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/raid1/www/Hosts/bankrupt/TCR_Public/150402.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, April 2, 2015, Vol. 19, No. 92 Headlines ADAMIS PHARMACEUTICALS: Gets Complete Response Letter From FDA AES CORP: Fitch Assigns 'BB' Rating on $575MM Sr. Notes AGFEED INDUSTRIES: Must Pay $2.8-Mil. Claim Despite Hormel Suit ALLY FINANCIAL: Inks Underwriting Agreement with Barclays, Et Al. AMAZING ENERGY: Reports $271K Net Loss for Q2 Ended Jan. 31 AMERIGAS PARTNERS: Fitch Affirms 'BB' IDR; Outlook Stable ANESTHESIA HEALTHCARE: Wants April 9 Fixed as Admin Claims Bar Date ANTIOCH CO: McDermott Fights Stay in Row ARAMID ENTERTAINMENT: Wants Until July 17 to Propose Plan ATLANTIC CITY, NJ: Governor Extends Terms of $40-Mil. Loan ATLAS ENERGY: S&P Withdraws 'B' Corp. Credit Rating B. ENDEAVOUR: UK Administration Recognized as Main Proceedings BERNARD L. MADOFF: Meridian Ditches Claims in Feeder Fund Suit BLUE CALYPSO: Marcum LLP Expresses Going Concern Doubt BOREAL WATER: Hikes Authorized Common Shares to 5 Billion BOREAL WATER: Posts $885,000 Net Loss in 2014 BREITBURN ENERGY: S&P Affirms 'B+' CCR, Off Watch Negative BROADVIEW NETWORKS: Reports $9.22 Million Net Loss in 2014 BROCK HOLDINGS III: S&P Lowers CCR to 'B-', Outlook Stable BROWNIE'S MARINE: Posts $94,000 Net Income in 2014 BUDD COMPANY: Has Until July 31 to File Chapter 11 Plan CAESARS ENTERTAINMENT: Battles $462-Mil. Pension Withdrawal Claim CAESARS ENTERTAINMENT: Judge to Weigh Shielding Parent from Suits CAESARS ENTERTAINMENT: Said Close to Accord with Top Lenders CERIDIAN HCM: S&P Assigns 'B-' Corp. Credit Rating CHARTER COMMUNICATIONS: S&P Puts 'BB-' CCR on Watch Positive CHINA MEDICAL: Paul Weiss Rips Liquidator Push for Privileged Docs CHRYSLER GROUP: Defective Brake Suit Moved to Bankr. Court CITIZENS FINANCIAL: Fitch Rates $250MM Preferred Stock 'BB-' COMMERCIAL BARGE: S&P Revises Outlook to Pos. & Affirms 'B-' CCR COMMUNICATION INTELLIGENCE: Completes $1.2-Mil. Funding Round CRYOPORT INC: Amends Certain Rights of Class A Preferred Stock CYCLONE POWER: Delays 2014 Form 10-K for Review DEB STORES: Gets Nod to Sell IP in $2.2-Mil. Deal DELRAY HOLDING: NJ Court Axes Investors Suing Individually DENDREON CORP: Court Okays Skadden Arps as Bankruptcy Counsel DENDREON CORP: Lazard Freres Approved as Investment Banker DENDREON CORP: Prime Clerk Okayed as Administrative Advisor DENDREON CORP: Selects AlixPartners as Restructuring Advisors DOLAN COMPANY: Court Enters Final Decree Closing Cases DORAL FINANCIAL: Eyeing Puerto Rico Gov't for Ch. 11 Recoveries ECOSPHERE TECHNOLOGIES: Brisben Reports 21.8% Stake as of March 20 EDELMIRO TOLEDO-CARDONA: Mortgage Row Has Court Rethinking Ruling EGPI FIRECREEK: Directors and Officers Named ELBIT IMAGING: Posts NIS 784 Million Profit in 2014 ENDEAVOUR INT'L: Lenders Want $440-Mil. Lien Probe Halted FAIRFIELD SENTRY: Baupost Pushes for OK on Madoff Claim FIRSTPAY INC: Trustee Takes $28-Mil. Tax Row to High Court FL 6801: Soothes Condo Owners' Chap. 11 Complaints FLINTKOTE CO: Plan Confirmation Hearing Scheduled for August 10 FUNDAMENTAL LONG TERM: Trustee Says Firm Can't Escape Bankr. Suit FUSION TELECOMMUNICATIONS: Reports $4.3 Million Net Loss in 2014 GETTY PETROLEUM: Reaches $170-Mil. Claim Deal with REIT GOURMET EXPRESS: Seeks Approval of $650,000 Loan GREAT PLAINS: April 9 Hearing on Sixth Amended Plan GREAT PLAINS: Trustee Taps Cincinnati Industrial as Auctioneer GRIDWAY ENERGY: Looks to Chap. 7 as Funds Dry Up GUIDED THERAPEUTICS: Reports $3.2 Million Net Loss in 4th Quarter HCAC WEST: Case Summary & 10 Largest Unsecured Creditors HCSB FINANCIAL: Incurs $1.4 Million Net Loss in 2014 HEALTHWAREHOUSE.COM INC: Posts $2.1 Million Net Loss in 2014 HERCULES OFFSHORE: Fails to Comply with NASDAQ Bid Price Rule HEXION INC: S&P Assigns 'CCC+' Rating to $315MM Sr. Secured Notes HORIZON VILLAGE: Nigro HQ Plan Confirmation Hearing April 27 HORIZON VILLAGE: To Seek Confirmation of Amended Plan April 28 HORIZON VILLAGE: Wells Fargo Asks for Valuation of Claim HUTCHESON MEDICAL: Has Until May 20 to File Chapter 11 Plan INERGETICS INC: Needs More Time to File Form 10-K INT'L MANUFACTURING: Consolidation of RelyAid & DBS Air Sought INTELLIPHARMACEUTICS INT'L: Positive Results From Clinical Trials INTERMETRO COMMUNICATIONS: Suspending Filing of Reports with SEC INTL MANUFACTURING GROUP: Trustee Wants FFWP Reaffirmed as Counsel ISC8 INC: Completes Sale, Needs Until April 22 to File Plan J&G HOSPITALITY: Case Summary & 5 Largest Unsecured Creditors LIANA MALLO: Justices Asked to Eye Late Tax Returns' Bankr. Status LIFE PARTNERS: Trustee Wants Operating Unit in Chapter 11 LIGHTSQUARED INC: Former Chairman Appeals Plan Confirmation Order LIGHTSQUARED INC: NY Court Dismisses Harbinger Investor Suit LIME ENERGY: Acquires EnerPath for $11 Million LIME ENERGY: Approves $152,000 2014 Bonuses for CEO and CFO LOOKSMART LTD: Albert Wong Expresses Going Concern Doubt M & D CONSTRUCTION: Case Summary & 6 Top Unsecured Creditors MENDOCINO COAST: Wins Confirmation of Plan of Adjustment MIDWEST ENERGY: Schneider Expresses Going Concern Doubt MISSISSIPPI PHOSPHATES: Can Hire DTBA for eDiscovery Services MORTGAGE FUND '08: In Pari Delicto Appeal Brewing in Ninth Circuit MURRAY ENERGY: Moody's Hikes CFR to B2 & Term Loan Rating to Ba3 NAVISTAR INT'L: S&P Revises Outlook & Affirms 'CCC+' CCR NII HOLDINGS: KPMG Expresses Going Concern Doubt OAS GROUP: Files Judicial Recovery Application for Nine Companies ONE FOR THE MONEY: April 28 Fixed as Claims Bar Date OPEN RANGE: USDA Slips Subcontractor's $10MM Payment Claim ORCKIT COMMUNICATIONS: Liquidator Needs One Year to Complete Plan ORCKIT COMMUNICATIONS: Settles Delaware Investment Lawsuit OTERIA MOSES: 233% "Tribal Loan" Found Illegal by Fourth Circuit OWENS-BROCKWAY GLASS: S&P Cuts Sr. Unsecured Notes Rating to 'BB' PENN PRODUCTS: S&P Retains 'BB-' ICR Over Upsized Debt PORTER BANCORP: Posts $11 Million Net Loss in 2014 POSITVEID CORP: Incurs $8.22 Million Net Loss in 2014 PRINCIPAL SOLAR: Whitley Penn Expresses Going Concern Doubt RADIOSHACK CORP: Judge Approves Sale to Standard General REALBIZ MEDIA: Incurs $1.67-Mil. Net Loss for Q1 Ended Jan. 31 REED AND BARTON: Auction Set for April 28 RICCO INC: Bankr. Trustee Wins Conversion of Case to Chapter 7 SAMSON RESOURCES: May File for Chapter 11 Bankruptcy SAMUEL WYLY: Cries Foul Over $300-Mil. SEC Judgment SAN GOLD: Incurs $16.4-Mil. Loss in Fourth Quarter 2014 SCIENTIFIC GAMES: Park West Asset Owns 6.6% of Class A Shares SCRUB ISLAND: Court Approves $40-Mil. with Lender SEAN DUNNE: Wife Sued by Bankruptcy Trustee SIGNATURE APPAREL: Mixed Judgments in Reality TV Star's $15M Row SKYMALL LLC: SEC Fights Assets Sale, Citing Investigation SKYMALL LLC: Website, Other Assets Go for $1.9-Mil. at Auction SOUTHERN FAMILY: Insurance Head Released from Testifying SPECTRASCIENCE INC: HJ Expresses Going Concern Doubt SPYR INC: Reports $2.19 Million Net Income in 2014 STEREOTAXIS INC: Extends Silicon Valley Credit Facility by 3 Years SUNSHINE HEART: Ernst & Young Expresses Going Concern Doubt SUNTECH AMERICA: Reaches Ch. 15 Antitrust Deal with Solyndra Trust TELEXFREE LLC: Scheme Took in $1-Bil. from 1.9M Investors TOWERGATE FINANCE: Wins U.S. Court Protection TRANSGENOMIC INC: Needs More Time to File Form 10-K TRILOGY DEVELOPMENT: 7th Circ. Denies Lender Coverage for Liens TRUMP ENTERTAINMENT: $10-Mil. FinCEN Deal Moves Forward TRUMP ENTERTAINMENT: Donald Trump Thinks Resorts Too Slow on Lease US FT HOLDCO: S&P Puts 'B' CCR on CreditWatch Positive VALLEY BEEF: Can't Use Trademarks, Argues St. Louis Chain WBPB CORP: Case Summary & 18 Largest Unsecured Creditors WCI COMMUNITIES: Insurer Says Firm Not Covered in Contempt Suit WHITTEN FOUNDATION: Case Summary & 20 Top Unsecured Creditors WHITTEN FOUNDATION: Louisiana Apartments Owner in Chapter 11 WHITTEN FOUNDATION: Proposes Gerald Casey as Counsel WHITTEN FOUNDATION: Proposes to Use Cash Collateral WINDSOR PETROLEUM: Court Enters Final Decree Closing Cases ZION OIL: MaloneBailey LLP Raises Going Concern Doubt [*] Arch Riley Joins Bernstein-Burkley's West Va. Office as Partner [*] Energy, Resources Will See Most Turnaround Activity in 2015 [*] Junk Cities Across U.S. Earn Ratings Revival [*] New Bankruptcy Filings Fell Sharply in 2014 [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* ADAMIS PHARMACEUTICALS: Gets Complete Response Letter From FDA -------------------------------------------------------------- Adamis Pharmaceuticals Corporation received a Complete Response Letter from the U.S. Food and Drug Administration regarding its New Drug Application Epinephrine Injection USP 1:1000 0.3mg Pre-filled Single Dose Syringe product, for the emergency treatment of acute anaphylaxis, which is a severe allergic reaction. On May 28, 2014, Adamis submitted an NDA to the FDA pursuant to Section 505(b)(2) of the Food, Drug & Cosmetic Act, as amended, for approval of the Epinephrine PFS product. A CRL is issued by the FDA's Center for Drug Evaluation and Research when it has completed its review of a file and questions remain that preclude the approval of the NDA in its current form. The questions raised by the FDA pertain only to Chemistry, Manufacturing and Controls relating to the volume of dose delivered by the syringe, including our ability to deliver volume within the levels contained in the labeling claim and as required by the FDA. No other safety or efficacy issues were raised, and the New Drug Application will remain open until the CMC issues are resolved. Dr. Dennis J. Carlo, president and CEO of Adamis, stated, "We are reviewing the CRL and plan to request a meeting with the FDA to discuss the letter, including clarifying the product delivery volume specifications. Although we expect to have more clarity with respect to timing, we believe we can satisfy all of the requests in the CRL and will work closely with the FDA to address the items raised in the CRL and finalize its review of our NDA. Adamis remains committed to bringing the epinephrine PFS to market." About Adamis San Diego, Calif.-based Adamis Pharmaceuticals Corporation (OTC QB: ADMP) is a biopharmaceutical company engaged in the development and commercialization of specialty pharmaceutical and biotechnology products in the therapeutic areas of respiratory disease, allergy, oncology and immunology. Mayer Hoffman McCann, P.C., in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the transition period ended Dec. 31, 2014, citing that the Company has incurred recurring losses from operations, and is dependent on additional financing to fund operations. The Company disclosed a net loss of $9.31 million on $0 of revenue for the nine months ended Dec. 31, 2014, compared to a net loss of $8.15 million on $0 of revenue for the 12 months ended March 31, 2014. As of Dec. 31, 2014, Adamis had $12.9 million in total assets, $3.39 million in total liabilities and $9.5 million in total stockholders' equity. Bankruptcy Warning "Our ability to obtain additional financing will be subject to a number of factors, including market conditions, our operating performance and investor sentiment. If we are unable to raise additional capital when required or on acceptable terms, we may have to significantly delay, scale back or discontinue the development or commercialization of one or more of our product candidates, restrict our operations or obtain funds by entering into agreements on unattractive terms, which would likely have a material adverse effect on our business, stock price and our relationships with third parties with whom we have business relationships, at least until additional funding is obtained. If we do not have sufficient funds to continue operations, we could be required to seek bankruptcy protection or other alternatives that would likely result in our stockholders losing some or all of their investment in us," the Company said in its annual report for the year ended Dec. 31, 2014. AES CORP: Fitch Assigns 'BB' Rating on $575MM Sr. Notes ------------------------------------------------------- Fitch Ratings has assigned a 'BB' rating to The AES Corporation's issuance of $575 million senior unsecured notes due in 2025. The Rating Outlook is Negative. The notes are senior unsecured obligations of AES and rank equally with all other unsecured obligations of the company. AES will use net proceeds from the notes to redeem up to $500 million of its outstanding senior unsecured notes, including 8.00% senior notes due in 2017 and 2020, and 7.375% senior notes due 2021. Fitch had revised the Rating Outlook for AES to Negative from Stable in December 2014 following the dilution of its ownership in IPALCO Enterprises, Inc. (IPALCO), which Fitch considered to be a credit supportive core holding. AES' sale of equivalent of a 30% economic interest in IPALCO reduced what Fitch Ratings had expected to be a growing source of high quality, predictable cash flow through additional equity investments into Indianapolis Power & Light Co. (IPL), a wholly-owned subsidiary of IPALCO. KEY RATING DRIVERS Deleveraging is Critical: Fitch will likely resolve the Negative Rating Outlook after reassessing AES' portfolio strategy, forecasted cash flow profile, and leverage targets. Fitch expects further reduction in parent company debt as AES lessens its reliance on U.S.-domiciled regulated businesses. Even though the annual dividends received by AES are from a diverse set of investments, distributions from domestic utilities, and contracted assets improve overall cash flow quality and support the current IDR. Fitch expects AES' adjusted parent-only cash flow (APOCF) based leverage to remain at or below 5.5x. Cash-flow Diversity Drives Credit Profile: AES owns a portfolio of electric utilities and power generating assets across five continents. Historically, its cash flow included distributions from over 50 projects in any given year. Investment diversity shields the company from the macro and micro economic environment adversity affecting a local domestic electricity sector. Additionally, growth through investment in contracted assets improves cash flow quality. Quality of Cash flow: Fitch expects at least 70% of AES' cash flow through 2016 will be from investments in operating utilities and contracted generation facilities. Distribution from utilities and contracted generating assets improve AES' overall cash flow quality as these businesses provide long-term cash flow visibility and predictability. The average remaining life of its power sale contracts is about seven years. Geopolitical Risks Affect Credit Profile: AES owns and operates electricity utility businesses in more than 18 countries that are subject to foreign exchange rate volatility and adverse global macro-economic conditions. In addition, governmental policy in these countries regarding electricity tariffs, sector growth, currency controls, and foreign direct investment also increase its business risk profile. These risks are reflected in AES' credit profile for its current IDR. High Counterparty Credit Risks: AES continuously faces high default risk in sub-investment grade countries, adversely affecting its subsidiary level cash flow. These risks are common in emerging economies where state finances and property rights are weak. Fitch's forecast is adjusted for these uncertainties and they are reflected in its IDR. Aggressive Shareholder Distribution Policy: In February 2015, AES' board of directors approved a new $400 million share repurchase program. In December 2014, AES' board increased quarterly dividends to $0.10 per share from $0.05 per share, with an expected annual growth rate of 10%. The new dividend policy became effective in the first quarter of 2015. Increase in shareholder friendly activities without an absolute reduction in leverage remains a rating concern. RATING ASSUMPTIONS -- Fitch adjusts parent level cash flows for sovereign and merchant risk. The cash flow reduction in expected distributions ranges between 2% and 6%. -- Corporate overheads are increased by 2% for 2015 and 2016. -- A 6% interest rate is used for new debt issuance through 2016. RATING SENSITIVITIES Positive Rating Action: Positive rating action for AES is unlikely at this time. Negative Rating Action: Future developments that may, individually or collectively, lead to negative rating action include: -- Inability to Reach Targeted Credit Metrics: A failure to achieve APOCF/interest higher than 2.5x and adjusted debt/APOCF of 5.5x or lower on a sustainable basis; -- Deterioration in Distribution Received: Any downward shift in the current distributions from its subsidiaries would adversely affect AES' ratings. Any increase in shareholder distributions without an absolute reduction in debt will also be a cause for the rating downgrade; -- Increase in Business Risk Profile: A change in strategy to invest in more speculative, non-contracted assets or fall in cash flow from contracted power generation assets. AGFEED INDUSTRIES: Must Pay $2.8-Mil. Claim Despite Hormel Suit --------------------------------------------------------------- Law360 reported that a Delaware bankruptcy judge allowed an AgFeed Industries Inc. creditor to collect on a $2.8 million claim against the hog producer, saying that AgFeed's bankruptcy trustee cannot delay payment based on the claim's potential reduction in a related lawsuit against Hormel Foods Corp. According to the report, U.S. Bankruptcy Judge Brendan L. Shannon ordered AgFeed's liquidating trustee to make immediate payment to Claims Recovery Group LLC, which bought the claim against AgFeed that was formerly held by the debtor's primary customer, Hormel. About AgFeed Industries AgFeed Industries, Inc., has 21 farms and five feed mills in China producing more than 250,000 hogs annually. In the U.S., the business included 10 sow farms in three states and two feed mills producing more than one million hogs a year. AgFeed's revenue in 2012 was $244 million. AgFeed and its affiliates filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on July 15, 2013, with a deal to sell most of its subsidiaries to The Maschhoffs, LLC, for cash proceeds of $79 million, absent higher and better offers. The Debtors estimated assets of at least $100 million and debts of at least $50 million. Keith A. Maib signed the petition as chief restructuring officer. Hon. Brendan Linehan Shannon presides over the case. Donald J. Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' counsel. BDA Advisors Inc. acts as the Debtors' financial advisor. The Debtors' claims and noticing agent is BMC Group, Inc. The U.S. Trustee has appointed a five-member official committee of unsecured creditors to the Chapter 11 cases. The Creditors' Committee tapped Lowenstein Sandler as lead bankruptcy counsel and Greenberg Traurig, LLP, as co-counsel. CohnReznick LLP serves as the Creditors' Committee's financial advisor. An official committee of equity security holders was also appointed to the Chapter 11 cases. The Equity Committee tapped Sugar Felsenthal Grais & Hammer LLP and Elliott Greenleaf as co-counsel. Jefferies Leveraged Credit Products and Claims Recovery Group are represented by Lawrence J. Kotler, Esq., and Catherine B. Heitzenrater, Esq., at Duane Morris, LLP. ALLY FINANCIAL: Inks Underwriting Agreement with Barclays, Et Al. ----------------------------------------------------------------- Ally Financial Inc., on March 25, 2015, entered into an Underwriting Agreement incorporating Ally's Underwriting Agreement Standard Provisions (Debt Securities) with Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC, as representatives of the several Underwriters named therein, pursuant to which Ally agreed to sell to the Underwriters $750,000,000 aggregate principal amount of 4.125% Senior Notes due 2020 and $500,000,000 aggregate principal amount of 4.625% Senior Notes due 2025. The Notes were registered pursuant to Ally's shelf registration statement on Form S-3, which became automatically effective on Dec. 24, 2013. The Underwriting Agreement contains customary representations, warranties and covenants of the Company, conditions to closing, indemnification obligations of the Company and the Underwriters, and termination and other customary provisions. The Notes will be issued pursuant to an Indenture dated as of as of July 1, 1982, as supplemented and amended by the first supplemental indenture dated as of April 1, 1986, the second supplemental indenture dated as of June 15, 1987, the third supplemental indenture dated as of September 30, 1996, the fourth supplemental indenture dated as of January 1, 1998, and the fifth supplemental indenture dated as of September 30, 1998, between the Company and The Bank of New York Mellon (successor to Morgan Guaranty Trust Company of New York), as trustee, and an action of the executive committee of Ally dated as of March 25, 2015. About Ally Financial Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/-- is one of the world's largest automotive financial services companies. The Company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3 percent stake. Private equity firm Cerberus Capital Management LP keeps 14.9 percent, while General Motors Co. owns 6.7 percent. * * * As reported by the TCR on Dec. 16, 2013, Standard & Poor's Ratings Services said it raised its issuer credit rating on Ally Financial Inc. to 'BB' from 'B+'. "The upgrade reflects the company's release from potential legal and financial liabilities stemming from its ownership of ResCap," said Standard & Poor's credit analyst Tom Connell. In the April 3, 2014, edition of the TCR, Fitch Ratings has upgraded Ally Financial Inc.'s long-term Issuer Default Rating (IDR) and senior unsecured debt rating to 'BB+' from 'BB'. The rating upgrade reflects increased clarity around Ally's ownership structure given Ally's recent announcement that it has launched an initial public offering those shares of its common stock held by the U.S. Treasury (the Treasury). As reported by the TCR on July 16, 2014, Moody's Investors Service affirmed the 'Ba3' corporate family and 'B1' senior unsecured ratings of Ally Financial, Inc. and revised the outlook for the ratings to positive from stable. Moody's affirmed Ally's ratings and revised its rating outlook to positive based on the company's progress toward sustained improvements in profitability and repayment of government assistance received during the financial crisis. AMAZING ENERGY: Reports $271K Net Loss for Q2 Ended Jan. 31 ----------------------------------------------------------- Amazing Energy Oil & Gas Company filed its quarterly report on Form 10-Q, disclosing a net loss of $271,000 on $221,000 of revenue for the three months ended Jan. 31, 2015, compared with a net loss of $328,000 on $121,000 of revenue for the same period last year. The Company's balance sheet at Jan. 31, 2015, showed $6.65 million in total assets, $4.14 million in total liabilities, and stockholders' equity of $2.51 million. At Jan. 31, 2015, the Company had not yet achieved profitable operations, has had accumulated losses since its inception and expects to incur further losses in the development of its business. These conditions raise substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/cy7ChD Amazing Energy Oil & Gas Company, formerly known as Gold Crest Mines, Inc., is in the business of exploration, development, and mining of properties containing mineral deposits. The focus of the Company's exploration programs is at precious metals, primarily gold. AMERIGAS PARTNERS: Fitch Affirms 'BB' IDR; Outlook Stable --------------------------------------------------------- Fitch Ratings has affirmed the 'BB' Issuer Default Rating (IDR) and 'BB' senior unsecured debt rating of AmeriGas Partners, LP (APU) and its fully guaranteed financing co-borrower AmeriGas Finance Corp. Approximately $2.3 billion in outstanding long-term debt is affected. Fitch has also assigned a 'RR3' recovery rating to APU's senior unsecured notes reflecting expectations for average recoveries in a distressed scenario. The Rating Outlook is Stable. APU's ratings reflect the underlying strength of its retail propane distribution network, broad geographic reach, adequate credit metrics, and proven ability to manage unit margins under various operating conditions. APU's financial performance remains sensitive to weather conditions and general customer conservation, and the company must continue to manage volatile supply costs and customer conservation. Fitch has largely viewed the retail propane sector business outlook to be moderately negative, stressing concerns over demand destruction due to fuel switching, price volatility and the impact of conservation. However, Fitch believes that APU management has exhibited its ability and intent to maintain a stable balance sheet and consistent credit metrics even in the face of varying market conditions and growth through acquisitions. APU has proven itself adept at managing its operating costs, distribution policies, and integrating acquisitions. As a result, APU has seen steady EBITDA growth, cash flow consistency and improved credit metrics over the past several years despite elevated sales volume and commodity price volatility. KEY RATINGS DRIVERS Scale of Business: APU is the largest retail propane distributor in the country, providing it with significant customer and geographic diversity. This broad scale and diversity helps to dampen the weather related volatility of cash flows. APU is the largest retail propane distributor in the United States with an estimated 15% market share serving approximately 2 million customers. AmeriGas has approximately 2,000 locations in all 50 states. Approximately 41% of retail gallons sold is for residential use, largely heating. Retail gallon sales are fairly evenly distributed by geography limiting the impact that unseasonably warm weather could have on a regional basis. High Degree of Seasonality: APU is highly seasonal and dependent on the winter heating season. Approximately 75% of earnings are derived in the first two quarters of each fiscal year (September fiscal yearend). With the first quarter 2015 (1Q'15) already posted and 2Q'15 near a close with slightly warmer than normal weather, Fitch projects 2015 results to be within the company's previously projected ranges of $635 million to $665 million. 1Q'15 adjusted EBITDA was roughly 18% lower on a year over year basis due largely to weather which was 6.2% warmer than normal and 10% warmer than 1Q'14. APU's cylinder exchange business affords some seasonal diversity and national accounts are steady year round. The seasonal factors are embedded in Fitch's analysis and ratings. Adequate Liquidity: Liquidity is adequate and maturities are manageable. APU's liquidity is supported by a $525 million revolving credit facility which is typically used to fund any short-term borrowing needs. APU's short-term borrowing needs are seasonal and are typically greatest during the fall and winter heating-season months due to the need to fund higher levels of working capital. Availability under the revolver at Dec. 31, 2014 was $207 million. Debt maturities through 2018 total $35 million. Fitch does not expect APU to require any external financing and leverage should remain fairly constant between 3.5x and 4.0x (debt/EBITDA). A large strategic acquisition would likely require additional debt but this is not in the Fitch forecasts. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: -- Maintenance capital consistent with recent historical results. --Acquisitions of roughly 10 million to 20 million gallons annually. -- Distribution growth of between 3% to 5% annually. -- Weather at or near normal for 2016-2018. RATINGS SENSITIVITIES Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- If leverage (debt/EBITDA) were to improve to between 3.0x to 3.5x on a sustained basis and distribution coverage were to remain 1.1x on a sustained basis, Fitch would consider a positive ratings action. Negative: Future developments that may, individually or collectively, lead to a negative rating action include: -- Leverage above 4.5x on a sustained basis, with distribution coverage below 1.0x would likely lead to a rating downgrade. -- Accelerating deterioration in customer, margin and or volume trends could lead to a negative ratings action. Fitch has taken these rating actions on AmeriGas: AmeriGas Partners, L.P./AmeriGas Finance Corp. -- IDR affirmed at 'BB'; -- Senior unsecured debt affirmed at 'BB' and assigned an 'RR3' recovery rating to these notes. The Rating Outlook is Stable. ANESTHESIA HEALTHCARE: Wants April 9 Fixed as Admin Claims Bar Date ------------------------------------------------------------------- Anesthesia Healthcare Partners, Inc., et al., ask the Bankruptcy Court to enter an order fixing April 9, 2015, as the last date for the filing of administrative expense claims. The term "administrative expense claim" means a claim for payment of an administrative expense of a kind specified in Section 503(b) of the Bankruptcy Code (with the exception of 503(b)(9) claims) and referred to in Section 507(a)(1) of the Bankruptcy Code. The Debtors' counsel, Theodore N. Stapleton, Esq., of Theodore N. Stapleton, P.C., explained that the Debtors need to review and evaluate all administrative expense claims in order to ensure full payment of same prior to the anticipated voluntary dismissal of the case. Furthermore, the Debtors desire a procedure that will expedite the payment of administrative expense claims, and the fixing of a bar date will provide a mechanism by which such claims may be submitted and evaluated. A hearing was held on March 5, 2015, on the U.S. Trustee's Motion to Dismiss, which has been continued to April 9, 2015, to allow Dr. Suzanne Turner and her counsel to gather information relative to dismissal versus conversion of the chapter 11 cases. At the March 5 hearing, a question was raised as to whether Dr. Turner or any other creditors of the estate had been omitted from the list of creditors and interested parties receiving notices in the case. The Debtors' counsel certifies that all creditors were accurately listed on the mailing matrix in the cases including Dr. Turner and no further notice is necessary. In order to determine the allowance of any administrative claims, the Debtors believe it is appropriate that the Court enter an order fixing the date for the submission of administrative expense claims. About Anesthesia Healthcare Anesthesia Healthcare Partners, Inc. and its affiliates filed Chapter 11 petitions (Bankr. N.D. Ga. Case No. 14-59631) in Atlanta on May 15, 2014. The cases are assigned to Judge Wendy L. Hagenau. The Debtors tapped Theodore N. Stapleton, Esq., at Theodore N. Stapleton, P.C., in Atlanta, as counsel. The Debtors also engaged Carl Marks Advisory Group, Inc., to provide the services of F. Duffield Meyercord as Chief Restructuring Officer Sean Lynch of Suwannee, Georgia, the CEO of the company, owns 100% of the common stock. In its schedules, Anesthesia Healthcare listed $19,632,440 in total assets and $11,827,716 in total liabilities. ANTIOCH CO: McDermott Fights Stay in Row ---------------------------------------- Law360 reported that McDermott Will & Emery LLP urged an Ohio federal judge to lift the stay of a suit claiming it didn’t advise now-bankrupt Antioch Co. LLC to sue its directors after an employee stock ownership plan takeover, saying the Sixth Circuit won't rule on a motion in the underlying bankruptcy for months. According to the report, the firm said the court stayed the malpractice action, which claimed the firm didn't properly provide legal advice to the scrapbooking company over a stock deal. The case is Antioch Litigation Trust, W. Timothy Miller, Trustee v. McDermott Will & Emery LLP et al., Case No. 3:09-cv-00218 (S.D. Ohio). About The Antioch Company St. Cloud, Minn.-based scrapbook company The Antioch Company and six affiliates filed for Chapter 11 bankruptcy (Bankr. D. Minn. Case No. 13-41898) in Minneapolis on April 16, 2013. Antioch disclosed $10 million to $50 million in both assets and debts. The affiliates that separate filed for Chapter 11 are Antioch International-Canada LLC, Antioch International LLC, zeBlooms LLC, Antioch Framers Supply LLC, Antioch International-New Zealand LLC, and Creative Memories Puerto Rico, LLC. Founded in 1926, Antioch and its affiliates make up one of the world's preeminent suppliers of scrapbooks, related accessories, and photo solutions for memory preservation through the direct sales channel. The Debtors also go by business names Creative Memories, Antioch, Agenda, Antioch Publishing, Cottage Arts, Frame of Mind and Webway. Antioch has 200 employees and currently has operations through the Debtor companies and foreign subsidiaries in the United States, Canada, Japan, Australia, and New Zealand. In 2012, the Company's net revenue was approximately $93.8 million and it had a net loss of $3.7 million. Antioch previously sought bankruptcy protection in 2008 (Bankr. S.D. Ohio Case No. 08-35741). In the 2013 case, the U.S. Trustee appointed a seven-member creditors committee. Faegre Baker Daniels LLP serves as its counsel. Crowe Horwath LLP serves as its financial advisor. The Antioch Company, et al., and the Official Committee of Unsecured Creditors, obtained confirmation on Nov. 14, 2013, of their Second Amended Joint Plan of Reorganization dated Nov. 13, 2013. ARAMID ENTERTAINMENT: Wants Until July 17 to Propose Plan --------------------------------------------------------- Aramid Entertainment Fund Limited, et al., filed a third motion, asking the U.S. Bankruptcy Court for the Southern District of New York to extend (a) through and including July 17, 2015, their exclusive period to propose a Chapter 11 plan, and (b) through and including Sept. 28, 2015, their exclusive period to solicit acceptances of the Plan. A hearing on the request is slated for April 16, 2015 at 11:00 a.m. (Eastern). Objections are due April 9, 2015. James C. McCarroll, Esq., at Reed Smith LLP, avers that "cause" exists for an extension. Mr. McCarroll explains that the Debtors have continued to move forward to consummate the settlement agreement, which resolves the disputes between the Debtors and parties related to David Molner, on one hand, and David Bergstein, and parties related to Mr. Bergstein, on the other hand. Since the Settlement Agreement was approved, the Debtors also have begun working on a plan and disclosure statement, Mr. McCarroll reveals. The exact terms of the plan and disclosure statement, however, are not yet determined because they are dependent on the success of the parties' efforts to dismiss the so-called "LA Bankruptcy Litigation" and the "LA Bankruptcy Cases." During the last 90 days, Reed Smith has been engaged in briefing on motion to dismiss the LA Bankruptcy Cases, briefing and opposing a motion to withdraw standing from Screen Capital International Copr., briefing and opposing a motion to compel Bergstein to file schedules, and briefing regarding the CA trustee's conflict, and monitoring of all the LA Bankruptcy Court Litigations (state, federal, and appellate). The hearing to dismiss the LA Bankruptcy Court Litigations and the LA Bankruptcy Cases and the hearing to revoke SCIC's stating are scheduled currently for April 28. The Debtors are analyzing potential sources of recovery in connection with their prepetition events or activities. The Debtors also have been working on a transaction to sell their interests in certain loans to Incentive Filmed Entertainment, LLC. By an order entered on Jan. 15, 2015, the Court approved a transaction to which AEF would compromise its $41 million undersecured claim against IFE and release its liens on IFE's assets in exchange for at least $3.176 million. As a result of further purchase price adjustments and the refusal of other members of Sierra Pictures, LLC, to approve the sale of IFE's 20 percent interest in Sierra, the nature of the transaction and the proceeds available to IFE have changed. The Debtors have continued to negotiate the structure of one or more transactions in an effort to reap some value from Aramid's loans to IFE. The Debtors expect to submit in the near future a motion to approve one or more transactions relating to a sale or compromise of AEF's loans to IFE. About Aramid Entertainment Aramid Entertainment Fund Limited has been engaged in the business of providing short and medium term liquidity to producers and distributors of film, television and other media and entertainment content by way of loans and equity investments. On May 7, 2014, Geoffrey Varga and Jess Shakespeare of Kinetic Partners (Cayman) Limited were appointed under Cayman law as the joint voluntary liquidators ("JVLs") of AEF and two affiliates. On June 13, 2014, the JVLs authorized AEF and two affiliates to file for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-11802) in Manhattan on June 13, 2014. The Debtors have tapped James C. McCarroll, Esq., Jordan W. Siev, Esq., Richard A. Robinson, Esq., and Michael J. Venditto, Esq. of Reed Smith, LLP, in New York, as counsel and Kinetic Partners (Cayman) Limited as crisis managers. AEF estimated at least $100 million in assets and between $10 million to $50 million in liabilities. ATLANTIC CITY, NJ: Governor Extends Terms of $40-Mil. Loan ---------------------------------------------------------- New Jersey Governor Chris Christie has extended the terms of a $40 million loan agreement with Atlantic City from end of March to end of June, various news sources reported. Law360 reported that the loan extension helps the city maintain operations in light of a $101 million budget deficit. Romy Varghese, writing for Bloomberg News, reported that the struggling gambling resort got the 0.75 percent loan in December instead of selling debt in the capital markets amid pending legislation to help the city, and bankruptcies of casino owners Trump Entertainment Resorts Inc. and Revel AC Inc. New Jersey Senate President Steve Sweeney previously criticized Gov. Christie's administration Thursday for an alleged failure to stabilize finances in Atlantic City and throughout the state, after seven municipalities with a combined $1.1 billion in outstanding debt were put under review for possible credit downgrades, Law360. In a news release, Sen. Sweeney, D-Gloucester, condemned the governor for stirring up a sense of panic by appointing a debt-management team for Atlantic City and accused the governor of undertaking actions that "undermine the financial health of other municipalities in New Jersey," the Law360 report related. * * * The Troubled Company Reporter, on Jan. 23, 2015, citing the Associated Press reported that New Jersey Gov. Chris Christie named an emergency manager for Atlantic City, leaving the door open for the seaside gambling resort to file for bankruptcy if it can't get its finances under control. The Republican governor and likely presidential candidate appointed a corporate turnaround specialist as the city's emergency manager, and tabbed the man who led Detroit through its municipal bankruptcy as his assistant, the AP said. On Jan. 29, the TCR reported that Standard & Poor's Ratings Services has lowered its general obligation rating on Atlantic City, N.J., four notches to 'BB' from 'BBB+' and placed it on CreditWatch with negative implications. The day before, the TCR reported that Moody's Investors Service has downgraded Atlantic City's GO debt to Caa1 with a negative outlook from Ba1, and on Jan. 27, the TCR said Moody's has downgraded Atlantic City Municipal Utilities Authority's (NJ) water revenue debt to B2 from Ba1, and assigned a negative outlook. ATLAS ENERGY: S&P Withdraws 'B' Corp. Credit Rating --------------------------------------------------- Standard & Poor's Ratings Services said that it is withdrawing its 'B' corporate credit rating on Atlas Energy L.P. The withdrawal is in accordance with Standard & Poor's policy on acquired entities. RATINGS LIST Rating Withdrawn To From Atlas Energy L.P. Corporate credit rating NR/--/-- B/Watch Dev/-- B. ENDEAVOUR: UK Administration Recognized as Main Proceedings -------------------------------------------------------------- Judge Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York entered an order recognizing the administration proceedings of B. Endeavour Shipping Company in the United Kingdom as "foreign main proceeding." As a result, creditor actions against B. Endeavour Shipping and its property in the U.S. are permanently halted. According to the order, the administration or realization of the Debtor's assets within the territorial jurisdiction of the United States is entrusted to Peter Kubik and Andrew Andronikou of UHY Hacker Young LLP, as the duly authorized Joint Administrators, and the Joint Administrators are established as the exclusive representatives of the Debtor in the United States. A copy of the Recognition Order is available for free at: http://bankrupt.com/misc/B_Endeavour_US_Recog.pdf About B. Endeavour B. Endeavour Shipping Company is a company incorporated in Cyprus whose sole asset is a 62,000 deadweight tonnage Panamax Tanker named "Ice Base," valued at approximately $28.1 million. Ice Base transports liquid natural gas and oil and operates principally in the territorial waters of the United States, including New York harbor. B. Endeavour is a unit of Baltic Tankers Holding Ltd., which owns five other Cyprus companies, each of which owns a 37,000 DWT product carrier that operates principally in the waters of Europe and the Baltic area. Baltic Tankers is owned by Northsea Base Investment (NSBI). Hamilton Corporation, NSBI's sole shareholder, is owned by certain family trusts. Marine Cross Services Limited, a London-based shipping agent, handles day-to-day financial administration and management. On Jan. 15, 2015, B. Endeavour and its five affiliates were placed into administration in London, England after defaulting on debt to BNP Paribas S.A. Peter Kubik and Andrew Andronikou of UHY Hacker Young LLP, were appointed joint administrators. Felicity Toube QC serves as counsel. The joint administrators on Feb. 3, 2015, filed a Chapter 15 bankruptcy petition (Bankr. S.D.N.Y. Case No. 15-10246) for B. Endeavour in Manhattan, in New York, to seek U.S. recognition of the UK proceeding. Judge Robert E. Gerber presides over the case. Geoffrey T. Raicht, Esq., at Proskauer Rose LLP, serves as counsel in the U.S. case. BERNARD L. MADOFF: Meridian Ditches Claims in Feeder Fund Suit -------------------------------------------------------------- Law360 reported that a New York federal judge has dismissed a suit against Meridian Capital Partners Inc. and Ernst & Young LLP over losses from Bernard Madoff's Ponzi scheme, saying the middleman defendants were probably "genuinely deceived." According to the report, U.S. District Judge Thomas Griesa rejected The R.W. Grand Lodge of Free and Accepted Masons of Pennsylvania's claims that Meridian, director William Lawrence, and auditor E&Y used fraud to secure the Grand Lodge's investments in a Meridian "fund of hedge funds" that invested in Madoff's funds. Judge Griesa said that the facts put forth simply did not support the conclusion that the defendants had knowledge of the fraud, Law360 related. The case is The R.W. Grand Lodge Of Free & Accepted Masons Of Pennsylvania v. MERIDIAN Capital Partners Inc. et al., case numbers 1:09-md-02082 and 1:09-cv-07099, in the U.S. District Court for the Southern District of New York. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). From recoveries in lawsuits coupled with money advanced by SIPC, Mr. Picard has commenced distributions to victims. The fifth pro rata interim distribution slated of Jan. 15, 2015, totaled $322 million, and brought the amount distributed to eligible claimants to $7.2 billion, which includes more than $823 million in advances committed to the SIPA Trustee for distribution to allowed claimants by the SIPC. As of Nov. 30, 2014, the SIPA Trustee has recovered or reached agreements to recover approximately $10.5 billion since his appointment in December 2008. BLUE CALYPSO: Marcum LLP Expresses Going Concern Doubt ------------------------------------------------------ Blue Calypso, 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. Marcum LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has incurred net losses since inception and needs to raise additional funds to meet its obligations and sustain its operations. The Company reported a net loss of $7.74 million on $780,000 in revenue for the year ended Dec. 31, 2014, compared to a net loss of $6.82 million on $342,000 of revenue in the same period last year. The Company's balance sheet at Dec. 31, 2014, showed $2.12 million in total assets, $262,000 in total liabilities, and stockholders' equity of $1.86 million. A copy of the Form 10-K is available at: http://is.gd/OzH12Q Based in Dallas, Texas, Blue Calypso, Inc., develops and delivers advocacy marketing and analytics solutions and services for the business-to-consumer (B2C) marketplace leveraging mobile, social media, gamification. BOREAL WATER: Hikes Authorized Common Shares to 5 Billion --------------------------------------------------------- The shareholders of Boreal Water Collection, Inc., approved an increase in the authorized common shares of the Company from 1.5 billion to 5 billion, according to a document filed with the Securities and Exchange Commission. This was accomplished through a consent without a meeting. On March 27, 2015, the Nevada Secretary of State accepted and filed the Company's Certificate of Amendment to its Articles of Incorporation changing the authorized common shares from 1.5 billion to 5 billion. The par value remains at 0.001 per share. About Boreal Water Kiamesha Lake, N.Y.-based Boreal Water Collection, Inc., is a personalized bottled water company specializing in premium custom bottled water. Boreal Water reported a net loss of $886,000 on $2.41 million of sales for the year ended Dec. 31, 2014, compared with net income of $613,000 on $2.15 million of sales for the year ended Dec. 31, 2013. As of Dec. 31, 2014, Boreal Water had $3.13 million in total assets, $3.27 million in total liabilities, and a $143,000 stockholders' deficit. Terry L. Johnson, CPA, in Casselberry, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014. The accounting firm noted that the Company has incurred a deficit of approximately $3.6 million and has used approximately $800,000 of cash due to its operating activities in the two years ended Dec. 31, 2014. The Company may not have adequate readily available resources to fund operations through Dec. 31, 2015. This raises substantial doubt about the Company's ability to continue as a going concern. BOREAL WATER: Posts $885,000 Net Loss in 2014 --------------------------------------------- Boreal Water Collection, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $886,000 on $2.41 million of sales for the year ended Dec. 31, 2014, compared with net income of $613,000 on $2.15 million of sales for the year ended Dec. 31, 2013. As of Dec. 31, 2014, Boreal Water had $3.13 million in total assets, $3.27 million in total liabilities, and a $143,000 total stockholders' deficit. Terry L. Johnson, CPA, in Casselberry, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014. The accounting firm noted that the Company has incurred a deficit of approximately $3.6 million and has used approximately $800,000 of cash due to its operating activities in the two years ended Dec. 31, 2014. The Company may not have adequate readily available resources to fund operations through Dec. 31, 2015. This raises substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. A full-text copy of the Form 10-K is available for free at: http://is.gd/pFjWSb About Boreal Water Kiamesha Lake, N.Y.-based Boreal Water Collection, Inc., is a personalized bottled water company specializing in premium custom bottled water. BREITBURN ENERGY: S&P Affirms 'B+' CCR, Off Watch Negative ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed the 'B+' corporate credit, 'BB' senior secured issue-level, and 'B-' senior unsecured issue-level ratings on Los Angeles-based Breitburn Energy Partners L.P. and removed them from CreditWatch where S&P placed them with negative implications on Jan. 21, 2015. The outlook is negative. "The negative outlook reflects our expectation that leverage will rise to a level inconsistent with the rating unless Breitburn takes steps to reduce debt or fund growth through external sources," said Standard & Poor's credit analyst Ben Tsocanos. S&P's ratings affirmation follows Breitburn's announcement that it has reached an agreement to issue $1 billion of securities, composed of $650 million of senior secured second-lien notes and $350 million perpetual convertible preferred units, to investment firm EIG Global Energy Partners and other purchasers and will use proceeds to refinance borrowings under its credit facility. S&P's assessment of Breitburn's business risk as "weak" incorporates the company's relatively small reserve base and production levels, high operating costs, and limited organic growth prospects from its historical mature asset base. These risks are mitigated somewhat by a high proportion of proved developed reserves in its asset base, a long reserve life, low production declines, and a relatively high proportion of oil and natural gas liquids production, which receive favorable pricing relative to natural gas. S&P views Breitburn's financial risk as "aggressive," reflecting projected 2015 leverage of about 15% FFO to debt. S&P views Breitburn's liquidity as "adequate." S&P expects liquidity sources to exceed uses by at least 1.2x for the next 12 to 18 months--the minimum for the designation of "adequate." S&P could lower ratings if the partnership does not take steps to reduce leverage such that FFO to debt falls below 12%. S&P could revise the outlook to stable if Breitburn issues sufficient preferred or common equity, completes asset sales, or secures external funding such that S&P expects debt leverage to stabilize below 5x debt to EBITDA, and FFO to debt above 12%. BROADVIEW NETWORKS: Reports $9.22 Million Net Loss in 2014 ---------------------------------------------------------- Broadview Networks Holdings, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $9.22 million on $300 million of revenues for the year ended Dec. 31, 2014, compared to a net loss of $8.48 million on $315 million of revenues for the year ended Dec. 31, 2013. The Company previously reported a net loss of $35.3 million in 2012. As of Dec. 31, 2014, the Company had $209 million in total assets, $210 million in total liabilities and a $1.01 million total stockholders' deficiency. As of Dec. 31, 2014, the Company held cash and cash equivalents in the amount of $14.5 million and the Company had drawn $10,000,000 on its Revolving Credit Facility. "There can be no assurance that our business will generate sufficient cash flow from operations or that future borrowings will be available in an amount sufficient to enable us to pay our indebtedness or to fund other liquidity needs. As of December 31, 2014, we required approximately $47.2 million in cash to service the interest due on our Notes throughout their remaining life. We may need to refinance all or a portion of our indebtedness, including our Notes and our Revolving Credit Facility, at or before maturity. There can be no assurances that we will be able to refinance any of our indebtedness, including our Notes and our Revolving Credit Facility, on commercially reasonable terms or at all," the Company said in the report. A full-text copy of the Form 10-K is available for free at: http://is.gd/vTso5S About Broadview Networks Rye Brook, N.Y.-based Broadview Networks Holdings, Inc., is a communications and IT solutions provider to small and medium sized business ("SMB") and large business, or enterprise, customers nationwide, with a historical focus on markets across 10 states throughout the Northeast and Mid-Atlantic United States, including the major metropolitan markets of New York, Boston, Philadelphia, Baltimore and Washington, D.C. * * * In the July 23, 2012, edition of the Troubled Company Reporter, Moody's Investors Service downgraded Broadview Networks Holdings, Inc. Corporate Family Rating (CFR) to 'Caa3' from 'Caa2' and the Probability of Default Rating (PDR) to 'Ca' from 'Caa3' in response to the company's announcement that it has entered into a restructuring support agreement with holders of roughly 70% of its preferred stock and roughly 66-2/3% of its Senior Secured Notes. The company is expected to file a pre-packaged Chapter 11 Plan of Reorganization or complete an out of court exchange offer. As reported by the TCR on July 25, 2012, Standard & Poor's Ratings Services lowered its corporate credit rating on Broadview to 'D' from 'CC'. "This action follows the company's announced extension on its revolving credit facility. We expect to lower the issue- level rating on the notes to 'D' once the company files for bankruptcy, or if it misses the Sept. 1, 2012 maturity payment on the notes," S&P said. BROCK HOLDINGS III: S&P Lowers CCR to 'B-', Outlook Stable ---------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its corporate credit rating on U.S.-based specialty maintenance provider Brock Holdings II Inc. (BHII) and its wholly owned subsidiary Brock Holdings III Inc. (Brock) to 'B-' from 'B'. The rating outlook on both entities is stable. At the same time, S&P lowered its ratings on Brock's $125 million revolving credit facility and $510 million first-lien term loan to 'B' from 'B+'. The '2' recovery ratings on both debt issues remain unchanged, indicating S&P's expectation that lenders would receive substantial (70%-90%; lower half of the range) recovery in a payment default scenario. S&P also lowered the ratings on the company's $190 million second-lien term loan to 'CCC' from 'CCC+'. The '6' recovery rating on this debt issue remains unchanged, indicating S&P's expectation for negligible (0%-10%) recovery in the event of payment default. "The downgrade reflects our view that Brock's recent difficulties with project execution has caused credit metrics to deteriorate beyond our previous rating expectations," said Standard & Poor's credit analyst Robyn Shapiro. S&P believes weaker-than-expected EBITDA margins will likely increase adjusted debt to EBITDA to about 6x, but with positive free operating cash flow (FOCF). S&P views Brock's liquidity as "less than adequate," primarily reflecting the imminent risk that the company could violate its covenant in the absence of an amendment or an equity cure from the company's financial sponsor. BROWNIE'S MARINE: Posts $94,000 Net Income in 2014 -------------------------------------------------- Brownie's Marine Group, Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing net income of $94,400 on $2.73 million of total net revenues for the year ended Dec. 31, 2014, compared with a net loss of $896,000 on $2.87 million of total net revenues for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $916,000 in total assets, $1.36 million in total liabilities and a $453,000 total stockholders' deficit. L.L. Bradford & Company, LLC, in Las Vegas, Nevada, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. The Company also warns that if it fails to raise additional funds when needed, or does not have sufficient cash flows from sales, it may be required to scale back or cease operations, liquidate assets and possibly seek bankruptcy protection. A full-text copy of the Form 10-K is available for free at: http://is.gd/G7yrqx About Brownie's Marine Brownie's Marine Group, Inc., does business through its wholly owned subsidiary, Trebor Industries, Inc., d/b/a Brownie's Third Lung, a Florida corporation. The Company designs, tests, manufactures and distributes recreational hookah diving, yacht based scuba air compressor and nitrox generation systems, and scuba and water safety products. BWMG sells its products both on a wholesale and retail basis, and does so from its headquarters and manufacturing facility in Fort Lauderdale, Florida. The Company's common stock is quoted on the OTC BB under the symbol "BWMG". The Company's Web site is http://www.browniesmarinegroup.com/ BUDD COMPANY: Has Until July 31 to File Chapter 11 Plan ------------------------------------------------------- The Hon. Jack B. Schmetterer of the U.S Bankruptcy Court for the Northern District of Illinois extended the exclusive periods of Budd Company Inc. to: a) file a Chapter 11 through and including July 31, 2015; and b) solicit acceptances of that plan until Sept. 30, 2015. According to court documents, the Debtor and its stakeholders have made significant progress in the last several months towards resolving the complex issues that must be addressed before the Debtor can exit chapter 11. Among other things: a. the Debtor investigated claims and future rights to payment that it may hold against its parent, ThyssenKrupp North America, Inc. (TKNA), under the Oct. 1, 2002 Tax Sharing Agreement among Budd, TKNA, and other affiliates of Budd ("Tax Sharing Agreement"); b. the Debtor commenced an adversary proceeding against TKNA and obtained an injunction preventing TKNA from taking actions that may impair the Debtor's rights under the Tax Sharing Agreement; c. the Debtor produced to the UAW and the Retiree Committee thousands of pages of documents related to claims that the Debtor may hold against TKNA related to, among other things, the Debtor's prepetition sale of the Waupaca steel foundry; d. the UAW and the Retiree Committee issued third-party discovery related to the Debtor's potential claims arising from the sale of Waupaca; e. the Debtor produced to the Asbestos Committee thousands of pages of documents potentially relevant to existing and/or future asbestos claims; f. the Debtor and the Asbestos Committee retained experts to analyze such information and estimate the Debtor's asbestos liability; g. the Debtor obtained entry of an order establishing a claims bar date, entry of which was supported by the Asbestos Committee, the UAW and the Retiree Committee; and h. the Debtor continued to receive the support of TKNA in connection with TKNA's continued payment of the Debtor's ERISA qualified pension plan obligations and SERP1 obligations. Notwithstanding this progress, it remains premature at this point in time for the Debtor to file or pursue confirmation of a chapter 11 plan in this case. The issues that remain to be resolved simply have too great an impact on both: a. assets that ultimately will be available for distribution on account of such claims (including rights to payment under the Tax Sharing Agreement and potential claims against TKNA); and b. the amount and type of claims that ultimately will be allowed against the Debtor (including asbestos claims and retiree benefit claims). The Debtor said it believes that significant progress will continue to be made in the next 3 to 4 months, and that such progress will position the Debtor to develop an (hopefully consensual) exit strategy. Specifically, the Debtor expects the following important developments to take place during the time of the requested extension: a. passage of the claims bar date on March 31st; b. substantial completion of the Bankruptcy Rule 2004 discovery of potential claims related to Waupaca and the Tax Sharing Agreement; c. substantial completion of the Debtor's analysis of the Tax Sharing Agreement; d. completion of expert reports analyzing the Debtor's asbestos liability; e. sufficient advancement of discussions and analysis by the Debtor, the Asbestos Committee, and the Debtor's insurers to position such parties to negotiate or otherwise determine a framework for addressing asbestos claims against the Debtor; and f. due in part to the foregoing, the Debtor, the UAW, and the Retiree Committee will become better informed as to how to address the Debtor's retiree benefit obligations in a manner that satisfies section 1114 of the Bankruptcy Code. About The Budd Company The Budd Company, Inc., a former supplier to the automotive industry, filed for chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 14-11873) on March 31, 2014, with a deal to settle potential claims against its parent, ThyssenKrupp AG. The company -- which ceased manufacturing operations in 2006 and does not have any current employees, facilities or customers -- has obligations consisting largely of medical and other benefits to approximately 10,000 former employees. Liabilities amount to approximately $1 billion with assets of approximately $400 million. Most of the debt consists largely of medical and other benefits to approximately 10,000 former employees. The Debtor disclosed $387,555,681 in assets and $1,107,350,034 in liabilities as of the Chapter 11 filing. The Hon. Jack B. Schmetterer oversees the case. The Debtor has tapped Proskauer Rose LLP as Chapter 11 counsel, Dickinson Wright PLLC as special counsel, Epiq Bankruptcy Solutions, LLC as noticing, claims and balloting agent, and Conway MacKenzie Management Services, LLC's Charles M. Moore as CRO. The U.S. Trustee appointed five individuals to serve on the Committee of Executive & Administrative Retirees. The Segal Company (Eastern States), Inc. serves as the Committee's actuarial consultant. The Committee retained Solic Capital Advisors, LLC as its financial advisor. Reed Heiligman, Esq., at FrankGecker LLP, in Chicago, Illinois, represents the ad hoc committee of asbestos personal injury claimants. CAESARS ENTERTAINMENT: Battles $462-Mil. Pension Withdrawal Claim ----------------------------------------------------------------- Bill Rochelle, writing for Bloomberg News, reported that Caesars Entertainment Operating Co. filed papers asking a bankruptcy judge in Chicago to rule that the National Retirement Fund's demand for payment of a $462 million withdrawal liability violates the automatic stay. According to the report, the fund claimed to terminate the casinos' participation the day after an involuntary bankruptcy filing in January. Caesars argued that ending the entire group's participation in the pension plan imposes the termination liability even though the companies are up to date in their contributions and said it intends to continue participating in the pension plans, as required by union contracts, the Bloomberg report. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc., is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. In January 2015, Caesars Entertainment and subsidiary Caesars Entertainment Operating Company, Inc., announced that holders of more than 60% of claims in respect of CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior secured notes due 2020 and CEOC's 9% senior secured notes due 2020 have signed the Amended and Restated Restructuring Support and Forbearance Agreement, dated as of Dec. 31, 2014, among Caesars Entertainment, CEOC and the Consenting Creditors. As a result, The RSA became effective pursuant to its terms as of Jan. 9, 2015. Appaloosa Investment Limited, et al., owed $41 million on account of 10% second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. The bondholders are represented by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, LLP. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Delaware Bankruptcy Judge Kevin Gross entered a ruling that the bankruptcy proceedings will proceed in the U.S. Bankruptcy Court for the Northern District of Illinois. Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. The U.S. Trustee has appointed seven noteholders to serve in the Official Committee of Second Priority Noteholders and nine members to serve in the Official Unsecured Creditors' Committee. The U.S. Trustee appointed Richard S. Davis as Chapter 11 examiner. CAESARS ENTERTAINMENT: Judge to Weigh Shielding Parent from Suits ----------------------------------------------------------------- Steven Church, writing for Bloomberg News, reported that a federal judge agreed to decide in June whether Caesars Entertainment Corp. should be shielded from lawsuits accusing the gambling company of protecting its private-equity owners at the expense of creditors owed billions of dollars. According to the report, Caesars' main operating unit already enjoys a temporary reprieve from litigation because it's in federal bankruptcy court in Chicago. That unit asked U.S. Bankruptcy Judge to extend the Benjamin Goldgar shield to its non-bankrupt parent, the report related. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc., is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. In January 2015, Caesars Entertainment and subsidiary Caesars Entertainment Operating Company, Inc., announced that holders of more than 60% of claims in respect of CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior secured notes due 2020 and CEOC's 9% senior secured notes due 2020 have signed the Amended and Restated Restructuring Support and Forbearance Agreement, dated as of Dec. 31, 2014, among Caesars Entertainment, CEOC and the Consenting Creditors. As a result, The RSA became effective pursuant to its terms as of Jan. 9, 2015. Appaloosa Investment Limited, et al., owed $41 million on account of 10% second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. The bondholders are represented by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, LLP. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Delaware Bankruptcy Judge Kevin Gross entered a ruling that the bankruptcy proceedings will proceed in the U.S. Bankruptcy Court for the Northern District of Illinois. Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. The U.S. Trustee has appointed seven noteholders to serve in the Official Committee of Second Priority Noteholders and nine members to serve in the Official Unsecured Creditors' Committee. The U.S. Trustee appointed Richard S. Davis as Chapter 11 examiner. CAESARS ENTERTAINMENT: Said Close to Accord with Top Lenders ------------------------------------------------------------ Laura J. Keller, writing for Bloomberg News, reported that Caesars Entertainment Corp. is close to winning support from a group of its highest-ranking lenders for a restructuring of its biggest unit, a deal that would help ease the company's path in bankruptcy. According to the report, citing three people with knowledge of the discussions, lenders including Blackstone Group LP's credit arm, a mutual-fund unit of Franklin Resources Inc. and Och-Ziff Capital Management Group LLC are negotiating an agreement to back a reorganization plan the company has crafted with lower-tier first-lien creditors of Caesars Entertainment Operating Co. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc., is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. In January 2015, Caesars Entertainment and subsidiary Caesars Entertainment Operating Company, Inc., announced that holders of more than 60% of claims in respect of CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior secured notes due 2020 and CEOC's 9% senior secured notes due 2020 have signed the Amended and Restated Restructuring Support and Forbearance Agreement, dated as of Dec. 31, 2014, among Caesars Entertainment, CEOC and the Consenting Creditors. As a result, The RSA became effective pursuant to its terms as of Jan. 9, 2015. Appaloosa Investment Limited, et al., owed $41 million on account of 10% second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. The bondholders are represented by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, LLP. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Delaware Bankruptcy Judge Kevin Gross entered a ruling that the bankruptcy proceedings will proceed in the U.S. Bankruptcy Court for the Northern District of Illinois. Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. The U.S. Trustee has appointed seven noteholders to serve in the Official Committee of Second Priority Noteholders and nine members to serve in the Official Unsecured Creditors' Committee. The U.S. Trustee appointed Richard S. Davis as Chapter 11 examiner. CERIDIAN HCM: S&P Assigns 'B-' Corp. Credit Rating -------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'B-' corporate credit rating to Bloomington, Minn.-based Ceridian HCM Holding Inc. The outlook is stable. At the same time, S&P affirmed its 'B-' issue-level rating, with a '3' recovery rating, to the company's revolving credit facility and term loan. The '3' recovery rating indicates S&P's expectation for "meaningful" recovery (50% to 70%, in the higher half of the range) in the event of payment default. S&P also affirmed its 'CCC' issue-level rating, with a '6' recovery rating, on the senior unsecured notes due 2021. The '6' recovery rating indicates S&P's expectation for "negligible" (0%-10%) recovery in the event of payment default. S&P is withdrawing its 'B-' corporate credit rating on Ceridian LLC because debt is no longer outstanding at that entity following a reorganization of the business in late November 2014. Ceridian HCM Holding Inc. continues to be a subsidiary of Ceridian LLC. "Our 'B-' corporate credit rating on Ceridian reflects the company's "fair" business risk profile based on its moderate position in a highly competitive market, and its 'highly leveraged' financial risk profile, based on its high level of debt following a leveraged buyout in 2007," said Standard & Poor's credit analyst Alison Sullivan. S&P adjusts the 'b' anchor score downward one notch to an issuer credit rating of 'B-' because of the company's high leverage compared with other 'B' rated peer companies. The stable outlook reflects S&P's expectation that Ceridian will continue to expand its cloud HCM business and use cash flow to fund investment in the cloud. While S&P expects leverage to remain very high, it expects the company to maintain adequate liquidity. S&P could lower the rating if execution missteps and/or competitive pressures were to lead to a decline in margins and EBITDA so that the company would not have sufficient covenant headroom. An upgrade is unlikely in the near to intermediate term due to the company's highly leveraged financial position. CHARTER COMMUNICATIONS: S&P Puts 'BB-' CCR on Watch Positive ------------------------------------------------------------ Standard & Poor's Ratings Services said it placed all of its ratings, including its 'BB-' corporate credit rating, on Stamford, Conn.-based cable operator Charter Communications Inc., on CreditWatch with positive implications. "The positive CreditWatch listing reflects our view of Charter's materially increased scale and improved leverage metrics pro forma for the pending system swaps and acquisitions with Comcast Corp., as well as the newly announced acquisition of BHN," said Standard & Poor's credit analyst Michael Altberg. In addition to shareholder approval, the acquisition of BHN is contingent on the expiration of Time Warner Cable Inc. (TWC)'s right of first offer for BHN, the regulatory approval of the pending Comcast and TWC deal, and the close of Charter's previously announced transactions with Comcast. As a result, if the Comcast and TWC deal is not approved, any potential rating upgrade or affirmation of the existing 'BB-' rating on Charter would be dependent on Charter's alternative strategy around consolidation. The CreditWatch listing reflects the potential for at least a one-notch upgrade, depending on the regulatory approval and close of the pending Comcast and BHN transactions. Key considerations will include the company's longer-term financial policy and leverage target, especially in respect to the potential for additional acquisitions or the purchase of increased equity interests in GreatLand or Charter partnership over time. CHINA MEDICAL: Paul Weiss Rips Liquidator Push for Privileged Docs ------------------------------------------------------------------ Law360 reported that Paul Weiss Rifkind Wharton & Garrison LLP derided an attempt by a liquidator probing an alleged $355 million fraud at China Medical Technologies Inc. to obtain documents connected to the firm's representation of the company's audit committee, saying a bankruptcy court correctly found the material to be privileged. According to the report, the liquidator, Kenneth Krys, is tasked with digging up money for creditors of China Medical and subpoenaed Paul Weiss and turnaround consultant AlixPartners LLP for the results of an internal investigation they conducted for China Medical. About China Medical China Medical Technologies Inc., a maker of diagnostic products, filed a Chapter 15 bankruptcy petition in New York to locate money fraudulently transferred by its principals. The Debtor, which has been taken over by a trustee, is undergoing corporate winding-up proceedings before the Grand Court of the Cayman Islands. Kenneth M. Krys, the joint official liquidator, wants U.S. courts to recognize the Cayman proceeding as the "foreign main proceeding" The liquidator filed a Chapter 15 petition for China Medical (Bankr. S.D.N.Y. Case No. 12-13736) on Aug. 31, 2012. Curtis C. Mechling, Esq., at Stroock & Stroock & Lavan, LLP, in New York, serves as counsel. Cosimo Borrelli and Yuen Lai Yee (Liz) on Nov. 29, 2012, were appointed as liquidators of China Medical Technologies Inc. The liquidators may be reached at: Cosimo Borrelli Yuen Lai Yee (Liz) Level 17, Tower 1 Admiralty Centre 18 Harcourt Road Hong Kong CHRYSLER GROUP: Defective Brake Suit Moved to Bankr. Court ---------------------------------------------------------- Law360 reported that a putative class action accusing Chrysler Group LLC of concealing a brake defect in its 2009 and 2010 Dodge Journey vehicles was transferred to New York bankruptcy court, after a New Jersey federal judge said the suit deals with a sale order from the automaker's pre-bankruptcy incarnation. According to the report, the transfer was finalized in the suit that has hopped from court to court since its December 2011 filing in California superior court. The case is Garcia v. Chrysler Group LLC, Case No. 1:15-cv-01813 (S.D.N.Y.). About Chrysler Group Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles and products. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. Chrysler LLC and 24 affiliates on April 30, 2009, sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). The U.S. and Canadian governments provided Chrysler with $4.5 billion to finance its bankruptcy case. In connection with the bankruptcy filing, Chrysler reached an agreement to sell all assets to an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC in June 2009, formally sold substantially all of its assets to the new company, named Chrysler Group LLC. In January 2014, the American car manufacturer officially became 100% Italian when Fiat Spa completed its deal to purchase the 40% it did not already own of Chrysler. Fiat has shared ownership of Chrysler with the health care fund of the United Automobile Workers unions since Chrysler emerged from bankruptcy in 209. * * * Standard & Poor's Ratings Services raised its ratings on U.S.- based auto manufacturer Chrysler Group LLC, including the corporate credit rating to 'BB-' from 'B+' in mid-January 2014. The outlook is stable. CITIZENS FINANCIAL: Fitch Rates $250MM Preferred Stock 'BB-' ------------------------------------------------------------- Fitch Ratings expects to assign a 'BB-' rating to Citizens Financial Group's (CFG) $250 million non-cumulative perpetual preferred issuance. The final size and pricing of the proposed issuance will be determined at the time of issuance. Dividends will be payable at a fixed rate per annum from the original issue date to, but excluding, April 6, 2020 and thereafter at a floating rate per annum. The proceeds will be used to repurchase common stock directly from CFG's parent company, the RBS Group, or for general corporate purposes. KEY RATING DRIVERS - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The hybrid instrument is rated five notches lower than CFG's viability rating of 'bbb+' in accordance with Fitch's criteria 'Global Bank Rating Criteria' dated March 20, 2015. The preferred stock rating includes two notches for loss severity given these securities deep subordination in the capital structure, and three notches for non-performance given that the coupon of the securities is non-cumulative and fully discretionary. RATING SENSITIVITIES - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES CFG's preferred issuances are sensitive to changes in CFG's VR, and would move in tandem with any changes to CFG's VR. This rating expects to be assigned. Citizens Financial Group, Inc. -- Non-cumulative preferred at 'BB- (EXP)'. COMMERCIAL BARGE: S&P Revises Outlook to Pos. & Affirms 'B-' CCR ---------------------------------------------------------------- Standard & Poor's Ratings Services said it revised the rating outlook on Jeffersonville, Ind.-based shipping company Commercial Barge Line Co. (CBL) to positive from stable. At the same time, S&P affirmed the 'B-' corporate credit rating on CBL. S&P also affirmed the issue-level ratings on CBL's $450 million senior secured first-lien term loan B and $200 million senior secured second-lien term loan C. S&P rates the senior secured first-lien term loan B 'B' with a recovery rating of '2', indicating S&P's expectation for substantial (70% to 90%; upper half of the range) recovery of principal in the event of a payment default. The senior secured second-lien term loan C is rated 'CCC' with a recovery rating of '6', indicating negligible (0% to 10%) recovery. "The positive rating outlook on CBL reflects our assessment that there is at least a one-in-three chance of raising the corporate credit rating by one notch within 12 months, given the company's earnings growth and improvement in credit metrics, which could result in credit measures commensurate with a higher rating," said Standard & Poor's credit analyst Michael Durand. The positive rating outlook reflects S&P's view that CBL's financial profile will improve gradually over time as earnings benefit from gains in its dry cargo business, including higher capacity utilization and better pricing, as well as lower capital spending. Although a decline in energy prices will weaken its tank barges' capacity utilization and pricing, CBL is protected from a significant disruption because the majority of the company's liquid tank barge fleet is under multiyear contracts. S&P could raise the rating in the next 12 months if CBL sustains earnings improvement such that debt to EBITDA is consistently below 5x and FFO to debt remains in the mid-teens percent area over this period. While less likely, S&P could revise the outlook to stable if economic pressures or weather-related disruptions to operations cause CBL's earnings to decline, resulting in debt to EBITDA above 5x and FFO to debt in a percent in the low teens or below. Alternatively, although S&P do not expect this to occur at this time, it could revise the outlook to stable if the company's financial sponsors issue a debt-financed dividend. COMMUNICATION INTELLIGENCE: Completes $1.2-Mil. Funding Round ------------------------------------------------------------- Communication Intelligence Corporation had closed a new round of funding with a number of existing investors to provide working capital. In the transaction, which closed on March 24, 2015, investors subscribed to approximately $1.2 million of CIC's Series D-1 Convertible Preferred Stock, which can be converted to common stock at a price of $0.0225 per share. For each share of preferred stock purchased, investors were also issued a three-year warrant to purchase twenty-two shares of common stock at an exercise price of $0.0225 per share. The warrants issued to the Investors entitle the Investors to purchase up to an aggregate of approximately 27.4 million shares of Common Stock. About Communication Intelligence Redwood Shores, California-based Communication Intelligence Corporation is a supplier of electronic signature products and the recognized leader in biometric signature verification. Communication Intelligence reported a net loss attributable to common stockholders of $8.09 million in 2013 compared to a net loss attributable to common stockholders of $6.74 million in 2012. PMB Helin Donovan, LLP, in San Francisco, CA, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's significant recurring losses and accumulated deficit raise substantial doubt about its ability to continue as a going concern. CRYOPORT INC: Amends Certain Rights of Class A Preferred Stock -------------------------------------------------------------- Cryoport, Inc., on March 26, 2015, submitted for filing with the Secretary of State of the State of Nevada an Amended and Restated Certificate of Designation of the Class A Preferred Stock. The Restated Designation adopted certain special mandatory conversion provisions for the Preferred Stock upon a qualified offering (defined as a public offering resulting in at least $5,000,000 of gross cash proceeds), whereby the Preferred Stock is converted into the type of securities issued in such qualified offering at a 20 percent discount. The Restated Designation was approved by approximately 64.6% of the outstanding shares of Preferred Stock. 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. CYCLONE POWER: Delays 2014 Form 10-K for Review ----------------------------------------------- Cyclone Power Technologies, Inc., disclosed in a regulatory filing with the Securities and Exchange Commission that it was unable to file its annual report on Form 10-K for the period ended Dec. 31, 2014, by the prescribed date without unreasonable effort or expense because the Company's audit review is in process and has not been completed. The Company believes that the Annual Report will be completed within the 15 calendar day extension period provided under Rule 12b-25 of the Securities Exchange Act of 1934. About Cyclone Power Pompano Beach, Fla.-based Cyclone Power Technologies, Inc. (Pink Sheets: CYPW) is a clean-tech engineering company, whose business is to develop, commercialize and license its patented Rankine cycle engine technology for applications ranging from renewable power generation to transportation. The Company is the successor entity to the business of Cyclone Technologies LLLP, a limited liability limited partnership formed in Florida in June 2004. Cyclone Technologies LLLP was the original developer and intellectual property holder of the Cyclone engine technology. Cyclone Power reported a net loss of $3.79 million on $715,000 of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $3 million on $1.13 million of revenues for the year ended Dec. 31, 2012. Mallah Furman, in Fort Lauderdale, 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's dependence on outside financing, lack of sufficient working capital, and recurring losses raises substantial doubt about its ability to continue as a going concern. The Company's balance sheet at Sept. 30, 2014, showed $2.41 million in assets, $3.16 million in liabilities, and a stockholders' deficit of $748,000. DEB STORES: Gets Nod to Sell IP in $2.2-Mil. Deal ------------------------------------------------- Law360 reported that a Delaware bankruptcy judge gave the thumbs up to Deb Stores Holding LLC's sale of its intellectual property assets, including trademarks, Internet domain names and social media accounts, to Softree Inc. for a price tag of more than $2 million. According to the report, at a hearing in Wilmington, Delaware, U.S. Bankruptcy Judge Kevin Gross said he would be "delighted" to approve the IP sale after hearing from Deb Stories attorneys that the value of the assets had been determined by a competitive auction. Law360 also reported that Deb Stores reached a deal with landlord Simon Property Group Inc. that will see the women's clothing chain receive a rent refund if any stores are shuttered mid-month. Deb Stores leases 45 retail locations from Simon Property and pays rent a month in advance, but the clothier -- whose inventory is being sold by liquidators -- is not currently entitled to a refund if the liquidators decide to vacate one of those stores in the middle of the month, the report said. About Deb Stores Headquartered in Philadelphia, Pennsylvania, Deb Stores is a mall-based retailer in the juniors "fast-fashion" specialty sector that operates under the name "DEB" and offers moderately priced, fashionable, coordinated women's sportswear, dresses, coats, lingerie, accessories and shoes for junior and plus sizes. The company, founded by Philip Rounick and Emma Weiner, opened its first store under the name JOY Hosiery in Philadelphia, Pennsylvania in 1932. As of Sept. 30, 2014, the company operated a total of 295 retail store locations (primarily in the East and Midwest, especially Pennsylvania, Ohio and Michigan) as well as an e-commerce channel. On June 26, 2011, Deb Stores' predecessors -- DSI Holdings Inc. and its subsidiaries -- sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-11941) and closed the sale of the assets three months later to Ableco Finance, LLC, the agent for the first lien lenders. Deb Stores Holding LLC and eight affiliated companies commenced Chapter 11 bankruptcy cases in Delaware on Dec. 4, 2014. The Debtors are seeking to have their cases jointly administered, with pleadings maintained on the case docket for Deb Stores Holding (Case No. 14-12676). The cases are assigned to Judge Mary F. Walrath. Laura Davis Jones, Esq., Colin R. Robinson, Esq., at and Peter J. Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as counsel to the Debtors. Epiq Bankruptcy Solutions, LLC, is the claims and noticing agent. As of Dec. 31, 2014, the Debtors' most recent audited consolidated financial statements reflected assets totaling $90.5 million and liabilities totaling $120.1 million. The Official Committee of Unsecured Creditors tapped Cooley LLP as its lead counsel; Drinker Biddle & Reath LLP as its co-counsel; and Zolfo Cooper, LLC as its bankruptcy consultants and financial advisors. DELRAY HOLDING: NJ Court Axes Investors Suing Individually ---------------------------------------------------------- Law360 reported that investors in two bankrupt real estate companies failed to revive claims against other developers over losses on residential and commercial projects, when a New Jersey appellate panel agreed with a lower court that the dispute involved corporate claims that the investors lacked standing to individually pursue. According to the report, in a published decision, a three-judge panel of the state Appellate Division backed summary judgment for Roger Passarella and his companies Delray Holding LLC and Bay Dock Holdings LLC. DENDREON CORP: Court Okays Skadden Arps as Bankruptcy Counsel ------------------------------------------------------------- The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware authorized Dendreon Corporation, et al., to employ Skadden, Arps, Slate, Meagher & Flom LLP as their bankruptcy counsel. As reported in the Troubled Company Reporter on Nov. 25, 2014, Skadden will render various services to the Debtors, including, among others, the following: (a) advising the Debtors with respect to their powers and duties as debtors and debtors in possession in the continued management and operation of their businesses and properties; (b) attending meetings and negotiating with representatives of creditors and other parties in interest, and advising and consulting on the conduct of the cases, including all of the legal and administrative requirements of operating in Chapter 11; (c) taking all necessary action to protect and preserve the Debtors' estates, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors' estates, negotiations concerning litigation in which the Debtors may be involved and objections to claims filed against the Debtors' estates; (d) preparing on behalf of the Debtors all motions, applications, answers, orders, reports and papers necessary to the administration of the estates; (e) advising the Debtors in connection with any sales of assets; (f) preparing and negotiating on the Debtors' behalf plan(s) of reorganization, disclosure statement(s) and all related agreements and/or documents, and taking any necessary action on behalf of the Debtors to obtain confirmation of those plan(s); (g) appearing before the Court, any appellate courts, and the U.S. Trustee and protecting the interests of the Debtors' estates before those courts and the U.S. Trustee; and (h) performing all other necessary legal services and providing all other necessary legal advice to the Debtors in connection with the Chapter 11 Cases. For 2014, the hourly rates under the firm's standard rate structure range from $860 to $1,275 for partners, $850 to $975 for counsel, $370 to $830 for associates and $195 to $340 for legal assistants. These hourly rates will increase on Jan. 1, 2015, and the hourly rates under the firm's standard rate structure for 2015 will range from $895 to $1,350 for partners, $885 to $995 for counsel, $380 to $870 for associates and $200 to $350 for legal assistants. Skadden received an initial retainer of $1,250,000. Skadden had $863,827 remaining in the Retainer as of the Petition Date. Within the one-year period preceding the Petition Date, the total aggregate amount of fees earned and expenses incurred by Skadden on behalf of the Debtors was $5,502,044, and during the same period, the Debtors paid Skadden an aggregate of $6,365,871 for those matters, including payment of the Retainer. Skadden has charged and will continue to charge the Debtors for all other services provided and for other charges and disbursements incurred in the rendition of those services. Kenneth S. Ziman, Esq., a member of Skadden, assures the Court that it is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Mr. Ziman discloses that current and former officers and directors of the Debtors serve or have served on the boards of directors of, or are employed or have been employed by, certain current and former clients of Skadden. Skadden represents or has represented each of these clients in matters unrelated to the Debtors: Amgen Inc.; Avanir Pharmaceuticals; BioMarin Pharmaceuticals, Inc.; Cempra, Inc.; Delcath Systems, Inc.; Eli Lilly and Company; EMCOR Group, Inc.; Genta Incorporated; Hospira Inc.; Human Genome Sciences, Inc.; IntegraMed America, Inc.; NPS Pharmaceuticals, Inc.; OraSure Technologies, Inc.; Pharmaceutical Research and Manufacturers of America; Portola Pharmaceuticals, Inc.; Rx Mosaic Health LLC; Savient Pharmaceuticals; Shire plc; Tranzyme Pharma; Warburg Pincus LLC; and Wright Medical Group, Inc. In response to the questions under section D(1) of the Revised U.S. Trustee Guidelines, Skadden says, among other things, that it did not agree to any variations from, or alternatives to, its standard or customary billing arrangement for its engagement with the Debtors and none of the professionals included in the engagement vary their rate based on the geographic location of the bankruptcy case. About Dendreon Corp With corporate headquarters in Seattle, Washington, Dendreon Corporation, 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 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 three members to the Official Committee of Unsecured Creditors. DENDREON CORP: Lazard Freres Approved as Investment Banker ---------------------------------------------------------- The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware authorized Dendreon Corporation, et al., to employ Lazard Freres & Co. LLC as investment banker. As reported by the Troubled Company Reporter on Nov. 25, 2014, Lazard has agreed to provide the following services as: * review and analyze the Debtor's business, operations and financial projections; * evaluate the Debtor's potential debt capacity in light of its projected cash flows; * assist in the determination of a capital structure for the Debtors; * assist in the determination of a range of values for the Debtors on a going concern basis; * advise the Debtors on tactics and strategies for negotiating with the Stakeholders; * render financial advice to the Debtors and participate in meetings or negotiations with the Stakeholders and/or rating agencies or other appropriate parties in connection with any Restructuring; * advise the Debtors on the timing, nature, and terms of new securities, other consideration or other inducements to be offered pursuant to any Restructuring; * assist the Debtors in preparing documentation within Lazard's area of expertise that is required in connection with any Restructuring; * assist the Debtors in identifying and evaluating candidates for any potential Sale Transaction, advise the Debtors in connection with negotiations and aid in the consummation of any Sale Transaction; * advise and assist the Debtors in evaluating any potential debtor-in-possession or exit financing in connection with a case under the Bankruptcy Code, contact potential sources for financing, and assist the Debtors in implementing that financing; * advise the Debtors with respect to, and attend, meetings of the Debtors' Board of Directors, as necessary; * if requested by the Debtors, participate in hearings before the Bankruptcy Court and provide relevant testimony with respect to the matters described herein; and * render other financial advisory and investment banking services as may be agreed upon by Lazard and the Debtors. The Debtors have agreed to pay Lazard $150,000 per month; a fee, payable upon consummation of any Restructuring, equal to 1.00% of any Existing Obligations involved in the Restructuring; and, if the Debtors consummate a Sale Transaction for which Lazard has provided services, an amount to be mutually agreed in good faith and consistent with the compensation customarily received by investment bankers of similar standing in similar situations. To the extent that expenses exceed $50,000, the Debtors will reimburse Lazard for its reasonable expenses incurred in connection with the performance of its engagement. The Debtors have paid a total of $1,200,000 to Lazard for services performed prior to the Petition Date. Brandon Aebersold, a Managing Director of the firm Lazard Freres & Co. LLC, in New York, assured the Court that it his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. About Dendreon Corp With corporate headquarters in Seattle, Washington, Dendreon Corporation, 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 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 three members to the Official Committee of Unsecured Creditors. DENDREON CORP: Prime Clerk Okayed as Administrative Advisor ----------------------------------------------------------- The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware authorized Dendreon Corporation, et al., to employ Prime Clerk LLC as administrative advisor. As reported in the Troubled Company Reporter on Nov. 26, 2014, the firm will provide, among other things, the following services: (a) assist with, among other things, solicitation, balloting and tabulation of votes, and prepare any related reports, as required in support of confirmation of a Chapter 11 plan, and in connection with those services, process requests for documents from parties in interest, including, if applicable, brokerage firms, bank back-offices and institutional holders; (b) prepare an official ballot certification and, if necessary, testify in support of the ballot tabulation results; (c) assist with the preparation of the Debtors' schedules of assets and liabilities and statements of financial affairs and gather data in conjunction therewith; (d) provide a confidential data room, if requested; (e) manage and coordinate any distributions pursuant to a Chapter 11 plan; and (f) provide other processing, solicitation, balloting and other administrative services as may be requested from time to time by the Debtors, the Court or the Office of the Clerk of the Bankruptcy Court. Prime Clerk will be paid its customary hourly rates and will be reimbursed for any necessary out-of-pocket expenses. Michael J. Frishberg, co-president and chief operating officer of Prime Clerk LLC, assured the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. About Dendreon Corp With corporate headquarters in Seattle, Washington, Dendreon Corporation, 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 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 three members to the Official Committee of Unsecured Creditors. DENDREON CORP: Selects AlixPartners as Restructuring Advisors ------------------------------------------------------------- The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware authorized Dendreon Corporation, et al., to employ AlixPartners, LLP, as restructuring advisors. As reported in the Troubled Company Reporter on Nov. 24, 2014, AlixPartners has agreed to provide the following services: * Provide assistance to management in connection with the Debtors' development of its cash flow models and such other related forecasts as may be required. * Provide assistance to management and the Debtors' counsel and investment bankers, as necessary, with respect to their negotiations with creditors and potential acquirers of Debtors' assets. * Assist in preparing for and filing a bankruptcy petition, coordinating and providing administrative support for the proceeding. * Assist with the preparation of the statement of affairs, schedules and other regular reports required by the Court. * Assist, as requested, in analyzing preferences and other avoidance actions, as required. * Manage the claims and claims reconciliation processes. * Assist the Debtors with electronic data collection. * Assist the Debtors in other business and financial aspects of the Chapter 11 Cases, including, but not limited to, development of a Disclosure Statement and Plan of Reorganization. * Provide assistance in areas as testimony before the Court on matters that are within the scope of this engagement and within AlixPartners' area of testimonial competencies. * Assist with other matters as may be requested that fall within AlixPartners' expertise and that are mutually agreeable. The current standard hourly rates charged by AlixPartners in respect of the professionals anticipated to be assigned to the Debtors' cases are as follows: Managing Directors $875 to $1,010 Directors $665 to $815 Vice Presidents $490 to $590 Associates $335 to $435 Analysts $290 to $320 Paraprofessionals $220 to $240 In addition to compensation for professional services, AlixPartners will seek reimbursement for reasonable and necessary expenses incurred in connection with the Chapter 11 cases. According to AlixPartners' books and records, during the 90-day period prior to the Petition Date, AlixPartners received approximately $1,342,726 from the Debtors for professional services performed and expenses incurred. Further, AlixPartners' current estimate is that it has received unapplied advance payments from the Debtors in excess of prepetition billings in the amount of approximately $250,000, which amount is subject to final determination after all prepetition billings and collections are reconciled. Alan D. Holtz, a managing director of AlixPartners, LLP, assured the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Mr. Holtz, however, discloses, among other things, that a former confidential client of AlixPartners in matters unrelated to the Debtors is a vendor to the Debtors and ADP Inc., a vendor to the Debtors, is a bondholder and vendor to current and former AlixPartners clients in matters unrelated to the Debtors. About Dendreon Corp With corporate headquarters in Seattle, Washington, Dendreon Corporation, 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 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 three members to the Official Committee of Unsecured Creditors. DOLAN COMPANY: Court Enters Final Decree Closing Cases ------------------------------------------------------ At the request of The Dolan Company, et al., Judge Brendan L. Shannon, entered a final decree closing the Debtors' Chapter 11 cases effective March 16, 2015. In seeking the order, the Reorganized Debtors explained that their remaining tasks in the Chapter 11 cases are limited to the submission of their final quarterly report and payment of quarterly fees and certain other miscellaneous activities. On June 9, 2014, the Court entered an order confirming the Debtors' Modified Joint Prepackaged Plan of Reorganization. On June 12, 2014, the Debtors successfully consummated the Plan and emerged from chapter 11 as the Reorganized Debtors. Pursuant to the Plan, the Reorganized Debtors operate each of DiscoverReady LLC -- the Professional Services Division's non Debtor subsidiary that is a leader in the e-discovery business -- and the Debtors' other businesses, as separate and distinct businesses. Following the Effective Date, the Reorganized Debtors disposed of substantially all open issues in the Chapter 11 Cases, and distributions to creditors in all classes entitled to recoveries under the Plan have been made in accordance with the terms of the Plan or, will be made in the ordinary course under the terms of the Plan. All pending motions, all objections to claims, and all adversary proceedings have been resolved. The Reorganized Debtors will pay estimated quarterly fees for the first quarter of 2015. The Reorganized Debtors will submit to the U.S. Trustee a (final) quarterly report for the first quarter of 2015 promptly upon completion of such report and pay further quarterly fees (if any) due to the U.S. Trustee. The Debtors' attorneys can be reached at: Laura Davis Jones, Esq. Michael R. Seidl, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, Delaware 19899-8705 (courier 19801) Telephone: (302) 652-4100 Facsimile: (302) 652-4400 E-mail: ljones@pszjlaw.com mseidl@pszjlaw.cgm - and - Mare Kieselstein, P.C., Esq. Jeffrey D. Pawlitz, Esq. Joseph M. Graham, Esq. KIRKLAND & ELLIS LLP 300 North LaSalle Chicago, Illinois 60654 Telephone: (312) 862-2000 Facsimile: (312) 862-2200 E-mail: rnarc.kieselstein@kirkland.cpm jeffrey.pawlitz@kirkland.com joe.graham@kirkland.com About The Dolan Company Minneapolis, Minn.-based The Dolan Company (OTC:DOLN) and its subsidiaries provide professional services and business information to the legal, financial and real estate sectors. The Dolan Company and several affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 14-10614 to 14-10637) on March 23, 2014. The Company has said it expects to emerge from bankruptcy within two months. Judge Brendan L. Shannon oversees the cases. Marc Kieselstein, P.C., Jeffrey D. Pawlitz, Esq., and Joseph M. Graham, Esq., at Kirkland & Ellis LLP, serve as the Debtors' counsel. Timothy P. Cairns, Esq., Laura Davis Jones, Esq., and Michael Seidl, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel. Kevin Nystrom serves as the Company's chief restructuring officer. Faegre Baker Daniels LLP serves as the Debtors' special counsel; Peter J. Solomon Company serves as financial advisors; and Kurtzman Carson Consultants, LLC, serves s noticing and balloting agent. Deloitte Tax LLP serves as tax advisors. Zolfo Cooper LLC also serves as advisors. Dolan listed $236.2 million in total assets and $185.9 million in total debts at Sept. 30, 2013. The petitions were signed by Vicki J. Duncomb, authorized signatory. Global investment management firm T. Rowe Price Associates, Inc., owns nearly 10% of the company's stock, while James Dolan owns 6.8%. Dolan's e-discovery business, DiscoverReady LLC, did not file a chapter 11 petition and its operations will not be affected by the chapter 11 process. On March 18, 2014, Dolan and its lenders and certain of its swap counterparties executed a restructuring support agreement that sets forth the material terms of the chapter 11 restructuring and secures the support of the secured creditors for that process. In accordance with the RSA, the Company commenced solicitation for votes on the chapter 11 plan from secured creditors, the only parties entitled to vote under the plan of reorganization. The chapter 11 plan contemplates that the secured lenders will become the owner of DiscoverReady and The Dolan Company upon the completion of the restructuring process and each business will be operated as separate and distinct entities. Investment funds managed by Bayside Capital, Inc. will become the majority owner of DiscoverReady and The Dolan Company. Bayside Capital is an affiliate of H.I.G. Capital, a global private investment firm with more than $15 billion of equity capital under management. The chapter 11 plan process will allow the filing subsidiaries of the Company to deleverage its capital structure by reducing its projected secured debt obligations from approximately $170 million to approximately $50 million. The RSA also secures support from the lenders to refinance DiscoverReady's capital structure with a $10 million unfunded secured revolving facility. The existing preferred and common shares will be cancelled and will not receive a recovery in the chapter 11 plan. After emergence from bankruptcy, both The Dolan Company and DiscoverReady LLC will be privately held companies. The lenders are to provide a $10 million DIP loan to fund the cash needs of the Company and DiscoverReady through the reorganization process. Bayside Capital is represented in the case by Akin Gump Strauss Hauer & Feld LLP's Michael S. Stamer, Esq., and Sarah Link Schultz, Esq. An Official Committee of Equity Security Holders is represented by Neil B. Glassman, Esq., GianClaudio Finizio, Esq., and Justin R. Alberto, Esq., at Bayard, P.A., in Wilmington, Delaware; Robert J. Stark, Esq., at Brown Rudnick LLP, in New York; and Steven B. Levine, Esq., at Brown Rudnick LLP, in Boston, Massachusetts. The Debtors have filed a request to disband the Equity Committee, given the "hopeless insolvency" of their estates. Dolan Company and its subsidiaries on June 12 disclosed that they have emerged from chapter 11 only 81 days after voluntarily filing for bankruptcy protection. As previously announced, the United States Bankruptcy Court for the District of Delaware confirmed the Company's plan of reorganization on June 9, 2014. DORAL FINANCIAL: Eyeing Puerto Rico Gov't for Ch. 11 Recoveries --------------------------------------------------------------- Law360 reported that Doral Financial Corp., driven to bankruptcy by the loss of a $229 million tax refund claim against the Puerto Rican government, may yet be able to monetize its long-running tax dispute with the commonwealth to repay creditors, its attorney said. According to the report, the Debtor's counsel, Mark Bane of Ropes & Gray LLP, said that Doral would actively explore litigation claims that, while "speculative" at this point, could provide a source of recovery for bondholders owed $207 million. Mr. Bane adds that Doral is negotiating with creditors that financed the construction of an office building in San Juan owned by Doral Properties, one of the nondebtor units. A consensual deal would let Doral sell off the building and pay down $30 million in bond debt without incurring the cost of placing Doral Properties into Chapter 11, he said, according to Law360. Otherwise, Doral Properties could follow the parent into Chapter 11, the lawyer noted, Law360 said. 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. The U.S. trustee overseeing the Chapter 11 case of Doral Financial Corp. appointed five creditors of the company to serve on the official committee of unsecured creditors. ECOSPHERE TECHNOLOGIES: Brisben Reports 21.8% Stake as of March 20 ------------------------------------------------------------------ In a Schedule 13D filed with the Securities and Exchange Commission, William O. Brisben disclosed that as of March 20, 2015, he beneficially owned 44,614,406 shares of common stock of Ecosphere Technologies, Inc., which represents 21.8 percent based upon 164,147,155 shares reported as outstanding as of Nov. 7, 2014, in the issuer's quarterly report on Form 10-Q filed with the Securities and Exchange Commission on Nov. 11, 2014. A copy of the regulatory filing is available for free at: http://is.gd/TOl1vC About Ecosphere Technologies Stuart, Florida-based Ecosphere Technologies (OTC BB: ESPH) -- http://www.ecospheretech.com/-- is a water engineering, technology licensing and environmental services company that designs, develops and manufactures wastewater treatment solutions for industrial markets. Ecosphere, through its majority-owned subsidiary Ecosphere Energy Services, LLC, provides energy exploration companies with an onsite, chemical free method to kill bacteria and reduce scaling during fracturing and flowback operations. Ecosphere Technologies reported net income of $19.2 million in 2013 following net income of $1.05 million in 2012. As of Sept. 30, 2014, the Company had $16.8 million in total assets, $3.59 million in total liabilities, $3.78 million in total redeemable convertible cumulative preferred stock, and $9.41 million in total equity. Salberg & Company, P.A., in Boca Raton, 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 had a loss from operations and cash used in operations along with an accumulated deficit. These matters raise substantial doubt about the Company's ability to continue as a going concern. EDELMIRO TOLEDO-CARDONA: Mortgage Row Has Court Rethinking Ruling ----------------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that the U.S. Supreme Court heard two cases that give hope to millions of Americans who bought houses at the peak of the housing boom and wound up with homes worth less than their mortgage debt. According to the report, the question before the court is whether a person can use Chapter 7 of the Bankruptcy Code to completely eliminate a second mortgage when a home is worth less than the first-mortgage debt. The justices' queries and comments at oral argument suggested they may help homeowners, at the expense of lenders who extended second and third mortgages, the report related. Three federal courts of appeal have said a 1992 Supreme Court decision, known as Dewsnup, requires keeping all mortgages alive after bankruptcy, the report added. The 1992 case was decided by a 6-2 vote, over a vigorous dissent by Justice Antonin Scalia, who was joined by David Souter, now retired, while Justice Clarence Thomas didn't participate, the report related. The cases are Bank of America v. Toledo-Cardona, 14-163 and Bank of America v. Caulkett, U.S. Supreme Court 13-1421 (Washington). EGPI FIRECREEK: Directors and Officers Named -------------------------------------------- Effective March 24, 2015, by majority consent of the EGPI Firecreek, Inc. shareholders of record at March 24, 2015, four members were elected to the Company's Board of Directors, namely: Dennis R. Alexander, Michael Trapp, Michael D. Brown and David Taylor. The Directors will hold their respective office until the Company's Annual Meeting of Shareholders in 2016 or until their successors are duly elected and qualified. Dennis R. Alexander has served as chairman, CEO, and chief financial officer of the Company since May 21, 2009, having served as chairman, president and chief financial officer of EGPI and Firecreek Petroleum, Inc. since Feb. 10, 2007. Michael Trapp has served as a director of the Company since May 21, 2009, having been appointed as a Director of EGPI on Dec. 3, 2008. David Taylor has served as a director of the Company since Sept. 16, 2010. Since March 20, 2014, he serves as a director, as president, as secretary, treasurer, principal financial and accounting officer of XR Energy, Inc. Michael D. Brown was appointed to the Board of Directors of the Company on July 6, 2009. Mr. Brown was nominated by president George W. Bush as the first Under Secretary of Emergency Preparedness and Response (EP&R) in the newly created Department of Homeland Security in January 2003. Also effective March 24, 2015, by majority consent of the EGPI Firecreek, Inc. directors of record at March 24, 2013, three persons were elected as officers of the Company, namely: Dennis R. Alexander, Michael Trapp and Deborah L. Alexander. The Officers will hold their respective office until the Company's Annual Meeting of Directors in 2016 or until their successors are duly elected and qualified. Effective March 24, 2015 The Board of Directors of the Company reconfirmed certain changes to certain committees: The Audit Committee and a combined Nominating and Compensation and Stock Option Committee. The Audit Committee is composed initially of two members: Ms. Joanne Sylvanus, its Chairman, and Dennis Alexander, member. The combined Nomination and the Compensation and Stock Option Committee are composed initially of three members: Mr. Mike Trapp, David Taylor, and Dennis Alexander, members. A full-text copy of the Form 8-K report is available at: http://is.gd/UmmygR About EGPI Firecreek Scottsdale, Ariz.-based EGPI Firecreek, Inc. (OTC BB: EFIR) was formerly known as Energy Producers, Inc., an oil and gas production company focusing on the recovery and development of oil and natural gas. The Company has been focused on oil and gas activities for development of interests held that were acquired in Texas and Wyoming for the production of oil and natural gas through Dec. 2, 2008. Historically in its 2005 fiscal year, the Company initiated a program to review domestic oil and gas prospects and targets. As a result, EGPI acquired non-operating oil and gas interests in a project titled Ten Mile Draw located in Sweetwater County, Wyoming for the development and production of natural gas. In July 2007, the Company acquired and began production of oil at the 2,000 plus acre Fant Ranch Unit in Knox County, Texas. This was followed by the acquisition and commencement in March 2008 of oil and gas production at the J.B. Tubb Leasehold Estate located in the Amoco Crawar Field in Ward County, Texas. EGPI Firecreek disclosed a net loss of $6.08 million on $124,157 of total revenue for the year ended Dec. 31, 2012, as compared with a net loss of $4.97 million on $293,712 of total revenue for the year ended Dec. 31, 2011. The Company's balance sheet at March 31, 2013, showed $1.31 million in total assets, $6.92 million in total liabilities, all current, $1.86 million in series D preferred stock, and a $7.48 million total shareholders' deficit. M&K CPAS, PLLC, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that he Company has suffered recurring losses and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern. ELBIT IMAGING: Posts NIS 784 Million Profit in 2014 --------------------------------------------------- Elbit Imaging Ltd. reported profit of NIS 784 million on NIS 399 million of total revenues for the year ended Dec. 31, 2014, compared to a loss of NIS 1.56 billion on NIS 211 million of total revenues for the year ended Dec. 31, 2013. As of Dec. 31, 2014, Elbit had NIS $3.66 billion in total assets, NIS 2.94 billion in total liabilities, and NIS 712 million in shareholders' equity. As a consequence of the closing of the Company's Plan of Arrangement in which 508,027,457 new shares were issued, Europe Israel (M.M.S.) Ltd. has been diluted to approximately 2% of the issued and outstanding share capital of the Company and therefore ceased to be the controlling shareholder of the Company. In addition, on July 21, 2013, the Israeli District Court in Tel-Aviv Jaffa had appointed a receiver for Europe Israel and later on the receiver was appointed also as the liquidator of Europe Israel which had ceased to be a going concern. A full-text copy of the Report is available for free at: http://is.gd/wFSXsC About Elbit Imaging Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) hold investments in real estate and medical companies. The Company, through its subsidiaries, also develops shopping and entertainment centers in Central Europe and invests in and manages hotels. Since February 2013, Elbit has intensively endeavored to come to an arrangement with its creditors. Elbit has said it has been hanging by a thread for more than five months. It has encountered cash flow difficulties and this burdens its day to day activities, and it certainly cannot make the necessary investments to improve its assets. In light of the arrangement proceedings, and according to the demands of most of the bondholders, as well as an agreement that was signed on March 19, 2013, between Elbit and the Trustees of six out of eight series of bonds, Elbit is prohibited, inter alia, from paying off its debts to the financial creditors -- and as a result a petition to liquidate Elbit was filed, and Bank Hapoalim has declared its debts immediately payable, threatening to realize pledges that were given to the Bank on material assets of the Company -- and Elbit undertook not to sell material assets of the Company and not to perform any transaction that is not during its ordinary course of business without giving an advance notice to the trustees. Accountant Rony Elroy has been appointed as expert for examining the debt arrangement in the Company. In July 2013, Elbit Imaging's controlling shareholders, Europe- Israel MMS Ltd. and Mr. Mordechay Zisser, notified the Company that the Tel Aviv District Court has appointed Adv. Giroa Erdinast as a receiver with regards to the ordinary shares of the Company held by Europe Israel securing Europe Israel's obligations under its loan agreement with Bank Hapoalim B.M. The judgment stated that the Receiver is not authorized to sell the Company's shares at this stage. Following a request of Europe-Israel, the Court also delayed any action to be taken with regards to the sale of those shares for a period of 60 days. Europe Israel and Mr. Zisser have also notified the Company that they utterly reject the Bank's claims and intend to appeal the Court's ruling. ENDEAVOUR INT'L: Lenders Want $440-Mil. Lien Probe Halted --------------------------------------------------------- Law360 reported that bank lenders helping finance Endeavour International Corp.'s push to restructure $1.2 billion in debt through Chapter 11 moved to cut off an investigation into the validity of their liens, asking the presiding bankruptcy judge to deny a requested deadline extension. According to the report, in an objection filed in Delaware bankruptcy court, an informal committee of term lenders to Endeavour's non-bankrupt U.K. division said that unsecured creditors do not deserve more time to investigate and potentially challenge senior liens asserted against the oil and gas exploration company. About Endeavour International Houston, Texas-based Endeavour International Corporation (OTC: ENDRQ) (LSE: ENDV) is an oil and gas exploration and production company focused on the acquisition, exploration and development of energy reserves in the North Sea and the United States. On Oct. 10, 2014, Endeavour International and five affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code after reaching a restructuring deal with noteholders. The cases are pending joint administration under Endeavour Operating Corp.'s Case No. 14-12308 before the Honorable Kevin J. Carey (Bankr. D. Del.). As of June 30, 2014, the Company had $1.55 billion in total assets, $1.55 billion in total liabilities, $43.7 million in series c convertible preferred stock, and a $41.5 million stockholders' deficit. The Debtors have tapped Weil, Gotshal & Manges LLP as counsel; Richards, Layton & Finger, P.A., as co-counsel; The Blackstone Group L.P., as financial advisor; AlixPartners, LLP, as restructuring advisor; and Kurtzman Carson Consultants LLC, as claims and noticing agent. The U.S. Trustee for Region 3 has appointed three members to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Endeavour Operating Corporation and its debtor affiliates. The Committee is represented by David M. Bennett, Esq., Cassandra Sepanik Shoemaker, Esq., and Demetra L. Liggins, Esq., at Thompson & Knight LLP, and Neil B. Glassman, Esq., Scott D. Cousins, Esq., and Evan T. Miller, Esq., at Bayard, P.A. Alvarez & Marsal North America, LLC, serves as financial advisors to the Committee, while UpShot Services LLC serves as website administrator. * * * U.S. Bankruptcy Judge Kevin J. Carey in of Delaware, on Dec. 22, 2014, approved the disclosure statement explaining Endeavour Operating Corporation, et al.'s joint plan of reorganization. The Amended Plan, dated Dec. 19, 2014, provides that it is supported by creditors who collectively hold 82.99% of the March 2018 Notes Claims (Class 3), 70.88% of the June 2018 Notes Claims (Class 4), 99.75% of the 7.5% Convertible Bonds Claims (Class 5), and 69.08% of the Convertible Notes Claims (Class 6). The Amended Plan also provides that holders of general unsecured claims will recover an estimated 15% of the total claims amount, which is estimated to be $6,000,000. The hearing to consider confirmation of the Amended Joint Plan of Reorganization, dated Dec. 23, 2014, of Endeavour Operating Corporation and its affiliated debtors, including Endeavour International Corporation, has been adjourned to a date to be determined. FAIRFIELD SENTRY: Baupost Pushes for OK on Madoff Claim ------------------------------------------------------- Law360 reported that hedge fund Baupost Group LLC bumped heads with U.S. Bankruptcy Judge Stuart M. Bernstein, who is overseeing the Chapter 15 case of Bernard Madoff feeder fund Fairfield Sentry, pushing to consummate its deeply discounted purchase of a claim against the Bernard Madoff bankruptcy estate that later turned out to be worth $230 million and appeared to be on track until it was halted by the Second Circuit in January. About Fairfield Sentry Fairfield Sentry is being liquidated under the supervision of the Commercial Division of the High Court of Justice in the British Virgin Islands. It is one of the funds owned by the Fairfield Greenwich Group, an investment firm founded in 1983 in New York City. Fairfield Sentry and other Greenwich funds had among the largest exposures to the Bernard L. Madoff fraud. Fairfield Sentry Limited filed for Chapter 15 protection (Bankr. S.D.N.Y. Case No. 10-13164) on June 14, 2010. Fairfield Sentry became the subject of a BVI liquidation, and a BVI court appointed the Liquidator under BVI law. The Liquidator then sought recognition of the BVI liquidation as a foreign main proceeding under Chapter 15 of the Code in the Southern District of New York. The Bankruptcy Court entered an order granting recognition of the Fairfield Sentry case on July 22, 2010, enabling the Liquidator to use the U.S. Bankruptcy Court to protect and administer Fairfield Sentry's assets in the U.S. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). From recoveries in lawsuits coupled with money advanced by SIPC, Mr. Picard has commenced distributions to victims. The fifth pro rata interim distribution slated of Jan. 15, 2015, totaled $322 million, and brought the amount distributed to eligible claimants to $7.2 billion, which includes more than $823 million in advances committed to the SIPA Trustee for distribution to allowed claimants by the SIPC. As of Nov. 30, 2014, the SIPA Trustee has recovered or reached agreements to recover approximately $10.5 billion since his appointment in December 2008. FIRSTPAY INC: Trustee Takes $28-Mil. Tax Row to High Court ---------------------------------------------------------- Law360 reported that the trustee for bankrupt payroll processing firm FirstPay Inc. has asked the U.S. Supreme Court to reconsider the Fourth Circuit's decision barring him from reclaiming $28 million in federal payroll tax payments the company sent to the Internal Revenue Service. According to the report, the Fourth Circuit sided with the IRS in December, saying FirstPay could not recover funds the company sent to the agency within 90 days before filing for bankruptcy because it lacked sufficient interest in the property and merely held it in an express trust for its clients. The appellate court's decision flew in the face of Supreme Court precedent and law followed by federal courts requiring parties that claim to have received money from a common-law trust to trace the source of the funds, trustee Michael G. Wolff said in a petition filed March 11. The case is Wolff v. U.S., case number 14-1098, in the U.S. Supreme Court. FL 6801: Soothes Condo Owners' Chap. 11 Complaints -------------------------------------------------- Law360 reported that lawyers for the Canyon Ranch hotel-condominium project backed by Lehman Brothers Holdings Inc. unveiled a settlement of $341 million in damages claimed by condo unit holders who fought against the Miami development's bankruptcy sale to private equity firm Z Capital Partners. According to the report, the deal signals peace between former Canyon Ranch owner FL 6801 Spirits LLC and more than 500 condo buyers that have been vocal opponents throughout the mixed-use hotel and residential project's eight-month bankruptcy. About FL 6801 Spirits FL 6801 Spirits LLC, a wholly owned subsidiary of Lehman Brothers Holdings Inc. and three of its wholly owned subsidiaries filed voluntary Chapter 11 petitions, seeking bankruptcy protection for their condominium hotel property in Miami Beach. The affiliates are FL 6801 Collins North LLC, FL 6801 Collins Central LLC, and FL 6801 Collins South LLC. FL Spirits' Canyon Ranch Living Hotel and Spa is a luxury full-service, ocean front condominium hotel located at the site of the old Carillon Hotel in Miami Beach, Florida. The current operator of the hotel, Canyon Ranch Living, is not a debtor, and operations at the property are expected to continue without interruption. FL Spirits and the three affiliates companies have sought joint administration, with pleadings to be maintained at FL 6801's case docket (Bankr. S.D.N.Y. Lead Case No. 14-11691). FL Spirits has tapped Togut, Segal & Segal LLP as general bankruptcy counsel, Shutts & Bowen LLP as special real estate counsel, CBRE, Inc., as real estate broker, and Prime Clerk as claims and notice agent. Lehman Brothers filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 08-13555) on Sept. 15, 2008. Lehman's bankruptcy Petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Lehman's Chapter 11 plan became effective on March 6, 2012. The Associations are represented by Alan F. Kaufman, Esq., at Hinshaw & Culbertson LLP; and Charles M. Tatelbaum, Esq., at Tripp Scott PA. FLINTKOTE CO: Plan Confirmation Hearing Scheduled for August 10 --------------------------------------------------------------- The following statement is being issued regarding In re The Flintkote Company and Flintkote Mines Limited, Case No. 04-11300 (MFW) (Jointly Administered). TYPES OF PRODUCTS: During the 1930s to the 1980s, some products sold by The Flintkote Company and Flintkote Mines Limited (the "Debtors") contained asbestos. These products could have included floor tile, roofing shingles, joint compound, fiber pipe, liquid products, cement board, cement siding, cement pipe, asphalt and other products. Persons or entities exposed to, or harmed by, the Debtors' asbestos or asbestos-containing products may have personal injury, wrongful death or other claims against the Debtors. You do not need to (i) have been diagnosed, (ii) have symptoms, or (iii) be impaired to be affected by the Plan (defined below). If you believe you may have been exposed to, or harmed by the Debtors' products, you may be entitled to vote on confirmation of the Plan. You should carefully read this notice and the important documents located at http://www.flintkotebankruptcy.com PLAN OF REORGANIZATION: The Debtors filed for bankruptcy in 2004. On February 9, 2015, the Debtors filed a modified joint plan of reorganization (the "Plan") with the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). The Plan includes the terms of a settlement reached between the Debtors and their former indirect parent company, Imperial Tobacco Canada Limited ("ITCAN"). The Plan has been jointly proposed by the Debtors, the Asbestos Claimants Committee and the Future Claimants Representative (collectively, the "Plan Proponents"). As background, the Plan is a modified version of a bankruptcy plan on which Debtors previously solicited votes in 2008 and 2009, and which was confirmed by the Bankruptcy Court on December 21, 2012 (the "Prior Plan"). A document describing how the Plan differs from the Prior Plan (the "Disclosure Statement Supplement"), which the Bankruptcy Court approved on March 17, 2015, a copy of the Plan itself and related voting materials (a "Resolicitation Package"), has been mailed to known holders of claims against the Debtors or the claimants' lawyers. THE TRUST: The Plan provides for a trust to be established to pay eligible asbestos personal injury claims against the Debtors (the "Trust"). The Plan provides that all current and future holders of asbestos personal injury claims will be forever prohibited from asserting claims directly against the Debtors and other parties protected under the Plan, including ITCAN. Such claimants can receive money only from the Trust. The Plan and the Disclosure Statement Supplement contain important additional details and are available at http://www.flintkotebankruptcy.com SUPPLEMENTAL SETTLEMENT BAR ORDER: Under the Plan, ITCAN will also obtain protection from certain claims by a settlement bar order, which is described more particularly in the Plan and Disclosure Statement Supplement. VOTING PROCEDURES: The Bankruptcy Court has issued an order describing who can vote on the Plan, how to vote, and how votes will be counted. The Disclosure Statement Supplement has information that will help you decide whether and how to vote on the Plan if you are entitled to do so. Votes cast on the Prior Plan will be counted as votes on the Plan, unless a holder changes such vote. If you voted on the Prior Plan and do not wish to change your vote, you do not need to submit a ballot. If you did not vote on the Prior Plan, you may obtain and cast a ballot, which would be subject to the Plan Proponents' right to object. To be counted, a completed ballot must be received by the Voting Agent at the address below by 4:00 p.m. (prevailing Eastern time) on June 2, 2015. Any ballot received after that deadline will not be counted. Proof of an asbestos personal injury or wrongful death claim does not need to be filed with the Bankruptcy Court. Special procedures have been established for holders of asbestos personal injury and wrongful death claims to vote on the Plan. Lawyers for holders of these claims may vote on the Plan on behalf of their clients if authorized by their client. If you are unsure whether your lawyer is authorized to vote on your behalf, please contact your lawyer. THE HEARING TO CONFIRM THE PLAN: A hearing to confirm the Plan will be held before the Honorable Mary F. Walrath, United States Bankruptcy Judge, at the United States Bankruptcy Court for the District of Delaware, 824 Market Street, 5th Floor, Wilmington, Delaware 19801, commencing on August 10, 2015 at 10:30 a.m. (prevailing Eastern time). OBJECTING TO THE PLAN: Parties may only object to the changes between the Prior Plan and the Plan, and objections must be submitted in writing and received by July 8, 2015 to be considered. All objections must comply with the requirements in the notice of the Confirmation Hearing, available at http://www.flintkotebankruptcy.com/ HOW TO OBTAIN DOCUMENTS: If you would like additional information about the Plan, Disclosure Statement Supplement and other Trust-related documents (including copies of the Plan, Disclosure Statement Supplement and other Trust-related documents), you may contact the Debtors' Voting Agent at (800) 290-0537, visit http://www.flintkotebankruptcy.comor write to The Flintkote Company and Flintkote Mines Limited, c/o GCG, P.O. Box 10127, Dublin, Ohio 43017-3127. About The Flintkote Company Headquartered in San Francisco, California, The Flintkote Company is engaged in the business of manufacturing, processing and distributing building materials. Flintkote Mines Limited is a subsidiary of Flintkote Company and is engaged in the mining of base-precious metals. The Flintkote Company filed for Chapter 11 protection (Bankr. D. Del. Case No. 04-11300) on April 30, 2004. Flintkote Mines Limited filed for Chapter 11 relief (Bankr. D. Del. Case No. 04-12440) on Aug. 25, 2004. Kevin T. Lantry, Esq., Jeffrey E. Bjork, Esq., Dennis M. Twomey, Esq., Jeremy E. Rosenthal, Esq., and Christina M. Craige, Esq., at Sidley Austin, LLP, in Los Angeles; James E. O'Neill, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Del., represent the Debtors in their restructuring efforts. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, N.Y.; Peter Van N. Lockwood, Esq., Ronald E. Reinsel, Esq., at Caplin & Drysdale, Chartered, in Washington, D.C.; and Philip E. Milch, Esq., at Campbell & Levine, LLC, in Wilmington, Del., represent the Asbestos Claimants Committee as counsel. James J. McMonagle, is the legal representative for future claimants. The FCR has retained Dr. Timothy Wyant as claims evaluation consultant. The FCR is represented by James L. Patton, Jr., Esq., and Edwin J. Harron, Esq., at Young Conaway Stargatt & Taylor, LLP; and Reginald W. Jackson, Esq., at Vorys, Sater, Seymour & Pease LLP. When Flintkote filed for protection from its creditors, it estimated more than $100 million each in assets and debts. When Flintkote Mines Limited filed for protection from its creditors, it estimated assets of $1 million to $50 million, and debts of more than $100 million. The Debtors' Chapter 11 cases have been re-assigned to Judge Mary F. Walrath in line with the retirement of former Bankruptcy Judge Judith Fitzgerald. FUNDAMENTAL LONG TERM: Trustee Says Firm Can't Escape Bankr. Suit ----------------------------------------------------------------- Law360 reported that a health care asset holding company's bankruptcy trustee urged a Florida federal judge to toss Troutman Sanders LLP's appeal of a bankruptcy court order extending the statute of limitations period to bring claims against it, saying the firm lacks standing to appeal an order that didn't aggrieve it. According to the report, in her motion, trustee Beth Ann Scharrer argued that the statute of limitations extension only poses a threat to Troutman Sanders LLP's interest in avoiding liability, which isn't enough to grant it standing. The case is Troutman Sanders LLP v. Scharrer, case number 8:14-cv-02223, in the U.S. District Court for the Middle District of Florida. FUSION TELECOMMUNICATIONS: Reports $4.3 Million Net Loss in 2014 ---------------------------------------------------------------- Fusion Telecommunications International, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss applicable to common shareholders of $4.31 million on $92.05 million of revenues for the year ended Dec. 31, 2014, compared to a net loss applicable to common shareholders of $5.48 million on $61.49 million of revenues for the year ended Dec. 31, 2013. The Company previously reported a net loss applicable to common stockholders of $5.61 million in 2012. As of Dec. 31, 2014, the Company had $73.74 million in total assets, $60.45 million in total liabilities and $13.28 million in total stockholders' equity. A full-text copy of the Form 10-K is available for free at: http://is.gd/fN6OWY About Fusion Telecommunications New York City-based Fusion Telecommunications International, Inc., (OTC BB: FSNN) is a provider of Internet Protocol ("IP") based digital voice and data communications services to corporations and carriers worldwide. GETTY PETROLEUM: Reaches $170-Mil. Claim Deal with REIT ------------------------------------------------------- Law360 reported that the liquidator for Getty Petroleum Marketing Inc. asked a New York bankruptcy judge to sign off on a deal over $266 million in claims asserted by units of real estate investment trust and creditor Getty Realty Corp. that gives the REIT a claim of $170 million with a $550,000 cash distribution. About Getty Petroleum A remnant of J. Paul Getty's oil empire, Getty Petroleum Marketing markets gasoline, hydraulic fluids, and lubricating oils through a network of gas stations. Getty Petroleum had more than 800 gas stations in the Mid-Atlantic states. After scaling back the company's operations to cut debt, in 2011 LUKOIL sold Getty Petroleum Marketing to investment firm Cambridge Petroleum Holding for an undisclosed price. Getty Petroleum and three affiliates filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case Nos. 11-15606 to 11-15609) on Dec. 5, 2011. Judge Shelley C. Chapman presides over the case. Getty Petroleum disclosed $46.6 million in assets and $316.8 million in liabilities as of the Petition Date. Loring I. Fenton, Esq., John H. Bae, Esq., Kaitlin R. Walsh, Esq., and Michael J. Schrader, Esq., at Greenberg Traurig, LLP, in New York, N.Y., serve as the Debtors' counsel. Ross, Rosenthal & Company, LLP, serves as accountants for the Debtors. The Official Committee of Unsecured Creditors is represented by Wilmer Cutler Pickering Hale and Dorr LLP. Alvarez & Marsal North America, LLC, serves as the Committee's financial advisors. The TCR on Aug. 30, 2012, reported that Getty Petroleum's creditors' committee revised the liquidating Chapter 11 plan twice and won approval from the bankruptcy judge in an Aug. 24, 2012 confirmation order. Confirming the plan required the use of the cramdown procedure because only 40% of $240 million in unsecured claims voted in favor. GOURMET EXPRESS: Seeks Approval of $650,000 Loan ------------------------------------------------ Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that Gourmet Express LLC, a maker of frozen skillet meals for retailers including Wal-Mart Stores Inc., asked for approval of a $650,000 loan because its cash is insufficient to fund operations in bankruptcy. According to the report, to sustain the business in the meantime, the court approved interim use of so-called cash collateral securing the Debtor's prepetition indebtedness from Genesis Merchant Partners LP, owed about $15.7 million, and Frozen Foods LLC, owed $300,000. Gourmet Express Acquisition Fund, LLC, and its three affiliates sought Chapter 11 bankruptcy protection on March 16, 2015, (Bankr. D. Md., Case No. 15-13670). The case is assigned to Judge Nancy V. Alquist. The Debtors' counsel is Dennis J. Shaffer, Esq., at Whiteford, Taylor, & Preston, LLP, in Baltimore, Maryland. Traxi, LLC, serves as the Debtors' financial advisor. GREAT PLAINS: April 9 Hearing on Sixth Amended Plan --------------------------------------------------- U.S. Bankruptcy Judge Thomas P. Agresti will convene a hearing on April 9, 2015, at 3:00 p.m., to further consider approval of the Sixth Amended Plan of Reorganization for Great Plains Exploration, LLC. At the March 12 status conference, the Court said that the overall prospects for the Sixth Amended Plan are not promising, however, prior to finally deciding the matters, the Court will give the Debtor an opportunity to further explain the Plan and for parties to further articulate their positions at a hearing. The Court further advised the Debtors, and reiterated for the sake of absolute clarity, that for the Sixth Amended Plan to have any chance of a favorable reception, the proposed financing would have to be locked in place by the time of the hearing such that the only remaining condition would be approval of the Court. No further written responses or objections were required to be filed prior to the April 9 hearing because the Court has heard counsels' oral objections to the Sixth Amended Plan and the motions raised at the March 12 status conference. On Feb. 27, 2015, the Debtors filed similar Sixth Amended Plan. Much like the Debtors' five prior plans, upon an initial review by the Court the Sixth Amended Plan appears speculative at best and is once again based on the Debtors obtaining financing from an unknown source without the terms fully disclosed. The Debtors, in their motion to approve the Sixth Amended Plan, stated that while cooperating with the trustee in the operation of the businesses of the Debtors, Richard Osborne has secured conditional approval for a loan in the amount of $4 million from Private Capital Group. As a result of the conditional approval of the loan, the Debtors have secured the requisite capital to fund the Sixth Amended Plan. The Sixth Amended Plan proposes to use the loan proceeds: (1) to satisfy claim of RBS Citizens, N.A. by paying $3 million to RBS in exchange for RBS assigning to Private Capital, without recourse, the claims and liens held by RBS; (2) to pay the allowed claim of 1st Source Bank; and (3) to fund the other payments required on the Effective Date of the Sixth Amended Plan. The Debtor said that the Fifth Amended Disclosure Statement should be deemed to provide adequate information to voting creditors, as required by Sections 1125 and 1127 of the Bankruptcy Code. The Debtor requested that the Court grant the Debtor permission to immediately commence balloting for the Sixth Amended Plan. About John D. Oil & Gas; OZ Gas; and Great Plains Exploration Mentor, Ohio-based John D. Oil & Gas Co., is in the business of acquiring, exploring, developing, and producing oil and natural gas in Northeast Ohio. The Company has 58 producing wells. The Company also has one self storage facility located in Painesville, Ohio. The self-storage facility is operated through a partnership agreement between Liberty Self-Stor Ltd. and the Company. John D. Oil's affiliated entities -- Oz Gas, LTD., and Great Plains Exploration, LLC -- filed voluntary Chapter 11 petitions (Bankr. W.D. Pa. Case Nos. 12-10057 and 12-10058) on Jan. 11, 2012. Two days later, John D. Oil filed its own Chapter 11 petition (Bankr. W.D. Pa. Case No. 12-10063). On Nov. 21, 2011, at the request of the lender RBS Citizens, N.A., dba Charter One, a receiver was appointed for all three corporate Debtors, in the United States District Court for the Northern District of Ohio at case No. 11-cv-2089-CAB. District Judge Christopher A. Boyko issued an order appointing Mark E. Dottore as receiver. The Receivership Order was appealed to the Sixth Circuit Court of Appeals on Dec. 19, 2011, and the appeal is currently pending. Judge Thomas P. Agresti oversees the Chapter 11 cases. Robert S. Bernstein, Esq., at Bernstein Law Firm P.C., serves as counsel to the Debtors. Each of Great Plains and Oz Gas estimated $10 million to $50 million in assets and debts. John D. Oil's balance sheet at Dec. 31, 2011, showed $6.98 million in total assets, $13.26 million in total liabilities, and a stockholders' deficit of $6.28 million. The petitions were signed by Richard M. Osborne, CEO. The United States Trustee said a committee under 11 U.S.C. Sec. 1102 has not been appointed because no unsecured creditor responded to the U.S. Trustee's communication for service on the committee. GREAT PLAINS: Trustee Taps Cincinnati Industrial as Auctioneer -------------------------------------------------------------- Guy C. Fustine, the Chapter 11 trustee for Great Plains Exploration, LLC, asks the Bankruptcy Court for authorization to (i) sell the Debtor's assets; and (ii) employ Cincinnati Industrial Auctioneers, Inc., as auctioneer for the Debtor's assets. The auctioneer will sell at public auction the Debtor's personal property located in Tidioute, Pennsylvania; Mentor, Ohio; and Winifred, Montana. Personal property includes equipment and vehicles owned by the Debtor. The Trustee has determined that certain pieces of equipment and certain vehicles are no longer necessary for the operation of the business on a going-forward basis. The assets are divided into three groups based upon their current location: one group of assets is located in Tidioute, Pennsylvania; one group of assets is located in Mentor, Ohio; and, one group of assets is located in Winifred, Montana. The Assets are owned by the Debtor or by the Debtor's affiliate, Oz Gas, Ltd. The auction contract includes, among other things: -- a price guaranty in the amount of $1,550,000; -- a 10% percent buyer's premium to compensate the auctioneer for its services; and -- the buyer's premium for webcast auction buyers is 13%. The auctioneer can be reached at: CINCINNATI INDUSTRIAL AUCTIONEERS, INC. 2020 Dunlap Street Cincinnati, OH 45214 E-mail: info@cia-auction.com Web site: http://www.cia-auction.com About John D. Oil & Gas; OZ Gas; and Great Plains Exploration Mentor, Ohio-based John D. Oil & Gas Co., is in the business of acquiring, exploring, developing, and producing oil and natural gas in Northeast Ohio. The Company has 58 producing wells. The Company also has one self storage facility located in Painesville, Ohio. The self-storage facility is operated through a partnership agreement between Liberty Self-Stor Ltd. and the Company. John D. Oil's affiliated entities -- Oz Gas, LTD., and Great Plains Exploration, LLC -- filed voluntary Chapter 11 petitions (Bankr. W.D. Pa. Case Nos. 12-10057 and 12-10058) on Jan. 11, 2012. Two days later, John D. Oil filed its own Chapter 11 petition (Bankr. W.D. Pa. Case No. 12-10063). On Nov. 21, 2011, at the request of the lender RBS Citizens, N.A., dba Charter One, a receiver was appointed for all three corporate Debtors, in the United States District Court for the Northern District of Ohio at case No. 11-cv-2089-CAB. District Judge Christopher A. Boyko issued an order appointing Mark E. Dottore as receiver. The Receivership Order was appealed to the Sixth Circuit Court of Appeals on Dec. 19, 2011, and the appeal is currently pending. Judge Thomas P. Agresti oversees the Chapter 11 cases. Robert S. Bernstein, Esq., at Bernstein Law Firm P.C., serves as counsel to the Debtors. Each of Great Plains and Oz Gas estimated $10 million to $50 million in assets and debts. John D. Oil's balance sheet at Dec. 31, 2011, showed $6.98 million in total assets, $13.26 million in total liabilities, and a stockholders' deficit of $6.28 million. The petitions were signed by Richard M. Osborne, CEO. The United States Trustee said a committee under 11 U.S.C. Sec. 1102 has not been appointed because no unsecured creditor responded to the U.S. Trustee's communication for service on the committee. GRIDWAY ENERGY: Looks to Chap. 7 as Funds Dry Up ------------------------------------------------ Law360 reported that Glacial Energy Holdings Inc. asked a Delaware bankruptcy judge to place what little remains of its Chapter 11 case into Chapter 7 proceedings, saying it could no longer pay the U.S. trustee or other professionals involved in the winding down of its operations. According to the report, though Glacial Energy asked in October for more time to file a Chapter 11 plan, the U.S. Trustee's Office argued that the company had failed to provide the financial updates necessary to prove it could produce a viable plan. 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. GUIDED THERAPEUTICS: Reports $3.2 Million Net Loss in 4th Quarter ----------------------------------------------------------------- Guided Therapeutics, Inc., reported a net loss attributable to common stockholders of $3.22 million on $13,000 of contract and grant revenue for the three months ended Dec. 31, 2014, compared to a net loss attributable to common stockholders of $4.21 million on $346,000 of contract and grant revenue for the same period in 2013. For the year ended Dec. 31, 2014, the Company reported a net loss attributable to common stockholders of $10.03 million on $65,000 of contract and grant revenue compared to a net loss attributable to common stockholders of $10.39 million on $820,000 of contract and grant revenue in 2013. As of Dec. 31, 2014, the Company had $3.03 million in total assets, $7.49 million in total liabilities, and a $4.46 million total stockholders' deficit. Cash on hand at Dec. 31, 2014, was approximately $162,000, as compared to approximately $613,000 at Dec. 31, 2013. "We have laid significant groundwork over the past year, working with our distributors to educate ministries of health and thought leaders throughout the world on the benefits of LuViva," said Gene Cartwright, chief executive officer of Guided Therapeutics. "As a result, we are finally starting to gain some traction in our initial target markets, including Canada, where a new pilot program is set to begin in one of the provinces. Another market scheduled to ramp in 2015 is Turkey, where the Ministry of Health plans to begin their screening program in the second quarter. Other early adopters include Guatemala, Bangladesh, Mexico, and Nigeria, as well as Kenya. In Kenya we are waiting for a tender from the government and could see that country becoming one of our largest markets in 2015. While many of these government opportunities have taken longer than originally anticipated, we do not believe any business has been lost, only pushed out." "In addition to gaining traction with distributors, we anticipate signing new distributorships and shipping product to new markets in 2015, including Russia, China, India and additional countries in Latin America and Asia. As a result, we project our 2015 sales to be at least $3.0 million, which is based on the low end of forecasts from our distributors. While we expect sales will be more heavily weighted toward the second half of the year, this represents a solid increase from the 41 units and 15,540 high-margin, disposable Cervical Guides shipped in 2014." A full-text copy of the press release is available at: http://is.gd/1nLCtL About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. Bankruptcy Warning "The Company's capital-raising efforts are ongoing. If sufficient capital cannot be raised during the second quarter of 2015, the Company has plans to curtail operations by reducing discretionary spending and staffing levels, and attempting to operate by only pursuing activities for which it has external financial support and additional NCI, NHI or other grant funding. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection," the Company said in its annual report for the year ended Dec. 31, 2014. NCI stands for National Cancer Institute. HCAC WEST: Case Summary & 10 Largest Unsecured Creditors -------------------------------------------------------- Debtor: HCAC West, LLC 120 E. De la Guerra Street Santa Barbara, CA 93101 Case No.: 15-10644 Chapter 11 Petition Date: March 31, 2015 Court: United States Bankruptcy Court Central District of California (Santa Barbara) Judge: Hon. Deborah J. Saltzman Debtor's Counsel: Joseph M Sholder, Esq. GRIFFITH & THORNBURGH LLP 8 E Figuerora St Ste 300 Santa Barbara, CA 93101 Tel: 805-965-5131 Fax: 805-965-6751 Email: sholder@g-tlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Robert D. Hughes, managing member. A list of the Debtor's 10 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb15-10644.pdf HCSB FINANCIAL: Incurs $1.4 Million Net Loss in 2014 ---------------------------------------------------- HCSB Financial Corporation filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss available to common shareholders of $1.4 million on $16.09 million of total interest income for the year ended Dec. 31, 2014, compared to net income available to common shareholders of $911,000 on $17.07 million of total interest income for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $422 million in total assets, $433 million in total liabilities, and a $11.2 million total shareholders' deficit. Elliott Davis Decosimo, LLC, in Columbia, South Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has suffered recurring losses that have eroded regulatory capital ratios and the Company's wholly owned subsidiary, Horry County State Bank, is under a regulatory Consent Order with the Federal Deposit Insurance Corporation that requires, among other provisions, capital ratios to be maintained at certain levels. As of Dec. 31, 2014, the Company's subsidiary is considered significantly undercapitalized based on its regulatory capital levels. These considerations raise substantial doubt about the Company's ability to continue as a going concern. The Company also has deferred interest payments on its junior subordinated debentures for 16 consecutive quarters as of Dec. 31, 2014. Under the terms of the debentures, the Company may defer payments for up to 20 consecutive quarters without creating a default. Payment for the 20th quarter interest deferral period will be due in March 2016. If the Company fails to pay the deferred and compounded interest at the end of the deferral period, the trustees of the corresponding trusts, would have the right, after any applicable grace period, to exercise various remedies, including demanding immediate payment in full of the entire outstanding principal amount of the debentures. The balance of the debentures and accrued interest as of December 31, 2014 were $6.19 million and $714,000, respectively. These events also raise substantial doubt about the Company's ability to continue as a going concern as of Dec. 31, 2014. Bankruptcy Warning "The Company has been deferring interest payments on its trust preferred securities since March 2011 and has deferred interest payments for 16 consecutive quarters. The Company is allowed to defer payments for up to 20 consecutive quarterly periods, although interest will also accrue and compound quarterly from the date such deferred interest would have been payable were it not for the extension period. All of the deferred interest, including interest accrued on such deferred interest, is due and payable at the end of the applicable deferral period, which is in March 2016. At December 31, 2014, total accrued interest equaled $714 thousand. The Company will not be able to pay this interest when it becomes due if we are not able to raise a sufficient amount of additional capital for the Bank to be in compliance with the Consent Order and for the Company to make the payments due under the subordinated notes, which are senior to the trust preferred securities. Even if the Company succeeds in raising this capital, it will have to be released from the Written Agreement or obtain approval from the Federal Reserve Bank of Richmond to pay this interest on the trust preferred securities. If this interest is not paid by March 2016, the Company will be in default under the terms of the indenture related to the trust preferred securities. If the Company fails to pay the deferred and compounded interest at the end of the deferral period, the trustee or the holders of 25% of the aggregate trust preferred securities outstanding, by providing written notice to the Company, may declare the entire principal and unpaid interest amounts of the trust preferred securities immediately due and payable. The aggregate principal amount of these trust preferred securities is $6.0 million. The trust preferred securities are junior to the subordinated notes, so even if a default is declared, the trust preferred securities cannot be repaid prior to repayment of the subordinated notes. However, if the trustee or the holders of the trust preferred securities declare a default under the trust preferred securities, the Company could be forced into involuntary bankruptcy," the Company said in the report. A full-text copy of the Form 10-K is available for free at: http://is.gd/aiav8C About HCSB Financial Loris, South Carolina-based HCSB Financial Corporation was incorporated on June 10, 1999, to become a holding company for Horry County State Bank. The Bank is a state chartered bank which commenced operations on Jan. 4, 1988. From its 13 branch locations, the Bank offers a full range of deposit services, including checking accounts, savings accounts, certificates of deposit, money market accounts, and IRAs, as well as a broad range of non-deposit investment services. During the third quarter of 2011, the Bank closed its Covenant Towers branch located at Myrtle Beach. All deposits were transferred to the Bank's Myrtle Beach branch and the Bank does not expect any disruption of service in that market for its customers. HEALTHWAREHOUSE.COM INC: Posts $2.1 Million Net Loss in 2014 ------------------------------------------------------------ Healthwarehouse.com, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss attributable to common stockholders of $2.08 million on $6.12 million of net sales for the year ended Dec. 31, 2014, compared with a net loss attributable to common stockholders of $7.3 million on $10.23 million of net sales in 2013. As of Dec. 31, 2014, the Company had $1.66 million in total assets, $5.28 million in total liabilities, and a $3.62 million total stockholders' deficiency. Marcum LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "The Company recognizes it will need to raise additional capital in order to fund operations, meet its payment obligations and execute its business plan. There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, attempt to extend note repayments, attempt to negotiate the preferred stock redemption and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. If the Company is unable to obtain financing on a timely basis, the Company could be forced to sell its assets, discontinue its operation and /or seek reorganization under the U.S. bankruptcy code," the Company said in the report. A full-text copy of the Form 10-K is available for free at: http://is.gd/A4U5i6 About HealthWarehouse.com HealthWarehouse.com, Inc., headquartered in Florence, Kentucky, is a U.S. licensed virtual retail pharmacy ("VRP") and healthcare e-commerce company that sells brand name and generic prescription drugs as well as over-the-counter ("OTC") medical products. HERCULES OFFSHORE: Fails to Comply with NASDAQ Bid Price Rule ------------------------------------------------------------- Hercules Offshore, Inc. received a letter from The NASDAQ Stock Market notifying the Company that, for 30 consecutive business days, the bid price for the Company's common stock was below the minimum $1.00 per share requirement for continued listing on The Nasdaq Global Select Market under Nasdaq Listing Rule 5450(a)(1). The notice does not have an immediate effect on the listing of the Company's common stock, and the Company's common stock will continue to trade on The Nasdaq Global Select Market under the symbol "HERO." The Company has 180 days, or until Sept. 21, 2015, to regain compliance with the minimum bid price requirement. To regain compliance, the minimum bid price of the Company's common stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days during the 180-day grace period as determined by Nasdaq staff. In the event the Company receives notice that its common stock is being delisted, Nasdaq rules permit the Company to appeal any delisting determination by the Nasdaq staff to a hearings panel. The Company actively monitors the price of its common stock and will consider all available options to regain compliance with the continued listing standards. About Hercules Offshore Hercules Offshore Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. Hercules Offshore reported a net loss of $216 million in 2014, compared to a net loss of $68.1 million in 2013. As of Dec. 31, 2014, the Company had $2 billion in total assets, $1.38 billion in total liabilities and $615 million in equity. * * * The TCR report in March 2015 that Moody's Investors Service downgraded Hercules Offshore, Inc.'s Corporate Family Rating to Caa2 from B2. The Caa2 Corporate Family Rating (CFR) reflects the company's contract roll-off and sparse contract coverage through the June 2016, its aging fleet, and the projection for a deterioration of its liquidity position. As reported by the TCR on March 2, 2015, Standard & Poor's Ratings Services lowered its corporate credit rating on Houston-based Hercules Offshore Inc. to 'CCC+' from 'B-'. "The downgrade reflects our expectation of deteriorating liquidity over the next year, as well as the company's escalating debt leverage," said Standard & Poor's credit analyst Stephen Scovotti. HEXION INC: S&P Assigns 'CCC+' Rating to $315MM Sr. Secured Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'CCC+' issue rating and '3' recovery rating to Columbus, Ohio-based global manufacturer and marketer of thermoset resins, Hexion Inc.'s $315 million senior secured notes due 2020. Hexion will use note proceeds to redeem outstanding debentures and for general corporate purposes. All existing ratings on Hexion, including the 'CCC+' corporate credit rating, are unchanged. The outlook is negative. The '3' recovery indicates meaningful (the lower end of the 50% to 70% range) recovery in a default scenario. The ratings on Hexion reflect S&P's assessments of the company's "weak" business profile and "highly leveraged" financial risk profile. RATING LIST Hexion Inc. Corporate credit rating CCC+/Negative/-- New Ratings Hexion Inc. $315 mil senior secured notes CCC+ Recovery Rating 3L HORIZON VILLAGE: Nigro HQ Plan Confirmation Hearing April 27 ------------------------------------------------------------ Nigro HQ LLC, a debtor-affiliate of Horizon Village Square LLC, on Dec. 24, 2014, filed its Amended Plan of Reorganization. The confirmation hearing on the Plan is scheduled for April 27, 2015, at 9:30 a.m. Wells Fargo objects to the Plan. Pursuant to a stipulation, the Debtor and Wells Fargo agree that all discovery will be completed by April 6, 2015, and the Bankruptcy Court will conduct a pre-trial conference on April 22 at 9:30 a.m. About Horizon Village Four related Las Vegas, Nevada-based entities sought Chapter 11 bankruptcy protection on July 13, 2011. The businesses are owned or managed by local business people and firms, including Todd Nigro, Nigro Development LLC, a Nigro family trust and other investors. Horizon Village Square LLC (Bankr. D. Nev. Case No. 11-21034) owns the Vons-anchored Horizon Village Square Shopping Center near I-515 and Horizon Drive in Henderson. The property includes five retail buildings with nearly 43,000 square feet of space. Ten Saints LLC (Bankr. D. Nev. Case No. 11-21028) owns the 134- room Hampton Inn & Suites at St. Rose Parkway and Seven Hills Drive in Henderson. The Hon. Mike K. Nakagawa of the U.S. Bankruptcy Court for the District of Nevada on Nov. 18, 2011, entered a final decree closing the Chapter 11 case of Ten Saints LLC. Beltway One Development Group LLC (Bankr. D. Nev. Case No. 11- 21026) owns the Desert Canyon Business Park at Russell Road and the Las Vegas Beltway. It has two buildings and 15 acres. Nigro HQ LLC (Bankr. D. Nev. Case No. 11-21014) owns an office building at 9115 W. Russell Road occupied by Bank of George, Infinity Plus LLC and Nigro Construction Inc. Todd Nigro said the four bankruptcies were caused by threatened foreclosures -- typically related to Wells Fargo Bank demanding payments to keep loan-to-value ratios at specified levels. Judge Mike K. Nakagawa presides over the cases. Lawyers at Gordon Silver serve as the Debtors' bankruptcy counsel. The bankruptcy petitions estimated assets and debts from $1 million to $10 million each for Nigro HQ; and from $10 million to $50 million in both assets and debts for Horizon Village, Ten Saints and Beltway One. The cases are not jointly administered. A fifth related business, Russell Boulder LLC, filed for bankruptcy (Bankr. D. Nev. Case No. 10-29724) on Oct. 19, 2010. It owns the 600-suite Siena Suites extended stay property at Boulder Highway and Russell Road. Edward M. Zachary, Esq., at Bryan Cave LLP, in Bryan Cave LLP, in Phoenix, Ariz., and Robert M. Charles, Jr., Esq., at Lewis and Roca LLP, in Los Vegas, Nev., represent Wells Fargo Bank, N.A., as counsel. Horizon Village Square and Wells Fargo have submitted competing Chapter 11 plans. The Debtor's Amended Plan of Reorganization is slated for confirmation at a hearing on April 28. HORIZON VILLAGE: To Seek Confirmation of Amended Plan April 28 -------------------------------------------------------------- Horizon Village Square LLC is slated to present its Amended Plan of Reorganization for confirmation at a hearing on April 28, 2015 at 9:30 a.m. (Pacific Time). Objections to confirmation are due April 14. Following a hearing on Feb. 4, the Hon. Mike K. Nakagawa entered an order approving the disclosure statement explaining the Debtor's Amended Plan. Ballots are due April 14. Solicitation packages will be sent to holders of claims in Class 1 (Secured Lender Claim) and Class 2 (Deficiency Claim). The Debtor won't solicit votes from holders of claims in Class 5 (General Unsecured Claims) as they have already voted to accept the Initial Plan. A copy of the order is available at: http://bankrupt.com/misc/Horizon_V_DS_Order_Am_Plan.pdf The Debtor won approval of a stipulation it signed with Wells Fargo Bank, N.A., regarding a discovery schedule in connection with the Amended Plan. The parties agreed that discovery will be completed by April 6, 2015, and a pre-trial conference will be conducted by the Bankruptcy Court on April 24, 2015, at 10:00 a.m. According to Judge Nakagawa's Feb. 6 order, the hearing date set for confirmation of the Amended Plan will also be the hearing date for a renewed motion for relief from stay, motion to dismiss, motion to approve disclosure statement, or related motion, if any, filed by Wells Fargo Bank, unless otherwise ordered by the court. Amended Plan The Debtor on Feb. 13, 2015, filed a disclosure statement explaining its Amended Plan of Reorganization. The Amended Plan modifies the Debtor's initial Plan of Reorganization. The Bankruptcy Court considered confirmation of the Initial Plan in its Memorandum Decision on Final Approval of Disclosure Statement and Confirmation for Chapter 11 Plan entered on Nov. 13, 2014, wherein the Bankruptcy Court determined that: (i) the value of Debtor's Real Property is $10,845,000, which is less than secured lender Wells Fargo Bank's full claim; (ii) the appropriate interest rate under Section 1129(b)(2)(A)(i) of the Bankruptcy Code for the secured portion of Secured Lender's claim is 4.25% per annum; (iii) the appropriate interest rate under Section 1129(b)(2)(B)(i) of the Bankruptcy Code for the unsecured portion of Secured Lender's Claim is not less than 5.00%; and (iv) the Initial Plan's failure to provide the foregoing interest rates and to separately classify the Secured Lender's Deficiency Claim did not satisfy the requirements of Sections 1122 and 1129(b) of the Bankruptcy Code. On that basis, the Court denied confirmation of the Initial Plan. The Amended Plan modifies the Initial Plan to correct these deficiencies by: (i) providing that the Secured Lender Claim is $10,845,000, which is the value determined by the Bankruptcy Court; (ii) providing interest on the Secured Lender Claim at the rate of 4.25% per annum; (iii) increasing the interest rate on the General Unsecured Claims and the Deficiency Claim to 5.5% per annum; and (iv) separately classifying the Deficiency Claim as such claim has an alternate source of recovery through the Guarantees. Thus, the Plan only modifies the treatment of Secured Lender's claims. The Plan's treatment of the remaining classified claims, being the Class 3 Other Secured Claims, the Class 4 Priority Unsecured Claims, the Class 5 General Unsecured Claims, and the Class 6 Equity Securities is identical to or better than the treatment under the Initial Plan and therefore, such Classes will not be resolicited to vote on the Plan. Disclosure Statement Objections Wells Fargo submitted an objection to the Amended Disclosure Statement. The Debtor responded that Wells Fargo's arguments -- (1) the absence of the Debtor's projections render the Disclosure Statement inadequate for assessment of the Amended Plan's feasibility; and (2) the Debtor's own conduct precludes the approval of the Disclosure Statement -- fails. A copy of the Wells Fargo's objection to the Disclosure Statement is available for free at: http://bankrupt.com/misc/Horizon_V_WF_Obj_Am_DS.pdf A copy of the Debtor's response to the objection is available for free at: http://bankrupt.com/misc/Horizon_V_Resp_WF_Obj.pdf A copy of the Amended Disclosure Statement dated Feb. 13, 2015, is available for free at: http://bankrupt.com/misc/Horizon_V_DS_Am_Plan.pdf A copy of a supplement filed by the Debtor on Jan. 21, 2015, is available for free at: http://bankrupt.com/misc/Horizon_V_DS_Supplement.pdf Attorneys for Wells Fargo can be reached at: BRYAN CAVE LLP Robert J. Miller, Esq. Bryce Suzuki, Esq. Justin A. Sabin, Esq. Two North Central Avenue, Suite 2200 Phoenix, AZ 85004 - and - LYNCH LAW PRACTICE, PLLC Michael Lynch, Esq. 8275 S. Eastern Avenue, Suite 200 Las Vegas, NV 89123 About Horizon Village Four related Las Vegas, Nevada-based entities sought Chapter 11 bankruptcy protection on July 13, 2011. The businesses are owned or managed by local business people and firms, including Todd Nigro, Nigro Development LLC, a Nigro family trust and other investors. Horizon Village Square LLC (Bankr. D. Nev. Case No. 11-21034) owns the Vons-anchored Horizon Village Square Shopping Center near I-515 and Horizon Drive in Henderson. The property includes five retail buildings with nearly 43,000 square feet of space. Ten Saints LLC (Bankr. D. Nev. Case No. 11-21028) owns the 134- room Hampton Inn & Suites at St. Rose Parkway and Seven Hills Drive in Henderson. The Hon. Mike K. Nakagawa of the U.S. Bankruptcy Court for the District of Nevada on Nov. 18, 2011, entered a final decree closing the Chapter 11 case of Ten Saints LLC. Beltway One Development Group LLC (Bankr. D. Nev. Case No. 11- 21026) owns the Desert Canyon Business Park at Russell Road and the Las Vegas Beltway. It has two buildings and 15 acres. Nigro HQ LLC (Bankr. D. Nev. Case No. 11-21014) owns an office building at 9115 W. Russell Road occupied by Bank of George, Infinity Plus LLC and Nigro Construction Inc. Todd Nigro said the four bankruptcies were caused by threatened foreclosures -- typically related to Wells Fargo Bank demanding payments to keep loan-to-value ratios at specified levels. Judge Mike K. Nakagawa presides over the cases. Lawyers at Gordon Silver serve as the Debtors' bankruptcy counsel. The bankruptcy petitions estimated assets and debts from $1 million to $10 million each for Nigro HQ; and from $10 million to $50 million in both assets and debts for Horizon Village, Ten Saints and Beltway One. The cases are not jointly administered. A fifth related business, Russell Boulder LLC, filed for bankruptcy (Bankr. D. Nev. Case No. 10-29724) on Oct. 19, 2010. It owns the 600-suite Siena Suites extended stay property at Boulder Highway and Russell Road. Edward M. Zachary, Esq., at Bryan Cave LLP, in Bryan Cave LLP, in Phoenix, Ariz., and Robert M. Charles, Jr., Esq., at Lewis and Roca LLP, in Los Vegas, Nev., represent Wells Fargo Bank, N.A., as counsel. Horizon Village Square and Wells Fargo have submitted competing Chapter 11 plans. The Debtor's Amended Plan of Reorganization is slated for confirmation at a hearing on April 28. HORIZON VILLAGE: Wells Fargo Asks for Valuation of Claim -------------------------------------------------------- Wells Fargo Bank, N.A., as successor by merger to Wachovia Bank, N.A., is asking the U.S. Bankruptcy Court for the District of Nevada to enter an order determining the value of Wells Fargo's secured claim against the bankruptcy estate of Horizon Village Square LLC. The Debtor has filed an amended plan of reorganization that contemplates the bifurcation of Wells Fargo's claim into one secured class and one unsecured "deficiency" class. This bifurcation is apparently based on the Debtor's belief that Wells Fargo's lien rights do not extend to the estate's cash on hand. The Debtor's apparent belief in this regard is completely erroneous; the estate's cash on hand constitutes cash collateral and is part of Wells Fargo's collateral package in this case. Wells Fargo is the Debtor's only secured creditor, the only active creditor in this case, and holds the only claim (or claims) entitled to vote on the Amended Plan. Robert J. Miller, Esq., at Bryan Cave LLP, avers that establishing the value and extent of Wells Fargo's secured claim is necessary to determine how Wells Fargo is entitled to vote on the Amended Plan, to determine Wells Fargo's rights and the Debtor's obligations under Section 506(b) of the Bankruptcy Code, and to analyze properly a number of plan confirmation issues, including feasibility. The hearing on the Valuation Motion is slated for April 8, 2015, at 9:30 a.m. A full-text copy of the Motion is available for free at: http://bankrupt.com/misc/Horizon_V_Valuation_Motion.pdf Wells Fargo's counsel can be reached at: Robert J. Miller, Esq. Bryce Suzuki, Esq. BRYAN CAVE LLP Two North Central Avenue, Suite 2200 Phoenix, AZ 85004-4406 Tel: (602) 364-7000 Fax: (602) 364-7070 E-mail: rjmiller@bryancave.com bryce.suzuki@bryancave.com - and - Michael F. Lynch, Esq. LYNCH LAW PRACTICE, PLLC 8275 S. Eastern Avenue, Suite 200 Las Vegas, NV 89123 Tel: (702) 413-8282 (direct) Fax: (702) 543-3279 E-mail: michael@lynchlawpractice.com About Horizon Village Four related Las Vegas, Nevada-based entities sought Chapter 11 bankruptcy protection on July 13, 2011. The businesses are owned or managed by local business people and firms, including Todd Nigro, Nigro Development LLC, a Nigro family trust and other investors. Horizon Village Square LLC (Bankr. D. Nev. Case No. 11-21034) owns the Vons-anchored Horizon Village Square Shopping Center near I-515 and Horizon Drive in Henderson. The property includes five retail buildings with nearly 43,000 square feet of space. Ten Saints LLC (Bankr. D. Nev. Case No. 11-21028) owns the 134- room Hampton Inn & Suites at St. Rose Parkway and Seven Hills Drive in Henderson. The Hon. Mike K. Nakagawa of the U.S. Bankruptcy Court for the District of Nevada on Nov. 18, 2011, entered a final decree closing the Chapter 11 case of Ten Saints LLC. Beltway One Development Group LLC (Bankr. D. Nev. Case No. 11- 21026) owns the Desert Canyon Business Park at Russell Road and the Las Vegas Beltway. It has two buildings and 15 acres. Nigro HQ LLC (Bankr. D. Nev. Case No. 11-21014) owns an office building at 9115 W. Russell Road occupied by Bank of George, Infinity Plus LLC and Nigro Construction Inc. Todd Nigro said the four bankruptcies were caused by threatened foreclosures -- typically related to Wells Fargo Bank demanding payments to keep loan-to-value ratios at specified levels. Judge Mike K. Nakagawa presides over the cases. Lawyers at Gordon Silver serve as the Debtors' bankruptcy counsel. The bankruptcy petitions estimated assets and debts from $1 million to $10 million each for Nigro HQ; and from $10 million to $50 million in both assets and debts for Horizon Village, Ten Saints and Beltway One. The cases are not jointly administered. A fifth related business, Russell Boulder LLC, filed for bankruptcy (Bankr. D. Nev. Case No. 10-29724) on Oct. 19, 2010. It owns the 600-suite Siena Suites extended stay property at Boulder Highway and Russell Road. Edward M. Zachary, Esq., at Bryan Cave LLP, in Bryan Cave LLP, in Phoenix, Ariz., and Robert M. Charles, Jr., Esq., at Lewis and Roca LLP, in Los Vegas, Nev., represent Wells Fargo Bank, N.A., as counsel. Horizon Village Square and Wells Fargo have submitted competing Chapter 11 plans. The Debtor's Amended Plan of Reorganization is slated for confirmation at a hearing on April 28. HUTCHESON MEDICAL: Has Until May 20 to File Chapter 11 Plan ----------------------------------------------------------- U.S. Bankruptcy Judge Paul W. Bonapfel extended Hutcheson Medical Center, Inc., et al.'s exclusive periods to file one or more chapter 11 plan(s) until May 20, 2015, and solicit acceptances for that plan(s) until July 20. The order also resolves the objection of Chattanooga-Hamilton County Hospital Authority doing business as Erlanger Health System. Erlanger said that the Debtor sought extensions of their exclusive periods to file and solicit acceptance for the plan for over nine months -- to Dec. 31, and Feb. 29, respectively. Erlanger, in its objection, stated that the Debtors had failed to show that the requested nine-month-plus extension is warranted in the cases. Erlanger also requested that if an extension is granted, it must be short. 