/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/150508.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, May 8, 2015, Vol. 19, No. 128 Headlines ALLIED SYSTEMS: Files Ch. 11 Plan and Disclosure Statement ALTRO REALTY: Case Summary & 2 Largest Unsecured Creditors AMERICAN AXLE: Posts $53.2 Million Net Income in First Quarter AMERICAN AXLE: Stockholders Elect Three Directors to Board AMERICAN LIBERTY: Case Summary & 3 Largest Unsecured Creditors AMPAL-AMERICAN: CEO Wants "Conflicted" Trustee Booted AMPLIPHI BIOSCIENCES: Amends 2014 Annual Report to Add Part III ARCH COAL: Fitch Affirms 'CCC' Issuer Default Rating AT HOME HOLDING III: Moody's Rates New $300MM 1st Lien Loan B2 AT HOME HOLDING: S&P Lowers CCR to 'B-' on Refinancing ATLS ACQUISITION: Disclosure Statement Approved ATP OIL: Judge Tosses Duplicative Lien Suit Over Offshore Oil Work ATP OIL: Wants to Pursue Deepwater Claims Against BP AVANTOR PERFORMANCE: Moody's Changes Ratings Outlook to Stable AZ HONKY TONK: Case Summary & 5 Largest Unsecured Creditors BELLISIO FOODS: Moody's Alters Outlook to Neg & Affirms B3 CFR BERNARD L. MADOFF: Trustee Nets $11.1M in Clawback Deals BETH ISRAEL: S&P Revises Outlook to Stable & Affirms 'B+' Rating BIOPLAN USA: Moody's Affirms B3 Corp. Family Rating, Outlook Stable BLOCK COMMUNICATIONS: Moody's Affirms Ba3 CFR, Outlook Stable BPZ RESOURCES: Remains in Talks With Convertible Bondholders BREWERY LOFT PARTNERS: Aqualand Development Buys Dormant Lone Star C. WONDER: Sued by Workers Over WARN Act Violations CHINA MEDICAL: Paul Weiss Fights Liquidator's Bid for Documents CHINA NATURAL: Class Plaintiffs Can Proceed Despite Ch. 7 COMMUNITY HEALTH: S&P Assigns 'BB' Rating on $1-Bil. Term Loan G CONSTELLIS HOLDINGS: Moody's Rates New $450MM 2nd Lien Notes 'B3' CONSTELLIS HOLDINGS: S&P Affirms 'B' CCR, Outlook Remains Stable CRESTWOOD MIDSTREAM: S&P Affirms 'BB' CCR, Outlook Stable CROWN MEDIA: Reports $18.5 Million Net Income in First Quarter DBSI INC: Wavetronix Intervenors Sue Trust in Control Struggle DELCO OIL: Owner Gets 6.5 Years for Bank Fraud DREIER LLP: Ex-Diamond McCarthy Atty Denied Early Win in Fee Row DVORKIN HOLDINGS: Bankr. Court Weighs Interest Rates ELBIT IMAGING: Files Form 20-F with SEC ELEPHANT TALK: Amends 2014 Annual Report to Add Part III EMMAUS LIFE: Two Directors Resign Due to Disagreements ENDEAVOUR INTERNATIONAL: Judge Postpones Ruling on Bid for Standing ENERGIZER HOLDINGS: S&P Assigns 'BB' CCR, Outlook Stable ENERGIZER SPINCO: Moody's Assigns Ba2 CFR, Outlook Stable ERESEARCH TECHNOLOGIES: Moody's Says $25M Loan Upsize is Credit Neg ERG INTERMEDIATE: Has Interim Authority to Tap $5-Mil. in DIP Loan ERG INTERMEDIATE: Section 341(a) Meeting Set for June 9 EXELIXIS INC: Posts $35.2 Million Net Loss in First Quarter EXELIXIS INC: To Issue 10.4 Million Shares Under Incentive Plan FAMILY CHRISTIAN: Court Sets June 9 as Claims Bar Date FAMILY CHRISTIAN: US Trustee Wants Court to Name Consumer Ombudsman FIBERTECH HOLDING: Moody's Changes Outlook to Developing FL 6801 SPIRITS: Deadline to Remove Suits Extended to May 19 FREDERICK'S OF HOLLYWOOD: Can Proceed With May 28 Auction FREEDOM INDUSTRIES: State Regulators Set Up Spill Cleanup Website FREEDOM INDUSTRIES: Targeting June Confirmation of Chapter 11 Plan GARLOCK SEALING: Belluck Fights Subpoenas in Racketeering Suit GENERAL MOTORS: Ignition Switch Plaintiffs to Appeal Shield Ruling GFI GROUP: Fitch Raises IDR to 'BB+', Off Rating Watch Positive GILES-JORDAN: To Present Plan for Confirmation on May 14 GT ADVANCED: U.S. Trustee Wants Spending Examined HALO SPORTS: Case Summary & 5 Largest Unsecured Creditors HANLIN AUTOMOTIVE: Case Summary & 20 Largest Unsecured Creditors HCA INC: Fitch Assigns 'BB-' Rating on $1.6 Billion Senior Notes HCA INC: Moody's Ba3 CFR Unaffected by $1.6BB Bond Offering HCA INC: S&P Assigns 'B+' Rating on Proposed $1.6BB Unsecured Notes HORIZON LINES: Posts $23.8 Million Net Loss in First Quarter HOST HOTELS: S&P Affirms 'BB+' Corporate Credit Rating HUTCHESON MEDICAL: Erlanger Blocks Bid to Amend Counter-Claim INFILTRATOR SYSTEMS: S&P Assigns 'B' CCR; Outlook Stable INTEGRATED FREIGHT: Swings to $1.43 Million Net Loss in 2014 ISOLA USA: S&P Revises Outlook to Negative & Affirms 'B-' CCR KARMALOOP INC: Defeats U.S. Trustee's Bid to DQ Bankruptcy Counsel KIOR INC: Hearing on Miss. Agency's Standing Bid Pushed Back LAKELAND INDUSTRIES: Delays Filing of 2014 Form 10-K LAKELAND INDUSTRIES: Determines to Exit Brazil LPHM INC: Case Summary & 7 Largest Unsecured Creditors MAGNETATION LLC: Moody's Lowers Corp. Family Rating to 'C' MAGNETATION LLC: S&P Lowers CCR to 'D' on Chapter 11 Filing MF GLOBAL: PwC Liability in Fiasco a Close Call in 2nd Circuit MICHAEL VALONE: Gets $4,000 Boost from 11th Circuit MMRGLOBAL INC: Amends 2014 Annual Report MOLYCORP INC: Amends 2014 Annual Report MOLYCORP INC: Amends 2014 Annual Report MOMENTIVE PERFORMANCE: Judge Upholds Ruling on Make-Whole Claims NAKED BRAND: Posts $21.1 Million Net Loss in Fiscal 2014 NATROL INC: Feds, IRS Object to Ch. 11 Liquidation Plan NEENAH PAPER: S&P Affirms 'BB' CCR, Outlook Remains Stable NEWLEAD HOLDINGS: Needs More Time to File Form 20-F NEWSAT LIMITED: Reaches Deal with Lockheed OAS SA: Creditors Demand Morgan Lewis Client Names PACIFIC RUBIALES: Fitch Sees Potential Acquisition as CreditNeutral PARKWAY EAST: S&P Cuts SPUR on 2005 Special Assesstment Bonds to D PHYSIO-CONTROL INT'L: Moody's Affirms 'B2' CFR, Outlook Stable PLASTIC2OIL INC: Court Dismisses Stockholders Class Action Suit PRETTY GIRL OF FORDHAM: Case Summary & 8 Top Unsecured Creditors PTC GROUP: Moody's Cuts Corporate Family Rating to 'B3' PTC SEAMLESS: May 8 Final Hearing on $650,000 Bridge Financing PTC SEAMLESS: Seeks to Tap $5-Mil. DIP Loan from Black Diamond QUICKSILVER RESOURCES: Gets OK on Deal to Drill New Wells QUICKSILVER RESOURCES: Has Until May 18 to File Schedules QUINTILES TRANSNATIONAL: S&P Retains 'BB+' Corp. Credit Rating RCC CONSULTANTS: Files for Chapter 11 Bankruptcy Protection REVEL AC: NJ Regulators Says Straub Can't Take Casino License SALADWORKS LLC: Can Proceed with May 27 Auction SIGA TECHNOLOGIES: Inks Modification to Contract With BARDA SPECTRUM ANALYTICAL: Seeks to Use Cash Collateral; Bank Objects SPECTRUM ANALYTICAL: Taps Bacon Wilson as Bankruptcy Counsel STERIGENICS-NORDION HOLDINGS: S&P Rates $450MM Unsec. Notes 'CCC+' SUNTECH AMERICA: Deadline to Remove Suits Extended to Aug. 11 TMT PROCUREMENT: Faces Chapter 7 Conversion Lodged by Hsin Chi Su US AIRWAYS: Pilots Settle Lump-Sum Pension Fight for $5.2-Mil. USA SYNTHETIC: US Trustee to Schedule Another 341 Meeting USA SYNTHETIC: US Trustee Unable to Form Creditors' Committee VANDERBUILT CONSTRUCTION: Case Summary & 6 Top Unsec. Creditors VIRTUAL PIGGY: Amends 2014 Annual Report VIVARO CORP: Unsecured Creditors Fight $8-Mil. Leucadia Deal WADDELLS LONGHORN: Case Summary & 19 Largest Unsecured Creditors WALTER ENERGY: Might Consider Filing for Ch 11 Bankr. Protection WAVE SYSTEMS: Adopts Majority Votes in Electing Directors WAYNE COUNTY, MI: Chief Unveils Plan to Dodge Bankruptcy WESTMORELAND RESOURCE: Reports $67.5M Revenues in First Quarter WHITTEN FOUNDATION: Has Until May 14 to File Schedules XINERGY LTD: Founder Cries Foul Over Miner's Plunge Into Ch. 11 YMCA MILWAUKEE: Gets Final Decree Closing Bankruptcy Case [*] April Bankruptcy Filings Decrease 12% from Previous Year [*] Bankruptcy Filings Drop 12% to 77,884 in April 2015 ********* ALLIED SYSTEMS: Files Ch. 11 Plan and Disclosure Statement ---------------------------------------------------------- ASHINC Corporation, f/k/a Allied Systems Holdings, Inc., and its debtor affiliates filed with the U.S. Bankruptcy Court for the District of Delaware a joint Chapter 11 plan of reorganization, co-proposed by the Committee and the first lien agents. The Plan provides that certain of the Debtors' assets, the Litigation Trust Assets, will vest in the Allied Litigation Trust, and the remainder of the Debtors' assets, including the proceeds from the sale of substantially all of the Debtors' assets, will either revest in the Reorganized Debtors or be distributed to the Debtors' creditors. The beneficial interests in the Allied Litigation Trust will be distributed to holders of Claims as a portion of the distributions that will be made under the Plan. Any proceeds of the Litigation Claims will be distributed pursuant to the Litigation Proceeds Waterfall as follows: (1) first, to the Backstop Parties in satisfaction of the Backstop Fee; (2) second, to repay all Litigation Funding Loans then outstanding; (3) third, to the Litigation Lenders in the amount of $4.5 million; (4) fourth, a distribution of up to the next $3 million, to be allocated on a dollar for dollar basis (i) 50% on a Pro Rata basis to the holders of Allowed First Lien Lender Claims and (ii) 50% on a Pro Rata basis to the holders of Allowed General Unsecured Claims and Allowed Second Lien Lender Claims; and (5) thereafter, any remaining balance will be split on a dollar for dollar basis as follows (i) 20% on a Pro Rata basis to the holders of Allowed First Lien Lender Claims; (ii) 5% on a Pro Rata basis to the holders of Allowed General Unsecured Claims and Allowed Second Lien Lender Claims; and (iii) 75% to the Litigation Funding Lenders. The Debtors ask the Court to set July 23, 2015, at 10:00 a.m. (prevailing Eastern Time) as the date and time for the Bankruptcy Court to consider confirmation of the Plan. The hearing to consider the entry of the Disclosure Statement Order will be held on June 8, 2015, at 10:00 a.m. (ET). Responses and objections to the approval of the Disclosure Statement must be served so as to be actually received on or before on June 1. A full-text copy of the Disclosure Statement dated May 4, 2015, is available at http://bankrupt.com/misc/ASHds0504.pdf About Allied Systems Holdings BDCM Opportunity Fund II, LP, Spectrum Investment Partners LP, and Black Diamond CLO 2005-1 Adviser L.L.C., filed involuntary petitions for Allied Systems Holdings Inc. and Allied Systems Ltd. (Bankr. D. Del. Case Nos. 12-11564 and 12-11565) on May 17, 2012. The signatories of the involuntary petitions assert claims of at least $52.8 million for loan defaults by the two companies. Allied Systems, through its subsidiaries, provides logistics, distribution, and transportation services for the automotive industry in North America. Allied Holdings Inc. first filed for chapter 11 protection (Bankr. N.D. Ga. Case Nos. 05-12515 through 05-12537) on July 31, 2005. Jeffrey W. Kelley, Esq., at Troutman Sanders, LLP, represented the Debtors in the 2005 case. Allied won confirmation of a reorganization plan and emerged from bankruptcy in May 2007 with $265 million in first-lien debt and $50 million in second- lien debt. The petitioning creditors said Allied defaulted on payments of $57.4 million on the first lien debt and $9.6 million on the second. They hold $47.9 million, or about 20% of the first-lien debt, and about $5 million, or 17%, of the second-lien obligation. They are represented by Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP; and Adam C. Harris, Esq., and Robert J. Ward, Esq., at Schulte Roth & Zabel LLP. Allied Systems Holdings Inc. formally put itself and 18 subsidiaries into bankruptcy reorganization June 10, 2012, following the filing of the involuntary Chapter 11 petition. The Company is being advised by Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., and Jeffrey W. Kelley, Esq., at Troutman Sanders, Gowling Lafleur Henderson. The bankruptcy court process does not include captive insurance company Haul Insurance Limited or any of the Company's Mexican or Bermudan subsidiaries. The Company also announced that it intends to seek foreign recognition of its Chapter 11 cases in Canada. An official committee of unsecured creditors has been appointed in the case. The Committee consists of Pension Benefit Guaranty Corporation, Central States Pension Fund, Teamsters National Automobile Transporters Industry Negotiating Committee, and General Motors LLC. The Committee is represented by Sidley Austin LLP. In January 2014, the U.S. Trustee for Region 3 appointed a three- member Official Committee of Retirees. Yucaipa Cos. has 55% of the senior debt and took the position it had the right to control actions the indenture trustee would take on behalf of debt holders. The state court ruled in March 2013 that the loan documents didn't allow Yucaipa to vote. In March 2013, the bankruptcy court also gave the official creditors' committee authority to sue Yucaipa. The suit includes claims that the debt held by Yucaipa should be treated as equity or subordinated so everyone else is paid before the Los Angeles- based owner. The judge allowed Black Diamond to participate in the lawsuit against Yucaipa and Allied directors. Allied Systems Holdings, Inc., changed its name to ASHINC Corporation. ALTRO REALTY: Case Summary & 2 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Altro Realty Corp. 100 Keyland Court Unit #12 Bohemia, NY 11717 Case No.: 15-11192 Chapter 11 Petition Date: May 7, 2015 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: Hon. Shelley C. Chapman Debtor's Counsel: Dawn Kirby Arnold, Esq. DELBELLO DONNELLAN WEINGARTEN WISE & WIEDERKEHR, LLP One North Lexington Avenue White Plains, NY 10601 Tel: (914) 681-0200 Fax: 914-681-0288 Email: dkirby@ddw-law.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Kenneth Swany, president. A list of the Debtor's two largest unsecured creditors is available for free at http://bankrupt.com/misc/nysb15-11192.pdf AMERICAN AXLE: Posts $53.2 Million Net Income in First Quarter -------------------------------------------------------------- American Axle & Manufacturing Holdings, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $53.2 million on $969.1 million of net sales for the three months ended March 31, 2015, compared to net income of $33.6 million on $858.8 million of net sales for the same period a year ago. As of March 31, 2015, the Company had $3.3 billion in total assets, $3.16 billion in total liabilities and $142.3 million in total stockholders' equity. "AAM is off to a great start in 2015, with increased North American production volumes and improved operating efficiency driving sales growth and margin expansion," said AAM's Chairman, president and chief executive officer, David C. Dauch. "We remain focused on leveraging AAM's technology leadership to develop innovative new products to improve the fuel efficiency, safety, ride and handling performance of our customers' vehicle programs, while delivering on our plan to sustain strong free cash flow performance." A full-text copy of the Form 10-Q is available for free at: http://is.gd/WbWpol About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE: AXL) -- http://www.aam.com/-- manufactures, engineers, designs and validates driveline and drivetrain systems and related components and chassis modules for light trucks, sport utility vehicles, passenger cars, crossover vehicles and commercial vehicles. * * * In September 2012, Moody's Investors Service affirmed the 'B1' Corporate Family Rating (CFR) and Probability of Default Rating (PDR) of American Axle. American Axle carries a 'BB-' corporate credit rating from Standard & Poor's Ratings Services. "The 'BB-' corporate credit rating on American Axle reflects the company's 'weak' business risk profile and 'aggressive' financial risk profile, which incorporate substantial exposure to the highly cyclical light- vehicle market," S&P said, as reported by the TCR on Sept. 6, 2012. As reported by the TCR on Sept. 1, 2014, Fitch Ratings had upgraded the Issuer Default Ratings (IDRs) of American Axle & Manufacturing Holdings, Inc. (AXL) and its American Axle & Manufacturing, Inc. (AAM) subsidiary to 'BB-' from 'B+'. The upgrade of the IDRs for AXL and AAM is supported by the fundamental improvement in the drivetrain and driveline supplier's credit profile over the past several years. AMERICAN AXLE: Stockholders Elect Three Directors to Board ---------------------------------------------------------- American Axle & Manufacturing Holdings, Inc., held its annual meeting of stockholders on April 30, 2015, at which the stockholders elected David C. Dauch, William L. Kozyra and Peter D. Lyons to the Board of Directors. The stockholders approved the Amended and Restated American Axle & Manufacturing Holdings, Inc. 2012 Omnibus Incentive Plan and approved, on an advisory basis, the compensation of AAM's named executive officers. The appointment of Deloitte & Touche LLP as AAM's independent registered public accounting firm for the year ending Dec. 31, 2015, was also ratified. On Feb. 5, 2015, the Board of Directors of American Axle approved the Amended and Restated American Axle & Manufacturing Holdings, Inc. 2012 Omnibus Incentive Plan. About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE: AXL) -- http://www.aam.com/-- manufactures, engineers, designs and validates driveline and drivetrain systems and related components and chassis modules for light trucks, sport utility vehicles, passenger cars, crossover vehicles and commercial vehicles. As of March 31, 2015, the Company had $3.3 billion in total assets, $3.16 billion in total liabilities and $142.3 million in total stockholders' equity. * * * In September 2012, Moody's Investors Service affirmed the 'B1' Corporate Family Rating (CFR) and Probability of Default Rating (PDR) of American Axle. American Axle carries a 'BB-' corporate credit rating from Standard & Poor's Ratings Services. "The 'BB-' corporate credit rating on American Axle reflects the company's 'weak' business risk profile and 'aggressive' financial risk profile, which incorporate substantial exposure to the highly cyclical light- vehicle market," S&P said, as reported by the TCR on Sept. 6, 2012. As reported by the TCR on Sept. 1, 2014, Fitch Ratings had upgraded the Issuer Default Ratings (IDRs) of American Axle & Manufacturing Holdings, Inc. (AXL) and its American Axle & Manufacturing, Inc. (AAM) subsidiary to 'BB-' from 'B+'. The upgrade of the IDRs for AXL and AAM is supported by the fundamental improvement in the drivetrain and driveline supplier's credit profile over the past several years. AMERICAN LIBERTY: Case Summary & 3 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: American Liberty Oil Company, LP PO Box 1077 Kaufman, TX 75142 Case No.: 15-32019 Chapter 11 Petition Date: May 6, 2015 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Hon. Stacey G. Jernigan Debtor's Counsel: Hudson M. Jobe, Esq. QUILLING, SELANDER, LOWNDS, WINSLETT & MOSER, P.C. 2001 Bryan Street, Suite 1800 Dallas, TX 75201 Tel: (214) 871-2100 Fax: (214) 871-2111 Email: hjobe@qslwm.com Estimated Assets: $10 million to $50 million Estimated Debts: $1 million to $10 million The petition was signed by Wreno S. Wynne, Jr, managing partner of ALOC LLC. List of Debtor's three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Skibell Bohach & Archer Debt $26,027 17110 Dallas Parkway, #214 Dallas, TX 75248 BKM Sowan Horan Debt $16,044 15301 Dallas Parkway, Suite 960 Addison, TX 75001 Foreman and Kessler, LTD. Debt $1,927 204 E. Main St. Salem, IL 62881 AMPAL-AMERICAN: CEO Wants "Conflicted" Trustee Booted ----------------------------------------------------- Law360 reported that Ampal-American Israel Corp.'s CEO accused trustee Alex Spizz and his firm, Tarter Krinsky & Drogin LLP, of a conflict of interest over Tarter's representing one of the estate's biggest creditors, asking a New York bankruptcy court to toss the firm and trustee from the case. According to the report, Yosef A. Maiman said in a motion that Mr. Spizz, trustee of bankrupt energy investment holding company Ampal, showed favoritism for creditor Mishmeret-Trusts Co. Ltd. and its attorney, Ofer Shapira, by joining Tarter as a partner weeks ago. About Ampal-American Ampal-American Israel Corporation -- http://www.ampal.com/-- acquired interests primarily in businesses located in Israel or that are Israel-related. Ampal-American filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-13689) on Aug. 29, 2012, to restructure the Company's Series A, Series B and Series C debentures. Bankruptcy Judge Stuart M. Bernstein presides over the case. Ampal-American sought bankruptcy protection in the U.S. because bankruptcy laws in Israel would lead to the Company's liquidation. Michelle McMahon, Esq., at Bryan Cave LLP, serves as the Debtor's counsel. Houlihan Lokey serves as investment banker. The petition was signed by Irit Eluz, chief financial officer, senior vice president. The Company scheduled $290,664,095 in total assets and $349,413,858 in total liabilities. A three-member official committee of unsecured creditors is represented by Brown Rudnick as counsel. In May 2013, the Bankruptcy Court converted Ampal's Chapter 11 bankruptcy to a Chapter 7 liquidation after determining that the energy investment holding company does not have sufficient cash to execute a reorganization plan. AMPLIPHI BIOSCIENCES: Amends 2014 Annual Report to Add Part III --------------------------------------------------------------- Ampliphi Biosciences Corporation has filed an amended annual report for the year ended Dec. 31, 2014, for the purpose of filing the information required by Part III of Annual Report on Form 10-K. No other changes have been made to the Annual Report originally filed with the Securities and Exchange Commission on April 15, 2015. A copy of the Form 10-K/A is available for free at http://is.gd/iUc74A About AmpliPhi AmpliPhi Biosciences Corp. is a biopharmaceutical company that develops bacteriophage-based therapeutics. It also develops an internally generated pipeline of naturally occurring viruses called bacteriophage (Phage) for the treatment of bacterial infection, such as drug-resistant strains of bacteria that are commonly found in the hospital setting. The company's Phage discovery also focuses on acute & chronic lung, sinus and gastrointestinal infections. AmpliPhi Biosciences was founded in March 1989 and is headquartered in Glen Allen, Virginia. The Company reported a net loss of $57.6 million on $325,000 of total revenue for the year ended Dec. 31, 2013, compared with a net loss of $1.11 million on $664,000 of total revenue in 2012. PBMares, LLP, in Richmond, Virginia, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has had recurring losses from operations and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. As of Sept. 30, 2014, the Company had $28.4 million in total assets, $17.08 million in total liabilities and $11.3 million in total stockholders' equity. ARCH COAL: Fitch Affirms 'CCC' Issuer Default Rating ---------------------------------------------------- Fitch Ratings has affirmed the Issuer Default Rating (IDR) for Arch Coal, Inc. (Arch Coal; NYSE: ACI) at 'CCC'. Roughly $4.5 billion in principal amount of debt and commitments are affected by this action. KEY RATING DRIVERS Arch Coal benefits from large, well-diversified operations and good control of low-cost production. Globally, Arch is the sixth largest coal producer based on volumes. The company sold 134 million tons of coal in 2014. Roughly 97% of expected 2015 steam coal production volumes are committed and priced. Assuming no change in sales volume for 2016, about 41% of steam tons are committed and priced. The company has the third largest coal reserve position in the U.S. at 5.1 billion tons. Steam coal demand in the U.S. is currently suffering from competition from very low natural gas prices, supply has been disciplined, but stocks are on the high side and prices are soft. Lack of new coal fired power plant builds constrains growth in the U.S. Globally, both metallurgical (met) and steam coal markets are in excess supply and prices are weak. Coal producers have been running for cash with a focus on reducing costs which has delayed price recovery. In particular, Fitch believes the hard coking coal bench mark price could average about $110/tonne (t) and the Newcastle steam coal benchmark could be below $62/t over the next 12 months versus current prices of $109.50/t and $67.80/t respectively. The industry is consolidating, which should benefit supply/demand dynamics longer term. Liquidity At March 31, 2015, cash on hand was $690 million, short-term investments were $250 million, and Fitch estimates that $250 million was available under the company's credit facilities. The $200 million accounts receivable facility with a stated maturity in December 2017, and is renewable annually. The $250 million credit facility matures in June 2016. Revolver covenants include a maximum net senior secured leverage ratio of 5:1 from June 30, 2015 with step-downs thereafter and a minimum liquidity of $550 million through Dec. 30, 2015. Fitch does not expect Arch Coal to be in compliance with the covenant at 2015 year end but expects cash and short-term investments to provide sufficient liquidity through 2017. Free Cash Flow Burn Cash burn is expected to continue absent substantial recovery in met coal prices. Guidance for cash interest expense is $360 million to $370 million and for capital expenditure is $140 million to $155 million for 2015. Fitch expects cash burn of at least $200 million per year through 2017. Estimated scheduled maturities of debt are $34.4 million in 2015, $29.9 million in 2016, $30.1 million in 2017, $1.9 billion in 2018, $1.7 billion in 2019 and $1.5 billion thereafter. Amounts due beyond 2017 will need to be refinanced or restructured. Capital Structure Arch's actions to preserve liquidity since 2012 coupled with three years of losses have resulted in a debt/capital ratio at 77%. Fitch expects earnings to be weak and leverage to remain elevated through at least 2016. Recovery Fitch expects the senior secured bank facilities have outstanding recovery prospects in a default scenario, while the second lien notes have superior and the senior unsecured notes have below average recovery prospects. KEY ASSUMPTIONS -- Production, costs, and capital expenditures within guidance range for 2015; -- Coal prices bottom out in 2015 with scant recovery thereafter. RATING SENSITIVITIES Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- Lack of material improvement in top line results or absence of liquidity enhancements over the next 12-18 months. Positive: Not anticipated over the next 12 months given industry conditions but future developments that may lead to a positive rating action include: -- Debt levels materially reduced and free cash flow generation is expected to be positive on average. Fitch has affirmed Arch Coals' ratings as: -- IDR at 'CCC'; -- Senior secured revolving credit facility at 'B/RR1'; -- Senior secured term loan at 'B/RR1'; -- Second lien secured notes at 'B-/RR2'; -- Senior unsecured notes at 'CCC-/RR5'. AT HOME HOLDING III: Moody's Rates New $300MM 1st Lien Loan B2 -------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to At Home Holding III, Inc.'s proposed $300 million first lien term loan due 2022 and affirmed the company's B2 Corporate Family Rating and B2-PD Probability of Default Rating. The ratings outlook is stable. Proceeds from the proposed first lien term loan, along with a proposed $130 million un-rated second lien term loan, will be used to refinance the company's existing $360 million senior secured notes, repay a portion of outstanding revolver borrowings, and pay the call premium incurred upon early redemption of the existing notes as well as related fees and expenses. At Home is currently owned by AEA Investors LP. Moody's estimates pro-forma lease-adjusted leverage through January 31, 2015 will rise to around 7x (from the high 6 times) as a result of the proposed refinancing that will increase funded debt by approximately $40 million. However, the affirmation of the B2 rating reflects Moody's view that leverage should moderate over the next 12-18 months as the company capitalizes on the significant investments made in fiscal 2015 including a major re-branding initiative, infrastructure and systems enhancements, and new store openings. New store growth has been aggressive, with the company adding 13 net new stores in fiscal 2015, representing an increase of almost 20% from the prior year. After giving credit for a full year of earnings at the newly opened stores, Moody's estimates run-rate debt/EBITDA leverage in the low 6x range. The proposed transaction is also expected to reduce annual interest expense by nearly $8-9 million leading to improved interest coverage. Ratings assigned: -- $300 million Senior Secured First Lien Term Loan due 2022, Assigned B2, LGD-3 Ratings affirmed: -- Corporate Family Rating, Affirmed B2 -- Probability of Default Rating, Affirmed B2-PD Outlook Actions: -- Outlook, Remains Stable The following rating is unaffected and will be withdrawn upon close of the proposed transaction: -- $360 million Senior Secured Notes due 2019 at B3, LGD-4 (to be withdrawn upon close of the proposed transaction) At Home's B2 CFR reflects the company's modest scale, limited store base, and high leverage of approximately 7.1x through January 31, 2015, pro-forma for the proposed transaction. The rating also reflects the company's highly aggressive growth strategy in which significant cash flow will be used to fund growth related capital expenditures, limiting the cash flow available for potential de-leveraging. The company operates in the highly fragmented and discretionary home decor segment and competes directly with many larger retailers who possess greater overall scale and financial resources. The B2 rating is supported by the significant operational improvements made in recent years, strong same-store sales growth boosted by the company's recent rebranding, and low-cost operating model. Moody's expects aggressive store expansion to continue, with comparable sales growing in the low single digit range and relatively stable operating margins resulting in debt/EBITDA leverage in the mid-to-low 6x range over the next 12 to 18 months. At Home's liquidity profile is adequate, reflecting Moody's expectation that ongoing investments in new store expansion will continue to utilize the majority of the company's cash generated from operations, resulting in negative free cash flow over the next 12-18 months. However, Moody's views much of the growth capex as discretionary and notes that free cash flow could turn positive if the company decided to pull back on its aggressive growth strategy. Additional cash uses include modest term loan amortization of $3 million annually and an excess cash flow sweep expected to commence in fiscal 2017. Moody's expects the company will continue to rely on its $140 million Asset Based Revolver (ABL) due 2019 particularly during peak working capital and expansion periods, as well as sale-leaseback transactions to help fund its growth. As of January 31, 2015 the company had approximately $67 million outstanding on the ABL facility, which should be reduced by approximately $30 million with proceeds from the proposed transaction. However, Moody's anticipates the ABL will remain drawn over the next 12-18 months which would reduce available borrowing along with fluctuations in the borrowing base. The ABL contains a springing fixed charge coverage covenant test of 1.0x that would be triggered when availability is less than the greater of 10% of the borrowing base or $7.5 million. Moody's does not expect this covenant to be triggered over the next 12-18 months, but would anticipate ample cushion in the event that it were triggered. The B2 rating and LGD-3 assessment assigned to At Home's senior secured 1st lien term loan reflects the first priority on essentially all assets of the company with the exception of the ABL priority collateral (receivables and inventory), on which it holds a second lien. The proposed 2nd lien term loan will have a second priority lien on the term loan collateral and a third lien on the ABL collateral. The stable outlook reflects Moody's expectation that new store expansion and same store sales growth will drive revenue and EBITDA higher over the next 12-18 months resulting in leverage in the mid-to-low 6x range and interest coverage (EBITA/Interest) around 1.5x. Moody's anticipates only modest debt repayment with the majority of cash generated from operations applied to meaningful investments in growth capital. At Home's ratings could experience upward pressure if the company is able to successfully implement its growth strategy resulting in meaningful revenue and EBITDA growth from same store sales and new store expansion, with relatively stable EBITDA margins. An upgrade would require the ability and willingness to achieve and maintain debt/EBITDA below 4.5 times with interest coverage above 2.20 times. An upgrade would also require an improved liquidity profile with positive free cash flow generation. Ratings could be downgraded if weaker than anticipated operating performance were to result in leverage maintained at or above current levels, or if liquidity were to deteriorate. Specific metrics include debt/EBITDA maintained above 6.5 times and/or interest coverage below 1.25 times. The principal methodology used in these ratings was Global Retail Industry published in June 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. At Home is a retailer of 85 home decor and home improvement retail stores located across 23 states within the United States. LTM revenues through January 31, 2015 were just under $500 million. AT HOME HOLDING: S&P Lowers CCR to 'B-' on Refinancing ------------------------------------------------------ Standard & Poor's Ratings Services lowered its corporate credit rating on Plano, Texas-based At Home Holding III, Inc. (formerly GRD Holding III Corp.) to 'B-' from 'B'. The outlook is stable. At the same time, S&P assigned a 'B-' issue-level rating and '3' recovery rating to the new first-lien term loan. The '3' recovery rating indicates S&P's expectation for meaningful (50%-70%) recovery in the event of a payment default. S&P's recovery expectations are in the lower half of the 50% to 70% range. The company will use proceeds from the transaction to refinance its 10.75% senior secured notes, repay $30 million of existing revolver borrowings, and pay associated call premiums and fees related to the transaction. S&P do not rate the company's $140 million revolver or the second-lien term loan. "The downgrade reflects increased debt leverage and negative free operating cash flow over the next year as At Home embarks on an aggressive store expansion plan to take advantage of vacancies at malls and strip centers nationwide," said credit analyst Diya Iyer. "The company had $132 million in gross capital expenditures ($83 million net of proceeds from asset sales) in the latest fiscal year ended Jan. 31, 2015, up on a gross basis from the year before, for both one time-costs including a distribution center and rebranding, as well as new store growth." The rating outlook on At Home is stable, as S&P believes the company needs to continue to sustain profitable store growth through improved branding, merchandising assortment, and ramped up marketing spend to drive deleveraging in the next two years. S&P would consider an upgrade in the next year if At Home improves and sustains credit metrics, resulting in debt leverage approaching 5.0x and interest coverage near 3.0x. This could occur if sales increase 15% or gross margin improves by 200 basis points (bps). S&P would also consider an upgrade if the company repays debt ahead of its projections and generates more free operating cash flow through its combination of leasing, building, and owning its store base. S&P could lower its rating in the next year if operating performance or credit protection measures deteriorate, S&P's liquidity assessment falls to "less than adequate", debt leverage remains above 6.5x, or interest coverage approaches 1.0x. This would be precipitated by poor execution of the company's operating strategy, a greater-than-anticipated margin or same-store sales decline, or increased competitive pressures. Under this scenario, revenue would only grow in the 5% range and gross margin would decrease by more than 100 bps. ATLS ACQUISITION: Disclosure Statement Approved ----------------------------------------------- Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for the District of Delaware approved the disclosure statement explaining ATLS Acquisition, LLC, et al.'s First Amended Joint Plan of Liquidation, allowing the company to send the outline to creditors for voting, Law360 reported. "I find it contains adequate information to permit parties to vote," Judge Silverstein said from the bench, Law360 cited. Under the First Amended Plan, which is co-proposed by the Official Committee of Unsecured Creditors and Medco Health Solutions, Inc., Individual Party Settlement provides for an aggregate $2.4 million distribution in full and final satisfaction of all of the Individual Party Claims, including any claims that the individual parties may have against the Debtors' estates, directly or indirectly, for attorneys' fees and costs. The Individual Party Settlement also provides for the exchange of full mutual releases between the Individual Parties, and Medco, the Medco Affiliates, the Debtors' estates, the Creditors' Committee, the Liquidating Trustee and the Liquidating Trust, and the Plan Oversight Committee. A blacklined version of the Disclosure Statement dated May 5, 2015, is available at http://bankrupt.com/misc/ATLSds0505.pdf About Liberty Medical Entities that own diabetics supply provider Liberty Medical led by ATLS Acquisition, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-10262) on Feb. 15, 2013, just less than three months after a management buy-out and amid a notice by the lender who financed the transaction that it's exercising an option to acquire the business. Liberty has been in business for 22 years serving the needs of both type 1 and type 2 diabetic patients. Liberty is a mail order provider of diabetes testing supplies. In addition to diabetes testing supplies, the Debtors also sell insulin pumps and insulin pump supplies, ostomy, catheter and CPAP supplies and operate a large mail order pharmacy. Liberty operates in seven different locations and has 1,684 employees. Dennis A. Meloro, Esq., at Greenberg Traurig, LLP, serves as the Debtor's counsel; Ernst & Young LLP to provide investment banking advice; and Epiq Bankruptcy Solutions, LLC, as claims and noticing agent for the Clerk of the Bankruptcy Court. An official committee of unsecured creditors has been appointed in the case and consists of LifeScan, Inc., Abbott Laboratories, and Teva Pharmaceuticals USA, Inc. They are represented by Joseph H. Huston Jr., Esq., Maria Aprile Sawczuk, Esq., and Camille C. Bent, Esq., of Stevens & Lee P.C. as well as Bruce Buechler, Esq., S. Jason Teele, Esq., and Nicole Stefanelli, Esq. of Lowenstein Sandler LLP. The Committee has tapped Mesirow Financial Consulting, LLC, as financial advisors. * * * In November 2014, the Debtor received the green light from the Bankruptcy Court for its $68.5 million sale to an investment group led by private equity firm Palm Beach Capital. The auction for the assets boosted the purchase price by more than $20 million. ATP OIL: Judge Tosses Duplicative Lien Suit Over Offshore Oil Work ------------------------------------------------------------------ Law360 reported that U.S. District Judge Nelva Gonzalez Ramos in Texas dismissed a $2.2 million suit against ATP Infrastructure Partners LP over unpaid offshore drilling work, saying the claims duplicated earlier lawsuits and couldn't advance while an ATP bankruptcy is pending. According to the report, Judge Ramos said the issues raised by three cases between plaintiff Omega Natchiq Inc. and ATP substantially overlap. Each case depends on whether Omega properly established and perfected a lien under the Louisiana Oil Well Lien Act and whether Omega can collect payment for work done in connection with ATP's drilling operations before and after the company filed for bankruptcy, the report related. "Every basis for discretionary dismissal under the first-to-file rule is clearly present in this case," Law360 cited Judge Ramos as saying. "In addition to involving the same issues between the same parties and wasteful duplication of effort, proceeding with this case would countermand the Louisiana order by which that judge sought to prevent the parties and the court from dissipating resources, pending ATP bankruptcy distributions that could significantly reduce or eliminate Omega's claim against Infrastructure." The case is Omega Natchiq Inc. v. ATP Infrastructure Partners LP, case number 2:14-cv-00448, in the U.S. District Court for the Southern District of Texas. About ATP Oil Houston, Texas-based ATP Oil & Gas Corporation is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. ATP Oil & Gas filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 12-36187) on Aug. 17, 2012. Attorneys at Mayer Brown LLP, serve as bankruptcy counsel. Munsch Hardt Kopf & Harr, P.C., is the conflicts counsel. Motley Rice LLC and Fayard & Honeycutt, APC serve as special counsel. Opportune LLP is the financial advisor and Jefferies & Company is the investment banker. Kurtzman Carson Consultants LLC is the claims and notice agent. ATP disclosed assets of $3.6 billion and $3.5 billion of liabilities as of March 31, 2012. Debt includes $365 million on a first-lien loan where Credit Suisse AG serves as agent. There is $1.5 billion on second-lien notes with Bank of New York Mellon Trust Co. as agent. ATP's other debt includes $35 million on convertible notes and $23.4 million owing to third parties for their shares of production revenue. Trade suppliers have claims for $147 million, ATP said in a court filing. An official committee of unsecured creditors has been appointed in the case. Evan R. Fleck, Esq., at Milbank, Tweed, Hadley & McCloy, in New York, represents the Creditors Committee as counsel. A seven-member panel of equity security holders has also been appointed in the case. Kyung S. Lee, Esq., and Charles M. Rubio, Esq. of Diamond McCarthy LLP, in Houston, Texas, serve as counsel to the Equity Committee. * * * Judge Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, issued an order on June 26, 2014, converting ATP Oil & Gas Corporation's Chapter 11 case to one under Chapter 