settlement. Plastic2Oil, Inc., formerly JBI Inc., is a North American fuel company that transforms unsorted, unwashed waste plastic into ultra-clean, ultra-low sulphur fuel without the need for refinement. The Company's Plastic2Oil (P2O) is a process designed to provide immediate economic benefit for industry, communities and government organizations with waste plastic recycling challenges. It is also focused on the creation of green employment opportunities and a reduction in the cost of plastic recycling programs for municipalities and business. The Company's fuel products include No. 6 Fuel, No. 2 Fuel (diesel, petroleum distillate), Naphtha, Petcoke (carbon black) and Off-Gases. No. 6 Fuel is heavy fuel used in industrial boilers and ships. No. 2 Fuel is a mid-range fuel known as furnace oil or diesel. Naphtha is a light fuel that is used as a cut feedstock for ethanol or as white gasoline in high and regular grade road certified fuels. As of Sept. 30, 2014, the Company had $8.19 million in total assets, $6.99 million in total liabilities and $1.19 million in total stockholders' equity. PMC MARKETING: Court Dismissed Adversary Suit vs. Villa Blanca -------------------------------------------------------------- Judge Brian K. Tester of the U.S. Bankruptcy Court for the District of Puerto Rico granted the Defendant's motion for summary judgment in the adversary proceeding captioned Noreen Wiscovitch Rentas, Chapter 7 Trustee v. Villa Blanca VB Plaza LLC, Case No. 12-00071, filed in the bankruptcy case of PMC Marketing Corp. In the summary judgment motion, the Defendant argues that there are no genuine issues as to any material facts and that, therefore, the moving party is entitled to judgment as a matter of law. The Defendant alleges that the Plaintiff had the duty to present a fair, accurate and complete record to which the Plaintiff has the initial responsibility of informing the Court the basis for its motion. The Defendant points to the Plaintiff's complaint, which indicated that there was little information regarding transfers because of the Debtor's failure to provide documentation. In opposition, the Plaintiff points out that it does not have to conclusively resolve the disputed issue at hand in order to prevail in a summary judgment motion. Therefore, it only needs to show that evidence supporting the dispute is such that a judge or jury is required to resolve the differing versions at trial. The Plaintiff established that $20,915 is the correct amount as demonstrated by the Debtor's bank statements as the Debtor made two monthly payments of $10,457 totaling $20,915 in the months of January and February of 2009 during the preference period. Accordingly, the Court opined that there are no genuine issues of material fact and, thus, a trial is unnecessary. With no genuine issues of material facts at hand, the Court said it will not address whether $10,457 or $20,915 could be avoided by the Trustee since the Defendant has established the standard of ordinary course of business exception. Judge Tester ruled that the Plaintiff failed to present sufficient evidence to demonstrate that there is a genuine issue of fact in dispute for a trial, or that summary judgment should be granted in her favor. Hence, Judge Tester granted the Defendant's Motion for Summary Judgment, and the adversary case is dismissed. A full-text copy of the December 2, 2014 Opinion and Order is available at http://bit.ly/1AQiaa5from Leagle.com. PMC Marketing Corp. filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 09-02048) on March 18, 2009. The case was converted into a Chapter 7 proceeding on May 19, 2010. On May 20, 2010, Noreen Wiscovitch-Rentas was appointed the Chapter 7 trustee. PORTER BANCORP: Has Until June 15 to Regain NASDAQ Compliance ------------------------------------------------------------- Porter Bancorp, Inc., received a letter from the Listing Qualifications Department of The NASDAQ Stock Market, notifying it that the Company's publicly held common shares have not regained compliance with the minimum $1 bid price per share requirement following an initial 180 day grace period, according to a regulatory filing with the U.S. Securities and Exchange Commission. Following the Company's submission of written notice of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary, the Staff determined that the Company is eligible for an additional 180 calendar day period, or until June 15, 2015, to regain compliance. If at any time during this additional time period the closing bid price of the Company's security is at least $1 per share for a minimum of 10 consecutive business days, the Staff will provide written notification to the Company that it complies with the minimum bid price requirement. If the Company does not regain compliance with the minimum bid price requirement by June 15, 2015, the Staff will provide written notification to the Company that its common stock is subject to delisting. At that time, the Company may appeal the Staff's delisting determination to a Hearings Panel. The Company would remain listed pending the Panel's decision. The Company said there can be no assurance that, if the Company does appeal the delisting determination by the Staff to the Panel, such appeal would be successful. About Porter Bancorp Porter Bancorp, Inc., is a bank holding company headquartered in Louisville, Kentucky. Through its wholly-owned subsidiary PBI Bank, the Company operates 18 full-service banking offices in 12 counties in Kentucky. Porter Bancorp incurred a net loss attributable to common shareholders of $3.39 million in 2013, a net loss attributable to common shareholders of $33.4 million in 2012 and a net loss attributable to common shareholders of $105 million in 2011. The Company's balance sheet at Sept. 30, 2014, showed $1.03 billion in total assets, $1 billion in total liabilities, and $29.3 million in total stockholders' equity. Crowe Horwath, LLP, in Louisville, Kentucky, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred substantial losses in 2013, 2012 and 2011, largely as a result of asset impairments. In addition, the Company's bank subsidiary is not in compliance with a regulatory enforcement order issued by its primary federal regulator requiring, among other things, increased minimum regulatory capital ratios. Additional losses or the continued inability to comply with the regulatory enforcement order may result in additional adverse regulatory action. These events raise substantial doubt about the Company's ability to continue as a going concern. PRIME TIME INT'L: Plan Filing Exclusivity Extended to March 16 -------------------------------------------------------------- Judge Madeleine C. Wanslee entered an order granting Prime Time International Company's third motion for an extension of its exclusive period to propose a plan. The judge extended until March 16, 2015, the Debtors' exclusive period to file a plan, and until May 18, 2015, the Debtors' exclusive period to solicit acceptances of that plan. About Prime Time International Prime Time International Company, formerly known as Single Stick Inc., manufactures and distributes cigarettes and little cigars. PTIC has two wholly-owned subsidiaries: USA Tobacco, which distributes PTIC's products, and 21st Century Brands, LLC, which distributes non-tobacco consumer products. Annual sales are $40 million and the company's products are in 100,000 convenience stores in North America. The company has direct accounts with each of the top 25 largest convenience store distributors in the United States. Prime Time and its two subsidiaries sought Chapter 11 bankruptcy protection (Bankr. D. Ariz. Lead Case No. 14-03518) in Phoenix on March 15, 2014. The Debtors have tapped Greenberg Traurig as attorneys, Odyssey Capital Group, LLC, as financial advisors, and Schian Walker, P.L.C., as conflicts counsel. The Debtors disclosed $26.78 million in total assets and $23.37 million in total liabilities as of Jan. 31, 2014. PROTECTION SYSTEMS: Former Litigation Counsel's Claim Disallowed ---------------------------------------------------------------- Bankruptcy Judge J. Craig Whitley sustained the objection by David E. Taylor to the $25,145.00 proof of claim filed by McNaughton & Associates, PLLC, the former litigation counsel of debtor Protection Systems Techonologies, Inc. Taylor, in his capacity as an unsecured creditor, objects to the McNaughton Claim. A copy of Judge Whitley's Dec. 24 Order is available at http://is.gd/Tekt2Jfrom Leagle.com. Formed in 2003, Protection Systems Technologies, Inc., provided goods and services to fire suppression companies. PST was owned by Bryan Futch ("Futch") (34%), Westley Stout, Jr. ("Stout") (33%), and David E. Taylor (33%). Futch served as president, Stout as treasurer, and Taylor as vice president. PST filed a Chapter 11 case (Bankr. W.D. Case No. 13-31778) on August 15, 2013. A consensual plan was negotiated and confirmed on September 14, 2014. RADIAN GUARANTY: Moody's Ba2 IFS Rating on Review for Upgrade ------------------------------------------------------------- Moody's Investors Service has placed on review for upgrade the Ba2 Insurance Financial Strength (IFS) ratings of Radian Guaranty Inc. and Radian Mortgage Assurance Inc. (RMA) as well as the Ba1 IFS rating of Radian Asset Assurance Inc. (Radian Asset). In the same rating action, Moody's also placed on review for upgrade the B3 senior unsecured debt ratings of Radian Group Inc. The rating action also has implications for the various transactions wrapped by Radian Asset as discussed later in this press release. The rating action was prompted by the announcement by Radian Guaranty, a direct subsidiary of Radian Group (NYSE: RDN), that it has entered into a Stock Purchase Agreement to sell 100% of the issued and outstanding shares of Radian Asset, its financial guaranty insurance subsidiary, to Assured Guaranty Corp. (AGC, A3 IFS, negative), a subsidiary of Assured Guaranty Ltd. (NYSE: AGO, senior debt at Baa2, stable) for a purchase price of approximately $810 million. The purchase price is payable in cash consideration on the closing date, which is expected to occur in the first half of 2015, subject to satisfaction of customary closing conditions including regulatory approvals. Assured Guaranty stated that it intends to merge Radian Asset into AGC immediately following the acquisition. Radian expects the transaction to increase Radian Guaranty's Available Assets, required by the Private Mortgage Insurer Eligibility Requirements (PMIERs), by $790 million on consummation of the transaction. Ratings Rationale -- RADIAN GUARANTY, RADIAN MORTGAGE ASSURANCE and RADIAN GROUP The review for upgrade reflects Moody's view that the sale of Radian Asset increases the amount of capital readily accessible to Radian Guaranty, and will strengthen its capital adequacy relative to insured mortgage exposures. In addition, completion of the transaction will meaningfully reduce the shortfall in Radian Guaranty's Available Assets relative to the PMIER Required Assets, an important step towards attaining PMIER compliance and defending against erosion of its franchise due to actual or perceived difficulties in becoming compliant. Additionally, Radian Group's credit profile would strengthen as a result of improvement at its Radian Guaranty subsidiary. Radian Guaranty estimates that it will have a shortfall in PMIER Available Assets of approximately $400 million after taking into consideration the anticipated $790 million in net proceeds from the sale of Radian Asset and unencumbered holding company cash of approximately $770 million that Radian has earmarked for capital contributions to Radian Guaranty. However, Moody's consider there to be competing demands on the holding company cash, which will be required to support repayment of approximately $645 million in senior and convertible debt due in 2017, unless the company is able to refinance or otherwise extend the term of that debt. In addition to waiting for regulatory approval of the transaction, Moody's review will focus on the extent to which the proceeds from the sale of Radian Asset improve Radian Guaranty's overall capital adequacy, and its ability to address the remaining shortfall to PMIER Required Assets. Moody's notes that RMA and Radian Guaranty, although separate legal entities, are evaluated jointly. RMA and Radian Guaranty entered into a cross guaranty agreement in 1999 that remains in place. Under the agreement, if RMA fails to make payment to policyholders, Radian Guaranty will make the payment, and vice versa. The obligations of both parties are unconditional and irrevocable, though any payments are subject to regulatory approval. Moody's added that the following factors could lead to an upgrade: (1) regulatory approval and consummation of the sale of Radian Asset to AGC; (2) additional substantial capital injection into Radian Guaranty; (3) greater clarity about the Radian's ability to attain PMIER compliance. A rating confirmation, or downgrade, could result from: (1) a cancellation of the transaction; (2) Radian's inability to meet PMIER requirements or; (3) a deterioration in Radian Group's ability to meet its debt service requirements over the next few years. Ratings Rationale -- RADIAN ASSET According to Moody's, the sale of Radian Asset to AGC would have a positive impact on its credit profile and IFS rating. Upon completion of the merger with AGC, Radian Asset's policyholders will become policyholders of AGC, and their rights will rank pari passu with existing AGC policyholders. Moody's notes that regulatory approval and consummation of the acquisition and merger with AGC will likely lead to an upgrade of Radian Asset. A cancellation of the planned sale could lead to a rating confirmation or downgrade of Radian Asset. List of Rating Actions The following ratings have been placed on review for upgrade: Radian Group Inc. -- senior unsecured debt at B3, senior unsecured shelf at (P)B3, subordinate shelf at (P)Caa1, preferred shelf at (P)Caa2, preferred non-cumulative shelf at (P)Caa2, senior subordinate shelf at (P)Caa1; Radian Guaranty Inc. -- insurance financial strength rating at Ba2; Radian Mortgage Assurance Inc. -- insurance financial strength rating at Ba2; Radian Asset Assurance Inc. -- insurance financial strength rating at Ba1. Radian Group Inc. is a US-based holding company that owns a mortgage insurance platform comprised of Radian Guaranty, Radian Insurance and Radian Mortgage Assurance, and financial guaranty insurance company Radian Asset (Ba1 IFS rating, negative outlook). The group also has investments in other financial services entities. As of September 30, 2014, Radian Group had approximately $6 billion in total assets and $1.7 billion in shareholder's equity. The principal methodology used in these ratings was Moody's Global Methodology for Rating Mortgage Insurers published in December 2012. Treatment of Wrapped Transactions Moody's ratings on securities that are guaranteed or "wrapped" by a financial guarantor are generally maintained at a level equal to the higher of the following: a) the rating of the guarantor (if rated at the investment grade level); or b) the published underlying rating (and for structured securities, the published or unpublished underlying rating). Moody's approach to rating wrapped transactions is outlined in Moody's methodology "Rating Transactions Based on the Credit Substitution Approach: Letter of Credit-backed, Insured and Guaranteed Debts" (March 2013). As a result of the rating action, the Moody's-rated securities that are guaranteed or "wrapped" by Radian Asset are placed under review for upgrade, except those with A3 and higher published underlying ratings (and for structured finance securities, except those with A3 and higher published or unpublished underlying ratings). The A3 cutoff reflects Moody's opinion that Radian Asset policyholders would rank pari passu with Assured Guaranty Corp.'s (IFS at A3) policyholders should the two entities merge post acquisition. RADIOSHACK CORP: CEO Says Chain Is 'Overstored' ----------------------------------------------- Drew Fitzgerald, writing for The Wall Street Journal, reported that Radioshack Corp.'s chief executive has acknowledged that one of the struggling electronics retailer's problems is shop saturation. According to the Journal, the cost of maintaining and stocking its 4,400 company-owned outlets has helped push the chain to the brink of bankruptcy. The Journal pointed out that for nearly a year, RadioShack has been trying to win consent from creditors, such as Salus Capital LLC, to close as many as 1,100 locations as it copes with plunging sales and deserted stores. About Radioshack Corporation RadioShack (NYSE: RSH) -- http://www.radioshackcorporation.com/-- is a national retailer of innovative mobile technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack's retail network includes more than 4,300 company-operated stores in the United States, 270 company-operated stores in Mexico, and approximately 1,000 dealer and other outlets worldwide. Radioshack reported a net loss of $400.2 million in 2013, a net loss of $139.4 million in 2012, and net income of $72.2 million in 2011. The Company's balance sheet at Aug. 2, 2014, showed $1.14 billion in total assets, $1.21 billion in total liabilities and a $63 million total shareholders' deficit. * * * As reported by the TCR on Sept. 15, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Fort Worth, Texas-based RadioShack Corp. to 'CCC-' from 'CCC'. "The downgrade comes as the company announced it will seek capital, and that such a transaction could include a debt restructuring in addition to store closures and other measures," said Standard & Poor's credit analyst Charles Pinson-Rose. In the Sept. 16, 2014, edition of the TCR, the TCR reported that Fitch Ratings had downgraded the Long-term Issuer Default Rating (IDR) for RadioShack Corporation (RadioShack) to 'C' from 'CC'. The downgrade reflects the high likelihood that RadioShack will need to restructure its debt in the next couple of months. The TCR reported on March 13, 2014, that Moody's Investors Service downgraded RadioShack Corporation's corporate family rating to Caa2 from Caa1. "The continuing negative trend in RadioShack's sales and margins has resulted in a precipitous drop in profitability causing continued deterioration in credit metrics and liquidity," Mickey Chadha, Senior Analyst at Moody's said. RESTAURANT BRANDS: S&P Assigns 'B+' CCR; Outlook Stable ------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to Restaurant Brands International Inc. The outlook is stable. "The rating action comes as the merger between Tim Hortons Inc. and Burger King Worldwild Inc. has closed, and Restaurant Brands International Inc. now owns both restaurant entities. Earlier this year, 1011778 B.C. Unlimited Liability Co. (a subsidiary of Restaurant Brands) issued a term loan and notes to fund the partial purchase of Tim Hortons' equity. The remainder was financed with new equity issued by Restaurant Brands and a $3 billion preferred stock from Berkshire Hathaway Inc.," said credit analyst Charles Pinson-Rose. "For the purposes of the rating, we consider the preferred equity as debt-like and adjust debt for the preferred amount and adjust interest for the dividend amount. Accordingly we expect debt to EBITDA to be in the mid- to high-7x range at close, but we expect the company to reduce leverage quickly, possibly to the mid- to low-6x area over the next two years." S&P's outlook on the parent is stable, which incorporates its assumptions that both Burger King and Tim Hortons can improve profits from restaurant growth and moderate increases in same- store sales, and generate meaningful excess cash flow. These factors will lead to moderate credit ratio improvement, although S&P expects leverage ratios to remain commensurate with a "highly leveraged" financial risk profile. Upside scenario S&P would consider a higher rating if leverage were below 5x with its calculations (which include the expected $3 billion of preferred stock and minimum operating lease commitments without adjusting for lease receipts). This could occur over several years if EBITDA (before any lease adjustments) was near $2 billion (roughly 35% higher than expected pro forma levels) and the company reduced debt by $2 billion. Downside scenario S&P could lower the rating if our assumption of profit growth and free cash flow leading to considerable deleveraging did not occur. For example, if credit ratios are simply maintained because of flat profits, tepid restaurant growth, and negative same-store sales, S&P could consider a lower rating. ROBERT MEIER: Bankruptcy Court Decides on Claims by Martha Meier ---------------------------------------------------------------- Judge Jack B. Schmetterer of the U.S. Bankruptcy Court for the Northern District of Illinois entered a memorandum opinion on Edward Shrock's objection to the claim filed by Martha Meier. Mr. Shrock's objection will be sustained as to the $2,333,333 claim, and overruled as to the $400,000 claim. Martha's claim will be allowed as to $400,000 in property division, and disallowed as to the rest of her future claims. Debtor Robert Meier and