/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/150313.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, March 13, 2015, Vol. 19, No. 72 Headlines ACCELPATH INC: Reports $595K Net Loss for Dec. 31 Quarter ACCIPITER COMMS: April 28 Hearing on Further Cash Collateral Use ALEXANDRA TRUST: March 20 Hearing on Bid for Case Conversion ALSIP ACQUISITION: Wants April 15 as Admin. Expense Bar Date AMERICAN ENERGY: Posts $156K Net Loss for Dec. 31 Quarter AMERICANN INC: Posts $242K Net Loss for Dec. 31 Quarter ASHER INVESTMENT: Settlement with Israel Discount Bank Approved ASPEN GROUP: CEO Extends Due Dates of Notes to July 2016 BATE LAND: Has Until April 1 to Obtain Confirmation of Plan BERRY PLASTICS: Stockholders Elect Three Returning Directors BLACKBOARD INC: S&P Retains 'B+' CCR Over $85MM Term Loan Add-On BON-TON STORES: BlackRock Reports 4.9% Stake as of Feb. 28 BPZ RESOURCES: FMR LLC No Longer Owns Shares as of March 9 BRIAR'S CREEK: Keen-Summit to Hold Auction on April 29 BRUSH CREEK: Files 4th Amended Reorganization Plan CAL DIVE: Can Employ Kurtzman as Claims & Noticing Agent CAL DIVE: Court Issues Joint Administration Order CAL DIVE: Court Issues Sec. 362 Stay Order CAL DIVE: Has Interim Approval of Equity Transfer Protocol CAL DIVE: Quin Hebert to Act as CDOCI Foreign Representative CALMENA ENERGY: Canadian Case Recognized as Foreign Main Proceeding CATASYS INC: 2015 Investor Presentation CHARLES SCHWAB: Fitch Affirms 'BB+' Preferred Stock Rating CHASSIX HOLDINGS: Case Summary & 40 Largest Unsecured Creditors CHASSIX HOLDINGS: Files for Chapter 11 with Prenegotiated Plan CONDOR DEVELOPMENT: Court Enters Final Decree Closing Cases COUTURE HOTEL: Enoch Joins Objection to Exclusivity Extensions CREEKSIDE ASSOCIATES: Wants March 31 Set as Gen. Claims Bar Date CRYOPORT INC: Swaps or Amends Related Party Notes Payable D & L ENERGY: US Trustee Wants Case Converted to Chapter 7 DEERFIELD RANCH: Files Schedules of Assets and Liabilities DELIAS INC: Court Sets April 14 as Claims Bar Date DELIAS INC: Seeks to Extend Lease-Decision Deadline to June 5 DELIAS INC: Wants Court to Extend Plan Filing Deadline to June 5 DENDREON CORP: March 24 Hearing on Bid to Extend Plan Exclusivity DIGERATI TECHNOLOGIES: Posts $3.64M Income in April 30 Quarter DORAL FINANCIAL: Liquidating Under Ch. 11 After Bank Unit Seized DORAL FINANCIAL: Rejecting Doral Bank-Related Contracts DORAL FINANCIAL: Seeks Approval to Reject Leases DORAL FINANCIAL: Wants Until April 24 to File Schedules DUNE ENERGY: Eos Advises Exchange Agent to Return Tendered Shares DUNE ENERGY: Proposes June 9 Auction for Assets DUNE ENERGY: Seeks Joint Administration of Ch. 11 Cases DUNE ENERGY: Wants Schedules Deadline Moved to April E&S CONTRACTING: Case Summary & 11 Largest Unsecured Creditors EDWARD MANDEL: Dist. Ct. Upholds Approval of Thrasher/Coleman Deal EMPIRE RESORTS: Reports $24 Million Net Loss for 2014 ESTATE FINANCIAL: Trustee OK'd to Sell Calif. Property Interests FCC HOLDINGS: Former Workers, Michigan Object to Plan Confirmation FRANKLIN INDUSTRIES: Hirsh Lacks Standing to Sue Qingdao et al. FREESEAS INC: Sells $750,000 Convertible Note to Glengrove Small GEMINI SYSTEMS: Voluntary Chapter 11 Case Summary GENTLE TOUCH: Case Summary & 20 Largest Unsecured Creditors GREAT BASIN: Mantyla McReynolds Expresses Going Concern Doubt GREENSHIFT CORP: Issues 596.3 Million Common Shares GREG MICHAEL ZUMBACH: Has Standing to Oppose IRS Claims Deal GRIDWAY ENERGY: Completes $265K Sale of Ziphany Assets HALCON RESOURCES: Extends Maturity of $290MM Note to 2020 HEXION INC: Reports $148 Million Net Loss for 2014 HUTCHESON MEDICAL: May 1, 2015 General Claims Bar Date Set HUTCHESON MEDICAL: Wants Until Dec. 31 to Propose Chapter 11 Plan HUTCHESON MEDICAL: Wants Until June 18 to Assume or Reject Leases IBCS MINING: Okayed to Pay $30.3K Incentive to CFO Mike Dean iBIO INC: Negative Cash Flow Raises Going Concern Doubt INFRAX SYSTEMS: Deficit, Losses Raise Going Concern Doubt INVERSIONES ALSACIA: Asks for Final Decree Closing Cases JOHN REYNOLDS: Judge Awards $22,740 in Attorneys' Fees KANGADIS FOOD: Chief Judge Carla Craig Selected as Mediator KANGADIS FOOD: Wants Final Decree Closing Reorganization Case LONGVIEW POWER: Wants to Expand Scope of Lazard Work MEDICAL ALARM: Amends Dec. 31, 2014 Quarterly Report MICROCHIP TECHNOLOGY: S&P Assigns 'BB+' CCR; Outlook Stable MICROVISION INC: Incurs $3.34 Million Net Loss in Fourth Quarter MIDSTATES PETROLEUM: Appoints Two Directors to Board NET ELEMENT: Files Amendment to Sept. 30 Quarter Report NICHOLS CREEK: Hawkins Balks at Whitney Bank's Bid for Dismissal NNN SIENA OFFICE: Wins Dismissal of Chapter 11 Cases OMEGA HEALTHCARE: S&P Affirms 'BB+' Corporate Credit Rating ORGENESIS INC: Kesselman Expresses Going Concern Doubt PARK MERIDIAN: Seeks Substantive Consolidation of Estates PEOPLEWELL HR: Apr. 14 Hearing Set on UST Complaints PLATTSBURGH SUITES: Opposes U.S. Trustee's Bid for Ch. 11 Trustee PORTAGE BIOTECH: Reports $889K Net Loss for Dec. 31 Quarter PUTNAM ENERGY: Case Summary & 20 Largest Unsecured Creditors PUTNAM ENERGY: Files for Chapter 11 in Chicago QUEST SOLUTION: Copy of Presentation at ROTH Conference RECYCLE SOLUTIONS: March 19 Hearing on Bid for More Exclusivity RECYCLE SOLUTIONS: Plum Creek's Lift Stay Motion Resolved REGENICIN INC: Further Losses Raise Going Concern Doubt RESIDENTIAL CAPITAL: Judge Rules on Objection to Silber Claim SALADWORKS LLC: WS Finance Balks at SSG Fees SALADWORKS LLC: WS Says UpShot Not Needed for Plan Process SALADWORKS: Parties Balk at Employment of Landis Rath as Counsel SEAR METHODIST: Caprock Has Until April to Use SB Cash Collateral SEQUENOM INC: Earns $1M in 2014, But More Cash Needed to Pay Debt SHILO INN: Seeks Confirmation of New Value Reorganization Plans STANDARD REGISTER: Files for Chapter 11 to Sell Assets STUART JARAMILLO: Must Convert to Chapter 11 or Face Dismissal THERAPEUTICSMD INC: Incurs $16.3 Million Net Loss for Q4 TRIMEDYNE INC: Reports $169K Net Loss in Dec. 31 Quarter TRIPLANET PARTNERS: Has Until April 15 to Decide on Leases TRIPLANET PARTNERS: Has Until May 5 to Propose Chapter 11 Plan ULTIMATE NUTRITION: Court Sets April 14 as Claims Bar Date US COAL: Has Until April 10 to Propose their Reorganization Plan VERSO PAPER: Reports $356 Million Net Loss for 2014 VISCOUNT SYSTEMS: Appoints Ambassador Siegel as Chairman VISCOUNT SYSTEMS: Sells 37,655 Common Shares in Private Placement VISION VENTURES: Voluntary Chapter 11 Case Summary WAVE SYSTEMS: Reports $12.8 Million Net Loss for 2014 WELLNESS CENTER: Insufficient Revenue Raises Going Concern Doubt XZERES CORP: Copy of Presentation to Interested Parties ZOGENIX INC: Reports $20.5 Million Net Loss for Fourth Quarter [^] BOOK REVIEW: Oil Business in Latin America: The Early Years ********* ACCELPATH INC: Reports $595K Net Loss for Dec. 31 Quarter --------------------------------------------------------- AccelPath, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $595,000 on $18,080 of revenues for the three months ended Dec. 31, 2014, compared to a net loss of $726,000 on $54,000 of revenues for the same period in the prior year. The Company's balance sheet at Dec. 31, 2014, showed $2.43 million in total assets, $4.11 million in total liabilities, and a stockholders' deficit of $1.68 million. The Company had a net loss applicable to common shareholders of $1.14 million for the six months ended Dec. 31, 2014 and a net loss applicable to common shareholders of $2.51 million for the year ended June 30, 2014. Further, the Company had a working capital deficit of $3.91 million at Dec. 31, 2014. These factors raise substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/eJeVbq Gaithersburg, Md.-based AccelPath has two primary businesses: AccelPath, LLC, and Digipath Solutions, LLC, are in the business of enabling pathology diagnostics and Technest, Inc. (a 49% owned subsidiary) is in the business of the design, research and development, integration, sales and support of three- dimensional imaging devices and systems. The Company reported a net loss of $546,000 on $40,500 of revenues for the three months ended Sept. 30, 2014, compared with a net loss of $351,000 on $54,000 of revenues for the three months ended Sept. 30, 2013. ACCIPITER COMMS: April 28 Hearing on Further Cash Collateral Use ---------------------------------------------------------------- The Bankruptcy Court continued until April 28, at 9:30 a.m., the Chapter 11 status hearing in Accipiter Communications, Inc.'s case, and Accipiter's motion for continued use of use cash collateral. U.S. Bankruptcy Judge George B. Nielsen signed off on a fourth stipulated order authorizing until May 1. The stipulation was entered between the Debtor and the United States, on behalf of the Rural Utilities Service of the U.S. Department of Agriculture. As of the Petition Date, the Debtor was obligated and indebted to RUS in an aggregate principal amount totaling $20,755,214, plus accrued interest. As adequate protection for any diminution in the value of RUS's collateral, the Debtor will grant the lender: a. interest on the prepetition indebtedness continues to accrue at the rate provided under the Prepetition Credit Agreement, and the Debtor must pay on a current and ongoing basis, as it comes due after the Petition Date, all such interest. b. The Lender is granted replacement liens in all postpetition collateral to secure any postpetition diminution of the cash collateral, subject to carve out on certain expenses. c. The Debtor may not use cash collateral with respect to any payments to the Debtor's directors, officers, employees, and agents in connection with any retention agreements, retention bonuses, stay bonuses, or severance agreements unless they have been disclosed to the Prepetition Lender, provided for in the Budget, and approved by the Court. The Debtor would use the cash collateral to construct and operate a telecommunications network in rural areas located in certain portions of Maricopa and Yavapai Counties. The Debtor has furnished to the Prepetition Lender a budget for weekly cash receipts and expenditures for the period ending Jan. 9, 2015. About Accipiter Communications Accipiter Communications, Inc., a Phoenix-based company that provides telecommunications services to unserved or underserved, mostly rurally-situated residences and businesses in central Arizona, filed a Chapter 11 bankruptcy petition (Bankr. D. Ariz. Case No. 14-04372) in its hometown on March 28, 2014. Accipiter provides telecommunications services to 1,409 residential subscribers and 231 business subscribers, including an elementary school, an enforcement agency, a fire station, two municipal water supply facilities, and a bank. The Debtor is able to provide telecommunications services to rural customers only by participating in two federal programs: revenue subsidies from the federal Universal Service Fund, which is administered under the authority of the Federal Communications Commission, and capital debt financing provided under a rural telecommunications loan program administered by the Rural Utilities Service, an agency of the U.S. Department of Agriculture. As of the Petition Date, the Debtor owed $20.8 million in aggregate principal to the RUS. The Debtor believes there is approximately $414,000 in prepetition general unsecured claims held by trade vendors or other parties against the Debtor. The Debtor is a privately held company, with 55.4% of the stock held by Lewis van Amerongen. In its schedules, the Debtor listed $31.3 million in assets and $21.6 million in liabilities. The bankruptcy case is assigned to Judge George B. Nielsen Jr. The Debtor has tapped Perkins Coie LLP as counsel. Ilene J. Lashinsky, U.S. Trustee for Region 14, appointed these three creditors to serve in the Official Committee of Unsecured Creditors. The Committee retained Stinson Leonard Street LLP as counsel. The Debtor filed its proposed Plan of Reorganization on Aug. 27, 2014. ALEXANDRA TRUST: March 20 Hearing on Bid for Case Conversion ------------------------------------------------------------ The Bankruptcy Court presiding over Alexandra Trust's Chapter 11 case will convene a hearing on March 20, 2015, at 9:15 a.m., to consider (i) Don Bailey's motion for appointment of a Chapter 11 trustee for Alexandra Trust; and (ii) Vicksburg Hotel LLC's motion to convert the case from Chapter 11 to one under Chapter 7 of the Bankruptcy Code. Vicksburg filed a joinder in Don Bailey's trustee motion stating that Alexandra and Avondale Shipyards, Inc., failed to pay attorneys' fees to four different Mississippi law firms. Motions to withdraw from representation were filed. Deadlines were running in the Mississippi lawsuits and Alexandra and Avondale were unable to find replacement counsel. Vickburg added that given that one of the co-trustees of the Debtor Richard Sterritt's history of abuse of the court system, Alexandra's lack of business operations, gross mismanagement of the Debtor and the bad faith filing of the Chapter 11, the Court must convert the case to a Chapter 7 if it does not appoint a chapter 11 trustee. Vicksburg is asking the Court to convert the case because conversion is in the best interest of the bankruptcy estate, creditors and parties-in-interest. Vicksburg explained that a Chapter 7 trustee can evaluate the bankruptcy estate's claims, determine whether to pursue them, dismiss them or settle them, and bring the Mississippi Litigation to a conclusion. Vicksburg is represented by: William J. Little, Jr. LENTZ & LITTLE, P.C. 2505 14th St., Suite 100 Gulfport, MS 39501 Tel: (228) 867-6050 E-mail: Bill@Lentzlittle.com - and - Russell W. Mills, Esq. HIERSCHE, HAYWARD, DRAKELEY & URBACH, P.C. 15303 Dallas Parkway, Suite 700 Addison, TX 75001 Tel: (972) 701-7000 Fax: (972) 701-8765 E-mail: rmills@hhdulaw.com About Alexandra Trust Garland, Texas-based Alexandra Trust sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 14- 35049) on Oct. 20, 2014. The case is assigned to Judge Barbara J. Houser. The Debtor's counsel is Arthur I. Ungerman, Esq., in Dallas, Texas. In a revised schedules, the Debtor disclosed $861 million in assets and $4.57 million in liabilities as of the Chapter 11 filing. The petition was signed by Richard Dale Sterritt, Jr., trustee. Don Bailey, a scheduled creditor, says the Debtor is not really a business to be reorganized. Its assets, other than a debt-free residential property, are claimed interests in 22 entities plus seven potential lawsuits which the Debtor apparently intends to file in its name to resolve, among other issues, ownership of several of those entities. ALSIP ACQUISITION: Wants April 15 as Admin. Expense Bar Date ------------------------------------------------------------ Alsip Acquisition, LLC, et al., are asking the Bankruptcy Court to set April 15, 2015, as the bar date for filing requests for payment of administrative expenses arising from the commencement of the bankruptcy cases through and including Jan. 13. About Alsip Acquisition Alsip Acquisition, LLC and APCA, LLC were the leading North American provider of responsibly made recycled paper for books and magazines, as well as for commercial printing and packaging applications. The operational and manufacturing headquarters are located in Alsip, Illinois, and consist of a 40-year-old mill and a leased warehouse in Alsip, Illinois. The mill and warehouse were idled in September 2014 following cash losses. Most of Alsip's stock is owned by FutureMark Holdings, LLC. On Nov. 20, 2014, Alsip Acquisition and APCA each filed petitions seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Judge Kevin J. Carey (KJC). The cases have been jointly administered, with pleadings maintained on the case docket for Case No. 14-12596. The Debtors have tapped Mintz Levin Cohn Ferris Glovsky and Popeo PC as counsel and Pachulski Stang Ziehl & Jones as co-counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. As of Oct. 31, 2014, the Debtors had $7.74 million of funded indebtedness and related obligations outstanding. The Debtors disclosed $12,906,018 in assets and $34,362,844 in liabilities as of the Chapter 11 filing. The Official Committee of Unsecured Creditors is represented by Maria Aprile Sawczuk, Esq., and Harold D. Israel, Esq., at Goldstein & McClintlock LLLP. The Committee tapped to retain GlassRatner Advisory & Capital Group LLC as its financial advisor. AMERICAN ENERGY: Posts $156K Net Loss for Dec. 31 Quarter --------------------------------------------------------- The American Energy Group, Ltd., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $156,000 on $126,000 of oil and gas royalties for the three months ended Dec. 31, 2014, compared to a net income of $45,300 on $312,000 of oil and gas royalties for the same period in 2013. The Company's balance sheet at Dec. 31, 2014, showed $5.15 million in total assets, $1.27 million in total liabilities and total stockholders' equity of $3.89 million. At Dec. 31, 2014, the Company's current liabilities exceeded its current assets and it has recorded negative cash flows from operations. In addition, the collection of the Company's oil and gas sales receivables have been delayed and are subject to the final outcome of the litigation. The preceding circumstances combine to raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/sw6U6j Westport, Connecticut-based The American Energy Group, Ltd., operates as an energy resource royalty company. It owns an interest in two oil and gas leases located in Southeast Texas; and holds 18% overriding royalty interest in the Yasin Concession located in Pakistan. The Company also holds a 2.5% working interest on oil and gas production acreage in Sanjawi Block located in Baluchistan Province and in Zamzama North Block located in Sindh Province, Pakistan. The Company was formerly known as Belize-American Corp. Internationale and changed its name to The American Energy Group, Ltd. in November 1994. The Company reported a net loss of $8,660 on $250,000 of revenue for the three months ended Sept. 30, 2014, compared with a net income of $74,600 on $312,000 of revenue for the same period last year. The Company's balance sheet at Sept. 30, 2014, showed $5.03 million in total assets, $1.12 million in total liabilities, and stockholders' equity of $3.91 million. AMERICANN INC: Posts $242K Net Loss for Dec. 31 Quarter ------------------------------------------------------- Americann, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $242,000 on $30,000 of revenue for the three months ended Dec. 31, 2014, compared with a net loss of $5,700 on $nil of revenue for the same period during the prior year. The Company's balance sheet at Dec. 31, 2014, showed $3.43 million in total assets, $914,000 in total liabilities and stockholders' equity of $2.51 million. The Company had an accumulated deficit of $2.32 million and $2.07 million at Dec. 31, 2014 and Sept. 30, 2014, respectively, had a net loss of $242,000 for the period ended Dec. 31, 2014, and working capital of $93,000 at Dec. 31, 2014. These matters, among others, raise substantial doubt about its ability to continue as a going concern. While the Company is attempting to increase operations and generate additional revenues, the Company's cash position may not be significant enough to support the Company's daily operations. A copy of the Form 10-Q is available at: http://is.gd/w8BFXe AmeriCann, Inc., provides various services to the regulated cannabis industry worldwide. The company offers real estate development, research, consulting, and capital to the medical marijuana industry. It is also involved in the design and construction of indoor cultivation and greenhouse facilities; operation of cultivation facility; and provision of license procurement services. The company was formerly known as Nevada Health Scan, Inc. and changed its name to AmeriCann, Inc. in February 2014. AmeriCann, Inc. was founded in 2010 and is based in Denver, Colorado. ASHER INVESTMENT: Settlement with Israel Discount Bank Approved --------------------------------------------------------------- Asher Investment Properties, LLC, obtained bankruptcy court approval of a Settlement Agreement between the Debtor, Yossi Dina, Ben Jewelry, Inc., and Israel Discount Bank of New York ("IDB") permitting the resolution of disputes concerning the amount of IDB's claim against the Estate and BJI and Yossi as guarantors of the Debtor's debt to IDB. Asher owns and leases out a building located at 249-251 South Beverly Drive, Beverly Hills, Calif., to Ben Jewelry, Inc., under a triple net lease with a monthly rental payment of $35,000. The Debtor believes that the Property is worth substantially more than $10,000,000. The Property is subject to a first priority trust deed securing a loan from IDB to Asher and a second priority trust deed securing loans from the Itkin Living Trust dated March 12, 2008, to Asher. As further security for the Itkin Loan, in 2012, the Itkin Trust obtained a purported 50% membership interest in Asher subject to being redeemed for the sum of $1 upon payment of the Itkin Loan. The salient terms of the Settlement Agreement are: a. The Settlement Agreement is subject to the approval by this Court and entry of an order granting this Motion in a form approved by IDB's counsel and entered on or before March 2, 2015. b. The Debtor agrees to the allowance of a secured claim in favor of IDB in the amount owed under the Loan Documents which, as of Feb. 9, 2015 consisted of $5,315,681 in principal, $672,411 in accrued and unpaid interest and $6,456 in costs and expenses for a total of $5,994,548. c. The Debtor will pay to IDB an amount equal to all of the Debt (including all of the amounts which accrue under the terms of the Loan Documents after February 9, 2015) (the "Payment"). The date on which the entire Payment is paid in cash and in full by Asher and collected by IDB shall be the "Payment Date". Notwithstanding the foregoing, in the event that the Payment Date occurs on or before March 2, 2015, the Payment will be discounted by $50,000. d. Broad releases of claims are given by the Parties with IDB's release of the Asher Parties et al effective as of the Payment Date. Ira Benjamin Katz, Esq., of Gershuni & Katz, representing the Debtor, states that the Compromise should be approved because it is supported by sound justification: it provides the Estate a $50,000 discount on the amount of the Debt asserted by IDB; avoids the burden, expense and uncertainty of the Debtor having to seek confirmation of its plan of reorganization over IDB's anticipated objection and the burden, expense and uncertainty of the appeal that would almost certainly follow the Court's ruling on whether the Entz-White holding is still good law in the 9 Circuit; avoids the burden, expense and uncertainty of litigation over the th amount of IDB's claim based on applicable state law; allows the Debtor to refinance the Property at a lower interest rate than the default interest rate currently being charged by IDB; and facilitates the Debtor being able to dismiss its case without having to confirm a plan of reorganization. Moreover, pursuant to the terms of the Itkin Settlement Agreement, the Debtor must pay off the IDB Loan or obtain the Itkin Trust's consent to its making the First Settlement Payment to the Itkin Trust prior to making such payment which is due no later than March 2, 2015. About Asher Investment Asher Investment Properties, LLC, owner of a $10 million property in Beverly Hills, California, filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 14-21172) in Los Angeles, on June 6, 2014. Yossi Dina signed the petition as managing member. Asher, a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B), disclosed $11.5 million in assets and $10.7 million in liabilities. Gershuni & Kate, ALC, serves as the Debtor's counsel. Hon. Barry Russell presides over the case. ASPEN GROUP: CEO Extends Due Dates of Notes to July 2016 -------------------------------------------------------- Michael Mathews, the Chairman of the Board and chief executive officer of Aspen Group, Inc., extended the due dates of his three outstanding notes to July 31, 2016, according to a Form 8-K report filed with the Securities and Exchange Commission. Prior to the amendments, the outstanding notes had expiration dates of Jan. 31, 2016. The securities were issued and sold in reliance upon the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933 and Rule 506(b) promulgated thereunder. On March 10, 2015, Mr. Mathews presented at the 27th Annual Roth Conference in Dana Point, California. Mr. Mathews' presentation included an overview of the Company's debtless education business model. A copy of the presentation is available for free at: http://is.gd/m96sUx About Aspen Group Denver, Colo.-based Aspen Group, Inc., was founded in Colorado in 1987 as the International School of Information Management. On Sept. 30, 2004, it was acquired by Higher Education Management Group, Inc., and changed its name to Aspen University Inc. On May 13, 2011, the Company formed in Colorado a subsidiary, Aspen University Marketing, LLC, which is currently inactive. On March 13, 2012, the Company was recapitalized in a reverse merger. Aspen's mission is to become an institution of choice for adult learners by offering cost-effective, comprehensive, and relevant online education. Approximately 88 percent of the Company's degree-seeking students (as of June 30, 2012) were enrolled in graduate degree programs (Master or Doctorate degree program). Since 1993, the Company has been nationally accredited by the Distance Education and Training Council, a national accrediting agency recognized by the U.S. Department of Education. Aspen Group incurred a net loss of $5.35 million for the year ended April 30, 2014. The Company also reported a net loss of $1.40 million for the four months ended April 30, 2013. The Company reported a net loss of $6 million in 2012 as compared with a net loss of $2.13 million in 2011. As of Oct. 31, 2014, the Company had $5.36 million in total assets, $3.49 million in total liabilities and $1.87 million in total stockholders' equity. BATE LAND: Has Until April 1 to Obtain Confirmation of Plan ----------------------------------------------------------- U.S. Bankruptcy Judge Stephani W. Humrickhouse extended until April 1, 2015, Bate Land & Timber, LLC's time to obtain confirmation of the its Plan of Reorganization. The Debtor filed its Plan of Reorganization on Aug. 30, 2013 (as amended on Dec. 23, 2013, and clarified on Jan. 3, 2014). On Jan. 15, 2015, the Court entered an order regarding the Plan. Bankruptcy Judge Stephani W. Humrickhouse ruled that: (1) the debtor has satisfied the plan confirmation requirements of 11 U.S.C. Sec. 1129(a), contrary to the arguments of creditor Bate Land Company, LP; (2) the fair market value of the Broad Creek tract is $3,143,000 and the fair market value of the Bay River/Smith Creek tract is $5,700,000; (3) the allowed secured claim of BLC is between $14,931,823 and $15,411,284; (4) the court cannot determine whether the plan complies with Sec. 1129(b) until the debtor identifies additional tracts to surrender and/or opts to amortize the remaining amount of the secured claim of BLC; (5) BLC's motion for relief from stay is denied, and (6) a hearing will be scheduled to determine the amount of BLC's secured claim. About Bate Land & Timber Willotte, North Carolina-based Bate Land & Timber, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No. 13-04665) on July 25, 2013. Judge Stephani W. Humrickhouse oversees the Chapter 11 case. The Debtor, in amended schedules, disclosed $53,477,624 in assets and $74,162,211 liabilities as of the Chapter 11 filing. The petition was signed by Brad Cheers, manager. The Bankruptcy Administrator for the Eastern District of North Carolina was unable to organize and recommend the appointment of a committee of creditors holding unsecured claims against the Debtor. BERRY PLASTICS: Stockholders Elect Three Returning Directors ------------------------------------------------------------ Berry Plastics Group, Inc., held its 2015 annual meeting of stockholders on March 4, 2015, at which the Company's stockholders: (i) approved the election of three returning directors to the Company's Board of Directors, namely: Robert A. Steele, Jonathan D. Rich and Robert V. Seminara, each for a term of three years; (ii) approved the proposed Amended and Restated Certificate of Incorporation; (iii) approved the adoption of the 2015 Berry Plastics Group, Inc. Long-Term Incentive Plan; and (iv) ratified Ernst & Young LLP as the Company's independent registered public accountants for the fiscal year ending Sept. 26, 2015. Effective March 4, 2015, upon approval by the Company's stockholders at the Annual Meeting, Berry Plastics adopted the 2015 Berry Plastics Group, Inc. Long-Term Incentive Plan. Also on March 4, 2015, the Board of Directors amended the 2006 Equity Incentive Plan and the 2012 Long-Term Incentive Plan to prohibit the future grant of any awards under either of the Former Plans. On March 6, 2015, the Company filed the Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware. The Certificate amends and restates a number of obsolete provisions relating to the ownership of the Company's common stock by certain investment vehicles affiliated with Apollo Management V, L.P. and Apollo Management VI, L.P. and by certain affiliates of Graham Partners, Inc. and the Amended and Restated Stockholders Agreement, dated Oct. 10, 2012, by and among the Company and certain stockholders. The Certificate was approved by the Company's stockholders at the Annual Meeting held on March 4, 2015. About Berry Plastics Berry Plastics Corporation manufactures and markets plastic packaging products, plastic film products, specialty adhesives and coated products. At Jan. 2, 2010, the Company had more than 80 production and manufacturing facilities, primarily located in the United States. Berry is a wholly-owned subsidiary of Berry Plastics Group, Inc. Berry Group is primarily owned by affiliates of Apollo Management, L.P., and Graham Partners. Berry, through its wholly owned subsidiaries operates five reporting segments: Rigid Open Top, Rigid Closed Top, Flexible Films, Tapes/Coatings and Specialty Films. The Company's customers are located principally throughout the United States, without significant concentration in any one region or with any one customer. On Dec. 3, 2009, Berry Plastics obtained control of 100 percent of the capital stock of Pliant upon Pliant's emergence from reorganization pursuant to a proceeding under Chapter 11 for a purchase price of $602.7 million. Pliant is a manufacturer of films and flexible packaging for food, personal care, medical, agricultural and industrial applications. As of Dec. 27, 2014, Berry Plastics had $5.17 billion in assets, $5.26 billion in liabilities, $13 million in redeemable non-controlling interest, and a $106 million stockholders' deficit. * * * As reported by the TCR on Jan. 30, 2015, Moody's Investors Service upgraded the corporate family rating of Berry Plastics to 'B1' from 'B2'. The upgrade of the corporate family rating reflects the pro-forma benefits from the recent restructuring and acquisitions. BLACKBOARD INC: S&P Retains 'B+' CCR Over $85MM Term Loan Add-On ---------------------------------------------------------------- Standard & Poor's Ratings Services said its 'B+' issue-level and '2' recovery ratings on Washington, D.C.-based educational technology company Blackboard Inc.'s (B/Stable/--) existing first-lien senior secured credit facility remain unchanged following the proposed $85 million incremental term loan B-3. The '2' recovery rating indicates S&P's expectation of substantial (70% to 90%; lower half of the range) recovery in the event of a default. The terms and conditions for the incremental term loan are the same as those for the existing first-lien term loan B-3. Blackboard intends to use the add-on loan to partially fund its $91.5 million acquisition of Schoolwires Inc., a provider of online communications and Web management solutions to the K-12 education market. The acquisition does not affect S&P's corporate credit rating or outlook on Blackboard. Despite the slight uptick in pro forma leverage to 7.5x from the current 7.3x, Standard & Poor's expects that Blackboard's fairly stable and consistent operating performance will allow it to reduce pro forma leverage to the low-7x area over the next 12 months. The corporate credit rating on Blackboard is based on S&P's assessment of the company's "fair" business risk profile, which reflects its leading position in the niche learning management technology market, strong brand recognition, and fairly good revenue visibility. The company's highly leveraged capital structure and aggressive acquisition strategy partially offset those factors. Given the company's leverage in excess of 7x, S&P views Blackboard's financial risk profile as "highly leveraged." RATINGS LIST Blackboard Inc. Corporate Credit Rating B/Stable/-- $952.2 mil. first-lien term loan due 2018 Senior Secured B+ Recovery Rating 2L BON-TON STORES: BlackRock Reports 4.9% Stake as of Feb. 28 ---------------------------------------------------------- BlackRock, Inc., disclosed in an amended Schedule 13G filed with the Securities and Exchange Commission that as of Feb. 28, 2015, it beneficially owned 865,820 shares of common stock of Bon-Ton Stores Inc., which represents 4.9 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/kcSKB7 About Bon-Ton Stores The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 273 stores, which includes 10 furniture galleries and four clearance centers, in 26 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates. The stores offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. Visit the Web site at http://investors.bonton.com/ Bon-Ton Stores reported a net loss of $3.55 million for the fiscal year ended Feb. 1, 2014, a net loss of $21.6 million for the year ended Feb. 2, 2013, and a net loss of $12.1 million for the year ended Jan. 28, 2012. As of Nov. 1, 2014, the Company had $1.82 billion in total assets, $1.78 billion in total liabilities, and $48.7 million in total shareholders' equity. * * * As reported by the TCR on May 15, 2013, Moody's Investors Service upgraded Bon-Ton Stores's Corporate Family Rating to 'B3' from 'Caa1' and its Probability of Default Rating to 'B3-PD' from 'Caa1-PD'. "The upgrade of Bon-Ton's Corporate Family Rating considers the company's ability to drive modest same store sales growth as well as operating margin expansion beginning in the second half of 2012 and that these positive trends have continued, with the company reporting that its same store were positive, and EBITDA margins expanded, in the first fiscal quarter of 2013," said Moody's Vice President Scott Tuhy. As reported by the TCR on May 17, 2013, Standard & Poor's Ratings Services affirmed the 'B-' corporate credit rating on Bon-Ton Stores. BPZ RESOURCES: FMR LLC No Longer Owns Shares as of March 9 ---------------------------------------------------------- FMR LLC, Edward C. Johnson 3d and Abigail P. Johnson disclosed in an amended Schedule 13G filed with the Securities and Exchange Commission that as of March 9, 2015, they no longer owned shares of common stock of BPZ Resources. Edward C. Johnson 3d is a director and the Chairman of FMR LLC and Abigail P. Johnson is a director, the vice chairman, the chief executive officer and the president of FMR LLC. A copy of the regulatory filing is available for free at: http://is.gd/RohVY3 About BPZ Resources BPZ Energy -- http://www.bpzenergy.com/-- which trades as BPZ Resources, Inc., under ticker symbol BPZ on the New York Stock Exchange and the Bolsa de Valores in Lima, is an independent oil and gas exploration and production company which has license contracts covering 1.9 million net acres in offshore and onshore Peru. BPZ Resources maintains an office in Victoria, Texas, and through its subsidiaries maintains offices in Lima and Tumbes, Peru and Quito, Ecuador. BPZ Resources sought Chapter 11 protection (Bankr. S.D. Tex. Case No. 15-60016) in Victoria, Texas, on March 9, 2015. The case is pending before the Honorable David R. Jones. The Debtor has tapped Stroock & Stroock & Lavan LLP as bankruptcy counsel, Hawash Meade Gaston Neese & Cicack LLP, as local Texas counsel, Houlihan Lokey Capital, Inc., as investment banker, Baker Hostetler, as the audit committee's special counsel; and Kurtzman Carson Consultants as claims and noticing agent. The Debtor disclosed total assets of $364 million and debt of $275 million. BRIAR'S CREEK: Keen-Summit to Hold Auction on April 29 ------------------------------------------------------ Keen-Summit Capital Partners LLC will hold a bankruptcy auction for the property of The Golf Club at Briar's Creek on April 29, 2015. Interested parties are required to make a minimum bid of $11.8 million no later than April 24, 2015. The firm can be reached at (646) 381-9222. The sale is subject to bankruptcy court approval. About Briar's Creek Briar's Creek Golf, LLC, sought Chapter 11 protection (Bankr. D. S.C. Case No. 15-00712) in Charleston, South Carolina, on Feb. 9, 2015. The Debtor is represented by G. William McCarthy, Jr., Esq., Daniel J. Reynolds, Jr., Esq., and W. Harrison Penn, Esq., at McCarthy Law Firm, LLC, in Columbia, South Carolina. The Debtor owns The Golf Club at Briar's Creek, in Johns Island, South Carolina. The Debtor disclosed that the property's value is unknown and the property secures $6.74 million of debt. Secured creditors Edward L. Myrick Sr. and South Coast Community Bank are owed $3.89 million and $2.85 million. The Debtor is pursuing a sale of substantially all of its assets to Briar's Creek Holdings, LLC, for a purchase price of $11.3 million, which consists of $7.4 million in cash and assumption of the $3.9 million secured debt owed to Edward L. Myrick, Sr., plus assumption of the post-closing liabilities under the Debtor's executory contracts. BRUSH CREEK: Files 4th Amended Reorganization Plan -------------------------------------------------- Brush Creek Airport, LLC, filed with the U.S. Bankruptcy Court for the District of Colorado a fourth amended plan of reorganization and accompanying disclosure statement, which Plan will be funded by proceeds from the sale lots in the Buckhorn Ranch Subdivision and the operation of the Upper East River Water Company. All classes of claims are impaired. Under the Plan, the Reorganized Debtor will satisfy the secured claims either from the proceeds of the sale of the lots securing the claims or out of the proceeds generated by the collateral securing those claims. Pursuant to an amended settlement agreement, the Debtor and Buckhorn Ranch Association, Inc., which holds the only general unsecured claim against the Debtor, agreed to completely release and waive any existing claims against one another except as stated in the settlement agreement. The Debtor also agrees to begin paying its ordinary dues and assessment to the Association beginning on Jan. 1, 2015, in the approximate amount of $11,640. The Bankruptcy Court has set March 16, 2015, as deadline for parties to file their objections to the disclosure statement explaining the Debtor's amended Chapter 11 plan. A full-text copy of the Disclosure Statement dated March 10, 2015, is available at http://bankrupt.com/misc/BRUSHCREEKds0310.pdf About Brush Creek Airport Brush Creek Airport, LLC, is the real estate developer of the Buckhorn Ranch Subdivision in unincorporated Gunnison County, near Crested Butte, Colorado. The Buckhorn Ranch Subdivision consists of 249 lots and features a private airstrip and fishing and recreational licenses for a portion of the Upper East River. It owns 97 improved lots in the Buckhorn Ranch Subdivision that are available for construction, but upon which no homes have been built. It also owns the Upper East River Water Company, LLC, which provides water taps for lots and water services for homes in the subdivision. Brush Creek Airport, LLC filed a Chapter 11 bankruptcy petition (Bankr. D. Col. Case No. 14-14630) in Denver on April 10, 2014. The Debtor estimated assets of $10 million to $50 million and debt of $1 million to $10 million. The Debtor has employed Sender Wasserman Wadsworth, P.C. as counsel and 5280 Accounting Services, LLC as accountants and bookkeepers. CAL DIVE: Can Employ Kurtzman as Claims & Noticing Agent -------------------------------------------------------- Cal Dive International, Inc., et al., sought and obtained authority from the U.S. Bankruptcy Court for the District of Delaware to employ Kurtzman Carson Consultants LLC as claims and noticing agent. KCC will provide the following bankruptcy administration services: (a) Prepare and serve required notices and documents in the Chapter 11 cases in accordance with the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure in the form and manner directed by the Debtors and/or the Court, including: (i) notice of the commencement of the Chapter 11 cases, (ii) notice of any claims bar date, (iii) notices of transfers of claims (if any), (iv) notices of objections to claims and objections to transfers of claims (if any), (v) notices of any hearings on a disclosure statement and confirmation of the Debtors' Plan, including under Federal Rule of Bankruptcy Procedure 3017(d), (vi) notice of the effective date of the Plan, and (vii) all other notices, orders, pleadings, publications, and other documents as the Debtors or Court may deem necessary or appropriate for an orderly administration of these chapter 11 cases; (b) Maintain an official copy of the Debtors' schedules of assets and liabilities and statements of financial affairs, listing the Debtors' known creditors and the amounts owed, if requested; (c) Maintain (i) a list of all potential creditors, equity holders, and any parties in interest and (ii) a "core" mailing list consisting of all parties described in Federal Rule of Bankruptcy Procedure 2002(i), (j), and (k) and those parties that have filed a notice of appearance under Federal Rule of Bankruptcy Procedure 9010; update and make those lists available upon request by any party in interest or the Clerk; (d) Furnish a notice to all potential creditors of the last date for filing proofs of claim and a form for filing a proof of claim, after such notice and form are approved by the Court, and notify potential creditors of the existence, amount, and classification of their respective claims as set forth in the Schedules, which KCC can carry out by including such information (or the lack thereof, in cases where the Schedules indicate no debt due to the subject party) on a customized proof of claim form provided to potential creditors; (e) For all notices, motions, orders, or other pleadings or documents served, prepare and file or cause to be filed with the Clerk an affidavit or certificate of service within seven business days of service that includes: (i) either a copy of the notice served or the docket number(s) and title(s) of the pleading(s) served, (ii) an alphabetical list of persons to whom it was mailed with their addresses, (iii) the manner of service, and (iv) the date served; (f) Process any proofs of claim received, including those received by the Clerk, check processing for accuracy, and maintain the original proofs of claim in a secure area; (g) Maintain the official claims register (if any) for each Debtor on behalf of the Clerk; provide the Clerk, upon the Clerk's request, with certified, duplicate unofficial Claims Registers; and specify in the Claims Registers the following information for each claim docketed: (i) the claim number assigned, (ii) the date received, (iii) the name and address of the claimant and agent, if applicable, who filed the claim, (iv) the amount asserted, (v) the asserted classification(s) of the claim (e.g., secured, unsecured, priority), (vi) the applicable Debtor, and (vii) any disposition of the claim; (h) Implement necessary security measures to ensure the completeness and integrity of the Claims Registers and the safekeeping of the original claims; (i) Record any transfers of claims and provide any notices of those transfers as required by Federal Rule of Bankruptcy Procedure 3001(e); (j) Relocate, by messenger or overnight delivery, any court-filed proofs of claim to KCC's offices, not less than weekly; (k) Upon completion of the docketing process for any claims received to date for each case, provide to the Clerk copies of the Claims Registers for the Clerk's review; (l) Monitor the Court's docket for all notices of appearance, address changes, and claims-related pleadings and orders filed and make necessary notations on or changes to the Claims Register and any service or mailing lists, including the identification and elimination of duplicative names and addresses from those lists; (m) Identify and correct any incomplete or incorrect addresses in any mailing or service lists; (n) Assist in the dissemination of information to the public and respond to requests for administrative information on the Chapter 11 cases as directed by the Debtors or the Court, including through a case website or call center; (o) If the Chapter 11 cases are converted to cases under Chapter 7 of the Bankruptcy Code, contact the Clerk's office within three days of notice to KCC of entry of the order converting the cases; (p) Thirty days before the close of the Chapter 11 cases, to the extent practicable, request that the Debtors submit to the Court a proposed order dismissing KCC as Claims and Noticing Agent and terminating its services in such capacity upon completion of its duties and responsibilities and upon the closing of the Chapter 11 cases; (q) Within seven days of notice to KCC of entry of an order closing the Chapter 11 cases, provide to the Court the final version of the Claims Registers as of the date immediately before the close of the Chapter 11 cases; and (r) At the close of the Chapter 11 cases, box and transport all original documents, in proper format, as provided by the Clerk's office, to (i) the Federal Archives Record Administration, located at Central Plains Region, 200 Space Center Drive, Lee's Summit, MO 64064 or (ii) any other location requested by the Clerk's office. Prior to the Petition Date, the Debtors provided KCC a $50,000 retainer. The Debtors will pay KCC the following hourly rates: Director/Senior Managing Consultant $175 Consultant/Senior Consultant $70-$160 Project Specialist $50-$95 Technology/Programming Consultant $45-$85 Clerical $25-$45 Solicitation Lead/Securities Director $215 Senior Securities Consultant $200 The firm will also be reimbursed for any necessary out-of-pocket expenses. Evan Gershbein, the Senior Vice President of Corporate Restructuring Services of Kurtzman Carson Consultants LLC, assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors or their estates. About Cal Dive International Cal Dive International, Inc., headquartered in Houston, Texas, is a marine contractor that provides manned diving, pipelay and pipe burial, platform installation and salvage, and light well intervention services to the offshore oil and natural gas industry on the Gulf of Mexico OCS, Northeastern U.S., Latin America, Southeast Asia, China, Australia, West Africa, the Middle East, and Europe, with a diversified fleet of dive support vessels and construction barges. Cal Dive had decided not to pay $2.2 million in interest due Jan. 15, 2015, on its 5.00% convertible senior notes due 2017. Cal Dive and its U.S. subsidiaries filed simultaneous voluntary petitions (Bankr. D. Del. Lead Case No. 15-10458) on March 3, 2015. Through the Chapter 11 process, the Company intends to sell non-core assets and intends to reorganize or sell as a going concern its core subsea contracting business. The Debtors tapped Richards, Layton & Finger, P.A., as counsel, O'Melveny & Myers LLP, as co-counsel; and Kurtzman Carson Consultants, LLC, as claims and noticing agent. CAL DIVE: Court Issues Joint Administration Order ------------------------------------------------- Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware issued an order directing joint administration of the Chapter 11 cases of Cal Dive International, Inc., and its debtor affiliates under lead case no. 15-10458 (CSS). About Cal Dive International Cal Dive International, Inc., headquartered in Houston, Texas, is a marine contractor that provides manned diving, pipelay and pipe burial, platform installation and salvage, and light well intervention services to the offshore oil and natural gas industry on the Gulf of Mexico OCS, Northeastern U.S., Latin America, Southeast Asia, China, Australia, West Africa, the Middle East, and Europe, with a diversified fleet of dive support vessels and construction barges. Cal Dive had decided not to pay $2.2 million in interest due Jan. 15, 2015, on its 5.00% convertible senior notes due 2017. Cal Dive and its U.S. subsidiaries filed simultaneous voluntary petitions (Bankr. D. Del. Lead Case No. 15-10458) on March 3, 2015. Through the Chapter 11 process, the Company intends to sell non-core assets and intends to reorganize or sell as a going concern its core subsea contracting business. The Debtors tapped Richards, Layton & Finger, P.A., as counsel, O'Melveny & Myers LLP, as co-counsel; and Kurtzman Carson Consultants, LLC, as claims and noticing agent. CAL DIVE: Court Issues Sec. 362 Stay Order ------------------------------------------ Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware issued an order confirming the protections of Sections 362, 365 and 525 of the Bankruptcy Code and restraining any action in contravention of those statutes in the Chapter 11 cases of Cal Dive International, Inc., et al. Pursuant to the Order, Judge Sontchi stays, restrains and enjoins all persons from, among other things, commencing or continuing any judicial, administrative, or other action or proceeding against the Debtors that was or could have been commenced before the Petition Date or recovering a claim against the Debtors that arose before the Petition Date. About Cal Dive International Cal Dive International, Inc., headquartered in Houston, Texas, is a marine contractor that provides manned diving, pipelay and pipe burial, platform installation and salvage, and light well intervention services to the offshore oil and natural gas industry on the Gulf of Mexico OCS, Northeastern U.S., Latin America, Southeast Asia, China, Australia, West Africa, the Middle East, and Europe, with a diversified fleet of dive support vessels and construction barges. Cal Dive had decided not to pay $2.2 million in interest due Jan. 15, 2015, on its 5.00% convertible senior notes due 2017. Cal Dive and its U.S. subsidiaries filed simultaneous voluntary petitions (Bankr. D. Del. Lead Case No. 15-10458) on March 3, 2015. Through the Chapter 11 process, the Company intends to sell non-core assets and intends to reorganize or sell as a going concern its core subsea contracting business. The Debtors tapped Richards, Layton & Finger, P.A., as counsel, O'Melveny & Myers LLP, as co-counsel; and Kurtzman Carson Consultants, LLC, as claims and noticing agent. CAL DIVE: Has Interim Approval of Equity Transfer Protocol ---------------------------------------------------------- Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware gave Cal Dive International, Inc., et al., interim authority to establish notice and hearing procedures for transferring or claiming a worthless stock deduction for equity securities. The procedures provide that any person or entity who current is or becomes a substantial shareholder must file with the Court a notice of that status immediately after becoming a substantial shareholder. A "Substantial Shareholder" is any person or entity that beneficially owns at least 4,416,069 shares -- representing approximately 4.5% of tthe 98,134,871 issued and outstanding -- of the common stock of Cal Dive. The final hearing on the motion will be held on March 30, 2015, at 2:00 p.m. (prevailing Eastern Time). Any objections or responses to entry of a final order on the motion must be filed on or before March 23. About Cal Dive International Cal Dive International, Inc., headquartered in Houston, Texas, is a marine contractor that provides manned diving, pipelay and pipe burial, platform installation and salvage, and light well intervention services to the offshore oil and natural gas industry on the Gulf of Mexico OCS, Northeastern U.S., Latin America, Southeast Asia, China, Australia, West Africa, the Middle East, and Europe, with a diversified fleet of dive support vessels and construction barges. Cal Dive had decided not to pay $2.2 million in interest due Jan. 15, 2015, on its 5.00% convertible senior notes due 2017. Cal Dive and its U.S. subsidiaries filed simultaneous voluntary petitions (Bankr. D. Del. Lead Case No. 15-10458) on March 3, 2015. Through the Chapter 11 process, the Company intends to sell non-core assets and intends to reorganize or sell as a going concern its core subsea contracting business. The Debtors tapped Richards, Layton & Finger, P.A., as counsel, O'Melveny & Myers LLP, as co-counsel; and Kurtzman Carson Consultants, LLC, as claims and noticing agent. CAL DIVE: Quin Hebert to Act as CDOCI Foreign Representative ------------------------------------------------------------ Cal Dive International, Inc., et al., sought and obtained authority from Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware for Quin Hebert to act as foreign representative of Cal Dive Offshore Contractors, Inc. (CDOCI) pursuant to Section 1505 of the Bankruptcy Code. Mr. Hebert, in his capacity as chief executive officer and member of the board of CDOCI, is authorized to act as the foreign representative of CDOCI in any judicial or other proceeding in Mexico, and may act in any way permitted by applicable foreign law, including, without limitation, (i) seeking recognition of CDOCI's Chapter 11 case in any Mexican proceeding, and (ii) requesting that the Mexican courts lend assistance to the U.S. Court in protecting the property of CDOCI's assets. About Cal Dive International Cal Dive International, Inc., headquartered in Houston, Texas, is a marine contractor that provides manned diving, pipelay and pipe burial, platform installation and salvage, and light well intervention services to the offshore oil and natural gas industry on the Gulf of Mexico OCS, Northeastern U.S., Latin America, Southeast Asia, China, Australia, West Africa, the Middle East, and Europe, with a diversified fleet of dive support vessels and construction barges. Cal Dive had decided not to pay $2.2 million in interest due Jan. 15, 2015, on its 5.00% convertible senior notes due 2017. Cal Dive and its U.S. subsidiaries filed simultaneous voluntary petitions (Bankr. D. Del. Lead Case No. 15-10458) on March 3, 2015. Through the Chapter 11 process, the Company intends to sell non-core assets and intends to reorganize or sell as a going concern its core subsea contracting business. The Debtors tapped Richards, Layton & Finger, P.A., as counsel, O'Melveny & Myers LLP, as co-counsel; and Kurtzman Carson Consultants, LLC, as claims and noticing agent. CALMENA ENERGY: Canadian Case Recognized as Foreign Main Proceeding ------------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas entered an order granting the petition filed by Ernst & Young Inc., as the court-appointed receiver of Calmena Energy Services Inc., et al., recognizing the Debtors' cases as foreign main proceeding under Chapter 15 of the U.S. Bankruptcy Code. As reported in the Troubled Company Reporter on Feb. 13, 2015, E&Y asserted that the Canadian Proceeding is a foreign main proceeding within the meaning of 11 U.S.C. Section 1502(4) because the Debtors' center of main interests is in Canada. The Debtors have operations in various resource basis internationally, including locations in the United States (Conroe and Oklahoma City), Mexico, Libya, and Colombia, but the Calmena Entities' headquarters is unquestionably anchored in Calgary as all of the CESI's directors, officers, senior management, financial services, strategic operations, safety auditors, and investor relations are located in Calgary, R. Andrew Black, Esq., at Norton Rose Fulbright US LLP, in Houston, Texas, tells the U.S. Court. Mr. Black related that as of the Petition Date, the U.S. Debtors do not have any active drilling contracts in the United States or Canada, and the Receiver has already terminated the majority of the employees in the United States and Canada. Moreover, most of the rigs used by the Debtors are owned by Non-Debtor Entities and leased to the Debtors as necessary, Mr. Black says. The only ongoing operations by the Calmena Entities are existing contracts by Non-Debtor Entities in Mexico and the remaining assets of the Debtor entity are tools, equipment, and inventory at the Conroe and Oklahoma City locations, as well as the assets at the corporate offices in Calgary, Mr. Black added. About Calmena Energy Ernst & Young Inc., as foreign representative, filed petitions under Chapter 15 of the U.S. Bankruptcy Code on behalf of Calgary, Canada-based Calmena Energy Services Inc. and its three affiliates. The lead Chapter 15 case is Case No. 15-30786. The case is assigned to Judge Karen K. Brown of the U.S. Bankruptcy Court for the Southern District of Texas (Houston). The Chapter 15 petitioner is represented by Robert Andrew Black, Esq., at Norton Rose Fulbright LLP, in Houston, Texas. CATASYS INC: 2015 Investor Presentation --------------------------------------- Catasys, Inc., filed with the Securities and Exchange Commission a copy of its investor presentation entitled "The Health Plan Solution to the High Cost of Substance Abuse", which is available for free at http://is.gd/Xjptaq About Catasys Inc. Based in Los Angeles, California, Hythiam, Inc., n/k/a Catasys, Inc., is a healthcare services management company, providing through its Catasys(R) subsidiary specialized behavioral health management services for substance abuse to health plans. Catasys reported a net loss of $4.67 million on $866,000 of total revenues for the 12 months ended Dec. 31, 2013, as compared with a net loss of $11.6 million on $541,000 of total revenues during the prior year. 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 incurred significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2013. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "Our financial statements have been prepared on the basis that we will continue as a going concern. At September 30, 2014, cash and cash equivalents amounted to $1.5 million and we had a working capital deficit of approximately $1.5 million. In January 2014, May 2014, and September 2014, we closed on financings of approximately $1.0, $1.5, and $1.5 million, respectively. We have incurred significant operating losses and negative cash flows from operations since our inception. During the nine months ended September 30, 2014, our cash used in operating activities of continuing operations was $3.4 million. We anticipate that we could continue to incur negative cash flows and net losses for the next twelve months. The financial statements do not include any adjustments relating to the recoverability of the carrying amount of the recorded assets or the amount of liabilities that might result from the outcome of this uncertainty. As of September 30, 2014, these conditions raised substantial doubt as to our ability to continue as a going concern. We expect our current cash resources to cover expenses through the end of December 2014, however delays in cash collections, revenue, or unforeseen expenditures, could negatively impact our estimate. We are in need of additional capital, however, there is no assurance that additional capital can be timely raised in an amount which is sufficient for us or on terms favorable to us and our stockholders, if at all. If we do not obtain additional capital, there is a significant doubt as to whether we can continue to operate as a going concern and we will need to curtail or cease operations or seek bankruptcy relief. If we discontinue operations, we may not have sufficient funds to pay any amounts to stockholders," the Company stated in its quarterly report for the period ended Sept. 30, 2014. CHARLES SCHWAB: Fitch Affirms 'BB+' Preferred Stock Rating ---------------------------------------------------------- Fitch Ratings has affirmed the ratings of Charles Schwab Corporation at 'A/F1'. The Rating Outlook is Stable. KEY RATING DRIVERS - IDR and Senior Debt: The rating affirmation reflects Schwab's leading market position in the retail brokerage space, increasing earnings diversity, strong operating leverage and margins associated with its business model, and appropriate cash flow and balance sheet leverage metrics. Rating constraints include the cyclicality of the business model and the potential for competition and/or operational risks. Over the past several years, Schwab has continued to evolve its business model away from pure trading commissions and more toward a full service financial firm catering to the needs of the mass affluent and mass market retail investors. This includes a strong focus on asset/wealth management products and banking products and away from traditional trading products. Fitch believes this has enhanced Schwab's overall franchise by improving wallet share with customers. It has helped to create sticky, profitable and long-term relationships with its clients that now afford Schwab increased opportunities to capture incremental revenue through cross-selling. Schwab's key value proposition to its clients is one of offering a myriad of low cost products to its client base with good customer service. Schwab seeks to achieve this through significant investments in technology to streamline operations and improve customer interfaces. Fitch views this approach very positively from a credit perspective, and notes that the strength of Schwab's franchise support's rating action and is a key differentiator in its ratings compared to peers. Over the last year, Schwab has benefited from continued growth in asset management and other fee revenue, which constituted 48% of the company's revenue at year-end 2014. Similarly, despite the low short-term interest rate environment, Schwab has utilized deposit growth at Schwab Bank to boost net interest income (NII) over the last year. NII accounted for 38% of the company's revenue at year-end 2014. Additionally, given higher markets in 2014, trading revenue remained good, but Schwab continues to use discounted trading as a subsidized marketing tool to help gather new assets. Lastly, Fitch continues to believe there is more earnings upside for Schwab given its positive sensitivity to higher short-term interest rates. This is due to relatively short duration investments which should reprice more quickly than deposits in a higher short-term interest rate environment. At certain points in the interest rate cycle, this could drive NII to as much as 55% of overall revenue and also significantly boost the company's profit margin and ROE, although this would be viewed as a cyclical dynamic rather than a structural one. Schwab's revenue growth as well as a continued focus on managing growth in expenses led to higher net income of $1.3 billion in 2014 which translated to a 12% return on average common equity (ROE), a 100 basis point improvement relative to the prior year. This has also led to an improvement in leverage metrics. At the end of 2014, Schwab's adjusted debt to earnings before interest, depreciation and amortization (EBITDA) declined 0.76x from 0.91x in 2013, which compares favorably to similarly rated entities. Including Schwab's recent $1 billion senior unsecured issuance, whose proceeds will largely be held in high quality liquid assets (HQLA) comprised of treasury securities, Schwab's Fitch calculated pro forma adjusted debt-to-EBITDA metric of 1.16x is still compares well to other similarly rated entities. Fitch also views positively that Schwab's Tier 1 Leverage ratio increased to 6.9% as of YE2014, up from 6.4% at YE2013. RATING SENSITIVITIES - IDRs and Senior Debt: As Schwab's business model continues to evolve away from pure trading to a mix of net interest income, asset management earnings, and trading earnings, there could be some modest upside to ratings should Fitch observe greater revenue stability through various market cycles, combined with sustained capital and liquidity levels. Fitch believes the most significant rating risk is a large operational loss specific to Schwab that causes clients to flee the firm. Operational losses are inherently difficult to predict and measure and do serve as an upwards rating limitation. With the expanding lending platform, underwriting discipline and asset quality are also increasingly important rating drivers. An additional risk that could impact ratings over time is the growth of Schwab Bank. Should the company begin to reach for yield in its investment portfolio such that it increases the credit or interest rate risk profile of the balance sheet, ratings or the Rating Outlook could come under pressure. Finally, Schwab does derive some revenue from payment for order flow, which is akin to receiving rebates from directing client trades to a certain market makers. While this may provide more efficient execution for clients, given current industry scrutiny that may lead to regulatory changes. Fitch believes it is possible that Schwab could have to adjust its routing practices. Fitch believes that to the extent there is any potential outsize monetary or reputational implications from this industry scrutiny described above it could adversely affect the ratings. KEY RATING DRIVERS - Support Ratings and Support Floor Ratings: Schwab has a support rating of '5' and a support floor rating of 'NF' indicating that support is unlikely. RATING SENSITIVITIES - Support Ratings and Support Floor Ratings: To the extent that Fitch's views on the perceived likelihood of extraordinary support being extended to Schwab change, there could be a change in the support and support floor ratings. At this juncture it is not anticipated. KEY RATING DRIVERS - Subordinated Debt and Other Hybrid Securities: Schwab has a preferred stock rating of 'BB+', which is five notches below its IDR given its position in the capital structure and potential for non-performance compared with other issuances. This includes two notches for non-performance and three notches for loss absorbing capacity. RATING SENSITIVITIES - Subordinated Debt and Other Hybrid Securities: Ratings for Schwab's preferred stock are notched five notches from the IDR based on Fitch's treatment of preferreds in bank capital as this source of capital for Schwab has historically been down streamed to support its banking operations. As such, changes in ratings on the preferred stock are primarily sensitive to any change in the IDR, where the existing notching would be maintained in conjunction with any change in the IDR, at least for so long as the IDR is investment grade. Fitch has affirmed these ratings: Charles Schwab Corporation: -- Long-term IDR at 'A'; Outlook Stable. -- Short-term IDR at 'F1'; -- Senior unsecured notes at 'A'; -- Short-term debt at 'F1'; -- Preferred stock at 'BB+'; -- Support at '5'; -- Support floor at 'NF'. CHASSIX HOLDINGS: Case Summary & 40 Largest Unsecured Creditors --------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Chassix Holdings, Inc. 15-10578 300 Galleria Office Center, Suite 501 Southfield, MI 48034 Automotive Properties of New York, LLC 15-10577 UC Holdings, Inc. 15-10579 Chassix, Inc. 15-10580 Diversified Machine, Inc. 15-10581 Diversified Machine Bristol, LLC 15-10582 Chassix Georgia Machining, LLC 15-10583 DMI Columbus, LLC 15-10584 Diversified Machine Montague, LLC 15-10585 Diversified Machine, Milwaukee LLC 15-10586 DMI Edon LLC 15-10587 Mexico Products I, LLC 15-10588 DMI China Holding LLC 15-10589 Concord International, Inc. 15-10590 SMW Automotive, LLC 15-10591 Automotive, LLC 15-10592 Chassis Co. of Michigan, LLC 15-10593 AluTech, LLC 15-10594 Type of Business: Automotive Machining and Casting Supplier Chapter 11 Petition Date: March 12, 2015 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: Hon. Michael E. Wiles Debtors' Counsel: Ray C Schrock, Esq. WEIL, GOTSHAL & MANGES LLP 767 Fifth Avenue New York, NY 10153 Tel: 212-310-8000 Fax: 212-310-8000 Email: ray.schrock@weil.com Debtors' LAZARD FRERES & CO. LLC Investment Banker: Debtors' Armen Emrikian Restructuring FTI CONSULTING, INC. Advisors: 227 West Monroe Street, Suite 900 Chicago, IL 60606 Tel: 312.759.8100 Fax: 312.759.8119 Email: armen.emrikian@fticonsulting.com Debtors' PRIME CLERK LLC Claims and Noticing Agent: Total Assets: $833 million Total Liabilities: $784 million The petition was signed by David J. Woodward, interim chief financial officer. Consolidated List of Debtors' 40 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Delaware Trust Company Unsecured Notes $157,971,125 2711 Centerville Road Wilmington, DE 19808 Attn: Sandra E. Horwitz Tel: 877.374.6010, ext. 62412 Fax: 302.636.8666 Beck Aluminum Corporation Trade Claim $12,353,000 6150 Parkland Blvd. Paragon II, Suite 260 Mayfield Heights, OH 44124 Attn: Bryan Beck Tel: 440.684.4848 Fax: 216.861.0545 bryan@beckalum.com Koyo Bearings North America Trade Claim $4,419,945 4895 Dressler Road NW #B Canton, OH 44718 Attn: Keith Genzel Tel: 734.454.7560 Fax: 440.825.9347 keith.genzel@jtekt.com Automotive Casting Technology, Inc. Trade Claim $4,016,341 14638 Apple Drive Fruitport, MI 49415 Attn: Mike Weber Tel: 586.909.1230 Fax: 616.842.5872 mweber@c-t-c.com C.H. Robinson Company, Inc. Trade Claim $3,016,269 14701 Charlson Road Suite 2400 Eden Prarie, MN 55347 Attn: Brian Tonn Tel: 952.683.3766 Fax: 952.683.3768 brian.tonn@chrobinson.com NTN Bearing Corporation Trade Claim $2,277,170 39255 W 12 Mile Road Farmington Hills, MI 48331-2975 Attn: Chris Meissnest Tel: 248.324.4574 Fax: 847.294.1000 cmeissnest@ntnusa.com Fagor Ederlan, S.Coop. Trade Claim $2,176,811 Torrebaso Pasealekua 7 Eskoriatza, Spain 20540 Attn: Gumaro Rivera Tel: 0034.943.719000 Fax: 34.943.719.001 g.rivera@fagorederlan.com ZF Chassis Components, LLC Trade Claim $2,137,417 1570 East P Street Extension Newton, NC 28658-3059 Attn: Doug Kramer Tel: 734.354.1485 Fax: 734.416.1948 doug.kramer@zf.com SKF USA Inc. Trade Claim $2,077,969 46815 Port Street Plymouth, MI 48170 Attn: Michael Draughn Tel: 734.414.6991 Fax: 734.414.6850 michael.draughn@skf.com Grede LLC-St. Cloud Trade Claim $2,074,069 St. Cloud Foundry 5200 Foundry Circle St. Cloud, MN 56303 Attn: Matt McDonald Tel: 248.440.9522 Fax: 248.440.9577 msmcdonald@grede.com P.F. Markey, Inc. Trade Claim $1,920,734 2880 Universal Drive Saginaw, MI 48603 Attn: Jim Terry Tel: 989.793.0900 Fax: 989.793.9511 jimterry@pfmarkey.com Iljin USA Corporation Trade Claim $1,764,411 28055 Haggerty Road Novi, MI 48377 Attn: John Anwiler Tel: 248.848.9303 Fax: 248.848.0566 janwiler@iljin.com Alcoa Primary Metals Trade Claim $1,663,161 1100 Riverview Tower 900 S. Gay Street Knoxville, TN 37902 Attn: Peter Smith Tel: 865.594.4823 Fax: 865.594.4981 peter.smith@alcoa.com Grede LLC-Reedsburg Trade Claim $1,644,325 700 Ash Street Reedsburg, WI 53959 Attn: Carrie Heiking Tel: 608.524.9407 Fax: 608.524.9501 cheiking@grede.com CTC Casting Technologies Co. Trade Claim $1,466,462 75 Remittance Drive, Suite 3232 Chicago, IL 60675-1212 Attn: Mike Weber Tel: 586.909.1230 Fax: 248.477.4891 mweber@c-t-c.com Cadillac Casting, Inc. Trade Claim $1,374,213 1500 4th Avenue Cadillac, MI 49601 Attn: Matt Roberts Tel: 734.347.7780 Fax: 231.779.9640 mroberts@cadillaccasting.com Anderson Express Trade Claim $1,353,506 580 W. Sherman Boulevard Muskegon Heights, MI 49444 Attn: Dan Arends Tel: 231.733.6014 Fax: 231.733.2166 darends@andersonexpressinc.com Zhongding USA Inc. Trade Claim $1,310,886 400 Detroit Avenue Monroe, MI 48162 Attn: Steven Michael Tel: 765.662.3607 Fax: 734.241.8354 steve.michael@zd-usa.com SW Industries, Inc. Trade Claim $1,293,862 40615 Koppernick Road Canton, MI 48187 Attn: Mark Reichenbacher Tel: 248.622.9725 Fax: 49.0.7402.74.118 m.reichenbacher@sw-machines.de ZF Lemforder Corporation Trade Claim $1,263,470 Brewer Components P.O. Box 933059 Atlanta, GA 31193-3059 Attn: Daniel Diaz Tel: 734.207.7769 Fax: 734.416.1948 daniel.diaz@zf.com Tuopu North America Limited Trade Claim $1,258,949 2100 Bloor Street W Unite 6283 Toronto, ON MS6 5A5 Attn: Gao Wei Tel: 8.680.1301 Fax: 8.680.1326 seekfull@hotmail.com Sustained Quality Trade Claim $1,190,008 431 E. Colfax Avenue Suite 100 South Bend, IN 46617 Attn: Lesley Maydon Tel: 574.231.6392 Fax: 267.295.8211 lmaydon@sustained-quality.com General Aluminum Manufacturing Co Trade Claim $1,079,197 6065 Parkland Boulevard Cleveland, OH 44124 Attn: Gary McLaughlin Tel: 440.947.2017 Fax: 440.947.2009 gmclaughlin@generalaluminum.com Makino, Inc. Trade Claim $1,009,881 7680 Innovation Way Mason, OH 45040 Attn: Bill Schwanki Tel: 248.320.7513 Fax: 513.573.7265 william.schwanki@makino.com Brembo S.p.A. Trade Claim $996,799 Via Brembo N.25 Curno Bergamo, Italy 24035 Attn: LeBlanc Thomas Tel: 734.468.2107 Fax: 39.035.605.300 tLeBlanc@us.brembo.com ManpowerGroup US Inc. Trade Claim $987,450 21271 Network Place Chicago, IL 60673-1212 Attn: Mike Dixon Tel: 217.416.5331 Fax: N/A mike.dixon@manpower.com Bosello High Technology srl Trade Claim $956,108 Via San Bernardo 25/27 Cassano Magnago Italy 21012 Attn: Moreno Savio Tel: 39.0331.776109 Fax: N/A moreno.savio@bosello.it Dongah America, Inc. Trade Claim $950,195 1807 East Maple Road Troy, MI 48084 Attn: Hanik Bae Tel: 248.918.5810, ext. 5823 Fax: 248.680.0166 hibae@dtrvms.com Central Corporation CTR Trade Claim $916,888 3000 Town Center Southfield, MI 48075 Attn: Jill Blair Tel: 248.358.1129, ext. 151 Fax: 248.339.2897 jblair@centralsales.net Employment Plus, Inc. Trade Claim $796,685 1801 S. Liberty Drive Suite 300 Bloomington, IN 47403 Attn: Amy Grinole Tel: 574.206.1522 Fax: 574.206.1565 agrinole@employmentplus.com Dynamic Machine of Detroit Trade Claim $752,917 1653 East Maple Road Troy, MI 48083 Attn: Julie Rice Tel: 248.404.6190 Fax: 248.404.6196 jrice@dynamicdetroit.com Jinyoung Industrial Co., Ltd. Trade Claim $736,414 472-7 Moknae-Dong Ansan-City Kyunggi-Do, Korea Attention: Ricky Tel: 82.31.492.3882 Fax: 82.31.492.3890 richy@i-jy.com Pusan Cast Iron Co., Ltd. Trade Claim $702,753 60-4, Haknam-Ri, Onsan-Eup Uljoo-Kun, Ulsan, Korea Attn: Ted Kim Tel: 82.1195.476464 Fax: 82.52.231.3860 tkim@pci21c.com Motion Industries, Inc. Trade Claim $687,431 4709 Wyland Drive Elkhart, IN 46516 Attn: Paul Blair Tel: 216.398.2200 Fax: 216.398.2220 paul.blair@motion-ind.com American Colloid Company Trade Claim $687,103 NW 5020 Minneapolis, MN 55485-5020 Attention: Darren Howard Tel: 423.265.5707 Fax: 423.265.4702 darren.howard@amcol.com Cobra Trading, LLC Trade Claim $672,516 2237 E. Enterprise Parkway Twinsburg, OH 44087 Attention: Kevin Dykstra Tel: 330.653.3526 Fax: 330.653.3527 rhoefler@cobratradingllc.com Aerotek, Inc. Trade Claim $653,233 555 Briarwood Circle Ann Arbor, MI 48108 Attention: Julia Graves Tel: 800.708.0312 Fax: 734.452.2095 jgraves@aerotek.com Brembo North America, Inc. Trade Claim $637,559 47765 Halyard Drive Plymouth, MI 48170 Attn: Trent DeGrazia Tel: 734.468.2124 Fax: 734.468.2161 tdegrazia@us.brembo.com Bennett Tooling Solutions Trade Claim $624,873 3320 Bay Road Saginaw, MI 48603 Attn: Kris Berg Tel: 989.797.5670 Fax: 989.797.5680 btsberg@gmail.com B&H Pattern Inc. Trade Claim $600,480 