7 of the Bankruptcy Code. ATP OIL: Wants to Pursue Deepwater Claims Against BP ---------------------------------------------------- Law360 reported that ATP Oil & Gas Corp. asked a Texas bankruptcy judge to allow it to proceed with civil litigation against BP PLC, saying it needs any proceeds from the Deepwater Horizon dispute to help pay down a $283 million debtor-in-possession loan. According to the report, ATP, which is currently stuck in Chapter 7 proceedings, says it is accruing interest on the loan at $120,000 per day without any income to combat the rising DIP costs or to pay the more than $2 billion in creditor claims that remain in the bankruptcy. ATP says it might recoup some of those losses from BP but needs the bankruptcy judge to lift a litigation stay so that the destitute company's attorneys can begin gathering evidence for the case against the British oil giant, the report said. About ATP Oil Houston, Texas-based ATP Oil & Gas Corporation is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. ATP Oil & Gas filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 12-36187) on Aug. 17, 2012. Attorneys at Mayer Brown LLP, serve as bankruptcy counsel. Munsch Hardt Kopf & Harr, P.C., is the conflicts counsel. Motley Rice LLC and Fayard & Honeycutt, APC serve as special counsel. Opportune LLP is the financial advisor and Jefferies & Company is the investment banker. Kurtzman Carson Consultants LLC is the claims and notice agent. ATP disclosed assets of $3.6 billion and $3.5 billion of liabilities as of March 31, 2012. Debt includes $365 million on a first-lien loan where Credit Suisse AG serves as agent. There is $1.5 billion on second-lien notes with Bank of New York Mellon Trust Co. as agent. ATP's other debt includes $35 million on convertible notes and $23.4 million owing to third parties for their shares of production revenue. Trade suppliers have claims for $147 million, ATP said in a court filing. An official committee of unsecured creditors has been appointed in the case. Evan R. Fleck, Esq., at Milbank, Tweed, Hadley & McCloy, in New York, represents the Creditors Committee as counsel. A seven-member panel of equity security holders has also been appointed in the case. Kyung S. Lee, Esq., and Charles M. Rubio, Esq. of Diamond McCarthy LLP, in Houston, Texas, serve as counsel to the Equity Committee. * * * Judge Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, issued an order on June 26, 2014, converting ATP Oil & Gas Corporation's Chapter 11 case to one under Chapter 7 of the Bankruptcy Code. AVANTOR PERFORMANCE: Moody's Changes Ratings Outlook to Stable -------------------------------------------------------------- Moody's Investors Service affirmed the ratings of Avantor, Performance Materials Holdings S.A. and changed its outlook to stable from negative. Ratings affirmed include the B1 corporate family rating, the B1-PD probability of default rating, and the B1 rating on the first lien, senior secured credit facility, issued by Avantor's subsidiary Avantor Performance Materials Holdings, Inc. "The action reflects the favorable impact on operations and credit metrics resulting from improved execution by new senior management, combined with recent and significant debt reduction." according to Joseph Princiotta, VP-senior analyst at Moody's and lead analyst responsible for Avantor's ratings. Affirmations: Issuer: Avantor Performance Materials Holdings S.A. -- Corporate Family Rating (Local Currency), Affirmed B1 -- Probability of Default Rating, Affirmed B1-PD Outlook Actions: Issuer: Avantor Performance Materials Holdings S.A. -- Outlook, Changed To Stable From Negative Issuer: Avantor Performance Materials Holdings, Inc. -- Senior Secured Bank Credit Facility (Local Currency), Affirmed B1, LGD3 Issuer: Avantor Performance Materials Holdings, Inc. -- Outlook, Changed To Stable From Negative The B1 rating reflects the less cyclical nature of the company's branded and specialty revenue base, long lived customer relationships, stable top-line performance in recent years, a relatively new and impressive management team, and the prospect of positive free cash flow generation. Offsetting factors include the company's small scale, limited segment diversification, and significant customer concentration with distributors. However, this risk is mitigated by long term relationships and ongoing (and renewed) attention to customer service excellence. Ownership by private equity also limits the ratings, as this ownership and control introduces risk of future shifts in financial policies that might alter the credit profile. Adjusted debt (including standard adjustments for unfunded pensions of $13 million and capitalized rents of $19 million) is about $192 million, at year end 2014. Adjusted leverage for the year is approximately 3.3 times. However, due to the modest capital expenditures and absence of a dividend, cash flow metrics yield a stronger profile; RCF/TD was 20.5% and FCF/TD was 22.7% at year end 2014. Moody's expects these metrics to trend positively in 2015, mainly reflecting further debt reduction with free cash flow, and from management's actions. Following a period of operational and cash flow challenges, mainly attributed to difficulties with a troubled SAP ERP implementation in 2012 and 2013, a new senior management team has so far refocused efforts on execution, including the implementation of price increases in select customer accounts and markets, and on a comprehensive plan to streamline and optimize manufacturing and R&D. These actions are underway and are expected to span the next couple of years. The pricing actions are already evident in better margins, and the operational changes are expected to further improve margins and cash flow going forward. The relatively new senior management team includes Michael Stubblefield, CEO, who joined the company in May 2014 and has a strong background having served as Senior Expert in Chemicals with McKinsey & Co. and in a number of senior management positions with Celanese before that. The CFO, Richard Gaynor, joined Avantor in February 2014 and has an extensive background as a CFO with technology companies; Roland A.E. Heinrich, Ph.D., joined in July 2014 as the CCO and has an extensive background in life sciences; Bjorn Hofman, new EVP of Operations with extensive experience including SVP of operations at Merck KGaA; and the rest of the senior management team has long tenures with Avantor and extensive backgrounds in the life sciences industry, according to Moody's. Management's top priorities include optimization of the manufacturing footprint in the U.S. and Europe, and renewed focus on customer service, R&D, procurement, and pricing discipline. The manufacturing optimization efforts are expected to significantly increase capex in 2015 over 2014, but Moody's still expects free cash flow to be positive and to allow for further debt reduction in 2015. The company has seven manufacturing facilities located around the world, predominantly in the US, Poland, Mexico, and India. Optimization of the manufacturing footprint includes scaling back operations at Paris, Kentucky and transitioning certain operations and distribution to the Phillipsburg, New Jersey facility, where its current state-of-the-art cGMP packaging operation is being expanded. The Paris, Kentucky operations will be transitioned into a "Center of Excellence" for the electronic materials business, which is one of Avantor's less profitable business units. Optimization plans in Europe will focus on closing manufacturing and R&D facilities in Deventer, The Netherlands and transitioning the majority of production there to the Gliwice, Poland facility, which will be converted into a "Center of Excellence" for cGMP Pharma operations. Implementation is expected to span two years; closing of the Deventer facility is subject to Work Council and union approvals. Avantor manufactures and markets high-purity fine chemicals and advanced materials for a range of applications including pharmaceutical production, research and lab testing, and semi-conductors. Avantor's products are marketed under various registered or trademarked brand names such as J. T. Baker, Macron Fine Chemicals, Rankem, BeneSphera, and POCH. Incorporated in Luxembourg, Avantor's operational headquarters are located in Pennsylvania, USA. For the financial year-end (FYE) December 2014, Avantor's Moody's-adjusted revenues and EBITDA were approximately $455 million and $59 million, respectively and on an unaudited basis The company has approximately 1,400 employees producing over 12,000 products across four broad product categories (pharmaceutical, laboratory, microelectronic and diagnostic products). Avantor was formed in 2010 when funds managed or advised by private equity firm New Mountain Capital LLC (unrated) acquired Mallinckrodt Baker from Covidien International Finance S. A. (A3 Negative). Moody's understand that these funds own a controlling equity position in Avantor. In 2011, Avantor completed the strategic acquisitions of India-based RFCL Limited and Poland-based POCH S. Moody's considers Avantor's liquidity position to be adequate for its near term requirements. The company had a cash balance of $53.4 million as of FYE December 2014 and Moody's expect the company to generate positive free cash flow in 2015 and to further reduce debt. Internally generated cash flow and an undrawn $35 million revolving credit facility (less $3.1 million for letters of credit) should cover the company's ongoing basic cash needs, working capital needs, the step up in capital expenditures, and still allow for debt reduction. The stable outlook anticipates consistency in the company's financial policies that include a conservative balance sheet and allow for adequate cash flow metrics. The stable outlook also assumes that the manufacturing optimization program will be completed successfully and result in further improvements to operations and margins. Moody's would consider raising the rating if retained cash flow to debt were to improve to 25% and free cash flow to debt were to improve to 10%, both on a sustained basis. However, the rating is ultimately constrained by the private equity ownership and the risk that future policies might shift and allow for a more leveraged balance sheet and large dividends. Moody's would consider a downgrade if the current favorable trends were to reverse and impact credit metrics, which might emerge if the operational changes underway were to adversely impact volumes or relationships, or if the current price strategy were to result in loss of customers or aggressive actions by competitors. If retained cash flow to debt were to decline to below 12% on a sustained basis, and free cash flow were to deteriorate to neutral or near neutral, Moody's would consider changing the ratings. The principal methodology used in these ratings was Global Chemical Industry Rating Methodology published in December 2013. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. AZ HONKY TONK: Case Summary & 5 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: AZ Honky Tonk, LLC 3809 N. 197th Avenue Buckeye, AZ 85396 Case No.: 15-05497 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: May 6, 2015 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Hon. Paul Sala Debtor's Counsel: Dean M. Dinner, Esq. NUSSBAUM GILLIS & DINNER, P.C. 14850 N. Scottsdale Road, Suite 450 Scottsdale, AZ 85254 Tel: 480-609-0011 Fax: 480-609-0016 Email: ddinner@ngdlaw.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Eric Mansfield, member. A list of the Debtor's five largest unsecured creditors is available for free at http://bankrupt.com/misc/azb15-05497.pdf BELLISIO FOODS: Moody's Alters Outlook to Neg & Affirms B3 CFR -------------------------------------------------------------- Moody's Investors Service changed Bellisio Foods, Inc.'s rating outlook to negative from stable, downgraded the Probably of Default Rating to Caa1-PD from B3-PD and affirmed the company's Corporate Family Rating (CFR) at B3. The change in the Probability of Default Rating stems from a change in the company's capital structure due to a sale-leaseback transaction used to reduce debt. The change in the outlook to negative reflects Moody's view that near term profitability and liquidity have weakened, resulting in limited covenant headroom. Bellisio recently obtained an amendment in 1Q 2015 that allowed for an equity contribution and a sale/leaseback transaction that helped avoid a potential breach of financial covenants. The amendment also limits total revolver borrowings to $20 million until certain EBITDA targets are met, which weakens the company's liquidity. The following ratings have been affirmed: -- Corporate Family Rating (CFR) at B3; -- $30 million senior secured revolving credit facility due 2018 at B3 (LGD3); -- $279 million senior secured term loan due 2019 at B3 (LGD3); -- $20 million CAD senior secured term loan due 2019 at B3 (LGD3). The following ratings have been downgraded: -- Probability of Default Rating (PDR) to Caa1-PD from B3-PD; -- The outlook has been changed to negative from stable The B3 Corporate Family Rating reflects Bellisio's aggressive growth strategies, limited segment diversity, as well as its sizeable debt levels and thin operating margins, which result in relatively weak credit metrics and an adequate liquidity profile. Pro-forma for the sale-leaseback transaction, the company's leverage as measured by Moody's adjusted debt-to-EBITDA was approximately 5.5 times at December 28, 2014. Profitability has recently suffered from reduced manufacturing efficiency, rising input costs, and pricing pressure. The rating benefits from the company's well-established market position in the value segment of the frozen dinner and entree market and increasing presence in the premium segment. The B3 rating assumes that top-line growth and profitability will recover over the near to medium term based on new product introductions, improved manufacturing efficiency, and lower capital investments in 2015 following elevated one-time capital project spending in 2014. Bellisio is expected to maintain an adequate liquidity profile over the next 12 to 15 months, owing to the reduced availability on its reduced $26 million revolver and uncertainty related to covenant compliance over the next 12 months. Moody's assumes the company will maintain at least $10 million of liquidity at all times. The negative outlook reflects Moody's concern that profitability might remain pressured and liquidity could weaken further if the company's financial performance does not improve. Although not anticipated in the near term, the ratings could be upgraded if operating margins are in the mid-single digits and debt-to-EBITDA is sustained below 4.5 times. In addition, Moody's would expect the company to generate positive free cash flow on an annual basis. The ratings could be downgraded if Bellisio's profitability materially declines, resulting in a debt-to-EBITDA ratio sustained above 6.5 times, or if the company's liquidity profile deteriorates. Potential causes include further tightening of margins as a result of the company's inability to pass through commodity cost increases, integration challenges or implementing new product initiatives. The principal methodology used in this rating was the Global Packaged Goods published in June 2013. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Bellisio Foods, Inc. (Bellisio) produces more than 200 frozen entrees and snacks in the value segment under the Michelina's brand, including Authentico, Traditional, Lean Gourmet and Zap'Ems Gourmet. The company also has a more limited though increasing presence in the premium frozen entree arena with exclusive licenses to the Boston Market and Chili's brands. In addition, the company generates roughly 20% of its revenues from producing co-packed and private label frozen foods. Centre Partners Management, LLC and affiliates (Centre Partners) acquired Bellisio in December 2011. Revenues for the twelve months ending December 28, 2014 were $599 million. BERNARD L. MADOFF: Trustee Nets $11.1M in Clawback Deals -------------------------------------------------------- Law360 reported that the trustee managing the wind-down of Bernard L. Madoff Investment Securities LLC reached a settlement totaling $11.1 million with three groups of defendants alleged to have received more than $58 million in fictitious profits from the Ponzi brokerage. According to the report, Securities Investor Protection Act trustee Irving H. Picard docketed the proposed deal with defendants including the Pascucci family, the John A. Danzi family and the Mark A. Freeman family. 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. BETH ISRAEL: S&P Revises Outlook to Stable & Affirms 'B+' Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook to stable from negative and affirmed its 'B+' rating on Massachusetts Development Finance Agency's series 1998D and 2003E bonds issued for Beth Israel Deaconess Hospital–Plymouth Inc. (BID-Plymouth), formally known as Jordan Hospital. Effective Jan. 1, 2014, Jordan Hospital became part of BIDMC/CareGroup. BIDMC is now Jordan Hospital's sole corporate member and as part of its affiliation agreement changed its name to Beth Israel Deaconess Hospital–Plymouth Inc. "We revised the outlook to stable based on improved financial results through the interim period of fiscal 2015 -- the six month period ended March 31, 2015," said Standard & Poor's credit analyst Jennifer Soule. "The stable outlook reflects BID-Plymouth's revenue growth through the interim period of fiscal 2015, volume growth compared with the same period in the prior fiscal year, and financial performance that exceeded budget expectations despite the one-time impact of heavy snowfall in winter 2015," added Ms. Soule. S&P assessed BID-Plymouth's enterprise profile as vulnerable, given its small population base, highly competitive market for physicians and patient referrals, and heavy turnover in management in recent years. S&P also assessed its financial profile as vulnerable, despite its recent operating improvement, based on the longer trend of uneven financial performance, along with its light unrestricted reserves. The rating reflects S&P's assessment of BID-Plymouth's uneven financial operating performance for the past several years, decline in unrestricted cash reserves in recent years, and elevated debt levels, offset by growth in inpatient and some outpatient service lines through interim fiscal 2015, affiliation agreement with BIDMC and the long-term benefits S&P expects will derive from the relationship, and dominant market position with limited competition in an economically favorable service area. If BID-Plymouth falls short of budget for fiscal 2015 and debt service coverage under 1.5x, S&P could lower the rating further in the 'B' category. Any further reduction in unrestricted reserves or addition of debt, while not currently expected, could also prompt a lower rating. S&P could consider a positive outlook or a higher rating through the outlook period if BID-Plymouth's financial operating performance continues to improve, along with its balance sheet, and maintenance of its enterprise profile. BID-Plymouth operates a 155-bed acute-care hospital in Plymouth, Mass. A mortgage on certain property and gross receipts secure the bonds. BID-Plymouth, the hospital itself, is the only obligated entity; however, the hospital's parent company guarantees the bonds and there are several other subsidiaries in its system, including employed physicians. BID-Plymouth is not a party to any swap transactions and all its long-term debt is fixed rate. BID-Plymouth is not part of the CareGroup obligated group and under certain conditions BID-Plymouth could be sold or closed over the next four years. BIOPLAN USA: Moody's Affirms B3 Corp. Family Rating, Outlook Stable ------------------------------------------------------------------- Moody's Investors Service affirmed Bioplan USA, Inc.'s B3 Corporate Family Rating, B3-PD Probability of Default Rating and existing debt ratings. The rating outlook is stable. Issuer: Bioplan USA, Inc. -- Corporate Family Rating - B3 -- Probability of Default Rating - B3-PD -- $65 Million First-Lien Senior Secured Revolving Credit Facility (RCF) due 2019 - B2 (LGD-3) -- $283 Million (originally $375 Million) First-Lien Senior Secured Term Loan due 2021 - B2 (LGD-3) -- $105 Million (originally $145 Million) Second-Lien Senior Secured Term Loan due 2022 - Caa2 (LGD-5) The affirmation reflects the recent announcement that Bioplan USA intends to use proceeds from the sponsor's equity contribution to retire $130 million of debt ($90 million first-lien and $40 million second-lien) following the company's earnings shortfall in 2014. The equity injection is being made through the issuance of a convertible preferred equity certificate at the ultimate parent, Tripolis Holdings Sarl, which Moody's has given 100% equity treatment. Pro forma for the recapitalization, financial leverage is estimated at roughly 6.4x total debt to EBITDA (as of December 31, 2014, incorporating Moody's standard and non-standard adjustments). Though consistent with the 6.3x median for B3-rated global cross-industry peers, Moody's project leverage weakening to around 7x and negative free cash flow generation at yearend 2015 based on our revised estimates. Moody's forecast softer EBITDA this year relative to last year's lower-than-expected $69 million EBITDA (as reported), which stemmed from volume declines, lower margin product mix and cost overruns at operations in New Jersey and Brazil. After cost and revenue synergies are fully realized, Moody's project EBITDA improvement in 2016, with adjusted total debt to EBITDA reverting to the mid-6x area and positive free cash flow to adjusted debt of at least 5%. Bioplan USA's B3 CFR takes into consideration the high leverage relative to its small revenue base, somewhat high customer concentration, and the significant potential for revenue volatility and cyclicality stemming from possible consolidation among customers, shifts in customer product sales and marketing plans and aggressive competitor pricing behavior. The B3 rating also embeds Bioplan USA's majority ownership by a private equity sponsor as well as integration challenges that could pose risks associated with the process of merging two leading manufacturers with different, albeit complementary, operating strategies. Since there are no raw material supplier contracts, operating margins are somewhat vulnerable to the potential for cyclical increases in paper and laminate prices, which Moody's estimate account for about 30-40% of COGS. Around 70% of revenue is not under customer contract, but purchase order based, which means Bioplan USA must continually offer a meaningful value proposition associated with product innovation, quality, service and timely fulfillment of clients' packaging design needs to offset competitive pricing pressures, particularly on mass market products, to retain customers. The business plan relies chiefly on internal growth from new products and markets. These concerns are mitigated by Bioplan USA's position as the world's largest provider of sampling and packaging services for the fragrance, beauty and personal care industries with a global manufacturing footprint. The combined company is the clear global market leader, enjoying the number one position in magazine inserts, catalog inserts and every other fragrance and cosmetic sampling market category in which it competes. With a strong market presence for over four decades, Bioplan USA benefits from an extensive product portfolio that provides one-stop-shopping solutions, solid R&D (about 1-2% of sales) resulting in a reputation for new product innovation and patented and proprietary technologies, as well as loyal customer relationships that are long-standing. The predecessor companies had product portfolios that are complementary since Arcade primarily develops flat-based sampling packages such as ScentStrip, BeautiPod and BeautiSeal, while Bioplan commonly manufactures three-dimensional unit-dose turnkey packages like sachets, vials and tubes. Operating strategies are also well-balanced with Arcade historically driving revenue via direct marketing and media exposure with a strong salesforce that maintains strong client contacts; Bioplan's strengths include its manufacturing know-how and key purchasing manager contacts that rely on point-of-sale (POS) marketing. The combined company has good synergy potential with revenue and cost synergies estimated to yield $9.8 million of positive net run-rate cash flow by 2016. Nonetheless, Moody's believe it will take time to effectively blend different values and operating practices into a unified corporate strategy, which could give rise to some management distraction during the remaining 4-10 month integration period and negatively influence the company's go-to-market approach. Since only 30% of revenue is tied to customer contracts (which are generally short-term in nature with a few incorporating limited immediate cost pass-through provisions), most of the business is sold at spot prices, which gives Bioplan USA the flexibility to promptly adjust pricing based on changes in raw material costs and market conditions. Overall pricing has remained relatively stable, with instances of aggressive rivalry pricing, which Moody's expect to continue. The company has the ability to command premium prices for differentiated products and leverage volume and manufacturing scale efficiencies to implement a price taker approach for mass market products to remain competitive. Bioplan USA has a meaningful international presence (roughly 53% of revenue), unique among its competitors, that adds geographic diversification and positions it to capitalize on an increasingly multi-national customer base and strong demand expected in Latin America, Asia-Pacific and Eastern Europe. Further supporting the B3 rating are the industry's favorable growth characteristics, growing importance of sampling in customer marketing plans and stable-to-positive advertising trends for upscale fashion magazines. Positive considerations also include the combined entity's vertically integrated and low-cost manufacturing base, "asset-lite" operating model (capital expenditures represent about 3-4% of revenue) and history of stable operating profitability and free cash flow generation. Moody's expect Bioplan USA will maintain adequate liquidity over the rating horizon with cash balances of at least $10 million, negative free cash flow generation in 2015 turning positive in 2016, and at least $40 million available under its $65 million RCF. Moody's project limited acquisition activity and assume no dividends during the integration period. The stable rating outlook reflects our expectation that the company will successfully execute its integration and operating plan, experience relatively stable customer relationships, exhibit pricing and EBITDA margin stability driven by clients' steady sampling spend and maintain adequate liquidity. What Could Change the Rating -- Up: Ratings could be upgraded if Bioplan USA successfully integrates the merged entities, improves debt protection measures, maintains good liquidity and exhibits prudent financial policies. Specifically, Bioplan USA could experience upward ratings pressure if EBITDA margins remain stable amid an expanding revenue base resulting in sustained reduction in total debt to EBITDA below 6x (Moody's adjusted), free cash flow to adjusted debt of at least 5% and adjusted EBITDA interest coverage above 3x. What Could Change the Rating -- Down: Ratings could be downgraded if there is deterioration in credit metrics or the operating and competitive environment (market share or price erosion) or if the company fails to generate positive free cash flow. Specifically, the rating could be downgraded if free cash flow is expected to remain negative over the rating horizon, total debt to EBITDA is sustained above 7.5x (Moody's adjusted), or EBITDA interest coverage declines to 2x or lower. Margin erosion resulting in EBITDA deterioration or diminished cash flow could also lead to a downgrade. Sizable dividends or intensified acquisition activity leading to negative free cash flow, increased financial leverage or reduced liquidity could also pressure the ratings. The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Bioplan USA, Inc., headquartered in New York, NY, through its direct parent, Tripolis Holdings Sarl, is a leading global provider of marketing, packaging and interactive sampling products to the fragrance, beauty, cosmetic and personal care industries. Tripolis Holdings Sarl is a Luxembourg private limited liability company that was created to merge New York-based Arcade Marketing, a packaging supplier of multi-sensory and interactive sampling systems for the fragrance, beauty and personal care industries, with Bioplan, a Paris-based provider of packaging solutions for the cosmetic and fragrance industries. Following the September 2014 merger, Oaktree owns 75% of the combined entity, while KKR, DLJ and others hold the remaining 25%. Pro forma for the combination, revenue totaled approximately $417 million for the twelve months ended December 31, 2014. BLOCK COMMUNICATIONS: Moody's Affirms Ba3 CFR, Outlook Stable ------------------------------------------------------------- Moody's Investors Service affirmed the Ba3 Corporate Family Rating and Ba3-PD probability of default rating of Block Communications, Inc. The completed acquisitions of Metrocast and Line System Inc. in November, 2014 have reduced exposure to newspaper operations. Notwithstanding the negative impact of secular and cyclical pressure in its newspaper segment, Block's cable and telecom operations continue to perform well and, combined with good liquidity, have enabled the company to manage through challenging economic conditions while keeping credit metrics within its Ba3 rating. The rating outlook remains stable. Issuer: Block Communications, Inc. -- Corporate Family Rating: Affirmed Ba3 -- Probability of Default Rating: Affirmed Ba3-PD -- $225 million 1st Lien Senior Secured Term Loan due 2021: Affirmed Ba1, LGD2 -- $100 million 1st Lien Senior Secured Revolver due 2016: Affirmed Ba1, LGD2 -- $250 million of 7.25% Senior Notes due 2020: Affirmed B1, LGD5 -- Outlook remains Stable The Ba3 corporate family rating incorporates Block's elevated debt-to-EBITDA of approximately 5.0x for FYE2014 (including Moody's standard adjustments) and pro forma for transactions completed in 2014 with improving low to mid-single digit percentage free cash flow-to-debt ratios. Since Moody's assigned ratings in October 2014, operating performance across the company's segments are in line with our expectations; however, reported unfunded pension liabilities grew to $191 million from $114 million reflecting the decrease in applicable discount rates and the use of updated mortality tables. Consistent EBITDA generation from cable and telecom operations support the Ba3 CFR, despite EBITDA losses from the newspaper segment and EBITDA margins below industry peers for television broadcast operations. Block has a track record of maintaining acceptable leverage, and Moody's expect the company to apply free cash flow to reduce debt balances and position the company more strongly in the Ba3 rating. The completed acquisitions of cable (MetroCast for $200 million) and telecom businesses (Line System Inc. for $48 million) add scale as well as geographic diversity and reduces exposure to newspaper operations which continue to weigh on debt ratings. Newspaper revenue has declined in line with its peer group contributing to increasing annual EBITDA losses for the publishing segment since 2011. Looking forward, Moody's believe management will be able to meaningfully reduce losses from newspaper operations due to announced restructurings which will result in headcount reductions and to more efficient production from its new printing press. Secular changes negatively affecting traditional print media pressure the company's newspaper segment revenue and free cash flow. Liquidity is expected to be good with at least $60 million of revolver availability, and no significant debt maturities until December 2016 when the revolving credit facility expires ($30 million outstanding at FYE 2014). The stable outlook reflects our expectation that, absent cable plant upgrades or debt funded acquisitions, debt-to-EBITDA will improve to 4.5x (including Moody's standard adjustments) or better with low to mid-single digit percentage free cash flow-to-debt ratios improving as growth in combined EBITDA from cable, telecommunications, and broadcast segments offsets losses from newspaper operations. The outlook incorporates expectations for good assimilation of recent acquisitions, some progress in stabilizing recent subscriber losses in Toledo, and realization of substantially reduced costs for newspaper publishing operations. The outlook does not incorporate significant shareholder distributions or another significant debt financed acquisition. Ratings could be downgraded if Moody's believe the company would not be able to generate positive free cash flow in the absence of extraordinary capital spending or investment, or if there is deterioration in the performance of cable or telecommunications segments. Inability to realize expected cost reductions for the newspaper segment or Moody's expectation that the company is not progressing to improve debt-to-EBITDA ratios to 4.5x or better (including Moody's standard adjustments) could also lead to a downgrade. The company's lack of national or regional scale and newspaper exposure constrain ratings; however, ratings could be upgraded if newspaper revenue stabilizes and EBITDA losses are eliminated with consolidated debt-to-EBITDA ratios being sustained comfortably below 3.0x (including Moody's standard adjustments) and free cash flow-to-debt ratios of 10% or more. Moody's would also need to be assured that the company will operate in a financially prudent manner consistent with a higher rating. The principal methodology used in these ratings was Global Pay Television - Cable and Direct-to-Home Satellite Operators published in April 2013. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. A privately held diversified media company founded in 1900, Block Communications, Inc. has operations in cable television and telecommunications (roughly 68% of FYE 2014 revenue pro forma for announced transactions), newspaper publishing (23%), and television broadcasting (9%). The company's cable operations serve the greater Toledo, OH metropolitan area including Michigan suburbs, the northern half of Mississippi through its recent MetroCast acquisition, and Erie County in Ohio. Block operates two daily metropolitan newspapers in Pittsburgh, PA and Toledo, OH, as well as television stations in Lima, OH, Louisville, KY, Boise, ID, and Decatur, IL. The company maintains its headquarters in Toledo with pro forma revenue of approximately $559 million for FYE 2014. BPZ RESOURCES: Remains in Talks With Convertible Bondholders ------------------------------------------------------------ BPZ Resources, Inc. said in a regulatory filing with the Securities and Exchange Commission that it continues to engage in discussions with certain holders of debt under the Company's outstanding convertible notes due March 1, 2015 and October 1, 2017 regarding, among other things, the potential terms under which one or both could be restructured to provide a capital structure which would allow the Company to continue developing its oil and gas assets and post-petition debtor-in-possession (DIP) financing. On April 23, 2015, a group of convertible note holders presented a proposed DIP financing term sheet to the Company that was non-binding in nature. The Company has rejected the proposed DIP financing offer, and the Company and its convertible note holders continue to discuss potential financing opportunities. In connection with these discussions, the Company provided unaudited financial projections and other information to certain third parties that entered into non-disclosure agreements with the Company, including certain holders of the Company's convertible notes and potential investors and their respective advisors and representatives. The projections and other information, were prepared solely in connection with discussions with debt holders and potential investors and are included only because they were provided to such debt holders and potential investors. The projections and other information were not prepared with a view toward public disclosure or compliance with the published guidelines of the Securities and Exchange Commission or the guidelines established by the American Institute of Certified Public Accountants regarding projections or forecasts. The projections do not purport to present financial condition in accordance with accounting principles generally accepted in the United States. The Company's independent accountants have not examined, compiled or otherwise applied procedures to the projections and, accordingly, do not express an opinion or any other form of assurance with respect to the projections. The projection data was prepared for internal use, capital budgeting and other management decisions and are subjective in many respects and thus subject to interpretation. While they may be presented with numeric specificity, the projections reflect numerous assumptions made by management of the Company with respect to financial condition, business and industry performance, general economic, market and financial conditions, and other matters, all of which are difficult to predict, and many of which are beyond the Company's control. Accordingly, there can be no assurance that the assumptions made in preparing the projections will prove accurate. In addition, certain information in the presentation materials may be based upon data provided by the Company but was created by advisors retained by potential third party lenders. The methodology, analysis and interpretation made by those retained advisors with respect to the data is not known to the Company. The Company had no input in the creation or development of the information created by advisors for potential third party lenders, nor did the Company provide any oversight in its creation or quality control. It is expected that there will be differences between actual and any projected results, and the differences may be material, due to the occurrence of unforeseen events occurring subsequent to the preparation of the projections. The inclusion of projections herein should not be regarded as an indication that the Company or its affiliates or representatives consider the projections to be a reliable prediction of future events, and the projections should not be relied upon as such. Neither the Company nor any of its affiliates or representatives has made or makes any representation to any person regarding the ultimate performance of the Company compared to the projections, and none of them undertakes any obligation to publicly update the projections to reflect circumstances existing after the date when the projections were made or to reflect the occurrence of future events, even in the event that any or all of the assumptions underlying the projections are shown to be in error. A copy of the BPZ Monthly Cash Model is available at http://is.gd/r9sF1o A copy of the BPZ Monthly Accrual Forecast is available at http://is.gd/8TyVMo About BPZ Resources BPZ Energy -- http://www.bpzenergy.com/-- which trades as BPZ Resources, Inc., under ticker symbol BPZ on the New York Stock Exchange and the Bolsa de Valores in Lima, is an independent oil and gas exploration and production company which has license contracts covering 1.9 million net acres in offshore and onshore Peru. BPZ Resources maintains an office in Victoria, Texas, and through its subsidiaries maintains offices in Lima and Tumbes, Peru, and Quito, Ecuador. BPZ Resources sought Chapter 11 protection (Bankr. S.D. Tex. Case No. 15-60016) in Victoria, Texas, on March 9, 2015. The case is pending before the Honorable David R. Jones. The Debtor has tapped Stroock & Stroock & Lavan LLP as bankruptcy counsel, Hawash Meade Gaston Neese & Cicack LLP, as local Texas counsel, Houlihan Lokey Capital, Inc., as investment banker, Baker Hostetler, as the audit committee's special counsel; and Kurtzman Carson Consultants as claims and noticing agent. The Debtor disclosed total assets of $364 million and debt of $275 million. BREWERY LOFT PARTNERS: Aqualand Development Buys Dormant Lone Star ------------------------------------------------------------------ The San Antonio Express-News reports that Aqualand Development has acquired the dormant Lone Star Brewery from B. Knightly Development & Construction, who created the bankrupt partnership Brewery Loft Partners LP to develop Lone Star. James Aldridge, writing for San Antonio Business Journal, relates that Aqualand previously had the brewery under contract but did not consummate the deal. The report adds that the purchase of the property did not close until April 2015. San Antonio, Texas-based Brewery Loft Partners, L.P., aka Lone Star Brewery, field for Chapter 11 bankruptcy protection (Bankr. W.D. Tex. Case No. 10-50784) on March 1, 2010, estimating its assets and liabilities at between $1 million and $10 million each. The petition was signed by Mark F. Tolley. Pedro V. Hernandez, Jr., Esq., who has an office in San Antonio, Texas, serves as the Company's bankruptcy counsel. Chief Bankruptcy Judge Ronald B. King presides over the case. According to a report by James Aldridge at San Antonio Business Journal, the Company filed for bankruptcy on the heels of a foreclosure notice. C. WONDER: Sued by Workers Over WARN Act Violations --------------------------------------------------- Law360 reported that C. Wonder LLC was slapped with an adversary class action in New Jersey bankruptcy court, accusing the former clothing and accessories purveyor of failing to give its employees 60 days' advance notice of termination before shuttering its doors. The suit alleges that the employees of the plant were entitled to 60-days' notice under the WARN act, and 90-days' notice under New York's labor laws, but none of the C. Wonder plant employees received advance notice prior to their Jan. 5 terminations, the report said. The retailer didn't provide the employees with their respective wages, salary, commissions, bonuses, accrued holiday pay and accrued vacation for 60 days following their respective terminations, and it also didn't make 401(k) contributions and provide health insurance coverage and other benefits under ERISA for the appropriate amount of time, the report added. The suit is Carter et al v. C. Wonder LLC, Adv. Pro. ___ (Bankr. D.N.J.). About C. Wonder Founded by J. Christopher Burch in 2010, C. Wonder is a specialty retailer with retail stores in the United States. With headquarters in New York, the company sells women's clothing, jewelry, shoes, handbags and other accessories as well as select home goods under the C. Wonder brand. The Company maintains two distribution centers in New Jersey. The Company opened its first retail store in New York in 2011. By 2014, the Company had expanded its operations to include 29 locations across 13 states including its flagship location in Soho, New York. Amid mounting losses, C. Wonder closed 16 of its retail stores by the end of 2014. C. Wonder closed 9 additional stores in January 2015. As of the bankruptcy filing, C. Wonder had four retail stores in the U.S. (Soho, Flat Iron, Time Warner Center and Manhasset). C. Wonder LLC and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No. 15-11127) in Trenton, New Jersey on Jan. 22, 2015. The cases are assigned to Judge Michael B. Kaplan. The Debtors tapped Cole, Schotz, Meisel, Forman & Leonard, P.A., as counsel, and Marotta, Gund, Budd & Dzera, LLC, as crisis management services provider. As of the Filing Date, the Debtors had assets with a book value of $43.7 million and liabilities of $61.0 million. The U.S. Trustee for Region 3 appointed three members to the Official Committee of Unsecured Creditors. The Creditors' Committee has tapped Porzio, Bromberg & Newman, P.C., as counsel, and CBIZ Accounting, Tax & Advisory of New York, LLC, as financial advisors. CHINA MEDICAL: Paul Weiss Fights Liquidator's Bid for Documents --------------------------------------------------------------- Law360 reported that Paul Weiss Rifkind Wharton & Garrison LLP told a New York federal judge that the liquidator probing an alleged $355 million fraud at China Medical Technologies Inc. incorrectly cited SEC v. Carrillo Huettel LLP in an attempt to obtain privileged documents concerning the firm's representation of the company's audit committee. According to the report, the firm slammed liquidator Kenneth Krys' citation of an April 8 magistrate order in the Carrillo Huettel suit, which deals with whether privilege can be asserted on behalf of a defunct corporation. As previously reported by The Troubled Company Reporter, Paul Weiss derided an attempt by Mr. Krys 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. Mr. 