/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/150519.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, May 19, 2015, Vol. 19, No. 139 Headlines 21ST CENTURY ONCOLOGY: Incurs $15.2 Million Net Loss in Q1 800 BUILDING LLC: Case Summary & 18 Largest Unsecured Creditors 800 BUILDING: Files for Chapter 11 with Deal to Sell Skyscraper ADAMIS PHARMACEUTICALS: Posts $3.14 Million Net Loss in Q1 AFFINION GROUP: Moody's Lowers CFR to Caa2, Outlook Negative AH'PIZZ CORPORATION: Case Summary & 20 Top Unsecured Creditors ALLIED NEVADA: Wants Court to Set June 24 Claims Bar Date ALTEGRITY INC: Plan Confirmation Hearing Set for July 1 AMARILLO BIOSCIENCES: Summarizes New Operating Plan After Ch11 Exit AMERICAN ENERGY: Moody's Cuts CFR to 'Caa2', Outlook Negative AMERICAN LIBERTY: Section 341 Meeting Scheduled for June 11 AMERICAN ROCK: Moody's Raises CFR to 'B2', Outlook Stable AMERICAN ROCK: S&P Raises Corp. Credit Rating to B, Outlook Stable ARKANOVA ENERGY: Posts $1 Million Net Loss in Second Quarter ASHLEY'S TRANSPORTATION: Case Summary & 20 Top Unsecured Creditors AUBURN TRACE: Delray Beach to Become Lead Creditor AUBURN TRACE: Proposes $9.5M Sale to The Related Group BALMORAL RACING: Inks Stipulation with Casino Operators BATTLE CREEK: Files for Ch. 11 with $9.3 Million in Debt BERRY PLASTICS: Extends Maturity BofA Credit Facility to May 2020 BG MEDICINE: Incurs $1.34 Million Net Loss in First Quarter BG MEDICINE: Posts $1.34 Million Net Loss in First Quarter BION ENVIRONMENTAL: Posts $1.68 Million Net Loss in 3rd Quarter BION ENVIRONMENTAL: Vice Chairman Testifies at Senate Hearing BPZ RESOURCES: Files Schedules of Assets and Liabilities BROADWAY FINANCIAL: Amends 18.9M Shares Resale Prospectus BROADWAY FINANCIAL: Reports $1.3M Net Income in First Quarter BTB CORPORATION: Case Summary & 20 Largest Unsecured Creditors BTB CORPORATION: Files for Chapter 11 with $13MM in Debt CHG HEALTHCARE: S&P Retains 'B' Rating on 1st Lien Debt Add-on CHINA TELETECH: WWC Resigns as Accountant COCRYSTAL PHARMA: Incurs $16.5 Million Net Loss in First Quarter COMDISCO HOLDING: Reports Fiscal 2nd Quarter Financial Results CONVATEC HEALTHCARE: Moody's Affirms B2 CFR, Outlook Negative CONVATEC HEALTHCARE: S&P Affirms B+ CCR & Rates $1.85MM Loans B+ CORD BLOOD: Cryo-Cell Reports 7.2% Equity Stake as of May 14 CUMULUS MEDIA: Stockholders Elect 7 Directors to Board DANDRIT BIOTECH: Robert Wolf Quits From Board of Directors DAVID'S BRIDAL: Moody's Alters Ratings Outlook to Negative DIA-DEN LTD: Wants Claims Bar Date Shortened to June 8 DILLARD'S INC: Fitch Affirms 'BB' Rating on Capital Securities DOLPHIN DIGITAL: Incurs $1.05 Million Net Loss in First Quarter DR TATTOFF: Delays Q1 Form 10-Q Due to Staffing Issues DUER WAGNER III OIL: Case Summary & Largest Unsecured Creditors EAST SAILE: Case Summary & 2 Largest Unsecured Creditors ECO BUILDING: Needs More Time to File Q1 For 10-Q ECOSPHERE TECHNOLOGIES: Obtains $250,000 Loan From Brisben Water ENDEAVOUR INT'L: Proposes Aug. 11 Auction of Assets EPAZZ INC: Needs More Time to File Q1 Form 10-Q ESCO MARINE: Taps AP Services to Handle Reorganization ESP RESOURCES: Delays First Quarter Form 10-Q ETRADE FINANCIAL: S&P Puts 'BB-' ICR on CreditWatch Positive EURAMAX HOLDINGS: Reports $31.4 Million Net Loss in First Quarter EVANS & SUTHERLAND: Posts $103,000 Net Income in First Quarter FINJAN HOLDINGS: Provides 1st Quarter Shareholder Update FIVE S PLUS: Files Schedules of Assets and Liabilities FLETCHER INTERNATIONAL: Administrative Bar Date Moved to May 29 FOUNDATION HEALTHCARE: Files First Quarter Form 10-Q FOUR OAKS: Files First Quarter Form 10-Q FRAC SPECIALISTS: Case Summary & 20 Largest Unsecured Creditors FRAC SPECIALISTS: Permian Basin Services Providers in Chapter 11 FRAC SPECIALISTS: Seeks to Use Cash Collateral FUEL PERFORMANCE: Posts $471,000 Net Loss in First Quarter FUSION TELECOMMUNICATIONS: Posts $4.68 Million Net Loss in Q1 GENERAL MOTORS: Does Not Owe UAW Retirees, Appeals Court Rules GENERAL STEEL: Incurs $74.1 Million Net Loss in First Quarter GENIUS BRANDS: Reports $636,000 Net Loss in First Quarter GEORGETOWN MOBILE: Section 341 Meeting Scheduled for June 10 GOLDEN COUNTY FOODS: Frozen Foods Provider Enters Chapter 11 GRASS VALLEY HOLDINGS: Files for Chapter 11 in Salt Lake City GRASS VALLEY HOLDINGS: Proposes Fabian & Clendenin as Counsel GRASS VALLEY: Case Summary & 13 Largest Unsecured Creditors GUIDED THERAPEUTICS: Posts $1.2 Million Net Loss in First Quarter HART OIL: Citizens Bank Committed Fraud, Liquidation Trustee Says HCSB FINANCIAL: Posts $95,000 Net Loss in First Quarter HEALTHWAREHOUSE.COM INC: Posts 9.3% Sales Growth Qtr. Over Qtr. HNO GREEN FUELS: Case Summary & 10 Largest Unsecured Creditors HNO GREEN FUELS: Schedules and Statements Due June 1 I.E.C. RENTALS: Shareholders Wants Case Converted to Chap. 7 INTEGRATED BIOPHARMA: Posts $106,000 Net Loss in Third Quarter INTERLEUKIN GENETICS: Incurs $1.84-Mil. Net Loss in First Quarter KLM OPTICAL: Case Summary & 20 Largest Unsecured Creditors LEHMAN BROTHERS: Curacao Unit to Finalize Bankruptcy Proceedings LSI RETAIL II: Court Approves Hiring of Mountain High as Broker LSI RETAIL II: Court OKs Allen & Vellone as Special Counsel LSI RETAIL II: Hires Fox Rothschild as Special Counsel MAGNETATION LLC: Creditors Object to DIP, Cash Use Request MARINA BIOTECH: Obtains $400,000 Milestone Payment From Mirna MARINA BIOTECH: Reports $414,000 Net Income in First Quarter MCCLATCHY CO: Morgan Stanley Owns 1.6% of Class A Shares MERRIMACK PHARMACEUTICALS: Stockholders Elect 9 Directors MILESTONE SCIENTIFIC: Reports $419,000 Net Loss in 1st Quarter MINT LEASING: Delays First Quarter Form 10-Q NATEL ENGINEERING: S&P Assigns 'B+' CCR, Outlook Stable NET ELEMENT: Beno Distribution Holds 9.6% Stake as of April 30 NET ELEMENT: Posts $2.24 Million Net Loss in First Quarter NEW YORK MILITARY: U.S. Trustee Forms 3-Member Creditors Committee NEWLEAD HOLDINGS: Incurs $100 Million Net Loss in 2014 NGPL PIPECO: Fitch Lowers Issuer Default Rating to 'CCC' NJRC CENTER: Voluntary Chapter 11 Case Summary NY MILITARY ACADEMY: Court OKs Wasserman as Committee Counsel OAS FINANCE: Chapter 15 Case Summary ONE SOURCE: Has Until Aug. 3 to Decide on Unxpired Leases ONE SOURCE: Stipulation on Adequate Protection for CNHI Approved ORANGE COUNTY POOLS: Case Summary & 17 Top Unsecured Creditors PARAMOUNT RESOURCES: Moody's Lifts CFR to B1 & Rates New Notes B3 PARAMOUNT RESOURCES: S&P Rates US$400MM Sr. Unsecured Bonds 'BB-' PARK 91 LLC: Sec. 341(a) Meeting of Creditors Set for June 4 PARK 91: Hires Town Firm as Real Estate Broker PATRIOT COAL: Proposes $100MM of Financing from Existing Lenders PGI INCORPORATED: Posts $1.88 Million Net Loss in First Quarter PHYSICAL PROPERTY: Posts HK$154,000 Net Loss in First Quarter PITTSBURGH GLASS: Moody's Raises CFR to 'B2', Outlook Stable POSITRON CORP: Posts $554,000 Net Loss in First Quarter PRA HOLDINGS: S&P Affirms 'B' CCR & Revises Outlook to Positive PRECISION OPTICS: Posts $198,000 Net Loss in Third Quarter PRESIDENTIAL REALTY: Reports $159,000 Net Loss in First Quarter PRESSURE BIOSCIENCES: Incurs $2.06 Million Net Loss in Q1 PROJECT BARBOUR: Moody's Cuts Ratings on $1.1BB Secured Loans to B2 PURADYN FILTER: Posts $266,000 Net Loss in First Quarter QUALITY