3240 W. Highview Drive Appleton, WI 54130 Attention: Amy Bloch Tel: 920.731.3861 CHASSIX HOLDINGS: Files for Chapter 11 with Prenegotiated Plan -------------------------------------------------------------- Chassix Holdings, Inc., a provider of components to automakers, sought bankruptcy protection after reaching terms of a balance sheet restructuring with its lenders and its customers, which include the Big 3 automakers Ford, GM, and Chrysler. "The Debtors believe that the contemplated prearranged reorganization will enable them to emerge from these chapter 11 cases as a robust, well-capitalized global supplier of chassis sub-frame components and powertrain products strongly aligned with their customers' needs," J. Mark Allan, Chassix's president, said in a court filing. The Debtors have reached an agreement on the terms of a financial and operational restructuring with their major stakeholders, including an ad hoc committee comprised of holders of approximately 72% of the Debtors' senior secured notes and approximately 80% of the Debtors' unsecured notes (the "Informal Committee of Noteholders"), Platinum Equity Advisors LLC, the Debtors' prepetition private equity sponsor, and certain affiliated entities and investment funds (collectively, "Platinum Equity"), and all of the Debtors' largest customers, including Ford Motor Company, General Motors LLC, FCA US LLC f/k/a Chrysler Group LLC, Nissan North America, Inc., and BMW Manufacturing Co., LLC, which will result in a significant and substantial infusion of new capital in the Debtors in the form of new debtor-in-possession and exit financing. The Debtors further anticipate exiting chapter 11 with a 68% reduction in their funded indebtedness and substantial improvements to their prospects for long-term stability and profitability. Specifically, pursuant to the prearranged chapter 11 plan of reorganization, the Debtors are proposing a restructuring that will achieve: (a) Approximately $250 million in debtor-in-possession financing comprised of a new $150 million revolving asset based lending facility to be provided by PNC Bank, National Association and a new $100 million term loan (which will convert to an exit term loan at emergence) to be provided by the Debtors' prepetition secured noteholders, to facilitate operations in chapter 11; (b) An infusion of $50 million by certain secured noteholders in the form of an additional exit term loan at emergence, as well as a commitment from the ABL DIP Lenders to work in good faith on acceptable terms for converting the $150 million revolving asset based lending facility to an exit asset based lending facility, that will provide ongoing liquidity for the Debtors post-emergence; (c) Conversion of approximately $375 million of the Debtors' senior secured notes and $158 million of the Debtors' unsecured notes to equity; (d) Agreements with the OEM Customers on long-term accommodations that will provide the Debtors with approximately $45 million in annual price increases new business and programs, as well as certain other valuable accommodations and protections, including waivers of setoff and plan distributions on account of the OEM Customers' substantial claims against the Debtors; (e) Prompt emergence from chapter 11; and (f) Pro rata distributions to holders of allowed General Unsecured Claims subject to certain conditions set forth in the Plan. The Plan provides for a comprehensive restructuring of the Debtors' prepetition obligations, preserves the going-concern value of the Debtors' businesses, maximizes creditor recoveries, provides for an equitable distribution to the Debtors' stakeholders and protects the jobs of employees. The agreements that the Debtors have reached with the OEM Customers are central to the Plan. Pursuant to the accommodation agreements, the Debtors will receive long-term accommodations and pricing relief from the OEM Customers for the benefit of their estates, creditors and other stakeholders. In addition to the substantial pricing and new business awards mentioned above, these valuable accommodations include the following: (a) A right of last refusal on certain future programs; (b) A continuation of certain interim accommodation implemented prior to the Commencement Date with respect to the Debtors' facility in Bristol, Indiana (the "Bristol Facility") designed to fund the Debtors' operating losses at the Bristol Facility; (c) A waiver by the OEM Customers of certain significant fees and expenses including expenses relating to premium and expedited freight, quality spill charges, outage costs, and third-party advisor fees and expenses; (d) significant liquidity enhancement from the acceleration of payment terms on outstanding purchase orders from the OEM Customers' standard payment terms; (e) Restrictions on the OEM Customers' ability to resource programs to the Debtors' competitors; and (f) Agreements by the OEM Customers to waive and/or limit their ability to set off or recoup charges against amounts owed to the Debtors. In exchange for these accommodations, the Debtors have committed to continue to produce and deliver component parts to the OEM Customers during the term of the Accommodation Agreements, as well as to provide certain assistance in connection with any resourcing activities that may be permitted under the agreement. The Debtors have further agreed to provide the OEM Customers with certain limited access rights to utilize the Debtors' facilities and equipment in the event there is a substantial likelihood the OEM Customers' production will be interrupted. These accommodations provide the Debtors with significant value and are an essential component of the Debtors' Plan as well as for their long-term prospects for successes and sustainability. The Plan provides for a significant deleveraging of the Debtors' balance sheet post-emergence: PREPETITION POST-EMERGENCE ----------- --------------- Revolving ABL Facility $135M Revolving Exit Facility $55M Secured Notes Due 2018 $375M Conv. Exit Term Loan $100M Unsec. Notes Due 2018 $158M Add'l Exit Term Loan $50M Capital Lease Oblig. $12M Capital Lease Oblig. $12M ------ ------ Total: $680M $217M The Plan also implements a global release and settlement of numerous Debtor-creditor and inter-creditor issues with the Debtors' existing equity sponsor, Platinum Equity, and the members of the Informal Committee of Noteholders. Under the Plan, and in accordance with the Global Settlement, the holders of Allowed Secured Note Claims will receive their Pro Rata share of approximately 97.5% of the New Common Stock (subject to dilution). In addition, under the terms of the Global Settlement, and in consideration of each of their substantial contributions to the Debtors' chapter 11 cases, (a) the Unsecured Noteholders will receive their pro rata share of approximately 2.5% (subject to dilution) of the Reorganized Debtors' new common stock and warrants to purchase an additional 5% of the New Common Stock (the "New Warrants") and (b) Platinum Equity will receive a release, as set forth in the Plan. The Plan further provides for distributions to holders of Allowed General Unsecured Claims. The terms of the Global Settlement, including the release and indemnification provisions incorporated in the Plan, are integral parts of the Plan and have been agreed to, and are supported by, the Debtors and the members of the Informal Committee of Noteholders. The Debtors faced an unprecedented sequence of events and circumstances during 2014 that ultimately led to the commencement of the chapter 11 cases. A combination of operational and financial difficulties due to, among other things, underpriced contracts and programs, compounded by a marked spike in the demand for automobile production in North America at a time when there was limited capacity in the machining and casting sectors, overwhelmed the Debtors' manufacturing facilities and capabilities. This perfect storm of events resulted in an onslaught of quality issues and missed release dates that significantly increased the Debtors' costs of manufacturing. These issues were most pronounced at the Bristol Facility, where the Debtors experienced precipitous losses that grew exponentially to over $16 million per month primarily due to significant premium and expedited freight charges and third-party consultant fees and expenses. By the fourth quarter of 2014, these operational issues -- which had snowballed at a rate that neither the Debtors, their customers, nor any of their other constituents had anticipated -- had severely impacted the Debtors' cash flows and erased any operating profit they had hoped to achieve due to the increase in production demand. Thus, in November of 2014 -- facing a severe liquidity crisis -- the Debtors and their professionals commenced good faith negotiations with the Informal Committee of Noteholders, the OEM Customers, and the Debtors' existing equity sponsor, Platinum Equity, to devise a comprehensive restructuring of the Debtors' businesses and provide the Debtors with much needed liquidity in the interim. As a result, on March 11, 2015, the Debtors reached an agreement with their key constituencies on the terms of the Plan, which contemplates an operational restructuring and a recapitalization of the Debtors' balance sheet. To evidence their support of the Debtors' restructuring, certain of the parties executed the Restructuring Support Agreement. In addition to securing support of the Plan in the form of the Restructuring Support Agreement, the Debtors have also secured $250 million in debtor-in-possession financing to provide them with sufficient liquidity to operate during the chapter 11 cases. By commencing the chapter 11 cases, the Debtors are seeking to effectuate their proposed restructuring and maximize their long-term growth prospects and operating performance. The Debtors believe that the contemplated prearranged reorganization will enable them to emerge from the chapter 11 cases as a robust, well-capitalized global supplier of chassis sub-frame components and powertrain products strongly aligned with their customers' needs. Hearing Today on First Day Motions The Debtors have filed their Prenegotiated Plan, along with a motion seeking approval of the explanatory Disclosure Statement, and a motion seeking approval of the Accommodation Agreement. The Debtors on the Petition Date also filed motions to: -- jointly administer their Chapter 11 cases; -- pay prepetition wages and benefits to employees; -- extend the deadline to file schedules; -- continue their existing cash management system; -- pay prepetition claims of critical vendors; -- pay prepetition obligations owed to foreign creditors; -- pay prepetition charges for shippers and warehousemen; -- continue tooling and warranty programs; -- pay prepetition taxes and assessments; -- obtain DIP financing and use cash collateral; -- pay insurance obligations; -- approve procedures for resolutions of claims under U.S.C. 11 Sec. 503(b)(9); -- grant adequate assurance of payment to utilities; -- employ professionals used in the ordinary course of business; and -- set a bar date for filing proofs of claim. The first day hearing is scheduled for March 13, 2015 at 10:00 a.m. at Courtroom 617 (MEW) in Manhattan. At the behest of the Debtors, Judge Michael E. Wiles on March 12 entered an emergency bridge order authorizing the Debtors to pay prepetition wages and use cash collateral to fund payroll. The judge also entered an order directing joint administration of the Chapter 11 cases under Case No. 15-10578 (Chassix Holdings, Inc., et al.) A copy of the declaration pursuant to Local Bankruptcy Rule 1007-2 is available for free at: http://bankrupt.com/misc/Chassix_1st_Day_Affidavit.pdf About Chassix Holdings Chassix is a global manufacturer and supplier of aluminum and iron chassis sub-frame components and powertrain products with both casting and machining capabilities. Based in Southfield, Michigan, Chassix and its subsidiaries operate 23 manufacturing facilities across six countries, providing safety critical automotive components, having content on approximately 64% of the largest platforms in North America. Their product mix maintains an even balance among trucks, minivans and SUVs, as well as small and medium size cars and cross-over vehicles. For the twelve months ended Dec. 31, 2014, the Debtors generated $1.37 billion in revenue on a consolidated basis. As of Dec. 31, 2014, the Debtors had $833 million in assets and $784 million in liabilities on a consolidated basis. Chassix Holdings, Inc., et al., sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 15-10578) in Manhattan on March 12, 2015, with a Chapter 11 plan that was negotiated with lenders and customers. Chassix Holdings estimated $500 million to $1 billion in assets and debt. The formal schedules of assets and liabilities are due March 26, 2015. The Debtors have tapped Weil, Gotshal & Manges LLP, as attorneys; Lazard Freres & Co, LLC, as investment banker; FTI Consulting, Inc. to provide an interim CFO and additional restructuring services; and Prime Clerk LLC, as claims and noticing agent. CONDOR DEVELOPMENT: Court Enters Final Decree Closing Cases ----------------------------------------------------------- U.S. Bankruptcy Judge Timothy W. Dore entered a final decree closing the Chapter 11 cases of Seattle Group, Ltd., and Condor Development LLC. The Court ordered that the cases may be reopened on an ex parte basis upon application by the Debtors, the U.S. Trustee, or any other party to address any issue or dispute related to the confirmed Plan. The Debtors stated that (i) they had substantially consummated confirmed Plan, and (ii) the distributions required under the confirmed Plan have been commenced. There had been no defaults under the confirmed Plan. Michael Seibert, in his capacity as Plan Agent, will continue to manage the Debtors and make decisions in relation to the operations and sale of the hotel throughout the life of the confirmed Plan. As reported in the Troubled Company Reporter on Nov. 28, 2014, Judge Dore signed off a stipulated order confirming the Fifth Amended Plan of Reorganization dated Sept. 29, 2014, for the Debtors. The stipulation with EastWest Bank, N.A., a secured and unsecured creditor in the case, provides that EastWest Bank's amended objection is deemed withdrawn, and the Plan is confirmed, subject to changes to the Plan, among other things: a. The definition of Allowed Unsecured EastWest Bank Unsecured Claim set forth in Section III.B.18 of the Plan will be amended to read as: "Allowed EastWest Bank Unsecured Claim" means the Unsecured Claim of EastWest bank, which pursuant to the terms of the settlement, will be $1,580,000 million." b. The first sentence of Section V. C of the Plan regarding the treatment of the Allowed Unsecured Claim of EastWest Bank will be amended to read as: "The Allowed Class 6 Claims including the Allowed EastWest Bank unsecured Claim will be paid as: (i) pro rata from an annual payment commencing on the first anniversary of the Effective date of 50% of the Net Cash Flow which payments will continue until a sale, at which time the allowed Class 6 claims will be paid the balance of the net proceeds of sale available after the payment of the sum of all unpaid Class 1 through 5 Allowed Claims. Judge Dore also ordered that Michael Seibert will act as the disbursing agent for payments to be made under the Plan. The Plan As reported in the TCR, the Debtors' Plan, as amended, provides for full payment of all secured and priority unsecured creditors and a distribution to unsecured creditors out of quarterly payments of Net Cash Flow. It also contemplates the potential sale of substantially all of the Debtors' property used in operating the Comfort Inns and Suites Hotel and relate property after a sustained 12-36 month period of improved operations and a period of removal of the Property from the market. The Debtors' Owners have also agreed to make available to the Hotel a $500,000 line of credit and a $100,000 equity contribution for capital improvements during the period of operations subject to approval of the Conservatorship Court. Under the Second Amended Disclosure Statement, the Debtors revealed that as of April 11, 2014, they had made payments to East West Bank of over $691,000 since the Petition Date -- most of which was paid by the Conservator who has made monthly payments of $34,500 to secured lender East West Bank every month since February 2013. Despite these payments, East West Bank filed a motion for relief from stay and an order was entered granting relief from stay, but prohibiting East West bank from selling the property located in SeaTac, Washington, until after July 31, 2014 -- the Conditional Stay Order -- in order to provide the Debtors with the opportunity to obtain confirmation of the Plan. A copy of the Debtors' April 11, 2014 Second Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/Condor_2ndAmdDS.PDF About Condor Development Condor Development LLC, aka Ciara Inn and Condor Management Group, operates the Comfort Inn Suites, a hotel located at SeaTac, Washington. Condor Development filed a Chapter 11 petition (Bankr. W.D. Wash. Case No. 12-13287) on March 30, 2012, in Seattle. In its schedules, the Debtor disclosed $16.4 million in total assets and $9.11 million in total liabilities. Affiliate Seattle Group also filed for Chapter 11 protection (Bankr. Case No. 12-13263) on March 30, 2012. The Debtor disclosed $15,501,088 in assets and $10,409,935 in liabilities as of the Chapter 11 filing. Vortman & Feinstein and Larry B. Feinstein initially represented the Debtors as counsel. They later withdrew from the case and were replaced by Lane Powell PC. Mary Jo Heston, Esq., of Lane Powell PC now serves as counsel to the Debtors. Seattle Group, Ltd., and Condor Development LLC filed a plan of liquidation that proposes the sale of substantially all of their real and personal property used in operating the Comfort Inns and Suites Hotel and related personal property. In January 2013, the case was reassigned to Judge Timothy W. Dore. COUTURE HOTEL: Enoch Joins Objection to Exclusivity Extensions -------------------------------------------------------------- Enoch Investments, Inc., a creditor in the Chapter 11 case of Couture Hotel Corporation, joined the objection of Mansa Capital, LLC, to Couture's motion to extend its exclusive periods to file and confirm its Plan of Reorganization. Mansa, in its objection, stated that nearly every single factor in the cause analysis suggested that the Court must deny the exclusivity motion and permit any party-in-interest to propose a plan of reorganization. Manza said that there are no unresolved contingencies present in the case that would necessitate an extension of the exclusive periods, and the Debtor may be attempting to use the extension of its exclusive period as a tactic to force Mansa to accept a plan with which it does not agree. As reported in the Troubled Company Reporter on Feb. 6, 2015, the Debtor is asking the Court to extend its exclusive period to file and confirm a plan of reorganization up to and including May 5, 2015, and July 6, respectively. The Debtor told the Court it is in the process of drafting a plan of reorganization that would maximize recovery to the estate, based upon its cash flows and financial statements. The Debtor said it has begun negotiations with Mansa, the principal lender on the Debtor's Wyndham Garden Inn in Dallas, Texas, regarding treatment of its claim that would lead to a consensual plan of reorganization. Furthermore, the Debtor and its counsel have engaged in conversations with multiple lenders and sources of capital to assist in confirmation of a plan of reorganization. A consensual plan of reorganization would minimize the cost of confirmation and would additionally maximize recovery to the estate as a whole, the Debtor added. Enoch Investments is represented by: Joyce W. Lindauer, Esq. 12720 Hillcrest Road, Suite 625 Dallas, TX 75230 Tel: (972) 503-4033 Fax: (972) 503-4034 About Couture Hotel Couture Hotel Corporation, fka Hugh Black-St Mary Enterprises, Inc., owns and operates four hotels: a Wyndham Garden Inn in Dallas, Texas, consisting of 356 rooms and remodeled in 2013; a Howard Johnson in Corpus Christi, Texas, consisting of 140 rooms and remodeled in 2012; a Howard Johnson in Las Vegas, Nevada, consisting of 110 rooms and remodeled in 2012; and an independent hotel in Las Vegas, Nevada (formerly branded as a Value Place), consisting of 121 rooms and also remodeled in 2012. The Las Vegas hotels are located at one of the entrances to Nellis Air Force base in North Las Vegas. The Debtor owns the real property and improvements, as well as the franchise rights to the hotels (except for Las Vegas Value Place). The Company sought Chapter 11 protection (Bankr. N.D. Tex. Case No. 14-34874) in Dallas, Texas, on Oct. 7, 2014. The case is assigned to Judge Barbara J. Houser. The Debtor has tapped Mark Sean Toronjo, Esq., at Toronjo & Prosser Law, as counsel. The Debtor, in an amended schedules, disclosed $20.8 million in assets and $27.8 million in liabilities as of the Chapter 11 filing. No creditors' committee or other official committee been appointed in the case. CREEKSIDE ASSOCIATES: Wants March 31 Set as Gen. Claims Bar Date ---------------------------------------------------------------- Creekside Associates, Ltd., asks the Bankruptcy Court to establish March 31, 2015, as the deadline for any individual or entity to file proofs of prepetition secured, unsecured, and 11 U.S.C. Sec. 503(b)(9) administrative expense claims. The Debtor also ask that the Court set June 17, 2015, as governmental claims bar date. Proofs of claim must be submitted to this address: Clerk's Office U.S. Bankruptcy Court for the Eastern District of Pennsylvania Robert N.C. Nix, Sr. Building 900 Market Street, Suite 400 Philadelphia, PA 19107 About Creekside Associates Creekside Associates, Ltd., owns and operates the Creekside Apartments, a 1000+ unit apartment complex located at 2500 Knights Road, Bensalem, Pennsylvania. Creekside Associates filed a Chapter 11 bankruptcy petition (Bankr. E.D. Pa. Case No. 14-19952) in Philadelphia on Dec. 19, 2014. The case is assigned to Judge Stephen Raslavich. The Debtor disclosed $93,352,652 in assets and $88,100,436 in liabilities. The Debtor has tapped Dilworth Paxson LLP as bankruptcy attorneys and Kaufman, Coren & Ress, P.C., as special counsel. CRYOPORT INC: Swaps or Amends Related Party Notes Payable --------------------------------------------------------- In March 2015, Cryoport, Inc. and its wholly owned subsidiary Cryoport Systems, Inc., entered into definitive agreements relating to the exchange or amendment of certain related party notes payable and accrued interest aggregating $1,298,004, which became due through March 1, 2015, and issued warrants to purchase a certain number of shares of the Company's Common Stock. On March 6, 2015, Cryoport entered into a material definitive agreement with one of the note holders, effective Feb. 20, 2015, pursuant to a Note Exchange Agreement and Letter of Investment Intent, for the exchange of all principal and accrued interest outstanding under a promissory note issued in 2005 for (i) a new convertible promissory note with an original principal amount equal to the Exchange Amount, and (ii) a warrant to purchase 17,880 shares of the Company's Common Stock at an exercise price of $0.50 per share, exercisable on Feb. 20, 2015, and expiring on Feb. 19, 2018. On March 6, 2015, the Cryoport and Cryoport Systems entered into material definitive agreements with three note holders, effective March 2, 2015, pursuant to Letters of Investment Intent for (i) the amendment and restatement of promissory notes issued in 2005 to these individuals, (ii) the issuance of warrants for the purchase 448,164,266,686, and 208,941 shares, respectively, of the Company's Common Stock at an exercise price of $0.50 per share, exercisable on March 2, 2015, and expiring on March 1, 2020, and (iii) warrants to purchase 10,000, 5,000, and 5,000 shares, respectively, of the Company's Common Stock, exercisable on March 2, 2015, and expiring on March 1, 2020, to reimburse the three note holders for any fees or other expenses incurred in connection with this transaction. On March 5, 2015, Cryoport Systems entered into an Amendment to Simple Interest Commercial Promissory Note with one note holder effective March 2, 2015, which amends a note issued in 2005. On March 6, 2015, Cryoport Systems entered into the Note Amendment effective as of March 2, 2015, acknowledging an outstanding aggregate balance of $338,452. The Original Note, as amended by the Note Amendment, accrues interest at a rate of 6% per annum commencing on March 13, 2015; however, no interest payments will be due if no event of default occurs and if Cryoport Systems (i) complies with its regular payment obligations, reimburses the payee for attorneys' fees in connection with the negotiation of the Note Amendment, up to a maximum amount of $1,000, on the later of (A) March 13, 2015, or (B) three days after receiving written notice from the payee of the amount of attorneys' fees incurred by payee, and (iii) Cryoport Systems immediately pays all unpaid amounts due and payable in full before May 1, 2016, if the payees of any other promissory notes with Cryoport Systems that were issued in 2005 are paid in full before May 1, 2016, other than (Y) notes that are satisfied upon conversion into common stock, warrants or any other equity of Cryoport Systems, or (Z) notes that have been paid in full before March 2, 2015. All principal and interest under the Original Note, as amended by the Note Amendment, will be due and will be paid on May 1, 2016. The Company did not pay any discounts or commissions with respect to the issuance of the Notes or the Warrants to the Investors. About Cryoport Lake Forest, Calif.-based CryoPort, Inc. (OTC BB: CYRX) provides comprehensive solutions for frozen cold chain logistics, primarily in the life science industries. Its solutions afford new and reliable alternatives to currently existing products and services utilized for bio-pharmaceuticals and biologics, including in-vitro fertilization, cell lines, vaccines, tissue and other commodities requiring a reliable frozen solution. Cryoport reported a net loss of $19.6 million on $2.65 million of revenues for the year ended March 31, 2014, as compared with a net loss of $6.38 million on $1.10 million of revenues for the year ended March 31, 2013. The Company's balance sheet at Dec. 31, 2014, showed $1.87 million in total assets, $2.98 million in total liabilities, and a stockholders' deficit of $1.12 million. KMJ Corbin & Company LLP, in Costa Mesa, California, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2014. The independent auditors noted that the Company has incurred recurring operating losses and has had negative cash flows from operations since inception. Although the Company has cash and cash equivalents of $369,581 at March 31, 2014, management has estimated that cash on hand, which include proceeds from convertible bridge notes received in the fourth quarter of fiscal 2014, will only be sufficient to allow the Company to continue its operations into the second quarter of fiscal 2015. These matters raise substantial doubt about the Company's ability to continue as a going concern, the auditors maintained. D & L ENERGY: US Trustee Wants Case Converted to Chapter 7 ---------------------------------------------------------- Daniel M. McDermott, United States Trustee for Region 9, asks the Hon. Kay Woods of the U.S. Bankruptcy Court for the Northern District of Ohio to convert the Chapter 11 cases of D & L Energy Inc. and its debtor-affiliates to a Chapter 7 proceedings. The Trustee says it has lost confidence in the Debtors' ability to liquidate their remaining assets and settle claims efficiently for the benefit of creditors. Creditors have likewise lost confidence in the Debtors. The Official Committee of Unsecured Creditors has filed a proposed plan and disclosure statement that would appoint a liquidation trustee designated by the Committee and subject to a "Liquidation Trust Advisory Board," who would be authorized to conduct the remaining tasks necessary to close the case, according to the Trustee. The Trustee added that, at a hearing on March 2, 2015, the Court remarked that the Debtors and their professionals appeared to the lack of capacity or else the interest in efficiently resolving the remaining issues affecting the administration of this case. While the Committee's proposed plan has merit insofar as it would place authority in the hands of a liquidating trustee, the Trustee believes that the better course of action is the immediate conversion of this case to Chapter 7. Besides being bonded, a Chapter 7 trustee has the necessary expertise to liquidate the Debtors' remaining assets, make distributions, and efficiently bring this case to closure. The appointment of such a fiduciary would be immediate upon entry of the order converting the case, the Trustee points out. A hearing is set for March 17, 2015, at 9:30 a.m., at Federal Building Youngstown, Courtroom, 3rd Floor, to consider the Trustee's request. Responses, if any, must be filed before March 16, 2015, at 12:00 p.m. About D & L Energy D & L Energy, Inc., based in Youngstown, Ohio, was formed by David DeChristofaro, Ben Lupo, and James Beshara in 1986 to be a conventional oil and gas well operator and producer, primarily targeting oil and gas reserves in the Clinton Sandstone formation throughout Northeast Ohio and Northwest Pennsylvania. D&L currently has three (3) shareholders, Ben Lupo (80.76% shareholder), Susan Faith (15% shareholder), and Holly Serensky Lupo (4.24% shareholder). Nicholas C. Paparodis is the acting CEO and President of D&L. Kathy Kaniclides is the acting Secretary and Treasurer of D&L. Currently, Serensky Lupo is the sole director of D&L. Petroflow, Inc. is an Ohio corporation which is a wholly owned subsidiary of D&L. Originally intended to operate as the "drilling arm" of D&L, Petroflow ceased all operations prior to the filing of these bankruptcy matters. Petroflow has no current income, no bank accounts, and no employees. Paparodis is the president, CEO and sole director of Petroflow. D&L and Petroflow filed for Chapter 11 bankruptcy (Bankr. N.D. Ohio Lead Case No. 13-40813) on April 16, 2013. Judge Kay Woods oversees the case. The Debtor disclosed in its amended schedules, $40,615,677 in assets and $6,187,217 in liabilities as of the Chapter 11 filing. Brian T. Angeloni, Esq., Kathryn A. Belfance, Esq., Steven Heimberger, Esq., and Todd A. Mazzola, Esq., at Roderick Linton Belfance, LLP, serve as the Debtors' counsel, and Walter Haverfield, LLP, is the environmental counsel. SS&G Parkland Consulting, LLC, serves as financial advisor and investment banker. Sherri Lynn Dahl, Esq., and Peter R. Morrison, Esq., at Squire Sanders (US) LLP, have been tapped as counsel to the official committee of unsecured creditors. BBP Partners LLC serves as the panel's financial advisors. Resource Land Holdings emerged as the winning bidder for the substantially all of the Debtor's assets. Resource Land offered to buy the assets for $20.4 million. DEERFIELD RANCH: Files Schedules of Assets and Liabilities ---------------------------------------------------------- Deerfield Ranch Winery, LLC, filed with the U.S. Bankruptcy Court for the Northern District of California its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $15,000,000 B. Personal Property $10,197,611 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $11,869,681 E. Creditors Holding Unsecured Priority Claims $41,269 F. Creditors Holding Unsecured Non-priority Claims $130,989 ----------- ----------- TOTAL $25,197,611 $12,041,939 A copy of the schedules is available for free at: http://bankrupt.com/misc/DEERFIELDRANCH_32_sal.pdf About Deerfield Ranch Winery Deerfield Ranch Winery, LLC, is an award-winning winery located in the heart of the Sonoma Valley, founded in 1982 by Robert and PJ Rex. The Deerfield estate is approximately 47 acres, located in Kenwood, California, and was acquired in 2000. Annual production totals approximately 30,000 cases annually, including both Deerfield brands and the winery's substantial custom-crush business, which includes 12 small family-owned wineries. The winery LLC is owned by 87 members, who have contributed more than $15 million to the business. Deerfield Ranch Winery filed a Chapter 11 bankruptcy petition (Bank. N.D. Cal. Case No. 15-10150) on Feb. 13, 2015. The Debtor estimated assets and liabilities of $10 million to $50 million. Scott H. McNutt, Esq., and Shane J. Moses, Esq., at McNutt Law Group LLP serve as the Debtor's counsel. Jigsaw Advisors LLC acts as the Debtor's restructuring financial advisor. Judge Alan Jaroslovsky is assigned to the case. DELIAS INC: Court Sets April 14 as Claims Bar Date -------------------------------------------------- The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York set April 14, 2015, at 5:00 p.m. (Prevailing Eastern Time) as deadline for creditors of dELiA*s Inc and its debtor-affiliates to file proofs of claim. Judge Drain set June 5, 2015, at 5:00 p.m. (Prevailing Eastern Time) as last day for all governmental units to file their claims against the Debtors. Each proof of claim must be completed, signed and filed either electronically using the interface available on Prime Clerk's website at https://cases.primeclerk.com/delias/EPOC-Index, or by submitting the original proof of claim form either in person, by first class mail, by courier service, or by hand delivery to: dELiA*s, Inc. Claims Processing Center c/o Prime Clerk LLC 830 3rd Avenue, 9th Floor New York, NY 10022 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 $47.0 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. The Official Committee of Unsecured Creditors tapped to retain Kelley Drye & Warren LLP as its counsel, and Capstone Advisory Group, LLC, and Capstone Valuation Services, LLC, as financial advisors. DELIAS INC: Seeks to Extend Lease-Decision Deadline to June 5 ------------------------------------------------------------- dELiA*s Inc and its debtor-affiliates ask the Hon. Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York to extend the Debtors' deadline to assume or reject unexpired leases of nonresidential real property from April 6, 2015 through and including June 5, 2015. The Debtors say the only remaining unexpired lease of nonresidential real property is the lease for their corporate headquarters located at 50 West 23rd Street in New York. The Debtors state they are currently working diligently with their real estate consultant, A&G Realty Partners, LLC, to market the office lease with a number of various potential interested parties. According to the Debtors, notwithstanding negotiations with respect to the office lease with the landlord and other interested parties, the landlord under the office lease filed on Feb. 13, 2015, a motion to compel payment for postpetition use and occupancy of premises, to compel assumption and rejection of a lease by a date certain, and for relief from the automatic stay to gain possession of the premises that is the subject of the office lease. 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 $47.0 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. The Official Committee of Unsecured Creditors tapped to retain Kelley Drye & Warren LLP as its counsel, and Capstone Advisory Group, LLC, and Capstone Valuation Services, LLC, as financial advisors. DELIAS INC: Wants Court to Extend Plan Filing Deadline to June 5 ---------------------------------------------------------------- dELiA*s Inc. and its debtor-affiliates ask the Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York to extend their exclusive periods to: a) file a Chapter 11 plan through and including June 5, 2015; and b) solicit acceptances of that plan until Aug. 4, 2015. The Debtors tell the Court that they are in the process of maximizing the value of their remaining assets, such as selling their intellectual property, their owned real estate and office lease, and recovering the funds that collateralize certain letters of credit. According to the Debtors, working in close collaboration with the Official Committee of Unsecured Creditors, they have made material progress in these Chapter 11 Cases and do not seek the extension of the exclusive periods as a means to exert pressure on the relevant parties in interest. To the contrary, they intend to file a disclosure statement and chapter 11 plan in the near term and the purpose of their present request for an extension of the exclusive periods is, among other things, to avoid the filing of competing plans and to ensure that they have an opportunity to seek and address the concerns of all stakeholders, the Debtors say. A hearing is set for March 20, 2015 at 10:00 a.m. (Eastern Time), at 300 Quarropas Street, Courtroom 118, White Plains in New York, to consider the Debtors' request for extension. Objections, if any, were due March 6. 