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 CHINA NATURAL: Class Plaintiffs Can Proceed Despite Ch. 7 --------------------------------------------------------- Law360 reported that a Delaware securities fraud class action against Chapter 7 debtor China Natural Gas Inc. may proceed to the extent that a $15 million insurance policy can fund it, a New York bankruptcy judge ruled, lifting a normally ironclad automatic bankruptcy litigation stay. According to the report, U.S. Bankruptcy Judge Sean H. Lane issued the order -- related to the XL Insurance Company Ltd. directors' and officers' liability policy -- after class representatives Robert Skeway and Raimundo Jo-Fung sought to lift the stay in pursuit of damages from the debtor. The case is Skeway et al. v. China Natural Gas Inc et al., Case Number 1:10-cv-00728 (D. Del.). About China Natural Headquartered in Xi'an, Shaanxi Province, P.R.C., China Natural Gas, Inc., was incorporated in the State of Delaware on March 31, 1999. The Company through its wholly owned subsidiaries and variable interest entity, Xi'an Xilan Natural Gas Co., Ltd., and subsidiaries of its VIE, which are located in Hong Kong, Shaanxi Province, Henan Province and Hubei Province in the People's Republic of China ("PRC"), engages in sales and distribution of natural gas and gasoline to commercial, industrial and residential customers through fueling stations and pipelines, construction of pipeline networks, installation of natural gas fittings and parts for end-users, and conversions of gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles at 0ptmobile conversion sites. On Feb. 8, 2013, an involuntary petition for bankruptcy was filed against the Company by three of the Company's creditors, Abax Lotus Ltd., Abax Nai Xin A Ltd., and Lake Street Fund LP (Bankr. S.D.N.Y. Case No. 13-10419). The Petitioners claimed that they have debts totaling $42,218,956.88 as a result of the Company's failure to make payments on the 5% Guaranteed Senior Notes issued in 2008. Adam P. Strochak, Esq., at Weil, Gotshal & Manges, LLP, in Washington, D.C., represents the Petitioners as counsel. China Natural Gas, Inc., sought dismissal of the involuntary petition but in July 2013, it consented to the entry of an order for relief under Chapter 11 of the U.S. Code. China Natural Gas employed Warren Street Global Inc. and designated J. Gregg Pritchard as chief restructuring officer. It employed as bankruptcy counsel Schiff Hardin LLP's Louis T. DeLucia, Esq., and Alyson M. Fiedler, Esq. As of Sept. 30, 2013, the Company had consolidated assets of $307,496,948 and liabilities of $87,714,323. COMMUNITY HEALTH: S&P Assigns 'BB' Rating on $1-Bil. Term Loan G ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' rating to Community Health Systems Inc.'s proposed new term loans, to be issued as a $1 billion term loan G and a $3.5 billion term loan H. The recovery rating on this debt is '1', indicating S&P's expectation for very high (90% to 100%) recovery for lenders in the event of default. All other ratings on Community, including S&P's 'B+' corporate credit rating, are unaffected by this announcement. The ratings on these term loans are the same as S&P's rating on Community's existing term loan D, which it refinances. The transaction modestly reduces Community's interest expense. S&P's 'B+' corporate credit rating and stable outlook on Community continue to reflect the company's expanded scale following last year's acquisition of Health Management Associates and its diversified hospital portfolio, as well as significant exposure to reimbursement risk and our view that Community's nonurban markets are likely to experience slower volume growth relative to urban markets. These factors are incorporated into S&P's assessment of a "fair" business risk profile. S&P's ratings also reflect its expectation that leverage will decline to the mid-5x range by the end of 2015 and that funds from operations to debt will be around 12% this year, consistent with the stronger end of a "highly leveraged" financial risk profile. RATINGS LIST Community Health Systems Inc. Corporate Credit Rating B+/Stable/-- New Rating Community Health Systems Inc. $1 Bil Term Loan G BB Recovery Rating 1 $3.5 Bil. Term Loan H BB Recovery Rating 1 CONSTELLIS HOLDINGS: Moody's Rates New $450MM 2nd Lien Notes 'B3' ----------------------------------------------------------------- Moody's Investors Service assigned a B3 rating to the planned $450 million, five year second lien notes of Constellis Holdings, LLC, and affirmed all other ratings, including the B3 Corporate Family Rating. The rating outlook is stable. Proceeds of the notes along with borrowings under a new $125 million asset-based revolving credit facility (unrated) will fund the pending acquisition of Olive Group Holdings Ltd. ("Olive"), a $42 million dividend, and $50 million that Olive's owners will use to purchase equity from Constellis' owners. Constellis was formerly known as Academi Holdings LLC, and one of its predecessor companies was known as Blackwater. Assignments: Issuer: Constellis Holdings, LLC -- Senior Secured Regular Bond/Debenture, Assigned B3 (LGD4) Affirmations: Issuer: Constellis Holdings, LLC -- Probability of Default Rating, Affirmed B3-PD -- Corporate Family Rating, Affirmed B3 -- Senior Secured 1st lien Bank Credit Facilities, Affirmed B2 (LGD3) -- Senior Secured 2nd lien Bank Credit Facility, Affirmed Caa2 (LGD5) Outlook Actions: Issuer: Constellis Holdings, LLC -- Outlook, Remains Stable Moody's calculates pro-forma debt/EBITDA and EBITDA/interest at the low 6x and low 2x levels, respectively (after Moody's standard adjustments) as of the fiscal year ending December 2014, based on audited financial statements and taking into account the additional debt and Constellis' acquisitions over the year. Estimating metrics is made difficult by the wide number of cost actions undertaken/planned, and the only partial year contribution of acquisitions during 2014. These metrics compare somewhat favorably to many defense services contractors also rated at the B3 CFR. Nonetheless, operating cash flow in 2014 was modest despite the large tax refunds. Funding the Olive acquisition will increase financial leverage somewhat, and there is still limited visibility into Constellis' cashflow. Further, Moody's estimates that the pending dividend equates to more than a year's worth of prospective free cash flow and the Constellis growth strategy will continue to emphasize acquisitions. The high concentration on the US Department of State's (DoS) Worldwide Protective Services (WPS) contract, which expires in October 2015, represents a rating constraint since the contract will make up a third of revenues pro forma for the Olive acquisition. At present, the $17 million of near-term debt amortization scheduled seem high versus reported funds from operation. Liquidity should improve given the lack of scheduled debt amortizations going forward and expectation of free cash flow. The stable rating outlook benefits from expectations of steady profits from rising demand as a result of ongoing conflicts throughout geographic regions where Constellis and Olive operate (i.e. Middle East, North Africa). Increased security needs for the US Department of State's diplomatic activity as well as for energy sector customers favors the demand setting. Potential for cost actions to raise cash flow generation also factor into the outlook. Upward rating movement would depend on better intermediate term revenue visibility, which is unlikely to develop until after the WPS successor contract outcome is determined. (WPS task orders can endure beyond that contract expiration date.) Adequate liquidity, expectation of FFO/debt greater than 10% with annual FCF greater than $25 million would likely accompany an upgrade. Downward rating pressure would result from backlog declines, weaker liquidity or low free cash flow. The principal methodology used in these ratings was Global Aerospace and Defense Industry published in April 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. Constellis is a global provider of training and security services focused on counter terrorism, force protection, law enforcement and security operations. From 2010 to October 2014 the company's name was Academi Holdings, LLC. Before its 2010 ownership change, the company had been named Xe Services and Blackwater Worldwide. Pro forma for the pending acquisition of Olive, revenues in 2014 would have been approximately $1 billion. The company is majority-owned by Forte Capital and Manhattan Partners. CONSTELLIS HOLDINGS: S&P Affirms 'B' CCR, Outlook Remains Stable ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it has affirmed its 'B' corporate credit rating on U.S.-based Constellis Holdings LLC. The outlook remains stable. At the same time, S&P assigned its 'B' issue-level rating and '4' recovery rating to the company's proposed $450 million second-lien secured notes. The '4' recovery rating indicates S&P's expectation of average (30%-50%; higher end of the range) recovery in a simulated default scenario. "Our affirmation on Constellis Holdings LLC reflects our expectation that meaningful earnings growth, largely from the realization of cost reduction efforts implemented over the past year, and debt reduction will restore the company's credit ratios to levels that more appropriate for the rating in 2016, including a debt-to-EBITDA metric between 3.5x and 4.0x from about 5x on a pro-forma basis (including a full year of earnings from acquisitions)," said Standard & Poor's credit analyst Chris Mooney. "Constellis plans to use the proceeds from its new debt to acquire Olive Group Ltd., refinance its existing debt, pay its sponsors a moderate dividend, and pay fees and expenses associated with the transactions." The stable outlook reflects S&P's expectation that Constellis' credit metrics will likely improve from their elevated levels, with debt-to-EBITDA declining to around 3.5x-4.0x in 2016 from about 5x on a pro forma basis in 2014 following the proposed transaction, due to the company's cost reduction efforts, moderate sales growth, and debt reduction. Still, S&P would not revise its financial risk profile assessment on the company under the current ownership structure--even if the company's credit metrics could temporarily support a better assessment. S&P could lower the rating if Constellis' debt-to-EBITDA metric does not improve as expected and remains above 5x by the end of 2016. This would most likely be caused by a shift to a more aggressive financial policy, with increased debt to finance a dividend or acquisition. In addition, operating challenges, including lower margins on future contracts or the loss of significant contracts, coupled with less-than-expected debt reduction could also lead S&P to downgrade the company. The inherent risks in Constellis' business, its private-equity ownership, and the potential for a debt-financed dividend or other transaction that could significantly increase its leverage make it unlikely that S&P would upgrade the company under its current ownership. CRESTWOOD MIDSTREAM: S&P Affirms 'BB' CCR, Outlook Stable --------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'BB' corporate credit and senior unsecured debt ratings on Crestwood Midstream Partners L.P. The outlook is stable. The '4' recovery rating is unchanged, and reflects S&P's expectation for average (30% to 50%; lower half of the range) recovery if a payment default occurs. "We believe the announced transaction is neutral for credit quality. It simplifies the organizational structure by creating a single publicly traded partnership and should improve the partnership's cost of capital," said Standard & Poor's credit analyst Mike Llanos. At the same time, leverage will remain elevated over the next few years, which limits any rating improvement. Crestwood's "fair" business risk profile reflects its still modest scale and diversity in addition to the strong contract profile, and large percentage (more than 90%) of fee-based cash flows, albeit with some level of volume exposure. Take-or-pay contracts back roughly 50% of total margin, while the remainder could have some variability, depending on industry conditions. S&P has revised Crestwood's financial risk profile to "aggressive", from "significant", reflecting S&P's expectation of pro forma leverage of 4x to 4.5x. The stable outlook reflects S&P's expectation that Crestwood will have adequate liquidity and successfully simplify the organizational structure while maintaining adjusted debt/EBITDA of 4x to 4.5x for the next few years. CROWN MEDIA: Reports $18.5 Million Net Income in First Quarter -------------------------------------------------------------- Crown Media Holdings, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $18.5 million on $101 million of net total revenue for the three months ended March 31, 2015, compared to net income of $12.03 million on $90.7 million of net total revenue for the same period a year ago. As of March 31, 2015, the Company had $1.05 billion in total assets, $541 million in total liabilities, and $512 million in total stockholders' equity. "Differentiation of our channels combined with strong ratings performance from our original programming during the first quarter of 2015 resulted in double-digit growth in revenue and Adjusted EBITDA. The Company leveraged the ratings momentum from the holidays and launched Countdown to Valentine's Day in 2015 to drive our bottom line. Forging ahead to second quarter, we expect this momentum to continue with the return of our original primetime series, When Calls the Heart, on Hallmark Channel and five mystery wheels on Hallmark Movies & Mysteries," said Bill Abbott, president and CEO of Crown Media Family Networks. A copy of the Form 10-Q is available for free at: http://is.gd/SSwzRZ About Crown Media Crown Media Holdings, Inc., is the corporate parent for the portfolio of cable networks and related businesses under Crown Media Family Networks. The company currently operates and distributes Hallmark Channel in both high definition (HD) and standard definition (SD) to 86 million subscribers in the U.S. Hallmark Channel is the nation's leading destination for quality family programming with an ambitious slate of TV movies and specials; original scripted series, including Cedar Cove, When Calls the Heart, and Signed, Sealed, Delivered; as well as some of television's most beloved sitcoms and series. Hallmark Channel's sibling network, Hallmark Movie Channel, is available in 54 million homes in HD and SD. One of America's fastest-growing cable networks, Hallmark Movie Channel provides family-friendly original movies with a mix of original films, classic theatrical releases, and presentations from the acclaimed Hallmark Hall of Fame library. In addition, Crown Media Family Networks includes the online offerings of HallmarkChannel.com and HallmarkMovieChannel.com. Crown Media reported net income attributable to common stockholders of $67.7 million on $378 million of net total revenue for the year ended Dec. 31, 2013, as compared with net income attributable to common stockholders of $107.4 million on $350 million of net total revenue for the year ended Dec. 31, 2012. Bankruptcy Warning "Our senior secured credit facilities and the indenture governing the Notes contain a number of covenants that impose significant operating and financial restrictions on us which, among other things, limit our ability to do the following: * incur additional debt or issue certain preferred shares; * pay dividends on or make distributions in respect of our capital stock or make other restricted payments; * make certain payments on debt that is subordinated or secured on a junior basis; * make certain investments; * sell certain assets; * create liens on certain assets; * consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; * enter into certain transactions with our affiliates; and * designate our subsidiaries as unrestricted subsidiaries. Any of these restrictions could limit our ability to plan for or react to market conditions and could otherwise restrict corporate activities. Any failure to comply with these covenants could result in a default under our senior secured credit facilities and the indenture governing the Notes. Upon a default, unless waived, the lenders under our senior secured credit facilities could elect to terminate their commitments, cease making further loans, foreclose on our assets pledged to such lenders to secure our obligations under the senior secured credit facilities and force us into bankruptcy or liquidation. Holders of the Notes would also have the ability ultimately to force us into bankruptcy or liquidation, subject to the indenture governing the Notes," the Company said in the Annual Report for the year ended Dec. 31, 2013. * * * As reported by the TCR on May 28, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Studio City, Calif.-based cable network company Crown Media Holdings Inc. to 'B+' from 'B'. "The upgrade reflects Crown Media's recent operating performance, which achieved higher EBITDA and lower leverage than our expectations," said Standard & Poor's credit analyst Deborah Kinzer. As reported by the TCR on July 2, 2014, Moody's Investors Service upgraded the Corporate Family Rating (CFR) of Crown Media Holdings, Inc. to B1 from B2, its Probability of Default Rating to B1-PD from B2-PD, and instrument ratings as detailed below. The outlook is stable. The upgrade incorporates evidence of traction with the original programming strategy and better than expected performance, which, combined with debt reduction, improved the credit profile. DBSI INC: Wavetronix Intervenors Sue Trust in Control Struggle -------------------------------------------------------------- Law360 reported that 28 shareholders of Wavetronix Inc. filed an intervenor complaint saying that a trustee for entities of bankrupt real estate firm DBSI Inc., whose president and other officers were convicted of securities fraud, has taken improper control of the subsidiary without proper consent and in violation of their operating agreement. According to the report, the shareholders say that James Zazzali has, in his capacity as trustee for DBSI entities, taken actions that breach the agreement among the shareholders of Wavetronix, which was once majority owned by Stellar Technologies. Law360 also reported that 23 states have asked an Idaho federal judge to stay a bankruptcy suit filed by DBSI's trustee pending their appeal of a judge's decision that the government cannot assert sovereign immunity to dodge a claim filed by the DBSI trustee seeking the return of the bulk of $17 million in taxes. The case is Zazzali v. Swenson et al., Case No. 1:13-cv-00086 (D. Idaho). About DBSI Inc. Headquartered in Meridian, Idaho, DBSI Inc. and its affiliates were engaged in numerous commercial real estate and non-real estate projects and businesses. On Nov. 10, 2008, and other subsequent dates, DBSI and 180 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-12687). DBSI estimated assets and debts between $100 million and $500 million as of the Chapter 11 filing. Lawyers at Young Conaway Stargatt & Taylor LLP represent the Debtors as counsel. The Official Committee of Unsecured Creditors tapped Greenberg Traurig, LLP, as its bankruptcy counsel. Kurtzman Carson Consultants LLC is the Debtors' notice claims and balloting agent. Joshua Hochberg, a former head of the Justice Department fraud unit, served as an Examiner and called the seller and servicer of fractional interests in commercial real estate an "elaborate shell game" that "consistently operated at a loss" in his report released in October 2009. McKenna Long & Aldridge LLP was counsel to the Examiner. On Sept. 11, 2009, the Honorable Peter J. Walsh entered an Order appointing James R. Zazzali as Chapter 11 trustee for the Debtors' estates. On Oct. 26, 2010, the trustee won confirmation of the Second Amended Joint Chapter 11 Plan of Liquidation for DBSI, paving the way for it to pay creditors and avoid years of expensive litigation over its complex web of affiliates. The plan, which was declared effective Oct. 29, 2010, was co-proposed by DBSI's unsecured creditors committee. Pursuant to the confirmed Chapter 11 plan, the DBSI Real Estate Liquidating Trust was established as of the effective date and certain of the Debtors' assets, including the Debtors' ownership interest in Florissant Market Place was transferred to the RE Trust. Mr. Zazzali and Conrad Myers were appointed as the post- confirmation trustees. Messrs. Zazzali and Myers are represented by lawyers at Blank Rime LLP and Gibbons P.C. DELCO OIL: Owner Gets 6.5 Years for Bank Fraud ---------------------------------------------- Law360 reported that a Florida federal judge sentenced the former president and sole shareholder of bankrupt motor fuel distributor Delco Oil Inc. to six and a half years in prison for conspiracy to commit wire fraud and bank fraud. According to the report, U.S. District Judge John Antoon II also ordered Stephen B. Deluca to pay $18.7 million in restitution and said he will serve three years of supervised release, during which he will be prohibited from incurring new credit charges or obtaining new lines of credit and must perform 50 hours of community service. Delco Oil Inc. was a motor fuel distributor headquartered in DeLand, Florida. Delco was placed in Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 06-03241). Richard R. Thames, Esq., at Stutsman Thames & Markey, P.A., represented the Debtor in the Chapter 11 case. In its chapter 11 petition, the Debtor estimated both assets and debts to be between $1 million and $100 million. On Dec. 1, 2006, the case was converted to a Chapter 7 liquidation and Aaron Cohen was appointed as the Interim Chapter 7 Trustee. DREIER LLP: Ex-Diamond McCarthy Atty Denied Early Win in Fee Row ---------------------------------------------------------------- Law360 reported that a Houston judge denied summary judgment to a former Diamond McCarthy LLP attorney claiming she never officially signed the partnership agreement that would require her to forfeit $1.4 million in fees she generated as Dreier LLP's Chapter 11 trustee. According to the report, counsel for Sheila Gowan told Harris County District Judge Sylvia A. Matthews that the only way Ms. Gowan could ever have been made a partner was if she had signed a document accepting a partner position with Diamond McCarthy. As previously reported by The Troubled Company Reporter, the Houston judge on April 10 quashed two deposition subpoenas served by Ms. Gowan on Amegy Bank NA and Deutsche Bank Securities Inc. relating to fees she generated as a Chapter 11 trustee for Dreier, after Diamond McCarthy argued in part that her request constituted harassment. Ms. Gowan sought to depose the two banks with what she called a "laser" focus on documents related to loans and loan applications where a trustees' commission was pledged or offered as security. Diamond McCarthy sued Ms. Gowan, who left the firm in the midst of the Dreier bankruptcy proceeding, alleging that she unjustly pocketed a $1.4 million fee for her work as Dreier's bankruptcy trustee. Ms. Gowan, a former federal prosecutor in New York, began unwinding Ponzi-scheme operator Marc Dreier's law firm in December 2008 while working as a partner at Diamond McCarthy. She moved to Sadowski Fischer PLLC in February 2013 and took the assignment with her, concluding work on the case in May when Dreier's creditor-repayment plan went into effect, the report related. About Marc Dreier and Dreier LLP Marc Dreier founded New York-based law firm Dreier LLP -- http://www.dreierllp.com/-- in 1996. On Dec. 8, 2008, the U.S. Securities and Exchange Commission filed a suit, alleging that Mr. Dreier made fraudulent offers and sales of securities in several cities, selling fake promissory notes to hedge and other private investment funds. The SEC asserted that Mr. Dreier also distributed phony financial statements and audit opinions, and recruited accomplices in connection with that scheme. Mr. Dreier, currently in prison, was charged by the U.S. government for conspiracy, securities fraud and wire fraud (S.D.N.Y. Case No. 09-cr-00085). Dreier LLP sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 08-15051) on Dec. 16, 2008. Stephen J. Shimshak, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison LLP, was tapped as counsel. The Debtor estimated assets of $100 million to $500 million, and debts between $10 million and $50 million in its Chapter 11 petition. Sheila M. Gowan, a partner with Diamond McCarthy, was appointed Chapter 11 trustee for the Dreier law firm. Ms. Gowan is represented by Diamond McCarthy LLP. Dickstein Shapiro LLP is the trustee's special trial counsel. Wachovia Bank National Association; the Dreier LLP Chapter 11 Trustee; and Steven J. Reisman as post-confirmation representative of the bankruptcy estate of 360networks (USA) Inc. signed a petition that put Mr. Dreier into bankruptcy under Chapter 7 on Jan. 26, 2009 (Bankr. S.D.N.Y. Case No. 09-10371). Mr. Dreier pleaded guilty to fraud and other charges in May 2009. The scheme to sell $700 million in fake notes unraveled in late 2008. Mr. Dreier is serving a 20-year sentence in a federal prison in Minneapolis. The May 15, 2014, edition of The TCR said the Hon. Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York confirmed the second amended Chapter 11 plan of liquidation filed by Sheila M. Gowan, the Chapter 11 trustee for Dreier LLP, and the Official Committee of Unsecured Creditors. DVORKIN HOLDINGS: Bankr. Court Weighs Interest Rates ---------------------------------------------------- Law360 reported that in an unusual case where a bankrupt company has more than enough cash to pay its debts, the Chapter 11 trustee for a Chicago real estate holding company argued that unsecured creditors should be paid only the meager federal judgment interest rate, rather than the contract rate, on their claims. According to the report, Dvorkin Holdings LLC filed for bankruptcy in 2012 after its principal, Daniel Dvorkin, was charged in a murder-for-hire plot. Since then, trustee Gus Paloian of Seyfarth Shaw LLP has raised $27.8 million, the report related. About Dvorkin Holdings Dvorkin Holdings, LLC, is a real estate holding company that possesses or possessed ownership interests in 70 real properties, either directly or indirectly through limited liability companies or land trusts. Dvorkin Holdings has interests in 40 non-debtor entities. Dvorkin Holdings filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 12-31336) in Chicago on Aug. 7, 2012. The Debtor disclosed $69.9 million in assets and $9.30 million in liabilities as of the Chapter 11 filing. Michael J. Davis, Esq., at Archer Bay, P.A., in Lisle, Ill., serves as counsel to the Debtor. The petition was signed by Loran Eatman, vice president of DH-EK Management Corp. The Bankruptcy Court in October 2012 granted the request of Patrick S. Layng, the U.S. Trustee for the Northern District of Illinois, to appoint Gus Paloian as the Chapter 11 Trustee. Seyfarth Shaw, LLP, represents the Chapter 11 Trustee as counsel. Carpenter Lipps & Leland LLP represents the Chapter 11 Trustee as conflicts counsel. On March 16, 2015, the Clerk of the Court reassigned the case to U.S. Bankruptcy Judge Jacqueline P. Cox. ELBIT IMAGING: Files Form 20-F with SEC --------------------------------------- Elbit Imaging Ltd. filed with the Securities and Exchange Commission its annual report on Form 20-F for the fiscal year ended Dec. 31, 2014. The Company reported profit of NIS1 billion on NIS461,000 of revenues from providing management services for the year ended Dec. 31, 2014, compared to a loss of NIS1.1 billion on NIS1.96 million of revenues from providing management services in 2013. As of Dec. 31, 2014, the Company had NIS1.04 billion in total assets, NIS812.26 million in total liabilities and NIS232.05 million in shareholders' equity. A copy of the Form 20-F is available for free at: http://is.gd/XqmV5C 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. ELEPHANT TALK: Amends 2014 Annual Report to Add Part III -------------------------------------------------------- Elephant Talk Communications Corp. has filed an amended annual report for the year ended Dec. 31, 2014, solely to incorporate in its entirety Part III (Items 10, 11, 12, 13 and Item 14). No other changes have been made to the Form 10-K. A copy of the Form 10-K/A is available for free at http://is.gd/DzyTjX About Elephant Talk Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK) -- http://www.elephanttalk.com/-- is an international provider of business software and services to the telecommunications and financial services industry. Elephant Talk reported a net loss of $21.9 million in 2014, a net loss of $25.5 million in 2013 and a net loss of $23.1 million in 2012. As of Dec. 31, 2014, the Company had $44.9 million in total assets, $34.3 million in total liabilities and $10.6 million in total stockholders' equity. EMMAUS LIFE: Two Directors Resign Due to Disagreements ------------------------------------------------------ Tracey C. Doi voluntarily tendered her resignation from the Board of Directors of Emmaus Life Sciences, Inc., effective April 28, 2015, according to a document filed with the Securities and Exchange Commission. Prior to her resignation, Ms. Doi served on the Company's Audit Committee and Compensation, Nominating and Corporate Governance Committee. She resigned due to disagreement with the Company's senior management over business matters and cited her belief that she is no longer in a position to contribute meaningfully to the Company and its shareholders. Also on April 28, 2015, Akiko Moni Miyashita voluntarily tendered her resignation from the Board, effective immediately. Prior to her resignation, Ms. Miyashita served on the Company's Audit Committee and Compensation, Nominating and Corporate Governance Committee. She resigned due to disagreement with the Company's senior leadership team over strategy and cited her belief that she is unable to contribute meaningfully to the Company and its shareholders. New Chairman Files Complaint in Delaware The Company said it has been advised by counsel to Dr. Yutaka Niihara that, on April 28, 2015, Dr. Niihara filed a complaint in the Court of Chancery of the State of Delaware under Section 225 of the Delaware General Corporation Law against Tracey Doi, Henry A. McKinnell, Jr., Akiko M. Miyashita, Phillip M. Satow and Mayuran Sriskandarajah, each of whom was a member of the Board as of April 24, 2015, Sarissa Capital Management L.P. and T.R. Winston & Company, LLC, as defendants, and the Company as nominal defendant. The Complaint requests that the Court issue an order declaring, among other things, that: -- the stockholder consents delivered by Dr. Niihara were valid and effective to take the corporate actions stated therein; -- the Company's By-laws were validly amended as provided in the stockholder consents; -- Blair A. Contratto, Steven Lee, Willis C. Lee, Matsuhara Osato, M.D., Lan T. Tran, David J. Wohlberg and Ian Zwicker were validly elected as directors of the Company; -- any actions taken by the Incumbent Directors since April 24, 2015, are invalid and void; and -- the actions purportedly taken by written consent were not prohibited by the terms of the Agreement, dated as of Sept. 11, 2013, among the Company, Dr. Niihara, Sarissa and TRW. Along with the Complaint, Dr. Niihara filed a motion for order maintaining the status quo, which, pending resolution of the actions under the Complaint, seeks to maintain the governance structure of the Board following the actions purportedly taken by the stockholders of the Company. Dr. Niihara also filed a motion for expedited proceedings. As previously reported on Form 8-K filed by the Company with the Securities and Exchange Commission, on April 15, 2015, the Board voted to elevate Dr. Niihara, the Company's president and chief executive officer, to the position of Chairman of the Board and for Dr. Niihara be resassigned from the position of chief executive officer of the Company and to assume a new position as the Company's chief scientific officer, effective as of May 1, 2015. The Board commenced a search for a new president and CEO. If one has not been hired by May 1, 2015, executive officers Peter Ludlum and Lan T. Tran will serve as an executive committee that will carry out the roles and responsibilities of the Company's CEO until a new, full-time CEO is hired. Mr. Ludlum has served as the Company's executive vice president and chief financial officer since April 2012. Ms. Tran has served as the Company's chief administrative officer and corporate secretary since May 2011. On April 24, 2015, Dr. Niihara delivered to the Company written consents of the stockholders of the Company purporting to take the following actions: * Amend the Company's By-laws to expressly provide that the advance notice provisions of the Company's by-laws shall not apply in respect of any nominees for director elected by consent in lieu of a meeting of the stockholders under Section 228 of the Delaware General Corporation Law; * Amend the Company's By-laws to provide that, unless and until the number of directors of the Board is increased or decreased by action of the stockholders or the Board, the total number of directors of the Company will be 14; * Amend the Company's By-laws to provide that any director vacancy or newly created directorship may also be filled by the stockholders of the Company; and * To elect and appoint Blair A. Contratto, S. Steven Lee, Willis C. Lee, Matsuhara Osato, M.D., Lan T. Tran, David J. Wohlberg and Ian Zwicker as directors of the Company. The foregoing actions purported to be effective immediately upon delivery of the consents to the Company. About Emmaus Life Emmaus Life Sciences, Inc., is engaged in the discovery, development, and commercialization of treatments and therapies primarily for rare and orphan diseases. This biopharmaceutical company's headquarters is in Torrance, California. Emmaus Life reported a net loss of $20.8 million on $500,700 of net revenues for the year ended Dec. 31, 2014, compared to a net loss of $14.06 million on $391,000 of net revenues for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $2.66 million in total assets, $23 million in total liabilities and a $20.3 million total stockholders' deficit. KPMG LLP, in San Diego, California, issued a "going Concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014. The independent auditors noted that the Company has suffered recurring losses from operations, has significant amounts of debt due within a year, and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. ENDEAVOUR INTERNATIONAL: Judge Postpones Ruling on Bid for Standing ------------------------------------------------------------------- Law360 reported that U.S. Bankruptcy Judge Kevin J. Carey in Wilmington, Del., declined to consider a bid by Endeavour Operating Corp. unsecured creditors for standing to sue lenders over $440 million in obligations, saying it belonged on the back burner in light of the energy company's recent move to ditch its prearranged Chapter 11 plan. According to the report, Judge Carey said taking up the official committee of unsecured creditors' motion for standing now would not be a good thing for the estate or any parties involved, given Endeavour's decision Wednesday to pursue an asset sale instead of a restructuring plan. "If I thought it would be helpful to administration of the case I would move forward -- I don't think it is, at this point," Judge Carey said from the bench, the report related. As previously reported by The Troubled Company Reporter, the Committee asked the Bankruptcy Court to extend the challenge period termination date after the conclusion of any continued plan confirmation hearing, saying it needs to continue its investigation of the liens and security interests of the term loan secured parties and avoid the loss of its right to challenge the liens and security interests during the pendency of the investigation. Law360 reported that hedge funds and banks financing the bankruptcy of Endeavour urged the Bankruptcy Court not to let the Committee extinguish $440 million in obligations, saying the panel doesn't have standing to sue. 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. Endeavour Operating Corporation, in its schedules, disclosed $808,358,297 in assets and $1,242,480,297 in liabilities as of the Chapter 11 filing. 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. ENERGIZER HOLDINGS: S&P Assigns 'BB' CCR, Outlook Stable -------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' corporate credit rating on St. Louis, Mo.-based Energizer Holdings Inc. The outlook is stable. At the same time, S&P assigned its 'BBB-' rating to Energizer's proposed $400 million senior secured term loan B notes. The recovery rating is '1', indicating S&P's belief that lenders could expect very high (90%-100%) recovery in the event of payment default or bankruptcy. S&P's ratings are based on the preliminary terms and conditions of the proposed facilities as provided to S&P. S&P do not know the details of the additional $600 million of debt to be raised to fund the payment to Edgewell, but if the amount or the final terms and conditions should change, S&P would need to reevaluate its ratings. "We believe the spin-off of the battery and portable lighting segment will further concentrate Energizer's business model and revenue stream," said Standard & Poor's credit analyst Rod Olivero. The company has a premier brand name with Energizer, and No. 1 or No. 2 market positions globally, but participates in a highly competitive and mature industry that is in a slow, secular decline. Standard & Poor's expects global battery sales will decline through 2020 in the low-single-digits percent area. In developed regions, S&P expects continued decreasing demand for battery-operated devices, such as cameras and audio players, as consumers migrate to "battery-on-board" devices with multiple uses, such as smartphones. The company generates approximately 70% of its revenues in developed regions, but S&P expects the mix to continue to shift further to developing markets. S&P expects sales in developing regions to improve slightly through household growth, wage improvement, and a slower pace of battery-on-board device adoption, which should help offset the declining sales trends in the U.S. and Europe. The stable outlook reflects S&P's expectation that the company will maintain its good global market positions through brand investment and innovation as well as cost-containment measures. S&P expects the company will sustain funds from operations (FFO) to debt in the mid-20% area and liquidity will remain adequate, with the potential for temporary FFO/debt deterioration to pursue modest acquisitions. ENERGIZER SPINCO: Moody's Assigns Ba2 CFR, Outlook Stable --------------------------------------------------------- Moody's Investors Service assigned a Ba2 Corporate Family Rating and a Ba2-PD Probability of Default Rating to Energizer Spinco, Inc. Moody's also assigned Baa3 (LGD 2) to Energizer Spinco's proposed senior secured revolver and senior secured term loan. Other ratings assigned include an SGL-1 Speculative Grade Liquidity Rating. The outlook is stable. Proceeds from the offering will be used to fund a $1 billion distribution to Energizer Holdings, Inc. as part of the divestiture of Energizer Spinco into a separate independent company. Moody's expects the spin-off to be complete by July 1, 2015. -- Corporate Family Rating at Ba2 -- Probability of Default Rating at Ba2-PD -- $250 million senior secured revolver expiring May 2020 at Baa3 (LGD 2) -- $400 million Term Loan B due May 2022 at Baa3 (LGD 2) -- Speculative Grade Liquidity Rating of SGL-1 Energizer Spinco's Ba2 CFR reflects the company's small scale relative to other diversified consumer packaged goods companies, concentration in the declining battery product category, and declining revenues and earnings. The rating also reflects the company's good geographic diversity, leading market position and strong cash flow. While Moody's expects pro forma leverage to be relatively modest at 3.4x, the rating agency believes that the scale and complexity of the post-spin restructuring initiatives bear considerable execution risk and may take longer and be more costly than management anticipates. "The battery category is facing a slow secular decline as consumer products are evolving increasingly toward rechargeable technologies, and is increasingly commoditized, rendering the category highly promotional," said Nancy Meadows, a Moody's VP, Senior Analyst. "For these reasons, Energizer Spinco will be highly dependent upon cost cutting to offset the impact of higher stand-alone costs going forward," she added. The stable outlook reflects Moody's expectation that the company will demonstrate a stable operating profile with strong free cash flow and good liquidity. The rating could be downgraded if operating performance or margins deteriorate meaningfully as a result of competitive activity. A downgrade could also occur if there is a deterioration in cash flow or liquidity, or if debt/EBITDA approaches 4x. Aggressive shareholder friendly actions would also contribute to a downgrade. An upgrade is unlikely given the recent declines in revenues and earnings. Factors that could contribute to an upgrade include improved scale and product diversity. The company would also have to restore organic revenue and earnings growth on a sustained basis. The principal methodology used in these ratings was Global Packaged Goods published in June 2013. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. ERESEARCH TECHNOLOGIES: Moody's Says $25M Loan Upsize is Credit Neg ------------------------------------------------------------------- Moody's Investors Service said that although eResearch Technologies, Inc.'s announced $25 million debt increase and related $20 million shareholder distribution is a credit negative development, it still expects ERT will achieve solid financial strength metrics in 2015, so there is no change to the B2 CFR and other ratings, or the stable ratings outlook, at this time. ERT is a provider of cardiac safety, respiratory efficacy and electronic clinical outcome assessment solutions to pharmaceutical and healthcare organizations sponsoring or involved in the clinical trial of new drugs and is owned by affiliates of Genstar Capital. ERG INTERMEDIATE: Has Interim Authority to Tap $5-Mil. in DIP Loan ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, gave ERG Intermediate Holdings, L.L.C., et al., interim authority to obtain postpetition financing up to an aggregate principal amount of $5,000,000, from CLMG Corp., as administrative agent and as collateral agent, for a consortium of lenders. At the final hearing, scheduled for June 1, 2015, at 1:30 p.m. (CT), the Debtors will seek approval to obtain an aggregate principal amount not to exceed $17,500,000 of postpetition financing. The Debtors are also given interim authority to use cash collateral securing their prepetition indebtedness from CLMG and other prepetition lenders. The Prepetition Credit Agreement between the Debtors and CLMG, et al., provided for $372,000,000 of loans consisting initially of $230,000,000 of Term Loans and $120,000,000 of Delayed Draw Term Loans and subsequently of an additional $22,000,000 of Term Loans pursuant to the First Amendment to Credit Agreement. As adequate protection, the Prepetition Lenders are given adequate protection liens and an allowed superpriority administrative expense claim. If no objections to the relief sought in the final hearing are filed and served, no final hearing will be held and a separate final order may be presented by the Debtors and entered by the Court. Objections must be filed no later than May 26. A full-text copy of the Interim Order with Budget is available at http://bankrupt.com/misc/ERGdip0505.pdf Counsel for the DIP Agent and the Prepetition Agent: Thomas E. Lauria, Esq. Thomas MacWright, Esq. WHITE & CASE LLP 1155 Avenue of the Americas New York, NY 10036-2787 Email: tlauria@whitecase.com tmacwright@whitecase.com About ERG Resources ERG Resources, LLC, is a privately owned oil & gas producer that was formed in 1996. Since 2010, ERG Resources and ERG Operating Co. have been primarily engaged in the exploration and production of crude oil and natural gas in the Cat Canyon Field in Santa Barbara County, California. ERG Resources owns 19,027 gross lease acreage in the Cat Canyon Field. ERG Resources also owns and operates oil & gas leases representing 683 gross acres of leasehold located in Liberty County, Texas. The Company's corporate headquarters is located in Houston, Texas. Scott Y. Wood, through two of his affiliates, owns 100% of the membership units in ERG Intermediate Holdings LLC, the parent company. ERG Intermediate Holdings, ERG Resources and three affiliates sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 15-31858) on April 30, 2015, in Dallas, Texas. The Debtors tapped Jones Day as counsel; DLA Piper as co-counsel; AP Services, LLC, to provide a CRO; and Epiq Bankruptcy Solutions, LLC. ERG Intermediate estimated $100 million to $500 million in assets and debt. ERG INTERMEDIATE: Section 341(a) Meeting Set for June 9 ------------------------------------------------------- A meeting of creditors in the bankruptcy case of ERG Intermediate Holdings, LLC will be held on June 9, 2015, at 1:30 p.m. at Dallas, Room 976. Creditors have until Sept. 8, 2015, to file their proofs of claim. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. ERG Intermediate Holdings, LLC and four of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. N.D. Tex. Lead Case No. 15-31858) on April 30, 2015. The petition was signed by Kelly R. Plato as chief financial officer. The Debtor estimated assets and debts of at least $100 million. Jones Day serves as the Debtors' counsel. DLA Piper represents the Debtors' as co-counsel. Epiq Bankruptcy Solutions, LLC acts as the Debtors' claims, noticing and balloting agent. Judge Harlin DeWayne Hale presides over the cases. EXELIXIS INC: Posts $35.2 Million Net Loss in First Quarter ----------------------------------------------------------- Exelixis, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $35.17 million on $9.38 million of net product revenues for the three months ended March 31, 2015, compared to a net loss of $74.61 million on $4.9 million of net product revenues for the same period a year ago. As of March 31, 2015, the Company had $282.93 million in total assets, $429.69 million in total liabilities and a $146.75 million total stockholders' deficit. Cash and cash equivalents, short- and long-term investments and short- and long-term restricted cash and investments totaled $197.6 million at March 31, 2015, compared to $242.8 million at Dec. 31, 2014. "In the first quarter, the Exelixis team made strong progress toward the multiple clinical and regulatory milestones that are anticipated throughout 2015," said Michael M. Morrissey, Ph.D., the company's president and chief executive officer. "The company's top priority remains the delivery of top-line results from METEOR, the phase 3 pivotal trial of cabozantinib in mRCC. If METEOR is successful, we will turn our focus to completing U.S. and EU regulatory filings by early 2016." A full-text copy of the Form 10-Q is available for free at: http://is.gd/PLx4ta On Sept. 5, 2014, Exelixis filed a Current Report on Form 8-K reporting a restructuring plan that resulted in a reduction of the Company's workforce by approximately 70%, or approximately 155 employees. The Company filed an amendment to the Original Form 8-K to report the restructuring charge that it recorded during the fiscal year ended Jan. 2, 2015, estimates of the expenses that will be incurred, and estimates of the charges that will result in future cash expenditures. Information related to charges and expenditures that occurred during 2014 were previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended Jan. 2, 2015. On Aug. 31, 2014, the Board of Directors of Exelixis approved a restructuring plan, which was implemented on Sept. 2, 2014, as a consequence of the failure of COMET-1, one of the Company's two phase 3 pivotal trials of cabozantinib in metastatic castration-resistant prostate cancer, to meet its primary endpoint of demonstrating a statistically significant increase in overall survival for patients treated with cabozantinib as compared to prednisone. The Company implemented a restructuring plan to reduce its workforce. Personnel reductions were initiated across the entire organization and have resulted in an ongoing workforce of approximately 85 full-time employees. The principal objective of the restructuring plan is to enable the Company to focus its financial resources on the phase 3 pivotal trials of cabozantinib in metastatic renal cell carcinoma and advanced hepatocellular carcinoma. As a result of the restructuring plan, the Company expects to incur total charges in the range of $7 million to $11 million, including one-time employee termination benefits for those employees notified in September 2014, facility-related charges, equipment write-downs and potentially other charges. The timing and amount of these charges is described below: During fiscal 2014, the Company recorded a charge of $6.1 million, which included $5.8 million related to employee severance and other benefits and $0.3 million for equipment write-downs and other charges, which were partially offset by recoveries recorded in connection with the sale of excess equipment and other assets that were previously fully depreciated. The Company expects to incur additional facility-related charges in the range of $2 million to $6 million as a result of the September 2014 restructuring plan in connection with the sublease and exit of certain of the Company's buildings in South San Francisco, California. Cash expenditures related to employee severance and other benefits were $4.5 million during fiscal 2014; the Company expects to pay the remaining $1.4 million during fiscal 2015. The Company also expects to receive approximately $1.5 million in net proceeds from the sale of excess equipment, the majority of which we expect to receive during fiscal 2015. The Company expects to pay any accrued facility charges, net of cash to be received from our subtenants, if any, through the end of its lease terms of the buildings, the last of which ends in 2018. About Exelixis Inc. Headquartered in South San Francisco, California, Exelixis, Inc., develops innovative therapies for cancer and other serious diseases. Through its drug discovery and development activities, Exelixis is building a portfolio of novel compounds that it believes has the potential to be high-quality, differentiated pharmaceutical products. Exelixis, Inc. reported a net loss of $269 million on $25.11 million of total revenues for the year ended Dec. 31, 2014, compared to a net loss of $245 million on $31.33 million of total revenues in 2013. EXELIXIS INC: To Issue 10.4 Million Shares Under Incentive Plan --------------------------------------------------------------- Exelixis, Inc. filed a Form S-8 registration statement with the Securities and Exchange Commission relating to the offering of 10,494,555 shares of Common Stock of the Comopany for issuance under the Exelixis, Inc. 2014 Equity Incentive Plan. The proposed maximum aggregate offering price is $29.1 million. A copy of the prospectus is available at http://is.gd/RqrPGZ About Exelixis Inc. Headquartered in South San Francisco, California, Exelixis, Inc., develops innovative therapies for cancer and other serious diseases. Through its drug discovery and development activities, Exelixis is building a portfolio of novel compounds that it believes has the potential to be high-quality, differentiated pharmaceutical products. Exelixis, Inc. reported a net loss of $269 million on $25.11 million of total revenues for the year ended Dec. 31, 2014, compared to a net loss of $245 million on $31.33 million of total revenues in 2013. As of March 31, 2015, the Company had $282.93 million in total assets, $429.69 million in total liabilities and a $146.75 million total stockholders' deficit. FAMILY CHRISTIAN: Court Sets June 9 as Claims Bar Date ------------------------------------------------------ The Hon. John T. Gregg of the U.S. Bankruptcy Court for the Western District of Michigan set June 9, 2015, at 5:00 p.m. (prevailing Eastern Time) for creditors of Family Christian LLC and its debtor-affiliates to file proofs of claim. Judge Gregg set Aug. 14, 2015, at 5:00 p.m. (prevailing Eastern Time) as the last day for governmental units to file their claims. Proofs of claim must be filed by delivering the original proof of claim with the Debtor's Court-approved claims agent, Epiq Bankruptcy Solutions, LLC, at either of these addresses: a) If by first-class mail: Family Christian, LLC Claims Processing Center c/o Epiq Bankruptcy Solutions, LLC P.O. Box 4412 Beaverton, OR 97076 - 4412 b) if by hand delivery or overnight mail: Family Christian, LLC Claims Processing Center c/o Epiq Bankruptcy Solutions, LLC 10300 SW Allen Blvd. Beaverton, OR 97005 About Family Christian Family Christian Holding, LLC, is the sole owner and member of Family Christian, LLC, which operates and runs Family Christian stores, one of the largest retail sellers of Christian books, music, DVDs, church supplies, and other faith based merchandise. Family Christian, LLC, Family Christian Holding, LLC, and FCS Giftco, LLC, filed Chapter 11 bankruptcy petitions (Bankr. W.D. Mich. Lead Case No. 15-00643) on Feb. 11, 2015. The petition was signed by Chuck Bengochea as president and CEO. The Debtors estimated assets and liabilities of $50 million to $100 million. The Debtors are being represented by Todd Almassian, Esq., at Keller & Almassian PLC, and Erich Durlacher, Esq., Brad Baldwin, Esq., Bryan Glover, Esq., at Burr & Forman LLP as counsel. The U.S. Trustee for Region 9 appointed seven creditors of Family Christian LLC to serve on the official committee of unsecured creditors. FAMILY CHRISTIAN: US Trustee Wants Court to Name Consumer Ombudsman ------------------------------------------------------------------- Daniel M. McDermott, United States Trustee for Region 9, asks the Hon. John T. Gregg of the U.S. Bankruptcy Court for the Western District of Michigan to appoint a consumer privacy ombudsman (CPO) in the Chapter 11 bankruptcy case of Family Christian LLC and its debtor-affiliates pursuant to Section 332(a) of the Bankruptcy Code. The Official Committee of Unsecured Creditors supports the U.S. Trustee's request to appoint a consumer privacy ombudsman but the Debtor disagrees with the U.S. Trustee because a CPO is not required in their case because (i) their privacy policies expressly authorize, and do not prohibit, the sale of personally identifiable information (PII) to third parties in connection with a sale or merger of the company and (ii) the appointment of a CPO depends upon the identity of the buyer and whether they wish to purchase PII, both of which are unknown prior to the May 21 auction sale of the Debtors' assets. According to the U.S. Trustee, the assets to be sold are defined as including, inter alia, all the sellers' "books, records, files, documents and other written or electronic materials, including customer lists, except those related solely to the excluded assets or the excluded liabilities or expressly included in the excluded assets. This would seem to be consistent with the Debtors' intention to sell personally identifiable information. Some assets are excluded from the sale, but personally identifiable information does not appear to be an excluded asset, the U.S. Trustee points out. About Family Christian Family Christian Holding, LLC, is the sole owner and member of Family Christian, LLC, which operates and runs Family Christian stores, one of the largest retail sellers of Christian books, music, DVDs, church supplies, and other faith based merchandise. Family Christian, LLC, Family Christian Holding, LLC, and FCS Giftco, LLC, filed Chapter 11 bankruptcy petitions (Bankr. W.D. Mich. Lead Case No. 15-00643) on Feb. 11, 2015. The petition was signed by Chuck Bengochea as president and CEO. The Debtors estimated assets and liabilities of $50 million to $100 million. The Debtors are being represented by Todd Almassian, Esq., at Keller & Almassian PLC, and Erich Durlacher, Esq., Brad Baldwin, Esq., Bryan Glover, Esq., at Burr & Forman LLP as counsel. The U.S. Trustee for Region 9 appointed seven creditors of Family Christian LLC to serve on the official committee of unsecured creditors. FIBERTECH HOLDING: Moody's Changes Outlook to Developing -------------------------------------------------------- Moody's Investors Service changed Fibertech Holding Corp.'s ratings outlook to developing from stable following Light Tower's (LTS Group Holdings LLC, B2 review for downgrade) announcement that it will acquire Fibertech in an all-cash transaction valued at $1.9 billion. As part of the same action, Moody's also affirmed Fibertech's B2 corporate family rating, B2 probability of default rating and the B2 senior secured bank credit facility rating at Fibertech Networks, LLC, Fibertech's wholly-owned subsidiary. The developing outlook acknowledges the pending transaction, however, because Moody's expects that all debt will be repaid at closing, the transaction does not adversely affect expected loss and all ratings were affirmed. Moody's expects to withdraw all of Fibertech's ratings concurrent with closing which, pending normal regulatory approvals, is expected in the third quarter of 2015. Fibertech Networks LLC is a builder/operator of last mile fiber optic networks in mid-size cities in the Eastern and Central United States. Financial statements are in the name of Fibertech, and Fibertech guarantees Fibertech Networks LLC's credit facilities. Fibertech is owned by Court Square Capital Partners, a financial investor, and has no material assets or liabilities beyond its interest in Fibertech Networks, LLC. Headquartered in Boxborough, MA, LTS Group Holdings LLC, an entity owned by Berkshire Partners, is a US-based broadband infrastructure provider with significant fiber assets serving enterprise, government, carrier and data center customers in the Northeast, Mid-Atlantic and Chicago Metro with connectivity to international landing sites. The company has access to and/or owns over 20,000 fiber route miles and provides service to over 8,500 on-net locations. Issuer: Fibertech Holding Corp. -- Outlook, Changed to Developing From Stable -- Corporate Family Rating, Affirmed at B2 -- Probability of Default Rating, Affirmed at B2-PD Issuer: Fibertech Networks, LLC -- Senior Secured Bank Credit Facility, Affirmed at B2, LGD3 Fibertech's B2 corporate family rating primarily reflects the company's aggressive growth profile and resulting weak free cash flow, the likelihood of debt-financed shareholder returns, and the company's very small aggregate scale. Fibertech's participation in a business Moody's think is sustainable is credit-positive, as is the company's record of successfully developing last mile fiber connectivity. The company's good revenue visibility via a solid backlog supported by long term contracts with a diverse group of counter-parties is also a positive consideration. Through its wholly-owned subsidiary, Fibertech Networks, LLC, Fibertech Holding Corp. is a Rochester, New York-headquartered builder/operator of last mile fiber optic networks in mid-size cities in the Eastern and Central United States. The principal methodology used in these ratings was Global Communications Infrastructure Rating Methodology published in June 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. FL 6801 SPIRITS: Deadline to Remove Suits Extended to May 19 ------------------------------------------------------------ U.S. Bankruptcy Judge Shelley Chapman has given FL 6801 Spirits LLC until May 19, 2015, to file notices of removal of lawsuits involving the company and its affiliates. 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. FREDERICK'S OF HOLLYWOOD: Can Proceed With May 28 Auction --------------------------------------------------------- Stephanie Gleason, writing for The Wall Street Journal, reported that U.S. Bankruptcy Judge Kevin Gross in Wilmington, Del., authorized Frederick's of Hollywood Inc., et al., to proceed with a May 28 auction of its assets, with Authentic Brands Group Inc.'s $22.5 million offer serving as stalking horse bid. According to the Journal, the offer from Authentic Brands is for Frederick's intellectual property, some inventory and its e-commerce business, since the company entered bankruptcy having shut down its remaining store locations. The protections for that bid include a $775,000 termination fee, negotiated down from $850,000 with the committee representing unsecured creditors, and $300,000 in expense reimbursement, the Journal related. All objections to the rules were resolved prior to the hearing, but a lawyer for the committee for unsecured creditors, said the panel is investigating other issues in the case, the Journal added. About Frederick's Frederick's of Hollywood Group Inc., sells women's apparel and related products under its proprietary Frederick's of Hollywood brand. Frederick's had more than 200 brick-and-mortar stores at its peak. At present it sells its products at its online shop at http://www.fredericks.com/ On April 19, 2015, Frederick's of Hollywood and five affiliates each filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The cases are pending approval to be jointly administered under Case No. 15-10836 before the Honorable Kevin Gross (Bankr. D. Del.). The Company disclosed $36.5 million in assets and $106 million in debt as of the bankruptcy filing. The material debt obligations principally consist of $33 million in loans under a secured credit agreement, $16.2 million in unsecured promissory notes, and $56.7 million in trade debt and liabilities to landlords. The Debtors tapped Milbank, Tweed, Hadley & McCloy LLP, as bankruptcy counsel; Richards, Layton & Finger, P.A., as local counsel; Consensus Advisory Services LLC as investment banker and financial advisor; and Kurtzman Carson Consultants LLC, as claims and noticing agent. Andrew R. Vara, Acting U.S. Trustee for Region 3, notified the U.S. Bankruptcy Court in Delaware that he has appointed seven members to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Frederick's of Hollywood, Inc., and its debtor affiliates. FREEDOM INDUSTRIES: State Regulators Set Up Spill Cleanup Website ----------------------------------------------------------------- The Associated Press reports that state regulators have set up a website dedicated to Freedom Industries Inc.'s participation in the Voluntary Remediation Program for the cleanup process at the site of the chemical spill. As reported by the Troubled Company Reporter on April 13, 2015, Kate White, writing for Wvgazette.com, reported that federal prosecutors asked U.S. District Judge Thomas Johnston to approve a plan to issue a press release, maintain a website with case information, and publish a legal notice in the Charleston Gazette and Charleston Daily Mail for two weeks in the case against former Freedom Industries officials in connection with the January 2014 chemical spill in the Kanawha Valley in West Virginia and surrounding communities. No cleanup plan has been submitted or approved yet, The AP relates, citing the Department of Environmental Protection. The report adds that a remedial action work plan is due at the first quarter of 2016. The entire project, says the report, is expected to be completed in 2016. Jim Christie at Reuters states that officials in West Virginia called Freedom Industries' Chapter 11 fees "outlandish". West Virginia's Department of Environmental Protection said in court filing that Freedom Industries' plan to distribute $6.5 million to creditors would set aside $2.5 million for professionals while state regulators would get $150,000. About Freedom Industries Freedom Industries Inc. is engaged principally in the business of producing specialty chemicals for the mining, steel and cement industries. The Debtor operates two production facilities located in (a) Nitro, West Virginia; and (b) Charleston, West Virginia. The company, connected to a chemical spill that tainted the water supply in West Virginia, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Case No. 14-bk-20017) on Jan. 17, 2014. The case is assigned to Judge Ronald G. Pearson. The petition was signed by Gary Southern, president. The Debtor is represented by Mark E Freedlander, Esq., at McGuire Woods LLP, in Pittsburgh, Pennsylvania; and Stephen L. Thompson, Esq., at Barth & Thompson, in Charleston, West Virginia. On Dec. 31, 2013, four companies merged under the umbrella of Freedom Industries: Freedom Industries Inc., Etowah River Terminal LLC, Poca Blending LLC and Crete Technologies LLC. As reported in the Troubled Company Reporter on Feb. 20, 2014, Kate White, writing for The Charleston Gazette, reported that the Debtor disclosed $16 million in assets and $6 million in liabilities when it filed for bankruptcy. On Feb. 5, 2014, the U.S. Trustee appointed an official committee of unsecured creditors. The Committee retained Frost Brown Todd LLC as counsel. On March 18, 2014, the Bankruptcy Court approved the hiring of Mark Welch at MorrisAnderson in Chicago as Freedom's chief restructuring officer. FREEDOM INDUSTRIES: Targeting June Confirmation of Chapter 11 Plan ------------------------------------------------------------------ Freedom Industries Inc. on April 30, 2015, filed a proposed plan of liquidation which it says is a product of negotiations with major creditor constituencies and formed in close collaboration with the unsecured creditors committee. The Debtor immediately filed a motion asking the Bankruptcy Court to hold a combined hearing to consider approval of the explanatory disclosure statement and confirmation of the plan based on this schedule: Event Date/Deadline ----- ------------- Filing of Disclosure Statement and Plan 4/30/15 Voting Record Date 4/30/15 Solicitation Commencement Date 5/06/15 Rule 3018(a) Motion Deadline 5/26/15 Objection Deadline for Combined Hearing 6/03/15 Voting Deadline 6/03/15 Combined Hearing on Disc. Statement and Plan 6/12/15 The Plan of Liquidation Under the Plan, the Debtor's assets including significant potential Claims and Causes of Action will be liquidated by the Debtor on or before the Effective Date. The liquidation proceeds will, on the Effective Date, either (i) be distributed to creditors in accordance with the Plan, or (ii) be transferred to two plan administrators for subsequent distributions under the Plan. The GC Plan Administrator will exclusively have the power and authority to hold, manage, sell and distribute the Cash to holders of Class 3 Claims in accordance with the Plan. The Spill Claim Plan Administrator shall act in the best interests of the holders of Class 4 and Class 5 Claims. The Plan represents a global settlement among the Debtor; the Committee; the current equity owner (Chemstream Holdings, Inc.) and affiliated parties; the former officers and directors (Dennis P. Farrell, William G. Tis and Charles E. Herzing), Gary Southern, and certain represented class action plaintiffs. Without these settlements, there would be (a) no release of AIG settlement proceeds (totaling approximately $3,199,318), (b) no sale escrow proceeds (totaling approximately $2,800,000), and (c) no proceeds from Gary Southern (totaling $300,000), unless and until uncertain, time consuming, and expensive litigation were first to occur. In exchange for the consideration, the Debtor, its bankruptcy estate and the successor Plan Administrators will release under the Plan all litigation rights and claims against Chemstream and its affiliated parties; Dennis P. Farrell, William G. Tis and Charles E. Herzing and their affiliated companies that they own or owned; and Gary Southern and affiliated companies that he owns or owned. Finally, Chemstream and its affiliated parties, Tis, Herzing and Farrell and their affiliated parties, and Southern and his affiliated parties will agree to waive and not assert any claims against the Debtor or the insurance recoveries from AIG Specialty Insurance. The Debtor and West Virginia Department of Environmental Protection continue to discuss and negotiate the scope and extent of final remediation measures for the Etowah River Terminal. Agreed steps may include, without limitation, the construction of a new retention trench below existing retention trenches and the testing of water contained within the new trench once constructed. Additional water testing is expected to occur within the contained area of the MCHM Footprint. Results of this additional water testing are expected to impact a determination by WVDEP regarding the extent to which additional soil removal, if any, will occur, and the extent to which certain areas on the upper portion of the site will be filled, if at all, with clay. Once the extent of additional soil removal and clay fill requirements, if any, are determined and undertaken (to the extent so required), the CRO expects, subject to approval by WVDEP, to then fill certain additional trenches with clean fill and remove all pumps from the site. The CRO believes that completion of the aforementioned measures will allow the CRO to sell the Etowah River Terminal to an unrelated third party that will promptly after closing on the proposed transaction pave a substantial portion of the site and agree, subject to specified limitations, to continue to cause water testing to occur. Negotiations with the potential purchaser and WVDEP regarding this potential transaction are ongoing. More specific definition is expected to be brought to these matters incrementally in the period prior to a hearing on confirmation of the Plan. The Plan proposes to pay off claims as follows: * Class 1 IRS Secured Claims. The IRS will be paid in cash the unpaid principal and interest portions of the claims estimated at $500,000. In consideration of the allowance and payment of the claims, the IRS will waive penalty amounts associated with the claims. The class is impaired. Estimated recovery: 100% * Class 2 Priority Tax Claims. Holders of Allowed Priority Tax Claims, if any, shall be paid in Cash by the CRO on the Effective Date, or if any such claim is disputed, following the allowance of the claim. The class is impaired. Estimated recovery: 100% * Class 3 General Unsecured Claims. On the Effective Date, the GC Plan Administrator shall be paid $500,000 for the benefit of holders of allowed general unsecured claims. In addition, the GC Plan Administrator, for the benefit of the holders of Allowed Class 3 Claims, will participate with the Spill Claim Plan Administrator in receipt of 50% of net recoveries from Causes of Action not otherwise released under the Plan, after reimbursement of all fees and expenses associated with such Causes of Action, up to a maximum recovery by the GC Plan Administrator on behalf of holders of Class 3 Claims of $7,000,000. The class is impaired. Estimated recovery: 6.67% initial recovery * Class 4 Convenience Class Spill Claim. On the Effective Date, the Spill Claim Plan Administrator shall be paid $500,000 for the benefit of the holders of Class 4 Convenience Class Spill Claims. The class is impaired. Estimated recovery: N/A * Class 5 Spill Claims. On the Effective Date, the Spill Claim Plan Administrator shall be paid $2,199,318 for the benefit of the holders of Allowed Class 5 Spill Claims. The Spill Claim Plan Administrator, for the benefit of the holders of Allowed Class 5 Spill Claims, will participate with the GC Plan Administrator in receipt of 50% of net recoveries from Causes of Action not otherwise released under the Plan, after reimbursement of all fees and expenses associated with such Causes of Action, until such time as the GC Plan Administrator receives the sum of $7,000,000 from proceeds of Causes of Action at which time the Spill Claim Plan Administrator shall receive for the benefit of the holders of Allowed Class 5 Spill Claims, 100% of all additional proceeds from Causes of Action. The class is impaired. Estimated recovery: N/A -- Class 6 Equity Interests. On the Effective Date, all Equity Interests in the Debtor shall be deemed cancelled without further action by the Debtor, and 100% of new equity interests in the Debtor shall be issued to the Spill Claim Plan Administrator or its designee for the benefit of the holders of Class 5 Spill Claims on the Effective Date. The class is impaired. Estimated recovery: 0% Holders of Claims in Class 1 (IRS Secured Claims), Class 2 (Priority Tax Claims), Class 3 (General Unsecured Claims), Class 4 (Convenience Spill Claims), and Class 5 (Spill Claims) will receive the Ballots. Holders of equity interests are not included in the voting classes as they are deemed to reject the Plan. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/Freedom_I_DS_Apr2015.pdf A copy of the summary of the Liquidating Plan is available for free at: http://bankrupt.com/misc/Freedom_I_Plan_S.pdf About Freedom Industries Freedom Industries Inc. is engaged principally in the business of producing specialty chemicals for the mining, steel and cement industries. The Debtor operates two production facilities located in (a) Nitro, West Virginia; and (b) Charleston, West Virginia. The company, connected to a chemical spill that tainted the water supply in West Virginia, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Case No. 14-bk-20017) on Jan. 17, 2014. The case is assigned to Judge Ronald G. Pearson. The petition was signed by Gary Southern, president. The Debtor is represented by Mark E Freedlander, Esq., at McGuire Woods LLP, in Pittsburgh, Pennsylvania; and Stephen L. Thompson, Esq., at Barth & Thompson, in Charleston, West Virginia. On Dec. 31, 2013, four companies merged under the umbrella of Freedom Industries: Freedom Industries Inc., Etowah River Terminal LLC, Poca Blending LLC and Crete Technologies LLC. As reported in the Troubled Company Reporter on Feb. 20, 2014, Kate White, writing for The Charleston Gazette, reported that the Debtor disclosed $16 million in assets and $6 million in liabilities when it filed for bankruptcy. On Feb. 5, 2014, the U.S. Trustee appointed an official committee of unsecured creditors. The Committee retained Frost Brown Todd LLC as counsel. On March 18, 2014, the Bankruptcy Court approved the hiring of Mark Welch at MorrisAnderson in Chicago as Freedom's chief restructuring officer. GARLOCK SEALING: Belluck Fights Subpoenas in Racketeering Suit -------------------------------------------------------------- Law360 reported that Belluck & Fox LLP said Garlock Sealing Technologies is brazenly using a North Carolina federal court to access irrelevant bankruptcy claims in an abusive strategy to bolster its adversary suit accusing the law firm of running a decade-long scheme to drive up settlement values in asbestos litigation. According to the report, the mesothelioma law firm is in the midst of fighting a March magistrate judge's order permitting gasket-maker Garlock's 24 third-party subpoenas seeking documents from 55 bankruptcy trusts and claims processing facilities involved in the massive mesothelioma litigation against it. In its filing, Belluck & Fox reasserted the alleged irrelevance of the trust claims to the immediate racketeering suit, the report related. Garlock has told the North Carolina federal court that Belluck & Fox is offering the same tired arguments in an effort to squelch pertinent discovery in the adversary suit, the report said. Belluck & Fox has not offered any new or convincing arguments for why the court should overturn Magistrate Judge David S. Cayer's decision, Garlock said, Law360 added. The case is Garlock Sealing Technologies LLC et al. v. Belluck & Fox LLP et al., case number 3:14-cv-00118, in the U.S. District Court for the Western District of North Carolina. About Garlock Sealing Headquartered in Palmyra, New York, Garlock Sealing Technologies LLC is a unit of EnPro Industries, Inc. (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, 2010, Garlock filed a voluntary Chapter 11 petition (Bankr. W.D.N.C. Case No. 10-31607) in Charlotte, North Carolina, to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor estimated $500 million to $1 billion in assets and up to $500 million in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in their Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for asbestos matters. The Official Committee of Asbestos Personal Injury Claimants in the Chapter 11 cases is represented by Travis W. Moon, Esq., at Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, NC, Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, and Trevor W. Swett III, Esq., Leslie M. Kelleher, Esq., and Jeanna Rickards Koski, Esq., in Washington, D.C. 20005. Joseph W. Grier, III, the Court-appointed legal representative for future asbestos claimants, has retained A. Cotten Wright, Esq., at Grier Furr & Crisp, PA, and Richard H. Wyron, Esq., and Jonathan P. Guy, Esq., at Orrick, Herrington & Sutcliffe LLP, as his co-counsel. Judge George Hodges of the United States Bankruptcy Court for the Western District of North Carolina on Jan. 10, 2014, entered an order estimating the liability for present and future mesothelioma claims against Garlock Sealing at $125 million, consistent with the positions GST put forth at trial. * * * The confirmation hearing for approval of Garlock Sealing's Chapter 11 plan won't begin until June 20, 2016, although Garlock and its non-bankrupt parent EnPro Industries Inc. have an agreement with the official representative for future asbestos claimants, The Troubled Company Reporter said, citing Bill Rochelle, bankruptcy columnist for Bloomberg News. The delay, according to Mr. Rochelle, largely results from opposition to the plan by the official committee representing people who already manifest symptoms of asbestos-caused diseases. A bankruptcy judge approved disclosure materials on April 10 allowing creditors to vote. The deadline for casting ballots is Oct. 6. GENERAL MOTORS: Ignition Switch Plaintiffs to Appeal Shield Ruling ------------------------------------------------------------------ Law360 reported that vehicle owners in multidistrict litigation seeking billions of dollars from General Motors LLC over a deadly ignition switch defect intend to appeal a New York federal bankruptcy judge's order barring their claims against "New GM," according to a joint letter to U.S. District Judge Jesse M. Furman, who presides over the MDL. According to the report, attorneys involved in ongoing GM litigation apologized to a bankruptcy judge who vented his frustration after learning in the press that lawyers representing ignition switch defect plaintiffs planned to appeal one of his decisions, blaming the oversight on the need to be prepared for a related district court hearing. Law360 related that U.S. Bankruptcy Judge Robert E. Gerber in New York did some venting, accusing attorneys of going behind his back after learning through media reports of their intent to appeal his decision to uphold a shield blocking certain claims against the post-bankruptcy GM. About General Motors With its global headquarters in Detroit, Michigan, General Motors -- http://www.gm.com/-- is one of the world's largest automakers, traces its roots back to 1908. General Motors Co. was formed to acquire the operations of General Motors Corp. through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The U.S. government provided financing. The deal was closed July 10, 2009, and Old GM changed its name to Motors Liquidation Co. Old GM -- General Motors Corporation -- filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. The Debtors tapped Weil, Gotshal & Manges LLP Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel; and Morgan Stanley, Evercore Partners and the Blackstone Group LLP as financial advisor. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. On Dec. 15, 2011, Motors Liquidation was dissolved. On the Dissolution Date, pursuant to the Plan and the Motors Liquidation Company GUC Trust Agreement, dated March 30, 2011, between the parties thereto, the trust administrator and trustee -- GUC Trust Administrator -- of the Motors Liquidation Company GUC Trust, assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded prior to the Dissolution Date. * * * The Troubled Company Reporter, on Aug. 29, 2014, reported that Fitch Ratings has affirmed the Issuer Default Ratings (IDRs) of General Motors Company (GM) and its General Motors Holdings LLC (GM Holdings) subsidiary at 'BB+'. In addition, Fitch has affirmed GM Holdings' secured revolving credit facility rating at 'BBB-' and GM's senior unsecured notes rating at 'BB+'. The Rating Outlook for GM and GM Holdings is Positive. GFI GROUP: Fitch Raises IDR to 'BB+', Off Rating Watch Positive --------------------------------------------------------------- Fitch Ratings has upgraded GFI Group, Inc.'s (GFI) long-term Issuer Default Rating (IDR) and senior unsecured debt rating to 'BB+' from 'B'. Fitch has also removed GFI from Rating Watch Positive and assigned a Positive Rating Outlook. The actions follow the purchase of additional GFI shares by BGC Partners Inc. (BGC). Fitch has simultaneously affirmed the 'BBB-' ratings assigned to BGC and its parent Cantor Fitzgerald, L.P. (Cantor) at 'BBB-' with Stable Rating Outlooks. On April 28, 2015, BGC purchased from GFI approximately 43 million newly issued shares of GFI's common stock at that date's closing price of $5.81 per share for an aggregate purchase price of $250 million. The purchase price was paid to GFI in the form of a note due on June 19, 2018, that bears an interest rate of LIBOR plus 200 basis points. The $250 million note issued to GFI to finance the issuance of new stock is viewed as a debt obligation of BGC on a standalone basis and an interest bearing asset of GFI on standalone basis. KEY RATING DRIVERS - GFI The upgrade of GFI's ratings reflect Fitch's view of increased clarity with respect to GFI ultimate ownership structure, as a result of the equity issuance, which appears to mitigate the previous blocking ability of GFI's minority shareholder, Jersey Partners, Inc. As a result of this transaction, BGC now has voting control of GFI, which is expected to allow BGC the flexibility to more actively manage GFI and sell non-core assets as deemed appropriate. Fitch also views the effective defeasance of GFI's 2019 debt maturity via the maturity-matched debt received from BGC positively, although it falls short of an explicit guarantee or assumption of GFI's debt by BGC. Fitch now views GFI as a strategically important subsidiary of BGC reflecting the majority ownership and voting control of GFI by BGC and the strong financial and strategic synergies between the two companies. As a result, GFI's rating is notched by one notch off of BGC's ratings. Fitch does not yet view GFI as a core subsidiary of BGC, which would result in equalization of the ratings, given the lack of an explicit assumption of GFI's debt obligation by BGC and, at this time, BGC's explicit statement to maintain separately branded operations. The Positive Outlook reflects the potential for additional steps that may be taken by BGC and GFI over the Outlook horizon which could result in an equalization of the ratings between the two entities, such as a more formal integration of GFI, a more explicit assumption of GFI's debt and/or cessation of operations as separately branded operations. GFI's standalone leverage, calculated as gross debt divided by adjusted EBITDA, measured 3.7x at Dec. 31, 2014, and interest coverage, measured as adjusted EBITDA divided by interest expense, measured 2.7x as of the same date, which are viewed as consistent with a below investment grade profile on a standalone basis. KEY RATING DRIVERS - BGC The affirmation of BGC's ratings reflect the manageable impact on cash flow leverage as result of the $250 million debt issuance and BGC's materially lower credit risk profile, more diversified revenue base and more established franchise in the inter-dealer broker (IDB) space. Fitch calculates that BGC's standalone pro forma cash flow leverage increases to 2.6x from 1.9x and interest coverage decreases to 7.2x from 8.1x as a result of the debt issuance, while giving no credit to potential cost synergies from the GFI acquisition. Given the overlapping business models of BGC and GFI, Fitch believes some level of cost synergies is achievable, which would further improve leverage and interest coverage levels, all else equal. For example, Fitch expects BGC to seek to act quickly to integrate GFI's back office, technology and infrastructure operations. KEY RATING DRIVERS – Cantor The affirmation of Cantor coincides with the affirmation of BGC and maintains the equalization of Cantor's and BGC's ratings, reflecting the meaningful ownership of BGC by Cantor, the voting control Cantor maintains over BGC, and the shared management teams and systems. Cantor's ratings reflect its established position in the middle-market brokerage space, moderate risk profile, controlled leverage, and adequate liquidity levels. Ratings are constrained by the cyclicality of and dependence on capital markets activity for most of Cantor's businesses, and its exposure to non-core ventures, which could potentially introduce financial/reputational risk. RATING SENSITIVITIES – GFI The Positive Outlook for GFI reflects the potential for additional steps that may be taken by BGC and GFI which could result in an equalization of the ratings between the two entities, such as a more formal integration of GFI, a more explicit assumption of GFI's debt and/or cessation of operations as separately branded operations. Absent a fundamental change in the relationship between BGC and GFI, GFI's ratings are expected to move in step with any changes in BGC's and Cantor's ratings, and therefore are sensitive to changes in BGC's and Cantor's risk appetites and financial profiles. RATING SENSITIVITES – BGC BGC's Stable Outlook reflects Fitch's expectation that the company will maintain sufficient liquidity for near-term debt maturities/obligations and adequate leverage and interest coverage levels. The Stable Outlook also reflects Fitch's expectation for modest cash flow and margin improvement as a result of integrating GFI's back office operations and rationalizing costs. Failure to achieve planned cost synergies, inability to sustain EBITDA or reduce debt levels, which leads leverage to increase above 2.5x or interest coverage to fall below 6x, on a sustained basis will have a negative impact on ratings. Increased shareholder-friendly activities, including increased dividends or outsized share buybacks that materially impact the company's liquidity before the successful integration of GFI would also be viewed negatively from a rating perspective. BGC's ratings are equalized with those of its parent, Cantor, as Fitch considers BGC to be a core subsidiary of Cantor due to the significant operational and financial linkages between the two companies. As a result, any changes in Cantor's ratings could also result in changes to BGC's ratings. Positive rating momentum, although limited in the medium term, could be driven by the successful integration of GFI and a sustained increase in profit margins, while maintaining conservative leverage and interest coverage metrics. RATING SENSITIVITIES – Cantor Cantor's ratings could come under pressure as a result of deteriorating operating performance in its core institutional brokerage, a material increase in leverage levels, adverse changes in the reverse repurchase book composition, material loss or reputational damage from Cantor's non-core ventures and/or key man risk associated with Cantor's CEO would also pressure ratings. Ratings also remain sensitive to changes in BGC's ratings. Cantor has a $300 million debt maturity on June 26, 2015. While refinancing has not yet occurred, Fitch views Cantor as having acceptable financial flexibility at present in order to address this maturity. Although not anticipated by Fitch, were Cantor to experience challenges refinancing or repaying this debt maturity, its ratings, and thus those of BGC and GFI, could be negatively affected. Positive rating momentum, although limited in the near term, could be driven by sustained improvement in core institutional brokerage business margins, increase in parent company liquidity levels, sale or closure of some non-core and non-viable ventures, while addressing key man risk and maintaining moderate risk appetite, low leverage, and sufficient capital. Fitch has taken these rating actions: GFI Group Inc. -- Long-term IDR upgraded to 'BB+' from 'B'; Outlook Positive; -- Short-term IDR affirmed at 'B'; -- Senior unsecured debt upgraded to 'BB+' from 'B'. BGC Partners, Inc. -- Long-term IDR affirmed at 'BBB-'; -- Senior unsecured debt rating affirmed at 'BBB-'; -- Short-term IDR affirmed at 'F3'. Cantor Fitzgerald, L.P. -- Long-term IDR affirmed at 'BBB-'; -- Senior unsecured debt affirmed at 'BBB-'; -- Short-term IDR affirmed at 'F3'. GILES-JORDAN: To Present Plan for Confirmation on May 14 -------------------------------------------------------- Giles-Jordan, Inc., is slated to seek confirmation of its reorganization plan on May 14. Judge Letitia Z. Paul on April 29, 2014, approved the disclosure statement explaining the Debtor's Third Amended Plan of Reorganization. The Court approved this schedule: -- Solicitation packages must be sent to creditors by April 29; -- Objections to the Plan will be due on May 8; -- The last day for creditors and interest holders to vote to accept or reject the Plan is May 11; -- May 14 at 11:15 a.m. is the time set for hearing to consider confirmation of the Plan. The Reorganization Plan Pursuant to the Plan, Giles-Jordan, Inc. will contribute its 39-acre property in Galveston, Texas, free and clear of all liens, claims and interests to 230 East Beach, Ltd., a Texas limited partnership. In consideration for the contribution, 230 East Beach will assume and pay all allowed claims. Preserve at East Beach, LLC, will be the general partner of 230 East Beach with a 60% interest in 230 East Beach. Giles-Jordan, Inc. will be a 40% limited partner in 230 East Beach. Frank Schaefer will loan 230 East Beach $1,500,000 ("Development Loan") for development of the property and receive in return a second lien in and against the property. 230 East Beach will begin operations once it receives the $1,500,000 in proceeds from the Development Loan (the "Investment Capital"). Prior to May 31, 2015, 230 East Beach will obtain exit financing from Moody National Bank in the form of a loan of $4,500,000 to satisfy the remaining indebtedness of Galveston Shores and pay all allowed claims. In consideration thereof, 230 East Beach will grant Moody National Bank a first priority lien against the Debtor's property. The Plan proposes to pay off claims as follows: -- 230 East Beach assume all of the Debtor's obligations to Galveston Shores L.P. As of Sept. 5, 2014, Galveston Shores had an allowed secured claim of $3,852,201 plus interest accruing. Prior to May 31, 2015, 230 East Beach will satisfy in full all amounts owed under the Galveston Shores Note from the proceeds of the exit loan. -- Each holder of the Allowed Unsecured Claims shall receive on the Effective Date cash from Available Cash, including cash on hand and available funds from the Investment Capital and/or Exit Loan. -- All ownership interests in the Reorganized Debtor will be retained by Mickey Giles. Any capital contributions paid postpetition by Mickey Giles will be converted to debt and assumed by the Reorganized Debtor from cash flow. A copy of the Third Amended Disclosure Statement filed April 25, 2015, is available for free at: http://bankrupt.com/misc/Giles-Jordan_3rd_Am_DS.pdf About Giles-Jordan, Inc. Giles-Jordan, Inc., filed a Chapter 11 bankruptcy petition in its hometown in Galveston, Texas (Bankr. S.D. Tex. Case No. 14-80173) on May 5, 2014. The Debtor disclosed $12 million in total assets and $4.81 million in liabilities, including $3.72 million of secured debt. Its lone asset is a 39.16-acre property at 230 East Beach Drive, in Galveston, Texas. Galveston Shores, LP, of Carlsbad, California, is the holder of the secured debt. The case is assigned to Judge Letitia Z. Paul. The Debtor is represented by Jeffrey Wells Oppel, Esq., at Oppel & Goldberg, PLLC, in Houston, Texas. GT ADVANCED: U.S. Trustee Wants Spending Examined ------------------------------------------------- Peg Brickley, writing for The Wall Street Journal, reported that William K. Harrington, U.S. Trustee for Region 2, have asked U.S. Bankruptcy Judge Henry Boroff in New Hampshire to appoint an independent examiner to oversee spending in the bankruptcy case of GT Advanced Technologies Inc. According to the Journal, Mr. Harrington wrote in court papers that with about a dozen firms already working on the Chapter 11 proceeding, keeping tabs on the bills could prove "especially challenging." GT Advanced's first round of bills averaged nearly $3 million a month, the Journal said. The Journal said the U.S. Trustee is calling on Joseph McMahon, a Delaware lawyer and 10-year veteran of the U.S. trustee's office, to review the fees of the GT Advanced firms. The company's lead bankruptcy lawyer, Luc Despins, said the firm won't oppose the motion, the Journal added. About GT Advanced Technologies Headquartered in Merrimack, New Hampshire, GT Advanced Technologies Inc. -- http://www.gtat.com/-- produces materials and equipment for the electronics industry. On Nov. 4, 2013, GTAT announced a multiyear supply deal with Apple Inc. to produce sapphire glass material for use in consumer electronics products. Under the deal, Apple would provide GTAT with a prepayment of approximately $578 million paid in four installments and, starting in 2015, GTAT would reimburse Apple for the prepayment over a five-year period. GT is a publicly held corporation whose stock was traded on NASDAQ under the ticker symbol "GTAT." GTAT was de-listed from the NASDAQ stock exchange in October 2014. As of June 28, 2014, the GTAT Group's unaudited and consolidated financial statements reflected assets totaling $1.5 billion and liabilities totaling $1.3 billion. As of Sept. 29, 2014, GTAT had $85 million in cash, $84 million of which is unencumbered. On Oct. 6, 2014, GT Advanced Technologies and eight affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D.N.H. Lead Case No. 14-11916). GT says that it has sought bankruptcy protection due to a severe liquidity crisis brought about by its issues with Apple. The Debtors have tapped Nixon Peabody LLP and Paul Hastings LLP as attorneys and Kurtzman Carson Consultants LLC as claims and noticing agent. The U.S. Trustee has named seven members to the Official Committee of Unsecured Creditors. The Committee' professionals are Kelley Drye as its bankruptcy counsel; Devine, Millimet & Branch, Professional Association as local counsel; EisnerAmper LLP as financial advisors; and Houlihan Lokey Capital, Inc. as investment banker. GTAT has reached a settlement with Apple. The settlement gives Apple an approved claim for $439 million secured by more than 2,000 sapphire furnaces that GT Advanced owns and has four years to sell, with proceeds going to Apple. In addition, Apple gets royalty-free, non-exclusive licenses for GTAT's technology. HALO SPORTS: Case Summary & 5 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Halo Sports Bar and Grill, Inc. 17122 Main Street Hesperia, CA 92345 Case No.: 15-14566 Chapter 11 Petition Date: May 6, 2015 Court: United States Bankruptcy Court Central District of California (Riverside) Judge: Hon. Scott C Clarkson Debtor's Counsel: Stephen R Wade, Esq. THE LAW OFFICES OF STEPHEN R WADE 350 W Fourth St Claremont, CA 91711 Tel: 909-985-6500 Fax: 909-399-9900 Email: srw@srwadelaw.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by George Thanos, president. A list of the Debtor's five largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb15-14566.pdf HANLIN AUTOMOTIVE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Hanlin Automotive, Inc. aka Auto Craft Body & Paint Co. 6009 Farrington Avenue Alexandria, VA 22304 Case No.: 15-11564 Nature of Business: Auto Body Repair Chapter 11 Petition Date: May 6, 2015 Court: United States Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Hon. Robert G. Mayer Debtor's Counsel: Bennett A. Brown, Esq. THE LAW OFFICE OF BENNETT A. BROWN 3905 Railroad Avenue, Suite 200N Fairfax, VA 22030 Tel: 703-591-3500 Fax: 703-352-5122 Email: bennett@pcgalaxy.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Edison Flores, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/vaeb15-11564.pdf HCA INC: Fitch Assigns 'BB-' Rating on $1.6 Billion Senior Notes ---------------------------------------------------------------- Fitch Ratings has assigned a 'BB-' rating to HCA Inc.'s $1.6 billion senior notes. Fitch expects that the company will apply the proceeds of the proposed notes to refinance senior debt obligations of HCA Holdings, Inc. The Rating Outlook is Stable. The ratings apply to $29.4 billion of debt outstanding at March 31, 2015. KEY RATING DRIVERS Hospital Industry-Leading Financial Flexibility: HCA's financial flexibility has improved significantly in recent years as a result of organic growth in the business as well as proactive management of the capital structure. The company has industry-leading operating margins and generates consistent and ample discretionary FCF (operating cash flows less capital expenditures and distributions to minority interests). Transition to Public Ownership: The sponsors of a 2006 LBO previously directed HCA's financial strategy, but their ownership stake decreased steadily following a 2011 IPO and HCA has appointed four new independent members to the 11-member board of directors (BOD), bringing the total to seven. Shifting Priorities for Cash Deployment: Under the direction of the LBO sponsors, HCA's ratings were constrained by shareholder-friendly capital deployment; the company has funded $7.4 billion in special dividends and several large repurchases of the sponsors' shares since 2010. Fitch thinks HCA will have a more consistent and predictable approach to funding shareholder payouts under public ownership and an independent BOD. Expect Nominal Deleveraging: Fitch forecasts that HCA will produce discretionary FCF (operating cash flows less capital expenditures and distributions to minority interests) of about $1.6 billion in 2015, and will prioritize use of cash for organic investment in the business, acquisitions and share repurchases. At 3.8x, HCA's gross debt/EBITDA is below the average of the group of publicly traded hospital companies and Fitch does not believe that there is a compelling financial incentive for HCA to apply cash to debt reduction. Secular Headwinds to Operating Outlook: Measured by revenues, HCA is the largest operator of for-profit acute care hospitals in the country, with a broad geographic footprint. The company benefited from this favorable operating profile during a period of several years of weak organic operating trends in the for-profit hospital industry. Although operating trends improved industrywide starting in mid-2014, secular challenges, including a shift to lower-cost care settings and health insurer scrutiny of hospital care, are a continuing headwind to organic growth. Liquidity Profile is Solid: At March 31, 2015, HCA's liquidity included $586 million of cash on hand, $2.6 billion of available capacity on its bank facility revolving loans and LTM discretionary FCF of about $2.3 billion. HCA's EBITDA/gross interest expense is solid for the 'BB-' rating category at 4.4x and the company has ample operating cushion under its bank facility financial maintenance covenants, which require debt net of cash maintained below 6.75x EBITDA. Debt Maturities are Manageable: Fitch believes that HCA's favorable operating outlook and financial flexibility afford the company good market access to refinance upcoming maturities. Large upcoming maturities include $1 billion of HCA Inc. unsecured notes and $1.23 billion of bank term loans maturing in 2016. Proceeds of the proposed notes issuance will be used to refinance the 7.75% $1.525 billion senior notes due 2021 of HCA Holdings, Inc., which are structurally subordinate to the debt obligations of HCA Inc. RATING SENSITIVITIES If HCA consistently operates with leverage below 4.0x over the next several quarters, it could support an upgrade of the IDR to 'BB'. In addition to a commitment to operate with lower leverage, sustained improvement in organic operating trends in the hospital industry would support a higher rating for HCA. Fitch believes the hospital industry may post another couple of quarters of above-trend growth in patient volumes as the positive effects of the Affordable Care Act gain momentum in 2015. However, secular headwinds to growth remain intact over the longer term. Maintenance of the 'BB-' Issuer Default Rating (IDR) considers HCA operating with total debt/EBITDA below 4.5x, and with an FCF margin of 4% or higher. A downgrade of the IDR to 'B+' is unlikely in the near term, since these targets afford HCA with significant financial flexibility to increase capital investment and acquisitions while still applying some cash to share repurchases. KEY ASSUMPTIONS -- Very strong rates of organic volume growth in the first half of 2015, supported by ramp up of ACA related benefit and improving economic conditions, tapering to a more normalized 2-3% later in the year; -- Modest EBITDA margin compression in later 2015-2016 primarily resulting from negative operating leverage as volume growth rates normalize and pricing trends remain stable; -- EBITDA of $7.8 billion and discretionary FCF of $1.6 billion in 2015 with higher capital expenditures of about $2.5 billion; higher capital spending is related to growth projects that support the expectation of EBITDA growth through the forecast period; -- The majority of discretionary FCF is directed towards share repurchases and acquisitions, and all debt coming due is refinanced; resulting in gross debt/EBITDA of 3.5x-4.0x through the forecast period. DEBT ISSUE RATINGS Fitch currently rates HCA as: HCA, Inc. -- IDR 'BB-'; -- Senior secured credit facilities (cash flow and asset backed) 'BB+'; -- Senior secured first lien notes 'BB+'; -- Senior unsecured notes 'BB-'. HCA Holdings Inc. -- IDR 'BB-'; -- Senior unsecured notes 'B'. Total debt of approximately $29.4 billion includes $8.1 billion of first-lien secured bank debt, $11.1 billion of first-lien secured notes, $7.1 billion of HCA Inc. unsecured notes, and $2.5 billion of Hold Co. unsecured notes. HCA's bank debt comprises approximately $5.5 billion in term loans maturing through May 2018: a $2 billion capacity cash flow revolving loan and a $3.25 billion capacity asset-based revolving loan (ABL facility). The secured debt rating is two notches above the IDR, illustrating Fitch's expectation of superior recovery prospects in the event of default. The first-lien obligations, including the bank debt and the first-lien secured notes, are guaranteed by all material wholly owned U.S. subsidiaries of HCA, Inc. that are 'unrestricted subsidiaries' under the HCA Inc. unsecured note indenture dated Dec. 16, 1993. The HCA Inc. unsecured notes are rated at the same level as the IDR despite the substantial amount of secured debt to which they are subordinated, with secured leverage of about 2.5x. Fitch often notches ratings on unsecured debt obligations below the IDR level when secured debt leverage is greater than 2.5x. The strength and stability of HCA's cash flows supports an expectation of at least average recovery for these lenders relative to historical rates in an event of default, supporting a rating at the same level as the IDR. However, if HCA were to layer more secured debt into the capital structure, such that secured debt leverage is greater than 3.0x, it could result in a downgrade of the rating on the HCA Inc. unsecured notes to 'B+'. The HCA Holdings Inc. unsecured notes are rated two notches below the IDR to reflect the substantial structural subordination of these obligations, which are subordinate in right of payment to all debt outstanding at the HCA Inc. level. Leverage at the HCA Inc. and HCA Holdings Inc. level is 3.5x and 3.8x, respectively. HCA INC: Moody's Ba3 CFR Unaffected by $1.6BB Bond Offering ----------------------------------------------------------- Moody's Investors Service commented that the proposed offering of $1.6 billion of senior unsecured notes by HCA, Inc. has no impact on the company's ratings. The issuance is an add-on to the company's existing 5.375% senior notes due 2025, which are rated B2 (LGD 5). Moody's understands that the proceeds of the offering will be used to fund the redemption of HCA Holdings, Inc.'s $1.525 billion of 7.75% senior notes due 2021. HCA, Inc. is a wholly owned subsidiary of HCA Holdings, Inc. (collectively HCA or the company). HCA's existing ratings, including the company's Ba3 Corporate Family Rating and Ba3-PD Probability of Default Rating, remain unchanged as Moody's does not anticipate a meaningful change in leverage from this refinancing transaction. The stable rating outlook is also unchanged. HCA's Ba3 Corporate Family Rating reflects Moody's expectation that HCA's scale and dominant market strength will allow the company to continue to grow revenue and maintain healthy EBITDA margins. HCA's scale and position as the largest for-profit hospital operator in terms of revenue, aids its ability to leverage investments and resources needed to adapt to changes in the sector and weather industry challenges. While Moody's anticipates that the company will continue to return capital to shareholders in lieu of debt repayment, as evidenced by the recent authorization for another $1.0 billion in share repurchases, the rating agency expects that HCA will generate sufficient cash to fund moderate sized acquisitions with little detrimental impact on credit metrics. The principal methodology used in these ratings was Global Healthcare Service Providers published in December 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. HCA Inc. is a wholly owned subsidiary of HCA Holdings, Inc. (collectively HCA). Headquartered in Nashville, Tennessee, HCA is the nation's largest acute care hospital company as measured by revenue. The company generated revenue in excess of $37 billion, net of the provision for doubtful accounts, in the twelve months ended March 31, 2015. HCA INC: S&P Assigns 'B+' Rating on Proposed $1.6BB Unsecured Notes ------------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' issue-level rating (two notches below the corporate credit rating) to Nashville-based HCA Inc.'s proposed $1.6 billion senior unsecured notes, which are being issued to refinance debt at the holding company level. S&P assigned a '6' recovery rating to this debt, indicating its expectation of negligible (0% to 10%) recovery for bondholders in the event of a payment default. The issue-level ratings are the same as S&P's existing senior unsecured ratings. S&P's 'BB' corporate credit rating on HCA reflects S&P's view that its scale relative to other healthcare services peers should allow the company to better offset declining reimbursement rates with cost reduction efforts, and that its scale and market presence should aid in contract negotiations with commercial payors. In addition, HCA's business is diversified beyond inpatient hospital services, with about 38% of revenues coming from outpatient procedures. These factors are only partially offset by S&P's view that HCA is exposed to reimbursement pressure as government and commercial payors seek to control costs, and its business is geographically concentrated in two states, Texas and Florida, which together represent about half of the company's revenues. Collectively, these factors support S&P's assessment of a "satisfactory" business risk profile. S&P's ratings on HCA also reflect S&P's view that the company will maintain leverage around 4x and generate funds from operations (FFO) to total debt in the mid- to high-teens area, consistent with the stronger end of an "aggressive" financial risk profile. S&P's ratings also incorporate its expectation that HCA will generate around $4.4 billion in operating cash flow in 2015, but S&P expects the company to continue to invest heavily in capital expenditures, and to continue to prioritize shareholder return over debt repayment. RATINGS LIST HCA Inc. Corporate Credit Rating BB/Stable/-- New Rating HCA Inc. $1.6 Bil. Sr Unsec. Notes Due 2025 B+ Recovery Rating 6 HORIZON LINES: Posts $23.8 Million Net Loss in First Quarter ------------------------------------------------------------ Horizon Lines, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $23.82 million on $181 million of operating revenue for the quarter ended March 22, 2015, compared to a net loss of $26.2 million on $183 million of operating revenue for the quarter ended March 23, 2014. As of March 22, 2015, the Company had $542 million in total assets, $711 million in total liabilities, and a $169 million total stockholders' deficiency. "Horizon Lines' first-quarter adjusted EBITDA increased 64.2% over the same period a year ago. The improvement in adjusted EBITDA was driven largely by improved fuel recovery, lower transit and replacement vessel costs associated with dry-docking of our vessels and higher volume," said Steve Rubin, president and chief executive officer. "The factors driving adjusted EBITDA growth were partially offset by modestly lower rates, net of fuel; productivity losses in connection with the west coast ILWU negotiations and the resulting congestion impact and higher vessel operating costs. Results represent the fourth consecutive quarter of growth in adjusted EBITDA over prior-year results." The company had total liquidity of $57.7 million as of March 22, 2015, consisting of cash of $10.4 million and $47.3 million available under its asset-based loan (ABL) revolving credit facility. A copy of the Form 10-Q is available for free at: http://is.gd/usCgQa About Horizon Lines Horizon Lines, Inc., is a domestic ocean shipping company and the only ocean cargo carrier serving all three noncontiguous domestic markets of Alaska, Hawaii and Puerto Rico from the continental United States. The company owns a fleet of 13 fully Jones Act qualified vessels and operates five port terminals in Alaska, Hawaii and Puerto Rico. A trusted partner for many of the nation's leading retailers, manufacturers and U.S. government agencies, Horizon Lines provides reliable transportation services that leverage its unique combination of ocean transportation and inland distribution capabilities to deliver goods that are vital to the prosperity of the markets it serves. The company is based in Charlotte, NC, and its stock trades on the over-the-counter market under the symbol HRZL. Horizon Lines reported a net loss of $94.6 million for the year ended Dec. 21, 2014, compared to a net loss of $31.9 million for the year ended Dec. 22, 2013. * * * In June 2012, Moody's Investors Service affirmed Horizon Lines' Corporate Family Rating and Probability of Default Rating at 'Caa2' and removed the 'LD' ("Limited Default") designation from the rating in recognition of the conversion to equity of the $228 million of Series A and Series B Convertible Senior Secured notes due in October 2017 ("Notes"). Moody's said the affirmation of the CFR and PDR considers that total debt has been reduced by the conversion of the Notes, but also recognizes the significant operating challenges that the company continues to face. HOST HOTELS: S&P Affirms 'BB+' Corporate Credit Rating ------------------------------------------------------ Standard & Poor's Ratings Services assigned Bethesda, Md.-based Host Hotels & Resorts L.P.'s proposed $400 million series E senior notes due 2025 a 'BBB' issue-level rating. The recovery rating is '1', indicating S&P's expectation for very high (90% to 100%) recovery for lenders in the event of a payment default. The company will use a combination of the proceeds from the debt issuance and cash on hand to redeem its outstanding 5.875% $500 million series X notes due 2019, at an aggregate redemption price of $515 million. The proposed senior notes and the company's existing senior notes and debenture indentures have released former subsidiary guarantees and stock pledges under provisions in the indentures that require the same guarantees and collateral provided to the revolving credit facility. Effectively, the existing senior notes are currently unsecured. However, if Host's leverage ratio exceeds 6x for two consecutive fiscal quarters at a time when Host does not have an investment-grade, long-term unsecured debt rating, the subsidiary guarantees and equity pledges will spring back into place in Host's revolver and note indentures. S&P's simulated default scenario for Host incorporates the assumption that the company's leverage ratio will be above 6x, and the notes would be secured at that time. "Our 'BB+' corporate credit rating and stable outlook on Host are unchanged. Our "significant" financial risk assessment of Host reflects our belief that the company will sustain debt to EBITDA of less than 4x and funds from operations (FFO) to debt of greater than 20% through 2016. Our current forecast incorporates our expectation that 2015 revenue and EBITDA will be negatively affected by asset dispositions in 2014 that exceeded acquisitions, and renovation disruption. However, as underlying fundamental operating performance at the company remains good, we continue to expect that total joint venture and operating lease-adjusted debt to EBITDA will be in the low-3x area, FFO to total adjusted debt will be in the mid-20% area, and that liquidity will remain strong through 2016. These expected measures represent a good cushion compared with our 4x total adjusted debt to EBITDA and 20% FFO to adjusted debt thresholds for our significant financial risk assessment of Host," S&P said. "Our assessment of Host's business risk profile as "satisfactory" reflects the company's high-quality and geographically diversified hotel portfolio in the U.S., strong brand relationships, and experienced management team. Partly offsetting these positive attributes are the cyclical nature of the lodging industry and the associated revenue and earnings volatility of the company's owned hotel portfolio," S&P added. RATINGS LIST Ratings Unchanged Host Hotels & Resorts L.P. Host Hotels & Resorts Inc. Corporate Credit Rating BB+/Stable/-- New Rating Host Hotels & Resorts L.P. $400 mil. ser E sr nts due 2025 BBB Recovery rating 1 HUTCHESON MEDICAL: Erlanger Blocks Bid to Amend Counter-Claim ------------------------------------------------------------- TheChattanoogan.com reports that Erlanger Health System is asking Federal Judge Harold Murphy to not allow Hutcheson Medical Center Inc. to amend its counter-claim filed after Erlanger demanded payment for helping to prop up the financially-ailing Fort Oglethorpe Hospital. As reported by the Troubled Company Reporter on April 15, 2015, Law360 reported that HMC accused former counsel Ward Nelson of Miller & Martin PLLC of passing along to Erlanger representatives confidential information on HMC's negotiating position in a $20 million agreement Erlanger signed to help keep the hospital afloat, and "as a result, Erlanger was able to secretly conspire with Miller & Martin to steer HMC towards execution of a series of contracts that are highly favorable to Erlanger." HMC's lawyers have "resorted to desperate tactics" in "desiring to escape from a $20 million debt without paying a cent," TheChattanoogan.com states, citing Erlanger's lawyers. Erlanger said HMC has had the e-mails in question for some six months and said they are "mostly non-remarkable" and did not give Erlanger any advantage, TheChattanoogan.com relates. According to court documents, Erlanger's lawyers don't deny that Mr. Nelson gave their client's officials e-mails to and from HMC's leaders. Erlanger's lawyers explained in court filings that the e-mails between HMC and Mr. Nelson weren't protected by attorney-client privilege because other people besides Erlanger officials read the messages. The Catoosa and Walker county commissioners and lawyers also saw the e-mails, Timesfreepress.com adds. HMC added about $250,000 to its cash account during March 2015 and now has a cash balance of slightly less than $1 million, Mike O'Neal, writing for Northwestgeorgiannews.com, reports, citing the hospital's president and CEO, Farrell Hayes. The report quoted Mr. Hayes as saying, "We spent $351,000 more than we collected during the last 4-1/2 months. April was the best month in a long time, cash-wise, and we should have $1 million in the bank by the end of the month." 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. INFILTRATOR SYSTEMS: S&P Assigns 'B' CCR; Outlook Stable -------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'B' corporate credit rating to Infiltrator Systems Inc. (ISI). The outlook is stable. At the same time, Standard & Poor's assigned its 'B+' issue-level rating (one-notch higher than the corporate credit rating) to the company's proposed $40 million revolving credit facility due 2020 and $230 million first-lien senior secured term loan due 2022. In addition, S&P assigned its 'CCC+' issue-level rating (two-notches lower than the corporate credit rating) to the company's proposed $115 million second-lien term loan due 2023. The recovery rating on the revolving credit facility and the first-lien senior secured term loan is '2', indicating S&P's expectation of substantial (70% to 90%; higher end of the range) recovery for lenders in the event of a payment default. The recovery rating on the second-lien term loan is '6', indicating S&P's expectation of negligible (0% to 10%) recovery for lenders in the event of a payment default. The stable outlook reflects S&P's expectation that Infiltrator Systems will maintain its operating profitability while increasing revenues in line with single-family home construction in the U.S. and Canada. "Given our expectations for continued penetration of Infiltrator's plastic septic and wastewater products at the expense of traditional stone and concrete alternatives, we project that the company could reduce debt to EBITDA to below 5x by the middle of 2016," said Standard & Poor's credit analyst Thomas Nadramia. "However, given Infiltrator's still small size and limited product scope, we would likely maintain our 'B' rating given its "weak" business risk profile and the risk of subsequent leveraging given its ownership by a financial sponsor." Given S&P's outlook for increased housing starts in the U.S. over the next three years, S&P views a downgrade as unlikely because it expects Infiltrator will continue to post double-digit percentage growth in sales and EBITDA over that time. However, S&P could lower the rating if ownership adopted a much more aggressive financial risk profile, using debt to fund acquisitions or dividends such that debt leverage exceeded 8x or if liquidity became "less than adequate". S&P considers an upgrade unlikely in the next 12 months. However, S&P could raise its rating on ISI if it increased its size and market share while achieving credit measures commensurate with an "aggressive" financial risk profile and if S&P believed the company's sponsor owners would pursue a prudent financial policy in which debt leverage would be sustained below 5x. INTEGRATED FREIGHT: Swings to $1.43 Million Net Loss in 2014 ------------------------------------------------------------ Integrated Freight Corporation filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $1.43 million on $20.2 million of revenue for the year ended March 31, 2014, compared with net income of $4.81 million on $20.1 million of revenue for the year ended March 31, 2013. As of March 31, 2014, the Company had $4.78 million in total assets, $17.7 million in total liabilities and a $12.9 million total stockholders' deficit. DKM Certified Public Accountants, in Clearwater, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has significant net losses and cash flow deficiencies. Those conditions raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-K is available for free at: http://is.gd/XgAAbB About Integrated Freight Integrated Freight Corporation, formerly PlanGraphics, Inc., (OTC BB: IFCR) -- http://www.integrated-freight.com/-- is a Sarasota, Florida headquartered motor freight company providing long-haul, regional and local service to its customers. The Company specializes in dry freight, refrigerated freight and haz-waste truckload services, operating primarily in well-established traffic lanes in the upper mid-West, Texas, California and the Atlantic seaboard. IFCR was formed for the purpose of acquiring and consolidating operating motor freight companies. ISOLA USA: S&P Revises Outlook to Negative & Affirms 'B-' CCR ------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook to negative from stable and affirmed its 'B-' corporate credit rating on Chandler, Ariz.