DISTRIBUTION: Postpones 2015 Annual Meeting QUANTUM CORP: Files Conflict Minerals Report with SEC RANCH 967 LLC: U.S. Trustee Unable to Form Creditors Committee RCC CONSULTANTS: May 20 Meeting Set to Form Creditors' Panel RECOVERY CENTERS OF KING COUNTY: Rehab Facility Enters Ch. 11 RECOVERY CENTERS: Case Summary & 20 Largest Unsecured Creditors RICEBRAN TECHNOLOGIES: Posts $3.6M Net Loss in First Quarter RIENZI & SONS: Hires Funaro & Co as Accountants RIENZI & SONS: UST Forms 5-Member Creditors Committee SAN JUAN RESORT: Files Amended Schedules of Assets and Debts SARATOGA RESOURCES: Nevins Joins Board Under Forbearance Agreement SCOTT JOHNSON CONSTRUCTION: Case Summary & 7 Top Unsec. Creditors SECOND SKIN: Files for Chapter 11 Bankruptcy Protection SILVERADO STREET: St. Regis Residence Wants Stay Lifted SMART TECHNOLOGIES: S&P Lowers CCR to 'B-', Outlook Negative SPENDSMART NETWORKS: Appoints Bruce Neuschwander as CFO SUNTECH AMERICA: Seeks Aug. 10 Extension of Lease Decision Date SUNTECH AMERICA: Seeks Sept. 9 Extension of Plan Filing Date SUNVALLEY SOLAR: Delays Q1 Form 10-Q for Review THINKSTREAM INC: Creditors Again Submit Involuntary Petition TONGJI HEALTHCARE: Incurs $70,200 Net Loss in First Quarter TRANSDIGM INC: S&P Assigns 'B' Rating on Sr. Secured Term Loan E TRANSGENOMIC INC: Posts $3.37 Million Net Loss in First Quarter TROCOM CONSTRUCTION: Section 341 Meeting Set for June 19 TRW AUTOMOTIVE: Moody's Withdraws 'Ba1' Corporate Family Rating TRW AUTOMOTIVE: S&P Lowers CCR to 'BB', Then Withdraws Rating VERMILLION INC: Reports Positive Results of OVA2 VICTORY ENERGY: Delays Filing of Q1 Form 10-Q VICTORY ENERGY: Terminates Proposed Merger with Lucas Energy VIGGLE INC: Amends $40 Million Securities Prospectus WAFERGEN BIO-SYSTEMS: Files First Quarter Form 10-Q Report WBH ENERGY: Seeks Aug. 2 Extension of Exclusive Plan Filing Date [*] AEG Partners Mourns Loss of Founding Partner Larry Adelman [*] Duane Morris' Walter Greenhalgh to Receive Manny Katten Award [^] Large Companies With Insolvent Balance Sheet ********* 21ST CENTURY ONCOLOGY: Incurs $15.2 Million Net Loss in Q1 ---------------------------------------------------------- 21st Century Oncology Holdings, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company's shareholders of $15.2 million on $278 million of total revenues for the three months ended March 31, 2015, compared to a net loss attributable to the Company's shareholders of $30.2 million on $233 million of total revenues for the same period last year. As of March 31, 2015, the Company had $1.15 billion in total assets, $1.23 billion in total liabilities, $353 million in series A convertible redeemable preferred stock, $55.1 million in noncontrolling interests, and a $496.17 million total deficit. "The Company is highly leveraged. As of March 31, 2015, the Company had approximately $960.8 million of long-term debt outstanding. The Company has experienced and continues to experience losses from its operations. The Company reported a net loss of approximately $349.3 million, $78.2 million and $151.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, and $12.9 million and $29.2 million for the three month periods ended March 31, 2015 and 2014, respectively. The Company's cash from operations has improved from cash used in operating activities of $0.3 million to cash provided by operating activities of $22.7 million for the three months ended March 31, 2014 and 2015, respectively," the Company states in the filing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/OjTNFk About 21st Century 21st Century Oncology, Inc., formerly known as Radiation Therapy