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 $47.0 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. The Official Committee of Unsecured Creditors tapped to retain Kelley Drye & Warren LLP as its counsel, and Capstone Advisory Group, LLC, and Capstone Valuation Services, LLC, as financial advisors. DENDREON CORP: March 24 Hearing on Bid to Extend Plan Exclusivity ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware will hold a hearing on March 24, 2015, at 4:00 p.m. (Eastern) to consider the motion to extend the exclusive periods filed by Dendreon Corporation and its debtor-affiliates. As reported in the Troubled Company Reporter on March 11, 2015, the Debtors asked the Court to extend the period by which they have exclusive right to file a plan through and including June 29, 2015, and the period by which they have exclusive right to solicit acceptances of the plan through and including Aug. 27, 2015. The Debtors' Plan Period was slated to expire on March 10. The Debtors' counsel, Sarah E. Pierce, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Wilmington, Delaware, told the Court that the Debtors have already begun the process of preparing a plan of liquidation and negotiating with their creditors regarding the provisions of the plan. Ms. Pierce said the Debtors believe that it is reasonable to request additional time to prepare, file, and confirm a chapter 11 plan based on the Sale. Granting the requested extensions will facilitate the Debtors' efforts by providing the Debtors with a full and fair opportunity to propose and solicit a plan without the distraction of ill-formed competing plans, Ms. Pierce asserted. About Dendreon Corp With corporate headquarters in Seattle, Washington, Dendreon Corporation -- http://www.dendreon.com/-- a biotechnology company focused on the development of novel cellular immunotherapies to significantly improve treatment options for cancer patients. Dendreon's first product, PROVENGE (sipuleucel-T), was approved by the U.S. Food and Drug Administration (FDA) and became commercially available for the treatment of men with asymptomatic or minimally symptomatic castrate-resistant (hormone-refractory) prostate cancer in April 2010. Dendreon is traded on the NASDAQ Global Market under the symbol DNDN. Dendreon and its U.S. subsidiaries filed for Chapter 11 bankruptcy protection (Bankr. D. Del.) on Nov. 10, 2014. The Debtors requested that their cases be jointly administered under Case No. 14-12515. The petitions were signed by Gregory R. Cox, interim chief financial officer and treasurer. Dendreon sought bankruptcy protection after it reached agreements on the terms of a financial restructuring with certain holders of the Company's 2.875% Convertible Senior Notes due 2016 representing 84% of the $620 million aggregate principal amount of the 2016 Notes. The financial restructuring may take the form of a stand-alone recapitalization or a sale of the Company or its assets. The Debtors have engaged Skadden, Arps, Slate, Meagher & Flom LLP, as counsel; Lazard Freres & Co. LLC, as investment banker; AlixPartners, as restructuring advisors; and Prime Clerk LLC as claims and noticing agent. The Debtors disclosed $365 million in total assets and $664 million in total liabilities as of June 30, 2014. The U.S. Trustee for Region 3 appointed five members to the Official Committee of Unsecured Creditors. DIGERATI TECHNOLOGIES: Posts $3.64M Income in April 30 Quarter -------------------------------------------------------------- Digerati Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing net income of $3.64 million on $16.6 million of total operating revenues for the three months ended April 30, 2013, compared with a net loss of $478,000 on $705,000 of total operating revenues for the same period in 2012. The Company's balance sheet at April 30, 2013, showed $80.83 million in total assets, $76.7 million in total liabilities, and total stockholders' equity of $4.09 million. Digerati has incurred net losses and has accumulated a deficit of approximately $71.05 million and a working capital deficit of approximately $50.71 million, which raises substantial doubt about Digerati's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/J7mTMq About Digerati Technologies Digerati Technologies, Inc., filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 13-33264) in Houston, on May 30, 2013. At the time of its Chapter 11 filing, Digerati – http://www.digerati-inc.com/-- was a publicly held company whose primary assets were 100% stock ownership of two oilfield services companies that the Debtor valued at $30 million each: Hurley Enterprises, Inc.; and Dishon Disposal, Inc. The Debtor also owned Shift 8 Networks, a cloud communication service. The Debtor has no independent operations apart from its subsidiaries. Digerati disclosed $60 million in assets and $62.5 million in liabilities as of May 29, 2013. Bankruptcy Judge Jeff Bohm oversees the Chapter 11 case. Deirdre Carey Brown, Esq., Annie E. Catmull, Esq., Melissa Anne Haselden, Esq., Mazelle Sara Krasoff, Esq., and Edward L Rothberg, at Hoover Slovacek, LLP, in Houston, represent the Debtor as counsel. The Debtor tapped Gilbert A. Herrera and Herrera Partners as the investment banker. Earlier in the case, Rhode Holdings, LLC, sought the transfer of venue of Digerati's Chapter 11 case to the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division. The case, however, remained in the Houston Bankruptcy Court. * * * Hurley Enterprises and Dishon Disposal sold for approximately $41 million. Dishon was sold to Buckhorn Disposal, LLC at auction on June 19, 2014 for $27 million. The only other bidder was Terry Dishon with a credit bid of $12.3 million. The Hurleys submitted the winning bid for Hurley at auction, with a credit bid of $14 million. DORAL FINANCIAL: Liquidating Under Ch. 11 After Bank Unit Seized ---------------------------------------------------------------- Puerto Rican company Doral Financial Corporation sought bankruptcy protection less than two weeks after its 26-branch banking unit Doral Bank was seized by regulators. Carol Flaton, the CRO, explains that DFC initiated the Chapter 11 case in response to Doral Bank being placed into receivership. DFC is already in the process of liquidating certain of its assets, which DFC expects to convert to cash through sales and other transactions under the jurisdiction of this Court. In light of the Supreme Court of Puerto Rico's denial of DFC's petition for Certiorari regarding the 2012 Closing Agreement, DFC also intends to pursue litigation or transactions to realize value on its tax rights with the Hacienda, including DFC's rights under the 2006 Closing Agreement and the 2013 Closing Agreement. The Debtor expects to distribute the proceeds to creditors through a chapter 11 plan of liquidation negotiated with the major creditor constituencies. Prepetition, DFC engaged in several transactions to resolve nonperforming assets and increase capital at Doral Bank. In 2014, DFC retained Houlihan Lokey to help DFC and Doral Bank restructure their operations and raise capital through asset sales. This resulted in several asset sales by DFC and Doral Bank in 2014, which raised needed capital. DFC also intended to initiate an exchange offer to recapitalize DFC around a smaller, but profitable and regulatory-compliant, banking operation. However, the exchange never came to fruition. DFC blamed its woes on the ongoing recession in Puerto Rico, tax disputes with the Commonwealth of Puerto Rico, disputes with the Federal Deposit Insurance Corporation and the Puerto Rico Office of the Commissioner of Financial Institutions. Due to the continued recession in Puerto Rico, Doral Bank experienced difficulty in maintaining sufficient capital to satisfy the FDIC's requirements. The FDIC, appointed the Bank's receiver on Feb. 27, entered into a purchase and assumption agreement with Banco Popular de Puerto Rico, Hato Rey, Puerto Rico, to acquire the banking operations, including all the deposits, of Doral Bank. As of Dec. 31, 2014, Doral Bank had approximately $5.9 billion in total assets and $4.1 billion in total deposits. Tax Disputes with the Commonwealth The Doral Group reported large, but illusory, gains in the early to mid-2000s. Largely as a result of apparent gains in these transactions, the Doral Group reported large profits in the early to mid 2000s, on which it paid substantial amounts in taxes to the Commonwealth's taxing authority (the "Hacienda"). To address the tax overpayments, DFC and the Hacienda engaged in lengthy negotiations, which eventually resulted in several closing agreements with the Hacienda settling these disputes over time. However, after a change in the government of Puerto Rico, the Hacienda refused to abide by the terms of the 2012 Closing Agreement and did not issue refunds for the prepaid taxes. On May 14, 2014, the Hacienda issued a decision finding that Doral Bank was not entitled to the refunds. Subsequently, DFC sought to judicially enforce the 2012 Closing Agreement and filed a complaint for declaratory judgment in the Court of First Instance of Puerto Rico. On Oct. 10, 2014, the Court of First Instance ruled in DFC's favor, finding the 2012 Closing Agreement to be a valid and binding obligation enforceable against the Commonwealth. On Dec. 31, 2014, the Commonwealth appealed the ruling to the Court of Appeals of Puerto Rico, and on February 25, 2015, the Court of Appeals overturned the ruling of the Court of First Instance. DFC filed an appeal to the Supreme Court of Puerto Rico early in the morning on Friday, Feb. 27, 2015. Later that day -- the same day Doral Bank was placed into receivership -- the Supreme Court of Puerto Rico denied DFC's petition for Certiorari. As a result, the Court of Appeals decision is final and the 2012 Closing Agreement is now void. DFC is exploring its rights in the aftermath of the judicial disallowance of the 2012 Closing Agreement. First Day Motions The Debtor on the Petition Date filed with the U.S. Bankruptcy Court motions to: -- extend deadline to file its schedules; -- reject certain unexpired leases of nonresidential real property; -- reject certain executory contracts; -- pay prepetition wages and obligations to employees; and -- obtain a waiver under Section 345(B) regarding the Debtor's bank accounts. A copy of the CRO's declaration in support of the first day motions is available for free at: http://bankrupt.com/misc/Doral_1st_Day_Affidavit.pdf About Doral Financial Doral Financial Corporation is a holding company whose primary operating asset was equity in Doral Bank. DFC maintains offices in New York City, Coral Gables, Florida and San Juan, Puerto Rico. DFC has three wholly-owned subsidiaries: (i) Doral Properties, Inc., (ii) Doral Insurance Agency, LLC ("Doral Insurance"), and (iii) Doral Recovery, Inc. On Feb. 27, 2015, regulators placed Doral Bank into receivership and named the Federal Deposit Insurance Corp. as receiver. Doral Bank served customers through 26 branches located in New York, Florida, and Puerto Rico. DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10573) in Manhattan on March 11, 2015. The case is assigned to Judge Shelley C. Chapman. DFC estimated $50 million to $100 million in assets and $100 million to $500 million in debt as of the bankruptcy filing. The Debtor tapped Ropes & Gray LLP as counsel. The Debtor's Chapter 11 plan and Disclosure Statement are due July 9, 2015. The initial case conference is set for April 10, 2015. DORAL FINANCIAL: Rejecting Doral Bank-Related Contracts ------------------------------------------------------- Doral Financial Corporation is asking the U.S. Bankruptcy Court for the Southern District of New York to reject certain executory contracts. Doral Bank, the Debtor's former subsidiary, was placed into receivership on Feb. 27, 2015. Many of the executory contracts that the Debtor seeks to reject are either (a) for services previously used by Doral Bank or its employees, or (b) related to certain of the Debtor's operations that have been rendered moot by Doral Bank being placed into receivership. Counterparties to these rejected contracts are: 1. AT&T Mobility National Accounts LLC 2. Qwest Communications Company, 3. Cohen Brothers Realty Corporation 4. Communicar, Inc. 5. Harland Financial Solutions, Inc. 6. IBM Corporation 7. International Business Machines 8. Kaback Enterprises, Inc. 9. Navex Global, Inc. 10. NCP Solutions, LLC 11. TPG Software, Inc. 12. Oracle Caribbean, Inc. 13. SAS Institute Inc. 14. Christopher Poulton About Doral Financial Doral Financial Corporation is a holding company whose primary operating asset was equity in Doral Bank. DFC maintains offices in New York City, Coral Gables, Florida and San Juan, Puerto Rico. DFC has three wholly-owned subsidiaries: (i) Doral Properties, Inc., (ii) Doral Insurance Agency, LLC ("Doral Insurance"), and (iii) Doral Recovery, Inc. On Feb. 27, 2015, regulators placed Doral Bank into receivership and named the Federal Deposit Insurance Corp. as receiver. Doral Bank served customers through 26 branches located in New York, Florida, and Puerto Rico. DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10573) in Manhattan on March 11, 2015. The case is assigned to Judge Shelley C. Chapman. DFC estimated $50 million to $100 million in assets and $100 million to $500 million in debt as of the bankruptcy filing. The Debtor tapped Ropes & Gray LLP as counsel. The Debtor's Chapter 11 plan and Disclosure Statement are due July 9, 2015. The initial case conference is set for April 10, 2015. DORAL FINANCIAL: Seeks Approval to Reject Leases ------------------------------------------------ Doral Financial Corporation is asking the U.S. Bankruptcy Court for the Southern District of New York for approval to reject certain unexpired leases of nonresidential real property. The Debtor serves as tenant or sub lessor to a number of leases of non-residential real property. The Debtor no longer requires the premises that it leases as tenant pursuant to the leases, and the leases pursuant to which the Debtor is a sub-lessor are unprofitable. The Debtor intends to reject: -- a lease agreement with Doral Properties pertaining to the location at 1451 Roosevelt Ave., in San Juan, PR (Monthly rent: $21,302); -- a lease agreement with Fifth Avenue Building Company LLC relating to the location at 623 Fifth Avenue, New York, NY, 13th Floor (Monthly Rent: $92,154); -- a sublease agreement with Union Bancaire Privee Asset Management, LLC, relating to the location at 623 Fifth Avenue, New York, NY, 17th Floor (Monthly Rent: $72,430); -- a sublease agreement with Bankunited N.A. (as subtenant), pertaining to location at 623 Fifth Avenue, New York, NY, 13th Floor (Monthly Rent: $71,817); and -- a sublease agreement with HCL America Inc. (as subtenant), pertaining to the location at 623 Fifth Avenue, New York, NY, 19th Floor (Monthly Rent: $94,159). About Doral Financial Doral Financial Corporation is a holding company whose primary operating asset was equity in Doral Bank. DFC maintains offices in New York City, Coral Gables, Florida and San Juan, Puerto Rico. DFC has three wholly-owned subsidiaries: (i) Doral Properties, Inc., (ii) Doral Insurance Agency, LLC ("Doral Insurance"), and (iii) Doral Recovery, Inc. On Feb. 27, 2015, regulators placed Doral Bank into receivership and named the Federal Deposit Insurance Corp. as receiver. Doral Bank served customers through 26 branches located in New York, Florida, and Puerto Rico. DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10573) in Manhattan on March 11, 2015. The case is assigned to Judge Shelley C. Chapman. DFC estimated $50 million to $100 million in assets and $100 million to $500 million in debt as of the bankruptcy filing. The Debtor tapped Ropes & Gray LLP as counsel. The Debtor's Chapter 11 plan and Disclosure Statement are due July 9, 2015. The initial case conference is set for April 10, 2015. DORAL FINANCIAL: Wants Until April 24 to File Schedules ------------------------------------------------------- Doral Financial Corporation is asking the U.S. Bankruptcy Court for the Southern District of New York to enter an order extending the deadline by which it must file schedules of assets and liabilities, and statement of financial affairs by 30 days, through and including April 24, 2015, without prejudice to its right to seek additional extensions. Mark I. Bane, Esq., at Ropes & Gray LLP, explains that although the Debtor has commenced the process of gathering the necessary information to prepare and finalize the Schedules and Statements, the 14-day time period provided by Bankruptcy Rule 1007 will be insufficient to complete those tasks. The nature and scope of the Debtor's operations require the maintenance of voluminous records and intricate accounting systems, some of which may now be under the control of the FDIC. The complexity of the Debtor's business and the limited staff available to perform the required internal review of its financial records and affairs and the pressure incident to the commencement of the Chapter 11 case, provides ample cause justifying, if not necessitating, a 30-day extension of the deadline to file the Schedules and Statements. About Doral Financial Doral Financial Corporation is a holding company whose primary operating asset was equity in Doral Bank. DFC maintains offices in New York City, Coral Gables, Florida and San Juan, Puerto Rico. DFC has three wholly-owned subsidiaries: (i) Doral Properties, Inc., (ii) Doral Insurance Agency, LLC ("Doral Insurance"), and (iii) Doral Recovery, Inc. On Feb. 27, 2015, regulators placed Doral Bank into receivership and named the Federal Deposit Insurance Corp. as receiver. Doral Bank served customers through 26 branches located in New York, Florida, and Puerto Rico. DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10573) in Manhattan on March 11, 2015. The case is assigned to Judge Shelley C. Chapman. DFC estimated $50 million to $100 million in assets and $100 million to $500 million in debt as of the bankruptcy filing. The Debtor tapped Ropes & Gray LLP as counsel. The Debtor's Chapter 11 plan and Disclosure Statement are due July 9, 2015. The initial case conference is set for April 10, 2015. DUNE ENERGY: Eos Advises Exchange Agent to Return Tendered Shares ----------------------------------------------------------------- Eos Petro, Inc., and Eos Merger Sub, Inc., a directly wholly owned subsidiary of Eos, filed an amendment No. 14 to the Schedule TO which amends and supplements the tender offer statement originally filed with the Securities and Exchange Commission on Oct. 9, 2014, relating to the offer by Eos to purchase each of the outstanding shares of common stock, par value $0.001 per share, of Dune Energy, Inc., for $0.30 in cash, without interest and less any required withholding taxes. Dune Energy had terminated the agreement and plan of merger due to a breach Eos under the Agreement. The Offer expired on Feb. 27, 2015. No Shares were purchased by Eos pursuant to the Offer. Eos has instructed the exchange agent for the Offer to promptly return all shares of Dune common stock to the tendering stockholders. About Dune Energy Dune Energy, Inc., Dune Operating Company and Dune Properties, Inc. filed Chapter 11 bankruptcy petitions (Bankr. W.D. Tex. Lead Case No. 15-10336) on March 8, 2015. James A. Watt signed the petition as president and chief executive officer. The Debtors disclosed total assets of $229.4 million and total debts of $144.2 million as of Sept. 30, 2014. Judge Christopher H. Mott presides over the cases. Charles A. Beckham, Jr., Esq., Kenric D. Kattner, Esq., Kourtney P. Lyda, Esq., Kelli M. Stephenson, Esq., at Haynes and Boone, LLP represent the Debtors as counsel. Deloitte Transactions and Business acts as the Debtors' restructuring advisor. Parkman Whaling LLC assists the Debtors with regards to the sales process. Dune Energy is an independent energy company that was formed in 1998 and operates through two wholly owned subsidiaries, Dune Operating and Dune Properties. Since May 2004, the Debtors have been engaged in the exploration, development, acquisition and exploitation of crude oil and natural gas properties in Texas and Louisiana. DUNE ENERGY: Proposes June 9 Auction for Assets ----------------------------------------------- Dune Energy, Inc., is asking the U.S. Bankruptcy Court for the Western District of Texas to approve bid procedures that contemplate a June 9 auction for the assets. No buyer yet is under contract although the company may select a stalking horse bidder from the bidders who submit an offer by the June 5 deadline. Over the past year, Dune Energy conducted a sale process and contacted more than 45 potential buyers. Eos Petro, Inc., submitted the superior offer. However, the merger agreement with EOS was terminated after Eos was unable to complete the financing and consummate the proposed transaction. Dune says Eos owes a $5.5 million merger termination fee. The salient terms of the proposed bidding procedures are: -- Parties who may be interested in purchasing the assets should contact the Debtors' investment banker: Parkman Whaling LLC Attn: Michael Hanson 600 Travis Street, Suite 600 Houston, TX 77002 Tel: 713-333-8400 E-mail: mhanson@parkmanwhaling.com Upon execution of a confidentiality agreement, parties will be given access to the Debtors' on-line data room and may begin conducting due diligence. -- The Debtors, with the consent of the lenders, may identify a stalking horse bidder. The stalking horse bid will be subject to higher and better offers to acquire the assets. -- In order to constitute a qualified bid, any proposal, solicitation or offer for the assets must be submitted in writing prior to June 5 2015 at12:00 p.m. (Central Time). -- The Debtors will identify qualified bidder within two days after the bid deadline. -- If the Debtors do not receive any qualified bids, other than a stalking horse bid, the Debtors will promptly proceed to seek entry of the appropriate orders approving the Stalking Horse PSA. If the Debtors do not receive any qualified bids other than a credit bid by the Agent or its designee, the Debtors will promptly proceed to seek entry of the appropriate orders approving such credit bid by the Agent or its designee. -- In the event the Debtors receive more than one qualified bid, the Debtors may determine to schedule an auction to request additional competitive bids from qualified bidders. In the event that the Debtors determine to conduct an auction, the auction will start on Tuesday, June 9, 2015 at 10:00 a.m. (Central Time) at the offices of Haynes and Boone LLP, 1221 McKinney, Suite 2100, Houston, TX 77025. -- In the event the Debtors receive more than one qualified bid and determine to schedule an auction, the agent for the first lien lenders or its designee will be entitled to credit bid all or a portion of the outstanding obligations under the DIP Facility and the First Lien Credit Agreement in accordance with Section 363(k) of the Bankruptcy Code. -- Following the conclusion of the auction, the Debtors will file the definitive purchase and sale agreement for the successful bid. The Debtors intend to present the successful bid(s) for approval by the Court at a sale hearing to be held on or before Friday, June 12, 2015. Other First Day Motions The Debtors on the Petition Date also filed motions to jointly administer their Chapter 11 cases, extend time to file their schedules and statements, continue their cash management system, pay prepetition wages and benefits of employees, prohibit utilities from discontinuing service, and continue their insurance policies. About Dune Energy Dune Energy, Inc., is an independent energy company that was formed in 1998 and operates through two wholly owned subsidiaries, Dune Operating Company and Dune Properties, Inc. Since May 2004, Dune has been engaged in the exploration, development, acquisition and exploitation of crude oil and natural gas properties in Texas and Louisiana. Dune Energy and its two subsidiaries sought bankruptcy protection (Bankr. W.D. Tex. Lead Case No. 15-10336) in Austin, Texas, on March 8, 2015. The case is assigned to Judge Christopher H. Mott. The Debtors tapped Haynes and Boone, LLP, as counsel; Deloitte Transactions and Business Analytics LLP, as restructuring advisors; and Parkman Whaling LLC, as sale professionals. Dune Energy disclosed $229.4 million in assets and $144.2 million in liabilities as of Sept. 30, 2014. DUNE ENERGY: Seeks Joint Administration of Ch. 11 Cases ------------------------------------------------------- Dune Energy, Inc., and its debtor subsidiaries ask the U.S. Bankruptcy Court, Western District of Texas to enter an order directing the joint administration of the Debtors' Chapter 11 cases for procedural purposes only, including the joint filing of any disclosure statements and plans of reorganization and other contested matters, pursuant to Rule 1015(b) of the Federal Rule of Bankruptcy Procedure. Dune Energy requests that the cases be jointly administered under the case number of Dune Energy (Case No. 15- 10336) in accordance with Local Bankruptcy Rule 1015(2). Dune Energy submits that joint administration of the Debtors' cases will obviate the need for duplicative notices, motions, applications, hearings and orders, and will therefore save considerable time and expense for the Debtors and their estates. About Dune Energy Dune Energy, Inc., is an independent energy company that was formed in 1998 and operates through two wholly owned subsidiaries, Dune Operating Company and Dune Properties, Inc. Since May 2004, Dune has been engaged in the exploration, development, acquisition and exploitation of crude oil and natural gas properties in Texas and Louisiana. Dune Energy and its two subsidiaries sought bankruptcy protection (Bankr. W.D. Tex. Lead Case No. 15-10336) in Austin, Texas, on March 8, 2015. The case is assigned to Judge Christopher H. Mott. The Debtors tapped Haynes and Boone, LLP, as counsel; Deloitte Transactions and Business Analytics LLP, as restructuring advisors; and Parkman Whaling LLC, as sale professionals. Dune Energy disclosed $229.4 million in assets and $144.2 million in liabilities as of Sept. 30, 2014. DUNE ENERGY: Wants Schedules Deadline Moved to April ---------------------------------------------------- Dune Energy, Inc., et al., ask the U.S. Bankruptcy Court for the Western District of Texas to extend by 16 days the deadline to file their respective schedules of assets and liabilities and statements of financial affairs so that those documents are due 30 days after the Petition Date. Prior to the Petition Date, the Debtors were unable to assemble all of the information necessary to complete and file their Schedules and Statements required by Bankruptcy Rule 1007(b) because of (a) the exigent nature of the Debtors' bankruptcy filing as well as the size of the Chapter 11 cases, (b) the Debtors' lack of liquidity, (c) the Debtors' employees have been devoted to trying to negotiate, finalize and close the Merger Agreement with EOS and have also been in negotiations with various creditor constituencies, and (d) business exigencies incident to the commencement of these Chapter 11 cases. On Feb. 5, 2015, the Debtors hired Deloitte Transactions and Business Analytics LLP to assist them with the preparation of their Statements and Schedules, and are working diligently and expeditiously to prepare the Schedules and Statements. About Dune Energy Dune Energy, Inc., is an independent energy company that was formed in 1998 and operates through two wholly owned subsidiaries, Dune Operating Company and Dune Properties, Inc. Since May 2004, Dune has been engaged in the exploration, development, acquisition and exploitation of crude oil and natural gas properties in Texas and Louisiana. Dune Energy and its two subsidiaries sought bankruptcy protection (Bankr. W.D. Tex. Lead Case No. 15-10336) in Austin, Texas, on March 8, 2015. The case is assigned to Judge Christopher H. Mott. The Debtors tapped Haynes and Boone, LLP, as counsel; Deloitte Transactions and Business Analytics LLP, as restructuring advisors; and Parkman Whaling LLC, as sale professionals. Dune Energy disclosed $229.4 million in assets and $144.2 million in liabilities as of Sept. 30, 2014. E&S CONTRACTING: Case Summary & 11 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: E&S Contracting Services of WNY, Inc. aka MCD Plumbing, Inc. P.O. Box 1383 Orchard Park, NY 14127 Case No.: 15-10412 Chapter 11 Petition Date: March 11, 2015 Court: United States Bankruptcy Court Western District of New York (Buffalo) Debtor's Counsel: Arthur G. Baumeister, Jr., Esq. AMIGONE, SANCHEZ & MATTREY LLP 1300 Main Place Tower 350 Main Street Buffalo, NY 14202 Tel: (716) 852-1300 Email: abaumeister@amigonesanchez.com Total Assets: $229,500 Total Liabilities: $1.27 million The petition was signed by Michael C. Diebold, president. A list of the Debtor's 11 largest unsecured creditors is available for free at http://bankrupt.com/misc/nywb15-10412.pdf EDWARD MANDEL: Dist. Ct. Upholds Approval of Thrasher/Coleman Deal ------------------------------------------------------------------ NeXplore Corporation took an appeal from a November 2013 order approving Trustee Milo H. Segner, Jr.'s proposed settlement agreement with Steven Thrasher, MadenSewell, LLP and the Law offices of Mitchell Madden -- partial assignee of Steven Thrasher, "Madden" -- and Jason Coleman. Mr. Segner serves as Chapter 11 trustee in the bankruptcy case filed by Edward Mandel on January 25, 2010. Mr. Thrasher, individually and on behalf of White Nile Software, Inc., and Mr. Coleman, individually, filed large, unliquidated, contingent, and disputed claims in the Mandel bankruptcy case. Thrasher asserted a claim for $56 million, while Coleman asserted a claim for $25 million. Both claims were based on various breach of contract, breach of fiduciary duty, and multiple tort claims stemming from unresolved state court litigation. In that litigation, Messrs. Thrasher and Coleman alleged that the Debtor took intellectual property of Thrasher, Coleman, and White Nile and gave that property to NeXplore. NeXplore also filed a $270,000 claim in the bankruptcy case. After a lengthy trial, the Bankruptcy Court entered its order, allowing all claims in substantial amounts, but far less than the amounts asserted. In May 2013, the Trustee sought approval of a proposed settlement agreement, on behalf of the Estate, with Thrasher and Coleman, whereby their claims would be allowed (as against the Estate, but not as against the Debtor), in the exact amounts previously ordered by the Bankruptcy Court. The Bankruptcy Court entered an order approving the settlement. NeXplore timely appealed the settlement order, raising two issues on appeal: (1) whether the Bankruptcy Court erred in approving the Trustee's proposed settlement when the Trustee offered no evidence in support of said settlement; and (2) whether the Bankruptcy Court erred in approving the Trustee's proposed settlement under the applicable factors governing such approval, in light of the lack of consideration to the bankruptcy estate under said settlement and in light of all other governing factors. On review, District Judge Ron Clark finds no abuse of discretion in the Bankruptcy Court's ruling. Thus, Judge Clark affirmed the judgment of the Bankruptcy Court. The case is IN RE: EDWARD MANDEL Debtor. NEXPLORE CORPORATION Appellant, v. STEVEN THRASHER, et al., Appellees, CIVIL ACTION NO. 4:14-CV-6, BANKRUPTCY NO. 10-40219, (E.D. Tex.). A copy of Judge Clark's March 6, 2015 Memorandum Opinion is available at http://is.gd/s0tN0ufrom Leagle.com. NeXplore Corporation, Appellant, represented by Martin K Thomas, Martin & Sobol. Steven Thrasher, Appellee, represented by Steven Thomas Ramos, Ackerman & Savage. MaddenSewell, LLP, Appellee, represented by Mitchell Madden, The Law Offices of Mitchell Madden. Jason Coleman, Appellee, represented by Elvin E Smith, III, Law Offices of Elvin E. Smith III PLLC. Edward Mandel, Debtor-in-Possession, represented by Davor Rukavina -- drukavina@munsch.com -- Munsch Hardt Kopf & Harr, PC. EMPIRE RESORTS: Reports $24 Million Net Loss for 2014 ----------------------------------------------------- Empire Resorts, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss applicable to common shares of $24.1 million on $65.2 million of net revenues for the year ended Dec. 31, 2014, compared to a net loss applicable to common shares of $27.05 million on $70.96 million of net revenues in 2013. As of Dec. 31, 2014, the Company had $39.9 million in total assets, $57.0 million in total liabilities and a $17.1 million total stockholders' deficit. A full-text copy of the Form 10-K is available at: http://is.gd/9n9YuV About Empire Resorts Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY) -- http://www.empireresorts.com/-- owns and operates Monticello Casino & Raceway, a video gaming machine and harness racing track and casino located in Monticello, New York, 90 miles northwest of New York City. ESTATE FINANCIAL: Trustee OK'd to Sell Calif. Property Interests ---------------------------------------------------------------- The Bankruptcy Court authorized Thomas P. Jeremiassen, the Chapter 11 trustee for Estate Financial, Inc., to sell interests in the real property located at 150 Hinds Avenue, Pismo Beach, California. The EFI Trustee is authorized to fully assume, perform under, consummate and implement the sale agreement. Additionally, the employment of the subject broker(s) is approved and the EFI Trustee is authorized to cause payment of the real estate brokers' commissions in accordance with the sale agreement. The EFI Trustee is represented by: Robert B. Orgel, Esq. Samuel R. Maizel, Esq. Jeffrey L. Kandel, Esq. PACHULSKI STANG ZIEHL & JONES LLP 10100 Santa Monica Blvd., 13th Floor Los Angeles, CA 90067-4003 Tel: (310) 277-6910 Fax: (310) 201-0760 E-mail: jkandel@pszjlaw.com About Estate Financial Estate Financial, Inc. -- http://www.estatefinancial.com/-- was a license real estate brokerage firm since the later 1980's. EFI solicited funding for, and arranged and made, loans secured by various real property. EFI also was the sole manager of Estate Financial Mortgage Fund LLC, which was organized for the purpose of investing in and funding loans originated by EFI which were secured by first deeds of trust encumbering commercial and real estate located primarily in California and has been funding such mortgage loans since 2002. Five creditors of EFI filed an involuntary Chapter 11 petition against the real estate broker (Bankr. C.D. Cal. Case No. 08-11457) on June 25, 2008. EFI consented to the bankruptcy petition on July 16, 2008. Robert B. Orgel, Esq., at Pachulski Stang Ziehl & Jones LLP, and William C. Beall, Esq., at Beall and Burkhardt, represented the Debtor as counsel. A Chapter 11 trustee, Thomas P. Jeremiassen, was appointed by the Court on July 23, 2008. Robyn B. Sokol, Esq., and Steven T. Gubner, Esq., at Ezra Brutzkus & Gubner, represent the official committee of unsecured creditors as counsel. In its schedules, Estate Financial disclosed total assets of $27.4 million, and total debt of $7.32 million. FCC HOLDINGS: Former Workers, Michigan Object to Plan Confirmation ------------------------------------------------------------------ Several former employees and the State of Michigan objected to the confirmation of FCC Holdings, Inc., et al.'s First Amended Joint Plan of Orderly Liquidation. The Former Employees, whose claims arise from debtor Education Training Corporation's deferred compensation plan, complain that the Debtors should not release the Purchaser from fraudulent-transfer-liability because the Purchase Price was "less than a reasonably equivalent value in exchange for [the transfer of the FCC Acquired Assets,]" and ETC was either insolvent at the time of the transfer or rendered insolvent as a result. The State of Michigan, Department of Treasury, which timely filed priority ($4,276) and general unsecured ($1,033) proofs of claims, objects to the proposed plan as it fails to provide for interest on the priority claims to be paid over time, which is warranted under Section 1123(a)(5(G) of the Bankruptcy Code. Wells Fargo Equipment Finance, Inc., a perfected secured creditor, filed a reservation of rights with respect to the Plan because the Debtors' intentions with respect to WFEFI's distribution is unknown and WFEFI may not have been provided with all of its equipment upon which it had a lien. In response to the objections, the Debtors filed a memorandum of law maintaining that their plan satisfies the requirements for confirmation under Section 1129 of the Bankruptcy Code and should be confirmed. The Debtors also filed a proposed form of the Liquidating Trust Agreement, which is Exhibit "A" to the Plan, a full-text copy of which is available at http://bankrupt.com/misc/FCCplanex0302.pdf As previously reported by The Troubled Company Reporter, Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware on Jan. 29, 2015, approved the disclosure statement explaining the Debtors' plan and scheduled a confirmation hearing to be held on March 18, 2015, at 10:00 a.m. (prevailing Eastern Time). The Plan embodies a settlement agreement by and between the Debtors, Bank of Montreal, as agent on behalf of the Lenders, IEC Corporoation, which purchased some of the Debtors' assets, and the Official Committee of Unsecured Creditors over the resolution of the cases. In particular, the Debtors, the Agent on behalf of the Lenders, IEC and the Committee have agreed to the releases of claims and other liabilities set forth in the Plan and in the Final Cash Collateral Order. Further, the Debtors, the Agent on behalf of the Lenders, IEC and the Committee have agreed that (i) IEC will fund $100,000 to a liquidating trust, and (ii) IEC will acquire any and all potential preference actions against non-insiders under Section 544 and 547 of the Bankruptcy Code, and will covenant not to pursue those actions. The Debtors, on Jan. 28, filed an amended liquidation plan to, among other things, incorporate the plan confirmation schedule. In the First Amended Plan, the Debtors maintain that substantive consolidation is warranted because prior to the Petition Date, they operated under consolidated books and records, so that their crediors regarded them as one legal entity. Furthermore, the Debtors state that