-based Isola USA Corp. At the same time, S&P is affirming its 'B-' issue-level rating, with a recovery rating of '3', on the company's $250 million senior secured term loan due 2018. The '3' recovery rating indicates S&P's expectation for meaningful recovery (50% to 70%, in the lower half of the range) in the event of payment default. "The outlook revision reflects our view that if weakening industry conditions continue, resulting in declining cash balances, we could lower the rating," said Standard & Poor's credit analyst Christian Frank. KARMALOOP INC: Defeats U.S. Trustee's Bid to DQ Bankruptcy Counsel ------------------------------------------------------------------ Law360 reported that a Delaware bankruptcy judge authorized Karmaloop Inc. to employ Burns & Levinson LLP as counsel in its Chapter 11 case despite opposition from the U.S. Trustee's Office, finding no conflicts of interest that would prevent the firm from working for the online retailer. According to the report, U.S. Bankruptcy Judge Mary F. Walrath in Wilmington, Del., approved the retention of Burns & Levinson, ruling the U.S. Trustee's concerns about financial and familial relationships between the firm's attorneys and Karmaloop were not sufficient reasons for disqualification. As previously reported by The Troubled Company Reporter, citing Reuters, Andrew Vara, Acting U.S. Trustee for Region 3, is seeking to disqualify Burns & Levinson to represent Karmaloop, citing investments two partners had in the company and an associate's marriage to a top company officer. Two partners at Burns & Levinson made secured loans to Karmaloop and own chunks of stock or warrants that generally date back to the period when there was on-again, off-again talk that the online retailer would launch into the public stock market. About Karmaloop Inc. Karmaloop, Inc., founded in 1999 by Gregory Selkoe, is a cross-platform digital commerce and media property company that specializes in the sale of global streetwear fashion and culture. Karmaloop specializes in the sale of over 400 brands of apparel, shoes and accessories via an e-commerce business model, primarily using the Web site http://wwww.karmaloop.com/ The company has nearly 5 million monthly unique visitors, 2.2 million Facebook followers and 800,000 Twitter followers. On March 23, 2015, Karmaloop, Inc. and KarmaloopTV, Inc. filed voluntary Chapter 11 bankruptcy petitions in the United States Bankruptcy Court for the District of Delaware (Lead Case No. 15-10635. The cases are assigned to Judge Kevin J. Carey. The Debtors tapped Burns & Levinson LLP and Womble Carlyle Sandridge & Rice, LLP as attorneys; CRS Capstone Partners LLC as financial advisor and Capstone's Brian L. Davies, Jr., as restructuring officer; and Omni Management Group, LLC as claims and noticing agent. The U.S. Trustee for Region 3 appointed five creditors of Karmaloop Inc. to serve on the official committee of unsecured creditors. KIOR INC: Hearing on Miss. Agency's Standing Bid Pushed Back ------------------------------------------------------------ Law360 reported that U.S. Bankruptcy Judge Christopher S. Sontchi in Delaware ruled that the Mississippi Development Authority had identified plausible claims that some of biofuel developer KiOR Inc.'s senior debt could be recharacterized as equity, but pushed back the fight over whether the agency can pursue them until after he considers a Chapter 11 plan. According to the report, Judge Sontchi postponed the conclusion of a hearing over whether the MDA, which says it is the largest noninsider creditor in the case, should be granted derivative standing. As previously reported by The Troubled Company Reporter, the MDA's motion for standing and authority to prosecute derivative claims on behalf of KiOR's estate is facing objections from the Debtor and the lenders that are being targeted by MDA's suit. On Jan. 13, 2015, the State of Mississippi filed a lawsuit in Mississippi state court against certain of the Debtor's prepetition lenders, along with officers and directors of the Debtor. On Jan. 14, 2015, the MDA filed with the Bankruptcy Court its original motion for authority to pursue claims, stating that the Debtor failed to undertake any due diligence regarding the claims of the prepetition secured lenders, namely the KFT Trust, Khosla Ventures III LP, VNK Management LLC, 1538731 Alberta Ltd., 1538716 Alberta Ltd., and KFT trustee Vinod Khosla. In the amended motion and revised proposed complaint (filed on March 23, 2015), MDA asserts against the Alberta Lenders he same equitable subordination claims they previously asserted only against the Khosla Entities. About KiOR Inc. KiOR, Inc., and wholly owned subsidiary KiOR Columbus, LLC, are development stage, renewable fuels companies based in Pasadena, Texas and Columbus, Mississippi, respectively. KiOR, Inc., was founded in 2007 as a joint venture between Khosla Ventures, LLC, and BIOeCon B.V. KiOR Inc.'s primary business is the development and commercialization of a ground-breaking proprietary technology designed to generate a renewable crude oil from non-food cellulosic biomass. KiOR, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 14-12514) on Nov. 9, 2014, in Delaware. Through the chapter 11 case, the Debtor intends to reorganize its business or sell substantially all of its assets so that it can continue its core research and development activities. KiOR Columbus did not seek bankruptcy protection. The Debtor disclosed $58.3 million in assets and $261 million in liabilities as of June 30, 2014. The Debtor is represented by Mark W. Wege, Esq., Edward L. Ripley, Esq., and Eric M. English, Esq., at King & Spalding, LLP, in Houston, Texas; and John Henry Knight, Esq., Michael Joseph Merchant, Esq., and Amanda R. Steele, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware. The Debtor's financial advisor is Alvarez & Marsal. Guggenheim Securities, LLC, is the Debtor's investment banker. Epiq Bankruptcy Solutions, LLC, is the Debtor's claims and noticing agent. Pasadena Investments, LLC, as administrative agent for a consortium of lenders, committed to provide up to $15 million in postpetition financing. The DIP Agent is represented by Thomas E. Patterson, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, in Los Angeles, California, and Michael R. Nestor, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. LAKELAND INDUSTRIES: Delays Filing of 2014 Form 10-K ---------------------------------------------------- Lakeland Industries, Inc. said it will be delayed in the filing of its annual report on Form 10-K for the fiscal year ended Jan. 31, 2015, due to the ongoing exploration of strategic alternatives by the Company in respect of a discontinuance of its Brazilian operations and the additional time required by the Company to determine the disclosures associated with accounting for the Company's discontinued Brazilian operations and related issues. For the nine months ended Oct. 31, 2014, the Company reported a net loss of $2,885,895 versus net income of $1,491,439 for the comparable period of the prior year. The Company expects to report significant net income for the fourth quarter of the fiscal year ended Jan. 31, 2015, as compared to a loss reported in the comparable period of the prior year. The Company also anticipates that revenues in the fourth quarter of fiscal 2015 will be substantially greater than those of the fourth quarter of fiscal 2014. These favorable results are due in part to an increase in sales of specialty protective suits worn by healthcare workers and others in view of the recent Ebola crisis and otherwise overall strengthening of the Company's operations. About Lakeland Industries Ronkonkoma, N.Y.-based Lakeland Industries, Inc., manufactures and sells a comprehensive line of safety garments and accessories for the industrial protective clothing market. The Company reported a net loss of $26.3 million on $95.1 million of net sales for the year ended Jan. 31, 2013, as compared with a net loss of $377,000 on $96.3 million of sales for the year ended Jan. 31, 2012. In their report on the consolidated financial statements for the year ended Jan. 31, 2013, Warren Averett, LLC, in Birmingham, Alabama, expressed substantial doubt about Lakeland Industries' ability to continue as a going concern. The independent auditors noted that the Company is in default on certain covenants of its loan agreements at Jan. 31, 2013. As of Oct. 31, 2014, the Company had $86.8 million in total assets, $31.8 million in total liabilities and $54.9 million in total stockholders' equity. LAKELAND INDUSTRIES: Determines to Exit Brazil ---------------------------------------------- The Board of Directors of Lakeland Industries, Inc. determined to exit the Brazilian market as the Company's Brazilian operations have been unprofitable over the last several years. After extensively considering a number of options and the advice of Brazilian legal counsel, the Board of Directors approved a sale of the Company's wholly-owned Brazilian subsidiary, Brasil Industria E Comercio de Roupas E Equipamentos de Protecao Individual LTDA, to a current officer of Lakeland Brazil, subject to successful negotiation and entry into a definitive agreement. It is intended that the sale involve the assumption of a substantial amount of liabilities by the buyer and additional funding from the Company. The sale is also subject to the approval of the Company's senior lender, Alostar Bank of Commerce. The Company anticipates receiving formal approval from the bank in approximately forty-five days. The Company expects that the sale of Lakeland Brazil will occur during the second quarter of fiscal 2016. There can be no assurances that the sale will be successfully consummated. Christopher J. Ryan, president and chief executive officer of Lakeland Industries, commented, "Once fully implemented, the plan to exit from our operations in Brazil is expected to deliver multiple benefits. These advantages are worth the more complex accounting work and potential continuing liabilities from, among other things, labor disputes, VAT taxes and other issues faced by the Company in Brazil. The Company's financial performance will be improved since we will be formally discontinuing operations and thereby removing the Brazil business unit's contributions which in recent years had been experiencing net losses amid declining revenues. The end results anticipate the removal of a business that has been a drain on management's time and our consolidated financial performance for the past several years, and that ultimately our actions will favorably contribute to improvements in net income and cash flow." During the course of its operations in Brazil, the Company's Brazilian subsidiary has been named in numerous labor proceedings in Brazilian courts in which plaintiffs are seeking a total of nearly US $8,000,000 in damages from the Brazilian subsidiary. The Company believes many of these claims are without merit and the amount of damages being sought is significantly higher than any damages which may have been incurred. The Company estimates these claims can ultimately be resolved for less than US $1,000,000, but it is reasonably possible that the amount may be as high as US $1,500,000. In the case of a sale of the Company's Brazilian subsidiary, the buyer would assume these liabilities, as well as the Brazilian subsidiary's VAT tax liabilities. In order to effectuate a sale and aid the buyer to meet these and other liabilities, it is anticipated the Company would contribute funding of slightly less than US $1,600,000 to the buyer, subject to possible repayment from the buyer and possible recoupment through a land sale. About Lakeland Industries Ronkonkoma, N.Y.-based Lakeland Industries, Inc., manufactures and sells a comprehensive line of safety garments and accessories for the industrial protective clothing market. The Company reported a net loss of $26.3 million on $95.1 million of net sales for the year ended Jan. 31, 2013, as compared with a net loss of $377,000 on $96.3 million of sales for the year ended Jan. 31, 2012. In their report on the consolidated financial statements for the year ended Jan. 31, 2013, Warren Averett, LLC, in Birmingham, Alabama, expressed substantial doubt about Lakeland Industries' ability to continue as a going concern. The independent auditors noted that the Company is in default on certain covenants of its loan agreements at Jan. 31, 2013. As of Oct. 31, 2014, the Company had $86.8 million in total assets, $31.8 million in total liabilities and $54.9 million in total stockholders' equity. LPHM INC: Case Summary & 7 Largest Unsecured Creditors ------------------------------------------------------ Debtor: LPHM, Inc. dba Colosseum Diner 1932 East Saint Georges Avenue Linden, NJ 07036 Case No.: 15-18535 Chapter 11 Petition Date: May 6, 2015 Court: United States Bankruptcy Court District of New Jersey (Newark) Judge: Hon. Vincent F. Papalia Debtor's Counsel: Andrew I. Radmin, Esq. CARKHUFF & RADMIN P.C. 598-600 Somerset St. North Plainfield, NJ 07060 Tel: (908) 754-9400 Email: andyradz@aol.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Petnos Pothetos, owner. A list of the Debtor's seven largest unsecured creditors is available for free at http://bankrupt.com/misc/njb15-18535.pdf MAGNETATION LLC: Moody's Lowers Corp. Family Rating to 'C' ---------------------------------------------------------- Moody's Investors Service downgraded Magnetation LLC's Probability of Default Rating to D-PD from Caa2-PD and the Corporate Family Rating to C from Caa2. Moody's also downgraded the senior secured notes to C from Caa2. The downgrades were prompted by the company's May 5, 2015 announcement that it voluntarily filed for relief under Chapter 11 of the United States Bankruptcy Code. The outlook is stable. Downgrades: Issuer: Magnetation LLC -- Corporate Family Rating, Downgraded to C from Caa2 -- Probability of Default Rating, Downgraded to D-PD from Caa2- PD -- Senior Secured Regular Bond/Debenture (Local Currency), Downgraded to C, LGD4 from Caa2, LGD4 Outlook Actions: Issuer: Magnetation LLC -- Outlook, Changed To Stable From Negative The downgrade follows yesterday's announcement that Magnetation and substantially all of its wholly owned subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York. The company has received a $135 million debtor-in-possession financing (DIP Financing), which, subject to approval by the bankruptcy court, will be used to support Magnetation's operations over the course of the reorganization. Subsequent to the actions, Moody's will withdraw all ratings. Please refer to Moody's Withdrawal Policy on moodys.com Magnetation LLC's ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside Magnetation LLC's core industry and believes Magnetation LLC's ratings are comparable to those of other issuers with similar credit risk. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Grand Rapids, Minnesota, Magnetation LLC reclaims iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins located on the Mesabi Iron Range. The company currently owns and operates two reclamation plants located in Keewatin (idled) and Taconite, MN, which produce iron ore concentrate from iron ore tailings. The company is in the process of constructing a 3 million metric ton per year iron ore pellet plant in Reynolds, Indiana and an additional concentrate reclamation plant in Grand Rapids, MN. The company generated approximately $96 million in revenues for the fiscal ending period, December 31, 2014. Magnetation is a joint venture between Magnetation Inc. (50.1% ownership) and AK Steel Corporation (49.9% ownership). MAGNETATION LLC: S&P Lowers CCR to 'D' on Chapter 11 Filing ----------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its corporate credit rating on Grand Rapids, Minn.-based Magnetation LLC to 'D' from 'B-'. S&P also lowered all its issue-level ratings on the company's debt issuances to 'D' from 'B-'. The rating action follows the company's filing of a petition under Chapter 11 of the U.S. Bankruptcy Code. The 'D' rating on Magnetation LLC reflects the company's default due to its filing voluntary petitions for Chapter 11 bankruptcy protection. The iron ore concentrate and pellet producer intends to work with creditors to restructure its balance sheet. In addition, the company entered into an agreement with certain noteholders on a $135 million debtor in possession secured credit facility, which it expects will be sufficient to support operations during the restructuring process. MF GLOBAL: PwC Liability in Fiasco a Close Call in 2nd Circuit -------------------------------------------------------------- Law360 reported that commodities futures investors who say PricewaterhouseCoopers LLP bears liability for failing to install controls that would have kept MF Global Inc. brass from looting customer accounts found some sympathy in the Second Circuit, but the accounting firm had powerful precedent on its side in a close appeal. According to the report, investors including Bearing Fund LP pressed Judges Dennis Jacobs, Rosemary S. Pooler and Peter W. Hall to undo U.S. District Judge Victor Marrero's 2014 decision to let the accounting firm off the hook for negligence in connection with the collapse of MF Global. About MF Global New York-based MF Global -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058), after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. On Nov. 7, 2011, the United States Trustee appointed the statutory creditors' committee in the Debtors' cases. At the behest of the Statutory Creditor's Committee, the Court directed the U.S. Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy Court entered an order approving the appointment of Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC, as Chapter 11 trustee. On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On Dec. 27, the Court entered an order installing Mr. Freeh as Chapter 11 Trustee of the New Debtors. On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr. Freeh also was installed as its Chapter 11 Trustee. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. The Official Committee of Unsecured Creditors has retained Capstone Advisory Group LLC as financial advisor, while lawyers at Proskauer Rose LLP serve as counsel. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. In April 2013, the Bankruptcy Court approved MF Global Holdings' plan to liquidate its assets. Bloomberg News reported that the court-approved disclosure statement initially told creditors with $1.134 billion in unsecured claims against the parent holding company why they could expect a recovery of 13.4% to 39.1% from the plan. As a consequence of a settlement with JPMorgan, supplemental materials informed unsecured creditors their recovery was reduced to the range of 11.4% to 34.4%. Bank lenders will have the same recovery on their $1.174 billion claim against the holding company. As a consequence of the settlement, the predicted recovery became 18% to 41.5% for holders of $1.19 billion in unsecured claims against the finance subsidiary, one of the companies under the umbrella of the holding company trustee. Previously, the predicted recovery was 14.7% to 34% on bank lenders' claims against the finance subsidiary. MICHAEL VALONE: Gets $4,000 Boost from 11th Circuit --------------------------------------------------- Bill Rochelle, a bankruptcy columnist for Bloomberg News, reported that the U.S. Court of Appeals for the Eleventh Circuit ruled that bankrupt Florida homeowners with no equity in their homes can benefit by $4,000. According to Mr. Rochelle, writing for the appeals court, U.S. Circuit Judge Charles R. Wilson said said it was "exceedingly clear" from the Florida statute -- granting grants a $4,000 exemption in personal property for anyone who "does not claim or receive the benefits of a homestead exemption" -- that the loss of the $4,000 exemption is triggered by the homestead exemption alone, because state law doesn't mention any form of bankruptcy. The Bloomberg report related that a couple filed in Chapter 13 owning a home worth less than its mortgages and they didn't claim Florida's unlimited homestead exemption because there was nothing for the creditors to take. The appeals case is In Re: Michael Valone, a.k.a. Michael K. Valone, a.k.a. Michael Keith Valone, Kristie Valone, a.k.a. Kristie N. Valone, a.k.a. Kristie Noel Valone, No. 14-11457 (11th Circ.). A full-text copy of the Decision dated April 29, 2015, is available at http://bankrupt.com/misc/VALONE042915.pdf MMRGLOBAL INC: Amends 2014 Annual Report ---------------------------------------- MMRGlobal, Inc. has amended its annual report on Form 10-K for the fiscal year ended Dec. 31, 2014, as originally filed with the Securities and Exchange Commission on March 31, 2015, to include the information required by Part III of the Original Filing because the Company has not and will not file a definitive proxy statement within 120 days after the end of its 2014 fiscal year. A copy of the Form 10-K/A is available at http://is.gd/VBO82e About MMRGlobal Los Angeles, Calif.-based MMR Global, Inc. (OTC BB: MMRF) -- http://www.mmrglobal.com/-- through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to- use online Personal Health Records (PHRs) and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. MMRGlobal reported a net loss of $7.63 million in 2013, as compared with a net loss of $5.90 million in 2012. Rose, Snyder & Jacobs LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the years ended December 31, 2013 and 2012. These conditions raise substantial doubt about the Company's ability to continue as a going concern. MOLYCORP INC: Amends 2014 Annual Report --------------------------------------- Molycorp, Inc. filed an amended annual report for the year ended Dec. 31, 2014, solely for the purpose of including in Part III the information that was to be incorporated by reference from its definitive proxy statement for the 2015 annual meeting of stockholders. The Company's definitive proxy statement will not be filed with the SEC within 120 days after the end of its fiscal year ended Dec. 31, 2014. A copy of the Form 10-K/A is available for free at http://is.gd/Xd3ktV About Molycorp Molycorp Inc. -- http://www.molycorp.com/-- produces specialized products from 13 different rare earths (lights, mids and heavies), the transition metal yttrium, and five rare metals (gallium, indium, rhenium, tantalum and niobium). It has 26 locations across 11 countries. Through its joint venture with Daido Steel and the Mitsubishi Corporation, Molycorp manufactures next-generation, sintered neodymium-iron-boron ("NdFeB") permanent rare earth magnets. Molycorp reported a net loss of $623 million in 2014, a net loss of $377 million in 2013 and a net loss of $475 million in 2012. At Dec. 31, 2014, the Company had $2.57 billion in total assets, $1.77 billion in total liabilities and $804.3 million in total stockholders' equity. KPMG LLP, in Toronto, Canada, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, stating that the Company continues to incur operating losses, has yet to achieve break-even cash flows from operations, has significant debt servicing costs and is currently not in compliance with the continued listing requirements of the New York Stock Exchange. These conditions, among other things, raise substantial doubt about the Company's ability to continue as a going concern. * * * In June 2014, Moody's Investors Service downgraded the corporate family rating of Molycorp to 'Caa2' from 'Caa1'. The downgrade reflects continued weakness in rare earths pricing environment, ongoing negative free cash flows, weak liquidity and high leverage. As reported by the TCR on Dec. 12, 2014, Molycorp has a 'CCC+' corporate credit rating, with negative outlook, from Standard & Poor's. "The negative outlook reflects our view that Molycorp's business and financial condition will become increasingly precarious unless the Mountain Pass facility can be brought to full production capacity," said S&P's credit analyst Cheryl Richer. MOLYCORP INC: Amends 2014 Annual Report --------------------------------------- Molycorp, Inc. has amended its annual report on Form 10-K for the fiscal year ended Dec. 31, 2014, with the U.S. Securities and Exchange Commission solely for the purpose of including in Part III the information that was to be incorporated by reference from its definitive proxy statement for the 2015 annual meeting of stockholders, because the Company's definitive proxy statement will not be filed with the SEC within 120 days after the end of its fiscal year ended Dec. 31, 2014. A copy of the Form 10-K/A is available for free at http://is.gd/Xd3ktV About Molycorp Molycorp Inc. -- http://www.molycorp.com/-- produces specialized products from 13 different rare earths (lights, mids and heavies), the transition metal yttrium, and five rare metals (gallium, indium, rhenium, tantalum and niobium). It has 26 locations across 11 countries. Through its joint venture with Daido Steel and the Mitsubishi Corporation, Molycorp manufactures next-generation, sintered neodymium-iron-boron ("NdFeB") permanent rare earth magnets. Molycorp reported a net loss of $623 million in 2014, a net loss of $377 million in 2013 and a net loss of $475 million in 2012. At Dec. 31, 2014, the Company had $2.57 billion in total assets, $1.77 billion in total liabilities and $804.3 million in total stockholders' equity. KPMG LLP, in Toronto, Canada, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, stating that the Company continues to incur operating losses, has yet to achieve break-even cash flows from operations, has significant debt servicing costs and is currently not in compliance with the continued listing requirements of the New York Stock Exchange. These conditions, among other things, raise substantial doubt about the Company's ability to continue as a going concern. * * * In June 2014, Moody's Investors Service downgraded the corporate family rating of Molycorp to 'Caa2' from 'Caa1'. The downgrade reflects continued weakness in rare earths pricing environment, ongoing negative free cash flows, weak liquidity and high leverage. As reported by the TCR on Dec. 12, 2014, Molycorp has a 'CCC+' corporate credit rating, with negative outlook, from Standard & Poor's. "The negative outlook reflects our view that Molycorp's business and financial condition will become increasingly precarious unless the Mountain Pass facility can be brought to full production capacity," said S&P's credit analyst Cheryl Richer. MOMENTIVE PERFORMANCE: Judge Upholds Ruling on Make-Whole Claims ---------------------------------------------------------------- Tom Corrigan, writing for Dow Jones' LBO Wire, reported that Judge Vincent Briccetti of the U.S. District Court in White Plains, N.Y., has upheld a decision by Momentive Performance Materials Inc. to forgo $200 million in so-called make-whole payments, or premiums, to its bondholders. According to the report, Judge Briccetti rejected an appeal from bondholders unhappy with a bankruptcy court's approval of Momentive's Chapter 11 plan, which didn't include the make-whole premiums. As previously reported by The Troubled Company Reporter, U.S. Bankruptcy Judge Robert Drain, in August last year, said lenders to Momentive aren't entitled to a so-called make-whole premium, which would have been approximately $200 million, for early repayment of the debt. About Momentive Performance Momentive Performance is one of the world's largest producers of silicones and silicone derivatives, and is a global leader in the development and manufacture of products derived from quartz and specialty ceramics. Momentive has a 70-year history, with its origins as the Advanced Materials business of General Electric Company. In 2006, investment funds affiliated with Apollo Global Management, LLC, acquired the company from GE. As of Dec. 31, 2013, the Company had 4,500 employees worldwide, of which 46% of the Company's employees are members of a labor union or are represented by workers' councils that have collective bargaining agreements. Momentive Performance Materials Inc., Momentive Performance Materials Holdings Inc., and their affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 14-22503) on April 14, 2014, with a deal with noteholders on a balance-sheet restructuring. As of Dec. 31, 2013, the Debtors had $4.11 billion of outstanding indebtedness, including payments due within the next 12 months and short-term borrowings. The Debtors said that the restructuring will eliminate $3 billion in debt. The Debtors have tapped Willkie Farr & Gallagher LLP as bankruptcy counsel with regard to the filing and prosecution of these chapter 11 cases; Sidley Austin LLP as special litigation counsel; Moelis & Company LLC as financial advisor and investment banker; AlixPartners, LLP as restructuring advisor; PricewaterhouseCoopers as auditor; and Crowe Horwath LLP as benefit plan auditor. Kurtzman Carson Consultants LLC is the notice and claims agent. The Court entered an order confirming the Plan on Sept. 11, 2014. The Official Committee of Unsecured Creditors tapped Klee, Tuchin, Bogdanoff & Stern LLP serves as its counsel; FTI Consulting, Inc., as its financial advisor; and Rust Consulting Omni Bankruptcy serves as its information agent. Wilmington Trust, National Association, the Trustee for the Momentive Performance Materials Inc. 10% Senior Secured Notes due 2020 -- 1.5 Lien Notes -- under the Indenture, dated as of May 25, 2012, by and between Momentive Performance, and The Bank of New York Mellon Trust Company, National Association, is represented by Mark R. Somerstein, Esq., Mark I. Bane, Esq., and Stephen Moeller- Sally, Esq., at Ropes & Gray LLP. U.S. Bank National Association -- as successor Indenture Trustee under the indenture dated as of Dec. 4, 2006, among Momentive Performance, the Guarantors named in the Indenture, and Wells Fargo Bank, N.A. as initial trustee, governing the 11.5% Senior Subordinated Notes due 2016 -- is represented in the case by Susheel Kirpalani, Esq., Benjamin I. Finestone, Esq., David L. Elsberg, Esq., Robert Loigman, Esq., K. John Shaffer, Esq., and Matthew R. Scheck, Esq., at Quinn Emanuel Urquhart & Sullivan, LLP; and Clark Whitmore, Esq., and Ana Chilingarishvili, Esq., at Maslon Edelman Borman & Brand, LLP. BOKF, NA -- as successor First Lien Trustee to The Bank of New York Mellon Trust Company, N.A., as trustee under an indenture dated as of Oct. 25, 2012, for the 8.875% First-Priority Senior Secured Notes due 2020 issued by Momentive Performance and guaranteed by certain of the debtors -- is represented by Michael J. Sage, Esq., Brian E. Greer, Esq., and Mauricio A. Espana, Esq., at Dechert LLP. Counsel to Apollo Global Management, LLC and certain of its affiliated funds are Ira S. Dizengoff, Esq., Philip C. Dublin, Esq., Abid Qureshi, Esq., Deborah J. Newman, Esq., and Ashleigh L. Blaylock, Esq., at Akin Gump Strauss Hauer & Feld LLP. Attorneys for Ad Hoc Committee of Second Lien Noteholders are Dennis F. Dunne, Esq., Michael Hirschfeld, Esq., and Samuel A. Khalil, Esq., at Milbank, Tweed, Hadley & McCloy LLP. The Debtors' Chapter 11 plan of reorganization became effective as of Oct. 24, 2014. * * * The Troubled Company Reporter, on Dec. 29, 2014, reported that Standard & Poor's Ratings Services assigned a 'B-' corporate credit rating to Momentive Performance Materials Inc. (MPM). The outlook is stable. At the same time, S&P assigned a 'B' issue rating and '2' recovery rating to the company's $1.1 billion 3.88% first-priority senior secured notes due 2021. In addition, S&P assigned a 'B-' issue rating and '4' recovery rating to the company's $250 million 4.69% second-priority senior secured notes due 2022. The TCR, on Jan. 20, 2015, reported that Moody's Investors Service has assigned a corporate family rating (CFR) of B3 and a probability of default rating (PDR) of B3-PD to Momentive Performance Materials Inc. Concurrently, Moody has assigned a B3 rating to Momentive's $1.1 billion, at 3.88%, first-lien senior secured notes due 2021; and a Caa2 rating to Momentive's $250 million, at 4.69%, second-lien senior secured notes due 2022. Moody's has also assigned an SGL-3 speculative grade liquidity rating. The outlook on the ratings is stable. NAKED BRAND: Posts $21.1 Million Net Loss in Fiscal 2014 -------------------------------------------------------- Naked Brand Group Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $21.07 million on $557,212 of net sales for the year ended Jan. 31, 2015, compared to a net loss of $4.23 million on $639,107 of net sales for the same period in 2014. As of Jan. 31, 2015, Naked Brand had $2.71 million in total assets, $4.94 million in total liabilities and a $2.22 million total stockholders' deficit. BDO USA, LLP, in New York, NY, issued a "going concern" qualification on the consolidated financial statements for the year ended Jan. 31, 2015, citing that the Company incurred a net loss of $21,078,265 for the year ended Jan. 31, 2015, had a capital deficit of $2,224,180 at Jan. 31, 2015, and the Company 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. A full-text copy of the Form 10-K is available for free at: http://is.gd/l6Zp8Y About Naked Brand Naked Brand Group Inc. designs, manufactures, and sells men's innerwear and lounge apparel products in the United States and Canada. It offers various innerwear products, including trunks, briefs, boxer briefs, undershirts, T-shirts, and lounge pants under the Naked brand, as well as under the NKD sub-brand for men. The company sells its products to consumers and retailers through wholesale relationships and direct-to-consumer channel, which consists of an online e-commerce store, thenakedshop.com. Naked Brand Group Inc. is based in New York, New York. NATROL INC: Feds, IRS Object to Ch. 11 Liquidation Plan ------------------------------------------------------- The U.S. Trustee, the Internal Revenue Service, Citibank, N.A., and two other creditors object to the confirmation of Natrol Inc.'s Chapter 11 liquidating plan. Law360 reported that the U.S. Trustee urged U.S. Bankruptcy Judge Brendan L. Shannon in Wilmington, Del., to deny Natrol's proposal for doling out the proceeds from a $132.5 million sale to India's Aurobindo Pharma Ltd., saying the repayment scheme elevates Natrol's former owner over creditor claims. The IRS, according to Law360, cried foul over changes to Natrol's liquidation plan to divvy up the spoils from its $132.5 million sale to Aurobindo, saying the last-minute inclusion of a settlement with the supplement maker's former owner could shortchange the agency's tax claims. The IRS and Citibank asked the bankruptcy judge to postpone the May 8 confirmation hearing on the liquidation plan, arguing that creditors did not receive proper notice of a revised plan that incorporated the settlement, Law360 said. Judge Shannon, however, the bids to delay the confirmation hearing, specifically questioning whether Citibank even had standing in the case, Law360 related. Judge Shannon left the door open on similar requests from the U.S. Trustee's Office and the IRS. According to Law360, during an emergency hearing, Judge Shannon said he was still prepared to go ahead with the May 8 confirmation hearing after hearing several arguments from Citibank that it needs time to conduct discovery on a settlement between Natrol's buyer and former owner Plethico, which the bank claims has several drawbacks such as violating the orders of the court overseeing the parent's liquidation in India and disrupting distributions in that proceeding. Natrol settled its dispute with its former owners connected to an alleged "sham" contract, but the precise details of the deal were not revealed to the court. Other creditors who objected to the confirmation of the Plan are Natures Products, Inc., and Jessica Augustine, on behalf of herself, all others similarly situated. About Natrol, Inc. Headquartered in Chatsworth, Calif., Natrol, Inc., sold herbs and botanicals, multivitamins, specialty and sports nutrition supplements made to support health and wellness throughout all ages and stages of life. Natrol, Inc., was a wholly owned subsidiary of Plethico Pharmaceuticals Limited (BSE: 532739. BO: PLETHICO). Natrol, Inc., and its six affiliates sought bankruptcy protection (Bankr. D. Del. Case No. 14-11446) on June 11, 2014. The case is assigned to Judge Brendan Linehan Shannon. The Debtors are represented by Robert A. Klyman, Esq., and Samuel A. Newman, Esq., at Gibson, Dunn & Crutcher LLP, in Los Angeles, California; and Michael R. Nestor, Esq., Maris J. Kandestin, Esq., and Ian J. Bambrick, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. The Debtors' Claims and Noticing Agent is Epiq Systems INC. The Debtors requested that the Court approve the employment of (i) Jeffrey C. Perea of the firm Conway MacKenzie Management Services, LLC as chief financial officer and for CMS to provide temporary employees to assist Mr. Perea in carrying out his duties; (ii) Stephen P. Milner of the firm Squar, Milner, Peterson, Miranda & Williamson LLP as chief restructuring officer and for CMS to provide temporary employees to assist Mr. Milner in carrying out his duties; (iv) BDO USA, LLP as auditor; (v) TaxGroup Partners as tax services provider. The Official Committee Of Unsecured Creditors tapped Otterbourg P.C. as lead counsel; Pepper Hamilton LLP as Delaware counsel; and CMAG as financial advisors. On Nov. 10, 2014, the Debtors held an auction for the sale of the assets, and Aurobindo Pharma USA Inc. emerged as the successful bidder. The Court approved the sale and the sale closed on Dec. 4, 2014. The Debtors changed their names to Leaf123, Inc., following the sale. * * * The Troubled Company Reporter, on Feb. 23, 2015, reported that Leaf123, Inc., f/k/a Natrol Inc., and its debtor affiliates filed a Chapter 11 plan of liquidation, pursuant to which tax refunds and credits, all shares of capital stock or other Equity Interests in Natrol UK, all Avoidance Actions not otherwise purchased by the Buyer under the Purchase Agreement, the proceeds from prepetition litigation, the proceeds from the Sale Transaction, and certain other assets are being pooled and distributed to persons or entities holding allowed claims in accordance with the priorities of the Bankruptcy Code. Judge Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware on April 2, 2015, approved the disclosure statement explaining the First Amended Joint Liquidating Plan of Leaf123, Inc., f/k/a Natrol, Inc., and its debtor affiliates, and scheduled the confirmation hearing to be held on May 8, 2015, at 9:30 a.m. (prevailing Eastern time). Any objections to confirmation of the Plan must be submitted on or before May 1. A full-text copy of the Disclosure Statement dated April 2, 2015, is available at http://bankrupt.com/misc/NATROLds0402.pdf NEENAH PAPER: S&P Affirms 'BB' CCR, Outlook Remains Stable ---------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'BB' corporate credit rating on Alpharetta, Ga.-based Neenah Paper Inc. and revised its assessment of the company's liquidity to "exceptional" from "strong." The outlook remains stable. S&P's revision of Neenah Paper's liquidity assessment is based on S&P's expectation that liquidity sources (including availability under the company's revolving credit facility) will exceed its uses by 2x or more for the next 24 months. S&P believes that sources of cash would continue to exceed uses even if forecast EBITDA were to decrease by 50%. Also underpinning the assessment is S&P's view that the company is prudently managed from a financial risk perspective and has well-established relationships with banks and that its liquidity position would allow it to absorb a high-impact, low probability event without need to refinance. The stable rating outlook on Neenah Paper reflects Standard & Poor's view that the company's moderate debt levels will provide it the financial flexibility to withstand decreases in fine paper demand and pursue acquisitions over the near to intermediate term such that leverage remains between 2x and 3x over the next 12 months, consistent with an intermediate financial risk score. S&P may consider a positive rating action if the company continues to demonstrate operating stability through business cycles while achieving a more "modest" financial risk profile (leverage consistently less than 2x). S&P considers it unlikely that it will lower the corporate credit rating in the next 12 months based on S&P's view of the company's intermediate financial risk profile and S&P's belief that a financial cushion exists at the 'BB' rating level to absorb deterioration in operating performance resulting from factors such as weaker-than-expected overall economic conditions or an increase in pulp input costs. However, S&P would consider a lower rating if EBITDA were to decrease by more than 40% compared with its base case forecast, causing the company to sustain debt to EBITDA between 3x and 4x. NEWLEAD HOLDINGS: Needs More Time to File Form 20-F --------------------------------------------------- NewLead Holdings Ltd. has been unable to complete its annual report on Form 20-F for the fiscal year ended Dec. 31, 2014, on a timely basis, without unreasonable effort or expense, because the Company needs additional time to complete certain disclosures and analyses to be included in the 2014 Form 20-F, according to a document filed with the Securities and Exchange Commission. The Company intends to file its annual report on Form 20-F no later than the 15th calendar day following the prescribed due date. The Company expects that net loss before preferred dividends for the year ended Dec. 31, 2014, will be at least 50% lower than net loss before preferred dividends for the same period in 2013, primarily due to various consultation/advisory fees as well as commissions to the share settled debt that were recognized during the year ended Dec. 31, 2013, in relation to the Company's effort to set its new strategy and future developments. These results were partially offset mainly by amounts recognized as non-cash impairment losses in non-current assets during the year ended Dec. 31, 2014. The expected net loss is subject to change as the Company is still in process of completing its annual financial statements. About NewLead Holdings Ltd. Based in Athina, Greece, NewLead Holdings Ltd. -- http://www.newleadholdings.com/-- is an international, vertically integrated shipping company that owns and manages product tankers and dry bulk vessels. NewLead currently controls 22 vessels, including six double-hull product tankers and 16 dry bulk vessels of which two are newbuildings. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market. NewLead Holdings reported a net loss of $158 million on $7.34 million of operating revenues for the year ended Dec. 31, 2013, as compared with a net loss of $403.9 million on $8.92 million of operating revenues in 2012. As of June 30, 2014, the Company had $210.7 million in total assets, $296 million in total liabilities, and a $85.8 million shareholders' deficit. EisnerAmper LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred a net loss, negative operating cash flows, a working capital deficiency, and shareholders' deficiency and has defaulted under its credit facility agreements. Those conditions raise substantial doubt about the Company's ability to continue as a going concern. NEWSAT LIMITED: Reaches Deal with Lockheed ------------------------------------------ Law360 reported that NewSat Ltd. received relief from a Delaware bankruptcy judge that shields it from creditors while its Chapter 15 petition is pending, and reached a deal that keeps Lockheed Martin Corp. working on its key project for the near future. According to the report, U.S. Bankruptcy Judge Laurie Selber Silverstein in Wilmington, Del., agreed to provide NewSat with provisional protection ahead of its May 29 hearing on Chapter 15 recognition, which if granted would trigger an automatic stay. NewSat said it had reached agreements with Lockheed Martin and General Dynamics SATCOM Technologies Inc., two of the three creditors previously opposed to the debtor's bid for a preliminary injunction, the report related. The deal with Lockheed, which is building a NewSat satellite in Denver under a $267 million contract, allows work to continue on the debtor's central project, NewSat attorney Ken Coleman said, the report added. Under the deal, NewSat's Australian administrators will determine by May 18 whether to assume or reject contract, and Lockheed will continue work on the satellite through that date, with its costs counting as administrative expenses, the report further related. About NewSat NewSat Limited was founded in 1987 as a multimedia business and gradually evolved into a satellite communications company. NewSat is now Australia's largest pure-play satellite communications company, with teleports and satellites delivering internet, voice, data and video communications coverage to 75% of the globe, including Australia, Asia, the Middle East, Africa, Europe and the United States. NewSat's Jabiru-2, which was launched in September 2014, delivers "Ku-Band" capacity across Australia, Timor Leste, Papua New Guinea and the Solomon Islands, and provides connectivity to the resources, commercial mobility, media, telecommunications and government sectors. NewSat's own commercial satellite named Jabiru-1 is currently being built and is targeted for launch in 2015 to 2016. Jabiru-1 will be Australia's first commercial "Ka- band" satellite and is expected to deliver 7.6 GHz of new capacity in the covered regions.17 As a result of certain defaults, cost overruns on the Jabiru-1 satellite project, and management issues, lenders halted funding to NewSat. Citicorp International, as trustee for lenders, on April 16, 2015, placed NewSat into administration in Australia. It appointed Stephen James Parbery and Marcus William Ayres, of PPB Advisory in Sydney, Australia, as administrators. Citi also appointed Jason Preston and Matthew Wayne Caddy of McGrathNicol as receivers. On April 16, 2015, the Administrators filed Chapter 15 bankruptcy petitions for NewSat and affiliates NSN Holdings Pty Ltd., NewSat Services Pty Ltd., Jabiru Satellite Holdings Pty Ltd., NewSat Space Resources Pty Ltd., NewSat Networks Pty Ltd., and Jabiru Satellite Ltd. (Bankr. D. Del. Lead Case No. 15-10810) to stop actions by creditors in the U.S. The U.S. cases are assigned to Judge Kevin J. Carey. Young, Conaway, Stargatt & Taylor and Allen & Overy LLP serve as counsel. NewSat listed $500 million to $1 billion in assets and $100 million to $500 million in debt in its Chapter 15 petition. OAS SA: Creditors Demand Morgan Lewis Client Names -------------------------------------------------- Law360 reported that hedge fund creditors attempting to deny Brazilian construction outfit OAS SA's application for U.S. bankruptcy protection requested that Morgan Lewis & Bockius LLP be barred from advocating for a separate group of noteholders until the firm stops hiding the identity of its clients. According to the report, a joint motion from Aurelius Capital Management LP and Alden Global Capital LLC attacked the firm's alleged refusal to disclose the identities and debt holdings of a competing noteholder group that has thus far supported efforts by OAS to obtain Chapter 15 relief. Owed a combined $310 million in dollar-denominated notes, Aurelius and Alden say that Morgan Lewis cannot seek to influence the proceedings without naming names, information that U.S. Bankruptcy Judge Stuart Bernstein needs in order to "weigh and assess" the firm's arguments, the report related. About OAS S.A. The OAS Group is among the largest and most experienced infrastructure companies in Brazil, focusing on heavy engineering and equity investments in infrastructure projects located in and outside Brazil and abroad for both public and private clients. The OAS Group provides services in 22 countries in Latin America, the Caribbean and Africa. Based in Sao Paulo, Brazil, OAS S.A. is the holding company at the apex of the OAS Group. Its share capital is divided between CMP Participacoes Ltda. (owned by Mr. Cesar de Araujo Mata Pires), which has a 90% stake, and LP Participacoes e Engenharia Ltda (owned by Mr. Jose Adelmario Pinheiro Filho, which has a 10% stake. Amid an investigation into alleged corruption and money laundering, and missed interest payments, OAS S.A. and its affiliates Construtora OAS S.A., OAS Investments GmbH, and OAS Finance Limited on March 31, 2015, commenced judicial reorganization proceedings before the First Specialized Bankruptcy Court of Sao Paulo pursuant to Federal Law No. 11.101 of February 9, 2005 of the laws of the Federative Republic of Brazil. On April 15, 2015, OAS S.A., et al., filed Chapter 15 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 15-10937) in Manhattan, in the United States to seek U.S. recognition of the Brazilian proceedings. Renato Fermiano Tavares, as foreign representative, signed the petitions. The cases are assigned to Judge Stuart M. Bernstein. White & Case, LLP, serves as counsel in the U.S. cases. OAS S.A. listed at least US$1 billion in assets and liabilities. * * * Troubled Company Reporter , May 06, 2015 ( Source: TCRLA) Fitch Ratings has affirmed and withdrawn the ratings of the OAS Group units, which includes OAS S.A., Construtora OAS S.A., OAS Investments GmbH, OAS Finance Ltd., and OAS Empreendimentos S.A. PACIFIC RUBIALES: Fitch Sees Potential Acquisition as CreditNeutral ------------------------------------------------------------------- Fitch Ratings sees Alfa, S.A.B. de C.V. (Alfa; IDR 'BBB-', Outlook Stable) and Harbour Energy Ltd.'s (Harbour Energy) potential acquisition of Pacific Rubiales Energy Corp. (Pacific Rubiales; IDR 'BB', Outlook Negative) as a credit-neutral to marginally positive event for Pacific Rubiales. Alfa and Harbour Energy's acquisition of Pacific Rubiales would be positive for the company's credit quality if the company receives a capital injection aimed at improving its capital structure following the acquisition, which could help stabilize the rating. The new shareholder group could also help Pacific Rubiales lower its business risk by facilitating its entrance into Mexico. Pacific Rubiales' credit quality will continue to be pressured in the near term absent a capital injection; the recent reduction in capex due to low prices may impair the company's ability to replace production from the Piriri-Ruibiales field with new fields. The Piriri-Rubiales field, which accounted for 35% of the company's 2014 production, reverts back to Ecopetrol in the middle of 2016. The acquisition could prove negative for Pacific Rubiales' creditors if the new owners are not able to retain current management. This could prove challenging for the new owners, as they may not be able to maintain the highly variable management compensation strategy that existed after the company is taken private. Management's recognized expertise in heavy oil exploration and production has allowed it to grow output rapidly in recent years. Pacific Rubiales has reported in excess of USD200 million of stock-based compensation expenses over the past five years. On May 5, 2015, Pacific Rubiales announced it entered into an exclusive discussion with Alfa and Harbour Energy in which the two would acquire the company for approximately USD1.7 billion. Alfa currently owns approximately 19% of Pacific Rubiales equity. This transaction is still subject to Pacific Rubiales' board of directors' approval. PARKWAY EAST: S&P Cuts SPUR on 2005 Special Assesstment Bonds to D ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its underlying rating (SPUR) to 'D' from 'CC' on Parkway East Public Improvement District, Miss.' series 2005 special assessment bonds, issued by Madison County. "The 'D' rating reflects our view that a shortfall of pledged revenues, combined with the county's lack of willingness to replenish the debt service reserve, led the bond trustee to make a claim made on May 1, 2015, on the bond's insurance policy in order to make the full principal payment due on the series 2005 bonds," said Standard & Poor's credit analyst Kate Choban. According to S&P's timeliness of payments criteria, for long-term financial obligations with stated grace periods greater than five business days, S&P will apply the 'D' rating if it expects payment will not be made within the earlier of the stated grace period of 30 calendar days after the due date. In S&P's opinion, it do not expect payment on the series 2005 bonds to be made by the issuer or obligor within 30 calendar days, as outlined in Section 10.02 "Events of Default Defined" in the trust indenture. Unless there are any developments that would alter S&P's view of the SPUR, it will likely discontinue its 'D' rating after 30 days. The series 2005 bonds were originally issued for infrastructure improvements in an unincorporated portion of the county. PHYSIO-CONTROL INT'L: Moody's Affirms 'B2' CFR, Outlook Stable -------------------------------------------------------------- Moody's Investors Service affirmed Physio-Control International, Inc.'s B2 Corporate Family Rating following the company's announcement of a debt funded recapitalization and a dividend distribution to its sponsors. Moody's rated the new senior secured first lien term loan at B1 and second lien term loan at Caa1. The rating outlook remains stable. Physio-Control is seeking to raise $480 million senior secured credit facilities, comprising of a $350 million first lien term loan and a $130 million second lien term loan, to repay outstanding borrowings under its ABL Facility, retire the existing senior secured notes, fund an approximately $113 million dividend to the sponsor and pay related transaction fees and expenses. The company also intends to amend its ABL revolving facility (not rated), extending the maturity by five years, among other revisions. Moody's views the dividend recap as aggressive since the incremental debt will significantly increase Physio-Control's financial leverage to above 6.5x debt/EBITDA from below 5.0x as of January 31, 2015. "This level of leverage is high for the B2 rating given the company's relatively high business risks and earnings headwinds from foreign exchange," commented Moody's senior analyst, John Zhao, a Vice President. However, the rating affirmation reflects Moody's expectation that Physio-Control will likely reduce its leverage gradually over the next 12-18 months as the company continues to achieve modest EBITDA growth and generates positive free cash flow that will be partially used for debt repayment. Moreover, given the current low rate environment, interest expense for Physio-Control is not expected to increase materially despite higher debt balance post the recap transaction. "We expect that product expansion will continue to be the main driver for revenue growth in a relatively mature external defibrillator market, while its recurring revenue from services and accessories provides earnings stability." Added Zhao. Rating assigned: (subject to Moody's review of final documents) -- Senior secured first lien term loan at B1, LGD3 -- Senior secured second lien term loan at Caa1, LGD5 Rating affirmed: -- Corporate Family Rating at B2 -- Probability of Default Rating at B2-PD Moody's will withdraw its rating of the existing senior secured notes upon closing. Physio-Control's B2 rating is constrained by high financial leverage, as well as the company's modest size and narrow product focus in external defibrillators. The rating reflects on-going heightened regulatory risks, both industry wide and specific to Physio-Control such as the presence of a consent decree with FDA. Moody's views the company's main product as a deferrable capital purchase by customers, thus making its earnings susceptible to fluctuations in customers' spending budgets. The ratings are supported by Physio-Control's leading global competitive position in the external defibrillator market and its significant installed defibrillator base, which create a stable revenue stream due to the natural equipment replacement cycle and recurring revenues related to services, disposables and accessories. While the markets are competitive, customer stickiness is high, especially in the manual defibrillator market, where Physio-Control has particular strength. The stable outlook reflects Moody's expectation that Physio-Control will maintain good liquidity in the next 12-18 months. Also, the stable outlook balances the company's strong market position and recurring revenue model with risks associated with product concentration and a highly scrutinized regulatory environment. Given Physio-Control's weak position in the current rating category, the company needs to decisively reduce leverage to maintain a B2 CFR. Moody's could downgrade the rating if financial leverage is sustained above 5.5 times, free cash flow remains negative or liquidity weakens. Increased regulatory scrutiny such as product recalls or FDA warning letters or a significant disruption driven by the FDA's implementation of a stricter regulatory approval process for AED products could lead Moody's to downgrade the ratings. Ratings could be upgraded should sales and operating margins improve such that debt to EBITDA will be sustained below 4.0 times and free cash flow to debt remains above 10%. In addition, a positive rating action is also predicated on the company's willingness to maintain conservative credit metrics. Physio-Control is a leading manufacturer and supplier of emergency medical response products worldwide. More than 80% of Physio-Control's revenues are derived from the sale of manual external defibrillators and related services and accessories, namely batteries and electrodes. The company is owned by Bain Capital. The principal methodology used in this rating was the Global Medical Product and Device Industry published in October 2012. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. PLASTIC2OIL INC: Court Dismisses Stockholders Class Action Suit --------------------------------------------------------------- The court presiding over the previously reported class action lawsuit against Plastic2oil, Inc., and Messrs. Bordynuik and Baldwin (both former officers of the Company) gave its final approval of the proposed settlement and dismissed the action. On Aug. 8, 2013, the Company entered into a stipulation agreement in potential settlement of the previously reported class action lawsuit filed by certain stockholders of the Company against the Company and Messrs. Bordynuik and Baldwin on behalf of a settlement class consisting of purchasers of the Company's common stock during the period from Aug. 28, 2009, through Jan. 4, 2012. On Dec. 18, 2014, the Court filed and entered its Order Preliminarily Approving Settlement and Providing for Notice of Proposed Settlement. In its Preliminary Approval Order the Court preliminarily approved the settlement set forth in the Stipulation Agreement, and scheduled a hearing on April 27, 2015, to determine whether to give final approval of the settlement, and enter judgment accordingly. On April 28, 2015, following said hearing, the Court filed its Final Judgment and Order of Dismissal with Prejudice, giving final approval of the settlement set forth in the Stipulation Agreement and dismissing the action. About Plastic2Oil Plastic2Oil, Inc., formerly JBI Inc., is a North American fuel company that transforms unsorted, unwashed waste plastic into ultra-clean, ultra-low sulphur fuel without the need for refinement. The Company's Plastic2Oil (P2O) is a process designed to provide immediate economic benefit for industry, communities and government organizations with waste plastic recycling challenges. It is also focused on the creation of green employment opportunities and a reduction in the cost of plastic recycling programs for municipalities and business. The Company's fuel products include No. 6 Fuel, No. 2 Fuel (diesel, petroleum distillate), Naphtha, Petcoke (carbon black) and Off-Gases. No. 6 Fuel is heavy fuel used in industrial boilers and ships. No. 2 Fuel is a mid-range fuel known as furnace oil or diesel. Naphtha is a light fuel that is used as a cut feedstock for ethanol or as white gasoline in high and regular grade road certified fuels. Plastic2Oil reported a net loss attributable to common shareholders of $8.51 million on $59,000 of sales for the year ended Dec. 31, 2014, compared to a net loss attributable to common shareholders of $16.8 million on $693,000 of sales for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $6.98 million in total assets, $8.36 million in total liabilities and a $1.37 million total stockholders' deficit. MNP LLP, in Toronto, Canada, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has experienced negative cash flows from operations since inception and has accumulated a significant deficit which raises substantial doubt about its ability to continue as a going concern. PRETTY GIRL OF FORDHAM: Case Summary & 8 Top Unsecured Creditors ---------------------------------------------------------------- Debtor: Pretty Girl of Fordham Road Corp. 203 East Fordham Road Bronx, NY 10458 Case No.: 15-11199 Chapter 11 Petition Date: May 7, 2015 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Debtor's Counsel: Nancy Lynne Kourland, Esq. Sanford P. Rosen, Esq. ROSEN & ASSOCIATES, P.C. 747 Third Avenue New York, NY 10017 Tel: (212) 223-1100 Fax: (212) 223-1102 Email: nkourland@rosenpc.com srosen@rosenpc.com Total Assets: $586,246 Total Liabilities: $837,195 The petition was signed by Albert Nigri, president. A list of the Debtor's eight largest unsecured creditors is available for free at http://bankrupt.com/misc/nysb15-11199.pdf PTC GROUP: Moody's Cuts Corporate Family Rating to 'B3' ------------------------------------------------------- Moody's Investors Service downgraded PTC Group Holdings Corp.'s ("PTC Alliance Holdings Corporation" or "PTC") corporate family rating to B3 from B2, its probability of default rating to B3-PD from B2-PD and its senior secured term loan rating to Caa1 from B3. The ratings downgrades and negative outlook reflect PTC's deteriorating credit metrics, weakening liquidity profile and the potential litigation risks related to its seamless tubular project. Downgrades: -- Corporate family rating, downgraded to B3 from B2; -- Probability of default rating, downgraded to B3-PD from B2- PD; -- Senior secured term loan, downgraded to Caa1 (LGD4 ) from B3 (LGD 4) Outlook Actions: -- Outlook, Remains Negative PTC's B3 corporate family rating reflects its deteriorating credit metrics and diminished liquidity profile due to its recent weak operating results and higher than anticipated costs to refurbish and install equipment at its production facility in Hopkinsville, Kentucky to facilitate the production of seamless tubular products. The rating also reflects its small size relative to other rated steel companies, its high customer concentration, its exposure to steel price volatility and cyclical end markets and the risks of potential liabilities related to the recent chapter 11 bankruptcy filing of its PTC Seamless Tube Corp. subsidiary. These factors are somewhat balanced by the company's relatively robust margins and returns versus other specialty steel producers and its leading position in niche markets. PTC's operating results have been weak driven by reduced shipments to service centers and original equipment manufacturers exposed to the construction, mining and agriculture sectors along with lower product prices. The company's revenues declined modestly during the first nine months of 2014, but have declined by about 25% over the past 3 years. The company's adjusted EBITDA has declined by more than 50% over the same time period. At the same time, the company has incurred higher than anticipated capital investments to develop the capability to produce seamless tubular products. As a result, PTC's credit metrics have deteriorated with its leverage ratio (Debt/EBITDA) rising to 3.6x and its interest coverage ratio (EBIT/Interest Expense) declining to 2.2x. These metrics are expected to only improve modestly over the next 12 to 18 months due to lackluster end market demand and depressed steel prices. The company's liquidity has deteriorated substantially due to cost overruns and delays on its seamless tubular project. As a result, PTC has little availability on its revolver and less than $10 million of cash. The company should generate modest free cash flow from its core PTC Alliance Corp. tubular business over the next 12 months, but faces possible litigation risks that could result in required cash payments. PTC's ABL facility and term loan lenders signed forbearance agreements waiving their ability to exercise certain rights and remedies under the credit agreement and loan documents and under applicable law arising in connection with specified defaults, including the ability to demand repayment upon an event of default by PTC Seamless Tube Corp. The company established PTC Seamless as a separate legal entity and has attempted to shield its other operating subsidiaries from the creditors of PTC Seamless. However, the chapter 11 filing and other issues on the seamless tubular project increase the litigation risks for PTC. PTC Seamless is facing a class-action lawsuit from former workers at the seamless mill and has mechanic's liens on the equipment at its seamless facility related to unpaid billings from the general contractor and its subcontractors on the project. The negative outlook reflects the company's weak liquidity profile and the litigation risks related to PTC Seamless Tube Corp. It also incorporates the current weak operating environment including historically depressed steel prices and lackluster demand, which will limit the potential improvement in PTC's operating results. The outlook could return to stable if the company's liquidity increases, its operating results and credit metrics improve and the risks related to PTC Seamless are resolved. An upgrade of PTC's ratings is unlikely in the near term given the company's weak liquidity and the litigation risks it is facing. However, the ratings could experience upward pressure if the company is able to generate positive free cash flow and significantly raise its liquidity, grow organically and sustain its current margins. Improved credit metrics such as a leverage ratio below 3.5x and EBIT-to-interest expense trending above 3.0x could put upward pressure on the rating. Negative rating pressure could develop if deteriorating operating results, adverse legal developments, debt-financed acquisitions, capital investments, shareholder distributions or other factors result in the company's leverage ratio exceeding 5.0x or EBIT-to-interest expense declining below 2.0x. A deterioration in the company's already weak liquidity position could also result in a downgrade. The principal methodology used in these ratings was Global Steel Industry published in October 2012. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. PTC Group Holdings Corp., headquartered in Wexford, PA, is a leading manufacturer of welded and cold drawn mechanical steel tubing and tubular shapes, fabricated parts, precision components and chrome-plated rod. PTC's major end markets include construction and agricultural equipment, automotive and heavy truck components and industrial machinery. PTC generated $311 million in revenue for the 12-month period ended September 30, 2014. PTC SEAMLESS: May 8 Final Hearing on $650,000 Bridge Financing -------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Pennsylvania gave PTC Seamless Tube Corp. interim authority to obtain an unsecured bridge financing up to an aggregate amount of $650,000 from its parent, PTC Group. The outstanding loans and other obligations under the Bridge Facility will bear interest at the rate of 2% per annum, payable in cash at maturity. The term of the Bridge Facility will extend until the earliest to occur of (x) the date the Debtor receives the proceeds of a DIP facility approved by final order of the Court or (y) one year after the commencement of the Chapter 11 Case. The Debtor agreed to a waiver of discharge, i.e. the Bridge Obligations will not be discharged under any Chapter 11 plan confirmed in the Debtor's Chapter 11 Case. The Final Hearing is scheduled for May 8, 2015, at 10:00 A.M. (Eastern). Objections are due May 7. PTC Group is represented by: Kimberly A. DeBeers, Esq. SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP 155 N. Wacker Dr. Chicago, IL 60606 Tel: (312) 407-0982 Fax: (312) 407-8576 Email: kimberly.debeers@skadden.com About PTC Seamless PTC Seamless Tube Corp. was created by PTC Group Holdings Corp. to enter into the seamless tube market, a new type of manufacturing for PTC. Seamless's executive and financial operations are based in Wexford, Pennsylvania. Seamless has a single plant located in Hopkinsville, Kentucky, which is under construction. PTC Group and its subsidiaries are leading manufacturers and marketers of steel tubing, tubular shapes, bar products, fabricated parts, and precision components. PTC Group was formed in 2000 by the merger of the Pittsburgh Tube Company and J.H. Roberts Industries, Inc. PTC Group has two direct subsidiaries: Seamless and PTC Alliance Corp. Seamless sought Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 15-21445) in Pittsburgh, Pennsylvania, on April 26, 2015. Judge Carlota M. Bohm presides over the case. PTC Group and Alliance have not commenced Chapter 11 cases. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due Aug. 24, 2015. The deadline for governmental entities to file claims is Oct. 23, 2015. The Debtor tapped Reed Smith, LLP as counsel; Candlewood Partners, LLC as investment banker and financial advisor; and Logan & Company, Inc., as claims, noticing, and balloting agent. The Debtor disclosed $99,347,576 in total assets and $280,030,034 in liabilities in its schedules. PTC SEAMLESS: Seeks to Tap $5-Mil. DIP Loan from Black Diamond -------------------------------------------------------------- PTC Seamless Tube Corp., seeks authority from the U.S. Bankruptcy Court for the Western District of Pennsylvania to obtain postpetition financing from Black Diamond Commercial Finance, L.L.C., acting as administrative agent for itself and a syndicate of financial institutions. The DIP Facility consists of a delayed draw term loan in an amount not to exceed $5,000,000, with an interim commitment of $3,000,000. The outstanding loans and other obligations under the DIP Facility will bear interest at the rate of 12% per annum, payable in cash on the last business day of each month. Default interest will accrue at an interest the rate of an additional 2% per annum. According to the Debtor's counsel, Joseph D. Filloy, Esq., at Reed Smith LLP, in Pittsburg, Pennsylvania, due to the Debtor's lack of revenue due to the incomplete plant in Hopkinsville and the delays and cost overruns in the construction of that plant have created a liquidity crisis for the Debtor and its direct parent, PTC Group Holdings Corp., is unwilling to continue to fund the Debtor. The ABL Lender is also unwilling to finance the Debtor's construction of the Hopkinsville plant, Mr. Filloy says. Mr. Filloy tells the Court that Candlewood Partners, LLC, has reviewed the terms of the DIP facility proposed by BDCF and concluded that BDCF's proposed DIP Facility contains the most favorable terms available to the Debtor. BDCF is an affiliated entity of the majority equity holders of PTC Group's ultimate parent entity as well as the largest holders of the Prepetition Term Loans. About PTC Seamless PTC Seamless Tube Corp. was created by PTC Group Holdings Corp. to enter into the seamless tube market, a new type of manufacturing for PTC. Seamless's executive and financial operations are based in Wexford, Pennsylvania. Seamless has a single plant located in Hopkinsville, Kentucky, which is under construction. PTC Group and its subsidiaries are leading manufacturers and marketers of steel tubing, tubular shapes, bar products, fabricated parts, and precision components. PTC Group was formed in 2000 by the merger of the Pittsburgh Tube Company and J.H. Roberts Industries, Inc. PTC Group has two direct subsidiaries: Seamless and PTC Alliance Corp. Seamless sought Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 15-21445) in Pittsburgh, Pennsylvania, on April 26, 2015. Judge Carlota M. Bohm presides over the case. PTC Group and Alliance have not commenced Chapter 11 cases. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due Aug. 24, 2015. The deadline for governmental entities to file claims is Oct. 23, 2015. The Debtor tapped Reed Smith, LLP as counsel; Candlewood Partners, LLC as investment banker and financial advisor; and Logan & Company, Inc., as claims, noticing, and balloting agent. The Debtor disclosed $99,347,576 in total assets and $280,030,034 in liabilities in its schedules. QUICKSILVER RESOURCES: Gets OK on Deal to Drill New Wells --------------------------------------------------------- Law360 reported that U.S. Bankruptcy Judge Laurie Selber Silverstein in Wilmington, Del., gave Quicksilver Resources Inc. authority to spend $11 million to drill four new wells with a unit of fellow oil and gas company Eni SpA, over objections from the unsecured creditors committee that the move made little business sense. According to the report, the Official Committee of Unsecured Creditors asked the bankruptcy court to reject the company's plan to spend $11 million to drill the new wells, arguing the move makes little business sense so early in the case. About Quicksilver Quicksilver Resources Inc. (OTCQB: KWKA) is an exploration and production company engaged in the development and production of long-lived natural gas and oil properties onshore North America. Based in Fort Worth, Texas, the company claims to be a leader in the development and production from unconventional reservoirs including shale gas, and coal bed methane. Following more than 30 years of operating as a private company, Quicksilver became public in 1999. The company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas; Steamboat Springs, Colorado; Craig, Colorado and Cut Bank, Montana. The Company's Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta. On March 17, 2015, Quicksilver Resources Inc. and certain of its affiliates filed voluntary petitions for relief under Chapter 11 of title 11 of the United States Code in Delaware. The Debtors are seeking joint administration under the main case, In re Quicksilver Resources Inc. Case No. 15-10585. Quicksilver's Canadian subsidiaries were not included in the chapter 11 filing. The Company's legal advisors are Akin Gump Strauss Hauer & Feld LLP in the U.S. and Bennett Jones in Canada. Richards Layton & Finger, P.A., is legal co-counsel in the Chapter 11 cases. Houlihan Lokey Capital, Inc. is serving as financial advisor. Garden City Group Inc. is the claims and noticing agent. The Company's balance sheet at Dec. 31, 2014, showed $1.21 billion in total assets, $2.35 billion in total liabilities and total stockholders' deficit of $1.14 billion. The U.S. Trustee for Region 3 has appointed five creditors of Quicksilver Resources Inc. to serve on the official committee of unsecured creditors. QUICKSILVER RESOURCES: Has Until May 18 to File Schedules --------------------------------------------------------- The Hon. Laurie Selber Silverstein of the U.S. Bankruptcy Court for the District of Delaware extended the deadline within which Quicksilver Resources Inc. and its debtor-affiliates can file their schedules of assets and liabilities, and statements of financial affairs to May 18, 2015. About Quicksilver Quicksilver Resources Inc. (OTCQB: KWKA) is an exploration and production company engaged in the development and production of long-lived natural gas and oil properties onshore North America. Based in Fort Worth, Texas, the company claims to be a leader in the development and production from unconventional reservoirs including shale gas, and coal bed methane. Following more than 30 years of operating as a private company, Quicksilver became public in 1999. The company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas; Steamboat Springs, Colorado; Craig, Colorado and Cut Bank, Montana. The Company's Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta. On March 17, 2015, Quicksilver Resources Inc. and certain of its affiliates filed voluntary petitions for relief under Chapter 11 of title 11 of the United States Code in Delaware. The Debtors are seeking joint administration under the main case, In re Quicksilver Resources Inc. Case No. 15-10585. Quicksilver's Canadian subsidiaries were not included in the chapter 11 filing. The Company's legal advisors are Akin Gump Strauss Hauer & Feld LLP in the U.S. and Bennett Jones in Canada. Richards Layton & Finger, P.A., is legal co-counsel in the Chapter 11 cases. Houlihan Lokey Capital, Inc. is serving as financial advisor. Garden City Group Inc. is the claims and noticing agent. The Company's balance sheet at Dec. 31, 2014, showed $1.21 billion in total assets, $2.35 billion in total liabilities and total stockholders' deficit of $1.14 billion. The U.S. Trustee for Region 3 appointed five creditors of Quicksilver Resources Inc. to serve on the official committee of unsecured creditors. QUINTILES TRANSNATIONAL: S&P Retains 'BB+' Corp. Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services revised its recovery rating on its 'BB+' senior secured debt rating to '4' from '3' on pharmaceutical contract services provider Quintiles Transnational Corp.'s announced $1.95 billion senior secured credit facility, consisting of a $500 million senior secured revolver due 2020, a $850 million senior secured term loan A due 2020, and a $600 million senior secured term loan B due 2022. The revision reflects the company's increase in the size of the facilities by $200 million. The '4' recovery rating indicates expectations of average (at the higher end of the 30% to 50% range) recovery in the event of a payment default. S&P's 'BB+' corporate credit rating and stable outlook on Research Triangle, N.C.-based Quintiles remains unchanged. Quintiles remains the largest player in the growing contract research services industry. Its scale and breadth of service offerings provide it with a number of competitive advantages, such as being able to manage larger and more complex trials and to be a preferred provider to large pharmaceutical clients. On the financial front, the company continues to perform, with mid- to high-single-digit revenue growth expected and annual EBITDA margins having returned to over 15% in 2014, the first year since 2010. Leverage has slipped under 3x, to an adjusted 2.8x at the end of 2014. S&P believes leverage will remain in the 3x range of the near term. RATINGS LIST Quintiles Transnational Corp. Corporate Credit Rating BB+/Stable/-- Recovery Rating Revised To From Quintiles Transnational Corp. Senior Secured BB+ BB+ Recovery Rating 4H 3L RCC CONSULTANTS: Files for Chapter 11 Bankruptcy Protection ----------------------------------------------------------- RCC Consultants, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. N.J. Case No. 15-18274) on May 1, 2015, estimating its assets and liabilities at between $1 million and $10 million each. The petition was signed by Michael W. Hunter, president and chief executive officer. Donny Jackson, writing for Urgentcomm.com, reports that the Company's President and CEO, Mike Hunter, said in a declaration submitted to the State of New Jersey bankruptcy court, "In sum, tepid economic growth in the United States, financial stress on states and local governments, reduced federal funding for interoperable voice-radio systems, and uncertainty regarding the future course of public-safety communications combined to weaken the market for RCC's core consulting services. Consequently, after a record profitable year in 2012, RCC saw operating losses in 2013 and 2014. Increased competition for a smaller pool of potential business (given the slowdown in land-based mobile communications system investment) was also a major factor." Judge Michael B. Kaplan presides over the case. Anthony Sodono, III, Esq., at Trenk, Dipasquale, Della Fera & Sodono, P.C., serves as the Company's bankruptcy counsel. RCC Consultants, Inc., is an engineering and consulting firm headquartered in Woodbridge, New Jersey. REVEL AC: NJ Regulators Says Straub Can't Take Casino License ------------------------------------------------------------- Law360 reported that the New Jersey Casino Control Commission sent a letter to Chief Bankruptcy Judge Gloria Burns in New Jersey objecting to Revel Casino Hotel's plan to transfer its casino license to Glenn Straub's Polo North Country Club Inc., saying state law prohibits his company from assuming Revel's casino license from the previous owner. According to the report, the letter, signed by commission senior counsel Stephanie Olivo, said New Jersey law does not recognize casino licenses as a property right, unlike other licenses issued by the state. Specifically, New Jersey's Casino Control Act precludes the transfer of casino licenses, the letter said, the report related. About Revel AC Revel AC, Inc. -- http://www.revelresorts.com/-- owns and operates Revel, a Las Vegas-style, beachfront entertainment resort and casino located on the Boardwalk in the south inlet of Atlantic City, New Jersey. Revel AC Inc. and five of its affiliates sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-22654) on June 19, 2014, to pursue a quick sale of the assets. The Chapter 11 cases are assigned to Judge Gloria M. Burns. The Debtors' Chapter 11 cases are jointly consolidated for procedural purposes. Revel AC estimated assets ranging from $500 million to $1 billion, and the same amount of liabilities. White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors' Counsel, and Moelis & Company, LLC, is the investment banker. The Debtors' solicitation and claims agent is Alixpartners, LLP. The prepetition first lenders are represented by Cadwalader, Wickersham & Taft LLP. The prepetition second lien lenders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP. This is Revel AC's second trip to bankruptcy. The company first sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13-16253) on March 25, 2013, with a prepackaged plan that reduced debt by $1.25 billion. Less than two months later on May 15, 2013, the 2013 Plan was confirmed and became effective on May 21, 2013. SALADWORKS LLC: Can Proceed with May 27 Auction ----------------------------------------------- Law360 reported that U.S. Bankruptcy Judge Laurie Selber Silverstein in Wilmington, Del., authorized Saladworks LLC to enter into a stalking horse purchase agreement with a unit of private equity firm Centre Lane Partners LLC, setting a floor price of $16.9 million for the casual restaurant chain's upcoming asset auction. According to the report, Judge Silverstein signed off on Saladworks' selection of SW Acquisition Co. LLC, a vehicle of Centre Lane, as a stalking horse for the planned May 27 auction and a proposed form of asset purchase agreement. The deal with Centre Lane -- a New York-based PE firm with food and beverage experience and $700 million under management -- is a great result for Saladworks' estate, debtor's counsel Adam G. Landis told the court, the report related. About Saladworks, LLC Developed in 1986, Saladworks, LLC, is the first and largest fresh-salad franchise concept in the United States. From its beginning in the Cherry Hill Mall, Saladworks quickly expanded to 12 additional locations in area malls and soon thereafter began franchising. The company has franchise agreements with 162 different franchisees. The equity owners are J Scar Holdings, Inc., (70%) and JVSW LLC (30%). Saladworks, LLC, sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 15-10327) on Feb. 17, 2015. The case assigned to Judge Laurie Selber Silverstein. The Debtor has tapped Landis Rath & Cobb LLP as counsel; SSG Advisors, LLC, as investment banker; EisnerAmper LLP, as financial advisor; and Upshot Services LLC, as claims and noticing agent. Saladworks, LLC, disclosed $2,303,632 in assets and $14,220,722 in liabilities as of the Chapter 11 filing. The U.S. trustee overseeing the Chapter 11 case of Saladworks LLC appointed three creditors of the company to serve on the official committee of unsecured creditors. SIGA TECHNOLOGIES: Inks Modification to Contract With BARDA ----------------------------------------------------------- SIGA Technologies, Inc., a Delaware corporation, on April 29, 2015, entered into a modification to its contract with the Biomedical Advanced Research and Development Authority with respect to SIGA's smallpox antiviral drug Tecovirimat (also known as ST-246). The probable entry into the Modification was previously disclosed in SIGA's Current Report on Form 8-K filed December 24, 2014. As noted in the December 24th 8-K, the Modification was subject to the approval of the Bankruptcy Court, which was granted on April 27, 2015. Pursuant to the Modification, the delivery schedule of Tecovirimat has been extended to accommodate an increase in dosage. As previously noted in the December 24th 8-K, the provisional dosage for Tecovirimat has increased to 600 mg administered twice daily (600 mg BID or 1,200 mg per day) from the prior provisional dosage of 600 mg once daily (or 600 mg per day). About SIGA Technologies Publicly held SIGA Technologies, Inc., with headquarters in Madison Avenue, New York, is a biotech/pharmaceutical company that specializes in the development and commercialization of solutions for serious unmet medical needs and biothreats. SIGA's lead product is Tecovirimat, also known as ST-246, an orally administered antiviral drug that targets orthopoxviruses. SIGA sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 14-12623) on Sept. 16, 2014, in Manhattan. The case is assigned to Judge Sean H. Lane. The Debtor has tapped Weil, Gotshal & Manges LLP, as counsel, and Prime Clerk LLC as claims agent. The Debtor's Chapter 11 plan and disclosure statement are due May 14, 2015. The Debtor disclosed total assets of $131,669,746 and $7,954,645 in liabilities as of the Chapter 11 filing. The Statutory Creditors' Committee is represented by Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Ehud Barak, Esq., at PROSKAUER ROSE LLP. The Committee tapped to retain Guggenheim Securities, LLC, as its financial advisor and investment banker. SPECTRUM ANALYTICAL: Seeks to Use Cash Collateral; Bank Objects --------------------------------------------------------------- Spectrum Analytical Inc. and Hanibal Technology, LLC, ask the U.S. Bankruptcy Court for the District of Massachusetts for approval to use cash collateral of Bank Rhode Island and grant adequate protection to the bank. On Jan. 15, 2014, the Debtors entered into a financing transaction with Bank Rhode Island whereby