Martha Meier (now Maggiore) divorced in 2010. The judgment of divorce was entered together with a Marriage Settlement Agreement, which provided, among other provisions not relevant here, for Robert to pay Martha $4 million in spousal support to be paid in $33,333 monthly installments over 10 years and $400,000 in property settlement to be paid in 2021. Robert was current on support payments up until he filed for his petition for Chapter 11 relief. Martha timely filed her proof of claim for $2,733,333, claiming the entire amount as a priority as a domestic support obligations under Section 507(a)(1)(A) of the Bankruptcy Code. Edward Shrock, another creditor of Robert's, objected to Martha's entire support claim on grounds that domestic support obligations due and owing in the future are not allowable claims in bankruptcy. Subsequently, the proof of claim was amended to reflect that $2,333,333 is for domestic support obligations, and $400,000 is for division of property. Mr. Shrock also argues that the entire claimed amount should be recharacterized as future domestic support obligations because of the initial claim which he calls a judicial admission. The Court ruled that Mr. Shrock's objection will be sustained as to the $2,333,333 claim, and overruled as to $400,000 division of property claim. By separate order, Martha's claim will, therefore, be allowed as to $400,000 in property division, disallowed as to the rest. A full-text copy of the Memorandum Opinion dated November 24, 2014, is available at http://bit.ly/1zlVev8from Leagle.com. Robert Meier filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ill. Case No. 14-10105) on March 20, 2014. RYNARD PROPERTIES: Fannie Mae Seeks to Lift Automatic Stay ---------------------------------------------------------- Fannie Mae asks the Bankruptcy Court for relief from the automatic stay to pursue all of its lawful rights and remedies against Rynard Properties Ridgecrest LP. Fannie Mae is the Debtor's primary lender, owed $4,881,543. The indebtedness is secured by a first priority Deed of Trust that encumbers the Debtor's Ridgecrest Apartments. Fannie Mae also holds a security interest in all of Debtor's accounts, accounts receivable, rents, and real property, all of which constitute cash collateral. Fannie Mae agreed to Debtor's use of cash collateral to continue operating the Ridgecrest Apartments in exchange for perfected liens on all currently owned or after-acquired property and assets of Debtor and monthly payments in the amount of $24,617. Counsel to Fannie Mae, Geoffrey B. Treece, Esq., at Quattlebaum, Grooms, Tull & Burrow, PLLC, recounts that on Sept. 28, 2014, over six months after filing the petition, Debtor finally filed a Plan of Reorganization. According to the Plan, funding will come from, inter alia, "new financing to be obtained on or before the Maturity Date, to be secured by a first position Lien on the Project. . . ." The Plan defines Maturity Date as "[t]he first anniversary date of the Effective Date." Mr. Treece also points out that prior to filing the Plan, on Sept. 2, 2014, the Debtor filed a motion seeking authorization to obtain post-petition financing. However, Debtor did not actually have a firm offer from a lender to provide post-petition financing. To date, the Debtor still has not found a lender to refinance the indebtedness owed to Fannie Mae and, upon information and belief, its most recent prospective lenders declined to provide the refinancing. The Debtor did obtain an extension of the exclusivity period from June 30, 2014 to Aug. 29, 2014. The Debtor did not file a plan within that timeframe, but no other party in interest filed a plan, either. The Debtor has also failed to obtain acceptances of a plan within the 180-day period, even factoring in a 60 day extension to that period. According to Fannie Mae, given that the Ridgecrest Apartments are real property constituting a single property or project that generates substantially all of the gross income of the Debtor, which is not a family farmer, and on which no substantial business is conducted by the Debtor other than operating the real property and activities incidental, Fannie Mae's claim is secured by an interest in single asset real estate. Mr. Treece notes that the Debtor failed to come close to filing a plan within the 90-day period, but the Debtor has been making monthly adequate protection payments to Fannie Mae. Mr. Treece complains that the Debtor took an excessive amount of time to submit its Plan, and the viability of the Plan hinges on obtaining illusory post-petition financing. Moreover, the Debtor, he asserts, does not even have to obtain the financing until one year after the Effective Date of the Plan. The Debtor cannot propose an alternative plan that can be confirmed. Meanwhile, Fannie Mae is forced to wait as the Debtor fails to propose, much less confirm, a feasible plan of reorganization. The delay is prejudicial to the interest of Fannie Mae. In addition to the foregoing, the Debtor, according to Fannie Mae, misapplied and misused the cash collateral of Fannie Mae during the course of this proceeding in a manner that violates the Bankruptcy Code and the U.S. Trustee's Operating Guidelines and is inconsistent with the fiduciary obligations of Debtor to the estate and its creditors. While some or all of this misapplied cash collateral may have been refunded to the estate after its discovery by Fannie Mae, the intentionally wrongful conduct of the Debtor and its principal should disqualify the Debtor from any further benefits of the automatic stay. The Debtor's unreasonable delay in filing a confirmable plan and the misapplication and misuse of Fannie Mae's cash collateral constitutes "cause" for which the stay should be lifted to allow Fannie Mae to assert its rights to and against the Ridgecrest Apartments. Fannie Mae is represented by: Geoffrey B. Treece, Esq. QUATTLEBAUM, GROOMS, TULL & BURROW, PLLC 111 Center Street, Suite 1900 Little Rock, AR 72201 Tel: (501) 379-1735 Fax: (501) 379-3835 E-mail: gtreece@qgtb.com About Rynard Properties Ridgecrest Rynard Properties Ridgecrest LP is a Tennessee limited partnership. Its principal place of business is 2881 Rangeline Road, Memphis, TN 38127, and the Debtor operates a 256 unit multifamily apartment complex of Section 8 housing named Ridgecrest Apartments and currently has TESCO operating the complex as leasing agent. The Debtor filed a Chapter 11 bankruptcy petition (Bankr. W.D. Tenn. Case No. 14-22674) on March 13, 2014. John Bartle signed the petition as secretary/treasurer of Ridgecrest LLC, general partner of the Debtor. In its schedules, the Debtor disclosed $16,231,959 in total assets and $8,734,000 in total liabilities. Toni Campbell Parker serves as the Debtor's counsel. Judge Jennie D. Latta oversees the case. The U.S. Trustee for Region 8 has notified the Bankruptcy Court that it was unable to appoint an official committee of unsecured creditors. SABINE OIL: Sabine Investor Has 50% Stake as of Dec. 16 ------------------------------------------------------- In a Schedule 13D filed with the U.S. Securities and Exchange Commission, First Reserve GP XI, Inc., Sabine Investor Holdings LLC, et al., disclosed that as of Dec. 16, 2014, they beneficially owned 118,862,874+ shares of common stock of Sabine Oil & Gas Corporation representing 50 percent of the shares outstanding. Pursuant to a merger agreement, Sabine Investor Holdings contributed its membership interest in Sabine Oil & Gas Holdings LLC, a wholly owned subsidiary of Sabine Investor Holdings, to Sabine Oil & Gas Corporation (Issuer) in exchange for 59,941,540 shares of Common Stock and 1,897,860 shares of Series A Preferred Stock of the Issuer (convertible into up to 189,786,000 shares of Common Stock). Also on Dec. 16, 2014, AIV LLC contributed the stock of FR NFR Holdings, Inc., and FR NFR PI, Inc., each a Delaware corporation and wholly owned subsidiary of AIV LLC, to the Issuer in exchange for 19,300,376 shares of Common Stock and 611,085 shares of Series A Preferred Stock (convertible into up to 61,108,500 shares of Common Stock). On Dec. 16, 2014, AIV LLC contributed 19,300,376 shares of Common Stock and 611,085 shares of Series A Preferred Stock to Sabine Investor Holdings in exchange for membership interests in Sabine Investor Holdings. As a result of the foregoing, as of Dec. 16, 2014, Sabine Investor Holdings is the record owner of 79,241,916 shares of Common Stock and 2,508,945 shares of Series A Preferred Stock. A copy of the regulatory filing is available for free at: http://is.gd/WSqpXZ About Sabine Sabine Oil & Gas LLC, (formerly Forest Oil Corporation) is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States. Sabine's current operations are principally located in Cotton Valley Sand and Haynesville Shale in East Texas, the Eagle Ford Shale in South Texas, and the Granite Wash in the Texas Panhandle. For more information about Sabine, please visit its website at www.sabineoil.com. Ernst & Young LLP, in Denver, Colorado, issued a "going concern" qualification on the consolidated financial statements of Forest Oil for the year ended Dec. 31, 2013. The independent accounting firm noted that the Company has determined that it expects to fail a financial covenant in its Credit Facility sometime prior to the end of 2014, which could result in the acceleration of all borrowings thereunder and the Company's senior unsecured notes due 2019 and 2020. This raises substantial doubt about the Company's ability to continue as a going concern. The Company's balance sheet at Sept. 30, 2014, the Company had $927.48 million in total assets, $1.07 billion in total liabilities and a $148.03 million total shareholders' deficit. * * * As reported by the TCR on Aug. 25, 2014, Standard & Poor's Ratings Services said that its 'B-' corporate credit rating and its other ratings on Denver-based Forest Oil Corp. remain on CreditWatch with positive implications, pending the close of a merger transaction with Sabine Oil & Gas LLC. SAMSON RESOURCES: S&P Lowers Corporate Credit Rating to 'B-' ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its corporate credit rating on Tulsa, Okla.-based Samson Resources Corp. to 'B-' from 'B'. At the same time, S&P is lowering its rating on Samson's revolving credit facility to 'B+' (two notches above the corporate credit rating) from 'BB-'. The recovery rating on this debt remains '1', indicating S&P's expectation of very high (90% to 100%) recovery in the event of a payment default. S&P also lowered its rating on Samson's second-lien debt to 'B-' (the same as the corporate credit rating) from 'B'. The recovery rating on this debt remains '4', indicating S&P's expectation of average (30% to 50%) recovery in the event of a payment default. S&P also lowered its rating on Samson Investment Co.'s unsecured notes to 'CCC' (two notches below the corporate credit rating) from 'CCC+'. The recovery rating on this debt remains '6', indicating S&P's expectation of negligible (0% to 10%) recovery in the event of a payment default. Samson Investment Co. is a subsidiary of Samson Resources and a borrower of these debt instruments. "The downgrade on Samson reflects our view of the company's very high leverage measures and 'less than adequate' liquidity position in a much weaker commodity price environment," said Standard & Poor's credit analyst Stephen Scovotti. "While the company is looking to sell assets, we believe it could face difficulty in realizing a sizeable amount of proceeds to address liquidity and leverage issues," said Mr. Scovotti. The ratings on Samson also reflect the company's significant exposure to natural gas prices, weak profitability measures, and private equity ownership. The ratings also reflect the company's relative size and scale, and large resource acreage positions. Standard & Poor's considers Samson's business risk "weak," and its financial risk "highly leveraged." Samson's weak business risk profile reflects its high exposure to natural gas prices, which has unfavorable economics relative to oil even at current prices. S&P views Samson's financial profile as highly leveraged, reflecting the company's very high debt leverage measures. S&P assess Samson's liquidity to be "less than adequate." The negative CreditWatch placement reflects that S&P could consider lowering the ratings if the company is unable to enter into agreements to sell significant assets to improve liquidity in early 2015. S&P intends to resolve the CreditWatch listing in early 2015. SAN GOLD: Seeks Protection From Creditors ----------------------------------------- Alistair MacDonald, writing for Daily Bankruptcy Review, reported that gold-miner San Gold Corp. has asked Canadian courts for protection against its creditors, another miner running into trouble as the price of the yellow metal falls and the sector's empire building in the commodity boom years comes back to haunt it. According to the report, capitalized at over a billion Canadian dollars at its height in 2010, San Gold has struggled after an aggressive expansion meant that it couldn't mine its metal profitably. SCHAEFER SALT: Khoudary Suspended From Law Practice in New York --------------------------------------------------------------- The Appellate Division of the Supreme Court of New York, First Department, suspended Nicholas Khoudary, Esq., from the practice of law in the state of New York for a period of two years, nunc pro tunc to July 5, 2013, and until further order of the Court. The proceeding is captioned In the Matter of Nicholas Khoudary, an Attorney and Counselor-at-Law: Departmental Disciplinary Committee for the First Judicial Department, Petitioner, Nicholas Khoudary, Respondent, M-3000. The Respondent was admitted to the practice of law in the state of New York by the First Judicial Department on January 23, 1989. In May 2001, the New Jersey Supreme Court suspended respondent for two years, retroactive to August 6, 1999 (the date of his interim suspension), following his August 2, 1999 criminal conviction in the United States District Court for the District of New Jersey for structuring a monetary transaction to avoid currency transaction reporting requirements. In November 1999, the Respondent was sentenced to five years probation and ordered to pay restitution in the amount of $296,222. In September 2001, he was reinstated to the practice of law in New Jersey. In March 2002, the Court deemed the Respondent's federal conviction a "serious crime," suspended him from the practice of law, and directed him to show cause why a final order of censure, suspension or disbarment should not be made (291 A.D.2d 152 [1st Dept 2002]). On February 6, 2003, the Court confirmed a Hearing Panel determination and continued respondent's suspension from the practice of law for a period co-extensive with his federal probationary period, which was scheduled to terminate Nov. 28, 2004, and until further order of the Court (303 A.D.2d 124 [1st Dept 2003]). To date, the Respondent has not applied for reinstatement to the practice of law in New York and, accordingly, his suspension from practice in this state remains in effect. Presently before the Court is a reciprocal discipline petition of the Departmental Disciplinary Committee, dated June 4, 2014, seeking an order suspending the Respondent from the practice of law for two years, retroactive to July 5, 2013, predicated upon the two-year suspension imposed on respondent by the Supreme Court of New Jersey with effect from that date. The order forming the basis for the Committee's reciprocal discipline petition was issued by the New Jersey Supreme Court on June 6, 2013. That order suspended the Respondent from the practice of law in New Jersey for a period of two years, and until further order of the court, with effect from July 5, 2013, based on findings of the New Jersey Disciplinary Review Board, after evidentiary proceedings before a Special Master, that respondent had violated New Jersey Rules of Professional Conduct 3.1 (filing a frivolous claim), 8.4(c) (conduct involving dishonesty, fraud, deceit or misrepresentation), and 8.4(d) (conduct prejudicial to the administration of justice) (In re Khoudary, 213 N.J. 593, 66 A.3d 1264 [2013]). Underlying the charges for which the 2013 suspension was imposed was respondent's filing, in the United States Bankruptcy Court for the District of New Jersey, of two successive bankruptcy petitions (the first under Chapter 11, the second under Chapter 7) on behalf of Schaefer Salt Recovery, Inc. (SSR). At the time, respondent's then-wife owned SSR and respondent was the entity's vice president, secretary and counsel. Both petitions were dismissed as frivolous by the Bankruptcy Court, which found that respondent had filed them in bad faith to obstruct a pending tax foreclosure proceeding in state court. The Bankruptcy Court ultimately imposed a sanction of $11,628 on the Respondent personally based on the filing of the second petition, which he had effected after the court had warned him, upon the dismissal of the first petition, not to repeat such misuse of the bankruptcy code (In re Schaefer Salt Recovery, Inc., 444 B.R. 286, 295-298 [Bankr D NJ 2011]). A full-text copy of the Opinion dated December 2, 2014, is available at http://bit.ly/1wq2yDZfrom Leagle.com. Nicholas Khoudary was admitted to the practice of law in the state of New York by the First Judicial Department on January 23, 1989. He is also admitted to the practice of law in New Jersey, where he maintains his place of business. SEQUENOM INC: Okays $2 Million Employee Cash Bonuses ---------------------------------------------------- The Compensation Committee of the Board of Directors of Sequenom, Inc., approved one-time cash bonuses to all eligible employees of the Company in an aggregate amount equal to $2.07 million. The Cash Bonuses are in recognition of the eligible employees' significant efforts with regards to the Company's recently- announced execution of a series of agreements with Illumina, Inc., including an agreement pursuant to which the parties have pooled their intellectual property directed to noninvasive prenatal testing and Illumina has agreed to pay an aggregate $50 million upfront payment to the Company in addition to royalties for sales of in-vitro diagnostic kits for NIPT and a share of per-test fees paid into the pool by both parties and their sublicensees for laboratory-developed NIPT tests. Illumina has agreed to minimum yearly payments to the Company under the pool through 2020 covering both IVD royalties and the Company's share of the collected test fees. The Company and Illumina also entered into (i) a Settlement Agreement pursuant to which the parties settled certain longstanding claims and released the other party from certain liabilities and (ii) an expanded supply agreement, pursuant to which the Company and its affiliates will purchase various products from Illumina, which they will be able to use for NIPT as well as for other clinical and research uses. These pivotal agreements will enable the Company to continue to expand its NIPT laboratory tests offerings while also allowing it to participate more broadly in the growing global NIPT marketplace. The Cash Bonuses to be paid to the Company's chief executive officer, chief financial officer and other named executive officers are: Name Cash Bonus ------------ ---------- William J. Welch, $150,000 Chief Executive Officer Carolyn D. Beaver, $115,000 Chief Financial Officer Dirk van den Boom, $150,000 Chief Scientific & Strategy Officer About Sequenom Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery and clinical research, and molecular diagnostics markets. The company was founded in 1994 and is headquartered in San Diego, California. Sequenom incurred a net loss of $107.40 million in 2013, a net loss of $117.02 million in 2012 and a net loss of $74.13 million in 2011. As of Sept. 30, 2014, the Company had $134.55 million in total assets, $186.45 million in total liabilities and a $51.89 million total stockholders' deficit. SOUND SHORE: Plan of Liquidation Declared Effective --------------------------------------------------- Sound Shore Medical Center of WestChester, et al., notified the Bankruptcy Court that the Effective Date of their First Amended Plan of Liquidation occurred on Nov. 26, 2014. The Debtor also noted that the bar date for administrative claim is on Jan. 12, 2015, at 4:00 p.m. Proofs of claim must be submitted: If by mail to: Sound Shore Medical Center of Westchester c/o GCG, Inc. P.O. Box 9982 Dublin, OH 43017-5982 If by hand delivery or overnight courier to: Sound Shore Medical Center of Westchester c/o GCG, Inc. 5151 Blazer Parkway, Suite A Dublin, OH 43017 or, if by hand delivery to: U.S. Bankruptcy Court, SDNY 300 Quarropas Street, Room 248 White Plains, NY 10601 Attn: Clerk of the Court As reported in the Troubled Company Reporter on Nov. 21, 2014, the Debtors confirmed their First Amended Plan dated Sept. 17, 2014. Monica Terrano was appointed as the Plan Administrator. The Debtors, in a memorandum of law in support of the confirmation of the First Amended Plan, stated that the Plan is a culmination of extensive, arms-length negotiations between the Debtors and their key constituencies