BMO holds a lien on all of the assets of each of the Debtors, and the combined remaining assets of all of the Debtors is substantially less than the amount owed to BMO, substantive consolidation is warranted in that attempting to separate the Debtors would be an unnecessary cost to the Debtors' estates with no corresponding benefit. A blacklined version of the First Amended Disclosure Statement dated Jan. 28, 2015, is available at http://is.gd/OSqMXj The Former Employees -- Aaron Anderson, Erik Brodie, Deborah Calamaro, David Knobel, Michael Knowles, Martin Najarro, Sandra May, Jeffrey Pierne, Joseph Sous and Michael Schwam -- are represented by: Thomas G. Macauley, Esq. MACAULEY LLC 300 Delaware Avenue, Suite 760 Wilmington, DE 19801 Tel: (302) 656-0100 Fax: (302) 654-4362 Michigan Treasury is represented by: Heather Donald, Esq. Assistant Attorney General Revenue and Collections Division 3030 W. Grand Blvd., Suite 10-200 Detroit, MI 48202 Tel: (313) 456-0140 WFEFI is represented by: Deirdre M. Richards, Esq. THE LAMM GROUP 1608 Walnut Street, Suite 703 Philadelphia, PA 19103 Tel: (215) 399-0913 About FCC Holdings FCC Holdings, Inc., and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-11987) on Aug. 25, 2014. Headquartered in Ft. Lauderdale, Florida, FCC and its affiliates provide quality postsecondary education in fourteen states. The FCC schools were started by David Knobel in 1994 in Fort Lauderdale, Florida, and, as of the bankruptcy filing, are owned by Greenhill Capital Partners. Prior to the Petition Date, the Company, which currently operates under the name "Anthem Education," had three sets of schools -- the 14 Florida Career College schools; the 22 Anthem Education schools; and the 5 US Colleges schools. The Debtors' outstanding secured obligations are $49 million, plus interest and fees, comprised of: Tranche A Loans of $18.6 million, Tranche B Loans of $29.1 million, and existing letters of credit of $1.39 million. The Debtors also have unsecured debt of $15 million. Judge Christopher S. Sontchi is assigned to the Chapter 11 cases. The Debtors have tapped Dennis A. Meloro, Esq., at Greenberg Traurig, LLP, as counsel, and KCC as claims and notice agent. The U.S. Trustee has appointed three members to the Official Committee of Unsecured Creditors. Womble Carlyle Sandridge & Rice, LLP, and Ottenbourgh P.C., serve as its co-counsel. FRANKLIN INDUSTRIES: Hirsh Lacks Standing to Sue Qingdao et al. --------------------------------------------------------------- The Chapter 7 trustee of Franklin Industries, LLC -- a seller of refrigeration equipment that entered bankruptcy in 2009 -- assigned to Richard Hirsh certain causes of action upon which basis Hirsch brought a lawsuit against Qingdao Orien Commercial Equipment Co., Ltd., f/k/a AUCMA, et al. Hirsch, on February 28, 2012, filed a complaint alleging breach of contract, breach of warranty, and theft of proprietary information. Qingdao, as well as defendants Orien USA, LLC and John Doran filed motions to dismiss the complaint. On review, District Judge Roslynn R. Mauskopf concludes that the written assignment instrument did not transfer to Hirsch the claims against the parties upon which he now sues, and that Hirsch therefore lacks standing. Accordingly, Judge Mauskopf grants the Qingdao and the Doran defendants' motions and the complaint is dismissed against them. Furthermore, the Court rules, all claims against the two remaining (non-appearing) defendants, Michael Witthoft and Five Star Enterprises Limited, are also dismissed. Franklin Industries was an American corporation that designed, manufactured, and sold cooling units. Hirsch was its principal. A copy of Judge Mauskopf's March 6, 2015 Memorandum and Order is available at http://is.gd/Bqby0jfrom Leagle.com. The case is RICHARD HIRSCH, Assignee of Certain Claims of the Bankruptcy Estate of Franklin Industries, LLC, Plaintiff, v. QINGDAO ORIEN COMMERCIAL EQUIPMENT CO., LTD., f/k/a AUCMA, JOHN DORAN, MICHAEL WITTHOFT, FIVE STAR ENTERPRISES LIMITED, and ORIEN USA, LLC, Defendants, Case No. 12-CV-952 (RRM), (E.D.N.Y.). Richard Hirsch, Plaintiff, represented by Eliot R. Clauss -- erc@claussassociates.com -- Clauss & Associates, P.C.. Qingdao Orien Commercial Equipment Co., Ltd., Defendant, represented by Valerie Ying Chen Wong -- info@wongwonglaw.com -- Wong Wong & Associates, P.C. & Vivian Chen -- vchen@wongwonglaw.com -- Wong, Wong & Associates, P.C.. John Doran, Defendant, represented by Harlan L. Cohen, Dunn Lambert, LLC. Orien USA, LLC, Defendant, represented by Harlan L. Cohen, Dunn Lambert, LLC. FREESEAS INC: Sells $750,000 Convertible Note to Glengrove Small ---------------------------------------------------------------- FreeSeas Inc. entered into a securities purchase agreement with Glengrove Small Cap Value Ltd. on March 5, 2015, pursuant to which, the Company sold a $750,000 principal amount convertible note to the Investor for gross proceeds of $750,000. According to a document filed with the Securities and Exchange Commission, the Note will mature on the one year anniversary of the Closing Date and will bear interest at the rate of 8% per annum, which will be payable on the maturity date or any redemption date and may be paid, in certain conditions, through the issuance of shares, at the discretion of the Company. The Note will be convertible into shares of the Company's common stock, par value $0.001 per share at a conversion price equal to the lesser of (i) $0.45 and (ii) 60% of the lowest volume weighted average price of the Common Stock during the 21 trading days prior to the conversion date. A full-text copy of the Form 8-K report is available at: http://is.gd/UD6COE About FreeSeas Inc. Headquartered in Athens, Greece, FreeSeas Inc., formerly known as Adventure Holdings S.A., was incorporated in the Marshall Islands on April 23, 2004, for the purpose of being the ultimate holding company of ship-owning companies. The management of FreeSeas' vessels is performed by Free Bulkers S.A., a Marshall Islands company that is controlled by Ion G. Varouxakis, the Company's Chairman, President and CEO, and one of the Company's principal shareholders. The Company's fleet consists of six Handysize vessels and one Handymax vessel that carry a variety of drybulk commodities, including iron ore, grain and coal, which are referred to as "major bulks," as well as bauxite, phosphate, fertilizers, steel products, cement, sugar and rice, or "minor bulks." As of Oct. 12, 2012, the aggregate dwt of the Company's operational fleet is approximately 197,200 dwt and the average age of its fleet is 15 years. FreeSeas Inc. reported a net loss of US$48.7 million in 2013, a net loss of US$30.88 million in 2012 and a net loss of US$88.2 million in 2011. The Company's balance sheet at March 31, 2014, showed US$79.8 million in total assets, US$77.4 million in total liabilities, all current, and US$2.37 million in total shareholders' equity. RBSM LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred recurring operating losses and has a working capital deficiency. In addition, the Company has failed to meet scheduled payment obligations under its loan facilities and has not complied with certain covenants included in its loan agreements. Furthermore, the vast majority of the Company's assets are considered to be highly illiquid and if the Company were forced to liquidate, the amount realized by the Company could be substantially lower that the carrying value of these assets. These conditions among others raise substantial doubt about the Company's ability to continue as a going concern. GEMINI SYSTEMS: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Gemini Systems, LLC 61 Broadway, Suite 925 New York, NY 10006 Case No.: 15-10574 Chapter 11 Petition Date: March 11, 2015 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Debtor's Counsel: Brendan M. Scott, Esq. Tracy L. Klestadt, Esq. KLESTADT & WINTERS, LLP 570 Seventh Avenue, 17th Floor New York, NY 10018 Tel: (212) 972-3000 Fax: (212) 972-2245 Email: bscott@klestadt.com tklestadt@klestadt.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Simon P. Leung, chief executive officer. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. GENTLE TOUCH: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Gentle Touch Services, Inc. 1100 Stubbs Avenue, Suite A Monroe, LA 71201 Case No.: 15-30293 Nature of Business: Health Care Chapter 11 Petition Date: March 11, 2015 Court: United States Bankruptcy Court Western District of Louisiana (Monroe) Judge: Hon. Jeffrey P. Norman Debtor's Counsel: Bradley L. Drell, Esq. GOLD, WEEMS, BRUSER, SUES & RUNDELL POB 6118 Alexandria, LA 71307-6118 Tel: (318) 445-6471 Email: bdrell@goldweems.com Total Assets: $49,409 Total Liabilities: $1.21 million The petition was signed by Liz Harris, president and director. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/lawb15-30293.pdf GREAT BASIN: Mantyla McReynolds Expresses Going Concern Doubt ------------------------------------------------------------- Great Basin Scientific, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K for the fiscal year ended Dec. 31, 2014. Mantyla McReynolds, LLC, expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has incurred substantial losses from operations causing negative working capital and negative operating cash flows. The Company reported a net loss of $21.7 million on $1.61 million of revenues for the year ended Dec. 31, 2014, compared to a net loss of $9.56 million on $761,000 of revenues for the same period in 2013. The Company's balance sheet at Dec. 31, 2014, showed $7.57 million in total assets, $15.6 million in total liabilities, and a stockholders' deficit of $8.01 million. A copy of the Form 10-K is available at: http://is.gd/3Ndpbj Great Basin Scientific, Inc., doing business as Great Basin Corporation, is a commercial-stage molecular diagnostic testing company. The Salt Lake City-based Company aims to improve patient care through the development and commercialization of its patented molecular diagnostic platform for testing infectious diseases, especially hospital-acquired infections. GREENSHIFT CORP: Issues 596.3 Million Common Shares --------------------------------------------------- Between Dec. 22, 2014, and March 9, 2015, GreenShift Corporation has issued 596,357,050 shares of common stock upon the conversion of debt, according to a document filed with the Securities and Exchange Commission. There are now 1,733,158,210 shares of common stock outstanding. The new shares were issued in separate transactions with investors, each of which exercised its right to convert derivative securities issued by the Company in prior periods. The issuances were exempt from registration under Section 5 of the Securities Act by reason of Section 4(2) of said Act, as the investors were sophisticated, were given access to information about the Company, and had taken the securities for investment. There were no underwriters. About Greenshift Corporation Headquartered in New York, GreenShift Corporation develops and commercializes clean technologies designed to integrate into and leverage established production and distribution infrastructure to address the financial and environmental needs of its clients by decreasing raw material needs, facilitating co-product reuse, and reducing waste and emissions. Greenshift reported a net loss of $4.43 million on $15.5 million of total revenue for the year ended Dec. 31, 2013, as compared with net income of $2.46 million on $14.51 million of total revenue in 2012. The Company's balance sheet at Sept. 30, 2014, showed $4.64 million in total assets, $43.2 million in total liabilities, and a $38.5 million total stockholders' deficit. Rosenberg Rich Baker Berman & Company, in Somerset, NJ, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company could be subject to default of its senior debt obligation in 2014 if a condition to a forbearance agreement that is not within the Company's control is not satisfied. These conditions raise substantial doubt about its ability to continue as a going concern. GREG MICHAEL ZUMBACH: Has Standing to Oppose IRS Claims Deal ------------------------------------------------------------ In the case IN RE: GREG MICHAEL ZUMBACH, PEGGY ANN ZUMBACH, Chapter 7, Debtors, Case No. 12-00787 (Bankr. N.D. Iowa), creditors Farmers & Merchants Savings Bank and the Internal Revenue Service sought bankruptcy court approval of a settlement of the Bank's objection to the IRS's untimely proofs of claim. Debtors Greg and Peggy Zumbach objected to the compromise. On review, Chief Bankruptcy Judge Thad J. Collins finds that the Debtors have standing to object. Therefore, the Court cannot approve the compromise. Accordingly, the judge denied the Motion to Approve Compromise. The judge rules that Farmers & Merchants Savings Bank's Motion for Summary Judgment is set for a status conference on March 13, 2015 at 3:15 P.M. by telephone conference call. A copy of the judge's March 9 order is available at http://is.gd/QWP5UUfrom Leagle.com. The Debtors are individuals who also own S&B Enterprises, a business located in Independence, Iowa. The Debtors filed a voluntary Chapter 13 petition on April 24, 2012. The case was converted to Chapter 11 on November 16, 2012. The case was eventually converted to Chapter 7 on April 3, 2013. Farmers & Merchants Savings Bank has the largest unsecured claim in the case. The IRS asserted a large unsecured priority claim in two separate proofs of claim. GRIDWAY ENERGY: Completes $265K Sale of Ziphany Assets ------------------------------------------------------ Gridway Energy Holdings, Inc., et al., notified the U.S. Bankruptcy Court of (i) closing of the sale of substantially all of the assets of Ziphany, LLC; and (ii) payment of proceeds to the settlement fund in accordance with the order approving the global settlement agreement. On Jan. 28, 2015, in accordance with the sale order and order approving the global settlement, the seller paid the proceeds received from the sale, in the amount of $265,000, to the settlement fund. As reported in the Troubled Company Reporter on Jan. 27, 2015, the Court approved the APA dated Dec. 18, 2014, between Ziphany, and JKMV AGQ LLC, buyer. The Court overruled the objections to the motion. The Debtors related that at the conclusion of the auction held Dec. 18, 2014, JKMV ACQ was selected as the prevailing bidder. The buyer offered to purchase substantially all of the assets of Ziphany for $265,000. Demand Response Partners, Inc., was selected as the second highest bidder for its offer to purchase the assets for $260,000. A copy of the APA is available for free at: http://bankrupt.com/misc/GridwayEnergy_saleorder.pdf Pursuant to the initial sale motion, the Debtors proposed to sell substantially all of their assets to prepetition secured lender, Vantage Commodities Financial Services I, LLC, as the stalking horse bidder, pursuant to a credit bid up to the amount of the DIP Financing, or to such other purchaser who submits a higher and better offer. Vantage extended a financing in the aggregate principal amount of up to $122 million. About Gridway Energy Gridway Energy Holdings, Inc., and its affiliates, including Glacial Energy Holdings -- providers of electricity and natural gas in markets that have been restructured to permit retail competition -- sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10833) on April 10, 2014. The Debtors have 200,000 electric residential customers and 55,000 gash residential customers across the U.S. A large portion of the customers' energy consumption and revenue is generated in the northeast U.S., Ohio, Illinois and Texas (collectively accounting for 80% of revenue), with the remaining portion coming from California and other states. The Debtors blamed the bankruptcy due to lower revenue brought by increased market competition, which caused the Debtors to default on certain of their obligations. Gridway defaulted on $60 million of debt. Prepetition, the Debtors negotiated a stock purchase transaction with an interested buyer. But in March 2014, the purchaser withdrew from the transaction because of the large amount of debt that the purchaser would become liable through a stock transaction. The Debtors are represented by Michael R. Nestor, Esq., Joseph M. Barry, Esq., and Donald J. Bowman, Jr., Esq., at Young Conaway Stargatt & Taylor, LLP; and Alan M. Noskow, Esq., and Mark A. Salzberg, Esq., at Patton Boggs LLP. They employed Omni Management Group, LLC, as claims and notice agent. Gridway Energy estimated assets of $500 million to $1 billion and debt of more than $1 billion. The Creditors' Committee is represented by Sharon Levine, Esq., and Philip J. Gross, Esq., at Lowenstein Sandler LLP; and Frederick B. Rosner, Esq., and Julia B. Klein, Esq., at The Rosner Law Group LLC. Vantage is represented in the case by Ingrid Bagby, Esq., David E. Kronenberg, Esq., Kenneth Irvin, Esq., and Karen Dewis, Esq., at Cadwalader, Wickersham & Taft LLP, and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A. HALCON RESOURCES: Extends Maturity of $290MM Note to 2020 --------------------------------------------------------- Halcon Resources Corporation entered into an amendment to its 8% senior convertible promissory note due 2017 in the principal amount of approximately $290 million issued to HALRES LLC. According to a document filed with the Securities and Exchange Commission, the HALRES Note Amendment extends the maturity date of the Note by three years, from Feb. 8, 2017, to Feb. 8, 2020. The HALRES Note originally provided for prepayment without premium or penalty at any time after Feb. 8, 2014, at which time it also became convertible into shares of the Company's common stock at a conversion price of $4.50 per share. These dates have been extended pursuant to the HALRES Note Amendment and the conversion price has been adjusted, such that at any time after Feb. 8, 2017, the Company may prepay the HALRES Note without premium or penalty, and HALRES may elect to convert all or any portion of unpaid principal and interest outstanding under the HALRES Note to shares of the Company's common stock at a conversion price of $2.44 per share, subject to adjustments for stock splits and other customary anti-dilution provisions as set forth in the HALRES Note. At the same time, the Company also entered into an amendment to the warrants issued to HALRES evidencing the right to purchase up 36.7 million shares of the Company's common stock. The Warrant Amendment extends the term of the Warrants from Feb. 8, 2017, to Feb. 8, 2020, and adjusts the exercise price of the Warrants to $2.44 per share. In connection with the Amendments, the Company and HALRES also amended and restated the Registration Rights Agreement, dated Feb. 8, 2012, as amended, which provides for certain demand and piggyback registration rights for the shares of the Company's common stock issuable upon conversion of the HALRES Note and exercise of the Warrants. The Amendments and the Amended Registration Rights Agreement were negotiated with HALRES by a special committee of the Board of Directors of the Company comprised entirely of independent, disinterested directors and were approved by the special committee after receiving independent legal and financial advice. The Amendments are subject to approval by the Company's shareholders in accordance with the rules of the New York Stock Exchange. Receipt of such shareholder approval on or before Dec. 31, 2015, is a condition to the effectiveness of the Amendments and the Amended Registration Rights Agreement. Shareholders representing approximately 44% of the Company's common stock have executed voting agreements indicating their intent to vote in favor of the Amendments. About Halcon Resources Halcon Resources Corporation acquires, produces, explores and develops onshore liquids-rich assets in the United States. This independent energy company operates in the Bakken/Three Forks, El Halcon and Tuscaloosa Marine Shale formations. As of Sept. 30, 2014, Halcon Resources had $5.93 billion in total assets, $3.59 billion in total liabilities, $110.7 million in redeemable noncontrolling interest, and $1.51 billion in total stockholders' equity. * * * As reported by the TCR on Jan. 27, 2015, Moody's Investors Service downgraded Halcon's Corporate Family Rating to 'Caa1' from 'B3' and the Probability of Default Rating to 'Caa1-PD' from 'B3-PD'. The downgrade reflects growing risk for Halcon's business profile because of high financial leverage and limited liquidity as its existing hedges roll-off and stop contributing to its borrowing base over the next 12-18 months. In the June 30, 2014, Standard & Poor's Ratings Services affirmed all its ratings, including its 'B' corporate credit rating, on Houston-based Halcon. HEXION INC: Reports $148 Million Net Loss for 2014 -------------------------------------------------- Hexion Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $148 million on $5.13 billion of net sales for the year ended Dec. 31, 2014, compared to a net loss of $634 million on $4.89 billion of net sales in 2013. For the three months ended Dec. 31, 2014, the Company reported a net loss of $66 million on $1.16 billion of net sales compared to a net loss of $526 million on $1.19 billion of net sales for the same period in 2013. As of Dec. 31, 2014, Hexion had $2.67 billion in total assets, $5.02 billion in total liabilities and a $2.35 billion total deficit. "Our fourth quarter results demonstrate the strength of our specialty product portfolio highlighted by double digit growth in our forest products and specialty epoxy businesses," said Craig O. Morrison, Chairman, president and CEO. "While our global base epoxies business remains below historical levels of profitability, recent trends have stabilized and we expect improvement as we look ahead to 2015 together with continued growth in our specialty portfolio. In addition, we expect the recent fall in oil prices to have a neutral impact on our overall financial results in 2015 as potential revenue declines from our lower activity are offset with declines in raw material costs across our portfolio." "We are pleased to also report continued progress in our strategic growth initiatives," Mr. Morrison added. "During the fourth quarter we completed construction of a new phenolic specialty resins manufacturing facility in China and continued to advance the construction of our three new formaldehyde facilities, which will begin production in late 2015. Together with the acquisition we completed earlier this year, we believe these investments behind our leading technologies and applications will strategically position us for long-term growth and profitability." "As discussed during our third quarter earnings conference call, we are currently experiencing a supplier force majeure that impacts our Versatic Acids and Derivatives business," Mr. Morrison said. "In response to this temporary disruption we are leveraging our global manufacturing network to help mitigate potential impacts on our customers and are pursuing recoveries under our business interruption insurance policies. In addition, we have begun executing a $30 million cost savings program, which will structurally enhance our cost profile and substantially offset the financial impact of the expected outage during 2015." Liquidity and Capital Resources At Dec. 31, 2014, Hexion had total debt of approximately $3.8 billion, unchanged from Dec. 31, 2013. In addition, at Dec. 31, 2014, the Company had $487 million in liquidity comprised of $156 million of unrestricted cash and cash equivalents, $7 million of short-term investments, $266 million of borrowings available under the Company's asset-backed loan facility and $58 million of time drafts and borrowings available under credit facilities at certain international subsidiaries. Hexion expects to have adequate liquidity to fund its ongoing operations for the next twelve months from cash on its balance sheet, cash flows provided by operating activities and amounts available for borrowings under its credit facilities. A full-text copy of the Form 10-K is available for free at: http://is.gd/czWnoN About Hexion Inc. Hexion Inc., formerly known as Momentive Specialty Chemicals, Inc., headquartered in Columbus, Ohio, is a leading producer of thermoset resins (epoxy, formaldehyde and acrylic). The company is also a supplier of specialty resins for inks and specialty coatings sold to a diverse customer base as well as a producer of commodities such as formaldehyde, bisphenol A, epichlorohydrin, versatic acid and related derivatives. * * * The TCR reported on Oct. 3, 2014, that Standard & Poor's Ratings Services lowered its corporate credit rating on Momentive Specialty by one notch to 'CCC+' from 'B-'. "The downgrade follows MSC's significant use of cash in the first half of 2014 and our expectation that lackluster cash flow from operations and elevated capital spending will cause free operating cash flow to be significantly negative in 2014 and 2015," said Standard & Poor's credit analyst Cynthia Werneth. As reported by the TCR on Dec. 15, 2014, Moody's Investors Service lowered the Corporate Family Rating of Momentive to 'Caa1' from 'B3'. "Due to elevated leverage, heavy capital spending on new capacity in 2014 and 2015, and the lack of meaningful improvement in financial performance, Moody's have lowered Momentive Specialty's rating," stated John Rogers, senior vice president at Moody's. HUTCHESON MEDICAL: May 1, 2015 General Claims Bar Date Set ---------------------------------------------------------- U.S. Bankruptcy Judge Paul W. Bonapfel established 5:00 p.m., on May 1, 2015, as the last date for any individual or entity to file proofs of claim, proofs of interest and requests for payment of administrative expense claims. Proofs of claim mus be submitted to the Debtors' claims agent at these addresses: If by overnight or hand delivery: BMC Group Attn: Hutcheson Medical Center, Inc. Claims Processing 300 Continental Blvd., No. 570 El Segundo, CA 90245 If by first class mail: BMC Group Attn: Hutcheson Medical Center, Inc. Claims Processing P.O. Box 90100 Los Angeles, CA 90009 About Hutcheson Medical Center Hutcheson Medical Center, Inc., operates the 179-bed hospital and related ancillary facilities, including, without limitation, a skilled nursing home and an ambulatory surgery center, located in Ft. Oglethorpe, Georgia, known as Hutcheson Medical Center. HMC leases the land and buildings that comprise the Medical Center from The Hospital Authority of Walker, Dade and Catoosa Counties. HMC and Hutcheson Medical Division, Inc., sought Chapter 11 bankruptcy protection (Bankr. N.D. Ga. Case No. 14-42863 and 14-42864) in Rome, Georgia, on Nov. 20, 2014. The cases are jointly administered under Case No. 14-42863. The cases have been assigned to the Honorable Paul W. Bonapfel. The Debtors are represented by Ashley Reynolds Ray, Esq., and J. Robert Williamson, Esq., at Scroggins and Williamson, in Atlanta, Georgia. The Debtors' Chapter 11 Plan and Disclosure Statement are due March 20, 2015. HMC disclosed $32.8 million in assets and $52.9 million in liabilities as of the Chapter 11 filing. No request has been made for the appointment of a trustee or examiner. HUTCHESON MEDICAL: Wants Until Dec. 31 to Propose Chapter 11 Plan ----------------------------------------------------------------- Hutcheson Medical Center, Inc., et al., ask the U.S. Bankruptcy Court to extend their exclusive periods to file a chapter 11 plan until Dec. 31, 2015, and solicit acceptances for that plan until Feb. 29, 2016. The Debtors explain that they needed more time to evaluate all potential exit strategies and determine the best course of action to propose in any chapter 11 plan(s). Absent the extension, the Debtors' exclusive periods to file a plan will expire on March 20. About Hutcheson Medical Center Hutcheson Medical Center, Inc., operates the 179-bed hospital and related ancillary facilities, including, without limitation, a skilled nursing home and an ambulatory surgery center, located in Ft. Oglethorpe, Georgia, known as Hutcheson Medical Center. HMC leases the land and buildings that comprise the Medical Center from The Hospital Authority of Walker, Dade and Catoosa Counties. HMC and Hutcheson Medical Division, Inc., sought Chapter 11 bankruptcy protection (Bankr. N.D. Ga. Case No. 14-42863 and 14-42864) in Rome, Georgia, on Nov. 20, 2014. The cases are jointly administered under Case No. 14-42863. The cases have been assigned to the Honorable Paul W. Bonapfel. The Debtors are represented by Ashley Reynolds Ray, Esq., and J. Robert Williamson, Esq., at Scroggins and Williamson, in Atlanta, Georgia. The Debtors' Chapter 11 Plan and Disclosure Statement are due March 20, 2015. HMC disclosed $32.8 million in assets and $52.9 million in liabilities as of the Chapter 11 filing. No request has been made for the appointment of a trustee or examiner. HUTCHESON MEDICAL: Wants Until June 18 to Assume or Reject Leases ----------------------------------------------------------------- Hutcheson Medical Center, Inc., et al., ask the U.S. Bankruptcy Court to extend until June 18, 2015, their time to assume or reject nonresidential real property leases. The Debtors relate that the extension could be longer as may be agreed upon by the Debtors and the applicable lessor of several non-residential real property leases. The Debtors' attorneys can be reached at: Ashley R. Ray, Esq. J. Robert Williamson, Esq. SCROGGINS & WILLIAMSON, P.C. 1500 Candler Building 127 Peachtree Street, NE Atlanta, GA 30303 Tel: (404) 893-3880 E-mail: rwilliamson@swlawfirm.com aray@swlawfirm.com About Hutcheson Medical Center Hutcheson Medical Center, Inc., operates the 179-bed hospital and related ancillary facilities, including, without limitation, a skilled nursing home and an ambulatory surgery center, located in Ft. Oglethorpe, Georgia, known as Hutcheson Medical Center. HMC leases the land and buildings that comprise the Medical Center from The Hospital Authority of Walker, Dade and Catoosa Counties. HMC and Hutcheson Medical Division, Inc., sought Chapter 11 bankruptcy protection (Bankr. N.D. Ga. Case No. 14-42863 and 14-42864) in Rome, Georgia, on Nov. 20, 2014. The cases are jointly administered under Case No. 14-42863. The cases have been assigned to the Honorable Paul W. Bonapfel. The Debtors are represented by Ashley Reynolds Ray, Esq., and J. Robert Williamson, Esq., at Scroggins and Williamson, in Atlanta, Georgia. The Debtors' Chapter 11 Plan and Disclosure Statement are due March 20, 2015. HMC disclosed $32.8 million in assets and $52.9 million in liabilities as of the Chapter 11 filing. No request has been made for the appointment of a trustee or examiner. IBCS MINING: Okayed to Pay $30.3K Incentive to CFO Mike Dean ------------------------------------------------------------ The Bankruptcy Court authorized IBCS Mining, Inc., et al., to pay their Chief Financial Officer Michael D. Dean $30,375 as incentive compensation. The Court ordered that no payment of the incentive compensation will be made from the cash collateral of Branch Banking and Trust Company without the consent of BB&T or upon further order of the Court. The matter was considered at a hearing held Jan. 28, 2015. The Debtors, in their motion, stated that through the sale order, the Debtors sold a substantial portion of the assets of IBCS Mining, Inc., Kentucky Division in exchange for a purchase price of $1.35 million. Majority of the sale proceeds were used to pay off the debtor-in-possession financing approved in the CTB Final DIP Order. The sale closed on Dec. 19, 2014. The debtor-on-possession financing approved in the CTB final DIP order has been paid in full. The Debtors are now operating using cash collateral. In this relation, the CFO is entitled to incentive compensation in the amount of $30,375, per the Court approved employment agreement. Branch Banking and Trust Company objected to the Debtors' motion, stating that the CFO is not entitled to incentive compensation under the terms of the Dean employment order. BB&T said that, alternatively, in the event the Court allows some or all of the incentive compensation the amount must be paid after the satisfaction of the BB&T claims. BB&T is represented by: Peter M. Pearl, Esq. SPILMAN THOMAS & BATTLE, PLLC P.O. Box 90 Roanoke, VA 24002 Tel: (540) 512-1832 Fax: (540) 342-4480 E-mail: ppearl@spilmanlaw.com The Debtors' attorneys can be reached at: Robert S. Westermann, Esq. Rachel A. Greenleaf, Esq. HIRSCHLER FLEISCHER, P.C. The Edgeworth Building 2100 East Cary Street P.O. Box 500 Richmond, VA 23218-0500 Tel: (804) 771-9500 Fax: (804) 644-0957 E-mail: rwestermann@hf-law.com rgreenleaf@hf-law.com About IBCS Mining IBCS Mining, Inc., and IBCS Mining, Inc., Kentucky Division, filed Chapter 11 bankruptcy petitions (Bankr. W.D. Va. Case Nos. 14-61215 and 14-61216) on June 27, 2014. The Court on July 8, 2014, authorized the joint administration of the cases. The cases are assigned to Judge Kevin R. Huennekens. IBCS Mining estimated assets and debts of at least $10 million. IBCS Mining Inc. disclosed $6.91 million in assets and $7.28 million in liabilities. Hirschler Fleischer, P.C., serves as the Debtors' counsel. The U.S. Trustee for Region 4 appointed two creditors to serves in an official committee of unsecured creditors. iBIO INC: Negative Cash Flow Raises Going Concern Doubt ------------------------------------------------------- iBio, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $1.65 million on $367,000 of revenues for the three months ended Dec. 31, 2014, compared to a net loss of $1.62 million on $nil of revenues for the same period during the prior year. The Company's balance sheet at Dec. 31, 2014, showed $11.04 million in total assets, $1.47 million in total liabilities and total stockholders' equity of $9.57 million. Since its spin-off from Integrated BioPharma, Inc. in August 2008, the Company has incurred significant losses and negative cash flows from operations. As of Dec. 31, 2014, the Company's accumulated deficit was $44.3 million, and it had cash used in operating activities of $2.2 million for the six months ended Dec. 31, 2014. The Company has historically financed its activities through the sale of common stock and warrants. Through December 31, 2014, the Company has dedicated most of its financial resources to investing in its iBioLaunch and iBioModulator platforms, its proprietary candidates for treatment of fibrotic diseases, advancing its intellectual property, and general and administrative activities. Cash on hand as of Dec. 31, 2014 of $7.4 million is expected to support the Company’s activities through Dec. 31, 2015. On Aug. 25, 2014, the Company entered into a stock purchase agreement with Aspire Capital Fund, LLC, pursuant to which the Company can require Aspire Capital to purchase up to $10 million of its common stock upon and subject to the terms of the agreement over a two-year period. As of Feb. 23, 2015, the Company required Aspire Capital to purchase $7.2 million of the Company's common stock. The extent to which the Company continues to utilize the purchase agreement with Aspire Capital as a source of funding will depend on a number of factors, including the prevailing market price of the Company's common stock and the volume of trading in its common stock. The history of significant losses, the negative cash flow from operations, the limited cash resources currently on hand and the dependence by the Company on its ability - about which there can be no certainty - to obtain additional financing to fund its operations after the current cash resources are exhausted raises substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/JcUxI2 Newark, Del.-based iBio, Inc., is a biotechnology company focused on commercializing its proprietary platform technologies: the iBioLaunch(TM) platform for vaccines and therapeutic proteins, and the iBioModulator(TM) platform for vaccine enhancement. The Company reported a net loss of $1.41 million on $819,000 of revenues for the three months ended Sept. 30, 2014, compared with net income of $379,000 on $nil of revenues for the same period in 2013. The Company's balance sheet at Sept. 30, 2014, showed $6.66 million in total assets, $1.22 million in total liabilities and stockholders' equity of $5.44 million. INFRAX SYSTEMS: Deficit, Losses Raise Going Concern Doubt --------------------------------------------------------- Infrax Systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $540,200 on $14,100 of revenues for the three months ended Dec. 31, 2014, compared with a net loss of $561,000 on $26,000 of revenues for the same period in 2013. The Company's balance sheet at Dec. 31, 2014, showed $1.12 million in total assets, $3.71 million in total liabilities, and a stockholders' deficit of $2.59 million. As of Dec. 31, 2014, the Company has a working capital deficit and has incurred a loss from operations and recurring losses since its inception resulting in a significant accumulated deficit. As of Dec. 31, 2014, the Company had negative working capital of $2.9 million and $2,263 in cash with which to satisfy any future cash requirements. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's is attaining revenues and management expects profitability in the future; however operations have not yet attained a profit or break-even. Accordingly, the Company depends upon capital to be derived from future financing activities such as loans from its officers and directors, subsequent offerings of its common stock or debt financing in order to operate and grow the business. A copy of the Form 10-Q is available at http://is.gd/lB0fuv St. Petersburg, Fla.