the bank loaned the Debtors the total sum of $8,400,000. The debt to Bank Rhode Island is secured by, inter alia, the Debtor's receivables and other cash collateral. As of the Petition Date, the total balance due to the bank is $8,900,000. As of April 1, 2015, the liabilities of Spectrum include $8,900,000 in secured debt to Bank Rhode Island, and $1,367,213 in unsecured debts. The debt to Bank Rhode Island is secured by, inter alia, the Debtor's receivables and other cash collateral. Spectrum intends to use the cash collateral to pay employees, to purchase supplies, to pay service providers, to pay administrative expenses incurred by the Debtor's bankruptcy estate, and to pay other ongoing usual and necessary expenses incurred in the day-to-day operation of the business. Bank Rhode Island will be granted a replacement lien in all postpetition property of the Debtors, of the same nature, to the same extent, and with the same priority as the lien existing as of the Petition Date. In addition, Spectrum proposes to make monthly payments to Bank Rhode Island in the amount of $52,000. Bank's Objection Bank Rhode Island objects to the use of its cash collateral by the Debtor because (i) the Debtor's assertion that the Bank is adequately protected is not credible; and (ii) based on owner Hanibal Tayeh's actions, the Bank has, and this Court should have, no confidence that the use of the Bank's cash collateral will benefit the Debtor or its operations. Counsel to the Bank, Gardner H. Palmer, Jr., Esq., at DiOrio Law Office, argues that the Debtor's adequate protection proposal lacks credibility. He notes that Spectrum has provided scant evidence of the value of its assets. Spectrum's entire proof of value appears to rest on Paragraph 21 of the Affidavit of Tayeh where he simply states "The value of the collateral securing the Bank RI loans is estimated to be approximately $17,000,000." Mr. Palmer adds that permitting Mr. Tayeh to run the Debtors' business and use the Bank's cash collateral will constitute a lack of adequate protection. According to bank, Spectrum's operations under Tayeh's leadership were marked by highly questionable, likely fraudulent, conduct. A nonexhaustive sampling of this conduct includes preparation and use of fraudulent documents; diversion of company assets for non-business purposes; actual or attempted inflation of company receivables; and misrepresentations to vendors. In light of this history, the bank believes that allowing Mr. Tayeh to return and use the Bank's cash collateral cannot provide adequate protection. About Spectrum Analytical Spectrum Analytical Inc. provides testing and analytical data for environmental interests. Hanibal Technology LLC serves as Spectrum's exclusive international marketing and sales agent, and focuses on education, research, and development in environmental technology. Spectrum maintains offices in Agawam, Massachusetts, Tampa, Florida, North Kingstown, Rhode Island, and Syracuse, New York. Spectrum Analytical and Hanibal Technology commenced Chapter 11 bankruptcy cases (Bankr. D. Mass. Case Nos. 15-30404 and 15-30405) on April 30, 2015, to retake management of their business and assets from the receiver installed by their lender. Hanibal Tayeh, the sole member, signed the bankruptcy petitions. Spectrum estimated $10 million to $50 million in assets and debt. Hanibal estimated less than $10 million in assets and debt. Bacon Wilson, P.C., serves as the Debtors' counsel. SPECTRUM ANALYTICAL: Taps Bacon Wilson as Bankruptcy Counsel ------------------------------------------------------------ Spectrum Analytical Inc. and Hanibal Technology, LLC, ask for approval from the U.S. Bankruptcy Court for the District of Massachusetts to employ the law firm of Bacon Wilson, P.C., as counsel. The Debtors seek to employ Bacon Wilson, P.C., in light of its considerable experience in bankruptcy matters and believes that the firm is well qualified to represent the interests of the Debtors in the Chapter 11 cases. The firm will, among other things: -- provide legal advice with respect to the powers and duties of the debtors-in-possession in the continued operation of their business; -- represent the Debtors in postpetition negotiations with secured creditors; and -- represent and assist the Debtors with any postpetition sale of property of the estate. To the best of the Debtors' knowledge, Bacon Wilson does not hold or represent any interest adverse to the estates, and the members of the firm are disinterested persons within the meaning of U.S.C. Sec. 327(a) and 101(14). About Spectrum Analytical Spectrum Analytical Inc. provides testing and analytical data for environmental interests. Hanibal Technology LLC serves as Spectrum's exclusive international marketing and sales agent, and focuses on education, research, and development in environmental technology. Spectrum maintains offices in Agawam, Massachusetts, Tampa, Florida, North Kingstown, Rhode Island, and Syracuse, New York. Spectrum Analytical and Hanibal Technology commenced Chapter 11 bankruptcy cases (Bankr. D. Mass. Case Nos. 15-30404 and 15-30405) on April 30, 2015, to retake management of their business and assets from the receiver installed by their lender. Hanibal Tayeh, the sole member, signed the bankruptcy petitions. Spectrum estimated $10 million to $50 million in assets and debt. Hanibal estimated less than $10 million in assets and debt. Bacon Wilson, P.C., serves as the Debtors' counsel. STERIGENICS-NORDION HOLDINGS: S&P Rates $450MM Unsec. Notes 'CCC+' ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'CCC+' issue-level rating to Sterigenics-Nordion Holdings LLC's $450 million of senior unsecured notes due 2023. The recovery rating is '6', reflecting S&P's expectation of negligible (0% to 10%) recovery in the event of payment default. Proceeds from the note issuance will fund Warburg Pincus' purchase of a majority stake in Sterigenics from GTCR LLC. Sterigenics is the world's largest provider of contract sterilization services, with a global market share in excess of 35%. Its customers primarily operate in the medical device and food industries. While S&P believes Sterigenics has a leading position in its specific addressable market, it remains focused on a relatively narrow business niche. In addition, while favorably comparing in scale to its immediate contract sterilization competitors, Sterigenics remains a relatively small player in the broad outsourced contract services space. These weaknesses support S&P's assessment of the company's business risk profile as "fair". S&P's base-case scenario incorporates its expectation that Sterigenics' leverage will stay above 5x over the next several years. While S&P expects the company to continue generating healthy free operating cash flow and gradually reduce its financial leverage through EBITDA growth over the next few years, S&P expects the financial sponsor to shape Sterigenics' financial policy and use internally generated cash to fund shareholder returns rather than for permanent debt reduction below 5.0x. This supports S&P's "highly leveraged" financial risk profile assessment. The corporate credit rating on Sterigenics-Nordion is 'B' and the outlook is stable. RATINGS LIST Sterigenics-Nordion Holdings LLC Corporate Credit Rating B/Stable/-- New Rating Sterigenics-Nordion Holdings LLC $450 Mil. Senior Unsecured Notes Due 2023 CCC+ Recovery Rating 6 SUNTECH AMERICA: Deadline to Remove Suits Extended to Aug. 11 ------------------------------------------------------------- U.S. Bankruptcy Judge Christopher Sontchi has given Suntech America Inc. until August 11, 2015, to file notices of removal of lawsuits involving the company and its affiliates. 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. TMT PROCUREMENT: Faces Chapter 7 Conversion Lodged by Hsin Chi Su ----------------------------------------------------------------- Hsin Chi Su aka Nobu Su, an equity holder in all of TMT Procurement Corporation and its debtor-affiliates, asks the Hon. Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas to convert the Debtors' Chapter 11 bankruptcy cases to Chapter 7 proceedings. A hearing is set for May 18, 2015, at 9:00 a.m., to consider Mr. Su's conversion request. Objections, if any, are due May 12, 2015. According to Mr. Su, the Debtors confirmed a Chapter 11 plan with respect to the Handy Vessels, but it was not consummated. During the 22 months while these cases have been pending, the remaining Debtors have not confirmed any plans. The exclusivity period has long since terminated, he added. Mr. Su tells Judge Isgur the Debtors have liquidated all assets of the estate on a piecemeal basis. No assets remain other than approximately $14 million in cash which cannot be distributed to creditors until litigation between him and the Vantage Drilling Company resolved. The case has been referred to arbitration. It likely will be years before the arbitration is completed, he says. Mr. Su adds yet unpaid administrative expenses continue to mount with no source of revenue for payment other than to diminish the cash currently held by the Debtors. Mr. Su retained as counsel: Edward L. Rothberg, Esq. HOOVER SLOVACEK LLP Galleria Tower II 5051 Westheimer, Suite 1200 Houston, TX 77056 Tel: 713-977-8686 Fax: 713-977-5395 Email: rothberg@hooverslovacek.com About TMT Group Known in the industry as TMT Group, TMT USA Shipmanagement LLC and its affiliates own 17 vessels. Vessels range in size from 27,000 dead weight tons (dwt) to 320,000 dwt. TMT USA and 22 affiliates, including C. Ladybug Corporation, sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 13-33740) in Houston, Texas, on June 20, 2013 after lenders seized seven vessels. TMT filed a lawsuit in U.S. bankruptcy court aimed at forcing creditors to release the vessels so they can return to generating income. TMT has tapped attorneys from Bracewell & Giuliani LLP as bankruptcy counsel and AlixPartners as financial advisors. On a consolidated basis, the Debtors have $1.52 billion in assets and $1.46 billion in liabilities. US AIRWAYS: Pilots Settle Lump-Sum Pension Fight for $5.2-Mil. -------------------------------------------------------------- Law360 reported that U.S. District Judge Rosemary M. Collyer in Washington, D.C., approved a $5.25 million settlement between a group of former US Airways Group Inc. pilots and the airline's pension plan trustee over accusations it takes too long to hand out lump-sum benefits, six months after the judge revealed that a deal was in the works. According to the report, Judge Collyer signed off on the deal about 10 months after the D.C. Circuit reversed the judge's denial of class certification. Judge Collyer first hinted at a possible settlement in October, when she certified a class in a two-paragraph order, Law360 noted. The deal calls for the plaintiffs' counsel to receive $2 million in fees and $75,000 in costs and the settlement administrator to receive $75,000, the report said. The class includes all members of the pilots' retirement plan who retired between 1997 and 2003 and sought lump-sum benefits, but didn't receive them by the first of the month after they retired. The case is James C. Stephens, et al. v. US Airways Group Inc. et al., case 1:07-cv-01264, in the U.S. District Court for the District of Columbia. About US Airways US Airways -- http://www.usairways.com/-- along with US Airways Shuttle and US Airways Express, operates more than 3,000 flights per day and serves more than 190 communities in the U.S., Canada, Mexico, Europe, the Middle East, the Caribbean, Central and South America. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for $240 million infusion of new capital. US Airways and its subsidiaries filed another Chapter 11 petition (Bankr. E.D. Va. Case No. 04-13820) on Sept. 12, 2004. Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represented the Debtors in their restructuring efforts. The USAir II bankruptcy plan became effective on September 27, 2005. The Debtors completed their merger with America West on the same date. USA SYNTHETIC: US Trustee to Schedule Another 341 Meeting --------------------------------------------------------- The U.S. trustee overseeing USA Synthetic Fuel Corp.'s Chapter 11 case will continue the meeting of creditors to another date, according to the case docket for USA Synthetic. The bankruptcy watchdog held a meeting of creditors on April 28, 2015. About USA Synthetic Fuel Based in Lima, Ohio, USA Synthetic Fuel Corporation is an environmentally focused, development stage energy company pursuing low-cost, clean energy solutions through the deployment of Ultra Clean Btu Converter technology. Ultra Clean Btu Converter technology is a process that cost-effectively converts lower-value solid hydrocarbons, such as coal, into higher-value energy products, such as Ultra Clean Synthetic Crude, which can be refined into a variety of fuels, such as diesel, jet, and gasoline. USA Synthetic and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 15-10599) on March 17, 2015. The petitions were signed by Dr. Steven C. Vick as chief executive officer. The Debtors disclosed total assets of $7.9 million and total debts of $99.3 million. Morris, Nichols, Arsht & Tunnell, represents the Debtors as counsel. Asgaard Capital LLC acts as the Debtors' investment banker. R2B Group, LLC serves as the Debtors' interim chief financial officer provider. USA SYNTHETIC: US Trustee Unable to Form Creditors' Committee ------------------------------------------------------------- The U.S. trustee overseeing the Chapter 11 case of USA Synthetic Fuel Corp. wasn't able to form a committee to represent the company's unsecured creditors "due to insufficient interest," according to the case docket for USA Synthetic. Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About USA Synthetic Fuel Based in Lima, Ohio, USA Synthetic Fuel Corporation is an environmentally focused, development stage energy company pursuing low-cost, clean energy solutions through the deployment of Ultra Clean Btu Converter technology. Ultra Clean Btu Converter technology is a process that cost-effectively converts lower-value solid hydrocarbons, such as coal, into higher-value energy products, such as Ultra Clean Synthetic Crude, which can be refined into a variety of fuels, such as diesel, jet, and gasoline. USA Synthetic and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 15-10599) on March 17, 2015. The petitions were signed by Dr. Steven C. Vick as chief executive officer. The Debtors disclosed total assets of $7.9 million and total debts of $99.3 million. Morris, Nichols, Arsht & Tunnell, represents the Debtors as counsel. Asgaard Capital LLC acts as the Debtors' investment banker. R2B Group, LLC serves as the Debtors' interim chief financial officer provider. VANDERBUILT CONSTRUCTION: Case Summary & 6 Top Unsec. Creditors --------------------------------------------------------------- Debtor: Vanderbuilt Construction Corp. 100 Keyland Court, Unit #12 Brentwood, NY 11717 Case No.: 15-11193 Chapter 11 Petition Date: May 7, 2015 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: Hon. Shelley C. Chapman Debtor's Counsel: Dawn Kirby, Esq. DELBELLO DONNELLAN WEINGARTEN WISE & WIEDERKEHR, LLP One North Lexington Avenue White Plains, NY 10601 Tel: (914) 681-0200 Fax: 914-681-0288 Email: dkirby@ddw-law.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Kenneth Swany, president. A list of the Debtor's six largest unsecured creditors is available for free at http://bankrupt.com/misc/nysb15-11193.pdf VIRTUAL PIGGY: Amends 2014 Annual Report ---------------------------------------- Virtual Piggy Inc. has amended its annual report on Form 10-K for the fiscal year ended Dec. 31, 2014, to restate in their entirety Items 10 through 14 of Part III of the Original Filing as well as the cover page to update the number of shares of the Company's common stock outstanding and to remove the statement that information is being incorporated by reference from its definitive proxy statement. Part III of the Form 10-K discloses: -- directors, executive officers and corporate governance; -- executive compensation; -- security ownership of certain beneficial owners and management and related stockholder matters; -- certain relationships and related transactions, and director independence; and -- principal Accountant fees. The Company had 119,117,626 shares of common stock outstanding as of the close of business on April 10, 2015. A copy of the Form 10-K/A is available for free at: http://is.gd/tGY90w About Oink (Virtual Piggy, Inc.) Virtual Piggy is the provider of Oink, a secure online and in-store teen wallet. Oink enables teens to manage and spend money within parental controls, while gaining valuable financial management skills. The technology company also delivers payment platforms designed for the Under 21 age group in the global market, and enables online businesses the ability to function in a manner consistent with the Children's Online Privacy Protection Act and similar international children's privacy laws. The company, based in Hermosa Beach, CA, is on the Web at: http://www.oink.com/and holds three technology patents, US Patent No. 8,762,230, 8,650,621 and 8,812,395. Virtual Piggy reported a net loss of $9.65 million on $5,708 of sales for the year ended Dec. 31, 2014, compared to a net loss of $16 million on $2,460 of sales for the year ended Dec. 31, 2013. The Company previously incurred a net loss of $12.03 million in 2012. As of Dec. 31, 2014, the Company had $3.11 million in total assets, $1.55 million in total liabilities, all current, and $1.55 million in stockholders' equity. Morison Cogen LLP, in Bala Cynwyd, PA, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's losses from development stage activities raise substantial doubt about its ability to continue as a going concern. VIVARO CORP: Unsecured Creditors Fight $8-Mil. Leucadia Deal ------------------------------------------------------------ Law360 reported that unsecured creditors of Vivaro Corp. urged U.S. Bankruptcy Judge Martin Glenn in New York to block an $8 million settlement the official creditors committee reached with Leucadia National Corp., suggesting Leucadia got a "sweetheart deal" because it was previously represented by the committee's firm, Arent Fox LLP. According to the report, the objecting creditors include Mexican-based Marcatel SA de CV and other entities owned by telecommunication magnate Gustavo de la Garza Ortega, who was part of a consortium that purchased Vivaro in 2010. As previously reported by The Troubled Company Reporter, a New York bankruptcy judge has ruled that the unsecured creditors can keep chasing $27 million that Leucadia received in 2007 from an allegedly insolvent Vivaro unit, while axing the balance of a $50 million fraudulent transfer case. The judge found that the creditors alleged enough facts to sustain their attempt to claw back a pair of transfers that Vivaro co-debtor STi Prepaid LLC made to a Leucadia subsidiary in connection with a $121.8 million prepaid calling card business acquisition. Law360 further reported that Judge Glenn seemed skeptical during a hearing of the group of unsecured creditors and former insiders who are objecting to the settlement with Leucadia because the opponents are likely targets of future clawback claims. About Vivaro Corp. Vivaro Corp., which specializes in the sale of international calling cards in the U.S., filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-13810) on Sept. 5, 2012, together with six other related companies, including Kare Distribution Inc. The Debtor is represented by Frederick E. Schmidt, Esq., at Hanh V. Huynh, Esq., at Herrick, Feinstein LLP. Garden City Group Inc. is the claims and notice agent. A five-member official committee of unsecured creditors has been appointed in the case. The Creditors Committee is represented by: George P. Angelich, Esq. George V. Utlik, Esq. ARENT FOX LLP 1675 Broadway New York, NY 10019 Tel: (212) 484-3900 The Debtors' CRO is represented by: Phil Gund, Esq. MAROTTA GUND BUDD & DZERA, LLC The Lincoln Building 60 E. 42 Street, 50th Floor New York, NY 10165 Tel: (212) 818-1555 By Order dated January 31, 2013, the Court approved the sale of substantially all of the Debtors' assets to Next Angel, LLC, n/k/a Angel Americas, LLC. The sale closed on February 8, 2013 and divested the Debtors' Estates of their prepetition businesses. WADDELLS LONGHORN: Case Summary & 19 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Waddells Longhorn Corral, LLC 3809 N. 197th Avenue Buckeye, AZ 85396 Case No.: 15-05499 Chapter 11 Petition Date: May 6, 2015 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Hon. Scott H. Gan Debtor's Counsel: Dean M. Dinner, Esq. NUSSBAUM GILLIS & DINNER, P.C. 14850 N. Scottsdale Road, Suite 450 Scottsdale, AZ 85254 Tel: 480-609-0011 Fax: 480-609-0016 Email: ddinner@ngdlaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Eric Mansfield, member. A list of the Debtor's 19 largest unsecured creditors is available for free at http://bankrupt.com/misc/azb15-05499.pdf WALTER ENERGY: Might Consider Filing for Ch 11 Bankr. Protection ---------------------------------------------------------------- StreetInsider.com reports that Walter Energy shares were pressured after the Company filed a form 10-Q with the U.S. Securities and Exchange Commission. The Company warned in the filing that if the Company is unable to restructure the debt, the Company may consider filing voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Company stated in the filing that over the course of the last three years, the results of operations, including its operating revenues and operating cash flows, have been negatively impacted by weak coal market conditions, depressed metallurgical coal prices, reduced steel production and global steel demand. The Company's cash flows from operations were insufficient to fund its capital expenditure needs for 2014 and 2013 and the Company expects this trend to continue in 2015. "If market conditions do not improve, we expect our liquidity to continue to be adversely affected. On April 15, 2015, the Company elected to exercise the 30-day grace period under the terms of the indentures governing its 9.50% Senior Secured Notes due 2019 and its 8.50% Senior Notes due 2021 to extend the timeline for making the cash interest payments due on April 15, 2015. The aggregate amount of the interest payments is approximately $62.4 million. During the 30-day grace period, the Company is working with its debt holders to establish a capital structure that will position the Company to weather a highly competitive and challenging market," the Company said. "The election to exercise the 30-day grace period under the terms of the indentures governing its 9.50% Senior Secured Notes due 2019 and its 8.50% Senior Notes due 2021 constitutes a default; however, it does not constitute an Event of Default under the indentures governing our senior notes or the term loan credit facility. As a result of this default, certain restrictions have been placed on the Company, including but not limited to, its ability to incur additional indebtedness, draw on the revolver and issue additional letters of credit. The Company has 30 days to cure the default by making the required interest payments that were due on April 15, 2015. Alternatively, the Company may restructure the debt with its creditors," the Company added. On May 15, 2015, the Company will be making interest payments under its indenture agreements with holders of its 9.5% Senior Secured Notes due in 2019 and the 8.5% Senior Notes due in 2021. The Company said in its SEC filing that "on May 15, 2015, if the interest payment default is not cured, the default would be considered an Event of Default and all outstanding notes will become due and payable immediately without further action or notice. An Event of Default would also trigger cross defaults in the Company's other debt obligations. If any other Event of Default occurs, the trustee or the holders of at least 25% in aggregate principal amount of the then outstanding notes may declare all the notes to be due and payable immediately. An Event of Default would have a material adverse effect on the Company's liquidity, financial condition and results of operations. As of March 31, 2015, the Company had approximately $3.1 billion in principal amount of term loans, senior notes, capital lease obligations and equipment financing obligations outstanding. Based on the facts and circumstances discussed above, all of this debt is classified as a current liability in the Condensed Consolidated Balance Sheet as of March 31, 2015." About Walter Energy Walter Energy -- http://www.walterenergy.com/-- is a publicly traded "pure-play" metallurgical coal producer for the global steel industry with strategic access to steel producers in Europe, Asia and South America. The Company also produces thermal coal, anthracite, metallurgical coke and coal bed methane gas. Walter Energy employs approximately 2,700 employees, with operations in the United States, Canada and the United Kingdom. For the year ended Dec. 31, 2014, the Company reported a net loss of $471 million following a net loss of $359 million in 2013. As of Dec. 31, 2014, Walter Energy had $5.38 billion in total assets, $5.10 billion in total liabilities, and $282 million in stockholders' equity. * * * As reported by the TCR on April 21, 2015, Standard & Poor's Ratings Services lowered its corporate credit rating on Walter Energy Inc. to 'D' from 'CCC+'. "We lowered the ratings on Birmingham, Ala.-based coal miner Walter Energy after the Company elected not to pay approximately $62 million in aggregate interest payments on its 9.5% senior secured notes due 2019 and its 8.5% senior notes due 2021. A payment default has not occurred under the indentures governing the notes, which provide a 30-day grace period. However, we consider a default to have occurred because we do not expect a payment to be made within the stated grace period given the company's heavy debt burden, which we view to be unsustainable. In our opinion, the Company has sufficient liquidity to operate over the next several months as it works with creditors to restructure its balance sheet. Cash and investments totaled approximately $435 million on March 31, 2015." The TCR reported on July 10, 2014, that Moody's downgraded the Corporate Family Rating of Walter Energy to 'Caa2' from 'Caa1'. "The downgrade in the corporate family rating reflects the anticipated deterioration in performance, increased cash burn and increase in leverage, given the recent met coal benchmark settlement of $120 per tonne for high quality coking coal and our expectation that meaningful recovery in metallurgical coal markets is twelve to eighteen months away." WAVE SYSTEMS: Adopts Majority Votes in Electing Directors --------------------------------------------------------- The Board of Directors of Wave Systems Corp., on April 24, 2015, approved amendments to the Restated By-Laws of the Company, effective immediately upon adoption by the Board, to: (i) allow for the majority election of members of the Board; (ii) allow the Chairman or chief executive officer of the Company to call certain meetings of the Board at any time; (iii) provide for certain notices to be sent via electronic mail; and (iv) make certain other non-substantive changes. A summary of the Amendments are set forth below: Majority Elections: Article III, Section 1(b) was amended to provide that each member of the Board is to be elected by the vote of a majority of votes cast at any meeting for the election of directors at which a quorum is present. If an election is contested, then the election of directors is to be by a plurality of votes cast. Chairman/CEO Call for Meetings: Article III, Section 4 was amended to provide that the Chairman of the Board or Chief Executive Officer of the Company may call meetings other than regular meetings at any time. Electronic Mail Notice: Article III, Section 4 was amended to provide that notice of each Board meeting may be given to each director via electronic mail at least one day before that meeting. Use of Electronic Transmission: A new Article XIV was added to allow the Company to use "electronic transmission" to the full extent allowed by the Delaware General Corporation Law. About Wave Systems Lee, Massachusetts-based Wave Systems Corp. (NASDAQ: WAVX) -- http://www.wave.com/-- develops, produces and markets products for hardware-based digital security, including security applications and services that are complementary to and work with the specifications of the Trusted Computing Group, an industry standards organization comprised of computer and device manufacturers, software vendors and other computing products manufacturers. Wave Systems reported a net loss of $12.9 million in 2014, a net loss of $20.3 million in 2013 and a net loss of $34.0 million in 2012. As of Dec. 31, 2014, Wave Systems had $8.03 million in total assets, $14.9 million in total liabilities and a $6.91 million total stockholders' deficit. KPMG LLP, in Hartford, Connecticut, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014. The independent auditors noted that Wave Systems Corp. has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. WAYNE COUNTY, MI: Chief Unveils Plan to Dodge Bankruptcy -------------------------------------------------------- Law360 reported that local officials floated a financial recovery plan for Wayne County, Michigan, to eliminate retiree health care for county workers while tackling a $52 million structural deficit that threatens to tip the municipality, home to the city of Detroit, into insolvency. According to the report, the plan put forth by County Executive Warren C. Evans comes as the largely suburban county tries to renegotiate a new four-year union contract with 2,000 employees and stave off a looming liquidity crisis. * * * The Troubled Company Reporter, on March 16, 2015, reported that Fitch Ratings has downgraded the ratings for the following Wayne County, Michigan bonds: -- $186.3 million limited tax general obligation (LTGO) bonds issued by Wayne County to 'B' from 'BB-'; -- $51.3 million building authority (stadium) refunding bonds, series 2012 (Wayne County LTGO) issued by Detroit/Wayne County Stadium Authority to 'B' from 'BB-'; -- $203.5 million building authority bonds issued by Wayne County Building Authority to 'B' from 'BB-'; -- Wayne County unlimited tax general obligation (ULTGO) (implied) to 'B' from 'BB'. On Feb. 10, 2015, the TCR reported that Moody's Investors Services has downgraded to Ba3 from Baa3 the rating on the general obligation limited tax (GOLT) debt of Wayne County, MI. The county has a total of $695 million of long-term GOLT debt outstanding, of which $336 million is rated by Moody's. An additional $302 million of short-term GOLT delinquent tax anticipation notes are outstanding. The outlook remains negative. The TCR, on Feb. 9, 2015, also reported that Fitch Ratings has placed the following Wayne County ratings on Rating Watch Negative: -- $190.9 million limited tax general obligation (LTGO) bonds issued by Wayne County 'BB-'; -- $54.9 million building authority (stadium) refunding bonds, series 2012 (Wayne County LTGO) issued by Detroit/Wayne County Stadium Authority 'BB-'; -- $207.2 million building authority bonds issued by Wayne County Building Authority 'BB-'; -- Wayne County unlimited tax general obligation (ULTGO) (implied) 'BB'. WESTMORELAND RESOURCE: Reports $67.5M Revenues in First Quarter --------------------------------------------------------------- Westmoreland Resource Partners, LP reported its results for the three months ended March 31, 2015, which include: * An increase of $0.3 million in Adjusted EBITDA for the three months ended March 31, 2015, to $9.6 million compared to Adjusted EBITDA of $9.2 million for the three months ended March 31, 2014. * Westmoreland Resources GP, LLC, general partner of WMLP, declared a cash distribution for all unitholders and warrant unitholders of $0.20 per unit for its first quarter ended March 31, 2015. The distribution will be paid on May 15, 2015 to all unitholders and warrant unitholders of record as of the close of business on May 8, 2015. * WMLP continued their strong safety performance achieving a zero reportable and lost time incident rates for surface mining operations for the three months ended March 31, 2015. Westmoreland Resource reported a net loss of $10.3 million on $67.56 million of total revenues for the three months ended March 31, 2015, compared to a net loss of $10.56 million on $78 million of total revenues for the same period in 2014. As of March 31, 2015, the Company had $296.05 million in total assets, $176.36 million in total debt and $62.73 million in total partners' capital. "In this, our first quarter of ownership of WMLP, we began transitioning the business on to Westmoreland's systems," noted Keith Alessi, chief executive officer. "We are operating the business with an emphasis on Distributable Cash Flow and it performed in line with our expectations." A copy of the press release is available for free at: http://is.gd/3I96PT About Westmoreland Resource Oxford Resource Partners, LP, now known as Westmoreland Resource Partners, LP, is a producer of high value steam coal, and is the largest producer of surface mined coal in Ohio. Westmoreland Resource reported a net loss of $28.6 million on $322 million of total revenues for the year ended Dec. 31, 2014, compared with a net loss of $23.7 million on $347 million of total revenues for the year ended Dec. 31, 2013. WHITTEN FOUNDATION: Has Until May 14 to File Schedules ------------------------------------------------------ The Hon. Robert Summerhays of the U.S. Bankruptcy Court for the Western District of Louisiana gave Whitten Foundation until May 14, 2015, to file its schedules of assets and liabilities, and other documents that are deficient. 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. 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, XINERGY LTD: Founder Cries Foul Over Miner's Plunge Into Ch. 11 --------------------------------------------------------------- Law360 reported that Jon Nix, the founder and former chairman and CEO of bankrupt coal mining concern Xinergy Ltd., told a federal bankruptcy judge that a number of the debtors' early Chapter 11 motions should be put on hold so that he can pursue a court order in Canada to call a shareholder meeting. According to the report, Mr. Nix holds 18.5 percent of the debtor's 65.8 million Toronto-traded shares. About Xinergy Ltd. Xinergy is a U.S. producer of metallurgical and thermal coal with mineral reserves, mining operations and coal properties located in the Central Appalachian ("CAPP") regions of West Virginia and Virginia. Xinergy's operations principally include two active mining complexes known as South Fork and Raven Crest located in Greenbrier and Boone Counties, West Virginia. Xinergy also leases or owns the mineral rights to properties located in Fayette, Nicholas and Greenbrier Counties, West Virginia and Wise County, Virginia. Collectively, Xinergy leases or owns mineral rights to approximately 72,000 acres with proven and probable coal reserves of approximately 77 million tons and additional estimated reserves of 40 million tons. Xinergy Ltd. and 25 subsidiaries commenced Chapter 11 bankruptcy cases (Bankr. W.D. Va. Lead Case No. 15-70444) in Roanoke, Virginia, on April 6, 2015. The cases have been assigned to Judge Paul M. Black. The cases are being jointly administered for procedural purposes. The Debtors tapped Hunton & Williams LLP as attorneys; Global Hunter Securities, as financial advisor, and American Legal Claims Services, LLC as claims, noticing and balloting agent. YMCA MILWAUKEE: Gets Final Decree Closing Bankruptcy Case --------------------------------------------------------- The Hon. Susan V. Kelley of the U.S. Bankruptcy Court for the Eastern District of Wisconsin issued a final decree and order closing the Chapter 11 bankruptcy case of The Young Men's Christian Association of Metropolitan Milwaukee, Inc. As reported in the Troubled Company Reporter on March 18, 2015, the Debtors related that on Jan. 30, 2015, they obtained a Court order confirming their joint plan of reorganization. The plan has been substantially consummated and the Debtors' estates are fully administered. About YMCA Milwaukee The Young Men's Christian Association of Metropolitan Milwaukee, Inc., and affiliate, YMCA Youth Leadership Academy, Inc., filed voluntary Chapter 11 bankruptcy petitions (Bankr. E.D. Wis. Case Nos. 14-27174 and 14-27175) in Milwaukee, on June 4, 2014. YMCA Milwaukee, which has more than 100,000 members using its centers and camps, plans to sell a majority of its owned real estate to help pay down $29 million in debt. YMCA Milwaukee estimated $10 million to $50 million in both assets and liabilities. YMCA Academy estimated $100,000 to $500,000 in both assets and liabilities. The formal schedules of assets and liabilities are due June 18, 2014. The cases are assigned to Judge Susan V. Kelley. The Debtors have tapped Olivier H. Reiher, Esq., and Mark L. Metz, Esq., at Leverson & Metz, S.C., in Milwaukee, as counsel. The Debtors have engaged Ernst & Young LLP as their financial advisors, and Reputation Partners, L.L.C. as their public relations advisors. The Debtors have also tapped Fox, O'Neill & Shannon, S.C. as their special counsel for real estate matters. On June 30, 2014, the Official Committee of Unsecured Creditors won approval to retain Goldstein & McClintock LLLP as its counsel, provided that the G&M attorney who had represented the BMO participant may not participate in representation of the Committee. The Committee also won approval to hire Navera Group, LLC as financial advisors. [*] April Bankruptcy Filings Decrease 12% from Previous Year ------------------------------------------------------------ Total bankruptcy filings in the United States decreased 12 percent in April 2015 over April of last year, according to data provided by Epiq Systems, Inc. Bankruptcy filings totaled 77,884 in April 2015, down from the April 2014 total of 88,163. Consumer filings declined 11 percent to 75,272 from the April 2015 consumer filing total of 84,762. Total commercial filings in April 2015 decreased to 2,612, representing a 23 percent decline from the 3,401 business filings recorded in April 2014. Total commercial chapter 11 filings dipped 41 percent to 405 filings in April 2015 from the 689 commercial chapter 11 filings registered in April 2014. "Sustained low interest rates for business borrowers, flat consumer debt levels and the high costs associated with filing for bankruptcy continue to suppress the filing totals," said ABI Executive Director Samuel J. Gerdano. "Fewer consumers and businesses are turning to the Bankruptcy Code for a financial fresh start." To provide distressed companies better access to the rehabilitative powers of the Bankruptcy Code, the ABI Commission to Study the Reform of Chapter 11 released its Final Report in December 2014 containing recommendations for modernizing chapter 11 business reorganizations. The Commission's Final Report recommends improvements to the Code to account for today's evolving corporate climate and to encourage debtors to file before they have to liquidate. Total bankruptcy filings for the month of April represented a 5 percent decrease compared to the 81,662 total filings recorded in March 2015. Total noncommercial filings for April also represented a 5 percent decrease from the March 2015 noncommercial filing total of 79,000. April's commercial filing total represented a 2 percent decrease from the March 2015 commercial filing total of 2,662. April commercial chapter 11 filings also decreased 2 percent when compared to the 412 filings registered the previous month. The average nationwide per capita bankruptcy-filing rate in April was 2.74 (total filings per 1,000 per population), an increase from the 2.65 rate registered in the first three months of the year. Average total filings per day in April 2015 were 2,596, a 12 percent decrease from the 2,939 total daily filings in April 2014. States with the highest per capita filing rates (total filings per 1,000 population) in April 2015 were: 1. Tennessee (5.63) 2. Alabama (5.24) 3. Georgia (4.85) 4. Illinois (4.66) 5. Utah (4.31) ABI has partnered with Epiq Systems, Inc. in order to provide the most current bankruptcy filing data for analysts, researchers and members of the news media. Epiq Systems is a leading provider of managed technology for the global legal profession. To view the full monthly statistic tables provided by Epiq Systems, be sure to visit ABI's Newsroom. For further information about the statistics or additional requests, please contact ABI Public Affairs Manager John Hartgen at 703-894-5935 or jhartgen@abiworld.org/ [*] Bankruptcy Filings Drop 12% to 77,884 in April 2015 ------------------------------------------------------- Monitor Daily reports that total bankruptcy filings in the U.S. dropped 12% to 77,884 in April 2015, from 88,163 in April 2014, and 5% from 81,662 in March 2015. Monitor Daily relates that data provided by Epiq Systems show that total commercial Chapter 11 filings decreased 41% to 405 filings in April 2015 from the 689 in April 2014. According to Monitor Daily, the April 2015 commercial filings in April 2015 declined 23% from the 3,401 in April 2014. Monitor Daily quoted ABI Executive Director Samuel J. Gerdano as saying, "Sustained low-interest rates for business borrowers, flat consumer debt levels and the high costs associated with filing for bankruptcy continue to suppress the filing totals. Fewer consumers and businesses are turning to the Bankruptcy Code for a financial fresh start." According to LancasterOnline, John A. DiGiamberardino at Case, DiGiamberardino & Lutz, P.C., said that more people "are just closing the doors and not filing business bankruptcy." "I think businesses are going another route instead of bankruptcy. Banks are starting to try to work with these debtors outside of bankruptcy more than they have in the past," LancasterOnline quoted Matt Samley, at Reese, Samley, Wagenseller, Mecum & Longer, P.C., as saying. ********* 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 ***