to reach a fair and equitable resolution of the many complex business and legal issue presented by the cases. The Plan was a collaborative effort between the Debtor and the Official Committee of Unsecured Creditors with significant input from other relevant constituents. A copy of the memorandum is available for free at: http://bankrupt.com/misc/SOUNDSHORE_894_plan_memo.pdf The Plan provides a means by which the proceeds of the liquidation of the Debtor's assets will be distributed. Holders of Allowed Unsecured Claims, including Allowed Medical Malpractice/Personal Injury Claims, will receive pro rata distributions of cash from the net proceeds. To recall, the closing of the sale of the Debtors' assets was concluded in November of 2013. Montefiore Medical Center and certain of its affiliates agreed to buy the Debtors' assets in the amount of $54 million, plus the appraised value of furniture, equipment and inventory acquired by the buyer. The majority of the liens were satisfied through the sale proceeds at the closing of the sale. Specifically, the Debtors paid approximately $42.2 million to satisfy their secured claims. A copy of the First Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/SOUNDSHORE_820_1ds.pdf About Sound Shore Medical Center Sound Shore Medical Center of Westchester, Mount Vernon Hospital Inc., Howe Avenue Nursing Home and related entities sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 13-22840) on May 29, 2013, in White Plains, New York. The Debtors were the largest "safety net" providers for Southern Westchester County in New York. Affiliated with New York Medical College, Sound Shore is a not-for-profit 242-bed, community based- teaching hospital located in New Rochelle, New York. Mountain Vernon Hospital is a voluntary, not-for-profit 176-bed hospital located in Mount Vernon, New York. Howe Avenue Nursing Home is a 150-bed, comprehensive facility. The Debtors tapped Burton S. Weston, Esq., at Garfunkel Wild, P.C. as counsel; Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors; and GCG Inc., as claims agent. Alston & Bird LLP represents the Official Committee of Unsecured Creditors. Deloitte Financial Advisory Services LLP serves as the Committee's as financial advisor. Sound Shore disclosed assets of $159.6 million and liabilities totaling $200 million. Liabilities include a $16.2 million revolving credit and a $5.8 million term loan with Midcap Financial LLC. There is $9 million in mortgages with Sun Life Assurance Co. of Canada (US) and $11.5 million owing to the New York State Dormitory Authority. Neubert, Pepe & Monteith, P.C., represents Daniel T. McMurray, the patient care ombudsman for Sound Shore. The Debtors filed for bankruptcy to sell their assets, including their hospital and nursing home operations, to the Montefiore health system. On Aug. 8, 2013, the Bankruptcy Court entered an order, as affirmed and ratified by a Supplemental Sale Order entered on Oct. 15, 2013, approving the sale to Montefiore New Rochelle Hospital, Inc., Schaffer Extended Care Center, Inc., Montefiore Mount Vernon Hospital, Inc. and certain related affiliates. In June 2013, Montefiore added $4.75 million to its purchase offer to speed up the sale. Montefiore raised its bid to $58.75 million plus furniture and equipment as part of a request for a private sale of the hospitals. On Nov. 6, 2013 at 12:01 a.m., the closing of the sale occurred and the sale became effective. Montefiore is represented by Togut, Segal & Segal LLP. SOURCE HOME: Committee's Challenge Period Extended Until Dec. 29 ---------------------------------------------------------------- The Bankruptcy Court approved a fifth stipulation regarding a further extension of certain deadline established pursuant to the final order (a) authorizing Source Home Entertainment, LLC, et al.'s postpetition use of cash collateral; and (b) granting adequate protection to the secured parties. The stipulation was entered among the Debtors, the Official Committee of Unsecured Creditors and Cortland Capital Market Services LLC, as administrative agent and collateral agent for the term loan lenders. The parties agreed that additional time in needed to explore reaching a settlement of various potential disputes. In this relation, the fifth stipulation further extended the challenge period deadline by 21 calendar days, such that the deadline of Dec. 8, 2014, is extended to Dec. 29. The Cash Collateral Order As reported in the TCR on July 29, 2014, the Hon. Kevin Gross entered on July 22, 2014, a final order authorizing the Debtors to use cash collateral until 120 calendar days after the closing date. The Debtors sought authorization from the Court to use the cash collateral of their term loan lenders. The Debtors need cash collateral to (a) continue their orderly wind down process and pay their employees in connection therewith, and to (b) procure goods and services from vendors, pay their employees, and satisfy other working capital needs in the ordinary course of their remaining manufacturing business. The Debtors owe $51.9 million under their term loan facility with Cortland Capital Market Services, LLC, as administrative and collateral agent. Obligations arising under the term loan facility are secured by substantially all of the Debtors' assets. As adequate protection for any postpetition diminution in value of each agent's interests, each agent, for the benefit of itself and the term loan lenders, the revolving lenders, or any other secured parties, is granted: (i) additional and replacement valid, binding, enforceable, non-avoidable, and automatically perfected postpetition security interests in and liens on any and all presently owned and hereafter acquired personal property, real property, and all other assets of the Debtors; (ii) an allowed administrative expense claim in the cases ahead of and senior to any and all other administrative claims in the cases to the extent of any postpetition first lien diminution in value; and (iii) an allowed administrative expense claim in the cases ahead of any and all other administrative claims in the cases to the extent of any postpetition second lien diminution in value. As further adequate protection, (a) the Debtors will pay to each agent, for the benefit of itself and the term loan lenders or the revolving lenders, reasonable attorney's fees and expenses, whether incurred before or after the Petition Date, of the term loan agent and the term loan lenders or the revolving credit facility agent, to the extent provided under the term loan credit documents or the revolving credit documents, as applicable and (b) the revolving credit facility agent will be authorized to apply cash collateral on deposit to any interest, fees, costs and expenses, due and owing by the Debtors to the revolving credit facility agent and revolving lenders to the extent provided by and in accordance with the revolving credit documents, without further court order. About Source Home Entertainment and Source Interlink Headquartered in Bonita Springs, Florida, Source Home Entertainment, LLC, manufactures front-end retail checkout displays and is a leading distributor of books, periodicals, and other printed material. Its distribution network spans over 32,500 retail locations in the U.S. and abroad. In the twelve months ended April 30, 2014, Source Home generated revenues totaling approximately $600 million on a consolidated basis. As of March 31, 2014, Source Home had assets (not including goodwill or intangibles) of $205 million and liabilities of approximately $290 million. Source Interlink Distribution, LLC disclosed $82,729,238 in assets and $104,521,951 in liabilities. Source Home, Source Interlink Manufacturing, LLC, and other affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-11553) on June 23, 2014, to sell their front-end retail display fixtures business to lenders, absent higher and better offers. The Debtors are winding down their books distribution business. The Debtors have tapped Kirkland & Ellis LLP as general bankruptcy and corporate counsel; Young Conaway Stargatt & Taylor, LLP, as co-counsel, FTI Consulting, Inc., as crisis and turnaround advisor; and Kurtzman Carson Consultants, LLC, as claims agent. Stephen Dube has been designated by the Debtors to act as chief restructuring officer and Joshua Korsower to act as chief financial officer. The United States Trustee for Region 3 appointed seven creditors to serve on the Official Committee of Unsecured Creditors. The Committee is represented by Lowenstein Sandler LLP, and Duane Morris LLP. The Committee tapped PricewaterhouseCoopers LLP as its financial advisor. SOURCE HOME: Cash Collateral Use Milestones Extended ---------------------------------------------------- The Bankruptcy Court approved a stipulation order approving stipulation further extending certain milestones established pursuant to the final order authorizing Source Home Entertainment, LLC, et al.'s postpetition use of cash collateral. The stipulation provides that the milestones may be further extended without further notice to or order of the Court by the mutual written consent of the Debtors, the Official Committee of Unsecured Creditors and Cortland Capital Market Services LLC, as administrative agent and collateral agent for the term loan lenders. A copy of the terms of the stipulation is available for free at http://bankrupt.com/misc/SourceHomeEntertainment_159_SAL.pdf About Source Home Entertainment and Source Interlink Headquartered in Bonita Springs, Florida, Source Home Entertainment, LLC, manufactures front-end retail checkout displays and is a leading distributor of books, periodicals, and other printed material. Its distribution network spans over 32,500 retail locations in the U.S. and abroad. In the twelve months ended April 30, 2014, Source Home generated revenues totaling approximately $600 million on a consolidated basis. As of March 31, 2014, Source Home had assets (not including goodwill or intangibles) of $205 million and liabilities of approximately $290 million. Source Interlink Distribution, LLC disclosed $82,729,238 in assets and $104,521,951 in liabilities. Source Home, Source Interlink Manufacturing, LLC, and other affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-11553) on June 23, 2014, to sell their front-end retail display fixtures business to lenders, absent higher and better offers. The Debtors are winding down their books distribution business. The Debtors have tapped Kirkland & Ellis LLP as general bankruptcy and corporate counsel; Young Conaway Stargatt & Taylor, LLP, as co-counsel, FTI Consulting, Inc., as crisis and turnaround advisor; and Kurtzman Carson Consultants, LLC, as claims agent. Stephen Dube has been designated by the Debtors to act as chief restructuring officer and Joshua Korsower to act as chief financial officer. The United States Trustee for Region 3 appointed seven creditors to serve on the Official Committee of Unsecured Creditors. The Committee is represented by Lowenstein Sandler LLP, and Duane Morris LLP. The Committee tapped PricewaterhouseCoopers LLP as its financial advisor. SOURCE INTERLINK: Family Fare Withdraws Objections to Plan ---------------------------------------------------------- Family Fare, LLC and Nash-Finch Company had withdrawn their limited objection to the approval of the Disclosure Statement explaining Source Home Entertainment, LLC, et al.'s joint plan of liquidation. As reported in the Troubled Company Reporter on Oct. 14, 2014, the Debtors filed with the a joint plan proposing to give less than 1% to holders of general unsecured claims. Under the Plan, holders of Other Priority Claims, Other Secured Claims, and Revolving Credit Claims will recover 100% of their allowed claim amount. A key component of the Plan is the Sale Transaction. Prior to the Petition Date, the Debtors engaged in arm's-length negotiations with the Term Loan Lenders regarding a potential sale of substantially all of the assets of the Retail Display Business. These negotiations culminated with the execution of the asset purchase agreement, dated June 22, 2014, by and among the Debtors and Cortland Capital Market Services LLC. An auction for the Debtors' assets was not pushed through because no qualified bid, aside from Cortland's, was received by the Sept. 12, 2014, deadline despite the Debtors' best efforts. Accordingly, the sale transaction contemplated by the Cortland Purchase Agreement was the successful bid. Pursuant to the Purchase Agreement, the Purchaser will credit bid $24 million of its secured claims under the Term Loan Facility in exchange for substantially all of the assets comprising the Retail Display Business and $4 million in cash and cash equivalents, subject to certain adjustments. The Purchaser will also assume certain material liabilities in connection with the Retail Display Business, including certain cure obligations and employee- and payroll-related liabilities. The Debtors said they are working with the Purchaser to consummate the Sale Transaction on or before Oct. 21, 2014. A full-text copy of the Disclosure Statement dated Oct. 6, 2014, is available at http://bankrupt.com/misc/SOURCEHOMEds1006.pdf About Source Home Entertainment and Source Interlink Headquartered in Bonita Springs, Florida, Source Home Entertainment, LLC, manufactures front-end retail checkout displays and is a leading distributor of books, periodicals, and other printed material. Its distribution network spans over 32,500 retail locations in the U.S. and abroad. In the twelve months ended April 30, 2014, Source Home generated revenues totaling approximately $600 million on a consolidated basis. As of March 31, 2014, Source Home had assets (not including goodwill or intangibles) of $205 million and liabilities of approximately $290 million. Source Interlink Distribution, LLC disclosed $82,729,238 in assets and $104,521,951 in liabilities. Source Home, Source Interlink Manufacturing, LLC, and other affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-11553) on June 23, 2014, to sell their front-end retail display fixtures business to lenders, absent higher and better offers. The Debtors are winding down their books distribution business. The Debtors have tapped Kirkland & Ellis LLP as general bankruptcy and corporate counsel; Young Conaway Stargatt & Taylor, LLP, as co-counsel, FTI Consulting, Inc., as crisis and turnaround advisor; and Kurtzman Carson Consultants, LLC, as claims agent. Stephen Dube has been designated by the Debtors to act as chief restructuring officer and Joshua Korsower to act as chief financial officer. The United States Trustee for Region 3 appointed seven creditors to serve on the Official Committee of Unsecured Creditors. The Committee is represented by Lowenstein Sandler LLP, and Duane Morris LLP. The Committee tapped PricewaterhouseCoopers LLP as its financial advisor. SPANISH BROADCASTING: Gets Noncompliance Notice From NASDAQ ----------------------------------------------------------- Spanish Broadcasting System, Inc., received a written notice from The Nasdaq Stock Market on Dec. 19, 2014, advising the Company that the market value of its Class A common stock for the previous 30 consecutive business days had been below the minimum $15,000,000 required for continued listing on the NASDAQ Global Market pursuant to NASDAQ Listing Rule 5450(b)(3)(C), according to a regulatory filing with the U.S. Securities and Exchange Commission. Pursuant to NASDAQ Listing Rule 5810(c)(3)(D), the Company has been provided an initial grace period of 180 calendar days, or until June 17, 2015, to regain compliance with the Rule. The Notice further provides that NASDAQ will provide written confirmation stating that the Company has achieved compliance with the Rule if at any time before June 17, 2015, the market value of the Company's publicly held shares closes at $15,000,000 or more for a minimum of 10 consecutive business days. If the Company does not regain compliance with the Rule by June 17, 2015, NASDAQ will provide written notification to the Company that the Company's common stock is subject to delisting from the Nasdaq Global Market, at which time the Company will have an opportunity to appeal the determination to a NASDAQ Hearings Panel. The Company said it intends to use all reasonable efforts to maintain the listing of its common stock on the NASDAQ Global Market, but added that there can be no guarantee that it will regain compliance with the Market Value of Publicly Held Shares Requirement. About Spanish Broadcasting Headquartered in Coconut Grove, Florida, Spanish Broadcasting System, Inc. -- http://www.spanishbroadcasting.com/-- owns and operates 21 radio stations targeting the Hispanic audience. The Company also owns and operates Mega TV, a television operation with over-the-air, cable and satellite distribution and affiliates throughout the U.S. and Puerto Rico. Its revenue for the twelve months ended Sept. 30, 2010, was approximately $140 million. Spanish Broadcasting reported a net loss of $88.56 million in 2013, as compared with a net loss of $1.28 million in 2012. As of Sept. 30, 2014, the Company had $461.39 million in total assets, $529.68 million in total liabilities and a $68.28 million total stockholders' deficit. * * * In November 2010, Moody's Investors Service upgraded the corporate family and probability of default ratings for Spanish Broadcasting System, Inc., to 'Caa1' from 'Caa3' based on improved free cash flow prospects due to better than anticipated cost cutting and the expiration of an unprofitable interest rate swap agreement. Moody's said Spanish Broadcasting's 'Caa1' corporate family rating incorporates its weak capital structure, operational pressure in the still cyclically weak economic climate, generally narrow growth prospects (though Spanish language is the strongest growth prospect) given the maturity and competitive pressures in the radio industry, and the June 2012 maturity of its term loan magnify this challenge. As reported by the TCR on May 22, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on U.S. Spanish- language broadcaster Spanish Broadcasting System Inc. (SBS) to 'CCC+' from 'B-'. "The downgrade reflects our view that the company's current capital structure is unsustainable, given its inability to redeem its preferred stock, which was put to the company in October of 2013," said Standard & Poor's credit analyst Chris Valentine. SPECIALTY HOSPITAL: Sale Closing Cues US Trustee to Withdraw Plea ----------------------------------------------------------------- Judy A. Robbins, U.S. Trustee for Region 4, asks the Hon. S. Martin Teel, Jr., of the U.S. Bankruptcy Court for the District of Columbia for permission to withdraw the request that she -- together with Specialty Hospital of Washington LLC and its debtor- affiliates -- filed, seeking appointment of a Chapter 11 trustee or, in the alternative, dismissing the Debtors' Chapter 11 cases. According to the U.S. Trustee, a notice of closing of the sale of substantially all of the Debtors' assets was filed with the Court on Dec. 18, 2014. The notice resolves the concerns that prompted the U.S. Trustee to file her motion. The U.S. Trustee noted that on June 30, 2014, the Court entered an order authorizing the sale of substantially all of the Debtors' assets, authorizing the assumption of certain executory contracts and unexpired leases, and granting related relief. The closing date for this sale was extended at the purchaser's option to Nov. 30, 2014. The Debtors and their prospective purchaser anticipate extending this date to Dec. 19, 2014. The U.S. Trustee added that the purchaser and the Debtors continue to negotiate with various governmental parties to gain the necessary approvals. The parties have yet to reach an agreement and obtaining the government approvals prior to the closing date is a condition to the buyer's obligation to close on the purchase. SPECTRASCIENCE INC: Needs Funding to Continue as Going Concern -------------------------------------------------------------- SpectraScience, Inc., filed its quarterly report on Form 10-Q, reporting net income of $958,488 on $nil of total revenue for the three months ended Sept. 30, 2014, compared with net income of $177,366 on $60,000 of total revenue for the same period in 2013. The Company's balance sheet at Sept. 30, 2014, showed $2.07 million in total assets, $6.51 million in total liabilities, and a stockholders' deficit of $4.44 million. The Company's sources of cash have come from the issuance and sales of equity securities and convertible debentures. The Company's historical cash outflows have been primarily used for operating activities including research, development, administrative and sales activities. Fluctuations in the Company's working capital due to timing differences of its cash receipts and cash disbursements also impact its cash flow. The Company expects to incur significant additional operating losses through at least the end of 2014, as it completes proof-of-concept trials, conducts outcome-based clinical studies and increases sales and marketing efforts to commercialize the WavSTAT4 Systems in Europe. If the Company does not receive sufficient funding, there is substantial doubt that the Company will be