-based Infrax Systems, Inc., engages in the design, development, systems integration, and manufacture of turnkey secure solutions for the utility industry. The Company reported a net loss of $501,000 on $16,000 of total revenue for the quarter ended Sept. 30, 2014, compared with a net loss of $559,000 on $65,200 of total revenue for the same period in 2013. INVERSIONES ALSACIA: Asks for Final Decree Closing Cases -------------------------------------------------------- Inversiones Alsacia S.A., et al., filed a motion asking the U.S. Bankruptcy Court for the Southern District of New York to enter a final decree closing their Chapter 11 cases. Lisa M. Schweitzer, Esq., at Cleary Gottlieb Steen & Hamilton LLP, avers that the Chapter 11 Cases of the Debtors have been "fully administered" within the meaning of Section 350 of the Bankruptcy Code, making it appropriate for the Court to enter a final decree closing the Chapter 11 Cases On Dec. 4, 2014, the Bankruptcy Court entered an order confirming the Plan and approving the Disclosure Statement. The core feature of the Plan is the pro rata issuance of the New Notes to Qualified Holders and the payment of the Non-Qualified Holder Distribution in cash to Non-Qualified Holders. On Dec. 17, 2014, the Effective Date occurred and the New Notes were issued to all Qualified Holders that tendered their Senior Secured Notes in accordance with the Plan prior to Dec. 11, 2014 (the "First Tender Deadline"). Such Qualified Holders constitute more than 95% of the holders of the Senior Secured Notes. Prior to the First Tender Deadline, a single Non-Qualified Holder tendered its Senior Secured Notes in the principal amount of $30,000 and has received a Non-Qualified Holder Distribution in cash authorized by the Plan, pursuant to the Court's Order Clarifying Plan Provisions (the "Clarifying Order"). As of Feb. 2, 2015, the second tender deadline under the Plan, holders, each of whom certified that they were Qualified Holders, had tendered additional Senior Secured Notes in the principal amount of $4,139,000. The First Follow-on Distribution Date under the Plan for distribution of New Notes to these holders is Feb. 17, 2015. In total, an aggregate of more than 96% of the holders of the Senior Secured Notes have completed the tender process. One additional tender deadline remains under the Plan. Accounting for the distributions of New Notes and Non-Qualified Holder Distributions that have been and will be made, consistent with the terms of the Plan, the Debtors have made all distributions on account of the Senior Secured Notes required by the Plan other than distributions to holders of Senior Secured Notes Claims that have not yet tendered. The Debtors also have paid all Administrative Claims and General Unsecured Claims as required pursuant to the Plan, other than Professional Claims which have not yet been approved by the Court. Fee Applications The Debtors' retained professionals, Cleary Gottlieb Steen & Hamilton LLP, FTI Consulting Canada ULC and Prime Clerk LLC, have filed first and final fee applications. A hearing on the First and Final Fee Applications was scheduled for March 11, 2015. The fee applications seek compensation and reimbursement of expenses in the following amounts: Requested Requested Applicant Compensation Expenses --------- ------------ -------- Cleary Gottlieb $741,781 $21,830 FTI Consulting Canada $1,551,613 $25,259 Prime Clerk $15,414 $0 Prime Clerk In connection with the closing of the Chapter 11 cases, the Debtors also request that such final decree and order contain appropriate provisions authorizing the termination of the employment and services of Prime Clerk, the court-appointed claims and noticing agent. Notwithstanding the termination of Prime Clerk's claims and noticing services in the Debtors' Chapter 11 Cases, it is anticipated that Prime Clerk will continue to assist the Debtors in effectuating their distribution obligations to any remaining holders of Senior Secured Notes pursuant to Article VI of the Plan. About Alsacia Inversiones Alsacia, together with its affiliate, Express de Santiago Uno S.A., are collectively the largest operator in the Transantiago Transportation System, transporting approximately 800,000 passengers every day, throughout 35 communities in Santiago, Chile, which accounts for more than 30% of the passengers in Transantiago. Alsacia and Express belong to non-debtor Global Public Services S.A. ("GPS Group"), an international holding company with interests in public passenger transportation, environmental solutions, outsourcing services and real estate development in Chile, Colombia, Panama, Peru and the United States of America. The GPS Group is controlled by Carlos Mario Rios Velilla and Francisco Javier Rios Velilla and several of their affiliates. Alsacia and Express and three affiliates sought bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in Manhattan, New York (Bankr. S.D.N.Y.) on Oct. 16, 2014, with a prepackaged plan that would restructure $347.3 million in senior secured notes but leave other creditors and the owners unimpaired. The cases are pending before the Honorable Martin Glenn and the Debtors have requested that their cases be jointly administered under Case No. 14-12896. The Debtors have tapped Cleary Gottlieb Steen & Hamilton, LLP, as bankruptcy counsel, FTI Consulting as financial advisor, and Prime Clerk LLC as claims and balloting agent. Inversiones Alsacia in December 2014 announced the successful completion of its restructuring process. The U.S. Bankruptcy Court confirmed on Dec. 4, 2014, Alsacia's prepackaged plan of reorganization. The plan contemplates that the companies can implement a planned exchange offer with holders of $347.3 million in senior secured notes. JOHN REYNOLDS: Judge Awards $22,740 in Attorneys' Fees ------------------------------------------------------ Bankruptcy Judge Peter H. Carroll ordered the creditors of John Sperry Reynolds to pay Mr. Reynolds' attorney fees of $22,740, which he incurred in defending against the involuntary Chapter 11 petition the creditors filed. Mr. Reynolds sought an award of reasonable attorneys' fees of $36,308 for 92.75 hours of legal services rendered by Cohn Stewart between April 17, 2014 and October 8, 2014, to defend the involuntary chapter 11 petition filed by the Petitioning Creditors against him. In his March 9 Memorandum Decision, a copy of which is available at http://is.gd/j1vsNyfrom Leagle.com, Judge Carroll related that the bankruptcy court has reviewed each of the lumped time entries, which constitute 32% of the fees requested by Cohn Stewart. Given the lack of contemporaneous time records, the billing in 1/4th hour increments, and the high percentage of lumped services for which compensation is sought, the court held it will impose as a penalty a 20% reduction of the fees requested. As reported in the Oct. 28, 2014 edition of The Troubled Company Reporter, Creditors Summerland Market, Inc. and Elian Hanna filed an involuntary Chapter 11 bankruptcy case (Bankr. C.D. Cal. 14-10690) against John Sperry Reynolds on April 7, 2014. That case was dismissed on September 22, 2014. Previously, a Memorandum Decision dated Oct. 20, 2014 was entered in the case on John Sperry Reynolds' motion for actual and punitive damages, reasonable attorneys' fees, and costs against the Petitioning Creditors. KANGADIS FOOD: Chief Judge Carla Craig Selected as Mediator ----------------------------------------------------------- The Hon. Chief Judge Carla Craig is selected as mediator to conduct a mediation of the disputed issues in the Chapter 11 case of Kangadis Food Inc. Judge Craig will mediate (i) pending contested matter in the Debtor's case; and (ii) the objection to the proof of claim filed by the Ben Gregory Triestman plaintiffs in the Debtor's case. Bankruptcy Judge Robert E. Grossman ordered that: 1. the Parties will work together to set a schedule for the mediation, provided however, that the mediation will occur no later than March 16, 2015; 2. the Parties will attend the mediation and will have complete authority and discretion to settle all disputed amounts and issues. 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 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. KANGADIS FOOD: Wants Final Decree Closing Reorganization Case ------------------------------------------------------------- Kangadis Food Inc., doing business as The Gourmet Factory, asks the Bankruptcy Court for a final decree and order closing its Chapter 11 case. The Debtor relates that on Dec. 11, 2014, the Court confirmed KFI's First Amended Plan of Reorganization. On Jan. 23, 2015, the Effective Date of its First Amended Plan occurred. KFI has substantially consummated the Plan by making most of the payments to creditors and holders of administrative expense claims as required under the Plan. The case is fully administered and there is no reason for the case to remain open. The only remaining obligation under the Plan is to make certain future payments. All contested matters, motions, applications, and adversary proceedings in the case have been resolved. 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. LONGVIEW POWER: Wants to Expand Scope of Lazard Work ---------------------------------------------------- The Bankruptcy Court will convene a hearing on March 18, 2015, at 10:30 a.m., to consider Longview Power, LLC, et al.'s supplemental application for authorization to expand the scope of employment and retention of Lazard Freres & Co. LLC provided by the order authorizing the employment of Lazard as investment banker. On Sept. 6, 2013, the Court authorized the Debtors to employ Lazard Freres. Pursuant to the retention order and the engagement letter, Lazard is expected to, among other things: (a) advise the Debtors with respect to the timing, nature, and terms of new securities, consideration, or other instruments to be issued or offered in connection with a plan of reorganization; (b) prepare financial documentation in connection with a restructuring transaction; (c) assist the Debtors with valuation analyses in connection with the disclosure statement for a plan of reorganization; and (d) assist the Debtors with acquiring postpetition debtor-in-possession financing with respect to these chapter 11 cases. The Debtors recently obtained Court approval with respect to a number of settlements that resolve litigation and arbitration among the Debtors, certain contractors for the Longview facility, and First American. These settlements also removed the overhang of the mechanics' liens asserted against the Longview facility. The Debtors consummated the transactions contemplated by the settlement agreements on Feb. 12, 2015. As a result, the Debtors may move forward to confirm their Plan and complete their restructuring on a consensual basis. In this relation, the additional services that Lazard Freres will assist and advise the Debtors in, among other things, evaluating any potential private issuance, sale, or placement of newly-issued securities, including any exit financing; provided, that, for the avoidance of doubt, the foregoing shall not include a conversion or increase in the amount of the Debtors' outstanding DIP facility, but shall include a refinancing of the DIP facility. The Debtors intend that Lazard's services will complement, and not duplicate, the services to be rendered by any other professional retained by the Debtors. 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, sought Chapter 11 protection (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 $1.72 billion plus undisclosed amounts and liabilities of $1.08 billion plus undisclosed amounts. 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. MEDICAL ALARM: Amends Dec. 31, 2014 Quarterly Report ---------------------------------------------------- Medical Alarm Concepts Holdings, Inc., filed with the U.S. Securities and Exchange Commission an amendment to its quarterly report on Form 10-Q for the quarter ended Dec. 31, 2014. A copy of the Form 10-Q/A is available at http://is.gd/iIsLqG The Company disclosed a net loss of $114,000 on $241,000 of revenue for the three months ended Dec. 31, 2014, compared with a net loss of $75,000 on $257,000 of revenue for the same period in the prior year. The Company's balance sheet at Dec. 31, 2014, showed $1.27 million in total assets, $3.14 million in total liabilities, and a stockholders' deficit of $2.14 million. The Company has working capital deficit of $702,900; did not generate significant cash from its operations; and had operating loss for prior three years. These circumstances, among others, raise substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. About Medical Alarm King of Prussia, Pa.-based Medical Alarm Concepts Holding, Inc., utilizes new technology in the medical alarm industry to provide 24-hour personal response monitoring services and related products to subscribers with medical or age-related conditions. Medical Alarm reported net income of $225,000 on $1.15 million of revenue for the year ended June 30, 2014, compared to net income of $3.18 million on $573,000 million of revenue during the prior year. Paritz & Company, P.A., in Hackensack, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2014. The independent auditors noted that the Company had working capital deficit of $636,000, a stockholders' deficit of $2.036 million, did not generate cash from its operations, and had operating loss for past two years. These circumstances, among others, raise substantial doubt about the Company's ability to continue as a going concern, according to the auditors. MICROCHIP TECHNOLOGY: S&P Assigns 'BB+' CCR; Outlook Stable ----------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its unsolicited 'BB+' corporate credit rating to Chandler, Ariz.-based Microchip Technology Inc. The rating outlook is stable. At the same time, S&P assigned its unsolicited 'BBB-' issue-level rating and unsolicited '2' recovery rating to the company's $2.5 billion senior credit facility. The '2' recovery rating indicates S&P's expectation for substantial recovery (70% to 90%; upper half of the range) for lenders in the event of a payment default. Additionally, S&P assigned its unsolicited 'BB-' issue-level rating and unsolicited'6' recovery rating to the company's 1.625% senior subordinated convertible notes due 2025 and 2.125% junior subordinated convertible notes due 2037. The '6' recovery rating indicates S&P's expectation for negligible recovery (0% to 10%) for noteholders in the event of payment default. "The ratings reflect Microchip's modest overall market position within the highly fragmented microcontrollers and analog markets, and the significant competition it faces against larger semiconductor firms with greater financial resources," said Standard & Poor's credit analyst David Tsui. The stable outlook on Microchip reflects S&P's view that the company will continue to experience revenue growth over the next 12 months while maintaining EBITDA margins in the mid- to high-30% area, benefitting from mid-single-digit percentage revenue growth in embedded processing and analog markets during the period. S&P would consider a lower rating if the company pursues debt-financed acquisitions or engages in shareholder-friendly activities, resulting in leverage that exceeds 3x on a sustained basis. Although unlikely over the near term, given the company's acquisitive growth strategy, S&P could raise the rating if the company reduces and sustains its debt leverage ratio below the 1.5x level, while clarifying that doing so would still enable the company to pursue its business and growth strategies. MICROVISION INC: Incurs $3.34 Million Net Loss in Fourth Quarter ---------------------------------------------------------------- MicroVision, Inc., reported a net loss of $3.34 million on $687,000 of total revenue for the three months ended Dec. 31, 2014, compared to a net loss of $2.42 million on $1.21 million of total revenue for the same period in 2013. For the 12 months ended Dec. 31, 2014, the Company reported a net loss of $18.1 million on $3.48 million of total revenue compared to a net loss of $13.2 million on $5.85 million of total revenue in 2013. As of Dec. 31, 2014, MicroVision had $11.9 million in total assets, $5.07 million in total liabilities and $6.87 million in total shareholders' equity. As of Dec. 31, 2014, backlog was $5.1 million and cash and cash equivalents were $8.3 million. This cash balance is exclusive of the license fee MicroVision is expecting later this month from its recently announced license agreement. "2015 is expected to be a transformational year for MicroVision. We expect to achieve significant year-over-year growth by focusing attention on making our customers successful whether providing high quality components or assisting them with their go-to-market efforts," said Alexander Tokman, president and CEO of MicroVision. A full-text copy of the press release is available at: http://is.gd/eA5KhO About Microvision Inc. Headquartered in Redmond, Washington, MicroVision, Inc. (NASDAQ: MVIS) is the creator of PicoP(R) display technology, an ultra- miniature laser projection solution for mobile consumer electronics, automotive head-up displays and other applications. Moss Adams LLP, in Seattle, Washington, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. MIDSTATES PETROLEUM: Appoints Two Directors to Board ---------------------------------------------------- Midstates Petroleum Company, Inc., announced that, effective as of March 9, 2015, Frederic (Jake) F. Brace and Alan J. Carr were elected as members of the Board of Directors of the Company. Mr. Brace will also serve as an employee of the Company. Dr. Peter J. Hill had resigned from the Board effective March 9, 2015, and will resign from his current position as interim president and chief executive officer immediately following the filing of the Company's annual report on Form 10-K. The Company intends to appoint Mr. Brace as interim president and chief executive officer upon the effectiveness of Dr. Hill's resignation. Dr. Hill will remain with the Company in a consulting role following Mr. Brace's appointment. The Board has retained Korn Ferry, a leading global executive search firm, to assist the Company with the recruitment of a permanent chief executive officer. Board members Mary P. Ricciardello, Loren M. Leiker and Robert M. Tichio have indicated that they intend to resign prior to the end of the month. In conjunction and concurrently with these Board resignations, the Board also intends to elect Bruce Stover and Robert Ogle to the Board. Thomas Knudson, Chairman and Lead Director of the Board, commented, "On behalf of the Board, I would like to thank Dr. Hill and the other directors who are anticipated to be stepping down, for the dedication, commitment and contribution each has made to the Company. Dr. Hill has served the Company well, and I would like to commend him on his service. I would also like to extend a warm welcome to Messrs. Brace and Carr, and the others soon joining the Board, whose valuable experience will help the Company address its current challenges and lead to sustained and long-term success. The Board looks forward to a smooth transition in connection with these planned management changes and maintains its commitment to the long-term future of the Company." Mr. Brace, age 57, has over 20 years of experience in business management and board representations. He is currently Chairman and Chief Executive Officer of Beaucastel LLC and Sangfroid Advisors Ltd. Previously, Mr. Brace worked for Niko Resources, Ltd., an oil and gas company, from August 2013 to December 2014 serving first as Senior Advisor and then as President of the company. From 1988 to 2008, Mr. Brace worked at the UAL Corporation (now United Continental Holdings, Inc.), the parent company of United Airlines, Inc. and Continental Airlines, Inc., where he served as executive vice president and chief financial officer of UAL Corporation and United Airlines, Inc. from 2002 to 2008. Mr. Brace is a member of the board of directors of Anixter International and Standard Register. He has also served on the board of numerous public and private companies. He received his BS in Industrial Engineering from the University of Michigan in 1980 and his MBA with a specialization in finance from the University of Chicago Graduate School of Business in 1982. Alan Carr, age 45, is an investment professional with 20 years of experience working from the principal and advisor side on complex, process-intensive financial situations. Mr. Carr is the founder of Drivetrain Advisors, a fiduciary services firm that supports the investment community in legally- and process-intensive investments as a representative, director, or trustee. Prior to founding Drivetrain Advisors in 2013, Mr. Carr was a Managing Director at Strategic Value Partners, LLC, where he led financial restructurings for companies in North America and Europe, working in both the US and Europe over 9 years. Prior to joining Strategic Value Partners, Mr. Carr was a corporate attorney at Skadden, Arps, Slate, Meagher & Flom. Mr. Carr currently serves on the board of directors of Tanker Investments Ltd. and Brookfield DTLA Fund Office Trust Investor Inc. Mr. Carr currently does and has previously served on boards of a variety of companies in North America, Europe and Asia. He received his B.A. in Economics and Sociology from Brandeis University in 1992 and his J.D. from Tulane Law School in 1995. Bruce Stover, age 66, has over 40 years of experience in the oil and gas industry and has an extensive background in mergers and acquisitions as well as global operations and business development. Mr. Stover has served on the board of directors of the Bristow Group, Inc. since 2009 and as Chairman of the Compensation Committee of such board since 2012. Prior to joining the board of Bristow Group, Inc., he was a founding member of the management team of Endeavor International Corporation, where he served as Executive Vice President, Operations and Business Development, from 2003 to 2010. Before serving at Endeavor International Corporation, Mr. Stover was senior vice president, Worldwide Business Development for Anadarko Petroleum Corporation responsible for evaluating and securing domestic and international business opportunities. While there, Mr. Stover also served as President and General Manager of Anadarko Petroleum Corporation's Algerian subsidiary. He began his career as an engineer with Amoco Production Company. Robert Ogle, age 65, has been a certified public accountant for over 35 years with experience in the upstream and downstream oil and gas industries, retail, airline and service industries, representing debtors, creditors, investors and governmental agencies. Mr. Ogle is currently a Senior Advisor with The Claro Group. Prior to joining The Claro Group, he was a founder and Chief Financial Officer for Ute Energy LLC from 2005 to 2009. Before serving there, Mr. Ogle was the Director of Corporate Recovery Services at Huron Consulting and prior to joining Huron Consulting was a Corporate Recovery Services Partner at Arthur Andersen, where he started their corporate recovery services practice in Houston. While at Arthur Andersen, Mr. Ogle provided services to Link Energy, Continental Airlines, Delta Airlines, United Airlines, Edge Petroleum Corporation, Orion Refinery, Entergy and many others. Mr. Ogle co-founded the Houston Chapter of the Turnaround Management Association. About Midstates Petroleum Company Midstates Petroleum Company, Inc. is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore U.S. Midstates' drilling and completion efforts are currently focused in the Mississippian Lime oil play in Oklahoma and Anadarko Basin in Texas and Oklahoma. The Company's operations also include the upper Gulf Coast tertiary trend in central Louisiana. Additional information about the Company is available at www.midstatespetroleum.com. As of Sept. 30, 2014, the Company had $2.27 billion in total assets, $1.94 billion in total liabilities and $334 million in total stockholders' equity. Midstates Petroleum had a net loss of $343.98 million in 2013 following a net loss of $150.09 million in 2012. * * * Midstates Petroleum carries a 'B' corporate credit rating from Standard & Poor's Ratings Services. As reported by the TCR on April 8, 2013, Moody's Investors Service affirmed Midstates Petroleum's 'B3' Corporate Family Rating. NET ELEMENT: Files Amendment to Sept. 30 Quarter Report ------------------------------------------------------- Net Element, Inc., filed with the U.S. Securities and Exchange Commission an amendment to its quarterly report on Form 10-Q for the quarter ended Sept. 30, 2014. A copy of the Form 10-Q/A is available at http://is.gd/t6c2Kd Net Element disclosed a net loss of $4.96 million on $6.03 million of net revenues for the three months ended Sept. 30, 2014, compared with a net loss of $3.87 million on $6.52 million of net revenues for the same period in 2013. The Company's balance sheet at Sept. 30, 2014, showed $15.8 million in total assets, $8.81 million in total liabilities, and stockholders' equity of $6.97 million. The Company had a net loss of $7.2 million for the nine months ended Sept. 30, 2014, an accumulated deficit of $126 million, and working capital of approximately $0.8 million at Sept. 30, 2014. The independent auditors' report on the Company's consolidated financial statements for the year ended Dec. 31, 2013 contained an explanatory paragraph expressing substantial doubt as to the Company's ability to continue as a going concern. About Net Element Miami, Fla.-based Net Element International, Inc., formerly Net Element, Inc., currently operates several online media Web sites in the film, auto racing and emerging music talent markets. Net Element reported a net loss of $48.3 million in 2013, as compared with a net loss of $16.4 million in 2012. BDO USA, LLP, in Miami, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has used substantial amounts of cash to fund its operating activities that raise substantial doubt about its ability to continue as a going concern. NICHOLS CREEK: Hawkins Balks at Whitney Bank's Bid for Dismissal ---------------------------------------------------------------- Hawkins Avenue Corp., a secured creditor in the Chapter 11 proceedings of Nichols Creek Development, LLC, asks the U.S. Bankruptcy Court for the Middle District of Florida to deny Whitney Bank's motion to dismiss the bankruptcy case or lift the automatic stay. Hawkins, which filed a secured proof of claim of $4,642,299 and asserts a third position lien on the Debtor's property, points out that Whitney Bank is the only creditor that supports dismissal. According to Hawkins Avenue, four things are clear at this point in the proceedings: (1) Whitney Bank's first lien position is protected by a substantial equity cushion; (2) there are numerous objections and disputes over the amounts owed to Whitney Bank; (3) it is not in the best interests of the creditors and the estate to dismiss the case because there is equity over and above Whitney Bank's first lien; and (4) the only party to benefit from dismissal or stay relief is Whitney Bank. Hawkins Avenue avers that clearly, the interests of the creditors of the estate are better served by allowing the sale of the Property to close and the proceeds of the sale to be held in trust, so that the Court may later determine the priorities and amounts due the respective parties. Hawkins Avenue notes that each of the junior lien holders have filed responses opposing the relief requested by Whitney Bank. Hawkins believes that equity dictates that junior lien holders be afforded an opportunity in this forum. According to Hawkins, equity and the totality of the circumstances require that the Debtor be permitted to propose a plan of reorganization (or orderly liquidation, as the case may be) and that the Debtor be permitted time to close a sale to the present buyer, or a future buyer. Hawkins Avenue is represented by: JOHNSON LAW FIRM, P.A. Eugene H. Johnson, Esq. Florida Bar No. 0032105 100 N. Laura Street, Ste. 701 Jacksonville, FL 32202 Tel No: (904)-652-2400 Fax No: (904)-652-2401 E-mail: ehj@johnsonlawpa.com Debtor Also Opposes Dismissal As reported in the Troubled Company Reporter on Feb. 24, 2015, the Debtor asked the Court to deny Whitney Bank's motion to dismiss the Debtor's Chapter 11 case or, in the alternative, for relief from the automatic stay with respect to the Debtor's property located at 9595 New Berlin Court, Jacksonville. The Debtor related that Whitney Bank, formerly known as Hancock Bank, cannot establish bad faith and is not entitled to relief under Section 362 or Section 1112 of the Bankruptcy Code. Additionally, the Debtor said that there is a substantial equity cushion in the property for Whitney and the property is not declining in value. In fact, it agreed, subject to Court approval, to sell the property for $14,900,000. On Jan. 9, 2015, Hancock Bank, now Whitney Bank, filed proof of claim in the amount of $8,753,776 regarding a loan secured by a separate real estate parcel owned by another company. On Feb. 4, Hancock Bank amended the proof of claim to change the amount of the claim to $8,680,438, TCR noted. The Debtor avers that the amended proof of claim is misleading on its face and should be a claim amount of $0. Hearing Scheduled A hearing on the Dismissal Motion is scheduled for May 22, 2015 at 10:00 a.m. About Nichols Creek Nichols Creek Development, LLC, sought Chapter 11 bankruptcy for protection (Bankr. M.D. Fla. Case No. 14-04699) on Sept. 26, 2014, in Jacksonville, Florida. R.L. Mitchell signed the petition as member manager. The Debtor owns 270+ acre parcel of river front real property commonly known as 9595 New Berlin Road Court, Jacksonville, Florida. In its schedules, the Debtor said the property is valued at $21.8 million and pledged as collateral to secured creditors owed a total of $11.6 million. The Debtor is under contract to sell the Property to a third party for the gross sales price of $14.9 million. The buyer has deposited $75,000.00 in escrow and the sale is scheduled to close March 23, 2015. The Law Offices of Jason A. Burgess, LLC, serves as the Debtor's counsel. NNN SIENA OFFICE: Wins Dismissal of Chapter 11 Cases ---------------------------------------------------- NNN Siena Office Park I 41 LLC and its debtor affiliates obtained a Bankruptcy Court order dismissing their joint administered Chapter 11 proceedings. Hon. M. Elaine Hammond of the U.S. Bankruptcy Court for the Northern District of California dismissed the the Debtors' cases on Feb. 17 after no objections were filed to the Debtors' motion. As reported in the Jan. 27, 2015 edition of the Troubled Company Reporter, the Debtors explained that their cases no long serves the purpose of the Bankruptcy Code in that continuation will only result in loss or diminution of the estates and there is no reasonable likelihood of rehabilitation within a reasonable amount of time. The Debtors told the Court they are unable to file a confirmable plan within the time fixed. The Debtors said they have investigated obtaining third party financing. The Debtors disclose that their present intended third party lender, whose commitment is dependent upon confirmation of a bankruptcy plan, would not commit to the funding required with a plan debt including a total claim to the lender in excess of $34,000,000, and their principals do not have other assets that they will commit to provide the infusion of new value necessary to confirm a plan for that amount of debt. About NNN Siena Office Park I 41 NNN Siena Office Park I 41, LLC, together with 30 other affiliates, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Cal. Case No. 14-40668) on Feb. 19, 2014. The Debtors are 28 of 31 tenants in common investors, each owning fractional, passive investment interests in the bare legal title to a medical office building located at 2850 West Horizon Ridge Parkway and 861 Coronado Center Drive, Henderson, Nevada. The Debtor disclosed unknown assets and $28.8 million in liabilities as of the Chapter 11 filing. Judge M. Elaine Hammond oversees the Debtor's Chapter 11 case. The petition was signed by Mubeen Aliniazee, manager and responsible individual. The Court entered orders excusing the receiver from turnover of the property until Dec. 9, 2014. OMEGA HEALTHCARE: S&P Affirms 'BB+' Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BBB-' issue-level rating to Omega Healthcare Investors Inc.'s $400 million senior unsecured notes due 2027. The recovery rating on this debt is '2', indicating S&P's expectations for substantial recovery (lower end of the 70%-90% range) in the event of default. S&P's 'BB+' corporate credit rating and stable outlook are unchanged. Omega intends to use the proceeds from this debt issuance for general corporate purposes, which may include repayment of Aviv REIT Inc.'s debt in connection with the previously announced merger with Aviv, repayment of future maturities on Omega's outstanding debt, or future acquisitions. The indenture governing the notes contains covenants typical of U.S. equity REITs including a limitation on total debt (less than 60% of total assets) and secured debt (less than 40% of total assets) as well as a minimum debt service coverage requirement (greater than 1.5x) and maintenance of total unencumbered assets (greater than 1.5x of total unsecured debt). The corporate credit rating continues to reflect a combination of what S&P considers to be the company's "fair" business risk profile and "intermediate" financial risk profile. The stable outlook reflects S&P's expectation that Omega will smoothly integrate the Aviv merger, and that tenant-level rent coverage will be relatively flat over the next year. S&P projects the merger will have a relatively neutral impact on Omega's key credit metrics, which remain toward the stronger end of "intermediate". S&P believes debt to EBITDA will rise to the low-6x range in 2015 before declining to the low-5x range in 2016, and expect fixed-charge coverage (FCC) will rise to the mid- to high-3x range in both 2015 and 2016. Although S&P believes the merger with Aviv slightly improves Omega's geographic and tenant diversity, the reimbursement risk inherent to the skilled nursing business and current pressures facing some of Omega's larger tenants limit the likelihood of an upgrade in the near term. Alternatively, S&P would consider a downgrade if the merger presents unforeseen challenges that result in weaker-than-expected operating performance, if tenant stress causes rent coverage levels to drop meaningfully, or if the company pursues large, leveraged acquisitions that result in a decline in FCC to below 2.5x. RATINGS LIST Omega Healthcare Investors Inc. Corporate Credit Rating BB+/Stable/-- New Rating Omega Healthcare Investors Inc. $400M snr unscrd notes due 2027 BBB- Recovery rating 2L ORGENESIS INC: Kesselman Expresses Going Concern Doubt ------------------------------------------------------ Orgenesis Inc. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K for the fiscal year ended Nov. 30, 2014. Kesselman & Kesselman expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has recurring losses for the period from inception through Nov. 30, 2014 and presently does not have sufficient cash and other resources to meet its requirements in the following twelve months. The Company reported a net loss of $5.50 million for the fiscal year ended Nov. 30, 2014, compared with a net loss of $5.54 million in the prior year. The Company's balance sheet at Nov. 30, 2014, showed $2.25 million in total assets, $5.23 million in total liabilities, and a stockholders' deficit of $2.98 million. A copy of the Form 10-K is available at: http://is.gd/5ZTnK8 Orgenesis Inc., a development stage company, is engaged in research and development in the biotechnology field in Israel. It intends to develop a technology for regeneration of functional insulin-producing cells thus enabling normal glucose regulated insulin secretion through cell therapy. The company was formerly known as Business Outsourcing Services, Inc. and changed its name to Orgenesis Inc. in August 2011. Orgenesis Inc. was founded in 2008 and is based in White Plains, New York. PARK MERIDIAN: Seeks Substantive Consolidation of Estates --------------------------------------------------------- Park Meridian, LLC, asks the U.S. Bankruptcy Court for the Northern District of Georgia, Gainesville Division, to issue an order directing the substantive consolidation of the estate of Park Meridian, LLC, and the estate of 7220, LLC. According to David W. Gordon, Esq., at Macey, Wilensky & Hennings, LLC, in Atlanta, Georgia, Park Meridian and 7220 jointly own commercial real property and improvements located at 3890 Johns Creek Parkway, in Suwanee, Forsyth County, Georgia. Mr. Gordon relates that since their inceptions, the Debtors have operated as a single entity. The Debtors are operated out of a single bank account, which is in the name of Park Meridian, Utility accounts are also in the name of Park Meridian, Mr. Gordon adds. Park Meridian believes that the substantive consolidation of the Debtors is necessary as they are so intricately intertwined that administering the Estates separately would involve duplicitous efforts on behalf of (a) creditors, who are identical except for the utilities in the name of Park Meridian; (b) the Debtors, each of whom would bear the expense of filing and serving identical pleadings in each case; and (c) the Court, Mr. Gordon tells the Court. Northside-Rosser Debt Holdings LLC, a secured creditor, tells the Court that it does not object to the substantive consolidation of the Debtors' estates but asserted that there is no basis upon which to grant the relief requested in the motion at this early state of the Debtor's bankruptcy case. The substantive consolidation of two legal entities is not a matter to be taken lightly as it will have significant, lasting effects to the entities to be consolidated as well as to the creditors of those entities, the secured creditor argues. The secured creditor further asserts that there is a remedy that can accomplish the type of practical consolidation the Debtor seeks without imposing a legal consequence on any party: joint administration of the Debtor and its affiliated debtors. Northside-Rosser, which purchased the Debtor's $9 million loan from Wachovia Bank, National Association, is represented by: Robbin S. Rahman, Esq. KILPATRICK TOWNSEND & STOCKTON LLP Peachtree Street, Suite 2800 Atlanta, GA 30309-4530 Tel: (404) 815-6500 Fax: (404) 815-6555 E-mail: rrahman@ kilpatricktownsend.com Park Meridian, L.L.C., sought Chapter 11 protection (Bankr. N.D. Ga. Case No. 15-20447) in Gainesville, Georgia, on March 2, 2015, stating that it was unable to pay its debts as they generally mature. The Atlanta-based debtor estimated $10 million to $50 million in assets and debt. PEOPLEWELL HR: Apr. 14 Hearing Set on UST Complaints ---------------------------------------------------- The U.S. Bankruptcy Court ordered that Peoplewell HR Solutions, LLC, appear at a hearing scheduled for April 14, 2015, at 10:30 a.m., to show cause why an appropriate sanction must not be entered on the failure to comply with the statutory duties and fiduciary obligations under the Bankruptcy Code and Rules. The U.S. Trustee advised the Court that the Debtors have not timely complied with the statutory obligations and fiduciary duties to file financial reports; or pay court fees and charges assessed. About Peoplewell HR Solutions Peoplewell HR Solutions, LLC, sought Chapter 11 protection (Bankr. M.D. Fla. Case No. 8:14-bk-13688) on Nov. 21, 2014, in Tampa, Florida. Buddy D. Ford, PA, serves as counsel to the Debtor. Peoplewell disclosed total assets of $340 million and total liabilities of $1.35 million. Chetan R. Shah, the manager, signed the petition. Shah filed her own bankruptcy case on Aug. 7, 2014, Case No. 14-09207, which is pending before Judge Catherine Peek McEwen. Related entities that sought bankruptcy protection also include Athenon CDK Corporation, Go Bollywood Tampa Bay Florida Convention, LLC, and Hillsdale Financial Synergy, LLC. According to a court filing, Peoplewell HR together with Chetan Sha, and Go Bollywood, have entered into a contingency agreement to prosecute an adversary proceeding against Dr. Kiran Patel. PLATTSBURGH SUITES: Opposes U.S. Trustee's Bid for Ch. 11 Trustee ----------------------------------------------------------------- William K. Harrington, the United States Trustee for Region 2, asks the U.S. Bankruptcy Court for the Northern District of New York to enter an order directing the appointment of a Chapter 11 trustee in the Chapter 11 case of Plattsburgh Suites, LLC, for "cause" shown and as being in the interests of creditors. The U.S. Trustee notes that the Debtor has not had possession of its assets since Nov. 26, 2013 when a receiver was appointed. The receiver was appointed as a result of Stabilis Fund II, LLC v. Plattsburgh Suites, LLC, et al. The creditor obtained a judgment of foreclosure. The receiver is Jonathan B. Schultz. The Receiver remains in possession or control of all the Debtor's assets including significant accumulated cash, in excess of $760,000. The Receiver retained the existing property manager Plattsburgh Manager, LLC, as the day-to-day operator of the Debtor's premises. On Feb. 6, 2015, the U.S. Trustee inquired and was informed by the Receiver's office that the real estate taxes due Jan. 31, 2015, were not paid. Section 1112(b)(4)(I) of the Bankruptcy Code states that the Court may convert or dismiss a chapter 11 case for "failure to timely pay taxes owed after the date of the order for relief or to file tax returns due after the date of the order for relief." Therefore, the Receiver has created a ground, pursuant to 11 U.S.C. Sec. 1112(b)(4)(I), to convert or dismiss the case, the U.S. Trustee tells the Court. Authorized Representative The U.S. Trustee doesn't want Michael J. Uccellini, who signed the bankruptcy petition, to manage the property. According to the U.S. Trustee, due to Mr. Uccellini's direct pecuniary interests in various affiliates and creditors of the Debtor, it appears that Mr. Uccellini lacks the kind of independence necessary to appropriately manage the Debtor during reorganization. The petition and schedules are signed by Michael J. Uccellini, as "Authorized Representative of Majority Member." Mr. Uccellini is one of two co-executors of the Estate of Walter F. Uccellini. The Estate of Walter F. Uccellini is listed as an unsecured creditor with a claim in the amount of $2,058,242. The United Group of Companies, Inc. is an affiliate of the Debtor and is listed as an unsecured creditor with a claim in the amount of $550,000. Mr. Uccellini is President and CEO of United Group of Companies, Inc. Plattsburgh Manager is an affiliate of the Debtor and conducts the day-to-day operations of the Debtor. DCG/UGOC Income Fund LLC is an investment vehicle that Michael J. Uccellini personally invested in. DCG/UGOC Income Fund LLC is listed as an unsecured creditor with a claim in the amount of $9,695,415. The U.S. Trustee's counsel is: Kevin Purcell Trial Attorney Bar Roll No.: 512555 74 Chapel Street, Suite 200 Albany, New York 12207 Voice: (518) 434-4553 Fax: (518) 434-4459 E-mail: kevin.j.purcell@usdoj.gov Debtor Reacts The Debtor says the U.S. Trustee's allegations are without merit and not supported by taxes. Richard L. Weisz, Esq., at Hodgson Russ LLP, counsel to the Debtor, explains that real property taxes are billed by the City of Plattsburgh and are not due until April. No postpetition real property tax payments have been missed. In addition, according to Mr. Weisz, while it is true that an affiliate of the Debtor, United Realty Management has been manager of the property for both the Debtor and the Receiver, United Realty's management has protected the Estate. United Realty is an accredited management organization and during its management, student retention in the college residence has exceeded 30 percent while the national average is 20 percent. Revenue for the past two years has been over $2 million while operating expenses have been approximately $1 million. United Realty charges a 5 percent management fee, which is commensurate with the market. About the Debtor Plattsburgh Suites, LLC, owns one parcel of real estate, an off-campus student housing complex adjacent to SUNY Plattsburgh. The property has been in a possession of a receiver since November 2013. Plattsburgh Suites filed for Chapter 11 protection (Bankr. N.D.N.Y. Case No. 15-10077) in Albany, New York, on Jan. 16, 2015, disclosing $32.06 million in liabilities. The case is assigned to Judge Robert E. Littlefield Jr. The Debtor has tapped Richard L. Weisz, Esq., at Hodgson Russ LLP, in Albany, New York, as counsel. PORTAGE BIOTECH: Reports $889K Net Loss for Dec. 31 Quarter ----------------------------------------------------------- Portage Biotech Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 6-K, disclosing a net loss of $889,000 for the three months ended Dec. 31, 2014, compared with a net loss of $292,000 for the same period during the prior year. The Company's balance sheet at Dec. 31, 2014, showed $5.74 million in total assets, $1.02 million in total liabilities, and stockholders' equity of $4.73 million. Management has secured sufficient equity financing which it believes will enable it to complete its pre-clinical work and other commitments. However, it will require additional resources to continue into clinical trials and/or for additional acquisitions. The Company continues to obtain financing, although there are no assurances that the management's plan will be realized. These conditions indicate the existence of a material uncertainty that raises substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. A copy of the Form 6-K is available at http://is.gd/fd7tJC Portage Biotech researches and develops pharmaceutical and biotech products. The company, through its subsidiary, holds a license in non-oncology fields and the know-how related to the Antennapedia protein (ANTP) transduction technology. It develops a research pipeline of ANTP-based drug candidates intended for use as therapeutic agents for various non-oncology indications. The company is based in Toronto, Canada. PUTNAM ENERGY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Putnam Energy, L.L.C. 810 Quail Ridge Westmont, IL 60559 Case No.: 15-08733 Nature of Business: A company with power plant and pipeline assets. Chapter 11 Petition Date: March 11, 2015 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Hon. Carol A. Doyle Debtor's Counsel: Douglas S Draper, Esq. HELLER, DRAPER, PATRICK, HORN & DABNEY, LLC 650 Poydras St Ste 2500 New Orleans, LA 70130 Tel: (504) 299-3300 Fax: (504) 299-3399 Email: ddraper@hellerdraper.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $1 million to $10 million The petition was signed by Terrence O'Malley, manager and CEO, and as manager of Putnam Energy Holdings, LLC, the sole member of Putnam Energy, L.L.C. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Adducci Accounting $3,512 Airgas $739 Ameren $191 Bank of America $11,000 Friedrich Energy Consulant $2,100 Frontier $235 Geolog Well Services, Inc $3,915 Gwaltney Drilling $29,878 Hanner & Hanner $1,850 Indiana Petroleum Contractors, Inc $3,650 Konicek & Dillon PC $5,000 Loveless Geological $6,500 McBeath, Fates & Ivers, PC $27,857 Natural Gas Compression $150,377 Norris Electric $1,458 Quail Ridge Investors, LLC $11,612 Radhje & Woodward, LLC $24,311 Robinson Engineering & Oil Company $11,000 Silver Smith $1,621 USDI $996 PUTNAM ENERGY: Files for Chapter 11 in Chicago ---------------------------------------------- Putnam Energy, L.L.C., sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 15-08733) on March 11, 2015, in Chicago, Illinois, after it failed to reach a forbearance agreement with its lender. The Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debt. According to the resolution authorizing the bankruptcy filing, the Company is indebted to Bridgeview Bank for an amount in excess of $1.70 million, and the Bank has obtained a judgment against the Company by way of confession of judgment and has caused the freezing of the accounts receivable owing to the Company from its primary customer. The Company has received a valuation report with respect to its gas wells and mineral leasehold interests in the Illini Field in Crawford County, Illinois, showing value of its assets substantially in excess of the obligations to the Bank. The Company had made extensive efforts to enter into a forbearance agreement with the Bank, so as to provide it additional time to operate its business in the ordinary course and to obtain substitute financing or additional equity capital, but has been unable to effect a forbearance agreement on terms that the Company believes will enable it to operate successfully. Accordingly, the Company has determined that the only feasible way of protecting the value of its assets and the interests of its creditors and beneficial owner is to seek to reorganize under Chapter 11 of the U.S. Bankruptcy Code. The case is assigned to Judge Carol A. Doyle. Terrence O'Malley, manager and CEO, signed the petition. The Debtor is represented by Douglas S Draper, Esq., at Heller, Draper, Hayden, Patrick & Horn, in New Orleans. QUEST SOLUTION: Copy of Presentation at ROTH Conference ------------------------------------------------------- Quest Solution, Inc. completed an investor presentation at the 27th Annual ROTH Conference at 5 p.m. in Dana Point, California, on March 9, 2015. A copy of the slides used at the presentation is available at http://is.gd/qfPESj About Quest Solution Quest Solution (formerly known as Amerigo Energy, Inc.) is a national mobility systems integrator with a focus on design, delivery, deployment and support of fully integrated mobile solutions. The Company takes a consultative approach by offering end to end solutions that include hardware, software, communications and full lifecycle management services. The highly tenured team of professionals simplifies the integration process and delivers proven problem solving solutions backed by numerous customer references. Motorola, Intermec, Honeywell, Panasonic, AirWatch, Wavelink, SOTI and Zebra are major suppliers which Quest Solution uses in its systems. Amerigo Energy reported a net loss of $1.12 million in 2013 following a net loss of $191,000 in 2012. L.L. Bradford & Company, LLC, Las Vegas, NV, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern. RECYCLE SOLUTIONS: March 19 Hearing on Bid for More Exclusivity --------------------------------------------------------------- The Bankruptcy Court will convene a hearing on March 19, 2015, at 9:30 a.m., to consider Recycle Solutions, Inc.'s request for an exclusivity extension. Objections, if any, are due March 17. The Debtor is asking the Court to extend its exclusive periods to file a Chapter 11 plan and explanatory disclosure statement to July 2, 2015, and solicit acceptances for that plan until Aug. 31. The Debtor said that negotiations and accounting regarding the use of cash collateral with Regions Bank, its primary lender, has taken longer than anticipated. The Debtor required additional time to explore financial strategies and alternative, particularly on light of the delay in finalizing a cash collateral order. About Recycle Solutions Recycle Solutions, Inc., founded in 2002 in Memphis, TN, is in the business of recycling and reusing plastic, wood and packaging for film rolls. The company claims to be a pioneer in helping leading corporations develop and implement innovative programs to reduce their environmental impact. James Downing, of Arlington, Tennessee, founder and president, owns 100% of the stock. Recycle Solutions sought Chapter 11 bankruptcy protection in its home-town in Memphis (Bankr. W.D. Tenn. Case No. 14-31338) on Nov. 4, 2014, disclosing assets of $11.5 million against liabilities of $6.4 million. The case is assigned to Judge George W. Emerson Jr. The Debtor is represented by Steven N. Douglass, Esq., at Harris Shelton Hanover Walsh, PLLC, in Memphis. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due March 4, 2015. The U.S. Trustee for Region 8 appointed three creditors to serve on the official committee of unsecured creditors. Adam B. Emerson of Bridgforth & Buntin, PLLC, represents the Committee as counsel. RECYCLE SOLUTIONS: Plum Creek's Lift Stay Motion Resolved --------------------------------------------------------- U.S. Bankruptcy Judge George W. Emerson, Jr., signed off an agreed order between Recycle Solutions, Inc., and Plum Creek Environmental Technologies, LLC. The agreed order resolves Plum Creek's motion for relief from the automatic stay and for abandonment of property from the estate; or, in the alternative, to compel the Debtor to assume or reject unexpired equipment leases. The parties had reached a compromise and settlement concerning one of the three equipment leases and related bailer. The Debtor agrees that, among other things: -- It has no opposition to the motion with respect to the relief sought pertaining to the Adlam Films Bailer and the UWT Bailer and the attendant Lease No. 1 and Lease No. 2. Specifically, the Debtor rejects Lease No. 1 and Lease No. 2. -- The automatic stay protecting the Debtor's interests in the Adlam Films Bailer and UWT Bailer is terminated as same applies to Plum Creek, and the Adlam Films Bailer and UWT Bailer are abandoned from the Debtor's estate; -- The Debtor will cooperate with Plum Creek in voluntarily and peacefully surrendering the Adlam Films bailer and the UWT bailer to Plum Creek at a mutually convenient time after entry of the agreed order. -- Plum Creek will not be precluded from filing a claim for lease rejection damages with respect to Lease No. 1 and Lease No. 2., nor is the Debtor precluded from objecting to said claims. Plum Creek is represented by: James P. Wilson, Jr. Mitchell McNutt & Sams, PA P.O. Box 1366 Columbus, MS 39703-1366 Tel. (662) 245-5123 Fax (662) 328-8035 E-mail: jwilson@mitchellmcnutt.com The Debtor's attorney can be reached at: Steven N. Douglass, Esq. HARRIS SHELTON HANOVER WALSH, PLLC 2700 One Commerce Square Memphis, TN 38103 Tel: (901) 525-1455 Fax: (901) 526-4084 E-mail: snd@harrisshelton.com About Recycle Solutions Recycle Solutions, Inc., founded in 2002 in Memphis, TN, is in the business of recycling and reusing plastic, wood and packaging for film rolls. The company claims to be a pioneer in helping leading corporations develop and implement innovative programs to reduce their environmental impact. James Downing, of Arlington, Tennessee, founder and president, owns 100% of the stock. Recycle Solutions sought Chapter 11 bankruptcy protection in its home-town in Memphis (Bankr. W.D. Tenn. Case No. 14-31338) on Nov. 4, 2014, disclosing assets of $11.5 million against liabilities of $6.4 million. The case is assigned to Judge George W. Emerson Jr. The Debtor is represented by Steven N. Douglass, Esq., at Harris Shelton Hanover Walsh, PLLC, in Memphis. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due March 4, 2015. The U.S. Trustee for Region 8 appointed three creditors to serve on the official committee of unsecured creditors. Adam B. Emerson of Bridgforth & Buntin, PLLC, represents the Committee as counsel. REGENICIN INC: Further Losses Raise Going Concern Doubt ------------------------------------------------------- Regenicin Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing net income of $2.41 million on $nil of revenues for the three months ended Dec. 31, 2014, compared with a net loss of $47,500 on $nil of revenues for the same period in 2013. The Company's balance sheet at Dec. 31, 2014, showed $4.11 million in total assets, $3.39 million in total liabilities, and total stockholders' equity of $724,000. The Company has an accumulated deficit of $8.54 million as of Dec. 31, 2014, expects to incur further losses in the development of its business and has been dependent on funding operations through the issuance of convertible debt and private sale of equity securities. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans include continuing to finance operations through the private or public placement of debt and/or equity securities and the reduction of expenditures. In addition, the Company intends on using the proceeds from the Sale Agreement to fund operations. However, no assurance can be given at this time as to whether the Company will be able to achieve these objectives. A copy of the Form 10-Q is available at: http://is.gd/nUEly2 Regenicin, Inc., a biotechnology company, develops regenerative cell therapies to restore the health of damaged tissues and organs in the United States. The company intends to develop and commercialize a technology of tissue-engineered skin substitutes to restore the healthy human skin qualities for use in the treatment of burns, chronic wounds, and various plastic surgery procedures. Its product includes TempaDerm, a cultured skin substitute for use in the treatment of chronic skin wounds comprising diabetic ulcers, decubitus ulcers, and venous stasis ulcers. The company was formerly known as Windstar, Inc. and changed its name to Regenicin, Inc. in July 2010. Regenicin, Inc. was founded in 2007 and is headquartered in Little Falls, New Jersey. RESIDENTIAL CAPITAL: Judge Rules on Objection to Silber Claim ------------------------------------------------------------- Bankruptcy Judge Martin Glenn entered a Memorandum and Opinion sustaining in part and overruling in part the Rescap Borrower Claims Trust's objection to Claim No. 4222 filed by Todd Silber. Silber filed the Claim on November 9, 2012 against Debtor GMAC Mortgage LLC, asserting a secured and administrative priority claim for $30,616 plus "pending CASES Damages Awarded By the Courts Connecticut U.S. District 3:12-cv-01087." The Claim incorporates an amended complaint Silber filed against GMACM in Connecticut state court on June 8, 2012, which asserts five causes of action -- a claim for breach of contract; breach of the implied covenant of good faith and fair dealing; claim for bank fraud and robo-signing; violation of the Truth in Lending Act (TILA) and engagement in unfair business practices; and wrongful foreclosure cause of action, which appears to be a claim under the Connecticut Unfair Trade Practices Act (CUTPA). In his March 9, 2015 Opinion available at http://is.gd/UZZuhBfrom Leagle.com, Judge Glenn specifies that the Objection is sustained to the extent that: -- Silber withdrew his causes of action arising out of allegations of robo-signing and forgery, as well as his TILA cause of action to the extent that it is based on the receipt of a truth in lending statement; -- Silber's Real Estate Settlement Procedures Act (RESPA) cause of action is time barred; -- Silber failed to establish alteration of the Note; -- Silber cannot assert a cause of action arising out of GMACM's alleged bad faith in mediation sessions; -- Silber's breach of the forbearance plan agreement claim fails; and -- Silber's fraud and defamation causes of action fail. With this, the remaining causes of action of Silber's Claim include (1) breach of contract; (2) breach of the implied covenant of good faith and fair dealing; (3) negligent misrepresentation; and (4) a violation of CUTPA. The judge thus rules that the Objection is partially overruled as to the remaining causes of action, without prejudice. The judge orders that the parties meet and confer and provide a letter to the Court no later than March 25, 2015, scheduling an evidentiary hearing to resolve the remaining portions of Silber's Claim. Should the parties resolve the Claim outside of Court through settlement negotiations, the parties shall provide the Court with a status letter to that effect prior to the scheduled evidentiary hearing. About Residential Capital Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.7 billion in assets and $15.3 billion in liabilities at March 31, 2012. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. ResCap sold most of the businesses for a combined $4.5 billion. The Bankruptcy Court in November 2012 approved ResCap's sale of its mortgage servicing and origination platform assets to Ocwen Loan Servicing, LLC and Walter Investment Management Corporation for $3 billion; and its portfolio of roughly 50,000 whole loans to Berkshire Hathaway for $1.5 billion. Judge Martin Glenn in December 2013 confirmed the Joint Chapter 11 Plan co-proposed by Residential Capital and the Official Committee of Unsecured Creditors. SALADWORKS LLC: WS Finance Balks at SSG Fees -------------------------------------------- WS Finance, LLC and JVSW, LLC, objected to Saladworks, LLC's motion for permission to employ SSG Advisors, LLC as investment banker. The Debtor is seeking permission to engage SSG to provide investment banking services nunc pro tunc to the Petition Date, but primarily related to efforts to locate and assist with the consummation of a transaction, defined as a sale or recapitalization of the Debtor. The Objectors are concerned that, if the SSG application is approved as presented by the Debtor, the Debtor will be subjected, unnecessarily, to a fee for value as to which SSG played absolutely no role in creating. The Objectors said that the engagement of SSG must be denied because the compensation structure detailed in the SSG application is exorbitant and would seek to compensate SSG from the very first dollar of any transaction without regard to the fact that JVSW, LLC is more than likely ready, willing and able to purchase the Debtor under a plan. According to the Objectors, the transaction under a plan has a value equal to any offer by a third party that would propose to purchase the Debtor for in excess of $11,000,000. Given the near certainty under a plan, it would be unfathomable for the Debtor to support any sale fee to SSG that would compensate SSG for any transaction that offers less than a net in cash to the Debtor of $11,500,000. Moreover, the Objectors claim the proposed monthly fee of $25,000 to SSG is excessive. The Objectors believe that SSG must agree to a monthly fee of $12,500 for four months totaling $50,000. The Objectors propose that SSG be entitled to a sale fee of equal to the greater of (i) $250,000 or (ii) 5% of the amount of the total consideration above $12,000,000. About Saladworks, LLC Developed in 1986, Saladworks, LLC, is the first and largest fresh-salad franchise concept in the United States. From its beginning in the Cherry Hill Mall, Saladworks quickly expanded to 12 additional locations in area malls and soon thereafter began franchising. The company has franchise agreements with 162 different franchisees. The equity owners are J Scar Holdings, Inc., (70%) and JVSW LLC (30%). Saladworks, LLC, sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 15-10327) on Feb. 17, 2015. The case assigned to Judge Laurie Selber Silverstein. The Debtor has tapped Landis Rath & Cobb LLP as counsel; SSG Advisors, LLC, as investment banker; EisnerAmper LLP, as financial advisor; and Upshot Services LLC, as claims and noticing agent. The Debtor estimated $10 million to $50 million in assets and debt. The U.S. trustee overseeing the Chapter 11 case of Saladworks LLC appointed three creditors of the company to serve on the official committee of unsecured creditors. SALADWORKS LLC: WS Says UpShot Not Needed for Plan Process ---------------------------------------------------------- WS Finance, LLC and JVSW, LLC, objected to Saladworks, LLC's motion to employ Upshot Services LLC as administrative agent. The Debtor is seeking permission to engage UpShot Services to provide bankruptcy administrative services, primarily related to administrative functions relating to a plan process and preparation of schedules and statements of financial affairs. The Objectors submitted that the UpShot application is not appropriate under the circumstances of the case and should be denied. The Objectors said that the Debtor does not contemplate filing a Plan in the case, instead, the Debtor proposes to sell substantially all of its assets in an 11 U.S.C. Sec. 363 sale, and, as a result, majority of the services proposed to be provided by UpShot (balloting, tabulation of votes, reports relating to reorganization, generating ballots, ballot certifications and testimony in connection with such services, managing distributions) are not relevant to the case. About Saladworks, LLC Developed in 1986, Saladworks, LLC, is the first and largest fresh-salad franchise concept in the United States. From its beginning in the Cherry Hill Mall, Saladworks quickly expanded to 12 additional locations in area malls and soon thereafter began franchising. The company has franchise agreements with 162 different franchisees. The equity owners are J Scar Holdings, Inc., (70%) and JVSW LLC (30%). Saladworks, LLC, sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 15-10327) on Feb. 17, 2015. The case assigned to Judge Laurie Selber Silverstein. The Debtor has tapped Landis Rath & Cobb LLP as counsel; SSG Advisors, LLC, as investment banker; EisnerAmper LLP, as financial advisor; and Upshot Services LLC, as claims and noticing agent. The Debtor estimated $10 million to $50 million in assets and debt. The U.S. trustee overseeing the Chapter 11 case of Saladworks LLC appointed three creditors of the company to serve on the official committee of unsecured creditors. SALADWORKS: Parties Balk at Employment of Landis Rath as Counsel ---------------------------------------------------------------- Parties-in-interest WS Finance, LLC and JVSW, LLC, filed objections to Saladworks, LLC's application to employ Landis Rath & Cobb, LLP as counsel, nunc pro tunc to the Petition Date. The Objectors were concerned that, if the LRC application is approved as presented by the Debtor, the engagement of LRC and the significant prepetition payments by the Debtor to LRC, will not be subjected to appropriate levels of investigation and scrutiny. The Objectors said that the motion must be denied because: a. LRC has not included, as a part of its engagement, a copy of its pre-Petition Date engagement agreement with the Debtor, which objectors believe is a critical element of any determination regarding the various allegations contained in the LRC application; b. While LRC has disclosed a range of hourly rates to be charged for work performed on behalf of the Debtor, LRC must also disclose a breakdown of the hourly rates of each professional and para–professional expected to perform services on behalf of the Debtor in this case. c. LRC must be required to provide to parties in interest, including objectors, a detailed statement of its services performed on behalf of the Debtor between the date on which LRC was the engaged and the Petition Date, particularly where LRC seeks to be compensated in excess of $93,000 for work performed prior to the Petition Date. WS Finance's claims arise from the assignment to it of two loans from Metro Bank, well as an assignment of two confessed judgments entered in favor of Metro Bank and against Saladworks and one pending lawsuit. About Saladworks Developed in 1986, Saladworks, LLC, is the first and largest fresh-salad franchise concept in the United States. From its beginning in the Cherry Hill Mall, Saladworks quickly expanded to 12 additional locations in area malls and soon thereafter began franchising. The company has franchise agreements with 162 different franchisees. The equity owners are J Scar Holdings, Inc., (70%) and JVSW LLC (30%). Saladworks, LLC, sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 15-10327) on Feb. 17, 2015. The case assigned to Judge Laurie Selber Silverstein. The Debtor has tapped Landis Rath & Cobb LLP as counsel; SSG Advisors, LLC, as investment banker; EisnerAmper LLP, as financial advisor; and Upshot Services LLC, as claims and noticing agent. The Debtor estimated $10 million to $50 million in assets and debt. The U.S. trustee overseeing the Chapter 11 case of Saladworks LLC appointed three creditors of the company to serve on the official committee of unsecured creditors. SEAR METHODIST: Caprock Has Until April to Use SB Cash Collateral ----------------------------------------------------------------- The Bankruptcy Court approved a stipulation between Sears Caprock Retirement Corporation, and Santander Bank, N.A., authorizing Sears' interim use of cash collateral until April 30, 2015. Except as otherwise provided in the stipulation, all terms, conditions, and provisions of the Cash Collateral Order are unchanged and remain in full force and effect. A copy of the budget is available for free at: http://bankrupt.com/misc/SearsMethodists_CC_Stipulation.pdf Previously, the Court approved the stipulation between Sears and Prosperity Bank, N.A., the lender. About Sears Methodist Sears Methodist Retirement System Inc. provides luxurious residency to seniors. The system includes: (i) eight senior living communities located in Abilene, Amarillo, Lubbock, Odessa and Tyler, Texas; (ii) three veterans homes located in El Paso, McAllen and Big Spring, Texas, managed by Senior Dimensions, Inc., pursuant to contracts between SDI and the Veterans Land Board of Texas; and (iii) Texas Senior Management, Inc. ("TSM"), Senior Living Assurance, Inc. ("SLA") and Southwest Assurance Company, Ltd. ("SWAC"), which provide, as applicable, management and insurance services to the System. Sears Methodist Senior Housing, LLC, is the general partner of, and controls .01% of the interests in, Canyons Senior Living, L.P. ("CSL"). Sears Methodist and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 14 32821) on June 10, 2014. The cases are assigned to Judge Stacey G. Jernigan. The Debtors' counsel is Vincent P. Slusher, Esq., and Andrew Zollinger, Esq., at DLA Piper LLP (US), in Dallas, Texas; and Thomas R. Califano, Esq., Gabriella L. Zborovsky, Esq., and Jacob S. Frumkin, Esq., at DLA Piper LLP (US), in New York. The Debtors' financial advisor is Alvarez & Marsal Healthcare Industry Group, LLC, while the Debtors' investment banker is Cain Brothers & Company, LLC. The Debtors' notice, claims and solicitation agent is GCG Inc. The Debtors have sought and obtained an order authorizing joint administration of their Chapter 11 cases. The Official Committee of Unsecured Creditors is represented by Clifton R. Jessup, Jr., Esq., and Bryan L. Elwood, Esq., at Greenberg Traurig, LLP, in Dallas, Texas. SEQUENOM INC: Earns $1M in 2014, But More Cash Needed to Pay Debt ----------------------------------------------------------------- Sequenom, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing net earnings of $1.01 million on $152 million of net diagnostics services revenue for the year ended Dec. 31, 2014, compared to a net loss of $107.4 million on $120 million of net diagnostic services revenue in 2013. As of Dec. 31, 2014, the Company had $161 million in total assets, $192 million in total liabilities and a $31.2 million total stockholders' deficit. As of Dec. 31, 2014, cash, cash equivalents, and current marketable securities totaled $93.9 million, compared to $71.3 million at Dec. 31, 2013. The $22.6 million increase is due primarily to the proceeds from the sale of the Company's Bioscience segment, and funds received from the Pooled Patents Agreement with Illumina. The Company said it may not be able to generate enough cash flow from its operations to service its indebtedness. "If we fail to generate enough cash flow from our operations or otherwise obtain the capital necessary to fund our operations, our financial results, financial condition and our ability to continue as a going concern will be adversely affected and we will have to cease or reduce further commercialization efforts or delay or terminate some or all of our diagnostic testing services or other product development programs," the Company said in the Report. The Company expects to continue to incur losses and may have to raise additional cash to fund its planned operations. A full-text copy of the Form 10-K is available for free at: http://is.gd/UTNvTg 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. SHILO INN: Seeks Confirmation of New Value Reorganization Plans --------------------------------------------------------------- Debtors Shilo Inn, Seaside East, LLC, and Shilo Inn, Moses Lake, Inc., ask the Bankruptcy Court to confirm their Joint Plan of Reorganization dated Nov. 12, 2014, as revised on Dec. 11, 2014. According to the Debtors, the Plans are new value reorganization plans. The Plans cancel the existing equity in the Debtors held by Mark S. Hemstreet or his wife, Shannon Hemstreet, and, in exchange for cash contributions by Mark S. Hemstreet, issue new equity to him; the Plans repay creditors over time. The Effective Date of the Plan will be March 26, 2015, assuming that the Bankruptcy Court has entered an order confirming the Plan and there is no stay in effect. The Debtors seek to accomplish payments under the Plan by continuing to operate their businesses and manage their financial affairs and use business proceeds to pay creditors' claims. The Debtors will market their properties for sale at price points appropriate to make plan payments earlier than set forth in the projections. The Debtors' bankruptcy counsel is holding in a trust fund the new value contribution of $50,000 from Mark Hemstreet and Shannon Hemstreet. The new value contribution and cash on hand will be used to make payments on the Effective Date. Track Record The Debtors submit that they have done an excellent job of operating their businesses and managing their bankruptcy estates during the life of these bankruptcy cases, and the Plan should be confirmed. Prior to the filing of the bankruptcy cases, the Debtors paid over $1.4 million (including over $470,000 in disputed default interest, which the Honorable Marco A. Hernandez, District Court Judge for the District of Oregon, ruled was punitive and invalid) to CBT from CBT's own self-generated reinstatement notices. The Debtors made the total payment in full good faith to cure and fully reinstate the loans, only to have CBT take the money, then declare frivolous non-monetary defaults and attempt to foreclose. During these bankruptcy cases, the Debtors have: -- Faithfully and timely paid over $1,572,183 of stipulated cash collateral payments to CBT and kept all taxes and post-petition bills current; -- Accumulated $964,082 in the debtor-in-possession bank accounts, even after taking into account payment of over $700,000 of attorneys' fees and costs to their bankruptcy counsel, and having gone through two slow winter seasons during the pendency of the bankruptcy cases; -- Negotiated and closed a sale of the Shilo Nampa Blvd property for $1,350,000, which is 35% higher than CBT's appraisal and 17% higher than the court-appointed neutral appraisal; -- Negotiated and closed a sale of the Shilo Newberg property for $3,175,000, which is 30% higher than CBT's appraisal despite the cloud of bankruptcy and unrelenting litigation from CBT; -- Managed the Debtors' hotels profitably, efficiently, and well, with business trending upwards, even in the slower winter months; -- Combined from the two recent, positive sales, the Debtors have over $4,273,000 of net sale proceeds in the Debtors' counsel's client trust account; -- The Debtors continue to market their properties for sales that maximize the return to all creditors, such as those impressive, positive