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. INERGETICS INC: Needs More Time to File Form 10-K ------------------------------------------------- Inergetics, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Dec. 31, 2014, stating that the financial statements and managements discussion are not completed. About Inergetics Inc. Paramus, N.J.-based Inergetics, Inc., formerly Millennium Biotechnologies Group, Inc., is a holding company for its subsidiary Millennium Biotechnologies, Inc. Millennium is a research based bio-nutraceutical corporation involved in the field of nutritional science. Millennium's principal source of revenue is from sales of its nutraceutical supplements, Resurgex Select(R) and Resurgex Essential(TM) and Resurgex Essential Plus(TM) which serve as a nutritional support for immuno-compromised individuals undergoing medical treatment for chronic debilitating diseases. Millennium has developed Surgex for the sport nutritional market. The Company's efforts going forward will focus on sales of Surgex in powder, bar and ready to drink forms. Inergetics reported a net loss applicable to common shareholders of $5.74 million in 2013 following a net loss applicable to common shareholders of $5.45 million in 2012. As of Sept. 30, 2014, the Company had $2.16 million in total assets, $15.8 million in total liabilities, $8.95 million in preferred stock, and a $22.6 million total stockholders' deficit. INT'L MANUFACTURING: Consolidation of RelyAid & DBS Air Sought -------------------------------------------------------------- Beverly N. McFarland, the Chapter 11 Trustee for International Manufacturing Group Inc., asks the U.S. Bankruptcy Court for the Eastern District of California to consolidate the assets and liabilities of RelyAid Global Healthcare Inc. and DBS Air LLC with the Debtor's estate nunc pro tunc to the Debtor's bankruptcy filing date of May 30, 2014. A hearing is set for April 15, 2015, at 10:00 a.m., at Courtroom 34, 501 I Street, 6th Floor in Sacrament, California. About International Manufacturing Deepal Wannakuwatte, the mastermind of a $150 million Ponzi scheme, put himself and his company, International Manufacturing Group Inc., into Chapter 11 after he pleaded guilty to one count of wire fraud and agreed to a 20-year prison sentence. The bankruptcy filing was part of his plea bargain with federal prosecutors. Mr. Wannakuwatte is the former owner of the Sacramento Capitols tennis team. International Manufacturing sought Chapter 11 bankruptcy protection (Bankr. E.D. Cal. Case No. 14-25820) in Sacramento, on May 30, 2014. The case is assigned to Judge Robert S. Bardwil. The Debtor tapped Marc A. Caraska, in Sacramento, as counsel. In June 2014, Beverly N. McFarland was appointed as Chapter 11 trustee for the Debtor. She has tapped Felderstein Fitzgerald Willoughby & Pascuzzi LLP as her bankruptcy counsel; Diamond McCarthy LLP as her special litigation counsel; Gabrielson & Company as accountant; and Karen Rushing as bookkeeper outside the ordinary course of business. The U.S. Trustee for Region 7 appointed a three-member unsecured creditors panel comprising of Byron Younger, Janine Jones, and Steve Whitesides. INTELLIPHARMACEUTICS INT'L: Positive Results From Clinical Trials ----------------------------------------------------------------- Intellipharmaceutics International Inc. provided an update on the progress of the product development programs for both its Rexista Oxycodone Abuse Deterrent oxycodone hydrochloride extended release tablets and for its Regabatin XR once-daily, non-generic extended release version of pregabalin. Rexista Oxycodone XR Rexista Oxycodone XR is a non-generic extended release formulation intended for the management of moderate to severe pain when an around-the-clock analgesic is required. The formulation is intended to present a significant barrier to tampering when subjected to various forms of anticipated physical and chemical manipulation commonly used by abusers. It is also designed to prevent dose dumping when inadvertently co-administered with alcohol. In addition, when crushed or pulverized and hydrated, the proposed extended release formulation is designed to coagulate instantaneously and entrap the drug in a viscous hydrogel, which is intended to prevent syringing, injecting and snorting. The Company recently submitted an Investigational New Drug Application to the United States Food and Drug Administration for Rexista Oxycodone XR in anticipation of the commencement of Phase III clinical trials. Planning has begun for the Phase III trials that will examine the efficacy and safety of Rexista Oxycodone XR in individuals with chronic low back pain. Intellipharmaceutics has recently conducted and analyzed the results of three definitive open label, blinded, randomized, crossover, Phase I pharmacokinetic clinical trials in which Rexista Oxycodone XR was compared to Oxycontin under single dose fasting, single dose steady-state fasting and single dose fed conditions in healthy volunteers. Intellipharmaceutics has received topline data results from all three studies. The first study, a single dose steady-state fasting study, showed that Rexista Oxycodone XR met the bioequivalence criteria (90 percent confidence interval of 80 to 125 percent) for all matrices, i.e., on the measure of maximum plasma concentration or Cmax, the ratio of Rexista Oxycodone XR to Oxycontin was 94.95 percent (90 percent confidence interval of 81.29 to 110.89 percent) and on the measure of area under the curve steady state (AUCss) the ratio of Rexista Oxycodone XR to Oxycontin was 100.54 percent (90 percent confidence interval of 89.97 to 112.34 percent). The second study, a single dose fasting study, showed that Rexista Oxycodone XR met the bioequivalence criteria (90 percent confidence interval of 80 to 125 percent) for all matrices, i.e., on the measure of maximum plasma concentration or Cmax, the ratio of Rexista Oxycodone XR to Oxycontin was 92.69 percent (90 percent confidence interval of 80.26 to 107.04 percent), on the measure of area under the curve time (AUCt) the ratio of Rexista Oxycodone XR to Oxycontin was 100.53 percent (90 percent confidence interval of 95.13 to 106.53 percent) while on the measure of area under the curve infinity (AUCinf) the ratio of Rexista Oxycodone XR to Oxycontin was 114.87 percent (90 percent confidence interval of 108.21 to 121.93 percent). The third study, a single dose fed study, showed that Rexista Oxycodone XR met the bioequivalence criteria (90 percent confidence interval of 80 to 125 percent) for all matrices, i.e., on the measure of maximum plasma concentration or Cmax, the ratio of Rexista Oxycodone XR to Oxycontin was 91.66 percent (90 percent confidence interval of 80.21 to 104.75 percent), on the measure of area under the curve time (AUCt) the ratio of Rexista Oxycodone XR to Oxycontin was 103.21 percent (90 percent confidence interval of 94.15 to 113.15 percent) while on the measure of area under the curve infinity (AUCinf) the ratio of Rexista Oxycodone XR to Oxycontin was 107.39 percent (90 percent confidence interval of 98.62 to 107.39 percent). Regabatin XR The Company also reported that the FDA has accepted a Pre-Investigational New Drug (Pre-IND) meeting request for its once-a-day Regabatin XR non-generic controlled release version of pregabalin under the new drug application ("NDA") 505(b)(2) regulatory pathway, with a view to possible commercialization in the United States at some time following the Dec. 30, 2018, expiry of the patent covering the pregabalin molecule. Regabatin XR is based on the Company's controlled release drug delivery technology platform which utilizes the symptomatology and chronobiology of fibromylagia in a formulation intended to provide a higher exposure of pregabalin during the first 12 hours of dosing. Pregabalin is indicated for the management of neuropathic pain associated with diabetic peripheral neuropathy, postherpetic neuralgia, spinal cord injury and fibromyalgia. A once-a-day controlled release version of pregabalin should reduce the number of doses patients currently take, potentially improving patient compliance, and thereby potentially improving clinical outcomes. This Pre-IND request with the FDA is focused on the Company’s proposed Phase III clinical program. "There can be no assurance that additional clinical trials will meet our expectations, that we will have sufficient capital to conduct such trials, that we will be successful in submitting any NDA with the FDA, that the FDA will approve these product candidates for sale in the U.S. market, or that they will ever be successfully commercialized," the Company said in the press releaes. "We are excited with the positive topline data results of the Phase I studies utilizing formulations and dosages of our Rexista Oxycodone XR product candidate, and we look forward to the FDA’s guidance on our IND filing on Rexista Oxycodone XR, and on our Pre-IND submission for Regabatin stated Dr. Isa Odidi, CEO and co-founder of Intellipharmaceutics. "We believe that our abuse deterrent technology has the potential to positively differentiate Rexista from other abuse deterrent technologies of which we are aware, and that it represents an important step towards helping patients manage their pain safely. For both Rexista and Regabatin, we plan to move forward, subject to FDA guidance, into Phase III trials. We also plan to explore potential strategic business development relationships for these novel product candidates." Company Contact: Intellipharmaceutics International Inc. Domenic Della Penna Chief Financial Officer 416-798-3001 ext. 106 investors@intellipharmaceutics.com Investor Contact: ProActive Capital Kirin Smith 646-863-6519 ksmith@proactivecapital.com About Intellipharmaceutics Toronto, Canada-based Intellipharmaceutics International Inc. is incorporated under the laws of Canada. Intellipharmaceutics is a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs. Its patented Hypermatrix(TM) technology is a multidimensional controlled- release drug delivery platform that can be applied to the efficient development of a wide range of existing and new pharmaceuticals. Based on this technology, Intellipharmaceuticshas a pipeline of product candidates in various stages of development, including filings with the FDA in therapeutic areas that include neurology, cardiovascular, gastrointestinal tract, diabetes and pain. Intellipharmaceutics reported a net loss of $3.85 million on $8.76 million of revenues for the year ended Nov. 30, 2014, compared to a net loss of $11.5 million on $1.52 million of revenues for the year ended Nov. 30, 2013. As at Nov. 30, 2014, the Company had $7.87 million in total assets, $2.96 million in total liabilities and $4.91 million in shareholders' equity. Deloitte LLP, in Toronto, Canada, issued a "going concern" qualification on the consolidated financial statements for the year ended Nov. 30, 2014, citing that the Company's recurring losses from operations and the accumulated deficit cast substantial doubt about its ability to continue as a going concern. INTERMETRO COMMUNICATIONS: Suspending Filing of Reports with SEC ---------------------------------------------------------------- Intermetro Communications, Inc. has suspended its reporting obligations under Section 15(d) of the Securities Exchange Act of 1934, as amended, by filing a Form 15 with the Securities and Exchange Commission on March 27, 2015. There were only 150 holders of the common shares as of that date. About InterMetro Simi Valley, Calif.-based InterMetro Communications, Inc., -- http://www.intermetro.net/-- is a Nevada corporation which through its wholly owned subsidiary, InterMetro Communications, Inc. (Delaware), is engaged in the business of providing voice over Internet Protocol ("VoIP") communications services. InterMetro Communications reported a net loss of $2.45 million on $11.6 million of net revenues for the year ended Dec. 31, 2013, as compared with net income of $699,000 on $20.06 million of net revenues in 2012. The Company's balance sheet at Sept. 30, 2014, showed $2.88 million in total assets, $12.4 million in total liabilities and a $9.51 million total stockholders' deficit. Gumbiner Savett Inc., in Santa Monica, 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 incurred net losses in previous years, and as of Dec. 31, 2013, the Company had a working capital deficit of approximately $12.08 million and a total stockholders' deficit of approximately $12.4 million. The Company anticipates that it will not have sufficient cash flow to fund its operations in the near term and through fiscal 2014 without the completion of additional financing. These factors, among other things, raise substantial doubt about the Company's ability to continue as a going concern. INTL MANUFACTURING GROUP: Trustee Wants FFWP Reaffirmed as Counsel ------------------------------------------------------------------ Beverly N. McFarland, the Chapter 11 Trustee for International Manufacturing Group Inc. asks the U.S. Bankruptcy Court for the Eastern District of California to reaffirm the employment of Felderstein Fitzgerald Willoughby & Pascuzzi LLP as her bankruptcy counsel. A full-text copy of the Chapter 11 trustee's motion is available for free at http://is.gd/pfDmG9 A hearing was scheduled on April 1, 2015, to consider approval of the Chapter 11 trustee's request. As reported in the Troubled Company Reporter on Aug. 1, 2014, the Court authorized the Chapter 11 trustee to employ the firm as her bankruptcy counsel. The Chapter 11 trustee requires Felderstein Fitzgerald to: (a) advise and represent the Trustee with respect to bankruptcy matters and proceedings in this Bankruptcy Case; (b) assist the Trustee in obtaining the use of cash collateral and potentially selling the Debtor's assets or business; (c) assist the Trustee with the preparation of and confirmation of a plan or plans of reorganization or liquidation; and (d) advise and represent the Trustee with respect to possible motions for relief from stay filed by the Debtor's secured creditors. Felderstein Fitzgerald will be paid at these hourly rates: Steven H. Felderstein, managing partner $495 Thomas A. Willoughby, partner $495 Paul J. Pascuzzi, partner $475 Jason E. Rios, partner $405 Jennifer E. Niemann, counsel $395 Holly A. Estioko, associate $350 Karen L. Widder, legal assistant $195 Felderstein Fitzgerald will also be reimbursed for reasonable out- of-pocket expenses incurred. Thomas A. Willoughby, partner of Felderstein Fitzgerald, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. About International Manufacturing Deepal Wannakuwatte, the mastermind of a $150 million Ponzi scheme, put himself and his company, International Manufacturing Group Inc., into Chapter 11 after he pleaded guilty to one count of wire fraud and agreed to a 20-year prison sentence. The bankruptcy filing was part of his plea bargain with federal prosecutors. Mr. Wannakuwatte is the former owner of the Sacramento Capitols tennis team. International Manufacturing sought Chapter 11 bankruptcy protection (Bankr. E.D. Cal. Case No. 14-25820) in Sacramento, on May 30, 2014. The case is assigned to Judge Robert S. Bardwil. The Debtor tapped Marc A. Caraska, in Sacramento, as counsel. In June 2014, Beverly N. McFarland was appointed as Chapter 11 trustee for the Debtor. She has tapped Felderstein Fitzgerald Willoughby & Pascuzzi LLP as her bankruptcy counsel; Diamond McCarthy LLP as her special litigation counsel; Gabrielson & Company as accountant; and Karen Rushing as bookkeeper outside the ordinary course of business. The U.S. Trustee for Region 7 appointed a three-member unsecured creditors panel comprising of Byron Younger, Janine Jones, and Steve Whitesides. ISC8 INC: Completes Sale, Needs Until April 22 to File Plan ----------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that ISC8 Inc. has completed a sale of most assets and has asked a bankruptcy judge to extend until April 22, 2015, the period by which it has exclusive right to file a plan. According to the report, citing court documents, the Debtor said a confirmable plan can't be finalized until the company ascertains which unsecured liabilities have been paid or taken on by the buyer. Further, the Debtor said there may be a party interested in the company's public shell. About ISC8 Inc. ISC8 Inc. filed a Chapter 11 bankruptcy petition in the United States Bankruptcy Court for the Central District of California, Santa Ana division (Bankr. C.D. Cal. Case No. 14-15750) on Sept. 23, 2014. The petition was signed by Kirsten Bay as president and CEO. The Company continues to operate its business and manage its financial affairs as a debtor-in-possession, pursuant to Sections 1107(a) and 1108 of the United States Bankruptcy Code. The Debtor estimated assets of $1 million to $10 million and reported total liabilities of $14 million. Ezra Brutzkus Gubner LLP serves as the Debtor's counsel. The case is assigned to Judge Scott C. Clarkson. J&G HOSPITALITY: Case Summary & 5 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: J&G Hospitality Group, LLC 105 E. State Street Hastings, MI 49058 Case No.: 15-01949 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: March 31, 2015 Court: United States Bankruptcy Court Western District of Michigan (Grand Rapids) Judge: Hon. Scott W. Dales Debtor's Counsel: Cody H. Knight, Esq. RAYMAN & KNIGHT 141 East Michigan Ave, Ste 301 Kalamazoo, MI 49007 Tel: (269) 345-5156 Email: courtmail@raymanstone.com Total Assets: $545,612 Total Liabilities: $1.83 million The petition was signed by Michael L. Barnaart, member. A list of the Debtor's five largest unsecured creditors is available for free at http://bankrupt.com/misc/miwb15-01949.pdf LIANA MALLO: Justices Asked to Eye Late Tax Returns' Bankr. Status ------------------------------------------------------------------ Law360 reported that three bankrupt IRS debtors petitioned the U.S. Supreme Court to review a Tenth Circuit decision finding that a tax debt is not dischargeable in bankruptcy when the relevant tax return has been filed past the deadline, saying the lower courts desperately need guidance on the issue. According to the report, petitioners Liana and Edson Mallo and Peter George Martin, whose cases were consolidated by a district court in 2013, argued that even a late-filed return should be counted under Section 523(a) of Bankruptcy Code. LIFE PARTNERS: Trustee Wants Operating Unit in Chapter 11 --------------------------------------------------------- Tiffany Kary, writing for Bloomberg News, reported that H. Thomas Moran II, the trustee appointed in the Chapter 11 cases of Life Partners Holdings, Inc., said the debtor's operating unit should join its parent in bankruptcy to help reorganize the company after it was ordered to pay $46 million in a fraud case. According to the report, the Chapter 11 trustee's motion, if approved, means a bankruptcy law provision halting lawsuits would protect the subsidiary, Life Partners Inc. It would also give the trustee authority to remove current board members and consolidate assets to help reorganize, the court document said, the report related. About Life Partners Holdings, Inc. Headquartered in Waco, Texas, Life Partners Holdings, Inc. -- http://www.lphi.com/-- is a financial services company engaged in the secondary market for life insurance known as life settlements. Life Partners Holdings, Inc., sought protection under Chapter 11 of the Bankruptcy Code on Jan. 20, 2015 (Bankr. N.D. Tex., Case No. 15-40289). The case is assigned to Judge Russell F. Nelms. The U.S. Trustee for Region 6 appointed three creditors of Life Partners Holdings, Inc. to serve on the official committee of unsecured creditors. Tracy A. Bolt of BDO USA, LLP, was named as examiner in the Debtor's case. LIGHTSQUARED INC: Former Chairman Appeals Plan Confirmation Order ----------------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that former Lightsquared Inc. Chairman Sanjiv Ahuja appealed from the bankruptcy court's order confirming the reorganization plan. According to the report, the ex-chairman has 8.8 million shares of stock under a settlement under which, he says, he was supposed to be treated like all other shareholders. Instead, the plan gives him nothing, the report noted. According to Ahuja, the company is solvent because its enterprise value is $9.6 billion while claims total only $4.3 billion, and as a result, he should have received something for his stock, he said, the report added. About LightSquared Inc. LightSquared Inc. and 19 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on May 14, 2012, to resolve regulatory issues that have prevented it from building its coast-to-coast integrated satellite 4G wireless network. LightSquared had invested more than $4 billion to deploy an integrated satellite-terrestrial network. In February 2012, however, the U.S. Federal Communications Commission told LightSquared the agency would revoke a license to build out the network as it would interfere with global positioning systems used by the military and various industries. In March 2012, the Company's partner, Sprint, canceled a master services agreement. LightSquared's lenders deemed the termination of the Sprint agreement would trigger cross-defaults under LightSquared's prepetition credit agreements. LightSquared and its prepetition lenders attempted to negotiate a global restructuring that would provide LightSquared with liquidity and runway necessary to resolve its issues with the FCC. Despite working diligently and in good faith, however, LightSquared and the lenders were not able to consummate a global restructuring on terms acceptable to all interested parties. Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to the Debtors. Alvarez & Marsal North America, LLC, is the financial advisor. Kurtzman Carson Consultants LLC serves as claims and notice agent. * * * Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York on Jan. 20, 2015, approved the Second amended specific disclosure statement explaining Lightsquared Inc., et al.'s second amended joint plan, after determining that the disclosures contain adequate information within the meaning of Section 1125(a) of the Bankruptcy Code. As previously reported by The Troubled Company Reporter, the Debtors, in December, filed a joint plan and disclosure statement, which contemplate, among other things, (A) new money investments by the New Investors in exchange for a combination of preferred and common equity, (B) the conversion of the Prepetition LP Facility Claims into new second lien debt obligations, (C) the repayment in full, in cash, of the Inc. Facility Prepetition Inc. Facility NonSubordinated Claims immediately following confirmation of the Plan, (D) the payment in full, in cash, of LightSquared's general unsecured claims, (E) the provision of $1.25 billion in new money working capital for the Reorganized Debtors, (F) the assumption of certain liabilities, (G) the resolution of all inter-Estate disputes, and (H) the contribution by Harbinger of the Harbinger Litigations. Judge Chapman commenced a hearing on March 9, 2015, to consider confirmation of the amended joint plan filed by Lightsquared Inc. and its debtor-affiliates together with Fortress Credit Opportunities Advisor LLC, Harbinger Capital Partners LLC, and Centerbridge Partners LP. Judge Chapman, in later March, approved LightSquared Inc.'s Chapter 11 reorganization plan, capping a bankruptcy odyssey for Philip Falcone's ambitious wireless venture that filed for bankruptcy nearly three years ago. LIGHTSQUARED INC: NY Court Dismisses Harbinger Investor Suit ------------------------------------------------------------ Bob Van Norris, writing for Bloomberg News, reported that a lawsuit accusing hedge fund manager Philip A. Falcone and his Harbinger Capital Partners of misleading investors about the firm's stake in LightSquared Inc. was dismissed by U.S. District Judge Alison Nathan in Manhattan. According to Bloomberg, the investors claimed Harbinger acquired an interest in LightSquared, formerly known as SkyTerra Communications Inc., without adequately warning them of the risks. Harbinger ultimately owned 60 percent of LightSquared, which was developing a high-speed wireless broadband network before it filed for bankruptcy in 2012, the report said. The case is Schad v. Harbinger Capital Partners LLC, 12-CV-1244, U.S. District Court, Southern District of New York (Manhattan). About LightSquared Inc. LightSquared Inc. and 19 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on May 14, 2012, to resolve regulatory issues that have prevented it from building its coast-to-coast integrated satellite 4G wireless network. LightSquared had invested more than $4 billion to deploy an integrated satellite-terrestrial network. In February 2012, however, the U.S. Federal Communications Commission told LightSquared the agency would revoke a license to build out the network as it would interfere with global positioning systems used by the military and various industries. In March 2012, the Company's partner, Sprint, canceled a master services agreement. LightSquared's lenders deemed the termination of the Sprint agreement would trigger cross-defaults under LightSquared's prepetition credit agreements. LightSquared and its prepetition lenders attempted to negotiate a global restructuring that would provide LightSquared with liquidity and runway necessary to resolve its issues with the FCC. Despite working diligently and in good faith, however, LightSquared and the lenders were not able to consummate a global restructuring on terms acceptable to all interested parties. Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to the Debtors. Alvarez & Marsal North America, LLC, is the financial advisor. Kurtzman Carson Consultants LLC serves as claims and notice agent. * * * Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York on Jan. 20, 2015, approved the Second amended specific disclosure statement explaining Lightsquared Inc., et al.'s second amended joint plan, after determining that the disclosures contain adequate information within the meaning of Section 1125(a) of the Bankruptcy Code. As previously reported by The Troubled Company Reporter, the Debtors, in December, filed a joint plan and disclosure statement, which contemplate, among other things, (A) new money investments by the New Investors in exchange for a combination of preferred and common equity, (B) the conversion of the Prepetition LP Facility Claims into new second lien debt obligations, (C) the repayment in full, in cash, of the Inc. Facility Prepetition Inc. Facility NonSubordinated Claims immediately following confirmation of the Plan, (D) the payment in full, in cash, of LightSquared's general unsecured claims, (E) the provision of $1.25 billion in new money working capital for the Reorganized Debtors, (F) the assumption of certain liabilities, (G) the resolution of all inter-Estate disputes, and (H) the contribution by Harbinger of the Harbinger Litigations. Judge Chapman commenced a hearing on March 9, 2015, to consider confirmation of the amended joint plan filed by Lightsquared Inc. and its debtor-affiliates together with Fortress Credit Opportunities Advisor LLC, Harbinger Capital Partners LLC, and Centerbridge Partners LP. Judge Chapman, in late March, confirmed Lightsquared's reorganization plan. LIME ENERGY: Acquires EnerPath for $11 Million ---------------------------------------------- Lime Energy Co. has acquired EnerPath, a provider of software solutions and program administration for utility energy efficiency programs. The consideration paid in connection with the EnerPath Acquisition was approximately $11 million in cash, subject to adjustment based upon the tangible net worth of EnerPath as of the closing date, according to a document filed with the Securities and Exchange Commission. This integration of two principal innovators in utility program delivery combines Lime Energy's track record of delivering high participation in energy efficiency programs from small and mid-sized businesses with EnerPath's industry-leading enterprise software that enables cost-effective delivery of energy services to a broad range of commercial and residential customer segments. With a combined resume, including provision of in-person customer engagement and energy education to millions of utility customers, the companies have delivered more than 100,000 commercial facility energy efficiency projects reducing 1,000 gigawatt-hours of energy usage -- enough to power 100,000 homes. Enerpath's proprietary energy efficiency software platform has processed more than 1 million customer transactions under utility energy efficiency programs. "The utility of the future needs to engage mass market customers and maintain a relationship that includes putting insights and actions into its customers hands, not just information. Lime Energy enables these customers to relate to energy on their terms," said Adam Procell, president & CEO of Lime Energy. "By acquiring Enerpath, Lime Energy now has a technology platform on which our industry-leading commercial customer energy efficiency data resides. The thousands of weekly personal interactions we have with businesses, coupled with Enerpath's mobile applications and analytics engines, allows our utility clients to control their future, raise customer satisfaction ratings and comply, cost effectively, with increasing environmental regulations." Lime Energy now serves twelve of the top 25 US electric utilities with innovative, performance-based programs that deliver cost-effective energy efficiency and unprecedented customer engagement and satisfaction. Lime Energy's contracts include exclusive access for provision of energy services to over 1.4 million commercial customers throughout the US, including a majority of SMBs overlooked by decades of demand-side management programs. Through these programs Lime Energy has reduced annual energy costs for these businesses by over $100 million while providing required facility upgrades that pay for themselves, on average, in just over a year. "The Enerpath Team is thrilled to be joining forces with Lime Energy to create an energy services company platform that utilities, commercial customers, and channel partners are looking for," said Stephen Guthrie, founder and CEO of EnerPath. Guthrie will remain with Lime as a senior vice president. Over 90% of commercial utility customers are small and medium businesses, and for decades the industry has been at a loss to create a significant impact on this hard-to-reach market. Through their award-winning, performance-based programs, Lime Energy provides a channel for utilities to engage these hard-to-reach customers. Lime Energy's integrated approach includes professional services, complete customer engagement, engineering, procurement, and construction management. Their first-of-its-kind program aligns the interests of utilities, contractors, and customers. This enables utilities to generate efficiency as a resource, incentivize customers based on how they specifically use energy, and enables contractors to run sustainable businesses, while serving the smallest of commercial customers. Lime Energy's data-driven solutions provide custom incentives, tailored products and intelligent engagement strategies to these customers, at scale. The result is a new and enhanced relationship between customer and utility. The EnerPath acquisition will be accretive to Lime Energy in 2015. To learn more about Lime Energy's integrated energy services platform for utilities and commercial businesses please visit, www.lime-energy.com. A copy of the Agreement and Plan of Merger is available at: http://is.gd/ezuJE7 About Lime Energy Headquartered in Huntersville, North Carolina, Lime Energy Co. -- http://www.lime-energy.com-- is engaged in planning and delivering clean energy solutions that assist its clients in their energy efficiency and renewable energy goals. The Company's solutions include energy efficient lighting upgrades, energy efficient mechanical and electrical retrofit and upgrade services, water conservation, building weatherization, on-site generation and renewable energy project development and implementation. The Company provides energy solutions across a range of facilities, from high-rise office buildings, distribution facilities, manufacturing plants, retail sites, multi-tenant residential buildings, mixed use complexes, hospitals, colleges and universities, government sites to small, single tenant facilities. Lime Energy reported a net loss available to common stockholders of $18.5 million in 2013, a net loss of $31.8 million in 2012 and a net loss of $18.9 million in 2011. The Company's balance sheet at Sept. 30, 2014, showed $31.1 million in total assets, $22.8 million in total liabilities and $8.33 million in total stockholders' equity. LIME ENERGY: Approves $152,000 2014 Bonuses for CEO and CFO ----------------------------------------------------------- The compensation committee of the board of directors of Lime Energy Co. approved the awards of discretionary bonuses for 2014 to Adam Procell and Mary Colleen Brennan, the Company's chief executive officer and chief financial officer, respectively, on Dec. 30, 2014, according to a document filed with the Securities and Exchange Commission. Mr. Procell received a cash bonus in the amount of $120,000 and Ms. Brennan received a cash bonus in the amount of $32,068 for their performance during 2014. Also on Dec. 30, 2014, the Compensation Committee approved increases in base salary for Mr. Procell and Ms. Brennan for 2015. Effective Jan. 1, 2015, Mr. Procell's annual base salary is $325,000 and Ms. Brennan's annual base salary is $230,000. About Lime Energy Headquartered in Huntersville, North Carolina, Lime Energy Co. -- http://www.lime-energy.com-- is engaged in planning and delivering clean energy solutions that assist its clients in their energy efficiency and renewable energy goals. The Company's solutions include energy efficient lighting upgrades, energy efficient mechanical and electrical retrofit and upgrade services, water conservation, building weatherization, on-site generation and renewable energy project development and implementation. The Company provides energy solutions across a range of facilities, from high-rise office buildings, distribution facilities, manufacturing plants, retail sites, multi-tenant residential buildings, mixed use complexes, hospitals, colleges and universities, government sites to small, single tenant facilities. Lime Energy reported a net loss available to common stockholders of $18.5 million in 2013, a net loss of $31.8 million in 2012 and a net loss of $18.9 million in 2011. The Company's balance sheet at Sept. 30, 2014, showed $31.1 million in total assets, $22.8 million in total liabilities and $8.33 million in total stockholders' equity. LOOKSMART LTD: Albert Wong Expresses Going Concern Doubt -------------------------------------------------------- LookSmart, Ltd., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K for the fiscal year ended Dec. 31, 2014. Albert Wong & Co. LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has recurring losses, has negative working capital and cash in operating activities. The Company reported a net loss of $6.42 million on $4.7 million in revenue for the year ended Dec. 31, 2014, compared to a net loss of $5.36 million on $6.68 million of revenues in the same period last year. The Company's balance sheet at Dec. 31, 2014, showed $4.76 million in total assets, $2.34 million in total liabilities, and stockholders' equity of $2.42 million. A copy of the Form 10-K is available at: http://is.gd/I9sNiW Based in San Francisco, Calif., LookSmart, Ltd., is a digital advertising solutions company. The Company provides relevant solutions for search and display advertising customers. M & D CONSTRUCTION: Case Summary & 6 Top Unsecured Creditors ------------------------------------------------------------ Debtor: M & D Construction, LLC 7388 South Revere Parkway, Suite 803 Centennial, CO 80112 Case No.: 15-13279 Chapter 11 Petition Date: March 31, 2015 Court: United States Bankruptcy Court District of Colorado (Denver) Judge: Hon. Sidney B. Brooks Debtor's Counsel: Lee M. Kutner, Esq. KUTNER BRINEN GARBER, P.C. 1660 Lincoln St., Ste. 1850 Denver, CO 80264 Tel: 303-832-2400 Email: lmk@kutnerlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Brian Hall, manager. A list of the Debtor's six largest unsecured creditors is available for free at http://bankrupt.com/misc/cob15-13279.pdf MENDOCINO COAST: Wins Confirmation of Plan of Adjustment -------------------------------------------------------- The Mendocino Coast Recreation and Park District has obtained court approval of its Plan of Adjustment, filed on Oct. 31, 2014. Following a hearing on Feb. 6 and March 20, U.S. Bankruptcy Judge Alan Jaroslovsky entered an order confirming the Plan. The Plan provides for the creation of a Plan Fund consisting of the (a) Effective Date Deposit, (b) the GUC Initial Deposit, and (c) the GUC Subsequent Deposits (made on the second and fourth anniversary of the Effective Date). The Plan Fund is expected to contain approximately $1,377,000. The Plan Fund will be used to make Distributions to the holders of Administrative Claims and Allowed Unsecured Claims. Certain other Claims will be satisfied from the Reorganized Debtor’s general revenues following the effectiveness of the Plan and the Debtor’s emergence from Chapter 9. Unsecured Claims are divided into small claims under Class 7 of the Plan (i.e., those claims less than or equal to $5,000 or voluntarily reduced to $5,000), and large claims contained in Class 8 (i.e., claims above $5,000). Distributions to the holders of small Claims in Class 7 will be made shortly after the Effective Date of the Plan and Distributions to the holders of large Claims in Class 8 will be made over a period of four years, commencing with an initial distribution following the Effective Date. Estimated recoveries for holders of claims under the Plan are: Amount of Class No. Description Claims Recovery --------- ----------- ------ -------- N/A Administrative Claims $502,000 100% N/A PCO Claim Undetermined 100% N/A BNY Claim Undetermined 100% 1 Revenue Bonds 1996 N/A 100% 2 Revenue Bonds 2009 N/A 100% 3 Revenue Bonds 2010 N/A 100% 4 General Obligation Bonds N/A 100% 5 OSHPD LOC Claim $1,113,000 82% 6 Misc. Secured Claims $0 100% 7 Convenience Claims $163,000 55% 8 Unsecured Claims $1,310,000 45% 9 Liability Claims $42,000 100% The Plan provides that Classes 1, 2 and 3 (Revenue Bonds), and Class 4 (General Obligation Bonds) are unimpaired. Plan Objections The bankruptcy judge approved the explanatory disclosure statement on Dec. 15, 2014. The deadline for submitting written acceptances or rejections of the Plan was Jan. 30, 2015. Objections were also due Jan. 30. The United States of America, on behalf of the United States Department of Health and Human Services, filed an objection to the Plan. The United States later withdrew its objection after the parties reached an agreement. They agreed that the Debtor will assume the Medicare Provider Agreement, and that confirmation of the Plan will not discharge the Debtor from any debts to CMS that may arise under the Debtor's costs reports for the 2013 and 2014 fiscal periods. Copies of the objection and the notice of withdrawal are available for free at: http://bankrupt.com/misc/Mendocino_Plan_US_Obj.pdf http://bankrupt.com/misc/Mendocino_Withr_US_Obj.pdf A copy of the Disclosure Statement explaining the terms of the Plan is available for free at: http://bankrupt.com/misc/Mendocino_C_DS_Plan.pdf A copy of the Plan Confirmation Order is available for free at: http://bankrupt.com/misc/Mendocino_C_Plan_Order.pdf The Debtor's attorneys can be reached at: Henry C. Kevane, Esq. Gail S. Greenwood, Esq. PACHULSKI STANG ZIEHL & JONES LLP 150 California Street, 15th Floor San Francisco, CA 94111-4500 Telephone: (415) 263-7000 Facsimile: (415) 263-7010 E-mail: hkevane@pszjlaw.com gsgreenwood@pszjlaw.com About Mendocino Coast Recreation Fort Bragg, California-based Mendocino Coast Recreation and Park District filed for Chapter 9 protection (Bankr. N.D. Calif. Case No. 11-14625) on Dec. 9, 2011. Douglas B. Provencher, Esq., at Law Offices of Provencher and Flatt, represents the Debtor. The Debtor estimated assets as $10 million to $50 million and debts at $1 million to $10 million. The petition was signed by James C. Hurst, executive director. Westamerica Bank objected to the petition on the ground that the District failed to meet the Chapter 9 eligibility requirements in Section 109(c)(5)(B) of the Bankruptcy Code. The Bankruptcy Court overruled the Bank's objection. MIDWEST ENERGY: Schneider Expresses Going Concern Doubt ------------------------------------------------------- Midwest Energy Emissions Corp. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K for the fiscal year ended Dec. 31, 2014. Schneider Downs & Co., Inc., expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has suffered recurring losses from operations and has a net capital deficiency. The Company reported a net loss of $5.01 million on $2.79 million in revenue for the year ended Dec. 31, 2014, compared to a net loss of $4.85 million on $1.67 million of revenues in the same period last year. The Company's balance sheet at Dec. 31, 2014, showed $17.3 million in total assets, $21.9 million in total liabilities, and a stockholders' deficit of $4.58 million. A copy of the Form 10-K is available at: http://is.gd/lgBh2L Lewis Center, Ohio-based Midwest Energy Emissions Corp. (MEEC) is an environmental services company specializing in mercury emission control technologies, primarily to utility and industrial coal-fired units. The Company's business focuses to deliver mercury capture technologies to power plants and other industrial coal-burning units in the United States, Canada, Europe and Asia. MISSISSIPPI PHOSPHATES: Can Hire DTBA for eDiscovery Services ------------------------------------------------------------- The Hon. Katharine M. Samson of the U.S. Bankruptcy Court for the Southern District of Mississippi granted the request of Mississippi Phosphates Corporation and its debtor-affiliates to employ Deloitte Transactions and Business Analytics LLP to provide the Debtors with "other services" nunc pro tunc to Dec. 20 2014. The Debtors said they need DTBA and its affiliates to provide to their counsel these services as requested by the Debtors and agreed to by DTBA: a) provide document review services; and b) provide the following electronic discovery services: -- collection of data; -- processing of data; -- hosting of data; -- Production of data; and -- provide such other Services as may reasonably be required. The Debtors added the services rendered by DTBA personnel will be as a non-testifying consultant. The firm's professionals and their compensation rates: Designations Hourly Rates ------------ ------------ Partner, Principal, Director $450 Senior Manager $350 Manager $300 Senior Associate $250 Associate $200 USI Reviewer $27 US Reviewer $55 Review Team Manager $120 The Debtors assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Mississippi Phosphates Mississippi Phosphates Corporation is a major United States producer and marketer of diammonium phosphate ("DAP"), one of the most common types of phosphate fertilizer. MPC, which was formed as a Delaware corporation in October 1990, owns a DAP facility in Pascagoula, Mississippi, which was acquired from Nu-South, Inc. in its 1990 bankruptcy. Phosphate rock, the primary raw material used in the production of DAP, is being supplied by OCP S.A., a corporation owned by the Kingdom of Morocco. The parent, Phosphate Holdings, Inc., was formed in December 2004 in connection with the bankruptcy reorganization of MPC and its then-parent Mississippi Chemical Corporation, the first fertilizer cooperative in the United States. As of Oct. 27, 2014, MPC has a work force of 250 employees, broken into 224 regular employees and 26 "nested" third-party contract employees. MPC and its subsidiaries, namely Ammonia Tank Subsidiary, Inc., and Sulfuric Acid Tanks Subsidiary, Inc., sought Chapter 11 bankruptcy protection (Bankr. S.D. Miss. Lead Case No. 14-51667) on Oct. 27, 2014. Judge Katharine M. Samson is assigned to the cases. Mississippi Phosphates disclosed $98.8 million in assets and $141 million plus an unknown amount in liabilities. Affiliates Ammonia Tank and Sulfuric Acid Tanks each estimated $1 million to $10 million in both assets and liabilities. The Debtors have tapped Stephen W. Rosenblatt, Esq., at Butler Snow LLP as counsel. The official committee of unsecured creditors tapped Burr & Forman LLP as its counsel. MORTGAGE FUND '08: In Pari Delicto Appeal Brewing in Ninth Circuit ------------------------------------------------------------------ Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that the U.S. Court of Appeals in San Francisco may have an opportunity in the next year to decide whether it will line up with seven other circuit courts and saddle a bankruptcy trustee with the misdeeds of the bankrupt company. According to the report, the trustee for a bankrupt company sued a bank for aiding and abetting fraud. The bankruptcy judge dismissed the suit on several grounds. U.S. District Judge Susan Illston in San Susan Illston Francisco upheld the dismissal also for, among other things, the "in pari delicto" doctrine. The case is Uecker v. Wells Fargo Capital Finance LLC (In re case Mortgage Fund '08 LLC), 14-993, 2015 BL 79765, U.S. District Court, Northern District of California (San Francisco). MURRAY ENERGY: Moody's Hikes CFR to B2 & Term Loan Rating to Ba3 ---------------------------------------------------------------- Moody's Investors Service, on March 20, 2015, upgraded the corporate family rating of Murray Energy Corporation to B2 from B3, its probability of default rating to B2-PD from B3-PD, the rating on the existing senior secured term loan to Ba3 from B1, and the rating on the existing second lien debt to B3 from Caa1. At the same time, Moody's assigned ratings to the proposed new debt, including Ba3 rating to the $1.6 billion first lien term loan and B3 rating to $860 million second lien notes. The proceeds of the financing are expected to be used to fund the $1.4 billion purchase price to acquire the controlling interest in in Foresight Energy LP and Foresight Energy GP LLP (together "Foresight"), and to refinance $1 billion of the existing first lien term loan. The outlook is positive. This concludes the review initiated on March 16, 2015 when Moody's placed all ratings of Murray on review for possible upgrade following the company's announcement that it had entered into a definitive agreement to acquire a controlling interest in Foresight. Following the closing, Murray will hold roughly 80% of general partner and 50% of limited partner interests in Foresight Energy (rated B2 Positive). The upgrade reflects the improvement in the company's credit profile following the successful integration of the Northern Appalachian mines acquired from CONSOL late in 2013, with Debt/ EBITDA, as adjusted at 3.1x as of December 31, 2014. Factors supporting the rating are market leadership in Northern Appalachia, operational diversity, solid contract positions, low-cost longwall mines, low-cost barge and truck transportation to power plants served, and good liquidity. The positive outlook reflects the expected improvement in the credit profile of the company if the Foresight acquisition is consummated as contemplated, as a result of increased footprint across two well-positioned coal regions, Illinois Basin (ILB) and Northern Appalachian Basin (NAPP), better producer discipline in the ILB as a result of merging two key suppliers, and low-cost position of many of the combined company's mines. Although the credit profile will remain burdened by the $2 billion in other post-retirement benefits assumed in late 2013 when Murray acquired its NAPP mines from CONSOL, the positive outlook reflects the expectation of positive free cash flows and conservative leverage metrics, with Debt/ EBITDA (as adjusted by Moody's but excluding OPEB) tracking under 4x. That said, the MLP structure of Foresight subsidiary would constrain the ratings, due to the expectation that roughly half of Foresight's free cash flows would be distributed to the MLP unit holders other than Murray. The ratings on first lien and second lien debt reflect their respective position in capital structure with respect to claim to collateral and assume no cross-guarantees between Murray and Foresight with respect to each company's debt. Moody's expect the company to have good liquidity, which included almost $290 million in cash and cash equivalents at Dec. 31, 2014. The ratings could be upgraded upon successful execution and integration of Foresight acquisition and if free cash flows were expected to be positive with Debt/ EBITDA, as adjusted, maintained below 4x. A negative rating action would be considered if Debt/ EBITDA were expected to rise above 5x or if liquidity were to deteriorate. The principal methodology used in these ratings was Global Mining Industry published in August 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. NAVISTAR INT'L: S&P Revises Outlook & Affirms 'CCC+' CCR -------------------------------------------------------- Standard & Poor's Ratings Services said it revised its rating outlook on Illinois-based truckmaker Navistar International Corp. to positive from developing. In addition, S&P affirmed all its ratings on the company, including S&P's 'CCC+' corporate credit rating. "The positive outlook reflects the incremental improvements Navistar has demonstrated in profitability and operating results over the last few quarters," said Standard & Poor's credit analyst Robyn Shapiro. Operating performance has benefitted from favorable end-market conditions along with reduced costs. The company has had reduced warranty spending and expense, and has improved material, manufacturing, and structural costs. The positive rating outlook reflects S&P's view that Navistar's incremental improvements in profitability and operating performance will likely continue this year. There is at least a one-in-three chance we will raise the ratings in the next 12 months if the company demonstrates that it has recaptured the market share it needs for viability; maintains profitability and starts to generate free cash flow; has adequate liquidity, in our view; and makes meaningful progress in reducing its debt burden and improving its credit metrics. Although the company's progress has been slow in winning back share with its revamped product line, there are some bright spots, including improved orders in the first quarter of the company's fiscal year. S&P could lower its rating at any point if Navistar's liquidity deteriorates more rapidly than S&P anticipates. For example, this could occur as a result of a serious falloff in sales, a new quality problem, or loss of trade credit. NII HOLDINGS: KPMG Expresses Going Concern Doubt ------------------------------------------------ NII Holdings, Inc., filed with the U.S. Securities and Exchange Commission on March 10, 2015, its annual report on Form 10-K for the year ended Dec. 31, 2014. The Company reported a net loss of $1.96 billion on $3.69 billion of operating revenues for the year ended Dec. 31, 2014, compared with a net loss of $1.65 billion on $4.71 billion of operating revenues in 2013. The Company's balance sheet at Dec. 31, 2014, showed $5.43 billion in total assets, $7.39 billion in total liabilities, and a stockholders' deficit of $1.96 billion. KPMG LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has suffered recurring losses from operations, has a net capital deficiency, and filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Bankruptcy Code. A copy of the Form 10-K is available at: http://is.gd/XobohS About NII Holdings NII Holdings Inc. through its subsidiaries provides wireless communication services for businesses and consumers in Brazil, Mexico and Argentina. NII Holdings has the exclusive right to use the Nextel brand in its markets pursuant to a trademark license agreement with Sprint Corporation and offers unique push-to-talk ("PTT") services associated with the Nextel brand in Latin America. NII Holdings' shares of common stock, par value $0.001, are publicly traded under the symbol NIHD on the NASDAQ Global Select Market. NII Holdings and its affiliated debtors sought bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-12611) in Manhattan on Sept. 15, 2014. The Debtors' cases are jointly administered and are assigned to Judge Shelley C. Chapman. The Debtors have tapped Scott J. Greenberg, Esq., and Michael J. Cohen, Esq., of Jones Day as counsel and Prime Clerk LLC as claims and noticing agent. NII Holdings disclosed $1.22 billion in assets and $3.068 billion in liabilities as of the Chapter 11 filing. The U.S. Trustee for Region 2 appointed five creditors of NII Holdings to serve on the official committee of unsecured creditors. The Committee is represented by Kenneth H. Eckstein, Esq., and Adam C. Rogoff, Esq., at KRAMER LEVIN NAFTALIS & FRANKEL LLP. Capital Group, one of the Backstop Parties, is represented by Andrew N. Rosenberg, Esq., Elizabeth R. McColm, Esq., and Lawrence G. Wee, Esq., at PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP. Aurelius, one of the Backstop Parties, is represented by Daniel H. Golden, Esq., David H. Botter, Esq., and Brad M. Kahn, Esq., at AKIN GUMP STRAUSS HAUER & FELD LLP. * * * The Plan and Disclosure Statement, filed on Dec. 22, 2014, allow the Debtors to strengthen their balance sheet by converting $4.35 billion of prepetition notes into new stock and provide the Debtors with $500 million of new capital. The Plan also permits the Debtors to avoid the incurrence of significant litigation costs and delays in connection with potential litigation claims and exit bankruptcy protection expeditiously and with sufficient liquidity to execute their business plan. OAS GROUP: Files Judicial Recovery Application for Nine Companies ----------------------------------------------------------------- OAS Group on March 31 filed an application for Judicial Recovery of nine of their companies to the Judiciary of the State of Sao Paulo in Brazil. The initiative was the best path found by the Group to renegotiate their debts with creditors and suppliers in view of the intense restriction of credit observed since the end of last year. OAS also decided that it will concentrate efforts on what is its primary purpose, heavy construction. "The infrastructure sector depends on intense capital financing for the development of projects that support the economic growth of the Country. Since the beginning of the investigations at Petrobras, the financial institutions have systematically restricted the access of enterprises to the resources necessary for the maintenance of projects. With almost 40 years in operation, the OAS has been compelled to take measures that will enable it to continue to operate in a healthy process of renegotiation of debts, while preserving thousands of direct and indirect jobs," says Fabio Yonamine, OAS Investments president. OAS will bring to this case's table very distinct contributions from those observed in other Judicial Recoveries. A company having the resources to maintain their activities, valiant assets and a team of professional managers provides the customers, creditors and suppliers a much safer environment for negotiations. "We will sell our assets in a Judicial Recovery case in order to give safety to the investors so that they are not at risk of having their business disputed in Justice by OAS creditors. The divestment of assets is motivated also by the decision to prioritize the core business of the Group, which is our heavy construction arm, Construtora OAS," says Diego Barreto, Construtora OAS Corporate Development director. Assets that will be put up for sale are the participation of OAS S.A. in Invepar (24.44% of the business), the slice of Enseada Shipyard (17.5%), OAS Empreendimentos (80%), OAS Soluçoes Ambientais (100%), OAS Oleo e Gas (61%) and OAS Defesa (100%). Arena Fonte Nova (50%) and Arena das Dunas (100%) will also be traded. Mr. Barreto also emphasizes that Construtora OAS is applying for Judicial Recovery for technical reasons, since it is a guarantor of the funding of the Group, not because of a lack of liquidity, which is a problem that has reached the other companies included in the application (OAS S.A. , OAS Imoveis S.A., SPE Gestao e Exploracao de Arenas Multiuso, OAS Empreendimentos S.A., OAS Infraestrutura S.A., OAS Investments Ltd., OAS Investments GmbH and OAS Finance Ltd.). After the granting of the recovery application by the Judiciary, OAS will have 60 days to submit the plan for the restructuring of debts to creditors and suppliers, who will have 120 additional days to discuss and approve the proposal. Debts incurred up to today's date (March 31) will be frozen and renegotiated. All debts made from the month of April will be fully complied with. Payment of salaries and benefits of employees are not affected by the Judicial Recovery process. Directly or indirectly, there are more than 100 thousand employees involved. The Judicial Recovery application does not include the Special-Purpose Societies (SPEs - "Sociedades de Proposito Especifico") of OAS Empreendimentos, which are responsible for the development and construction of real estate ventures in several Brazilian States. This way, no purchasers of the properties will be affected by any agreement established within the Judicial Recovery. Also excluded from the Judicial Recovery are Arena das Dunas, Arena Fonte Nova, OAS Solucoes Ambientais and OAS Oleo e Gas, in addition to OAS holdings in the Porto Novo dealership, in Enseada Shipyard, in OAS Logistica, in OAS Energy and OAS Defesa. The difficulties for OAS began in November, from the investigations on Petrobras, which resulted in the termination of credit lines. At the same time, customers briefly suspended their payments and new contracts. As a result, rating agencies have lowered OAS's grade, which has led to the early maturity of its debts. With the aggravation of the situation, OAS has decided, at the end of 2014, to temporarily suspend the payment of debts maturing in January. The immediate goal was to continue the operations, maintain the payroll up to date and fulfill tax commitments. Construtora OAS is investing in a professionalized governance, in the corporate remodeling, in the reviewing of their management processes, in the strengthening of the compliance and internal audit departments, in addition to strict guidelines to reduce risks in conducting business. The goal is to make the company leaner, more agile, more competitive, focused on productivity and costs. ONE FOR THE MONEY: April 28 Fixed as Claims Bar Date ---------------------------------------------------- The Bankruptcy Court established April 28, 2015, as the deadline for any individual or entity to file proofs of claim against One For The Money LLC. The Debtor, as part of its reorganization, finds it essential to determine and fix its liabilities so as to analyze potential claims and its classification, which will, in turn, further facilitate the Debtor's proposed plan of reorganization. The Debtor has filed schedules of assets and liabilities and statement of financial affairs with the Bankruptcy Court. In order for it to properly proceed with a plan of reorganization, creditors be advised that they must file their claims by a specific time. About One For The Money One For The Money, LLC, sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 15-10188) in Manhattan on Jan. 28, 2015, without stating a reason. The petition was signed by Anthony M. Marano as managing member. The Debtor is owned by the Maranos and the Galassos. The largest shareholder is Anthony C. Marano, who owns 42%. The Debtor reported $12,500,000 in total assets, and $15,927,306 in total liabilities. Jonathan S. Pasternak and the law firm of DelBello Donnellan Weingarten Wise & Wiederkehr, LLP, in White Plains, New York, has been tapped as counsel. The Debtor's Chapter 11 plan is due by Nov. 24, 2015. OPEN RANGE: USDA Slips Subcontractor's $10MM Payment Claim ---------------------------------------------------------- Law360 reported that the Federal Circuit upheld a ruling that the U.S. Department Agriculture isn't obligated to reimburse a subcontractor denied approximately $10 million for work on a USDA wireless Internet construction project by a bankrupt prime contractor. According to the report, the appellate panel determined that the USDA's Rural Utilities Service wasn't liable for the $10.3 million that bankrupt Open Range Communications Inc. still owed G4S Technology LLC for its work building wireless broadband systems in rural areas. The case is G4S Technology LLC v. US, Case No. 14-5078. About Open Range Greenwood Village, Colo.-based Open Range Communications Inc., a provider of wireless broadband services to 26,000 rural customers in 12 states, filed a Chapter 11 petition (Bankr. D. Del. Case No. 11-13188) on Oct. 6, 2011, to either sell the business or shut down and liquidate. Open Range disclosed about $115.1 million in assets and $102.8 million in debts. Open Range started its WiMax broadband and voice service in late 2009, backed by a $267 million loan from the U.S. Department of Agriculture's Rural Utility Service and $100 million invested by One Equity Partners, a financing arm of JPMorgan Chase & Co. Judge Kevin J. Carey presides over the case. Marion M. Quirk, Esq., at Cole, Schotz, Meisel, Forman & Leonard, serves as bankruptcy counsel. Logan & Co. serves as claims agent. FTI Consulting, Inc., provided a chief restructuring officer, Michael E. Katzenstein; an associate chief restructuring officer, Chris Lewand; and hourly temporary staff. The petition was signed by Chris Edwards, chief financial officer. In December 2011, Open Range shut down operations after failing to get the broadcast spectrum it needed, problems with network quality and vendors, and the "sporadic" flow of money from a $267 million federal loan, of which Open Range owes a balance of $73.5 million. Open Range hired RB Capital LLC and Heritage Global Partners Inc. as auctioneers and sales agents to conduct an auction of the assets. In February 2012, the Debtor obtained an order converting the case to Chapter 7 liquidation. The Debtor said it was unlikely to have a reorganization plan resolving the Internet provider's potential claims against the U.S. Department of Agriculture over a $267 million loan. Charles Forman was appointed Chapter 7 trustee. ORCKIT COMMUNICATIONS: Liquidator Needs One Year to Complete Plan ----------------------------------------------------------------- On March 12, 2015, Adv. Lior Dagan, the temporary liquidator of Orckit Communications Ltd. filed with the District Court of Tel Aviv a proposed operating plan with respect to an additional period of 12 months commencing from March 2015. On March 15, 2015, the temporary liquidator filed with the Court a request for an exemption from any personal liability for damages and/or expenses, if any, that may be caused, directly or indirectly, in connection with his operating the Company or the foregoing operating plan. On the same day, the Court ordered that notice of such request be provided to the shareholders and creditors of the Company, with an opportunity for them to submit reservations to the Court by April 14, 2015. On March 26, 2015, at the request of the temporary liquidator, the Court clarified that notice to the Company's shareholders may be provided by means of electronic filings with the U.S. Securities Exchange Commission and the Israel Securities Authority, rather than personal delivery. The report on Form 6-K filed on March 30, 2015, constitutes that notice. About Orckit Communications Ltd. (in temporary liquidation) Orckit facilitates the delivery by telecommunication providers of high capacity broadband residential, business and mobile services over wireline or wireless networks with its Orckit-Corrigent family of products. Orckit was founded in 1990 and became publicly traded in 1996. Orckit's shares are traded on the OTCQB and the Tel Aviv Stock Exchange and is headquartered in Tel-Aviv, Israel. Kesselman & Kesselman, in Tel Aviv, Israel, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has a capital deficiency, recurring losses, negative cash flows from operating activities and has significant future commitments to repay its convertible subordinated notes. These facts raise substantial doubt as to the Company's ability to continue as a going concern. Orckit reported a net loss of $5.9 million in 2013, a net loss of $4.5 million in 2012 and a net loss of $17.5 million in 2011. As of Dec. 31, 2013, the Company had $7.51 million in total assets, $21.54 million in total liabilities and a $14.03 million total capital deficiency. ORCKIT COMMUNICATIONS: Settles Delaware Investment Lawsuit ---------------------------------------------------------- A settlement agreement has been reached between Orckit Communications Ltd. and two funds of Hudson Bay Capital in connection with a lawsuit filed by Orckit in the Delaware Chancery Court against Networks3, Inc. and two funds of Hudson Bay Capital for unlawful breach of the Strategic Investment Agreement dated March 12, 2013. At a hearing in January 2015, the Court said that it plans to issue a formal ruling granting the motion to dismiss filed by Networks3 but reserved decision on whether the Hudson Bay Capital funds can remain in the lawsuit without Networks3 and asked the parties to consider submitting additional briefing on this question. The parties have agreed to a settlement whereby the two funds of Hudson Bay Capital would pay the Company the sum of $75,000 and the parties would jointly file a voluntary dismissal with prejudice of the lawsuit, with each party to bear its own costs. In addition, pursuant to the settlement agreement, each party would undertake to release and not to sue the opposing party for any claims or causes of action that were asserted or may have been asserted in the lawsuit. The settlement agreement is subject to the approval of the District Court of Tel Aviv. About Orckit Communications Ltd. (in temporary liquidation) Orckit facilitates the delivery by telecommunication providers of high capacity broadband residential, business and mobile services over wireline or wireless networks with its Orckit-Corrigent family of products. Orckit was founded in 1990 and became publicly traded in 1996. Orckit's shares are traded on the OTCQB and the Tel Aviv Stock Exchange and is headquartered in Tel-Aviv, Israel. Kesselman & Kesselman, in Tel Aviv, Israel, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has a capital deficiency, recurring losses, negative cash flows from operating activities and has significant future commitments to repay its convertible subordinated notes. These facts raise substantial doubt as to the Company's ability to continue as a going concern. Orckit reported a net loss of $5.9 million in 2013, a net loss of $4.5 million in 2012 and a net loss of $17.5 million in 2011. As of Dec. 31, 2013, the Company had $7.51 million in total assets, $21.54 million in total liabilities and a $14.03 million total capital deficiency. OTERIA MOSES: 233% "Tribal Loan" Found Illegal by Fourth Circuit ---------------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that an appeals court tied itself in knots to resolve a case involving what one judge called a "clearly illegal" $1,000 loan that would have cost the borrower almost five times that amount to repay. According to the report, a North Carolina woman who needed $1,000, signed documents for a $1,500 loan, $500 of which the lender immediately retained as a fee. The interest rate on the loan was 149 percent, making the effective annual rate 233 percent with the fee included, and the lender wasn't licensed to do business in North Carolina, where the maximum interest rate on similar loans was 16 percent. The loan documents said the loan was subject to American Indian tribal law, with disputes to be decided in arbitration by a representative of the Cheyenne River Sioux, the report said. Although all the information was disclosed, the loan was "clearly illegal under North Carolina law," U.S. Circuit Judge Paul V. Niemeyer said, the report related. The case is Moses v. CashCall Inc., 14-1195, 2015 BL 70105, case U.S. Court of Appeals for the Fourth Circuit (Richmond). OWENS-BROCKWAY GLASS: S&P Cuts Sr. Unsecured Notes Rating to 'BB' ----------------------------------------------------------------- Based on preliminary terms and conditions, Standard & Poor's Ratings Services assigned its 'BBB' senior secured debt rating and '1' recovery rating to Perrysburg, Ohio-based Owens-Illinois Inc.'s proposed $2.1 billion five-year senior secured credit facility. These ratings indicate S&P's expectation for very high (90% to 100%) recovery in the event of a payment default. Owens-Illinois plans to use the proceeds of the new facility to refinance borrowings under its existing credit facility and refinance upcoming debt maturities. At the same time, S&P lowered its issue rating on the senior unsecured notes issued by Owens-Brockway Glass Container Inc. to 'BB' from 'BB+', based on a revision in the recovery rating to '5' from '4'. The '5' recovery rating indicates S&P's expectation for modest (10% to 30%; in the lower half of the range) recovery in the event of a payment default. This change reflects lower recovery prospects due to the proposed increase in secured debt. At the same time, S&P affirmed all its other existing ratings, including the 'BB+' corporate credit rating, on Owens-Illinois and its subsidiaries. The outlook is stable. "Our corporate credit rating on Owens-Illinois Inc. is derived from an anchor score of 'bbb-', based on our 'satisfactory' business risk and 'significant' financial risk profile assessments for the company," said Standard & Poor's credit analyst Liley Mehta. S&P chose the higher outcome between 'bbb-' and 'bb+' based on its assessment that Owens-Illinois' business risk profile is at the stronger end of "satisfactory". S&P lowers the anchor score by one notch based on an unfavorable comparative rating assessment, reflecting weaker credit measures relative to peers, and ongoing asbestos litigation. Owens-Illinois is a global leader in glass packaging, with leading market shares in each of its four regions, namely North America, Europe, South America, and Asia-Pacific. In 2014, nearly 72% of its sales were outside the U.S. Moreover, Owens-Illinois' strong geographic presence, including over 20% of its earnings from the emerging markets, mitigates the risk of overexposure to economic cycles and enhances the company's growth opportunities. However, the company is exposed to some concentration risk with its earnings and cash flows coming from a few products, end markets, and customers. This is evident with the declining demand for mega beer, which is a key end market for Owens-Illinois in the U.S. Also, the company is somewhat vulnerable to product substitution risk from alternative materials in these mature glass-packaging markets. Nevertheless, glass remains the packaging of choice for popular upscale iced teas, wines, and certain beverages and foods that rely on its superior marketing image and preservative qualities (by keeping out oxygen). The stable outlook reflects S&P's view that Owens-Illinois' financial policies are prudent and its management is committed to lowering leverage, so that the company can maintain the ratio of FFO and total adjusted debt in the 20% to 25% range and total debt to EBITDA of 3.5x to 4x, which are commensurate with the current ratings. S&P believes Owens-Illinois will generate healthy free cash and apply it toward share repurchases and debt reduction in 2015. S&P could lower the ratings slightly if Owens-Illinois' credit measures deteriorated, including FFO to total adjusted debt declining to 15% or lower with no prospect of recovery. Based on S&P's scenario forecasts, this could occur if the company is unable to pass higher costs to its customers in a timely manner or if economic weakness materially depresses demand. This could cause the company's volumes to decline and EBITDA margin to decline by more than 200 basis points from the current level. S&P could also lower the ratings if the company pursues debt-financed acquisitions, resulting in deterioration in credit metrics. Although unlikely in the next few years, S&P could raise the ratings if Owens-Illinois reduces its leverage beyond S&P's expectation, such that its FFO to total adjusted debt ratio exceeds 30% on a sustainable basis. PENN PRODUCTS: S&P Retains 'BB-' ICR Over Upsized Debt ------------------------------------------------------ Standard & Poor's Ratings Services said that its 'BB-' issuer credit rating is unchanged after Penn Products Terminals LLC upsized its proposed term loan B issuance to $600 million from $575 million and its proposed revolving credit facility to $150 million from $125 million; S&P also revised its interest rate pricing assumptions for the issuance. The outlook is stable. The '2' recovery rating on both facilities is also unchanged. This indicates expected "substantial" recovery (70% to 90%) in case of default; the recovery is in the lower end of this band. Penn Products Terminals is issuing this debt to fund its acquisition by ArcLight Capital. The issuer is the largest distributor and storer of refined products in Pennsylvania. It benefits from some pricing flexibility based on its size, but is more regionally focused than other similar issuers. S&P expects it to have debt to EBITDA of about 4.2x during the next two years. RATINGS LIST Ratings Unchanged Penn Products Terminals LLC Corp credit rating BB-/Stable/-- $600 million term loan B BB Recovery Rating 2L $150 million revolver BB Recovery rating 2L PORTER BANCORP: Posts $11 Million Net Loss in 2014 -------------------------------------------------- Porter Bancorp, Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $11.2 million on $39.5 million of interest income for the year ended Dec. 31, 2014, compared to a net loss of $1.58 million on $43.2 million of interest income for the year ended Dec. 31, 2013. The Company previously reported a net loss of $32.93 million in 2012. As of Dec. 31, 2014, Porter Bancorp had $1.01 billion in total assets, $985 million in stockholders' equity and $33.5 million in total stockholders' equity. Crowe Horwath, LLP, in Louisville, Kentucky, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred substantial losses in 2014, 2013 and 2012, largely as a result of asset impairments resulting from the re-evaluation of fair value and ongoing operating expenses related to the high volume of other real estate owned and non-performing loans. In addition, the Company's bank subsidiary is not in compliance with a regulatory enforcement order issued by its primary federal regulator requiring, among other things, increased minimum regulatory capital ratios as well as being involved in various legal proceedings in which the Company disputes material factual allegations against the Company. Additional losses, adverse outcomes from legal proceedings or the continued inability to comply with the regulatory enforcement order may result in additional adverse regulatory action. These events raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/nOfOBO About Porter Bancorp Porter Bancorp, Inc., is a bank holding company headquartered in Louisville, Kentucky. Through its wholly-owned subsidiary PBI Bank, the Company operates 18 full-service banking offices in 12 counties in Kentucky. POSITVEID CORP: Incurs $8.22 Million Net Loss in 2014 ----------------------------------------------------- PositiveID Corporation filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss attributable to common stockholders of $8.22 million on $945,000 of revenue for the year ended Dec. 31, 2014, compared with a net loss attributable to common stockholders of $13.33 million on $0 of revenue for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $1.02 million in total assets, $9.46 million in total liabilities, and a $8.44 million total stockholders' deficit. Salberg & Company, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014. The accounting firm noted that the Company reported a net loss, and used cash for operating activities of approximately $8.61 million and $2.57 million respectively, in 2014. At Dec. 31, 2014, the Company had a working capital deficiency, stockholders' deficit and accumulated deficit of approximately $8.076 million, $8.45 million and $133 million, respectively. These matters raise substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. A full-text copy of the Form 10-K is available for free at: http://is.gd/AMF2Ow About PositiveID Delray Beach, Fla.