able to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/RSagXY About SpectraScience SpectraScience, Inc. (OTC QB: SCIE) is a San Diego based medical device company that designs, develops, manufactures and markets spectrophotometry systems capable of determining whether tissue is normal, pre-cancerous or cancerous without physically removing tissue from the body. The WavSTAT(TM) Optical Biopsy System uses light to optically scan tissue and provide the physician with an immediate analysis. On Nov. 6, 2007, the Company acquired the assets of Luma Imaging Corporation in an equity transaction accounted for as an acquisition of assets and now operates LUMA as a wholly-owned subsidiary of the Company. As reported in the TCR on April 25, 2013, McGladrey LLP, in Des Moines, Iowa, in its report on the Company's financial statements for the year ended Dec. 31, 2012, said the Company has suffered recurring losses from operations and its ability to continue as a going concern is dependent on the Company's ability to attract investors and generate cash through issuance of equity instruments and convertible debt. "This raises substantial doubt about the Company's ability to continue as a going concern." On Feb. 3, 2014, SpectraScience dismissed McGladrey as the Company's independent registered accounting firm effective immediately, and engaged HJ Associates & Consultants, LLP, as replacement accounting firm. STAMP FARMS: Co-Owner Pleads Guilty to Bankruptcy Fraud ------------------------------------------------------- Stamp Farms, L.L.C. Co-owner Melissa Stamp pleaded guilty on Dec. 23, 2014, to hiding funds from the Bankruptcy Court. Aaron Mueller at Mlive.com reports that Ms. Stamp was indicted in October 2014 on one count of bankruptcy fraud with federal prosecutors alleging she had aided and abetted in the concealment of property and assets. According to Mlive.com, Ms. Stamp allegedly hid from the Bankruptcy Court that: (a) in October 2012, she asked her brother Steven Moser to hold a $75,000 official bank check; (b) she gave in October 2012 two official checks, totaling more than $90,000, to her father Matthew Moser; (c) she and her husband Michael held $50,000 cash in a safe in their Decatur home in November 2012; and between December 2012 and January 2013 the Stamps allegedly received $30,000 worth of promotional assets from a corporate client. Citing the plea agreement, Mlive.com relates that Ms. Stamp could face a maximum sentence of five years in prison and a fine of $250,000. According to the report, Ms. Stamp agreed to cooperate with the Internal Revenue Service and U.S. Attorney's Office in the investigation and in recovering money and assets involved in the crime. Mlive.com adds that most of the farm's assets were sold to a Zeeland farmer at a bulk sale through the Bankruptcy Court in November 2014, while other acreage and equipment was sold in auctions. About Stamp Farms Stamp Farms, L.L.C., and three affiliates sought Chapter 11 protection (Bankr. W.D. Mich. Lead Case No. 12-10410) on Nov. 30, 2012, in Grand Rapids, Michigan. Stamp Farms began in 1968 with its purchase of 168 acres of farmland in Decatur, Michigan. The family was also heavily involved in the swine industry, operating a 500 sow swine operation until 1995. In 1997, Mike Stamp took over operations of Stamp Farms' 1500 acres and has grown the farm operation to cover 20,000+ acres across six southwestern Michigan counties. Stamp Farms sells its grain to Northstar Grain, L.L.C., solely owned by Mike Stamp, which conducts a grain elevator business on land it owns and leases and upon which buildings, grain storage bins, grain loading and related equipment and rail spurs are located. Stamp Farms estimated at least $10 million in assets and at least $50 million in liabilities in its bare-bones petition. Mr. Stamp also filed a Chapter 11 petition (Case No. 12-10430). Judge Scott W. Dales oversees the case. The Debtors are represented by Michael S. McElwee, Esq., and Robert D. Mollhagen, Esq., at Varnum LLP. O'Keefe & Associates Consulting, L.L.C. serves as financial restructuring advisors. The Official Committee of Unsecured Creditors tapped Steve Jakubowski, Esq., at Robbins, Salomon & Patt, Ltd., as its counsel, and Emerald Agriculture, LLC, as its financial consultant. As reported by the Troubled Company Reporter on June 5, 2013, Bloomberg News bankruptcy columnist Bill Rochelle reported that Stamp Farms's Chapter 11 bankruptcy protection was converted to one under Chapter 7. STARR PASS: U.S. Bank Can Proceed With Suit in State Court ---------------------------------------------------------- The Hon. Paul Sala of the U.S. Bankruptcy Court for the District of Arizona granted U.S. Bank relief from the automatic stay under 11 U.S.C. Sec. 362(d)(1) for cause, allowing U.S. Bank to proceed in state court, in all respects, with litigation of certain removed counts in Adversary Proceeding No. 14-00667, involving debtor Starr Pass Residential, LLC. Judge Sala ruled on the Motion To Abstain And/Or Remand And Dismiss filed by U.S. Bank, N.A., as Trustee, related to Adversary Proceeding Case No. 14-00667. The Court said the Motion is denied as to the request for mandatory abstention under 28 U.S.C. Sec. 1334(c)(2) and/or permissive abstention under 28 U.S.C. Sec. 1334(c)(1) with respect to the Removed Counts, as defined in U.S. Bank's Motion. The Motion is granted as to the request for equitable remand under 28 U.S.C. Sec. 1452(b) as to the Removed Counts, and the Removed Counts are remanded from the Bankruptcy Court to the state court. The Adversary Proceeding is dismissed and the clerk is directed to enter the dismissal on the docket and close the case. About Starr Pass Residential Starr Pass Residential LLC, filed a Chapter 11 bankruptcy petition (Bankr. D. Ariz. Case No. 14-09117) on June 12, 2014. Christopher Ansley signed the petition as authorized officer. Gust Rosenfeld, P.L.C., serves as the Debtor's counsel. The Debtor disclosed total assets of $7.40 million and liabilities of $146 million. The bankruptcy case was reassigned to Judge Eileen W. Hollowell because Judge Brenda Moody Whinery recused herself from hearing any matter on the Chapter 11 proceeding. The U.S. Trustee for Region 14 informed the U.S. Bankruptcy Court for the District of Arizona that it was unable to appoint creditors form the Official Committee of Unsecured Creditors for the Chapter 11 case of Starr Pass Residential LLC because an insufficient number of persons holding unsecured claims against the Debtor have expressed interest in serving on a committee. STARR PASS: Can Hire Eason Rohde as Special Litigation Counsel -------------------------------------------------------------- The Hon. Paul Sala of the U.S. Bankruptcy Court for the District of Arizona authorized Starr Pass Residential LLC to employ Eason Rohde LLC as its special litigation counsel nunc pro tunc to June 12, 2014, to represent the Debtor in the state court proceeding pending in Pima County Superior Court under Case No. C20117682. According to the Debtor, it desires to employ the firm to assist it in connection with its litigation efforts in the State Court Action. Prior to the its petition date, the firm provided services to the Debtor as well as other defendants in the State Court Action, including F. Christopher Ansley, Starr Pass Redevelopment, Starr Pass Master HOA, Starr Pass Holdings, and Title Security of Arizona Trust 708. The firm is not owed any amounts for services provided prior to the Petition Date, or has waived any claim for any unpaid services. Additionally, any payments made to the firm, will be provided by Debtor's representatives Peter Ansley and F. Christopher Ansley, personally, rather than from the Debtor's bank account. The Debtor assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Starr Pass Residential Starr Pass Residential LLC, filed a Chapter 11 bankruptcy petition (Bankr. D. Ariz. Case No. 14-09117) on June 12, 2014. Christopher Ansley signed the petition as authorized officer. Gust Rosenfeld, P.L.C., serves as the Debtor's counsel. The Debtor disclosed total assets of $7.40 million and liabilities of $146 million. The bankruptcy case was reassigned to Judge Eileen W. Hollowell because Judge Brenda Moody Whinery recused herself from hearing any matter on the Chapter 11 proceeding. The U.S. Trustee for Region 14 informed the U.S. Bankruptcy Court for the District of Arizona that it was unable to appoint creditors form the Official Committee of Unsecured Creditors for the Chapter 11 case of Starr Pass Residential LLC because an insufficient number of persons holding unsecured claims against the Debtor have expressed interest in serving on a committee. STARWOOD PROPERTY: S&P Lowers Sr. Secured Debt Rating to 'BB' --------------------------------------------------------------- As previously announced, on Dec. 12, 2014, Standard & Poor's Ratings Services lowered its rating on Starwood Property Trust Inc.'s senior secured debt to 'BB' from 'BB+' as part of the implementation of its revised issue-level criteria for nonbank financial institutions. S&P previously rated the company's secured debt a notch above the 'BB' issuer credit rating. However, the revised criteria no longer allows for such notching. The change in the rating did not result from any change in the creditworthiness of the debt. STATION CASINOS: Bank Debt Trades at 2% Off ------------------------------------------- Participations in a syndicated loan under which Station Casinos is a borrower traded in the secondary market at 97.58 cents-on-the- dollar during the week ended Friday, December 27, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 1.66 percentage points from the previous week, The Journal relates. NRG Energy pays 325 basis points above LIBOR to borrow under the facility. The bank loan matures on March 1, 2020, and carries Moody's B1 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 212 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. SUNGARD AVAILABILITY: S&P Lowers CCR to 'B'; Outlook Negative ------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its corporate credit rating on Wayne, Pa.-based Sungard Availability Services Capital Inc. to 'B' from 'B+'. The outlook is negative. In addition, S&P lowered the issue-level rating on the company's senior secured credit facility due 2019 to 'B+' from 'BB-'. The recovery rating remains '2', which indicates S&P's expectation of substantial (70% to 90%) recovery in the event of payment default. S&P also lowered the issue-level rating on the company's senior unsecured notes due 2022 to 'CCC+' from 'B-'. The recovery rating remains '6', which indicates S&P's expectation of negligible (0% to 10%) recovery in the event of payment default. "The downgrade reflects Sungard Availability Services' reported financial results, which are lower than we previously expected, and the challenging operating environment," said Standard & Poor's credit analyst Tuan Duong. At the time of the spin-off from Sungard Data Systems in March 2014, the company laid out plans to strategically reposition its business to focus on fully managed recovery services and the disaster-recovery-as-a-service (DRaas) business, while protecting its legacy traditional recovery segment. The traditional recovery business has been in secular decline as more companies increasingly bring disaster recovery infrastructure in house in order to manage costs and maintain more flexible cloud-based recovery. Furthermore, the company's managed services segment, which comprises mainly co-location data center services, has been subject to intense competition and pricing pressure. As a result of the compounding effect of the loss of higher margin traditional recovery business, slower growth in DRaaS, and general pricing pressures, the company's cash flow generation has experienced a meaningful decline. While S&P recognizes the general growth opportunity in the cloud recovery business, the company has not yet achieved sufficient growth in this area to offset the challenges in other businesses. The company's scale and its brand equity in traditional disaster recovery services somewhat offset these factors. S&P believes the company will continue to experience challenges as it transitions its existing client base to a managed recovery program and cloud-based offerings. As a result, S&P has changed its assessment of the company's business risk profile to "weak" from "fair." The negative outlook reflects S&P's view that the company faces a challenging operating environment in traditional recovery services, and also reflects execution risk in its ongoing business transition to a DRaaS business model. S&P does not expect the business to return to growth over the next 12 have projected low- to mid-single-digit revenue declines. If recent negative operating trends were to accelerate, resulting in a weak liquidity position and a negligible operating FOCF-to-debt ratio, S&P could lower the rating. While unlikely in the near term because of the lack of growth in the business, S&P would consider revising the outlook to stable if the company is able to demonstrate evidence of successful business execution, and be on track to sustainable profitable growth such that leverage is around 4x or below. SUPERCONDUCTOR TECHNOLOGIES: Cash Is Insufficient for 2015 ---------------------------------------------------------- Superconductor Technologies Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $2.41 million on $86,000 of total revenue for the three months ended Sept. 27, 2014, compared with a net loss of $3.45 million on $229,000 of total revenue for the same period in 2013. The Company's balance sheet at Sept. 30, 2014, showed $13.8 million in total assets, $7.25 million in total liabilities, and stockholders' equity of $6.5 million. At Sept. 27, 2014, Superconductor Technologies had $1.0 million in cash and cash equivalents. The Company's cash resources will not be sufficient to fund business for the next twelve months. The Company has incurred significant net losses since inception and had an accumulated deficit of $274 million through 2013 and $280 million through Sept. 27, 2014. For the nine months ended Sept. 27, 2014, the Company incurred a net loss of $5.4 million and sustained negative cash flows from operations of $7.1 million. For all of 2013, the Company incurred a net loss of $12.2 million and had negative cash flows from operations of $8.3 million. These factors raise substantial doubt about its 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/Hki60r Austin, Tex.-based Superconductor Technologies Inc. (Nasdaq: SCON) operates in a single business segment, the research, development, manufacture and marketing of high performance products used in cellular base stations to maximize the performance of wireless telecommunications networks by improving the quality of uplink signals from mobile wireless devices. SWEET ONION TRADING: Case Summary & 17 Top Unsecured Creditors -------------------------------------------------------------- Debtor: Sweet Onion Trading Corporation P.O. Box 703 Grant, FL 32949 Case No.: 14-13792 Chapter 11 Petition Date: December 24, 2014 Court: United States Bankruptcy Court Middle District of Florida (Orlando) Debtor's Counsel: Kenneth D Herron, Jr., Esq. WOLFF, HILL, MCFARLIN & HERRON, P.A. 1851 West Colonial Drive Orlando, FL 32804 Tel: 407-648-0058 Fax: 407-648-0681 Email: kherron@whmh.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Barry Rogers, president. A list of the Debtor's 17 largest unsecured creditors is available for free at http://bankrupt.com/misc/flmb14-13792.pdf TACTICAL FIREARMS: Ex-Owner Refuses to Surrender Facebook Page -------------------------------------------------------------- Tim Cushing, writing for Techdirt.com, reports that former Tactical Firearms owner Jeremy Alcede has been arrested for contempt of court for refusing to hand over his Facebook page password to the new owners, who plan to rename the business. According to Techdirt.com, Mr. Alcede claims he was forced out of ownership by the actions of the new owner, Steven "Coe" Wilson. The report says that Mr. Wilson had refused to sign refinancing papers, which pushed the Company into Chapter 11 bankruptcy. The report states that Mr. Wilson brought in the owner of a former competitor to run the shop and has demanded the password to Mr. Alcede's Facebook page. Citing Mr. Alcede, Techdirt.com relates that the Tactical Firearms page is his personal page. The report quoted Mr. Alcede as saying, "When they said they wanted the Facebook, I explained to the attorney who was representing the company that there is no company Facebook page and there's just my personal page. And I asked her to convey that to the judge, and obviously it wasn't conveyed." Mr. Alcede has another Tactical Firearms page under Mr. Alcede's control that serves as a business/organization page, which the new owners didn't list in their bankruptcy filings, Techdirt.com reports. Mr. Alcede says in his Facebook post that he has already lost control of his tacticalfirearm.us e-mail account. Techdirt.com states that a judge has appointed a third party to tally the personal and business posts on that Facebook page to decide who owns it. Gunssavelives.net recalls that shooting center Tactical Firearms filed for Chapter 11 bankruptcy on June 27, 2014. According to the report, Mr. Alcede claimed that ICon Bank wouldn't accept a cash payment of loans. The report states that ICon Bank needed the Company to consolidate three short-term loans into a single long-term loan, which Mr. Alcede opposed. TENET HEALTHCARE: Former Fla. Gov. Jeb Bush Quits From Board ------------------------------------------------------------ John Ellis "Jeb" Bush notified the Board of Directors of Tenet Healthcare Corporation of his decision to resign from the Board, to be effective as of Dec. 31, 2014, according to a regulatory filing with the U.S. Securities and Exchange Commission. Mr. Bush is not resigning on account of any disagreement with Tenet. Upon the effectiveness of Mr. Bush's resignation, the size of the Board will be reduced from ten directors to nine. About Tenet Tenet Healthcare Corporation is a national, diversified healthcare services company with more than 105,000 employees united around a common mission: to help people live happier, healthier lives. The company operates 80 hospitals, more than 190 outpatient centers, six health plans and Conifer Health Solutions, a leading provider of healthcare business process services in the areas of revenue cycle management, value-based care and patient communications. For more information, please visit www.tenethealth.com. Tenet reported a net loss attributable to common shareholders of $134 million compared to net income attributable to common shareholders of $141 million in 2012. The Company's balance sheet at Sept. 30, 2014, showed $17.31 billion in total assets, $16.05 billion in total liabilities, $396 million in redeemable noncontrolling interests in equity of consolidated subsidiaries, and $866 million in total equity. * * * Tenet carries a 'B' IDR from Fitch Ratings, B corporate credit rating from Standard & Poor's Ratings Services and B1 Corporate Family Rating from Moody's Investors Service. TLC HEALTH: Has Until Jan. 13 to File Chapter 11 Plan ----------------------------------------------------- The Hon. Carl L. Bucki of the U.S. Bankruptcy Court for the Western District of New York approved an agreement between TLC Health Network and the Official Committee of Unsecured Creditors, wherein: 1) The Debtor's exclusive filing and solicitation periods pursuant to Bankruptcy Code section 1112(d) are extended, insofar as it prohibits the filing of, and solicitation of acceptances for, a chapter 11 plan by the Committee through Jan. 13, 2015 and March 1, 2015, respectively. 2) The Debtor and the Committee shall be permitted to stipulate to a further extension of the Debtor's exclusive filing and solicitation periods for additional periods of time, up to and including the dates requested by the Debtor in its Motion (April 13, 2015 and June 3, 2015, respectively), without the requirement of notice and a hearing, by submitting one or more stipulated orders to the Court reflecting such extensions. 3) The Debtor's exclusive filing and solicitation periods are extended as to other parties in interest, with the exception of the Committee, through April 13, 2015 and June 3, 2015. 4) An adjourned hearing on the Motion shall be held on Jan. 11, 2015 at 1:00 p.m., unless prior to that time, the Court is advised that a stipulation further extending the exclusive periods has been or will be submitted to the Court for consideration. The Committee objected before the Court that the Debtor's request to extend its exclusive periods citing uncertainty of the Debtor's financial condition after the first quarter of 2015, and the expressed interest of two purchasers that must be explored diligently, the Committee believes that the requested extension of the exclusive periods for an additional four months is too long under the circumstances. The Committee cited, in lieu of the four-month extension requested by the Debtor, it would propose a one-month extension of the Debtor's exclusive periods. This shortened period would allow the Committee and other parties in interest to determine the feasibility of the various potential outcomes in this case, including the Debtor's stand-alone restructuring proposal and the sale of the Debtor's assets to one of the two interested purchasers. According to the Committee, in order to minimize the administrative burden that would arise with regard to additional extensions of the Debtor's exclusive periods, the Committee would also propose that a further extension of the Debtor's exclusive filing and solicitation periods for an additional period of time, up to and including the dates requested by the Debtor in its motion could be stipulated by and between the Committee and the Debtor without the requirement of notice and a hearing. 