sales for Shilo Nampa Blvd and Shilo Newberg, even though CBT unreasonably opposed those sales and tried to stop them; and -- The Debtors attempted on multiple occasions to reach a consensual resolution with CBT that would at least pay off the principal amounts on its claims, especially from the impressive sales achieved by the Debtors and Mr. Hemstreet on Shilo Nampa Blvd and Shilo Newberg, which were enough to pay off the principal balances of both Debtors' plus one other, such as Shilo Rose Garden. Five of the Debtors' affiliates successfully restructured and repaid their debts in full in bankruptcy cases before this Court in the past four years with 100% success. Here, the Debtors have proposed a fair, reasonable, and feasible Plan that includes $50,000 of new value ($25,000 for each Debtor in this Plan) contributed by the Debtors' owner, Mark Hemstreet, who continues to work tirelessly with the Debtors' management to generate the greatest recovery possible for the estates and their creditors. A copy of the memorandum of points and authorities in support of the Plan is available for free at: http://bankrupt.com/misc/ShiloInnT_621_Seaside_MosesLakeplans.pdf About Shilo Inn, Twin Falls Shilo Inn, Twin Falls, LLC, and six affiliates filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 13-21601) on May 1, 2013. Judge Richard M. Neiter presides over the case. Shilo Inn, Twin Falls, estimated assets of at least $10 million and debts of at least $1 million. Shilo Inn, Twin Falls; Shilo Inn, Nampa Blvd, LLC; Shilo Inn, Newberg, LLC; Shilo Inn, Seaside East, LLC, Shilo Inn, Moses Lake, Inc.; and Shilo Inn, Rose Garden, LLC each operates and owns a hotel. California Bank and Trust is the primary, senior secured lender for each of the Debtors. The Debtors sought Chapter 11 protection after CBT on May 1, 2013, filed for receiverships in district court. David B. Golubchick, Esq., Kurt Ramlo, Esq., and J.P. Fritz, Esq., at Levene, Neale, Bender, Yoo & Brill LLP, in Los Angeles, represent the Debtors in their restructuring effort. The Debtors' Joint Plan of Reorganization dated Aug. 29, 2013, provides for payment of all claims in full, unless otherwise agreed with the claimholder, with unsecured claims to be paid over a three-month period from the Plan Effective Date. STANDARD REGISTER: Files for Chapter 11 to Sell Assets ------------------------------------------------------ The Standard Register Company sought Chapter 11 protection (Bankr. D. Del. Case No. 15-10541) on March 12, 2015, with plans to launch a sale process where its largest secured lender would serve as stalking horse bidder in an auction. Standard Register and its affiliates are providers in the United States of communications services and communications workflow, content and analytics solutions through multiple communication channels, including print, electronic, and Internet-based communications, to clients in the healthcare, financial services, manufacturing, retail, and transportation industries. The Debtors have operations in all U.S. states and Puerto Rico, and currently employ approximately 3,500 full-time employees and 16 part-time employees. The Debtors' operations generated revenues of $904 million in 2014 and approximately $974 million in 2013 on a pro forma basis, and suffered net losses of approximately $66 million in 2014 and approximately $7.4 million in 2013, respectively. Standard Register disclosed $453 million in total assets and $584 million in debt as of Dec. 31, 2014. The Debtors are obligated under a First Lien Credit Agreement, dated as of August 1, 2013, as amended, by and among Standard Register, WorkflowOne, the subsidiary guarantors named therein, Silver Point Finance, LLC, as administrative agent, and the lenders named therein. The First Lien Term Loan is a term loan in the original principal amount of approximately $124 million that will mature on Aug. 1, 2018. Prior to the Petition Date, the Debtors and advisor Lazard Middle Market LLC were approached by a small number of potential strategic buyers that expressed an interest in evaluating an asset sale and/or merger with the Debtors. These potential strategic buyers signed non-disclosure agreements and conducted due diligence in consideration for a potential acquisition of the Debtors' business operations as a going concern. No buyer expressed a willingness to assume the Debtors' pension obligations. As the Debtors and their advisors evaluated their strategic alternatives, two bidders, a strategic buyer, the First Lien Lenders were negotiating to become the stalking horse bidder to acquire substantially all of the Debtors' assets pursuant to Section 363 of the Bankruptcy Code. The Debtors, in consultation with their professionals, determined that the proposal of the First Lien Lenders provided greater value and greater certainty of consideration than the other proposal. Lazard, in conjunction with the Debtors’ other professionals, negotiated the proposed terms of the sale with the First Lien Lenders, and such negotiations ultimately resulted in the proposed asset purchase agreement (the "Stalking Horse APA") entered into by and between the Debtors and the First Lien Lenders. A copy of the affidavit in support of the first day motions is available for free at: http://bankrupt.com/misc/Standard_Reg_1st_Day_Affidavit.pdf The Debtors have tapped Young Conaway Stargatt & Taylor LLP as counsel, and Prime Clerk LLC as claims agent. STUART JARAMILLO: Must Convert to Chapter 11 or Face Dismissal -------------------------------------------------------------- The United States Trustee wants the Chapter 7 bankruptcy case of Stuart Jaramillo, a life insurance salesman for the New York Life Insurance Company of America, dismissed. The U.S. Trustee asserts that the presumption of abuse arises under 11 U.S.C. Sec. 707(b)(2) -- the "means test" -- and the totality of the circumstances of Mr. Jaramillo's financial situation demonstrates abuse under 11 U.S.C. Sec. 707(b)(3). The U.S. Trustee also asserts that granting Chapter 7 relief to Mr. Jaramillo would be an abuse of the provisions of that chapter. "Based on Mr. Jaramillo's excessive payments for life insurance premiums and housing, as weighed against the other Stewart Factors to be considered under the "totality of the circumstances" test, the Court finds that granting Mr. Jaramillo a Chapter 7 discharge would be an abuse of the provisions of that chapter. Unless Mr. Jaramillo files an appropriate motion to convert his Chapter 7 case to Chapter 11 on or before March 31, 2015, the Court will dismiss his Chapter 7 case," Bankruptcy Judge Robert H. Jacobvitz said in a Memorandum Opinion dated March 10, 2015, a copy of which is available at http://is.gd/8KHNukfrom Leagle.com. Mr. Jaramillo filed a voluntary petition under Chapter 7 of the Bankruptcy Code (Bankr. D. N.M. Case No. 13-11090) on March 31, 2013. His Schedules D and F show about $1 million of secured debt and about $760,000 of unsecured debt. Mr. Jaramillo is represented by Daniel J Behles, Esq., in Albuquerque. THERAPEUTICSMD INC: Incurs $16.3 Million Net Loss for Q4 -------------------------------------------------------- TherapeuticsMD, Inc., reported a net loss of $16.3 million on $4.25 million of net revenues for the three months ended Dec. 31, 2014, compared to a net loss of $8.37 million on $2.86 million of net revenues for the same period in 2013. For the year ended Dec. 31, 2014, the Company reported a net loss of $54.2 million on $15.02 million of net revenues compared to a net loss of $28.4 million on $8.77 million of net revenues in 2013. As of Dec. 31, 2014, TherapeuticsMD had $59.07 million in total assets, $10.69 million in total liabilities and $48.38 million in total stockholders' equity. "During 2014, we made significant advancements on both the commercial and R&D fronts, working toward our goal to build a leading women's health company," said TherapeuticsMD CEO Robert G. Finizio. "Our two lead pipeline programs continued to advance in phase 3 clinical trials, and sales from our current women's health business grew at an impressive rate, which highlights the capabilities of our existing commercial infrastructure. We look forward to further advancing our pipeline this coming year, including completing enrollment in our phase 3 investigational combination therapy and VVA programs and delivering phase 3 results from the VVA program as planned." At Dec. 31, 2014, TherapeuticsMD had cash on hand of approximately $51.4 million, compared with approximately $54.2 million at Dec. 31, 2013. In February 2015, the company completed a public offering of shares of its common stock for net proceeds of approximately $59.1 million. A full-text copy of the press release is available for free at: http://is.gd/pE73N7 About TherapeuticsMD Boca Raton, Florida-based TherapeuticsMD, Inc. (OTC QB: TXMD) is a women's healthcare product company focused on creating and commercializing products targeted exclusively for women. The Company currently manufactures and distributes branded and generic prescription prenatal vitamins as well as over-the-counter vitamins and cosmetics. The Company is currently focused on conducting the clinical trials necessary for regulatory approval and commercialization of advanced hormone therapy pharmaceutical products designed to alleviate the symptoms of and reduce the health risks resulting from menopause-related hormone deficiencies. TRIMEDYNE INC: Reports $169K Net Loss in Dec. 31 Quarter -------------------------------------------------------- Trimedyne, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $169,000 on $1.35 million of net revenues for the three months ended Dec. 31, 2014, compared with a net loss of $259,000 on $1.4 million of net revenues for the same period during the prior year. The Company's balance sheet at Dec. 31, 2014, showed $4.42 million in total assets, $980,000 in total liabilities and total stockholders' equity of $3.44 million. At Dec. 31, 2014, the Company had working capital of $2.25 million compared to $2.41 million at the end of the fiscal year ended Sept. 30, 2014. Cash decreased by $541,000 to $751,000 from $1.29 million at Sept. 30, 2014. The Company intends to fund operations with cash on hand and from operations, however, additional working capital in the next 12 months will be required based upon its current expenditure rate. These factors raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/HNG8sW About Trimedyne Inc. Lake Forest, Calif.-based Trimedyne, Inc., is engaged in the development, manufacturing and marketing of 80 and 30 watt Holmium "cold" pulsed lasers and a variety of disposable and reusable, fiber optic laser energy delivery devices for use in a broad array of medical applications. * * * As reported in the TCR on Feb. 5, 2013, dbbMckennon, in Newport Beach, Calif., expressed substantial doubt about Trimedyne, Inc.'s ability to continue as a going concern. The Company's independent accountants noted that the Company has incurred recurring losses from operations and has used cash in operating activities. TRIPLANET PARTNERS: Has Until April 15 to Decide on Leases ---------------------------------------------------------- U.S. Bankruptcy Judge Robert D. Drain extended until April 15, 2015, Triplanet Partners, LLC's time to assume or reject a non-residential real property lease at 50 Main Street, White Plains, New York with Regus Management Group. Benjamin Roberts' objection to the motion was overruled. About Triplanet Partners Triplanet Partners LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 14-22643) on May 8, 2014. Sophien Bennaceur signed the petition as manager. The Debtor disclosed $19.9 million in assets and $33.7 million in liabilities. Arnold Mitchell Greene, Esq., at Robinson Brog Leinwand Greene Genovese & Gluck, P.C., serves as the Debtor's counsel. Judge Robert D. Drain oversees the case. No official committee of unsecured creditors has been appointed in the case. The Court entered an order extending until Oct. 15, 2014, Triplanet Partners, LLC's time to assume or reject a non- residential real property lease with Regus Management Group. TRIPLANET PARTNERS: Has Until May 5 to Propose Chapter 11 Plan -------------------------------------------------------------- U.S. Bankruptcy Judge Robert D. Drain extended Triplanet Partners, LLC's exclusive periods to propose a Chapter 11 plan until May 5, 2015, and solicit acceptances for that plan until July 6. About Triplanet Partners Triplanet Partners LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 14-22643) on May 8, 2014. Sophien Bennaceur signed the petition as manager. The Debtor disclosed $19.9 million in assets and $33.7 million in liabilities. Arnold Mitchell Greene, Esq., at Robinson Brog Leinwand Greene Genovese & Gluck, P.C., serves as the Debtor's counsel. Judge Robert D. Drain oversees the case. No official committee of unsecured creditors has been appointed in the case. The Court entered an order extending until Oct. 15, 2014, Triplanet Partners, LLC's time to assume or reject a non- residential real property lease with Regus Management Group. ULTIMATE NUTRITION: Court Sets April 14 as Claims Bar Date ---------------------------------------------------------- The Hon. Albert S. Dabrowski of the U.S. Bankruptcy Court for the District of Connecticut set April 14, 2015, at 5:00 p.m. (prevailing Eastern Time) as deadline for creditors of Ultimate Nutrition Inc. and Prostar Inc. to file their proofs of claim. All claims must be filed on or before the 503(b)(9) Claim Bar Date by the Clerk of the Court. 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. On Dec. 19, 2014, the Court entered an order directing the joint administration of the Debtors' cases for procedural purposes. 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 U.S. Trustee for Region 2 appointed three creditors to serve on the official committee of unsecured creditors. The Committee has selected Lowenstein Sandler, LLP, to serve as its counsel, and Neubert, Pepe & Monteith, P.C. to serve as its local counsel. US COAL: Has Until April 10 to Propose their Reorganization Plan ---------------------------------------------------------------- The Bankruptcy Court extended Licking River Mining, LLC, et al.'s exclusive periods to file their plan of reorganization and disclosure statement until April 10, 2015, and solicit acceptances for that plan June 9. Julia and Carl McAfee; Dean McAfee Holdings, LLC; Jeffery Paul Dean, Trustee of the Trust for Jeffery Paul Dean (GS Exempt), under Agreement dated Aug. 29, 2008; Donna Mae Kolb, Trustee for the Trust for Donna Mae Kolb (GS Exempt), under agreement dated Aug. 29, 2008; and Aubra Brian Dean, Trustee for the Trust for Aubra Brian Dean (GS Exempt), under Agreement dated Aug. 29, 2008, as successors in interest to the estate of Aubra Paul Dean [and along with McAfee Holdings, and the McAfees, collectively referred as the JAD Lenders, had objected to the Debtors' third motion for exclusivity extension. The JAD Lenders related that the Debtors were no longer entitled to the privilege of the exclusivity period to file plans. All active mining operations at JAD have ceased and a substantial portion of the JAD workforce has already been terminated. As the JAD operation is no longer a going concern, there is no hope of the Debtors effectuating a plan for same and no cause exists for the Court to grant a third extension of the exclusivity period herein. As reported in the Troubled Company Reporter on March 10, 2015, the Debtors, explained in their Exclusivity Motion that since the Additional Debtors' bankruptcy cases were commenced several months after the Original Debtors' bankruptcy cases, the Additional Debtors were initially subject to a different exclusivity period than the Original Debtors. The initial exclusivity period within which the Additional Debtors could file their plan and disclosure statement ran through March 4, and the initial exclusivity period within which the Additional Debtors could solicit acceptances of their plan ran through May 3, 2015. The Debtors needed additional time before a plan and disclosure statement can be submitted. The anticipated sale of the JAD (J.A.D. Coal Company, Inc., Fox Knob Coal Co., Inc., and Sandlick Coal Company, LLC) Debtors' assets is not expected to close until March 15, 2015, and filing a plan before sale closure would deprive the Debtors of any real ability to incorporate the impact of the sale into a plan. 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. The Debtors are represented by Amelia Martin Adams, Esq., and Laura Day DelCotto, Esq. of Delcotto Law Group PLLC; and Dennis J. Drebsky, Esq., and Christopher M. Desiderio, Esq., of Nixon Peabody LLP. VERSO PAPER: Reports $356 Million Net Loss for 2014 --------------------------------------------------- Verso Paper Holdings LLC filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $356 million on $1.29 billion of net sales for the year ended Dec. 31, 2014, compared with a net loss of $111 million on $1.38 billion of net sales in 2013. As of Dec. 31, 2014, Verso Holdings had $900.9 million in total assets, $1.68 billion in total liabilities and a $780.3 million total deficit. The Company said its operations require substantial ongoing capital expenditures, and it may not have adequate capital resources to fund all of its required capital expenditures. "Our business is capital intensive, and we incur capital expenditures on an ongoing basis to maintain our equipment and comply with environmental laws, as well as to enhance the efficiency of our operations. Our total capital expenditures were $42.0 million in 2014. We anticipate that our available cash resources, including amounts under our credit facilities, and cash generated from operations will be sufficient to fund our operating needs and capital expenditures for at least the next year. We may also dispose of certain of our non-core assets in order to obtain additional liquidity. However, if we require additional funds to fund our capital expenditures, we may not be able to obtain them on favorable terms, or at all. If we cannot maintain or upgrade our facilities and equipment as we require or as necessary to ensure environmental compliance, it could have a material adverse effect on our business, financial condition, and results of operations." Bankruptcy Warning The indentures governing the Company's notes, its ABL Facility, and its Cash Flow Facility limit its ability, among other things, to: * incur additional indebtedness; * pay dividends or make other distributions or repurchase or redeem the Company's stock; * prepay, redeem, or repurchase certain of its indebtedness; * make investments; * sell assets, including capital stock of restricted subsidiaries; * enter into agreements restricting its subsidiaries' ability to pay dividends; * consolidate, merge, sell, or otherwise dispose of all or substantially all of its assets; * enter into transactions with its affiliates; and * incur liens. The Cash Flow Facility requires the Company to maintain a maximum total net first-lien leverage ratio of not more than 3.50 to 1.00 if on the last day of any fiscal quarter, any portion of the facility is drawn (including outstanding letters of credit). In addition, the ABL Facility requires the Company to maintain a minimum fixed charge coverage ratio at any time when the average availability (defined as the lesser of the availability under the ABL Facility and the borrowing base at such time, net of any unrestricted cash) is less than the greater of (a) 10% of the lesser of the borrowing base at such time and the aggregate amount of the ABL Facility commitments at such time and (b) $10.0 million. In that event, the Company must satisfy a minimum fixed charge coverage ratio of 1.0 to 1.0. The ABL Facility also contains certain other customary affirmative covenants and events of default. As of December 31, 2014, the Company was not subject to the above described financial maintenance covenants. "A breach of any of these restrictive covenants could result in a default under the instruments governing our debt securities and credit agreements. If a default occurs, the holders of these instruments may elect to declare all borrowings thereunder outstanding, together with accrued interest and other fees, to be immediately due and payable. The lenders under our Cash Flow Facility and the ABL Facility would also have the right in these circumstances to terminate any commitments they have to provide further borrowings. If we are unable to repay our indebtedness when due or declared due, the lenders thereunder will also have the right to proceed against the collateral pledged to them to secure the indebtedness. If such indebtedness were to be accelerated, our assets may not be sufficient to repay in full our secured indebtedness and we could be forced into bankruptcy or liquidation," the Company states in the Report. A full-text copy of the Form 10-K is available for free at: http://is.gd/cmnY6M About Verso Verso is a North American producer of coated papers, including coated groundwood and coated freesheet, and specialty products. Verso is headquartered in Memphis, Tennessee, and owns three paper mills located in Maine and Michigan. Verso's paper products are used primarily in media and marketing applications, including magazines, catalogs and commercial printing applications such as high-end advertising brochures, annual reports and direct-mail advertising. Additional information about Verso is available on its Web site at http://www.versopaper.com/ * * * As reported by the TCR on July 10, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Memphis, Tenn.- based Verso Paper Holdings LLC to 'CC' from 'CCC'. "The rating action reflects the announcement that the company plans to conduct a two-part exchange for its senior secured second-priority notes and senior subordinated notes," said Standard & Poor's credit analyst David Kuntz. The TCR reported on June 24, 2014, that Moody's Investors Service downgraded Verso Paper's corporate family rating (CFR) to 'Caa3' from 'B3' and probability of default rating (PDR) to 'Caa3-PD' from 'Caa2-PD'. Verso's Caa3 CFR reflects the elevated risk of a default or distressed exchange in the next 12 months, the company's weak liquidity, high leverage (adjusted leverage over 13x), and the expectation that the company will continue to face secular demand declines and weak prices for most of the grades of coated paper it produces. VISCOUNT SYSTEMS: Appoints Ambassador Siegel as Chairman -------------------------------------------------------- Viscount Systems Inc. has named Ambassador Ned L. Siegel as the Chairman of the Board of Directors. Ambassador Siegel was elected to Viscount's Board in April 2014 and succeeds Dennis Raefield, who has stepped down as Chairman to focus on the Company's expected rapid growth and will continue to serve as chief executive officer and as a member of the Board. Ambassador Siegel brings over 30 years of entrepreneurial, business management and political leadership experience to Viscount. His extensive track record restructuring, repositioning and recapitalizing business ventures, developing new investment strategies, and establishing strategic relationships will be instrumental in creating return-driven opportunities for the Company. "Ambassador Siegel's experience holding various government positions and three decades of private sector success makes him a valuable addition to our board," said Dennis Raefield, president and CEO of Viscount Systems. "As we continue to execute on our long term growth strategy and increase sales to both the U.S. Federal Government and the enterprise, Ambassador Siegel is the right person to guide Viscount into its next phase of growth." In addition to the success of several business ventures, Ambassador Siegel has a deep-rooted background in politics and government. As U. S. Ambassador of the Commonwealth of the Bahamas, he used his expertise and business experiences to oversee all operations of the U.S. Embassy - Nassau. Prior to his Ambassadorship, Ambassador Siegel was honored by two additional Presidential appointments. In 2006, he was appointed by President Bush to serve at the United Nations in New York as the Senior Advisor to the U.S. Mission and as the United States Representative to the 61st Session of the United Nations General Assembly. From 2003 - 2007, he served on the Board of Directors of the Overseas Private Investment Corporation (OPIC), established in 1971 to help U.S. businesses invest overseas, fostering economic development in new and emerging markets. Preceding his government work, Ambassador Siegel founded the Siegel Group, an international business management advisory firm. Under his leadership, the Siegel Group focuses on helping clients grow and expand through private equity investments, strategic infrastructure projects and an extensive network of relationships. Ambassador Siegel began his career in law before co-founding the Weingarten-Siegel Group, a national residential building company headquartered in New Jersey, with offices in California and Florida. Ambassador Siegel managed the company's operations, development and marketing departments, growing it into one of the largest residential developers in the country. In addition to serving as Viscount's Chairman, Ambassador Siegel has held director positions on the boards of several consumer product, technology and real estate development companies. "Since joining Viscount's board in April, the company has taken important steps to drive sales and increase revenue," said Ambassador Siegel. "As I take on the role of Chairman, I look forward to continuing to build value and help Viscount solidify its niche at the intersection of the identity management, physical access control, network security and logical security verticals in the government and commercial sectors." 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$11.7 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. VISCOUNT SYSTEMS: Sells 37,655 Common Shares in Private Placement ----------------------------------------------------------------- Viscount Systems, Inc. disclosed in a document filed with the Securities and Exchange Commission that it completed a private placement of 37,655 shares of common stock at a price of C$0.08 per share for total proceeds of C$3,012. The Company also issued a total of 18,827 warrants, each warrant exercisable to acquire an additional share of the Company at an exercise price of C$0.16 per share for a period of five years from the closing date. The warrants may be exercised on a cashless basis. The securities were sold to accredited investors 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$11.7 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. VISION VENTURES: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Vision Ventures, LLC 1402 Norwood Hills Drive O Fallon, MO 63366 Case No.: 15-41629 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: March 11, 2015 Court: United States Bankruptcy Court Eastern District of Missouri (St. Louis) Judge: Hon. Charles E. Rendlen III Debtor's Counsel: Bryan C. Bacon, Esq. EVANS & DIXON, LLC 501 West Cherry Street, Suite 200 Columbia, MO 65201 Tel: 573-777-8823 Fax: 314-884-4541 Email: bbacon@evans-dixon.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Rodney Henry, manager. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. WAVE SYSTEMS: Reports $12.8 Million Net Loss for 2014 ----------------------------------------------------- Wave Systems Corp. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $12.9 million on $17.0 million of total net revenues for the year ended Dec. 31, 2014, compared to a net loss of $20.3 million on $24.4 million of total net revenues for the year ended Dec. 31, 2013. The Company also reported a net loss of $34.0 million in 2012. As of Dec. 31, 2014, Wave Systems had $8.03 million in total assets, $14.9 million in total liabilities and a $6.91 million total stockholders' deficit. KPMG LLP, in Hartford, Connecticut, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014. The independent auditors noted that Wave Systems Corp. has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available at: http://is.gd/Z9Fr2v About Wave Systems Lee, Massachusetts-based Wave Systems Corp. (NASDAQ: WAVX) -- http://www.wave.com/-- develops, produces and markets products for hardware-based digital security, including security applications and services that are complementary to and work with the specifications of the Trusted Computing Group, an industry standards organization comprised of computer and device manufacturers, software vendors and other computing products manufacturers. WELLNESS CENTER: Insufficient Revenue Raises Going Concern Doubt ---------------------------------------------------------------- Wellness Center USA, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $423,000 on $103,300 of total revenue for the three months ended Dec. 31, 2014, compared with a net loss of $539,000 on $2,360 of total revenue for the same period in the prior year. The Company's balance sheet at Dec. 31, 2014, showed $6.23 million in total assets, $1.43 million in total liabilities, and total stockholders' equity of $4.8 million. The Company had an accumulated deficit at Dec. 31, 2014, a net loss and net cash used in operating activities for the reporting period then ended. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company is attempting to further implement its business plan and generate sufficient revenue; however, the Company's cash position may not be sufficient to support its daily operations. While the Company believes in the viability of its strategy to further implement its business plan and generate sufficient revenue and in its ability to raise additional funds by way of a public or private offering, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon its ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. A copy of the Form 10-Q is available at http://is.gd/bKeXMj Wellness Center USA, Inc., is engaged in the development of http://www.aminofactory.com/, an online store for customized vitamins and other nutritional supplements to the sports industry and health-minded public. Through the years, the Company has expanded its business with the acquisition of CNS-Wellness LLC (CNS), Psoria-Shield Inc. (PSI), National Pain Centers, Inc. and certain assets of SMI Holdings, Inc. XZERES CORP: Copy of Presentation to Interested Parties ------------------------------------------------------- Beginning March 10, 2015, Xzeres Corp. will make available to interested parties a slide show presentation relating to the Company's business, a copy of which is available at: http://is.gd/9ivq1J About XZERES Corp. Headquartered in Wilsonville, Oregon, XZERES Corp. designs, develops, and markets distributed generation, wind power systems for the small wind (2.5kW-100kW) market as well as power management solutions. XZERES reported a net loss of $9.49 million for the year ended Feb. 28, 2014, as compared with a net loss of $7.59 million for the year ended Feb. 28, 2013. As of Nov. 30, 2014, the Company had $9.82 million in assets, $18.2 million in liabilities and a $8.37 million stockholders' deficit. Silberstein Ungar, PLLC, in Bingham Farms, Michigan, issued a "going concern" qualification on the consolidated financial statements for the year ended Feb. 28, 2014. The independent auditors noted that the Company has incurred losses from operations, has negative working capital, and is in need of additional capital to grow its operations so that it can become profitable. These factors raise substantial doubt about the Company's ability to continue as a going concern. ZOGENIX INC: Reports $20.5 Million Net Loss for Fourth Quarter -------------------------------------------------------------- Zogenix, Inc., reported a net loss of $20.52 million on $14.9 million of total revenue for the three months ended Dec. 31, 2014, compared to a net loss of $35.6 million on $9.92 million of total revenue for the same period in 2013. For the 12 months ended Dec. 31, 2014, the Company reported net income of $8.58 million on $40.53 million of total revenue compared to a net loss of $80.85 million on $33.01 million of total revenue in 2013. As of Dec. 31, 2014, Zogenix Inc. had $202.8 million in total assets, $148 million in total liabilities and $55.3 million in stockholders' equity. Cash and cash equivalents as of Dec. 31, 2014, were $42.2 million. Additionally, restricted cash was $8.5 million as of Dec. 31, 2014, consisting of the portion of proceeds from the sale of the SUMAVEL DosePro business to Endo required to be held in escrow until May 2015. On Dec. 30, 2014, the Company secured $20 million in term loans and $4 million in revolving line commitments for working capital and general business purposes. Roger Hawley, chief executive officer of Zogenix, stated, "As we enter 2015, we are very excited about the prospects for our differentiated clinical pipeline featuring ZX008 and Relday. We are confident in our ability to execute on these development programs based on our proven success obtaining product approvals, including the recent approval of the new formulation of Zohydro ER with BeadTek. As a result of this recent approval, our discussions for Zohydro ER evolved into broader strategic interest in the brand, which led to the sale of the Zohydro ER business to Pernix announced today in a separate press release." A full-text copy of the press release is available for free at: http://is.gd/CL0R1u About Zogenix Inc. Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. Ernst & Young LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's recurring losses from operations and lack of sufficient working capital raise substantial doubt about its ability to continue as a going concern. [^] BOOK REVIEW: Oil Business in Latin America: The Early Years --------------------------------------------------------------- Author: John D. Wirth Ed. Publisher: Beard Books Softcover: 282 pages List price: $34.95 Review by Gail Owens Hoelscher Buy a copy for yourself and one for a colleague on-line at http://is.gd/DvFouR This book grew out of a 1981 meeting of the American Historical Society. It highlights the origin and evolution of the state- owned petroleum companies in Argentina, Mexico, Brazil, and Venezuela. Argentina was the first country ever to nationalize its petroleum industry, and soon it was the norm worldwide, with the notable exception of the United States. John Wirth calls this phenomenon "perhaps in our century the oldest and most celebrated of confrontations between powerful private entities and the state." The book consists of five case studies and a conclusion, as follows: * Jersey Standard and the Politics of Latin American Oil Production, 1911-30 (Jonathan C. Brown) * YPF: The Formative Years of Latin America's Pioneer State Oil Company, 1922-39 (Carl E. Solberg) * Setting the Brazilian Agenda, 1936-39 (John Wirth) * Pemex: The Trajectory of National Oil Policy (Esperanza Duran) * The Politics of Energy in Venezuela (Edwin Lieuwen) * The State Companies: A Public Policy Perspective (Alfred H. Saulniers) The authors assess the conditions at the time they were writing, and relate them back to the critical formative years for each of the companies under review. They also examine the four interconnecting roles of a state-run oil industry and distinguish them from those of a private company. First, is the entrepreneurial role of control, management, and exploitation of a nation's oil resources. Second, is production for the private industrial sector at attractive prices. Third, is the integration of plans for military, financial, and development programs into the overall industrial policy planning process. Finally, in some countries is the promotion of social development by subsidizing energy for consumers and by promoting the government's ideas of social and labor policy and labor relations. The author's approach is "conceptual and policy oriented rather than narrative," but they provide a fascinating look at the politics and development of the region. Mr. Brown provides a concise history of the early years of the Standard Oil group and the effects of its 1911 dissolution on its Latin American operations, as well as power struggles with competitors and governments that eventually nationalized most of its activities. Mr. Solberg covers the many years of internal conflict over oil policy in Argentina and YPF's lack of monopoly control over all sectors of the oil industry. Mr. Wirth describes the politics and individuals behind the privatization of Brazil's oil industry leading to the creation of Petrobras in 1953. Mr. Duran notes the wrangling between provinces and central government in the evolution of Pemex, and in other Latin American countries. Mr. Lieuwin discusses the mixed blessing that oil has proven for Venezuela., creating a lopsided economy dependent on the ups and downs of international markets. Mr. Saunders concludes that many of the then-current problems of the state oil companies were rooted in their early and checkered histories." Indeed, he says, "the problems of the past have endured not because the public petroleum companies behaved like the public enterprises they are; they have endured because governments, as public owners, have abdicated their responsibilities to the companies." Jonh D. Wirth is Gildred Professor of Latin American Studies at Standford University. ********* 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. 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 nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. 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 2015. 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 ***