-based PositiveID Corporation has historically developed, marketed and sold RFID systems used for the identification of people in the healthcare market. Beginning in early 2011, the Company has focused its strategy on the growth of its HealthID business, including the continued development of its GlucoChip, its Easy Check breath glucose detection device, its iglucose wireless communication system, and potential strategic acquisition opportunities of businesses that are complementary to its HealthID business. PRINCIPAL SOLAR: Whitley Penn Expresses Going Concern Doubt ----------------------------------------------------------- Principal Solar, 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. Whitley Penn LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has negative cash flows from operating activities, negative working capital, and an accumulated deficit of $10.5 million as of December 31, 2014. The Company reported a net loss of $3.33 million on $975,000 of revenue for the year ended Dec. 31, 2014, compared with a net loss of $2.35 million on $491,000 of revenues in the same period last year. The Company's balance sheet at Dec. 31, 2014, showed $8.09 million in total assets, $7.79 million in total liabilities, and a stockholders' equity of $301,200. A copy of the Form 10-K is available at: http://is.gd/9tJ7hN Dallas, Texas-based, Principal Solar, Inc. (PSI), formerly Kupper Parker Communications, Incorporated, is a renewable energy holding company. The Company focuses its resources on the acquisition, finance, development, and management of solar power companies to utilize solar power. RADIOSHACK CORP: Judge Approves Sale to Standard General -------------------------------------------------------- Peg Brickley, writing for The Wall Street Journal, reported that U.S. Bankruptcy Judge Brendan Linehan Shannon authorized RadioShack Corp., et al., to sell most of its stores to hedge fund Standard General LP in a deal that will send the retailer out of bankruptcy in pared-down form, but still selling electronics. According to the Journal, Judge Shannon clears the way for Standard General to save 1,743 stores and 7,500 jobs in a streamlined relaunch of the business. Standard General, a senior lender, offered more money for the company than rivals, and was the only bidder to offer the "added and terribly important benefit of saving more than 7,000 jobs and preserving a century-old American retailing icon," the Journal said, citing Judge Shannon. Dawn McCarty and Steven Church, writing for Bloomberg News, reported that Judge Shannon said in court that he is taking seriously the request by the ABL lenders for lawsuit protection because they're secured creditors. He also told the two sides to negotiate an amount less than $120 million. Judge Shannon said he was "troubled" by the parties' positions on certain issues and doesn't want to turn the company over to liquidator Hilco Merchant Resources. Judge Shannon also questioned whether RadioShack would be able to survive as a going concern even if he approves a proposed transaction with Standard General, but decided to approve the transaction nevertheless, over the objections of several lender constituencies that pressed against the deal during the four-day hearingLaw360 reported. Ruling from the bench in Wilmington, Judge Shannon said he would allow Standard General's credit bid to stand, one of many sticking points about the sale for dissenting lenders, Law360 related. About Radioshack Corporation Fort Worth, Texas-based RadioShack (NYSE: RSH) -- http://www.radioshackcorporation.com/-- is a retailer of mobile technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack's retail network includes more than 4,300 company-operated stores in the United States, 270 company-operated stores in Mexico, and approximately 1,000 dealer and other outlets worldwide. RadioShack Corporation and affiliates filed separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No. 15-10197) on Feb. 5, 2015. The petitions were signed by Joseph C. Maggnacca, chief executive officer. Judge Kevin J. Carey presides over the case. David G. Heiman, Esq., Greg M. Gordon, Esq., Amanda M. Suzuki, Esq., Jonathan M. Fisher, Esq., Thomas A. Howley, Esq., and Paul M. Green, Esq., at Jones Day serve as the Debtors' bankruptcy counsel. David M. Fournier, Esq., Evelyn J. Meltzer, Esq., and John H. Schanne, II, Esq., at Pepper Hamilton LLP serve as co-counsel. Carlin Adrianopoli at FTI Consulting, Inc., is the Debtors' restructuring advisor. Maeva Group, LLC, is the Debtors' turnaround advisor. Lazard Freres & Co. LLC is the Debtors' investment banker. A&G Realty Partners is the Debtors' real estate advisor. Prime Clerk is the Debtors' claims and noticing agent. The Debtors disclosed total assets of $1.2 billion, versus total debt of $1.3 billion. Radioshack reported a net loss of $400.2 million in 2013, a net loss of $139 million in 2012, and net income of $72.2 million in 2011. The Company's balance sheet at Aug. 2, 2014, showed $1.14 billion in total assets, $1.21 billion in total liabilities, and a $63 million total shareholders' deficit. The U.S. Trustee has appointed seven members to the Official Committee of Unsecured Creditors. The Committee has retained Cooley LLP and Quinn Emanuel Urquhart & Sullivan LLP as lead co-counsel; Whiteford, Taylor & Preston, LLC, as the Delaware counsel; and Houlihan Lokey Capital, Inc., as financial advisor. REALBIZ MEDIA: Incurs $1.67-Mil. Net Loss for Q1 Ended Jan. 31 -------------------------------------------------------------- RealBiz Media Group, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $1.67 million on $293,000 of revenue for the three months ended Jan. 31, 2015, compared with a net loss of $1.45 million on $246,000 of revenue for the same period last year. The Company's balance sheet at Jan. 31, 2015, showed $3.84 million in total assets, $2.96 million in total liabilities, and stockholders' equity of $884,000. The Company has incurred net losses of $1.67 million for the three months ended January 31, 2015. At January 31, 2015, the Company had a working capital deficit of $2.45 million and an accumulated deficit of $17.04 million. It is management's opinion that these facts raise substantial doubt about the Company's ability to continue as a going concern without additional debt or equity financing. A copy of the Form 10-Q is available at: http://is.gd/9EXfag RealBiz Media Group, Inc., is a provider of digital media and marketing services to the real estate industry, based in Weston, Florida. The Company generates revenues from advertising, real estate broker commissions and referral fees. REED AND BARTON: Auction Set for April 28 ----------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that Reed & Barton Corp., a designer of fine tableware and giftware since 1824, will go to auction April 28, 2015, if there's a bid to top Lifetime Brands Inc.'s $15 million offer. According to the report, a distributor of products under brand names such as KitchenAid, Mikasa and Cuisinart, Lifetime offered $10 million in cash, a $5 million note subject to adjustment and assumption of specified liabilities for most of the operating assets. Sale procedures approved on March 23 call for competing bids by April 21, the report related. A sale-approval hearing will be held in the bankruptcy court in Springfield, Massachusetts, on April 28, immediately following the conclusion of an open-bid auction, the report added. About Reed and Barton Founded in 1824, Reed and Barton Corporation is a designer and distributor of high quality silverware and tableware, along with flatware, crystal drinkware, picture frames, ornaments, and baby giftware. Reed and Barton, which sells products with the Reed & Barton, Lunt, R&B EveryDay, and Williamsburg brands, is based in Taunton, Massachusetts. The privately held company's stock is owned by 28 record shareholders who either are descendants of Henry Reed or trusts for their benefit. Aside from selling its products in department stores and TV shopping networks, the company has an on-site factory store in Taunton and a showroom in Atlanta, Georgia. Reed and Barton sought Chapter 11 bankruptcy protection (Bankr. D. Mass. Case No. 15-10534) in Boston, Massachusetts, on Feb. 17, 2015. The case is assigned to Judge Henry J. Boroff. The Debtor has tapped Holland & Knight, in Boston, as counsel; Financo, LLC, as investment banker; and Verdolino & Lowey, P.C., as accountant. The Debtor estimated $10 million to $50 million in assets and debt. RICCO INC: Bankr. Trustee Wins Conversion of Case to Chapter 7 -------------------------------------------------------------- Robert L. Johns, the Chapter 11 trustee of the bankruptcy estate of Ricco, Inc., sought and obtained from the U.S. Bankruptcy Court for the Northern District of West Virginia an order converting the Debtor's Chapter 11 case to a Chapter 7 liquidation. The Trustee, since his appointment, has operated the estate's interest in over 2,000 acres of real estate, hunting camp, and mineral interests. Pursuant to various court orders, the Trustee has closed the sale of all the estate's real estate interests. The estate is not involved in any other business activities. The Trustee told the Court that he does not intend to file a plan. The Trustee believes the estate can be more efficiently administered under Chapter 7. The United States Trustee and the creditors committee did not object to a conversion of the case to Chapter 7. In his March 25, 2015 order converting the case, Judge Patrick M. Flatley ruled that: * The Chapter 11 Trustee will file and transmit to the U.S. Trustee within 30 days a final report and account. * A new time period for filing a motion under 11 U.S.C. Sec. 707(b) or (c), objecting to a claim of exemption, filing claims, filing a complaint objecting to discharge, or filing a complaint to determine dischargeability of any debt will commence in accordance with Fed. R. Bankr. P. 1017, 1019(2), 3002, 4004, or 4007. * The conversion of this case to Chapter 7 does not terminate pending motions. * Robert L. Johns will remain as Chapter 7 Trustee. About Ricco Inc. Elk Garden, West Virginia-based Ricco, Inc. -- aka Amico Partners, Ambizioso Partners, Lupo Tana Partners, and Tre Manichinos Partners -- filed for Chapter 11 bankruptcy protection on Jan. 7, 2010 (Bankr. N.D. W.V. Case No. 10-00023). In its schedules, the Debtor disclosed $15.2 million in assets and $4.094 million in liabilities. On June 28, 2010, Robert Johns was appointed as Chapter 11 Trustee. Wendel B. Turner, Esq., and Robert L. Johns, Esq., at Turner & Johns, PLLC, in Charleston, West Va., serve as counsel to the Trustee. David M. Thomas, Esq., and Michael R. Proctor, Esq., at Dinsmore and Shohl LLP, in Morgantown, W. Va., serve as counsel to the Official Committee of Unsecured Creditors as counsel. SAMSON RESOURCES: May File for Chapter 11 Bankruptcy ---------------------------------------------------- Matt Jarzemsky, writing for The Wall Street Journal, reported that struggling oil-and-gas producer Samson Resources Corp. said in a filing that Chapter 11 bankruptcy protection might offer the best route to restructuring its heavy debt load. According to the report, Samson, based in Tulsa, Okla., is exploring a range of strategic and financial options but a "filing under Chapter 11 of the U.S. bankruptcy code may provide the most expeditious manner in which to effect a capital structure solution," the company said in its 2014 annual report, filed with the Securities and Exchange Commission. Samson, which is controlled by private-equity firm KKR & Co., also disclosed that its auditor found that its financial condition raises substantial doubt about its ability to continue as a going concern, the report related. The Troubled Company Reporter, on Feb. 27, 2015, reported that Samson Resources is working with law firm Kirkland & Ellis LLP's restructuring practice and Blackstone Group LP's restructuring advisory group, as a sharp decline in oil and gas prices complicates its efforts to stem losses and keep current on its multibillion-dollar debt load. * * * The Troubled Company Reporter, on Feb. 19, 2015, reported that Standard & Poor's Ratings Services lowered its corporate credit rating on Tulsa, Okla.-based Samson Resources Corp. to 'CCC+' from 'B-'. The outlook is negative. At the same time, S&P lowered its rating on Samson's revolving credit facility to 'B' (two notches above the corporate credit rating) from 'B+'. The recovery rating on this debt remains '1', indicating S&P's expectation of very high (90% to 100%) recovery in the event of a payment default. S&P also lowered its rating on Samson's second-lien debt to 'CCC+' (the same as the corporate credit rating) from 'B-'. The recovery rating on this debt remains '4', indicating S&P's expectation of average (30% to 50%) recovery in the event of a payment default. S&P also lowered its rating on subsidiary Samson Investment Co.'s unsecured notes to 'CCC-' (two notches below the corporate credit rating) from 'CCC'. The recovery rating on this debt remains '6', indicating S&P's expectation of negligible (0% to 10%) recovery in the event of a payment default. SAMUEL WYLY: Cries Foul Over $300-Mil. SEC Judgment --------------------------------------------------- Law360 reported that former Michael's Stores Inc. part owner Sam Wyly and the estate of his deceased brother have requested a stay and a new trial on the $300 million judgment against them, saying that the SEC didn't prove that the two had control over investment decisions but merely showed that they had some influence. According to the report, the Wylys filed a a motion for a new trial or for judgment as a matter of law and for a stay of enforcement of the judgments. As previously reported by The Troubled Company Reporter, U.S. District Judge Shira Scheindlin in Manhattan ordered Mr. Wyly to pay the U.S. Securities and Exchange Commission $198.1 million for violating securities laws, while saying the estate of his deceased brother is liable for $101.2 million more. The SEC can only collect the damages against Sam Wyly through bankruptcy proceedings or if the bankruptcy is dismissed, according to Judge Scheindlin, the report related. The SEC canâ€™t get anything from the estate of Charles Wyly until a bankruptcy judge in Dallas rules on whether his widow's filing has the effect of barring collection, the report further related. The SEC lawsuit is SEC v. Wyly, 10-cv-05760, U.S. District Court, Southern District of New York (Manhattan). About Samuel Wyly Samuel Wyly filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 14-35043) on Oct. 19, 2014, weeks after a judge ordered him to pay several hundred million dollars in a civil fraud case. In September 2014, a federal judge ordered Mr. Wyly and the estate of his deceased brother to pay more than $300 million in sanctions after they were found guilty of committing civil fraud to hide stock sales and nab millions of dollars in profits. About Caroline Wyly Caroline Wyly is the widow of business tycoon Charles Wyly. She and her brother-in-law Sam Wyly sought Chapter 11 bankruptcy protection as leverage to settle a looming tax bill and a $329 million claim from the Securities and Exchange Commission. Her bankruptcy is In re Caroline D. Wyly, 14-35074, in U.S. Bankruptcy Court, Northern District Texas (Dallas). SAN GOLD: Incurs $16.4-Mil. Loss in Fourth Quarter 2014 ------------------------------------------------------- San Gold Corporation on March 30 reported its 2014 annual and fourth quarter financial and operating results. The Company made significant progress in 2014 toward optimizing its Rice Lake operations, eliminating significant inefficiencies and implementing a revised 1,000 ton per day mine plan under the leadership of a renewed management team. Substantial definition drilling was carried out during the year within the higher grade 710-711 zones and development is now nearly complete in these zones ahead of mining operations. The 710-711 zones are expected to contribute approximately 60% of the mine's future mill feed. As of the date of this report, the Company continues to operate under creditor protection while pursuing its Sales and Investor Solicitation Process (SISP) pursuant to its filing of a Notice of Intent to Make a Proposal under Part III, Division I of the Bankruptcy and Insolvency Act (Canada). The SISP provides the Company with a means of restructuring the Company's finances to a level more appropriate to the optimal run rate established for the Rice Lake gold deposit over the past year. Development has been suspended and mining operations curtailed until the completion of the SISP when the Company will have a clearer understanding of the financial resources available to the Rice Lake mine as it prepares its operational plans for the second half of 2015. The Company recognized a non-cash impairment charge of $71.8 million in the third quarter of 2014 and of $8.4 million in the fourth quarter. These charges are in addition to the non-cash impairment of $83.1 million recognized in 2013. The reduced carrying value of the Company's assets reflects lower gold prices and difficult market conditions within the sector. Loss from operations in the fourth quarter of 2014 was $9.1 million and $90.6 million for the year. Excluding the non-cash impairment charges, operating loss was $0.7 million during the fourth quarter and $10.4 million for the year. Total and comprehensive loss in the fourth quarter of 2014 was $16.4 million and $109.2 million for the year. Excluding the non-cash impairment charges, total and comprehensive loss was $8.0 million during the fourth quarter and $29.0 million for the year. "Turning around the Rice Lake mine required considerable effort and expense in 2014 and we've now addressed the most critical issues. Our job over the next few months is to demonstrate the value of the deposit to potential investors so that we can complete the creditor protection process in anticipation of finally commencing profitable operations at this property," said Greg Gibson, San Gold's President and Chief Executive Officer. Full Year Financial and Operating Summary -- Produced 41,890 ounces of gold. -- Mill throughput of 1,070 tons per day. -- Recognized revenue of $59.0 million on gold sales of 42,149 ounces of gold at a realized price of $1,400 per ounce. -- Recognized an operating loss of $10.4 million and net loss of $29.0 million for the year before non-cash impairment charges of $71.8 million and $8.4 million recognized at the end of the third and fourth quarters of 2014, respectively. Including the non-cash impairment, the operating loss was $90.6 million and the net loss was $109.2 million for the year. -- Generated cash flow from operations of $10.4 million. Before changes to non-cash working capital the Company used $9.4 million. -- Cash and cash equivalents balance of $0.5 million as at December 31, 2013. -- Completed approximately 65,600 metres of underground definition diamond drilling focused on the higher grade 710-711 zones. -- Initiated a turnaround process in March to establish improved operational efficiencies. -- Closed debt financing for gross proceeds of US$26.3 million. -- Filed a Notice of Intent to Make a Proposal on December 22, 2014, the first stage of a creditor protection process that permits the Company to pursue a restructuring of its financial affairs through a formal proposal. Fourth Quarter Financial and Operating Summary -- Quarterly production of 8,407 ounces of gold. -- Mill throughput of 849 tons per day. -- Recognized revenue of $11.3 million on gold sales of 8,341 ounces at a realized price of $1,359 per ounce. -- Recognized an operating loss of $0.7 million and a net loss of $8.0 million. -- Generated cash flow from operations of $8.3 million. Before changes to non-cash working capital the Company used $1.0 million. -- Recognized a non-cash impairment charge of $8.4 million on the Company's mining claims and options. Subsequent Events -- Approved to list on the TSX Venture Exchange. Shares and debentures resumed trading March 24, 2015. -- Closed debt financing for gross proceeds of US$5.4 million. -- Obtained an order granting an extension to April 27 for the Company's proposal trustee to file a proposal to creditors. -- Suspended mine development activities pending completion of Sales and Investor Solicitation Process. -- Announced on March 25, 2015, that the Company will not be funding the $2 million interest payment due March 31 in respect of its subordinated unsecured convertible debentures currently traded on the TSX Venture Exchange. About San Gold San Gold -- http://www.sangold.ca-- is an established Canadian gold producer, explorer, and developer that owns and operates the Rice Lake Mining Complex near Bissett, Manitoba. San Gold is listed on the TSX Venture Exchange under the symbol "SGR". SCIENTIFIC GAMES: Park West Asset Owns 6.6% of Class A Shares ------------------------------------------------------------- In a Schedule 13G filed with the Securities and Exchange Commission, Park West Asset Management LLC and Peter S. Park disclosed that as of March 23, 2015, they beneficially owned 5,670,000 shares of Class A common stock of Scientific Games Corporation, which represents 6.6 percent of the shares outstanding. Park West Investors Master Fund, Limited also reported beneficial ownership of 4,825,470 Class A common shares. A copy of the regulatory filing is available at: http://is.gd/hRKrkV About Scientific Games Scientific Games Corporation is a developer of technology-based products and services and associated content for worldwide gaming and lottery markets. The Company's portfolio includes instant and draw-based lottery games; electronic gaming machines and game content; server-based lottery and gaming systems; sports betting technology; loyalty and rewards programs; and social, mobile and interactive content and services. Visit http://www.scientificgames.com/ Scientific Games reported a net loss of $234 million in 2014, a net loss of $30.2 million in 2013 and a net loss of $62.6 million for 2012. As of Dec. 31, 2014, Scientific Games had $9.99 billion in total assets, $9.99 billion in total liabilities and $3.9 million in total stockholders' equity. * * * The TCR reported on May 21, 2014, that Moody's Investors Service downgraded Scientific Games Corporation's ("SGC") Corporate Family Rating to 'B1'. The downgrade reflects Moody's view that slower than expected growth in SGC's Gaming and Instant Products segments will cause Moody's adjusted leverage to exceed 6.0 times by the end of 2014. As reported by the TCR on Aug. 5, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating to 'B+' from 'BB-' on Scientific Games Corp. "The downgrade and CreditWatch placement follow Scientific Games' announcement that it has agreed to acquire Bally Technologies for $5.1 billion, including the refinancing of about $1.8 billion in net debt at Bally," said Standard & Poor's credit analyst Ariel Silverberg. SCRUB ISLAND: Court Approves $40-Mil. with Lender ------------------------------------------------- Law360 reported that a Florida bankruptcy judge approved a modification to Scrub Island Resort's confirmed plan after the resort reached a $40 million settlement with sole secured lender FirstBank Puerto Rico. According to the report, U.S. Bankruptcy Judge Michael G. WIlliamson granted the parties' joint motion to modify debtor Scrub Island Development Group Ltd.'s confirmed bankruptcy plan, following FirstBank's agreeing to mediate its claims with the debtors after the bank was denied a stay of the case earlier this year. About Scrub Island Scrub Island Development Group Ltd., the owner of a British Virgin Islands luxury resort, and its affiliate, Scrub Island Construction Limited, sought bankruptcy protection (Bankr. M.D. Fla. Case Nos. 13-15285 and 13-15286) on Nov. 19, 2013, to end a receivership Scrub Island claims was secretly put in place by its lender. The bankruptcy case is assigned to Judge Michael G. Williamson. The 230-acre resort operates as a Marriott Autograph Collection property. It has 52 rooms and suites, a spa and a 55-slip marina. Scrub Island Development scheduled $126 million in assets and $131 million in liabilities. The Debtors are represented by Charles A. Postler, Esq., and Harley E. Riedel, Esq., at Stichter, Riedel, Blain & Prosser, in Tampa, Florida. FirstBank Puerto Rico, the prepetition secured lender, is represented by W. Keith Fendrick, Esq., at Holland & Knight LLP, in Tampa, Florida. The Debtors are represented by Charles A. Postler, Esq., and Harley E. Riedel, Esq., at Stichter, Riedel, Blain & Prosser, in Tampa, Florida. FirstBank Puerto Rico, the Debtor's prepetition secured lender, is represented by W. Keith Fendrick, Esq., at Holland & Knight LLP, in Tampa, Florida. The Official Committee of Unsecured Creditors appointed in Scrub Island's cases has retained Robert B. Glenn, Esq., Edwin G. Rice, Esq., and Victoria D. Critchlow, Esq., at Glenn Rasmussen, P.A., as general counsel. SEAN DUNNE: Wife Sued by Bankruptcy Trustee ------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that the bankruptcy trustee assigned to Sean Dunne's case is suing to recover property the Irish real estate developer transferred to his wife, Gayle Killilea. According to the report, the trustee, Richard M. Coan, said in two lawsuits filed in bankruptcy court on March 27 that Dunne admitted to transferring more than EUR100 million ($108.2 million) to her. Assets the trustee accused Dunne of attempting to hide in his wife's name include the real estate development business he started in the U.S. after he left Ireland in 2010, the report said. About Sean Dunne Irish real estate developer Sean Dunne filed a liquidating Chapter 7 bankruptcy petition (Bankr. D. Conn. Case No. 13-50484) on March 30, 2013, in Bridgeport, Connecticut. Mr. Dunne says he now lives and works in Connecticut. Mr. Dunne said he filed for bankruptcy in the U.S. because Ulster Bank was applying to an Irish court for permission to commence bankruptcy proceedings there. The formal lists of property and debt Dunne filed in May in the U.S. court shows assets with a total claimed value of $55.2 million and liabilities totaling $942.2 million. The assets include $40.8 million of real estate, all in Ireland. Among the $280.2 million in secured creditors and $612.2 million in unsecured creditors, almost all are in Ireland. SIGNATURE APPAREL: Mixed Judgments in Reality TV Star's $15M Row ---------------------------------------------------------------- Law360 reported that a New York bankruptcy judge has granted in part and denied in part competing motions for summary judgment over the disputed unwinding of a $15 million licensing agreement between bankrupt Signature Apparel Group LLC, a "Real Housewives of New Jersey" star and the Rocawear brand. According to the report, Signature went involuntarily bankrupt in September 2009, and the license was terminated soon after, but the parties disagree as to the circumstances surrounding and validity of the termination of the license, in which "Real Housewives" star Chris Laurita had an interest. Three creditors owed a combined $14.8 million filed an involuntary Chapter 7 petition against Signature Apparel Group LLC (Bankr. N.D. Ga. 09-83407). Signature, based in New York, calls itself a "multifaceted apparel company." It owns the Fetish trademark and licenses Rocawear Juniors and Artful Dodger, according to its Web site. SKYMALL LLC: SEC Fights Assets Sale, Citing Investigation --------------------------------------------------------- Law360 reported that the U.S. Securities and Exchange Commission objected in Arizona bankruptcy court to the sale of assets by Chapter 11-bound SkyMall LLC on the grounds that some of the in-flight catalog producer’s assets might be subject to an outstanding subpoena in a nonpublic investigation. According to the report, the SEC said that "certain items to be sold" may fall under an investigative subpoena issued to Xhibit Corp., SkyMall's parent company. About SkyMall LLC Headquartered in Phoenix, Arizona, SkyMall, LLC, is the company behind the ubiquitous in-flight catalogs known for kitschy items that include Bigfoot Garden Yeti statues, night glow toilet seats and cat litter robots. Affiliates SkyMall, LLC, fka SkyMall, Inc. (Bankr. D. Ariz. Case No. 15-00679), Xhibit Corp., fka NB Manufacturing, Inc. (Bankr. D. Ariz. Case No. 15-00680), Xhibit Interactive, LLC, fka Xhibit, LLC (Bankr. D. Ariz. Case No. 15-00682), FlyReply Corp. (Bankr. D. Ariz. Case No. 15-00684), SHC Parent Corp. (Bankr. D. Ariz. Case No. 15-00685), SpyFire Interactive, LLC (Bankr. D. Ariz. Case No. 15-00686), Stacked Digital, LLC (Bankr. D. Ariz. Case No. 15-00687), and SkyMall Interests, LLC (Bankr. D. Ariz. Case No. 15-00688) filed separate Chapter 11 bankruptcy petitions on Jan. 22, 2014. The petitions were signed by Scott Wiley, authorized signatory. Judge Brenda K. Martin presides over SkyMall, LLC's case, while Judge Madeleine C. Wanslee presides over Xhibit Corp.'s and SHC Parent Corp.'s cases. John A. Harris, Esq., at Quarles & Brady LLP serves as the Debtors' bankruptcy counsel. Cohnreznick Capital Market Securities, LLC, is the Debtors' financial advisor. SkyMall, LLC, estimated its assets at between $1 million and $10 million, and its liabilities at between $10 million and $50 million. Xhibit Corp. estimates its assets and liabilities at between $100,000 and $500,000 each. Xhibit Interactive, LLC, estimates its assets and liabilities at up to $50,000 each. SHC Parent Corp. estimates its assets and liabilities at up to $50,000 each. SKYMALL LLC: Website, Other Assets Go for $1.9-Mil. at Auction -------------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that the publisher of the inflight shopping catalog got the green light to sell its SkyMall website and other assets to C&A Marketing Inc. for $1 million in cash, plus a note for the remaining $900,000. FSG Distributors, the other qualified bidder at the March 25 auction, will serve as backup buyer, the Bloomberg report said, citing the sale-approval order. About SkyMall LLC Headquartered in Phoenix, Arizona, SkyMall, LLC, is the company behind the ubiquitous in-flight catalogs known for kitschy items that include Bigfoot Garden Yeti statues, night glow toilet seats and cat litter robots. Affiliates SkyMall, LLC, fka SkyMall, Inc. (Bankr. D. Ariz. Case No. 15-00679), Xhibit Corp., fka NB Manufacturing, Inc. (Bankr. D. Ariz. Case No. 15-00680), Xhibit Interactive, LLC, fka Xhibit, LLC (Bankr. D. Ariz. Case No. 15-00682), FlyReply Corp. (Bankr. D. Ariz. Case No. 15-00684), SHC Parent Corp. (Bankr. D. Ariz. Case No. 15-00685), SpyFire Interactive, LLC (Bankr. D. Ariz. Case No. 15-00686), Stacked Digital, LLC (Bankr. D. Ariz. Case No. 15-00687), and SkyMall Interests, LLC (Bankr. D. Ariz. Case No. 15-00688) filed separate Chapter 11 bankruptcy petitions on Jan. 22, 2014. The petitions were signed by Scott Wiley, authorized signatory. Judge Brenda K. Martin presides over SkyMall, LLC's case, while Judge Madeleine C. Wanslee presides over Xhibit Corp.'s and SHC Parent Corp.'s cases. John A. Harris, Esq., at Quarles & Brady LLP serves as the Debtors' bankruptcy counsel. Cohnreznick Capital Market Securities, LLC, is the Debtors' financial advisor. SkyMall, LLC, estimated its assets at between $1 million and $10 million, and its liabilities at between $10 million and $50 million. Xhibit Corp. estimates its assets and liabilities at between $100,000 and $500,000 each. Xhibit Interactive, LLC, estimates its assets and liabilities at up to $50,000 each. SHC Parent Corp. estimates its assets and liabilities at up to $50,000 each. SOUTHERN FAMILY: Insurance Head Released from Testifying -------------------------------------------------------- Law360 reported that a Florida appeals court quashed a trial court's order compelling testimony from Florida's insurance commissioner, saying the information sought is not necessary to the underlying case regarding insolvent insurers and the testimony would raise separation of powers concerns. According to the report, the ruling arose out of a dispute in which the Florida Department of Financial Services, serving as receiver of Southern Family Insurance Co., Atlantic Preferred Insurance Co. and Florida Preferred Property Insurance Co., claims Deloitte & Touche LLP caused injury to the companies and consumers because it failed to prepare accurate financial statements as required under state law, which delayed their entering receivership by at least several months. The case is Florida Office of Insurance Regulation v. Florida Department of Financial Services et al., case number 1D14-4417, in the First District Court of Appeal of Florida. SPECTRASCIENCE INC: HJ Expresses Going Concern Doubt ---------------------------------------------------- SpectraScience, 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. HJ Associates & Consultants LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has suffered recurring losses from operations and its ability to continue as a going concern is dependent on the Company's ability to attract investors and generate cash through issuance of equity instruments and convertible debt. The Company reported a net loss of $4.49 million on $nil in revenue for the year ended Dec. 31, 2014, compared to a net loss of $2.75 million on $240,000 of revenues in the same period last year. The Company's balance sheet at Dec. 31, 2014, showed $2.21 million in total assets, $6.59 million in total liabilities, and a stockholders' deficit of $4.38 million. A copy of the Form 10-K is available at: http://is.gd/w3LFOQ About SpectraScience SpectraScience, Inc. (OTC QB: SCIE) is a San Diego based medical device company that designs, develops, manufactures and markets spectrophotometry systems capable of determining whether tissue is normal, pre-cancerous or cancerous without physically removing tissue from the body. The WavSTAT(TM) Optical Biopsy System uses light to optically scan tissue and provide the physician with an immediate analysis. On Nov. 6, 2007, the Company acquired the assets of Luma Imaging Corporation in an equity transaction accounted for as an acquisition of assets and now operates LUMA as a wholly-owned subsidiary of the Company. As reported in the TCR on April 25, 2013, McGladrey LLP, in Des Moines, Iowa, in its report on the Company's financial statements for the year ended Dec. 31, 2012, said the Company has suffered recurring losses from operations and its ability to continue as a going concern is dependent on the Company's ability to attract investors and generate cash through issuance of equity instruments and convertible debt. "This raises substantial doubt about the Company's ability to continue as a going concern." On Feb. 3, 2014, SpectraScience dismissed McGladrey as the Company's independent registered accounting firm effective immediately, and engaged HJ Associates & Consultants, LLP, as replacement accounting firm. SPYR INC: Reports $2.19 Million Net Income in 2014 -------------------------------------------------- Spyr, Inc., formerly Eat at Joe's, Ltd., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing net income of $2.19 million on $1.45 million of revenues for the year ended Dec. 31, 2014, compared with a net loss of $1.38 million on $1.31 million of revenues for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $13.3 million in total assets, $343,000 in total liabilities and $12.9 million in total stockholders' equity. A full-text copy of the Form 10-K is available for free at: http://is.gd/FEy9BY About SPYR, INC. SPYR, INC., formerly known as Eat at Joe's, Ltd, is a holding company that through its wholly-owned subsidiary, Franklin Networks, Inc., is engaged in digital publishing and advertising operations and through its other wholly-owned subsidiary, E.A.J.: PHL, Airport Inc., owns and operates an "American Diner" theme restaurant located in the Philadelphia International Airport in Philadelphia, Pennsylvania called "Eat at Joe's." The Company is currently exploring opportunities for additional acquisitions in these and other verticals, including mobile application and game development, in order to expand its holdings, to drive and increase revenue and to generate profits and build value for shareholders. * * * This concludes the Troubled Company Reporter's coverage of Spyr Inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. STEREOTAXIS INC: Extends Silicon Valley Credit Facility by 3 Years ------------------------------------------------------------------ Stereotaxis, Inc., has extended the maturity of its revolving credit facility with Silicon Valley Bank by three years to March 31, 2018. The amended agreement maintains the existing line capacity of $10 million, which was increased from $3 million in 2014. "This three-year credit agreement strengthens our ability to finance growth opportunities and is a significant endorsement of our continued improvement in financial performance," said William C. Mills, Stereotaxis chief executive officer. "We are proud of SVB's long-term commitment to Stereotaxis, which illustrates strong support of our strategic initiatives and growth potential as the leader in robotic solutions for the cardiac electrophysiology market." Ben Johnson, managing director of Silicon Valley Bank, said "We are pleased to continue our partnership with Stereotaxis as they remain focused on growing the business through innovative technologies. Our relationship with the Company has been very positive for both of us, and we look forward to working together as they continue to pursue their clinical and commercial objectives." A full-text copy of the Tenth Loan Modification Agreement (Domestic), dated March 27, 2015, between Silicon Valley Bank, the Company, and Stereotaxis International, Inc., is available for free at http://is.gd/JdJDKL About Stereotaxis Based in St. Louis, Missouri, Stereotaxis, Inc., is a manufacturer and developer of a suite of navigation systems in interventional surgical procedures. The Company's Epoch Solution is used in the treatment of arrhythmias and coronary artery disease. Stereotaxis reported a net loss of $5.20 million in 2014, a net loss of $68.8 million in 2013 and a net loss of $9.23 million in 2012. As of Dec. 31, 2014, Stereotaxis had $23.9 million in total assets, $36.4 million in total liabilities, and a $12.5 million stockholders' deficit. Ernst & Young LLP, in St. Louis, Missouri, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred recurring operating losses and has a net capital deficiency. These conditions raise substantial doubt about the Company's ability to continue as a going concern. SUNSHINE HEART: Ernst & Young Expresses Going Concern Doubt ----------------------------------------------------------- Sunshine Heart, 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. Ernst & Young LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has recurring losses from operations and an accumulated deficit. The Company reported a net loss of $25.6 million on $295,000 in revenue for the year ended Dec. 31, 2014, compared with a net loss of $21.8 million on $59,000 of revenues in the same period last year. The Company's balance sheet at Dec. 31, 2014, showed $32.4 million in total assets, $3.16 million in total liabilities, and stockholders' equity of $29.2 million. A copy of the Form 10-K is available at: http://is.gd/7dRWfQ Eden Prairie, Minnesota-based Sunshine Heart is an early-stage medical device company focused on developing, manufacturing and commercializing its C-Pulse System for treatment of Class III and ambulatory Class IV heart failure. SUNTECH AMERICA: Reaches Ch. 15 Antitrust Deal with Solyndra Trust ------------------------------------------------------------------ Law360 reported that Suntech Power Holdings Co. Ltd.'s foreign liquidators have struck a tentative settlement with the litigation vehicle left behind by defunct Solyndra LLC in a California price-fixing lawsuit alleging Suntech colluded with other Chinese solar panel producers to squeeze out U.S. rivals. Terms of the settlement are still being finalized and will require approval from the Cayman Islands court presiding over Suntech's primary liquidation proceeding, the report said, citing Daniel Shamah of O'Melveny & Myers LLP, an attorney for the defunct solar panel maker's bankruptcy administrators. About Suntech America Suntech America, Inc., and Suntech Arizona, Inc. filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 15-10054 and 15-10056) on Jan. 12, 2015. Judge Christopher S. Sontchi presides over the case. Mark D. Collins, Esq., Paul Noble Heath, Esq., William A. Romanowicz, Esq., Zachary I Shapiro, Esq., at Richards, Layton & Finger, P.A., serve as the Debtors' bankruptcy counsel. Upshot Services LLC is the Debtors' claims and noticing agent. The Debtors estimated their assets at between $100 million and $500 million, and their debts at between $100 million and $500 million. Headquartered in San Francisco, California, Suntech America, aka Suntech Power, an affiliate of Wuxi, China-based Suntech Power Holdings Corp., was the main operating subsidiary of the Suntech Group in the Americas and its primary business purpose was acting as an intermediary for marketing, selling and distributing Suntech Group manufactured products. TELEXFREE LLC: Scheme Took in $1-Bil. from 1.9M Investors --------------------------------------------------------- Law360 reported that the Chapter 11 trustee for TelexFree LLC told a Massachusetts federal bankruptcy court that the accused Ponzi scheme amassed roughly $1.03 billion from nearly 1.9 million investors in a two-year span preceding the internet phone company's bankruptcy. According to the report, in schedules, exhibits and other documents totaling tens of thousands of pages, trustee Stephen Darr -- who is investigating the company's alleged fraud and overseeing its assets -- listed 1,894,940 investors whom TelexFree allegedly promised more than $4 billion in total returns. About TelexFREE TelexFREE -- http://www.TelexFREE.com/-- is a telecommunications business that uses multi-level marketing to assist in the distribution of voice over internet protocol telephone services. TelexFREE's retail VoIP product, 99TelexFREE, allows for unlimited international calling to seventy countries for a flat monthly rate of $49.90. TelexFREE has over 700,000 associates or promoters worldwide. The company believes the sales of the 99TelexFREE product, the TelexFREE "app," and other new products will ultimately prove successful and profitable. The company is struggling, however, with several factors that required it to seek chapter 11 protection. First, the Company experienced exponential growth in revenue between 2012 and 2013 (from de minimus amounts to over $1 billion), which put tremendous pressure on the Company's financial, operational and management systems. Second, although the company revised its original compensation plan to promoters in order to address certain questions that were raised regarding such plan, the company believes that the plans need to be further revised. Finally, the trailing liabilities arising from the original compensation plan are difficult to quantify and have resulted in substantial asserted liabilities against the company, a number of which may not be valid. TelexFREE LLC and two affiliates sought bankruptcy protection (Bankr. D. Nev. Lead Case No. 14-12525) on April 13, 2014. Alvarez & Marsal North America, LLC is serving as restructuring advisor and Greenberg Traurig, LLP and Gordon Silver are serving as legal advisors to TelexFREE. Kurtzman Carson Consultants LLC serves as claims and noticing agent. TelexFREE, LLC, estimated $50 million to $100 million in assets and $100 million to $500 million in liabilities. TelexFREE is facing accusations of operating a $1 billion-plus pyramid scheme. In May, the Court approved the motion by the U.S. Securities & Exchange Commission to transfer the venue of the Debtors' cases to the U.S. Bankruptcy Court, District of Massachusetts (Bankr. D. Mass. Case Nos. 14-40987, 14-40988 and 14-40989). The Court entered an order in relation to the venue transfer stating that the cases remain jointly administered, and KCC will continue to serve as claims processing agent. The Debtors had opposed to the motion, stating that while the SEC contends that the Massachusetts Bankruptcy Court is more convenient for the SEC, the SEC has failed entirely to meet its burden to show that the Massachusetts Bankruptcy Court is better than the Nevada Bankruptcy Court for administration of the Chapter 11 Cases. The Debtors chose the Nevada Bankruptcy Court because, inter alia, TelexFREE Nevada, a Nevada entity, is a counter-party to more than 700,000 contracts governed by Nevada law. A creditors' committee has not yet been appointed in the Chapter 11 Cases. TOWERGATE FINANCE: Wins U.S. Court Protection --------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that Towergate Finance Plc, an independently owned insurance intermediary in the U.K., won Chapter 15 protection in the U.S. after a Manhattan bankruptcy judge concluded that England is home to the "foreign main proceeding." The U.S. court's recognition order gives full effect to the schemes, in the form approved by the Chancery Division of the High Court of Justice of England and Wales, the Bloomberg report said. It prevents noteholders from taking action against Towergate in the U.S. to collect debt affected by the U.K. proceedings, the report related. About Towergate Finance Towergate Finance is an independently-owned insurance intermediary company distributing general insurance products in the United Kingdom through its own brokers and third party brokers, including mortgage brokers and other mortgage intermediaries. Towergate Finance is a subsidiary of privately held Towergate Holdings II Limited and Towergate Partnershipco Limited, which is owned by investment funds managed by the private equity firm Advent International Corporation and individual shareholders. Towergate's corporate headquarters are located in Kent, England, and it has more than 90 offices across the U.K. Towergate does not currently have any operations outside of the U.K. The Towergate group's trading performance since mid-2014, coupled with the significant risk that it may have material liabilities relating to the ongoing UK Financial Conduct Authority investigations into its historic business practices, has resulted in the Towergate Finance and the Group facing financial difficulties particularly in the context of Towergate Finance's debt service obligations. On Feb. 2, 2015, Towergate Finance failed to make an interest payment due under its floating rate senior secured notes due 2018. On Feb. 6, 2015, Towergate proposed with the Chancery Division (Companies Court) of the High Court of Justice of England and Wales schemes of arrangement that would adjust its secured and unsecured debt. The schemes of arrangement are subject to approval by the affected creditors and ultimately by the English Court. To ward off the threat of a lawsuit in the U.S. from a dissenting investor, Towergate Finance filed for Chapter 15 bankruptcy protection (Bankr. S.D.N.Y. Case No. 15-10509) in Manhattan in the United States on March 6, 2015. Scott Egan, as foreign representative, signed the petition. Aaron Javian, Esq., at Linklaters LLP, in New York, serves as counsel in the U.S. case. TRANSGENOMIC INC: Needs More Time to File Form 10-K --------------------------------------------------- Transgenomic, Inc., filed with the Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the fiscal year ended Dec. 31, 2014. The Company said it has determined that it is unable to file the Form 10-K within the prescribed time period because it requires additional time for compilation and review to ensure adequate disclosure of certain information required to be included in the Form 10-K. The Form 10-K will be filed as soon as possible following the prescribed due date. About Transgenomic Transgenomic, Inc. -- http://www.transgenomic.com/-- is a global biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases through its proprietary molecular technologies and world-class clinical and research services. The Company is a global leader in cardiac genetic testing with a family of innovative products, including its C-GAAP test, designed to detect gene mutations which indicate cardiac disorders, or which can lead to serious adverse events. Transgenomic has three complementary business divisions: Transgenomic Clinical Laboratories, which specializes in molecular diagnostics for cardiology, oncology, neurology, and mitochondrial disorders; Transgenomic Pharmacogenomic Services, a contract research laboratory that specializes in supporting all phases of pre-clinical and clinical trials for oncology drugs in development; and Transgenomic Diagnostic Tools, which produces equipment, reagents, and other consumables that empower clinical and research applications in molecular testing and cytogenetics. Transgenomic believes there is significant opportunity for continued growth across all three businesses by leveraging their synergistic capabilities, technologies, and expertise. The Company actively develops and acquires new technology and other intellectual property that strengthens its leadership in personalized medicine. The Company reported a net loss available to common stockholders of $16.7 million in 2013, a net loss available to common stockholders of $8.98 million in 2012 and a net loss available to common stockholders of $10.8 million in 2011. The Company's balance sheet at Sept. 30, 2014, showed $30.8 million in total assets, $20.6 million in total liabilities and $10.2 million in stockholders' equity. TRILOGY DEVELOPMENT: 7th Circ. Denies Lender Coverage for Liens --------------------------------------------------------------- Law360 reported that the Seventh Circuit declined to grant insurance coverage for the emergence of contractor liens that wiped out the lender to a failed $118 million real estate development, deepening a split in the appellate courts on whether and when lenders deserve the blame for project failures. According to the report, a unanimous panel determined that letting loan syndicator BB Syndication Services Inc. look to First American Title Insurance Co. for coverage on $61 million in unpaid loans would improperly shift the business risk of funding a distressed development project away from lenders and onto insurance carriers. The decision denied BB Syndication coverage against losses it suffered as a result of mechanic's liens that sprung up once it cut off funding to an unfinished commercial development in Kansas City, Missouri, Law360 said. The project developer's bankruptcy virtually wiped out BB's debt claim, which stood behind $17 million in priority mechanic’s liens in the payment line, the report added. The case is BB Syndication Services v. First American Title Insurance Co., case number 13-2785, in the U.S. Court of Appeals for the Seventh Circuit. About Trilogy Kansas City, Mo.