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 debt 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. TRANSGENOMIC INC: Rodney Markin Quits From Board of Directors ------------------------------------------------------------- Rodney S. Markin, M.D., Ph.D., notified Transgenomic, Inc., of his decision to resign from the Board of Directors of the Company, including from his position as Chairman of the Board, and from all committee memberships, effective as of Dec. 31, 2014. Dr. Markin's decision to resign from the Board was for personal reasons and was not due to any disagreement with the Company on any matter relating to the Company's operations, policies or practices, according to a regulatory filing with the U.S. Securities and Exchange Commission. About Transgenomic Transgenomic, Inc. -- http://www.transgenomic.com/-- is a global biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases through its proprietary molecular technologies and world-class clinical and research services. The Company is a global leader in cardiac genetic testing with a family of innovative products, including its C-GAAP test, designed to detect gene mutations which indicate cardiac disorders, or which can lead to serious adverse events. Transgenomic has three complementary business divisions: Transgenomic Clinical Laboratories, which specializes in molecular diagnostics for cardiology, oncology, neurology, and mitochondrial disorders; Transgenomic Pharmacogenomic Services, a contract research laboratory that specializes in supporting all phases of pre-clinical and clinical trials for oncology drugs in development; and Transgenomic Diagnostic Tools, which produces equipment, reagents, and other consumables that empower clinical and research applications in molecular testing and cytogenetics. Transgenomic believes there is significant opportunity for continued growth across all three businesses by leveraging their synergistic capabilities, technologies, and expertise. The Company actively develops and acquires new technology and other intellectual property that strengthens its leadership in personalized medicine. The Company reported a net loss available to common stockholders of $16.71 million in 2013, a net loss available to common stockholders of $8.98 million in 2012 and a net loss available to common stockholders of $10.79 million in 2011. The Company's balance sheet at Sept. 30, 2014, showed $30.84 million in total assets, $20.61 million in total liabilities and $10.23 million in stockholders' equity. TRIGEANT HOLDINGS: Plan Filing Exclusivity Terminated ----------------------------------------------------- U.S. Bankruptcy Judge Erik P. Kimball granted BTB Refining LLC's motion to terminate exclusive periods in which only Trigeant Holdings, Ltd., et al., may file a plan and solicit acceptances. On Nov. 24, 2014, the Court conducted a hearing on the motion, including the Debtors' objection, the joinders filed by the Debtors' proposed purchaser, Gravity Midstream Corpus Christi, LLC; and by Harry Sargeant II, Daniel Sargeant and James Sargeant (the Consenting Owners). BTB is authorized to file and pursue confirmation of the proposed plan. The order does not authorize any other party-in interest to file a plan or solicit acceptances in this case absent further order, upon motion, notice and a hearing. The confirmation of the BTB Plan will be considered on a parallel track to the Debtors' Plan. The Court's order dated Oct. 30, 2014, setting various deadlines in respect of the Debtors' Plan will be applicable to both the Debtors' Plan and the BTB Plan and modified as: Debtors' Plan BTB Plan ------------- -------- Deadline for Filing of Plan Completed Dec. 15 Dec. 15 Deadline for Fee Applications Feb. 10 Feb. 10 Deadline for Filing Ballots Accepting Not or Rejecting the Plan Feb. 12 Applicable Deadline for Objections to Confirmation Feb. 13 Feb. 13 Deadline for Objections to Final Not Approval of Disclosure Statement Feb. 13 Applicable Proponent's Deadline for Filing Proponent's Report and Confirmation Affidavit Feb. 13 Feb. 13 Proponent's Deadline for Filing Response to Any Objection Feb. 17 Feb. 17 Deadline for Delivery of Binding Feb. 19-20; Feb. 19-20; Commitment Letter (With No Due Feb. 23-24 Feb. 23-24 Diligence Condition), Delivery of $1.5 Million Deposit Which will Be Nonrefundable in Case of Breach By Proposed Buyer, and Elimination of Financing and Due Diligence Contingencies in Asset Purchase Agreement Satisfied Jan. 30, 2015 Hearing on Final Approval of Disclosure Statement (If Applicable), Confirmation of Plan, and Fee Applications Discovery in respect of the BTB Plan will be conducted on a parallel track as discovery in respect of the Debtors' Plan. The deadline to serve any written discovery (including requests for production of documents, interrogatories, and requests for admission is set for Dec. 15. The last date for depositions will be Feb. 12. BTB, a creditor, requested for the termination of the Debtors' exclusive periods because the Debtor Plan (i) fails to maximize the value of the Debtors' assets; (ii) calls for complex and burdensome litigation over the rights to the dock that is adjacent to the Trigeant refinery in Corpus Christi, Texas; (iii) discriminates against minority equity interests; and (iv) is patently nonconfirmable. The BTB Plan, cures all of these deficiencies. The BTB Plan is based upon a transaction where the buyer, Conversion Refining LLC, a wholly ?owned BTB subsidiary, will purchase the Refinery, free and clear of all liens, claims, and interests, for the sum of $105,000,000, which sum comprises (i) a credit bid of BTB's first lien on the refinery, which BTB will contribute to CR LLC; (ii) a credit bid of PDVSA's second lien on the Refinery, which BTB has the right to, and will, contribute to CR LLC; and (iii) cash. In addition, BTB will contribute to CR LLC all of its contractual and legal rights relative to use of the dock adjacent to the refinery. The Consenting Owners, in their joinder to the Debtors' objection, stated that BTB Plan is patently not confirmable. The Debtors, in their objection, stated that BTB has already has violated exclusivity and must not be rewarded by a grant of termination. About Trigeant Holdings Trigeant, owner of a Corpus Christi, Texas oil refinery, provides fuel and asphalt products to the housing and transportation industries. The company is owned by Palm Beach, Florida billionaire Harry Sargeant III and members of his family. On Nov. 26, 2014, Trigeant filed its first bankruptcy In re Trigeant Ltd., 13-38580. The case was dismissed on April 1, 2014. Trigeant Holdings, Ltd., and Trigeant, LLC, filed Chapter 11 bankruptcy petitions (Bankr. S.D. Fla. Case Nos. 14-29027 and 14-29030, respectively) on Aug. 25, 2014, amid a dispute among members of the Sargeant family. Mr. Sargeant's two brothers, Daniel and James, and his father, Harry Sargeant II, sent Trigeant to bankruptcy to fend off Mr. Sargeant III's bid to seize control of the company's primary asset. The family says Mr. Sargeant III, who has a $22 million lien against the plant through a company he controls called BTB Refining LLC, is attempting to prevent the refinery from operating in an effort to lower its value and obtain ownership of it. Trigeant Holdings estimated both assets and liabilities of $50 million to $100 million. Berger Singerman LLP serves as the Debtors' counsel. The Bankruptcy Court set the general claims bar date as Oct. 17, 2014, and March 31, 2015, as the deadline by which governmental entities must file proofs of claims. The Debtors filed on Sept. 16, 2014, their Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code. The Plan is premised on the sale of substantially all of the Debtors' assets to Gravity Midstream Corpus Christi, LLC. The Plan provides that holders of Allowed Claims will be paid in full, in cash. The U.S. Trustee for Region 21 has not appointed a committee of unsecured creditors. TRIGEANT HOLDING: Can Hire Greenberg Traurig as Bankr. Counsel -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida authorized Trigeant Ltd. and its debtor-affiliates to employ Mark D. Bloom and Greenberg Traurig, P.A. as general counsel, nunc pro tunc to Oct. 27, 2014. As reported in the Troubled Company Reporter on Nov. 13, 2014, the Debtors said they anticipate that Greenberg Traurig may render these services in the Chapter 11 Cases: (a) providing legal advice with respect to the Debtors' powers and duties as debtors in possession in the continued operation of their business and management of their property; (b) negotiating, drafting, and pursuing all documentation necessary in these Chapter 11 Cases; (c) preparing on behalf of the Debtors, all applications, motions, answers, orders, reports, and other legal papers necessary to the administration of the Debtors' estates; (d) appearing in Court and protecting the interests of the Debtors before the Court; (e) assisting with any disposition of the Debtors' assets, by sale or otherwise; (f) negotiating and taking all necessary or appropriate actions in connection with a plan or plans of reorganization and all related documents and transactions contemplated therein; (g) attending all meetings and negotiating with representatives of creditors, the U.S. Trustee, and other parties-in- interest; (h) providing legal advice regarding bankruptcy law, corporate law, corporate governance, securities, real estate, energy and natural resources, employment, transactional, tax, labor, litigation, intellectual property, and other issues to the Debtors in connection with the Debtors' ongoing business operations; and (i) performing all other legal services for and providing all other necessary legal advice to the Debtors which may be necessary and proper in these Chapter 11 Cases. Greenberg Traurig will be paid at these hourly rates: Mark D. Bloom $745 Scott M. Grossman $530 John R. Dodd $385 Maribel Fontanez, Paralegal $250 Shareholders $350-$1,150 Of Counsel $350-$1,115 Associates $100-$735 Legal Assistants/Paralegals $100-$380 Other attorneys and paralegals will render services to the Debtors as needed, with the understanding that absent prior approval of the Debtors no such attorney will bill at an hourly rate in excess of $745 in these cases. Greenberg Traurig will also be reimbursed for reasonable out-of- pocket expenses incurred. Greenberg Traurig has requested, but has yet to receive, a post- petition retainer in the amount of $25,000 from property of the Debtors' estates, but has neither sought nor received any other form of compensation for the proposed services to be rendered. Mark D. Bloom, principal shareholder of Greenberg Traurig, 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. About Trigeant Holdings Trigeant Holdings, Ltd., and Trigeant, LLC, filed separate Chapter 11 bankruptcy petitions (Bankr. S.D. Fla. Case Nos. 14-29027 and 14-29030, respectively) on Aug. 25, 2014. Berger Singerman LLP serves as the Debtor's counsel. Trigeant Holdings estimated both assets and liabilities of $50 million to $100 million. The Debtors filed on Sept. 16, 2014, their Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code. The Plan is premised on the sale of substantially all of the Debtors' assets to Gravity Midstream Corpus Christi, LLC. The Plan provides that holders of Allowed Claims will be paid in full, in cash. The U.S. Trustee for Region 21 has not appointed a committee of unsecured creditors. TRUMP ENTERTAINMENT: Lease Decision Period Extended to April 7 -------------------------------------------------------------- Trump Entertainment Resorts Inc. and its debtor affiliates sought and obtained an order extending through and including April 7, 2015, their statutory deadline to assume or reject real property leases. The order is without prejudice to the rights of the Debtors and their estates to seek a further extension of their lease decision period with the consent of the affected lessors. About Trump Entertainment Resorts Trump Entertainment Resorts Inc., owner of the Atlantic City Boardwalk casinos that bear the name of Donald Trump, returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 14-12103) on Sept. 9, 2014, with plans to shutter its casinos. TER and its affiliated debtors own and operate two casino hotels located in Atlantic City, New Jersey. TER said it will close the Trump Taj Mahal Casino Resort by Sept. 16, 2014, and, absent union concessions, the Trump Plaza Hotel and Casino by Nov. 13, 2104. The Debtors have sought an order authorizing the joint administration of their Chapter 11 cases and the consolidation thereof for procedural purposes only. Judge Kevin Gross presides over the Chapter 11 cases. The Debtors have tapped Young, Conaway, Stargatt & Taylor, LLP, as counsel; Stroock & Stroock & Lavan LLP, as co-counsel; Houlihan Lokey Capital, Inc., as financial advisor; and Prime Clerk LLC, as noticing and claims agent. TER estimated $100 million to $500 million in assets as of the bankruptcy filing. The Debtors as of Sept. 9, 2014, owe $285.6 million in principal plus accrued but unpaid interest of $6.6 million under a first lien debt issued under their 2010 bankruptcy-exit plan. The Debtors also have trade debt in the amount of $13.5 million. The U.S. Trustee for Region 3 on Sept. 23 appointed seven creditors of Trump Entertainment Resorts, Inc., to serve on the official committee of unsecured creditors. The Committee tapped Gibbons P.C. as its co-counsel, the Law Office of Nathan A. Schultz, P.C., as co-counsel, and PricewaterhouseCoopers LLP as its financial advisor. U.S. COAL: Judge Says Co. Can Begin Spending $2 Million Loan ------------------------------------------------------------ Katy Stech, writing for Daily Bankruptcy Review, reported that a bankruptcy judge said that U.S. Coal Corp. can take out a $2 million loan to keep its Kentucky coal mining operations running while executives figure out how to get the company out of bankruptcy. According to the report, with Judge Tracey Wise's approval, U.S. Coal executives can begin spending money extended by Alabama-based Porter Capital Corp. The struggling company was cut off from its $10 million bank loan earlier this year, according to documents filed in U.S. Bankruptcy Court in Lexington, Kentucky. About U.S. Coal and Licking River On May 22, 2014, an involuntary Chapter 11 petition was filed against Licking River Mining, LLC, before the United States Bankruptcy Court for the Eastern District of Kentucky. On May 23, 2014, an involuntary Chapter 11 petition was filed against Licking River Resources, Inc. and Fox Knob Coal., Inc. On June 3, 2014, an involuntary Chapter 11 petition was filed against S.M. & J., Inc. On June 4, 2014, an involuntary Chapter 11 petition was filed against J.A.D. Coal Company, Inc. On June 12, 2014, the Court entered an order for relief in each of the bankruptcy cases. On June 10, 2014, an involuntary Chapter 11 petition was filed against U.S. Coal Corporation. On June 27, 2014, the Court entered an order for relief in U.S. Coal's bankruptcy case. On Nov. 4, 2014, Harlan County Mining, LLC, Oak Hill Coal, Inc., Sandlick Coal Company, LLC, and U.S. Coal Marketing, LLC, filed petitions in the United States Bankruptcy Court for the Eastern District of Kentucky seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Chief Judge Tracey N. Wise. The Debtors are seeking to have their cases jointly administered for procedural purposes, meaning that upon entry of such an order all pleadings will be maintained on the case docket for Licking River Mining, LLC, Case No. 14-10201. U.S. Coal produces and sells thermal coal purchased primarily by utilities and trading companies and specialty coal purchased by various industrial customers and trading companies (known as "stoker" coal). U.S. Coal operates through two divisions: (1) the Licking River Division that was formed through the acquisition of LR Mining, LRR, and S.M. & J., and Oak Hill Coal, Inc. in January 2007 for $33 million., and (2) the J.A.D. Division that was formed through the acquisition of JAD and Fox Knob, and Sandlick Coal Company, LLC and Harlan County Mining, LLC in April 2008 for $41 million. Both the LRR Division and the JAD Division are located in the Central Appalachia region of eastern Kentucky. The LRR Division has approximately 26.3 million tons of surface reserves under lease. The JAD Division has 24.4 million tons of surface reserves, both leased and owned real property. At present, U.S. Coal has three surface mines in operation between the LRR Division and JAD Division. The Official Committee of Unsecured Creditors has tapped Barber Law PLLC and Foley & Lardner as attorneys. U-VEND INC: Incurs $286K Net Loss in Q3 Ending Sept. 30 ------------------------------------------------------- U-Vend, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $286,000 on $86,500 of total revenue for the three months ended Sept. 30, 2014, compared with a net loss of $101,000 on $nil of total revenue for the same period in 2013. The Company's balance sheet at Sept. 30, 2014, showed $1.72 million in total assets, $2.32 million in total liabilities, and a stockholders' deficit of $600,000. As of Sept. 30, 2014, the Company had cash and cash equivalents of $0.4 million and a working capital deficit of $32.0 million. The Company incurred a loss of $1.45 million during the nine months ended Sept. 30, 2014, has incurred accumulated losses totaling $3.23 million, and has a working capital deficit of $1.11 million at Sept. 30, 2014. These factors, among others, indicate that the Company may be unable to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/LfJL85 U-Vend, Inc., engages in the business of developing, marketing and distributing various next-generation self-serve electronic kiosks in a variety of locations ranging from neighborhood grocery stores, drug stores, mass merchants, malls, hospitals and other retail locations. It also owns and operates a kiosk with a particular focus on healthy vending. The company was founded by Raymond J. Meyers on March 26, 2007 and is headquartered in Santa Monica, Calif. ULTIMATE NUTRITION: Has Interim Authority to Use TD Bank Cash ------------------------------------------------------------- Judge Albert S. Dabrowski of the U.S. Bankruptcy Court for the District of Connecticut gave Ultimate Nutrition, Inc., et al., interim authority to use funds that constitute cash collateral of TD Bank, N.A., pursuant to prepetition financing arrangements. The Debtors are authorized to use cash collateral to pay actual, necessary and ordinary operating expenses not to exceed $4,716,378. TD extended prepetition financing to the Debtors and certain of their affiliates pursuant to the following: (a) a revolving credit and term loan agreement entered into on Jan. 20, 2012, under which the amount of approximately $8,007,000 was due and owing as of the Petition Date; (b) a term loan evidenced by a term note dated Jan. 20, 2012, under which approximately $2,417,000 was due and owing as of the Petition Date; (c) an export revolving line of credit facility entered into on March 17, 2009, under which approximately $1,662,000 was due and owing as of the Petition Date; (d) an equipment line of credit entered into Nov. 8, 2011, under which approximately $1,084,000 was due and owing as of the Petition Date; (e) unlimited continuing guaranty agreements, each dated March 17, 2009, under which approximately $1,258,000 was due and owing as of the Petition Date. The Cash Collateral Motion is set for a further hearing on Jan. 15, 2015, at 10:00 a.m. A full-text copy of the Interim Cash Collateral Order is available at http://bankrupt.com/misc/ULTIMATEcashord1219.pdf About Ultimate Nutrition Ultimate Nutrition, Inc., develops and distributes nutritional supplements for body building, enhanced athletic performance and fitness. The products are sold worldwide in over 100 countries. The business was founded in 1979 by the late Victor H. Rubino, one of the top amateur power lifters in the United States at that time. The company has two facilities located in Farmington, Connecticut, one product distribution center in New Britain, Connecticut and a research and development center in West Palm Beach, Florida. Ultimate Nutrition and affiliate Prostar, Inc., sought Chapter 11 bankruptcy protection (Bankr. D. Conn. Case Nos. 14-22402 and 14-22403) on Dec. 17, 2014. The Debtors have tapped Pullman & Comley, in Bridgeport, Connecticut, as counsel; LaQuerre Michaud & Company, LLC, as