-based Trilogy Development Company, LLC, was founded by advertising magnate Bob Bernstein to build a mixed-use development at 48th St. and Belleview Ave. The Company sought Chapter 11 protection (Bankr. W.D. Mo. Case No. 09-42219) on May 15, 2009. Jonathan A. Margolies, Esq., and R. Pete Smith, Esq., at McDowell, Rice, Smith & Buchanan represent the Debtor. In its petition, the Debtor estimated its assets and at $100 million to $500 million. TRUMP ENTERTAINMENT: $10-Mil. FinCEN Deal Moves Forward ------------------------------------------------------- Law360 reported that a Delaware bankruptcy court has greenlit Trump Taj Mahal Casino Resort's $10 million fine and settlement deal with the U.S. Financial Crimes Enforcement Network over violations of the Bank Secrecy Act to move forward in the Chapter 11 process, the agency announced. According to the report, while the monetary penalty will likely be shaved down by the court as it is being treated as a general unsecured claim, the March 4 approval sets off a three-year timetable for external reviews for the casino. About Trump Entertainment Resorts Trump Entertainment Resorts Inc., owner of the Atlantic City Boardwalk casinos that bear the name of Donald Trump, returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 14-12103) on Sept. 9, 2014, with plans to shutter its casinos. TER and its affiliated debtors own and operate two casino hotels located in Atlantic City, New Jersey. TER said it will close the Trump Taj Mahal Casino Resort by Sept. 16, 2014, and, absent union concessions, the Trump Plaza Hotel and Casino by Nov. 13, 2104. The Debtors have sought an order authorizing the joint administration of their Chapter 11 cases and the consolidation thereof for procedural purposes only. Judge Kevin Gross presides over the Chapter 11 cases. The Debtors have tapped Young, Conaway, Stargatt & Taylor, LLP, as counsel; Stroock & Stroock & Lavan LLP, as co-counsel; Houlihan Lokey Capital, Inc., as financial advisor; and Prime Clerk LLC, as noticing and claims agent. TER estimated $100 million to $500 million in assets as of the bankruptcy filing. The Debtors as of Sept. 9, 2014, owe $285.6 million in principal plus accrued but unpaid interest of $6.6 million under a first lien debt issued under their 2010 bankruptcy-exit plan. The Debtors also have trade debt in the amount of $13.5 million. TRUMP ENTERTAINMENT: Donald Trump Thinks Resorts Too Slow on Lease ------------------------------------------------------------------ Law360 reported that Donald J. Trump, who says bankrupt Trump Entertainment Resorts Inc. owes him thousands of dollars in rent and taxes he paid for the driveway to the now-closed Trump Plaza, said he wants the debtor to stop delaying the decision on what to do with the lease. About Trump Entertainment Resorts Trump Entertainment Resorts Inc., owner of the Atlantic City Boardwalk casinos that bear the name of Donald Trump, returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 14-12103) on Sept. 9, 2014, with plans to shutter its casinos. TER and its affiliated debtors own and operate two casino hotels located in Atlantic City, New Jersey. TER said it will close the Trump Taj Mahal Casino Resort by Sept. 16, 2014, and, absent union concessions, the Trump Plaza Hotel and Casino by Nov. 13, 2104. The Debtors have sought an order authorizing the joint administration of their Chapter 11 cases and the consolidation thereof for procedural purposes only. Judge Kevin Gross presides over the Chapter 11 cases. The Debtors have tapped Young, Conaway, Stargatt & Taylor, LLP, as counsel; Stroock & Stroock & Lavan LLP, as co-counsel; Houlihan Lokey Capital, Inc., as financial advisor; and Prime Clerk LLC, as noticing and claims agent. TER estimated $100 million to $500 million in assets as of the bankruptcy filing. The Debtors as of Sept. 9, 2014, owe $285.6 million in principal plus accrued but unpaid interest of $6.6 million under a first lien debt issued under their 2010 bankruptcy-exit plan. The Debtors also have trade debt in the amount of $13.5 million. US FT HOLDCO: S&P Puts 'B' CCR on CreditWatch Positive ------------------------------------------------------ Standard & Poor's Ratings Services placed its ratings on Jersey City, N.J.-based US FT Holdco Inc. (Fundtech), including its 'B' corporate credit rating, on CreditWatch with positive implications. S&P expects that the company will refinance the $200 million term loan due 2017 as part of the acquisition. S&P will withdraw the ratings after the transaction closes. The CreditWatch placement follows Fundtech's announcement that D+H Corp. has agreed to acquire the company from private equity firm GTCR. "We believe the transaction could result in Fundtech's leverage decreasing and scale improving, which would likely result in an upgrade," said Standard & Poor's credit analyst Sylvester Malapas. VALLEY BEEF: Can't Use Trademarks, Argues St. Louis Chain --------------------------------------------------------- Law360 reported that a franchisee has refused to stop using trademarks owned by private equity-backed St. Louis-based restaurant chain Lion's Choice after going more than $4 million into debt, according to a complaint filed by LC Franchisor LLC in Missouri federal court. Lion’s Choice, which is known for its roast beef sandwiches, claimed that Valley Beef LLC currently owns five of the chain restaurant's locations and intends to continue its operations until as late as 2028, despite the fact that its franchise agreement was terminated. The case is LC Corporate, LLC et al v. Valley Beef, LLC, Case No. 4:15-cv-00383 (E.D. Mo.). Valley Beef LLC filed on Dec. 29, 2011, for Chapter 11 protection in St. Louis, Missouri, listing between $500,000 and $1 million in debts and under $50,000 in assets. The Company's largest unsecured creditors are US Foods, which is owed $117,850, and Pulaski Bank, which has claims totaling $195,205. Valley Beef is a franchisee of Lion's Choice, which was founded in 1967 as Brittany Beef and has 15 company-owned restaurants in the St. Louis area. WBPB CORP: Case Summary & 18 Largest Unsecured Creditors -------------------------------------------------------- Debtor: WBPB Corp. dba Walldorf Brewpub & Bistro 105 E. State Street Hastings, MI 49058 Case No.: 15-01944 Chapter 11 Petition Date: March 31, 2015 Court: United States Bankruptcy Court Western District of Michigan (Grand Rapids) Judge: Hon. Scott W. Dales Debtor's Counsel: Cody H. Knight, Esq. RAYMAN & KNIGHT 141 East Michigan Ave, Ste 301 Kalamazoo, MI 49007 Tel: (269) 345-5156 Email: courtmail@raymanstone.com Total Assets: $253,644 Total Liabilities: $2.27 million The petition was signed by Michael L. Barnaart, president. A list of the Debtor's 18 largest unsecured creditors is available for free at http://bankrupt.com/misc/miwb15-01944.pdf WCI COMMUNITIES: Insurer Says Firm Not Covered in Contempt Suit --------------------------------------------------------------- Law360 reported that Landmark American Insurance Co. lobbed a suit against a law firm in Florida federal court saying it shouldn't have to defend it in a civil contempt suit lodged by a real estate developer because the case predates the firm's insurance policy. According to the report, in the suit, reorganized developer WCI Communities Inc. in January brought a civil contempt claim against Siegfried Rivera Hyman Lerner De La Torre Mars & Sobel PA in Delaware bankruptcy court for filing a construction defect lawsuit it says violates its Chapter 11 plan. WCI claims the law firm knowingly filed and pursued the state court action even though WCI's confirmed bankruptcy plan removed such liabilities, the report said, citing the adversary complaint. The case is Landmark American Insurance Company v. Siegfried Rivera Hyman Lerner De La Torre Mars & Sobel PA et al., case number 2:15-cv-00164, in the U.S. District Court for the Middle District of Florida. About WCI Communities Headquartered in Bonita Springs, Florida, WCI Communities, Inc. (Pink Sheets: WCIMQ) -- http://www.wcicommunities.com/-- is a fully integrated homebuilding and real estate services company with more than 50 years' experience in the design, construction and operation of leisure-oriented, amenity rich master-planned communities. It has operations in Florida, New York, New Jersey, Connecticut, Virginia and Maryland. The Company and 126 of its affiliates filed for Chapter 11 protection on Aug. 4, 2008 (Bankr. D. Del. Lead Case No. 08-11643 through 08-11770). On July 1, 2009, debtor-affiliates WCI 2009 Corporation, WCI 2009 Management, LLC and WCI 2009 Asset Holding, LLC filed separate Chapter 11 petitions (Case Nos. from 09-12269 to 09-12271). Thomas E. Lauria, Esq., Frank L. Eaton, Esq., and Linda M. Leali, Esq., at White & Case LLP, in Miami, Florida, represented the Debtors as counsel. Eric Michael Sutty, Esq., and Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, represented the Debtors as Delaware counsel. Lazard Freres & Co. LLC acted as the Debtors' financial advisor. Epiq Bankruptcy Solutions LLC served as the claims and notice agent for the Debtors. The U.S. Trustee for Region 3 appointed five creditors to serve on an official committee of unsecured creditors. Daniel H. Golden, Esq., Lisa Beckerman, Esq., and Philip C. Dublin, Esq., at Akin Gump Strauss Hauer & Feld LLP; and Laura Davis Jones, Esq., Michael R. Seidl, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, represented the committee. WCI disclosed total assets of $2,178,179,000 and total debts of $1,915,034,000 when it filed for Chapter 11. The Bankruptcy Court on Aug. 26, 2009, confirmed the Second Amended Joint Chapter 11 Plan of Reorganization for WCI Communities, Inc. and its affiliates. The Plan became effective Sept. 3, 2009. WHITTEN FOUNDATION: Case Summary & 20 Top Unsecured Creditors ------------------------------------------------------------- Debtor: Whitten Foundation PO Box 16506 Mobile, AL 36616-0506 Case No.: 15-20237 Type of Business: A Louisiana non-profit corporation that owns and operates the Courtyard Orleans Condominium consisting of 88 separately designated condominium and apartment units located in the Parish of East Baton Rouge, State of Louisiana. Chapter 11 Petition Date: March 31, 2015 Court: United States Bankruptcy Court Western District of Louisiana (Lake Charles) Judge: Hon. Robert Summerhays Debtor's Counsel: Gerald J. Casey, Esq. GERALD J. CASEY 613 Alamo Street Lake Charles, LA 70601 Tel: (337) 474-5005 Email: ECF@caseylaw.net gcasey@caseylaw.net Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Patrick J. Coffey, president. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ AJT Construction, LLC open account- $50,000 3619 Texas Street for Embers Lake Charles, LA 70607 Albarado's Painting & Steam open account- $10,295 King Embers 222 Rue Septembre Scott, LA 70583 Blue Skies Landscape, LLC open account- $8,552 PO Box 40848 Embers Baton Rouge, LA 70835 BoCamp, LLC open account- $82,000 Bo Bohnet Whitten c/o Wegman Dazet Foundation 180 N. Camellia #106 Covington, LA 70433 East Baton Rouge Sheriff & Property taxes- $44,061 and Tax Collector Courtyard 1270 Rosenwald Rd. Baton Rouge, LA 70807 Lamond G. Whitten Promissory Note $1,269,796 59003 Pine Bay Lane Lacombe, LA 70445 Lamond G. Whitten Promissory Note $336,000 59003 Pine Bay Lane Lacombe, LA 70445 Liberty Surplus Insurance Corp open account- $15,000 55 Water Street Embers 23rd Floor New York, NY 10041 Louisiana Rental Investors, LLC bond issued by La. $1,950,000 c/o Lamond G. Whitten Public Facilities 59003 Pine Bay Lane Authority on Lacombe, LA 70445 8/28/2002 Louisiana Rental Investors, LLC bond issued by La $800,000 c/o Lamond G. Whitten Public Facilities 59003 Pine Bay Lane on 8/28/2002 Lacombe, LA 70445 McCollister, McCleary & Fazio open account - $8,664 PO Box 40686 courtyard Baton Rouge, LA 70835 Multifamily Management, Inc. open account - $418,236 PO Box 15605 Embers Mobile, AL 36616 Multifamily Management, Inc. open account - $71,821 PO Box 15605 courtyard Mobile, AL 36616 Rasa Floors & Carpet open account $46,990 Cleaning Embers PO Box 619130 Dallas, TX 75261 Rotolo Consultants, Inc. open account - $6,291 864 Roberts Road Embers Slidell, LA 70458 Stephen Construction & open account - $7,840 Painting Courtyard 521 Meadow Bend Drive Baton Rouge, LA 70820 Suddenlink Communications open account - $28,363 PO Box 660365 Embers Dallas, TX 75266 Unit Inc. open account - $39,000 PO Box 160646 Embers Mobile, AL 36616 Unit Inc. open account - $35,350 PO Box 160646 Courtyard Mobile, AL 36616 Whitney National Bank LOC Loan $54,605 Recovery Dept. PO Box 4019 Gulfport, MS 39502-4019 WHITTEN FOUNDATION: Louisiana Apartments Owner in Chapter 11 ------------------------------------------------------------ Whitten Foundation, owner of two apartment complexes located in the State of Louisiana, sought Chapter 11 bankruptcy protection (Bankr. W.D. La. Case No. 15-20237) in Lake Charles, Louisiana, on March 31, 2015. Whitten owns and operates Courtyard Orleans Condominium consisting of 88 designated condominium and apartment units located in Baton Rouge, East Baton Rouge Parish. The Debtor also owns and operates The Embers Apartment Homes, which has 208 separate apartment units, located at Calcasieu Parish, in Lake Charles. The Debtor estimated $10 million to $50 million in assets and debt. As of Feb. 28, 2015, there's an outstanding balance of $4.35 million on a loan from Iberiabank used for the refinance and refurbishment of Courtyard. In addition, there's an outstanding balance of $5.72 million on a loan provided by Iberiabank for the refinance and refurbishment of Embers. According to the docket, the official schedules of assets and liabilities, as well as the statement of financial affairs are due April 14, 2015. The Debtor's Chapter 11 plan and disclosure statement are due July 29, 2015. Judge Robert Summerhays presides over the case. The Debtor has tapped Gerald J. Casey, Esq., in Lake Charles, Louisiana, as counsel. The Debtor on the Petition Date filed a motion to use cash collateral. A hearing on the motion is scheduled for April 14. WHITTEN FOUNDATION: Proposes Gerald Casey as Counsel ---------------------------------------------------- Whitten Foundation seeks approval from the U.S. Bankruptcy Court for the Western District of Louisiana to employ Gerald J. Casey as counsel under a general retainer to give the Debtor legal advice with respect to the Debtor's powers and duties as debtor in possession and to perform all legal services for the Debtor which may be necessary. Mr. Casey -- gcasey@caseylaw.net -- will charge $325 per hour for his services. Prior to the bankruptcy filing, the firm received $20,000 from the Debtor. The Debtor says it is necessary to employ Mr. Casey immediately, and without the 20-day delay mandated by Bankruptcy Rule 6003, as the Debtor's schedules and statement of financial affairs will need to be prepared in accordance with the bankruptcy rules To the best of Debtor's knowledge, Mr. Casey has no connection with the debtor, its creditors, or any other party in interest or their attorneys. About Whitten Foundation Whitten Foundation owns and operates two apartment complexes located in the State of Louisiana: the 88-unit Courtyard Orleans Condominium in Baton Rouge, East Baton Rouge Parish, and the 208-unit The Embers Apartment Homes at Calcasieu Parish, in Lake Charles. Whitten Foundation sought Chapter 11 bankruptcy protection (Bankr. W.D. La. Case No. 15-20237) in Lake Charles, Louisiana, on March 31, 2015. The Debtor estimated $10 million to $50 million in assets and debt. As of Feb. 28, 2015, there's an outstanding balance of $4.35 million on a loan from Iberiabank used for the refinance and refurbishment of Courtyard. In addition, there's an outstanding balance of $5.72 million on a loan provided by Iberiabank for the refinance and refurbishment of Embers. According to the docket, the official schedules of assets and liabilities, as well as the statement of financial affairs are due April 14, 2015. The Debtor's Chapter 11 plan and disclosure statement are due July 29, 2015. Judge Robert Summerhays presides over the case. The Debtor has tapped Gerald J. Casey, Esq., in Lake Charles, Louisiana, as counsel. WHITTEN FOUNDATION: Proposes to Use Cash Collateral --------------------------------------------------- Whitten Foundation asks the Bankruptcy Court to enter interim and final orders authorizing its use of cash, proceeds from rents collected, and accounts receivable which may be "cash collateral". The Debtor owns and operates the 88-unit Courtyard Orleans Condominium in the Parish of East Baton Rouge, Louisiana. As of Feb. 28, 2015 there's an outstanding balance of $4.35 million on a loan provided by Iberiabank ("IBERIA") for the refinance and refurbishment of Courtyard. The loan is secured by real property located in East Baton Rouge Parish as well as Courtyard's cash, accounts receivable, and rents. The Debtor owns and operates 1 separate apartment unit within the Courtyard complex formerly owned by Louisiana Rental Investors, LLC (La Rental). As of Feb. 28, 2015 the outstanding balance is $87,220 on a loan provided by IBERIA and secured by La Rental's cash and accounts receivable. The Debtor owns and operates 208-unit The Embers Apartment Homes located at Calcasieu Parish, Lake Charles. There's an outstanding balance of $5.72 million on a loan provided by IBERIA for the refinance and refurbishment of Embers. The loan is secured by real property located in Calcasieu Parish as well as Ember's cash, accounts receivable, and rents. The Debtor needs to use the proceeds of all accounts receivable and rents, as well as its cash on hand and in bank accounts in the ordinary course of the Debtor's business to pay the expenses incurred in the operation of the Debtor's business during the course of this Chapter 11 proceeding. IBERIA contends that the proceeds of all rents, accounts receivable, and the cash on hand and in bank accounts are collateral for the Loan, and that IBERIA would be entitled to adequate protection for any use of the rents, accounts receivable, and the cash on hand and in bank accounts. To the extent that the proceeds of all rents, accounts receivable and the cash on hand and in bank accounts constitute cash collateral and IBERIA'S lien thereon is not subject to avoidance or subordination, the Debtor proposes to grant IBERIA a replacement lien on the Debtor's postpetition rents, accounts and cash on hand as adequate protection for the Debtor's use of the proceeds of all rents, accounts receivable and the cash on hand and in bank accounts to the extent that same constitute cash collateral, and only to the extent of the actual diminution of the value of IBERIA'S valid, enforceable security interests in the Debtor's assets. About Whitten Foundation Whitten Foundation owns and operates two apartment complexes located in the State of Louisiana. Whitten Foundation sought Chapter 11 bankruptcy protection (Bankr. W.D. La. Case No. 15-20237) in Lake Charles, Louisiana, on March 31, 2015. The Debtor estimated $10 million to $50 million in assets and debt. According to the docket, the official schedules of assets and liabilities, as well as the statement of financial affairs are due April 14, 2015. The Debtor's Chapter 11 plan and disclosure statement are due July 29, 2015. Judge Robert Summerhays presides over the case. The Debtor has tapped Gerald J. Casey, Esq., in Lake Charles, Louisiana, as counsel. WINDSOR PETROLEUM: Court Enters Final Decree Closing Cases ---------------------------------------------------------- Windsor Petroleum Transport Corporation and its affiliated reorganized debtors asked the U.S. Bankruptcy Court for the District of Delaware to enter a final decree closing their Chapter 11 cases. In his order granting approval of the Debtors' motion on March 26, 2015, Judge Laurie Selber Silverstein ruled that: -- The cases are closed effective March 26, 2015; -- The Reorganized Debtors will pay any and all fees which are due and payable pursuant to 28 U.S.C. Sec. 1930. -- Prime Clerk's services with respect to the Chapter 11 cases are terminated. The Court on Nov. 20, 2014, entered an order confirming the Debtors' Amended Plan of Reorganization. The Amended Plan went effective on Jan. 30, 2015. In seeking the final decree, Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor, LLP, explained that in accordance with the terms of the Plan, the Reorganized Debtors have made, or are in the processing of making, distributions on account of all Allowed Claims in Classes 1 through 6, including distributions of Common Units to Holders of Class 3 Claims, and do not believe that there are any remaining Disputed Claims that must be addressed in connection with the Chapter 11 Cases. The Reorganized Debtors believe that all motions, contested matters, and other proceedings that were before the Court with respect to the Chapter 11 Cases have been resolved, or, to the extent they arise, will be resolved prior to March 26. About Windsor Petroleum Windsor Petroleum Transport Corporation and several of its subsidiaries and related entities on July 14, 2014, filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in Wilmington, Delaware (Lead Case No. 14-11708). The Debtors' counsel is Pauline K. Morgan, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. The Debtors' crisis managers come from AMA Capital, while their chief restructuring officer is Paul J. Leand, Jr. Judge Peter Walsh on Dec. 23, 2014, issued amended findings of fact, conclusions of law, and order confirming the amended plan of reorganization of the Debtors. The Amended Plan of Reorganization is premised on a restructuring support agreement negotiated with bondholders who hold more than 70% of the Company's 7.84% secured notes in a principal amount of $188,590,000 as of the Petition Date. The U.S. Trustee notified the Bankruptcy Court that it was unable to appoint an official committee of unsecured creditors. ZION OIL: MaloneBailey LLP Raises Going Concern Doubt ----------------------------------------------------- Zion Oil & Gas Inc. filed with the U.S. Securities and Exchange Commission on March 10, 2015, its annual report on Form 10-K for the year ended Dec. 31, 2014. MaloneBailey LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company suffered recurring losses from operations and has an accumulated deficit. The Company reported a net loss of $6.76 million for the year ended Dec. 31, 2014, compared to a net loss of $9.08 million in 2013. The Company's balance sheet at Dec. 31, 2014, showed $11.9 million in total assets, $1.36 million in total liabilities and total stockholders' equity of $10.52 million. A copy of the Form 10-K is available at: http://is.gd/neVCjj Zion Oil & Gas, Inc. operates as a development stage oil and gas exploration company in Israel. It holds three petroleum exploration licenses, including the Asher-Menashe license covering an area of approximately 78,834 acres, the Megiddo-Jezreel license covering an area of approximately 98,842 acres, and the Jordan Valley license covering an area of approximately 55,845 acres located on onshore northern Israel. The company was founded in 2000 and is based in Dallas, Texas. [*] Arch Riley Joins Bernstein-Burkley's West Va. Office as Partner ------------------------------------------------------------------- Arch W. Riley, Jr., an accomplished attorney with more than 30 years of experience in commercial bankruptcy law, on March 31 disclosed that it has joined Bernstein-Burkley, P.C. as a partner in West Virginia, where the firm is expanding its creditors' rights and bankruptcy and restructuring practice groups. Mr. Riley becomes the fifth Bernstein-Burkley, P.C. lawyer licensed to practice in West Virginia. Mr. Riley has extensive experience in representing debtors and secured creditors in bankruptcy, as well as focusing on financial reconstructing and workouts, asset acquisitions, real estate and other related transactional areas of law. "Arch is a significant addition to our West Virginia office," said Kirk Burkley, co-managing partner of Bernstein-Burkley, P.C. "In order to better address the needs of our clients, we are continuing to expand our services into West Virginia. Welcoming a seasoned attorney like Arch is an important step." Mr. Riley said that he was drawn to Bernstein-Burkley, P.C. by the established reputation of the firm's bankruptcy and creditors' rights practice areas, and the firm's history for aggressively pursuing the interests of its clients. "Joining Bernstein-Burkley allows me to better serve my clients on a more personalized level than I would have previously been able to do at my previous firm," Mr. Riley said. "Bernstein-Burkley has a talented team of attorneys, and I am honored to join the firm." Mr. Riley comes to Bernstein-Burkley, P.C. from Spilman Thomas & Battle, PLLC, where he was a co-chair of their bankruptcy and creditors' rights practice group. He is a 1982 graduate of the West Virginia University College of Law. He is listed in The Best Lawyers in America in the area of Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law, and was recognized by Super Lawyers West Virginia. Bernstein-Burkley, P.C. is a highly regarded and respected Pittsburgh-based law firm with a national reach in Bankruptcy and Restructuring, Creditors' Rights, Business and Corporate Transactions, Real Estate, and Oil and Gas. The firm has cultivated a reputation for excellence over 45 years in the Pittsburgh business community. Bernstein-Burkley, P.C.'s core purpose is to create partnerships that provide clients with a peace of mind through expert advice and zealous representation. [*] Energy, Resources Will See Most Turnaround Activity in 2015 --------------------------------------------------------------- Aleksandra Rozens, writing for Bloomberg News, reported that the sharp and protracted decline in oil prices likely will keep restructuring professionals busy this year with troubled energy and resources businesses, according to an AlixPartners' survey of 165 restructuring professionals. "Several energy companies are in the pipeline to be restructured, and the continued decline in energy prices was a major business story during the period the survey was conducted, making the price decline a top-of-mind issue for respondents," AlixPartners, a turnaround firm based in Boston that provides advisory services for companies worldwide, said in a on the survey, the report related. [*] Junk Cities Across U.S. Earn Ratings Revival ------------------------------------------------ Brian Chappatta, writing for Bloomberg News, reported that the $3.5 trillion municipal market's fallen angels are rising again as Moody's Investors Service upgrades outpaced downgrades last quarter for the first time since 2008. According to the report, in the past months, Moody's raised Harrison, New Jersey, which had struggled with debt tied to the home of Major League Soccer's Red Bulls, to Baa3, one step above junk; and elevated Menasha, Wisconsin, and Vadnais Heights, Minnesota, to Baa2, one level higher. The upgrades are rebuilding trust between investors and the localities, which got burned by backstopping debt for commercial or sports-related development projects, the Bloomberg report said. [*] New Bankruptcy Filings Fell Sharply in 2014 ----------------------------------------------- Law360 reported that U.S. bankruptcy cases have fallen sharply over the past 10 years, a trend that's highlighted by a 20 percent drop in filings by businesses last year and that runs counter to the recent overall spike in civil litigation, court officials said. According to Law360, the statistics, released by the Administrative Office of the U.S. Courts, show a downward trend in bankruptcy filings over the past decade, but the office declined to blame the dip on a particular factor. Kurt Kester, writing for Bloomberg News, reported that consumer businesses accounted for 45 percent of the new Chapter 11 cases filed in the first quarter that involve $100 million or more in debt. New large debtors in the consumer business sector included Caesars Entertainment Operating Co., Altegrity Inc., RadioShack Corp., Standard Register Co., The Wet Seal Inc., and Karmaloop Inc., the Bloomberg report said. The second largest source of Chapter 11 bankruptcies involving debt of $100 million or more was the energy industry, which has been under pressure from a sharp drop in the crude oil and natural gas prices, making it tougher for these businesses to service debt, the Bloomberg report added. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re Private Gallery, Inc. Bankr. S.D. Ala. Case No. 15-00928 Chapter 11 Petition filed March 24, 2015 See http://bankrupt.com/misc/alsb15-00928.pdf represented by: Robert M. Galloway, Esq. GALLOWAY WETTERMARK EVEREST & RUTENS, LLP E-mail: bgalloway@gallowayllp.com In re Ridgill Johnson Properties, Inc. Bankr. C.D. Cal. Case No. 15-14501 Chapter 11 Petition filed March 24, 2015 See http://bankrupt.com/misc/cacb15-14501.pdf represented by: Carolyn A. Dye, Esq. LAW OFFICE OF CAROLYN A. DYE E-mail: trustee@cadye.com In re The Dolores R. Summers Revocable Trust Bankr. N.D. Cal. Case No. 15-40928 Chapter 11 Petition filed March 24, 2015 Filed Pro Se In re Fantasy, LLC Bankr. D. Colo. Case No. 15-12881 Chapter 11 Petition filed March 24, 2015 See http://bankrupt.com/misc/cob15-12881.pdf represented by: Jeffrey Weinman, Esq. WEINMAN & ASSOCIATES, P.C. E-mail: jweinman@epitrustee.com In re My Freedom, Inc. Bankr. M.D. Fla. Case No. 15-01177 Chapter 11 Petition filed March 24, 2015 See http://bankrupt.com/misc/flmb15-01177.pdf Filed Pro Se In re Sherman W. Wallace, Jr. and Michelle S. Wallace Bankr. D. Md. Case No. 15-14055 Chapter 11 Petition filed March 24, 2015 In re Gregorio Martinez Rodriguez Bankr. D. Or. Case No. 15-60956 Chapter 11 Petition filed March 24, 2015 In re Bowe Holding Company Bankr. E.D. Pa. Case No. 15-11991 Chapter 11 Petition filed March 24, 2015 See http://bankrupt.com/misc/paeb15-11991.pdf represented by: David A. Scholl, Esq. LAW OFFICE OF DAVID A. SCHOLL E-mail: judgescholl@gmail.com In re Kathleen V. Mullen Bankr. E.D. Pa. Case No. 15-11995 Chapter 11 Petition filed March 24, 2015 In re Samuel Robert Morton, Jr. and Sharon K. Morton Bankr. E.D. Tenn. Case No. 15-30892 Chapter 11 Petition filed March 24, 2015 In re William R. Baker, Jr. Bankr. E.D. Tenn. Case No. 15-30903 Chapter 11 Petition filed March 24, 2015 In re James E. Dunivan, Jr. Bankr. E.D. Va. Case No. 15-31531 Chapter 11 Petition filed March 24, 2015 In re 101 Distribution LLC Bankr. D. Ariz. Case No. 15-03300 Chapter 11 Petition filed March 25, 2015 Filed Pro Se In re Lyle B. Dickman Bankr. M.D. Fla. Case No. 15-02954 Chapter 11 Petition filed March 25, 2015 In re New Foam Design, Inc. Bankr. S.D. Fla. Case No. 15-15386 Chapter 11 Petition filed March 25, 2015 See http://bankrupt.com/misc/flsb15-15386.pdf represented by: Chad T. Van Horn, Esq. VAN HORN LAW GROUP, P.A. E-mail: Chad@cvhlawgroup.com In re Florida Steel, LLC Bankr. S.D. Fla. Case No. 15-15391 Chapter 11 Petition filed March 25, 2015 See http://bankrupt.com/misc/flsb15-15391.pdf represented by: Susan D. Lasky, Esq. SUSAN D. LASKY, P.A. E-mail: ECF@suelasky.com In re The Bland Family Trust Bankr. D. Md. Case No. 15-14079 Chapter 11 Petition filed March 25, 2015 See http://bankrupt.com/misc/mdb15-14079.pdf Filed Pro Se In re Mark F. Connolly and Simei L. Connolly Bankr. D. Nev. Case No. 15-11590 Chapter 11 Petition filed March 25, 2015 In re Salvatore DiPaolo Bankr. S.D.N.Y. Case No. 15-22384 Chapter 11 Petition filed March 25, 2015 In re Unique Educational Experience, Inc. Bankr. E.D. Pa. Case No. 15-12012 Chapter 11 Petition filed March 25, 2015 See http://bankrupt.com/misc/paeb15-12012.pdf represented by: Allen B. Dubroff, Esq. ALLEN B. DUBROFF, ESQ. & ASSOCIATES, LLC E-mail: allen@dubrofflawllc.com In re Sean Corbitt and Kelley Ann Corbitt Bankr. M.D. Tenn. Case No. 15-01954 Chapter 11 Petition filed March 25, 2015 In re Affordable Home Builders and Properties, Inc. Bankr. W.D. Tenn. Case No. 15-22760 Chapter 11 Petition filed March 25, 2015 See http://bankrupt.com/misc/tnwb15-22760.pdf represented by: Russell W. Savory, Esq. GOTTEN, WILSON, SAVORY & BEARD, PLLC E-mail: russell.savory@gwsblaw.com In re Murat Yanik Bankr. C.D. Cal. Case No. 15-11011 Chapter 11 Petition filed March 26, 2015 In re NGL Enterprises, Inc. Bankr. C.D. Cal. Case No. 15-11517 Chapter 11 Petition filed March 26, 2015 See http://bankrupt.com/misc/cacb15-11517.pdf represented by: M. Jonathan Hayes, Esq. SIMON RESNIK HAYES, LLP E-mail: jhayes@srhlawfirm.com In re North Port Tire, Inc. Bankr. M.D. Fla. Case No. 15-03013 Chapter 11 Petition filed March 26, 2015 See http://bankrupt.com/misc/flmb15-03013.pdf represented by: Joseph W. Lehn, Esq. LEHN LAW, P.A. E-mail: joe@lehnlaw.com In re Kaspar Murphy Company LLC Bankr. N.D. Ill. Case No. 15-80805 Chapter 11 Petition filed March 26, 2015 See http://bankrupt.com/misc/ilnb15-80805.pdf represented by: Michael J. Davis, Esq. DAVIS GREENE LAW LLC E-mail: mdavis@davisgreenelaw.com In re Bertelli Realty Group, Inc. Bankr. D. Mass. Case No. 15-30254 Chapter 11 Petition filed March 26, 2015 See http://bankrupt.com/misc/mab15-30254.pdf represented by: Andrea M. O'Connor, Esq. HENDEL & COLLINS, P.C. E-mail: aoconnor@hendelcollins.com In re Charles A. Gillerson Bankr. D. Nev. Case No. 15-11649 Chapter 11 Petition filed March 26, 2015 In re Robert R. Bailey, Inc., A New Mexico Corporation Bankr. D.N.M. Case No. 15-10745 Chapter 11 Petition filed March 26, 2015 See http://bankrupt.com/misc/nmb15-10745.pdf represented by: Gerald R. Velarde, Esq. LAW OFFICE GERALD R. VELARDE, P.C. E-mail: velardepc@hotmail.com In re Barton Nachamie Bankr. E.D.N.Y. Case No. 15-71262 Chapter 11 Petition filed March 26, 2015 In re Nathaniel William Hake and Amy Lynn Hake Bankr. S.D. Ohio Case No. 15-30933 Chapter 11 Petition filed March 26, 2015 In re Medero Performance Center, Inc. Bankr. D.P.R. Case No. 15-02184 Chapter 11 Petition filed March 26, 2015 See http://bankrupt.com/misc/prb15-02184.pdf represented by: Carlos A. Ruiz Rodriguez, Esq. E-mail: caruiz@reclamatusderechos.com In re Milton R. Cutler Bankr. S.D. Tex. Case No. 5-31634 Chapter 11 Petition filed March 26, 2015 In re Irene Del Carmen Pizarro Bankr. W.D. Tex. Case No. 15-50731 Chapter 11 Petition filed March 26, 2015 In re YMY Express Corporation Bankr. W.D. Tex. Case No. 15-50732 Chapter 11 Petition filed March 26, 2015 See http://bankrupt.com/misc/txwb15-50732.pdf represented by: Jesse Blanco, Jr. E-mail: jesseblanco@sbcglobal.net In re Elite Nursing, PLLC Bankr. E.D. Wash. Case No. 15-01106 Chapter 11 Petition filed March 26, 2015 See http://bankrupt.com/misc/waev15-01106.pdf represented by: Joshua J. Busey, Esq. BAILEY & BUSEY PLLC E-mail: joshua.busey.attorney@gmail.com In re East Bremerton Automotive and Retail Commercial Improvement Project, LLC Bankr. W.D. Wash. Case No. 15-11845 Chapter 11 Petition filed March 26, 2015 See http://bankrupt.com/misc/wawb15-11845.pdf represented by: Robert A. Garrison, Esq. GSJONES LAW GROUP, P.S. E-mail: bob@gsjoneslaw.com In re Supermercado Phoenix Farms, LLC Bankr. D. Ariz. Case No. 15-03463 Chapter 11 Petition filed March 27, 2015 See http://bankrupt.com/misc/azb15-03463.pdf represented by: Harold E. Campbell, Esq. CAMPBELL & COOMBS, P.C. E-mail: heciii@haroldcampbell.com In re Bahram Zartoshty Bankr. C.D. Cal. Case No. 15-11031 Chapter 11 Petition filed March 27, 2015 In re Huntingdon Baptist Church, Inc. Bankr. D. Md. Case No. 15-14312 Chapter 11 Petition filed March 27, 2015 See http://bankrupt.com/misc/mdb15-14312.pdf represented by: David W. Cohen, Esq. LAW OFFICE OF DAVID W. COHEN E-mail: dwcohen79@jhu.edu In re Mary Ellen Merusi Bankr. S.D.N.Y. Case No. 15-22392 Chapter 11 Petition filed March 27, 2015 In re Humphreys Flowers, Inc. Bankr. E.D. Tenn. Case No. 15-11260 Chapter 11 Petition filed March 27, 2015 See http://bankrupt.com/misc/tneb15-11260.pdf represented by: David J. Fulton, Esq. SCARBOROUGH & FULTON E-mail: djf@sfglegal.com In re R C A Digital Printing Corp Bankr. D.P.R. Case No. 15-02257 Chapter 11 Petition filed March 28, 2015 See http://bankrupt.com/misc/prb15-02257.pdf represented by: Modesto Bigas Mendez, Esq. MODESTO BIGAS LAW OFFICE E-mail: modestobigas@yahoo.com In re Gregory Dean Alfred Bankr. D. Colo. Case No. 15-13104 Chapter 11 Petition filed March 29, 2015 In re Rafael G. Diaz Bankr. S.D. Fla. Case No. 15-15620 Chapter 11 Petition filed March 29, 2015 In re Henry E. Harris, Jr. Bankr. M.D. Ga. Case No. 15-10368 Chapter 11 Petition filed March 29, 2015 In re Roderick R. Barton Bankr. D. Mass. Case No. 15-30263 Chapter 11 Petition filed March 29, 2015 In re Brian J. Benner Bankr. E.D. Mich. Case No. 15-44890 Chapter 11 Petition filed March 29, 2015 In re Winston T. Capel and Noelani Capel Bankr. S.D. Miss. Case No. 15-01039 Chapter 11 Petition filed March 29, 2015 In re Mary Ellen Merusi Bankr. S.D.N.Y. Case No. 15-22392 Chapter 11 Petition filed March 29, 2015 In re Keith Valaer Sessoms and Pamela Snyder Sessoms Bankr. M.D.N.C. Case No. 15-10335 Chapter 11 Petition filed March 29, 2015 In re Igor Kreychman and Zoya Kreychman Bankr. C.D. Cal. Case No. 15-11077 Chapter 11 Petition filed March 30, 2015 In re Bonnie Caudle Bankr. N.D. Cal. Case No. 15-51032 Chapter 11 Petition filed March 30, 2015 In re Platinum 5 Star Transport, Inc. Bankr. M.D. Fla. Case No. 15-01397 Chapter 11 Petition filed March 30, 2015 See http://bankrupt.com/misc/flmb15-01397.pdf represented by: Angela M. Ball, Esq. ANGELA M. BALL, P.A. E-mail: aball_law@hotmail.com In re Donna L. Johnson Bankr. N.D. Fla. Case No. 15-50105 Chapter 11 Petition filed March 30, 2015 In re Enclave Shores Condominium Association, Inc. Bankr. S.D. Fla. Case No. 15-15729 Chapter 11 Petition filed March 30, 2015 See http://bankrupt.com/misc/flsb15-15729.pdf represented by: Brian S. Behar, Esq. BEHAR, GUTT & GLAZER, P.A. E-mail: bsb@bgglaw.net In re Sirdah Enterprises, Inc. Bankr. N.D. Ga. Case No. 15-55724 Chapter 11 Petition filed March 30, 2015 See http://bankrupt.com/misc/ganb15-55724.pdf represented by: Ravena B. Lottie, Esq. BASKERVILLE LOTTIE & ASSOCIATES, LLC E-mail: rblottie@gmail.com In re Classic Capital Group, LP Bankr. E.D. Pa. Case No. 15-12130 Chapter 11 Petition filed March 30, 2015 See http://bankrupt.com/misc/paeb15-12130.pdf represented by: Leslie Beth Baskin, Esq. SPECTOR GADON ROSEN, P.C. E-mail: lbaskin@lawsgr.com In re Moxie Automotive, Inc. Bankr. M.D. Pa. Case No. 15-01278 Chapter 11 Petition filed March 30, 2015 See http://bankrupt.com/misc/pamb15-01278.pdf represented by: Chad J. Julius, Esq. JACOBSON, JULIUS & MCPARTLAND E-mail: cjulius@ljacobsonlaw.com In re Rudolf Kurt Meier, 3rd and Billie Ann Meier Bankr. D.N.J. Case No. 15-15618 Chapter 11 Petition filed March 30, 2015 In re Gracy Gonzalez Bankr. S.D.N.Y. Case No. 15-35576 Chapter 11 Petition filed March 30, 2015 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. 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 ***