accountant; and Marcum LLP, as financial advisor. Ultimate Nutrition estimated $10 million to $50 million in assets and debt. The schedules of assets and liabilities and statement of financial affairs are due Dec. 31, 2014. The 11 U.S.C. Sec. 341(a) meeting of creditors is slated for Jan. 14, 2015. The deadline to file claims is April 14, 2015. UNITED CONTINENTAL: Moody's Hikes Corporate Family Rating to B1 --------------------------------------------------------------- Moody's Investors Service upgraded certain debt ratings of United Continental Holdings, Inc. ("UCH"), including the Corporate Family Rating to B1 from B2, and most of the ratings on the Enhanced Equipment Trust Certificates ("EETCs"). Moody's affirmed the senior secured corporate debt rating at Ba2, and downgraded the senior unsecured corporate debt rating to B3 from B2. The Speculative Grade Liquidity Rating is affirmed at SGL-1. The rating outlook is positive. Ratings Rationale The upgrade of the Corporate Family rating to B1 recognizes that operating improvements realized so far should lead to stronger profitability in 2015 and beyond, with the company turning solidly free cash flow positive. "Moody's believes that increased profits and cash flow, with continued debt reduction as UCH progresses towards its $15 billion debt target should result in further strengthening of credit metrics," said Moody's Senior Credit Officer, Jonathan Root. "As UCH continues to execute its multi- year Project Quality program to control costs and hones its operational effectiveness through such programs as managing capacity through the seasons, the airline is expected to improve revenue management practices and modestly grow yields. A sustained lower fuel price will also meaningfully contribute to stronger financial results," continued Root. The affirmation of the senior secured and downgrade of the senior unsecured ratings result from the repayments of over $1.3 billion of unsecured and/or subordinated debt and less pension underfunding that change the liability claims structure. A proportionately greater amount of senior secured claims are in UCH's structure after the early repayments of various debt obligations. Moody's expect this trend to continue as the company is likely to further reduce unsecured debt and increase secured debt. With the senior secured obligations representing a larger portion of funded debt and no subordinated debt that is junior to the unsecured claims, the unsecured debt has a higher expected loss resulting in a rating that is two notches below the CFR. The SGL-1 rating reflects Moody's view that UCH will continue to maintain very good liquidity. The company should exit 2014 with about $4.5 billion of cash, $1.35 billion of revolver availability and more than $6.0 billion of unencumbered assets. With a sustained lower cost of fuel in 2015, Moody's expects at least $700 million of free cash flow in 2015, probably much more if fuel costs remain at their current levels. Of the 22 A-tranche EETCs outstanding, 19 have been upgraded in step with the upgrade of the Corporate Family rating, two have been affirmed (Continental: 1998-3, 1999-1) and one was downgraded to Ba1 (UAL: 2007-1). Of the 14 B-tranches outstanding, eleven have been upgraded, two were affirmed (Continental 1999-1, 2007-1) and one was downgraded (UAL 2007-1). The affirmations of the Baa2 ratings on the CAL Series 1998-3 and CAL 1999-1 A-tranches and Ba1 rating on the CAL 1999-1 B-tranche reflect Loan to Values ("LTV"s) that are elevated relative to other A-tranches that are rated Baa1 or B tranches rated inthe Ba rating category. These specific transactions also lack cross- default and cross-collateralization protection, and the aircraft that comprise the collateral are aging. The United 1998-3 EETC has only two aircraft, and 17 aircraft in the United 1999-1 EETC are about 16 years old. Nonetheless, the affirmation also considers that the aircraft models are relevant to the network and the strengthening corporate credit profile. The affirmation of CAL 2007-1 B-tranche reflects an LTV that is elevated relative to those of other of the company's B-tranche EETCs. The downgrade of the A-tranche and B-tranche ratings of the United 2007-1 EETC to Ba1 and B1, respectively, reflect Moody's estimate of loan-to-value approaching 90% and over 100%, respectively, levels meaningfully weaker than originally expected. There would be little cushion on the A-tranche following any rejection of this transaction pursuant to Section 1110 of the US Bankruptcy Code. The collateral of 13 aircraft includes three 1998 vintage B747- 400s whose market values have faced significant secular declines. The 747-400 values are likely to continue declining because of availability of more efficient wide body airplanes and limited air freight demand which limit freighter conversions. Moody's anticipates little improvement in the LTV's because the 747s remain in the transaction until the scheduled maturity date in July 2022. B777s and B767s round out the collateral pool for United 2007-1, with an average age of the collateral at about 15 years. This transaction is cross-defaulted and cross- collateralized, however. An upgrade of the ratings could occur if UCH continues to improve unit revenues and to limit growth in non-fuel unit costs to expand operating earnings and operating cash flow generation. Sustained credit metrics such as an EBITDA margin that approaches 20%, FFO + Interest to Interest of about 4.5 times, Debt to EBITDA that approaches 4.0 times and the expectation of sustained free cash flow well in excess of $600 million could also result in a higher rating. A balanced approach between returns to shareholders, reducing leverage and sustaining very good liquidity would be an important consideration in any potential upgrade. The positive outlook could be removed and or the ratings downgraded if UCH is unable to maintain its EBITDA margin above 17% or if unrestricted cash fell below $2.5 billion or aggregate liquidity (cash and availability on revolving credit facilities) was sustained below $4.0 billion. The expectation of negative free cash flow, Debt to EBITDA approaching 6.0 times or EBIT to interest below two times could also lead to a downgrade Changes in UCH's Corporate Family rating, in Moody's opinion of the importance of particular aircraft models to UCH's network, or in Moody's estimates of aircraft market values which will affect estimates of loan-to-value can result in changes to EETC ratings. United Continental Holdings, Inc. (NYSE: UAL) is the holding company for United Airlines, Inc. ("United"). United and United Express operate an average of 5,100 flights a day to 374 airports across six continents. Moody's forecast revenue of about $39 billion in 2014 and Debt to EBITDA of about 4.8 times at December 31, 2014. Upgrades: Issuer: United Continental Holdings, Inc. Probability of Default Rating, Upgraded to B1-PD from B2-PD Corporate Family Rating (Local Currency), Upgraded to B1 from B2 Outlook Actions: Issuer: United Airlines, Inc. Outlook, Remains Positive Issuer: United Continental Holdings, Inc. Outlook, Remains Positive Upgrades: Issuer: United Air Lines, Inc. Senior Secured Enhanced Equipment Trust Ser. 2009-2B, Upgraded to Ba2 from Ba3 Senior Secured Enhanced Equipment Trust Ser. 2009-2A, Upgraded to Baa2 from Baa3 Senior Secured Pass-Through Ser. 2009-1, Upgraded to Baa1 from Baa2 Issuer: United Airlines, Inc. Senior Secured Enhanced Equipment Trust Ser. 2012-3 Cl. C, Upgraded to Ba3 from B1 Senior Secured Enhanced Equipment Trust Ser. 2005-ERJ1, Upgraded to Ba3 from B1 Senior Secured Enhanced Equipment Trust Ser. 2000-1 Cl. B, Upgraded to Ba1 from Ba3 Senior Secured Enhanced Equipment Trust Ser. 1997-4B, Upgraded to Ba1 from Ba2 Senior Secured Enhanced Equipment Trust Ser. 2012-1 Cl. B, Upgraded to Ba1 from Ba2 Senior Secured Enhanced Equipment Trust Ser. 2010-1 Cl. B, Upgraded to Ba1 from Ba2 Senior Secured Enhanced Equipment Trust Ser. 2012-2 Cl. B, Upgraded to Ba1 from Ba2 Senior Secured Enhanced Equipment Trust Ser. 2009-2B, Upgraded to Ba1 from Ba2 Senior Secured Enhanced Equipment Trust Ser. 1999-2 Cl. B, Upgraded to Ba1 from Ba2 Senior Secured Enhanced Equipment Trust Ser. 2000-2 Cl. B, Upgraded to Ba2 from Ba3 Senior Secured Enhanced Equipment Trust Ser. 1998-1B,Upgraded to Baa3 from Ba2 Senior Secured Enhanced Equipment Trust Ser. 2001-B, Upgraded to Baa3 from Ba1 Senior Secured Enhanced Equipment Trust Ser. 2009-2A, Upgraded to Baa1 from Baa2 Senior Secured Enhanced Equipment Trust Ser. 2000-1 Cl. A1, Upgraded to Baa1 from Baa2 Senior Secured Enhanced Equipment Trust Ser. 1998-1A, Upgraded to Baa1 from Baa2 Senior Secured Enhanced Equipment Trust Ser. 1997-4A, Upgraded to Baa1 from Baa2 Senior Secured Enhanced Equipment Trust Ser. 2012-1 Cl.A, Upgraded to Baa1 from Baa2 Senior Secured Enhanced Equipment Trust Ser. 2012-2 Cl. A, Upgraded to Baa1 from Baa2 Senior Secured Enhanced Equipment Trust Ser. 2010-1 Cl. A, Upgraded to Baa1 from Baa2 Senior Secured Enhanced Equipment Trust Ser. 2001-A1, Upgraded to Baa1 from Baa2 Senior Secured Enhanced Equipment Trust Ser. 1997-1 Cl. A, Upgraded to Baa2 from Baa3 Senior Secured Enhanced Equipment Trust Ser. 1999-2 Cl. A1, Upgraded to Baa1 from Baa2 Senior Secured Enhanced Equipment Trust Ser. 2000-2 Cl. A1, Upgraded to Baa2 from Baa3 Senior Secured Enhanced Equipment Trust Ser. 1999-2 Cl. A2, Upgraded to Baa1 from Baa2 Senior Secured Equipment Trust Ser. 2003-ERJ1 Cl. A, Upgraded to Ba3 from B1 Senior Secured Equipment Trust Ser. 2004-ERJ1 Cl. A, Upgraded to Ba3 from B1 Senior Secured Equipment Trust Ser. 2009-1A, Upgraded to Baa1 from Baa2 Senior Secured Equipment Trust Ser. 2007-1 Cl. A, Upgraded to Baa1 from Baa2 Affirmations: Issuer: United Airlines, Inc. Senior Secured Bank Credit Facility, Affirmed Ba2 (LGD2) Senior Secured Enhanced Equipment Trust Ser. 1999-1B, Affirmed Ba1 Senior Secured Enhanced Equipment Trust Ser. 1999-1A, Affirmed Baa2 Senior Secured Enhanced Equipment Trust Ser. 1998-3 Cl. A1, Affirmed Baa2 Senior Secured Equipment Trust Ser. 2007-1 Cl. B, Affirmed Ba2 Issuer: United Continental Holdings, Inc. Speculative Grade Liquidity Rating, Affirmed SGL-1 Downgrades: Issuer: Cleveland (City of) OH Senior Unsecured Revenue Bonds, Downgraded to B3 (LGD5) from B2 (LGD4) Issuer: Denver (City & County of) CO Senior Unsecured Revenue Bonds, Downgraded to B3 (LGD5) from B2 (LGD4) Issuer: Harris County Industrial Dev Corp, TX Senior Unsecured Revenue Bonds, Downgraded to B3 (LGD5) from B2 (LGD4) Issuer: Hawaii Department of Transportation Senior Unsecured Revenue Bonds, Downgraded to B3 (LGD5) from B2 (LGD4) Issuer: Houston (City of) TX Senior Unsecured Revenue Bonds, Downgraded to B3 (LGD5) from B2 (LGD4) Issuer: New Jersey Economic Development Authority Senior Unsecured Revenue Bonds, Downgraded to B3 (LGD5) from B2 (LGD4) Issuer: Port Authority of New York and New Jersey Revenue Bonds (Local Currency) Dec 1, 2015, Downgraded to B3 (LGD5) from B2 (LGD4) Issuer: United Air Lines, Inc. Senior Secured Pass-Through Ser. 2007-1 Cl. B, Downgraded to B1 from Ba3 Senior Secured Pass-Through Ser. 2007-1 Cl. A, Downgraded to Ba1 from Baa3 Issuer: United Airlines, Inc. Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to B3 (LGD5) from B2 (LGD4) Issuer: United Continental Holdings, Inc. Multiple Seniority Shelf, Downgraded to (P)B3 from (P)B2 Senior Unsecured Regular Bond/Debenture, Downgraded to B3 (LGD5) from B2 (LGD4) The methodologies used in these ratings were Enhanced Equipment Trust and Equipment Trust Certificates published in December 2010 and Global Passenger Airlines published in May 2012. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. UNIVAR N.V.: Bank Debt Trades at 4% Off --------------------------------------- Participations in a syndicated loan under which Univar N.V. is a borrower traded in the secondary market at 96.46 cents-on-the- dollar during the week ended Friday, December 27, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 1.40 percentage points from the previous week, The Journal relates. Univar N.V. pays 350 basis points above LIBOR to borrow under the facility. The bank loan matures on June 30, 2017. The bank debt carries Moody's B3 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 212 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. UNIVERSITY GENERAL: Closes UGH-Dallas Hospital ---------------------------------------------- University General Health System, Inc., announced the closing of its University General Hospital - Dallas (Dufek Massif Hospital Corporation). As previously reported, the Company has invested almost $20 million in South Dallas during the past two years to revive this hospital as a profitable provider of acute care medical services within the community, to no avail. The Company has been working with lenders, creditors and capital sources for months to secure an agreement that would avoid the closure of UGH - Dallas. None of these negotiations have been successful, and funding has not been readily available. In an effort to maintain the continued success of its flagship Houston hospital, University General Health System, Inc., was reluctantly forced to close the Dallas facility on Friday, Dec. 19, 2014. The Company continues to work with lenders on an orderly closing process, including the payment of UGH-Dallas' payroll obligations. "In December 2012, University General Health System purchased South Hampton Hospital in Dallas, renamed the facility UGH - Dallas, and immediately began investing the necessary capital to recreate a hospital that the community could be proud of," stated Hassan Chahadeh, M.D., the Company's Chairman and chief executive officer, in a previous press release. "This decision is one of the most difficult and challenging in the Company's history, and one that we were not anticipating, but we were left with no other options." "We expect to proceed with the sale of UGH-Dallas, as interest has been very high since our previous announcement of the proposed sale," continued Dr. Chahadeh. "We also believe the Dallas closing will advance the Company's overall restructuring efforts by consolidating our future business operations around Houston's University General Hospital as our flagship facility. Ultimately, the pending sale of our Senior Living Segment, combined with the disposition of UGH-Dallas, should allow the Company to eliminate almost $60 million in debt." About University General University General Health System, Inc., located in Houston, Texas, is a diversified, integrated multi-specialty health care provider that delivers concierge physician- and patient-oriented services. UGHS currently operates one hospital and two ambulatory surgical centers in the Houston area. It also owns a revenue management company, a hospitality service provider and facility management company, three senior living facilities and manages six senior living facilities. University General reported a net loss attributable to common shareholders of $35.70 million on $163.98 million of total revenues for the year ended Dec. 31, 2013, as compared with a net loss attributable to common shareholders of $3.97 million on $113.22 million of total revenues for the year ended Dec. 31, 2012. As of Dec. 31, 2013, the Company had $183.26 million in total assets, $186.91 million in total liabilities, $2.97 million in series C convertible preferred stock, and a $6.61 million total deficit. Moss, Krusick & Associates, LLC, in Winter Park, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has negative working capital and relative low levels of cash and cash equivalents. These conditions raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. VANN'S INC: Ex-Employees Settle Lawsuit Against Insiders -------------------------------------------------------- Patrick Fitzgerald, writing for Daily Bankruptcy Review, reported that the bankruptcy trustee for the estate of Montana electronics retailer Vann's Inc. has settled a lawsuit against the company's former top brass for $15.5 million. According to the report, the settlement, filed in Montana bankruptcy court, will benefit Vann's creditors and former employees, who owned the company under employee-stock-ownership plan. About Vann's Inc. Vann's Inc. -- http://www.vanns.com/-- a retailer of appliances and consumer electronics with five stores in Montana, filed for Chapter 11 protection (Bankr. D. Mont. Case No. 12-61281) in Butte, Montana, on Aug. 5, 2012. Founded in 1961, Vann's also owned outdoor clothing and sports products at http://www.bigskycountry.com/ Vann's was owned by an employee stock ownership plan trust. By the Chapter 11 bankruptcy petition date, Vann's employed 160 persons in 5 retail stores, and Apple designed mobile store in Missoula (OnStore), a warehouse in Lolo and a call center in Missoula. Vann's sold appliances, consumer goods and related products together with outdoor equipment, and clothing, footwear for outdoor activities. E-Commerce sales represented one half of total company sales. In 2011, Vann's generated a total of $100.8 million in sales, but suffered a net loss of $1.3 million. Substantial losses began in 2008. Vann's Inc. disclosed assets of $17.6 million and liabilities of $14.4 million. Assets include $12.2 million cost-value of inventory plus $1 million in current accounts receivable. The Company owes $4 million to First Interstate Bank. It also owes $4.8 million on an inventory loan from GE Commercial Distribution Finance Corp. Bankruptcy Judge John L. Peterson presides over the case. Vann's hired Perkins Coie LLP's Alan D. Smith, Esq., and Brian A. Jennings, Esq., as counsel; and Hamstreet & Associates, LLC, as turnaround and restructuring advisors. Prepetition lender GE Commercial Distribution Finance Corporation is represented by Gary Vincent, Esq., at Husch Blackwell LLP, and the Law Offices of John P. Paul, PLLC. First Interstate Bank, the DIP Lender, is represented by Benjamin P. Hursh, Esq., at Crowley Fleck PLLP. The U.S. Trustee formed a seven-member creditors committee. The Committee is represented by Halperin Battagia Raicht, LLP, and Ross Richardson. The Court appointed Montana lawyer Richard J. Samson as trustee for Vann's on Oct. 3, 2012. On Oct. 26, the Court approved the stipulation between the Chapter 11 Trustee, First Interstate Bank, GE, the Creditors' Committee and U.S. Trustee to convert the case to Chapter 7. The Court approved the sale of five Vann's retail stores to Texas- based McMagic Partners LP. Pursuant to the $4.5 million deal, McMagic acquired the retail electronic and appliance stores in Missoula, Hamilton, the Flathead Valley, Billings and Bozeman. McMagic is owned by a Florida-based company that runs a chain of electronics stores in the Southwest. VARIANT HOLDING: Wants Court to Set March 17 as Claim Bar Date -------------------------------------------------------------- Variant Holding Company LLC asks the U.S. Bankruptcy Court for the District of Delaware to set March 17, 2015, at 4:00 p.m. (Eastern Time) as deadline for creditors and all governmental units to file their proofs of claim. A hearing is set for Jan. 14, 2015, at 11:30 a.m. (Eastern Time) to consider the Debtor's request. Objections, if any, are due Dec. 29, 2014, at 4:00 (Eastern Time). About Variant Holding Variant Holding Company, LLC, commenced bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code in Delaware (Case No. 14-12021) on Aug. 28, 2014, without stating a reason. Tucson, Arizona-based Variant Holding estimated $100 million to $500 million in assets and less than $100 million in debt. The Debtor has tapped Peter J. Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, as counsel. Members holding the majority of the interests in the company, namely Conix WH Holdings, LLC, Conix Inc., Numeric Holding Company, LLC, Walkers Dream Trust, and Variant Royalty Group, LP, signed the resolution authorizing the bankruptcy filing. VARIANT HOLDING: Has Until March 2015 on Lease-Related Decision --------------------------------------------------------------- The Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware gave Variant Holding Company LLC until March 26, 2015, to decide whether to assume or reject unexpired leases under which it is the lessee. About Variant Holding Variant Holding Company, LLC, commenced bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code in Delaware (Case No. 14-12021) on Aug. 28, 2014, without stating a reason. Tucson, Arizona-based Variant Holding estimated $100 million to $500 million in assets and less than $100 million in debt. The Debtor has tapped Peter J. Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, as counsel. Members holding the majority of the interests in the company, namely Conix WH Holdings, LLC, Conix Inc., Numeric Holding Company, LLC, Walkers Dream Trust, and Variant Royalty Group, LP, signed the resolution authorizing the bankruptcy filing. VERMILLION INC: Has Equity Financing of up to $18.9 Million ----------------------------------------------------------- Vermillion, Inc., announced that investors including Oracle Investment Management, Jack W. Schuler, Birchview Fund LLC and several Vermillion directors have agreed to purchase approximately $10.5 million of unregistered shares of Vermillion's common stock and warrants to purchase unregistered shares of Vermillion common stock in a private placement. Under the terms of the private placement, Vermillion has agreed to sell an aggregate of 6,944,445 shares of its common stock at the price of $1.44 per share, the closing price quoted on NASDAQ on Dec. 18, 2014. In addition, the investors will receive warrants to purchase up to an aggregate of 4,166,659 shares of Vermillion common stock at an exercise price of $2.00 per share. The warrants become exercisable six months after the closing of the private placement and have a term of three years from the date of issuance. If and when the warrants are exercised, the company will realize an additional $8.3 million in proceeds, bringing the total investment to approximately $18.9 million, before transaction costs. In connection with the transaction, Vermillion agreed to use commercially reasonable efforts to file as soon as reasonably practicable but no later than 60 days after the closing a registration statement with the Securities and Exchange Commission to register the resale of both the shares and the shares underlying the warrants issued at the closing. The private placement is expected to close on or about Dec. 23, 2014, subject to customary closing conditions. The proceeds will be used for working capital and general corporate purposes. "We are pleased with the success of this capital raise. It will provide the funds necessary to propel our commercial transition," said James LaFrance, Chairman, president and chief executive officer of Vermillion. "With this additional round of financing, we are also suspending our at-the-market offering." "I am very excited about the year we have in front of us. This investment represents a commitment from our current investors in our "new" team and five year strategy. It is a recognition of our skills and expertise to become a leader in proprietary diagnostic and bio-analytical solutions for the gynecological disease. Our goal is to improve the quality of life one patient at a time, and there are significant unmet clinical needs in gynecologic disease, starting with ovarian cancer," said Valerie Palmieri, incoming president and chief executive officer of Vermillion. The funds will enable Vermillion to expedite its Ova2 launch, as well as build the Company's Adnexal mass registry, which is the foundation for portfolio and market expansion. About Vermillion Vermillion, Inc., is dedicated to the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients. Vermillion, along with its prestigious scientific collaborators, has diagnostic programs in oncology, hematology, cardiology and women's health. The Company filed for Chapter 11 on March 30, 2009 (Bankr. D. Del. Case No. 09-11091). Vermillion's legal advisor in connection with its successful reorganization efforts wass Paul, Hastings, Janofsky & Walker LLP. Vermillion emerged from bankruptcy in January 2010. The Plan called for the Company to pay all claims in full and equity holders to retain control of the Company. Vermillion incurred a net loss of $8.81 million in 2013, a net loss of $7.14 million in 2012 and a net loss of $17.79 million in 2011. As of Sept. 30, 2014, Vermillion had $18.40 million in total assets, $5.83 million in total liabilities and $12.57 million in total stockholders' equity. VERMILLION INC: Larry Feinberg Reports 18.8% Stake as of Dec. 23 ---------------------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Larry N. Feinberg and his affiliates disclosed that as of Dec. 23, 2014, they beneficially owned 8,112,182 shares of common stock of Vermillion, Inc., representing 18.82 percent based on a total of 43,110,014 shares of common stock outstanding as of Dec. 18, 2014, according to information furnished by Vermillion on Dec. 23, 2014. A copy of the regulatory filing is available for free at http://is.gd/xYysqq About Vermillion Vermillion, Inc., is dedicated to the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients. Vermillion, along with its prestigious scientific collaborators, has diagnostic programs in oncology, hematology, cardiology and women's health. The Company filed for Chapter 11 on March 30, 2009 (Bankr. D. Del. Case No. 09-11091). Vermillion's legal advisor in connection with its successful reorganization efforts wass Paul, Hastings, Janofsky & Walker LLP. Vermillion emerged from bankruptcy in January 2010. The Plan called for the Company to pay all claims in full and equity holders to retain control of the Company. Vermillion incurred a net loss of $8.81 million in 2013, a net loss of $7.14 million in 2012 and a net loss of $17.79 million in 2011. As of Sept. 30, 2014, Vermillion had $18.40 million in total assets, $5.83 million in total liabilities and $12.57 million in total stockholders' equity. VIGGLE INC: Obtains $2 Million Loan From Chairman and CEO --------------------------------------------------------- Robert F.X. Sillerman, the executive chairman and chief executive officer of Viggle Inc., made an unsecured demand loan to the Company totalling $2,000,000, bearing interest at the rate of 12% per annum. The Company intends to use the proceeds from the Loan to fund working capital requirements and for general corporate purposes. Because Mr. Sillerman is a director, executive officer and greater than 10% stockholder of the Company, a majority of the Company's independent directors approved the transaction. About Viggle New York City-based Viggle Inc. is a loyalty marketing company. The Company has developed a loyalty program for television that gives people real rewards for checking into the television shows they are watching on most mobile operating system. Viggle users can redeem their points in the app's rewards catalog for items such as movie tickets, music, or gift cards. Viggle reported a net loss of $68.4 million on $18 million of revenues for the year ended June 30, 2014, compared with a net loss of $91.4 million on $13.9 million of revenues for the year ended June 30, 2013. BDO USA, LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2014. The independent auditors noted that the Company has suffered recurring losses from operations and at June 30, 2014, has a deficiency in working capital that raises substantial doubt about its ability to continue as a going concern. VILLAGE GREEN: Court Affirms Dismissal of Suit vs. Fannie Mae ------------------------------------------------------------- Judge S. Thomas Anderson of the U.S. District Court for the Western District of Tennessee affirmed the Bankruptcy Court's orders in the appellate case captioned Village Green I, GP v. Federal National Mortgage Association, Case No. 14-2351-STA-TMP. The District Court finds no error in its previous rulings, decisions which form the basis for Village Green's appeal of the Bankruptcy Court's sua sponte dismissal of the bankruptcy case and decision to lift the automatic stay. Although the parties have requested oral argument, Judge Anderson finds that oral argument would not assist the District Court in reaching its decision. This is the third appeal in this matter from a decision of the Bankruptcy Court. The District Court has set out the factual and procedural background of the case in its previous opinions in Federal National Mortgage Association v. Village Green I, GP, 483 B.R. 807 (W.D. Tenn. 2012) and in Federal National Mortgage Association v. Village Green I, GP, No. 13-2643-STA, 2014 WL 288974 (W.D. Tenn. Jan. 27, 2014). In its appeal, Village Green argues that the Bankruptcy Court's final disposition of the case was the inevitable consequence of the District Court's decisions in the previous appeals. Or as Village Green explains in its opening brief, "although Village Green is technically appealing from the Bankruptcy Court's dismissal of its Bankruptcy case, the substance of Village Green's appeal is addressed to rulings made by this Court in Village Green II." According to Village Green, the District Court wrongly decided the issues in the two earlier appeals, improperly set aside the Bankruptcy Court's confirmation of Village Green's plan, and remanded the case to the Bankruptcy Court with erroneous instructions. In this appeal Village Green asks the District Court to correct its previous rulings and remand the case to the Bankruptcy Court with instructions to confirm Village Green's plan. In its response, Fannie Mae first argues that Village Green's artificial impairment argument is irrelevant. Fannie Mae points out that in Village Green I the District Court concluded that the doctrine of artificial impairment continued to be good at law even after the 1994 amendments to the Code and reversed the Bankruptcy Court's conclusion to the contrary. The Debtor-Appellant is represented by: John L. Ryder, Esq. Michael F. Rafferty, Esq. HARRIS SHELTON HANOVER WALSH, PLLC One Commerce Square 40 Main St., Suite 2700 Memphis, TN 38103-2555 Telephone: (901) 525-1455 Facsimile: (901) 526-4084 E-mail: jryder@harrisshelton.com mrafferty@harrisshelton.com The Appellee is represented by: Daniel H. Slate, Esq. BUCHALTER NEMER, PC 1000 Wilshire Boulevard, Suite 1500 Los Angeles, CA 90017-1730 Telephone: (213) 891-0700 Facsimile: (213) 896-0400 E-mail: dslate@buchalter.com - and - Mark Warren Bailey, Jr., Esq. HUSCH BLACKWELL, LLP 1661 International Drive, Suite 300 Memphis, TN 38120 Telephone: (901) 523-1123 Facsimile: (901) 523-7472 E-mail: mark.bailey@huschblackwell.com A full-text copy of the December 1, 2014 Opinion is available at http://bit.ly/13aoc8ffrom Leagle.com. About Village Green I GP Village Green I GP is the owner of the Village Green Apartments located at 3450 Fescue Lane, Memphis, Tennessee. The property is a 314-unit apartment complex situated in the Hickory Hill neighborhood of Memphis, Tennessee. Village Green sought Chapter 11 protection (Bankr. W.D. Tenn. Case No. 10-24178) on April 16, 2010. John L. Ryder, Esq., at Harris Shelton Hanover Walsh, PLLC, in Memphis, Tenn., represents the single-asset real estate debtor. The debtor estimated its assets and debts at less than $10 million in its bankruptcy petition. Fannie Mae is owed about $9.2 million. VILLAGE GREEN: Fannie May Dispute Stays in Bankruptcy Court ----------------------------------------------------------- Judge S. Thomas Anderson of the U.S. District Court for the Western District of Tennessee denied, without prejudice, Fannie Mae's motion to withdraw the bankruptcy reference in the lawsuit captioned Federal National Mortgage Association, Movant v. Village Green I, GP, a Nevada General Partnership, Respondent, Case No. 14-2311-STA-TMP. The Court also denied Village Green I, GP's motion to dismiss as moot Fannie Mae's motion to withdraw the bankruptcy reference. In light of the current posture of the case, the Court holds that it is unnecessary to decide Fannie Mae's Motion for Withdrawal at this time. When Fannie Mae filed its Motion for Withdrawal, Fannie Mae acted out of a concern that Village Green would file a second bankruptcy case and prevent Fannie Mae from exercising its foreclosure rights, the District Court explains. But at this point in the litigation, Judge Anderson says that the the case is on appeal, and the District Court has entered a stay pending the outcome of the appeal. These new developments, which occurred after Fannie Mae filed its Motion to Withdraw the reference, have overtaken the case. However, Judge Anderson notes, should future proceedings in the case necessitate Fannie Mae's filing of a second motion to withdraw the reference, Fannie Mae may request appropriate relief at that time. A full-text copy of the Order dated December 1, 2014, is available at http://bit.ly/1x6NIaCfrom Leagle.com. Movant Fannie Mae is represented by: Mark Warren Bailey, Jr., Esq. HUSCH BLACKWELL, LLP 1661 International Drive, Suite 300 Memphis, TN 38120 Telephone: (901) 523-1123 Facsimile: (901) 523-7472 E-mail: mark.bailey@huschblackwell.com Respondent Village Green is represented by: John L. Ryder, Esq. HARRIS SHELTON HANOVER WALSH, PLLC One Commerce Square 40 Main St., Suite 2700 Memphis, TN 38103-2555 Telephone: (901) 525-1455 Facsimile: (901) 526-4084 E-mail: jryder@harrisshelton.com About Village Green I GP Village Green I GP is the owner of the Village Green Apartments located at 3450 Fescue Lane, Memphis, Tennessee. The property is a 314-unit apartment complex situated in the Hickory Hill neighborhood of Memphis, Tennessee. Village Green sought Chapter 11 protection (Bankr. W.D. Tenn. Case No. 10-24178) on April 16, 2010. John L. Ryder, Esq., at Harris Shelton Hanover Walsh, PLLC, in Memphis, Tenn., represents the single-asset real estate debtor. The debtor estimated its assets and debts at less than $10 million in its bankruptcy petition. Fannie Mae is owed about $9.2 million. VISCOUNT SYSTEMS: Geoffrey Arens Appointed as Director ------------------------------------------------------- Pursuant to a Certificate of Designation, Preferences and Rights of the Series A Convertible Redeemable Preferred Stock dated June 5, 2012, as amended, the holders of Series A Convertible Redeemable Preferred Stock have the right to appoint up to two directors to the board of directors of the Company. On Dec. 19, 2014, Mr. Geoffrey Arens was appointed as a director of the Company by the A Share Holders pursuant to such provision in the Certificate of Designation. Mr. Arens was also granted 250,000 compensation warrants. The warrants are exercisable to acquire a share of common stock of the Company at an exercise price of $0.095 per share for a period of five years from the date of issuance. The warrants were issued as compensation to a director of the Company. The securities were issued pursuant to the exemptions from registration under Rule 506 of Regulation D, promulgated under the United States Securities Act of 1933. About Viscount Systems Burnaby, Canada-based Viscount Systems, Inc., is a manufacturer, developer and service provider of access control security products. The Company's bank credit facility was suspended on December 30, 2011 due to the bank's assessment of the Company's financial position. Management has determined that the Company will need to raise a minimum of C$500,000 by way of new debt or equity financing to continue normal operations for the next twelve months. Management has been actively seeking new investors and developing customer relationships, however a financing arrangement has not yet completed. Short-term loan financing is anticipated from related parties, however there is no certainty that loans will be available when required. These factors raise substantial doubt about the ability of the Company to continue operations as a going concern. Dale Matheson Carr-Hilton LaBonte LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has an accumulated deficit of C$11.67 million for the year ended Dec. 31, 2013. The Company requires additional funds to meet its obligations and the costs of its operations. The Company reported a net loss of C$3.08 million on C$4.13 million of sales in 2013, compared with a net loss of C$2.68 million on C$3.6 million of sales in 2012. The Company's balance sheet at Sept. 30, 2014, showed $2.14 million in total assets, $5.74 million in total liabilities and a $3.59 million total stockholders' deficit. VWR FUNDING: S&P Raises CCR to 'B+'; Outlook Stable --------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on VWR Funding Inc. to 'B+' from 'B'. At the same time, S&P raised its senior secured issue-level rating to 'BB-' from 'B+' and the senior unsecured issue-level rating to 'B' from 'B-'. The '2' recovery rating on the senior secured debt and the '5' recovery rating on the senior unsecured debt are unchanged. The outlook is stable. "VWR has a well-established position as one of the largest distributors of laboratory supplies, with a global market share of about 11% and a strong presence in North America and Europe," said Standard & Poor's credit analyst Arthur Wong. S&P believes its global sourcing and distribution capabilities are beneficial, but its large pharmaceutical industry and other customers have become more price-sensitive. Those factors support S&P's "satisfactory" business risk assessment. VWR faces competition from Thermo Fisher Scientific Inc., a larger more vertically integrated global distributor, as well as numerous regional and local companies. These factors temper S&P's assessment of VWR's competitive advantages, despite its ranking number two in the U.S. market and number one in Europe. VWR enjoys considerable economies of scale, which S&P believes enhance its competitive position. S&P also views its geographic and end-market diversity favorably. It provides a wide range of products, serving customers in the bio-pharmaceutical, industrial, education, and government sectors. Chemicals and other consumables account for over three-fourths of its revenue base, providing for high recurring revenue streams. These products typically have higher margins and more stable demand than instruments and other laboratory capital equipment. VWR's overall profit margins have been stable and above average for the broad distribution industry. The stable outlook reflects S&P's expectation that VWR will continue to experience steady sales and earnings growth and declining, though still high, leverage over the near term. S&P could lower the rating if the company suffers significant operational setbacks, such as weakened demand for laboratory supplies due to deteriorating global research activity or increased competition from rivals such as Thermo Fisher. Such a scenario could result in weaker-than-expected EBITDA generation such that debt to EBITDA increased back to the 10.5x to 11x range. This would occur if revenues declined by about 5% along with a 250 basis point margin compression. S&P considers an upgrade to be unlikely over the next year, given the presence of debt-like preferred stock in the capital structure that keeps adjusted leverage very high. WASHINGTON MUTUAL: Judge Approves $37MM Bankruptcy Settlement ------------------------------------------------------------- Peg Brickley, writing for Daily Bankruptcy Review, reported that a bankruptcy judge tied up a remaining loose end from the 2008 collapse of Washington Mutual Bank, endorsing a $37 million settlement of the company's claims against its former leaders. According to the report, Judge Mary Walrath signed off on the settlement at a hearing in the U.S. Bankruptcy Court in Wilmington, Del., where the failed thrift's corporate parent, Washington Mutual Inc., took refuge in 2008. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- was the holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. Washington Mutual Bank was taken over on September 25, 2008, by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns 100% of the equity in WMI Investment. YARWAY CORP: Wants Court to Set March 18 as Claims Bar Date ----------------------------------------------------------- Yarway Corporation asks the U.S. Bankruptcy Court for the District of Delaware to set March 18, 2015, as deadline for creditors to file proofs of claim. The Debtor seeks to set the bar date to ensure that appropriate notice is given to all potential creditors, both know and unknown, and that it has accurate information regarding the university of prepetition non-asbestos claims that may be asserted against it. A hearing is set for Jan. 26, 2015, at 11:00 a.m. (ET) to consider the Debtor's request. Objections, if any, must be filed no later than 4:00 p.m. (ET) on Jan. 6, 2015. About Yarway Corporation Yarway Corporation sought Chapter 11 protection (Bankr. D. Del. Case No. 13-11025) on April 22, 2013, to deal with claims arising from asbestos containing products it allegedly sold as early as the 1920s. Yarway was founded in 1908 by Robert Yarnall and Bernard Waring as the Simplex Engineering Company and originally manufactured pipe clamps, steam traps, valves and controls. Based in Pennsylvania, Yarway was a privately-owned company until 1986 when KeyStone International, Inc. bought equity in the company. Yarway became a unit of Tyco International Ltd. when Tyco purchased KeyStone in 1997. Yarway's asbestos-related liabilities derive from Yarway's (i) purported use of asbestos-containing gaskets and packing, manufactured by others, in its production of steam valves and traps from the 1920s to 1970s, and (ii) alleged manufacture of expansion joint packing that was allegedly made up of a compound of Teflon and asbestos from the 1940s to the 1970s. Over the past five years, about 10,021 new asbestos claims have been asserted against Yarway, including 1,014 in Yarway's 2013 fiscal year ending March 31, 2013. The Debtor estimated assets and debts in excess of $100 million as of the Chapter 11 filing. Attorneys at Cole, Schotz, Meisel, Forman & Leonard, P.A. and Sidley Austin LLP serve as the Debtor's counsel in the Chapter 11 case. Logan and Co. is the claims and notice agent. On May 6, 2013, the U.S. Trustee for Region 3, appointed an official committee of asbestos personal injury claimants. The Committee tapped Elihu Inselbuch, Esq. at Caplin & Drysdale, Chartered, as lead bankruptcy counsel. YELLOWSTONE MOUNTAIN: Blixseth Released From Jail ------------------------------------------------- Patrick Fitzgerald, writing for The Wall Street Journal, reported that real-estate developer Tim Blixseth is spending Christmas Eve with his family after an appellate court ordered his release from jail. According to the report, citing Philip Stillman, Mr. Blixseth's lawyer, Mr. Blixseth returned to his Washington state home after the Ninth U.S. Circuit Court of Appeals ordered his immediate release from a Montana jail. About Yellowstone Mountain Located near Big Sky, Montana, Yellowstone Mountain Club LLC -- http://www.theyellowstoneclub.com/-- is a private golf and ski community with more than 350 members, including Bill Gates and Dan Quayle. The Company was founded in 1999. Yellowstone Club and its affiliates filed for Chapter 11 bankruptcy (Bankr. D. Montana, Case No. 08-61570) on Nov. 10, 2008. The Company's owner affiliate, Edra D. Blixseth, filed a separate Chapter 11 petition on March 27, 2009 (Case No. 09-60452). Attorneys at Bullivant Houser Bailey PC and Bekkedahl & Green PLLC represented Yellowstone. The Debtors hired FTI Consulting Inc. and Ronald Greenspan as CRO. The official committee of unsecured creditors were represented by Parsons, Behle and Latimer; and James H. Cossitt, Esq., as counsel. Credit Suisse, the prepetition first lien lender, was represented by Skadden, Arps, Slate, Meagher & Flom. In June 2009, the Bankruptcy Court entered an order confirming Yellowstone's Chapter 11 Plan. Pursuant to the Plan, CrossHarbor Capital Partners LLC acquired equity ownership in the reorganized Club for $115 million. Marc S. Kirschner, Esq., was appointed the Trustee of the Yellowstone Club Liquidating Trust created under the Plan. ZUERCHER TRUST: Court Converts Case to Chapter 7 Liquidation ------------------------------------------------------------ U.S. Bankruptcy Judge Hannah L. Blumenstiel on Dec. 18 entered an order converting the Chapter 11 case of The Zuercher Trust of 1999 to one under Chapter 7 of the Bankruptcy Code. The U.S. Trustee sought the conversion, stating that alleged cause exists to convert the case to chapter 7 based upon inaccurate reports, unpaid fees, administrative insolvency and the diminution and delay resulting from the Chapter 11 trustee's pursuit of a liquidating plan. Allen Hyman, Esq., pro se, as a creditor in the case, joined the U.S. Trustee's motion, stating that the Chapter 11 Trustee's proceedings appear in conflict with the involuntary proceeding regarding Monica Hujazi, personally. Creditor Michael E. Grodsky also joined in the U.S. Trustee's motion, saying that the Chapter 11 Trustee has submitted a plan for reorganization that is not feasible by any means. Secured Claimant Michael Joseph notes the case has been prolonged and expensive, with little to show for all the expense and efforts. The Debtor and Monica Hujazi had submitted memorandum of points and authorities in opposition to the U.S. Trustee's motion, noting that the motion must be denied because Bayshore Property has substantial positive value that must be preserved in the best interests of the estate and any creditors. Chapter 7, Peter Kravitz, the duly appointed and acting Chapter 11 trustee of The Zuercher Trust of 1999, also opposed the U.S. Trustee's motion. About The Zuercher Trust of 1999 San Mateo, California-based The Zuercher Trust of 1999 filed for Chapter 11 bankruptcy (Bankr. N.D. Cal. Case No. 12-32747) on Sept. 26, 2012. Bankruptcy Judge Hannah L. Blumenstiel presides over the case. Derrick F. Coleman, Esq., at Coleman Frost LLP, served as the Debtor's counsel. The Debtor is now represented by Bradley Kass, Esq., at Kass & Kass Law Offices. The Debtor, a business trust, estimated assets and debts of $10 million to $50 million. The Debtor owns property in 621 S. Union Avenue, in Los Angeles. The property is currently in REAP for alleged city health code violations. In its schedules, the Debtor disclosed $28,450,000 in total assets and $12,084,015 in total liabilities. The petition was signed by Monica H. Hujazi, trustee of the Zuercher Trust. As reported in the TCR on March 22, 2013, August B. Landis, Acting U.S. Trustee for Region 17, obtained authorization from the U.S. Bankruptcy Court to appoint Peter S. Kravitz as Chapter 11 Trustee for The Zuercher Trust of 1999. Steven T. Gubner, Esq., and Richard D. Burstein, Esq., at Ezra Brutzkus Gubner LLP, represent the Chapter 11 Trustee as bankruptcy counsel. The Chapter 11 Trustee proposed a Plan of Liquidation which provides for the liquidation of the Debtor's assets and distribution of the Net Proceeds and other funds generated from the liquidation of the Debtor's assets including the Liquidation Claims to creditors in accordance with the Bankruptcy Code's priority scheme. ZUERCHER TRUST: Taps Matthew Sheridan to Valuate Bay Area Assets ---------------------------------------------------------------- Peter S. Kravitz, as acting Chapter 11 trustee for The Zuercher Trust of 1999, is seeking permission to employ Matthew C. Sheridan to provide retroactive valuations of the Debtor's real estate in the San Francisco, Oakland, San Mateo and Hillsborough areas of California (Bay Area Properties) in relation to the adversary proceeding styled Kravitz v. Peninsula Commons, LLC, et al., effective Oct. 1, 2014, at the expense of the estate. According to the Trustee, the services to be provided by Sheridan will include, if necessary, expert testimony by declaration or at trial. To the best of the Trustee's knowledge, Mr. Sheridan is a disinterested party and has the appropriate expertise needed to analyze the Bay Area properties. Mr. Sheridan's regular hourly rate is $150 per hour for expert analysis and testimony. Mr. Sheridan has not been paid a retainer. About The Zuercher Trust of 1999 San Mateo, California-based The Zuercher Trust of 1999 filed for Chapter 11 bankruptcy (Bankr. N.D. Cal. Case No. 12-32747) on Sept. 26, 2012. Bankruptcy Judge Hannah L. Blumenstiel presides over the case. Derrick F. Coleman, Esq., at Coleman Frost LLP, served as the Debtor's counsel. The Debtor is now represented by Bradley Kass, Esq., at Kass & Kass Law Offices. The Debtor, a business trust, estimated assets and debts of $10 million to $50 million. The Debtor owns property in 621 S. Union Avenue, in Los Angeles. The property is currently in REAP for alleged city health code violations. In its schedules, the Debtor disclosed $28,450,000 in total assets and $12,084,015 in total liabilities. The petition was signed by Monica H. Hujazi, trustee of the Zuercher Trust. As reported in the TCR on March 22, 2013, August B. Landis, Acting U.S. Trustee for Region 17, obtained authorization from the U.S. Bankruptcy Court to appoint Peter S. Kravitz as Chapter 11 Trustee for The Zuercher Trust of 1999. Steven T. Gubner, Esq., and Richard D. Burstein, Esq., at Ezra Brutzkus Gubner LLP, represent the Chapter 11 Trustee as bankruptcy counsel. The Chapter 11 Trustee proposed a Plan of Liquidation which provides for the liquidation of the Debtor's assets and distribution of the Net Proceeds and other funds generated from the liquidation of the Debtor's assets including the Liquidation Claims to creditors in accordance with the Bankruptcy Code's priority scheme. ZUERCHER TRUST: Taps Michael Abergel to Analyze LA Properties ------------------------------------------------------------- Peter S. Kravitz, the acting Chapter 11 trustee for The Zuercher Trust of 1999, is seeking permission to tap, effective Oct. 1, 2014, to provide retroactive valuations of three apartment buildings owned by the Debtor located at 207 North Oxford, 621 South Union; and 1639-1645 North Alexandria, in Los Angeles, California in relation to the adversary proceeding styled Kravitz v. Peninsula Commons, LLC, et al., at the expense of the estate. According to Trustee, the services to be provided by Mr. Abergel will include, if necessary, expert testimony by declaration or at trial. To the best of the Trustee's knowledge, Mr. Abergel is a disinterested party and has the appropriate expertise needed to analyze the Debtor's Los Angeles Properties in order to render a retroactive expert opinion on valuation as required by the estate. About The Zuercher Trust of 1999 San Mateo, California-based The Zuercher Trust of 1999 filed for Chapter 11 bankruptcy (Bankr. N.D. Cal. Case No. 12-32747) on Sept. 26, 2012. Bankruptcy Judge Hannah L. Blumenstiel presides over the case. Derrick F. Coleman, Esq., at Coleman Frost LLP, served as the Debtor's counsel. The Debtor is now represented by Bradley Kass, Esq., at Kass & Kass Law Offices. The Debtor, a business trust, estimated assets and debts of $10 million to $50 million. The Debtor owns property in 621 S. Union Avenue, in Los Angeles. The property is currently in REAP for alleged city health code violations. In its schedules, the Debtor disclosed $28,450,000 in total assets and $12,084,015 in total liabilities. The petition was signed by Monica H. Hujazi, trustee of the Zuercher Trust. As reported in the TCR on March 22, 2013, August B. Landis, Acting U.S. Trustee for Region 17, obtained authorization from the U.S. Bankruptcy Court to appoint Peter S. Kravitz as Chapter 11 Trustee for The Zuercher Trust of 1999. Steven T. Gubner, Esq., and Richard D. Burstein, Esq., at Ezra Brutzkus Gubner LLP, represent the Chapter 11 Trustee as bankruptcy counsel. The Chapter 11 Trustee proposed a Plan of Liquidation which provides for the liquidation of the Debtor's assets and distribution of the Net Proceeds and other funds generated from the liquidation of the Debtor's assets including the Liquidation Claims to creditors in accordance with the Bankruptcy Code's priority scheme. ZUERCHER TRUST: Trustee Taps Thomas Jeremiassen as Expert Witness ----------------------------------------------------------------- Peter S. Kravitz, the acting Chapter 11 trustee for The Zuercher Trust of 1999, applied for approval to employ Thomas P. Jeremiassen as an expert to prepare an insolvency analysis for the bankruptcy estate. Mr. Jeremiassen will incorporate the opinions of real property valuations of the Debtor's Bay Area Properties and Los Angeles Properties provided by valuation experts employed by the trustee, and working with accountants employed by the trustee to perform his analysis of the Debtor's insolvency for the time periods relevant to the adversary proceeding styled Kravitz v. Peninsula Commons, LLC, et al., effective Oct. 1, 2014, at the expense of the estate. The services of Mr. Jeremiassen will include expert testimony by declaration or at trial. Mr. Jeremiassen's principal place of business is located at Berkeley Research Group, 2049 Century Park East, Suite 2525, Los Angeles, California, and his billing rate is $510 per hour. To the best of the Trustee's knowledge, Mr. Jeremiassen is a disinterested party and has the appropriate expertise needed to conduct the analysis. About The Zuercher Trust of 1999 San Mateo, California-based The Zuercher Trust of 1999 filed for Chapter 11 bankruptcy (Bankr. N.D. Cal. Case No. 12-32747) on Sept. 26, 2012. Bankruptcy Judge Hannah L. Blumenstiel presides over the case. Derrick F. Coleman, Esq., at Coleman Frost LLP, served as the Debtor's counsel. The Debtor is now represented by Bradley Kass, Esq., at Kass & Kass Law Offices. The Debtor, a business trust, estimated assets and debts of $10 million to $50 million. The Debtor owns property in 621 S. Union Avenue, in Los Angeles. The property is currently in REAP for alleged city health code violations. In its schedules, the Debtor disclosed $28,450,000 in total assets and $12,084,015 in total liabilities. The petition was signed by Monica H. Hujazi, trustee of the Zuercher Trust. As reported in the TCR on March 22, 2013, August B. Landis, Acting U.S. Trustee for Region 17, obtained authorization from the U.S. Bankruptcy Court to appoint Peter S. Kravitz as Chapter 11 Trustee for The Zuercher Trust of 1999. Steven T. Gubner, Esq., and Richard D. Burstein, Esq., at Ezra Brutzkus Gubner LLP, represent the Chapter 11 Trustee as bankruptcy counsel. The Chapter 11 Trustee proposed a Plan of Liquidation which provides for the liquidation of the Debtor's assets and distribution of the Net Proceeds and other funds generated from the liquidation of the Debtor's assets including the Liquidation Claims to creditors in accordance with the Bankruptcy Code's priority scheme. ZYNEX INC: Obtains Forbearance From Senior Lender Until March 31 ---------------------------------------------------------------- Zynex, Inc., received an executed forbearance agreement dated effective as of Dec. 17, 2014, between Zynex, Inc., and Triumph Community Bank, N.A., dba Triumph Healthcare Finance, its senior secured lender, whereby Triumph agreed to forbear from the exercise of its rights and remedies under the original loan documents relating to Zynex's previously disclosed default under such agreement until March 31, 2015, subject to the terms of the Forbearance Agreement. A copy of the Forbearance Agreement is available for free at: http://is.gd/MXJLLQ Zynex Inc. Zynex, Inc., develops, manufactures and markets medical equipment. The Lone Tree, Colorado-based Company offers electrotherapy products for home use, cardiac monitoring apparatus for hospital use, and EMG and EEG diagnostic devices for neurology clinic use. The Company's balance sheet at Sept. 30, 2014, showed $9.57 million in total assets, $11.36 million in total liabilities, and a stockholders' deficit of $1.79 million. "As a result of the Company losses from operations, negative operating cash flow, and limited liquidity, the Company's independent registered public accounting firm's report on the Company's consolidated financial statements as of and for the year ended Dec. 31, 2013 includes an explanatory paragraph discussing that these conditions raise substantial doubt about the Company's ability to continue as a going concern," the Company stated in its quarterly report for the period ended Sept. 30, 2014. * Credit-Default Swaps Get New Look From Hedge Funds ---------------------------------------------------- Matt Wirz, Matt Jarzemsky and Tom McGinty, writing for Daily Bankruptcy Review, reported that hedge-fund managers are putting a new twist on credit-default swaps, using the contracts to fortify bets on troubled companies. According to the report, the swaps, which work like insurance policies when companies default on bonds and loans, fell out of favor after Wall Street's outsize bets on the swaps soured during the financial crisis. Now, investors are increasingly combining credit-default-swaps trades with elements of activist investing to push companies toward default in some cases and away in others, the DBR report said. * Teen Apparel Sector Significant Restructuring Inevitable ---------------------------------------------------------- Neil Stern at National Real Estate Investor reports that a significant restructuring of the teen apparel sector is inevitable, as news in the sector has been grim. Investor says that Delia's and Naartjie Kids were liquidating; Wet Seal is trading for pennies on the dollar, conducting its relationship with lenders on a week-to-week basis and is struggling to hang on; and Deb Shops has filed for Chapter 11 bankruptcy and is likely looking at liquidation come January. The report states that bigger names like Abercrombie & Fitch saw the resignation of its long-time CEO amid continuing struggles, Aeropostale faces double-digit comp store sales decreases and has already closed more than 100 stores this year, with more closings planned for next year, and American Eagle Outfitters is reporting a 5% comp store sales decrease in the latest quarter. According to Investor, teens have shifted their spending towards fast fashion specialists like H&M and Forever 21, and the continued expansion of Uniqlo and pending entry by Primark will increase competition. * BOND PRICING: For Week From December 22 to 26, 2014 ----------------------------------------------------- Company Ticker Coupon Bid Price Maturity Date ------- ------ ------ --------- ------------- Allen Systems Group Inc ALLSYS 10.500 35.000 11/15/2016 Allen Systems Group Inc ALLSYS 10.500 35.000 11/15/2016 Alpha Natural Resources Inc ANR 6.000 30.500 6/1/2019 Alpha Natural Resources Inc ANR 9.750 43.000 4/15/2018 Arch Coal Inc ACI 7.000 32.000 6/15/2019 Arch Coal Inc ACI 9.875 41.000 6/15/2019 B/E Aerospace Inc BEAV 5.250 110.000 4/1/2022 BPZ Resources Inc BPZ 8.500 31.000 10/1/2017 Black Elk Energy Offshore Operations LLC / Black Elk Finance Corp BLELK 13.750 74.660 12/1/2015 Caesars Entertainment Operating Co Inc CZR 10.000 14.320 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.750 8.000 2/1/2016 Caesars Entertainment Operating Co Inc CZR 10.000 13.930 12/15/2018 Caesars Entertainment Operating Co Inc CZR 12.750 13.125 4/15/2018 Caesars Entertainment Operating Co Inc CZR 6.500 11.250 6/1/2016 Caesars Entertainment Operating Co Inc CZR 5.750 10.501 10/1/2017 Caesars Entertainment Operating Co Inc CZR 10.000 16.375 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.000 14.500 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.750 14.250 2/1/2016 Caesars Entertainment Operating Co Inc CZR 10.000 16.375 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.000 16.750 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.750 14.250 2/1/2016 Caesars Entertainment Operating Co Inc CZR 5.750 11.500 10/1/2017 Cal Dive International Inc CDVI 5.000 10.250 7/15/2017 Champion Enterprises Inc CHB 2.750 0.250 11/1/2037 Chassix Holdings Inc CHASSX 10.000 11.750 12/15/2018 Colt Defense LLC / Colt Finance Corp CLTDEF 8.750 40.100 11/15/2017 Colt Defense LLC / Colt Finance Corp CLTDEF 8.750 41.375 11/15/2017 Colt Defense LLC / Colt Finance Corp CLTDEF 8.750 41.375 11/15/2017 Dendreon Corp DNDN 2.875 59.000 1/15/2016 Endeavour International Corp END 12.000 40.000 3/1/2018 Endeavour International Corp END 12.000 3.250 6/1/2018 Endeavour International Corp END 5.500 3.750 7/15/2016 Endeavour International Corp END 12.000 42.000 3/1/2018 Endeavour International Corp END 12.000 42.000 3/1/2018 Energy Conversion Devices Inc ENER 3.000 7.875 6/15/2013 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 10.000 9.250 12/1/2020 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 10.000 9.250 12/1/2020 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 6.875 5.625 8/15/2017 Exide Technologies XIDE 8.625 4.800 2/1/2018 Exide Technologies XIDE 8.625 3.946 2/1/2018 Exide Technologies XIDE 8.625 3.946 2/1/2018 FBOP Corp FBOPCP 10.000 2.000 1/15/2009 FairPoint Communications Inc/Old FRP 13.125 1.879 4/2/2018 Fleetwood Enterprises Inc FLTW 14.000 3.557 12/15/2011 Global Geophysical Services Inc GEGS 10.500 1.500 5/1/2017 Global Geophysical Services Inc GEGS 10.500 0.427 5/1/2017 Gymboree Corp/The GYMB 9.125 36.485 12/1/2018 James River Coal Co JRCC 10.000 1.000 6/1/2018 James River Coal Co JRCC 10.000 1.100 6/1/2018 Las Vegas Monorail Co LASVMC 5.500 3.227 7/15/2019 Lehman Brothers Holdings Inc LEH 5.000 12.375 2/7/2009 Lehman Brothers Inc LEH 7.500 9.125 8/1/2026 MF Global Holdings Ltd MF 6.250 31.250 8/8/2016 MF Global Holdings Ltd MF 1.875 31.063 2/1/2016 MF Global Holdings Ltd MF 3.375 31.000 8/1/2018 MModal Inc MODL 10.750 10.125 8/15/2020 Molycorp Inc MCP 6.000 29.853 9/1/2017 Molycorp Inc MCP 3.250 36.750 6/15/2016 Molycorp Inc MCP 5.500 28.000 2/1/2018 Momentive Performance Materials Inc MOMENT 11.500 1.625 12/1/2016 NII Capital Corp NIHD 7.625 16.000 4/1/2021 NII Capital Corp NIHD 10.000 35.375 8/15/2016 OMX Timber Finance Investments II LLC OMX 5.540 24.438 1/29/2020 Platinum Energy Solutions Inc PLATEN 14.250 74.750 3/1/2015 Platinum Energy Solutions Inc PLATEN 14.250 74.750 3/1/2015 Powerwave Technologies Inc PWAV 1.875 0.125 11/15/2024 Powerwave Technologies Inc PWAV 1.875 0.125 11/15/2024 Quicksilver Resources Inc KWK 7.125 10.125 4/1/2016 Quicksilver Resources Inc KWK 9.125 26.000 8/15/2019 Quicksilver Resources Inc KWK 11.000 24.500 7/1/2021 RAAM Global Energy Co RAMGEN 12.500 40.125 10/1/2015 RadioShack Corp RSH 6.750 15.250 5/15/2019 RadioShack Corp RSH 6.750 16.000 5/15/2019 RadioShack Corp RSH 6.750 16.000 5/15/2019 Sabine Oil & Gas LLC / Sabine Oil & Gas Finance Corp NFREGY 9.750 52.000 2/15/2017 Saratoga Resources Inc SARA 12.500 36.750 7/1/2016 TMST Inc THMR 8.000 20.000 5/15/2013 Terrestar Networks Inc TSTR 6.500 10.000 6/15/2014 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.250 10.375 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15.000 18.063 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.500 8.000 11/1/2016 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.250 9.125 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15.000 17.500 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.250 9.000 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.500 8.875 11/1/2016 Textron Inc TXT 6.200 100.490 3/15/2015 Tunica-Biloxi Gaming Authority PAGON 9.000 65.250 11/15/2015 Walter Energy Inc WLT 9.875 20.895 12/15/2020 Walter Energy Inc WLT 8.500 20.000 4/15/2021 Walter Energy Inc WLT 9.875 20.625 12/15/2020 Walter Energy Inc WLT 9.875 20.625 12/15/2020 Western Express Inc WSTEXP 12.500 89.250 4/15/2015 Western Express Inc WSTEXP 12.500 92.250 4/15/2015 ********* 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***