Services, Inc. ("RTS") owns and operates radiation treatment facilities in the US and Latin America. * * * As reported by the TCR on Feb. 27, 2015, Moody's Investors Service upgraded 21st Century Oncology, Inc.'s Corporate Family Rating and Probability of Default Rating to B3 and B3-PD, respectively. The upgrade of the Corporate Family Rating to B3 and SGL to SGL-2 reflects the receipt of a $325 million preferred equity investment from the Canada Pension Plan Investment Board and subsequent debt reduction. In the April 16, 2015, edition of the TCR, Standard & Poor's Ratings Services affirmed its 'B-' corporate credit rating on Fort Myers-based cancer care provider 21st Century Oncology Holdings Inc. 800 BUILDING LLC: Case Summary & 18 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: The 800 Building, LLC 1016 W. Hollywood Ave. Chicago, IL 60660 Case No.: 15-17314 Type of Business: Rental Poperties Chapter 11 Petition Date: May 15, 2015 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Hon. Pamela S. Hollis Debtor's Counsel: Phillip W. Nelson, Esq. David J. Fischer, Esq. LOCKE LORD LLP 111 South Wacker Drive Chicago, IL 60606 Tel: 312-201-2575 Fax: 855-587-1388 Email: phillip.nelson@lockelord.com david.fischer@lockelord.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Leon Petcov, managing member. List of Debtor's 18 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ 2006 Heyburn Building, LLC $21,400 Chase Environmental Group, Inc. $14,356 Commercial Management, LLC $18,000 Department of the Treasury, IRS Unknown Evens Time, Inc. $1,541 Fine Homes, LLC Unknown IPFS Corporation $8,661 JBS & Assocs. Accnts and $2,000 Consltants Kentucky Department of Revenue Unknown Louisville Gas & Electric $11,717 Louisville Gas & Electric $8,489 Louisville Water Company $19,709 Matherly Land Consultants, PPLC $2,500 Rentpath, Inc. $8,260 Rumpke of Kentucky, Inc. $2,469 The Murphy Elevator Co. $5,807 Tikijian Associates $400,000 Attn: George Tikijian, President 3755 E. 82nd St., Ste. 265 Indianapolis, IN 46240 Wyatt, Tarrant & Combs, LLP $210,000 800 BUILDING: Files for Chapter 11 with Deal to Sell Skyscraper --------------------------------------------------------------- The 800 Building, LLC, sought Chapter 11 protection with a deal to sell its 246-unit residential high-rise in downtown Louisville, Kentucky known as "The 800 Building" for $20.65 million, absent higher and better offers. Prepetition, the Debtor engaged in an extensive, months-long effort to market The 800 Building and reached an agreement with a capable, well-funded purchaser to sell The 800 Building for approximately $20.65 million. After paying off the Debtor's secured debts and costs of sale, the Debtor will be left with approximately $3.5 million in proceeds -- more than enough to pay all of the Debtor's unsecured debts and pay a dividend to the Debtor's equity owners, Leon and Helen Petcov. Unfortunately, the Petcovs are in the midst of a dispute with one of their creditors who, having learned of the imminent sale of The 800 Building, has filed a lis pendens against The 800 Building to block the sale. The Debtor believes that this creditor, Fine Homes LLC, an Illinois limited liability company owned by the Loyfmans and managed by Michael Loyfman, in fact, has no claim against the Debtor or its assets and that -- in any event -- that claim can be resolved out of the proceeds of the sale. Nevertheless, the title company has refused to insure over the creditor's lis pendens, and removal of the lis pendens through available state-court processes would imperil the Debtor's ability to close the sale and would result in irreparable harm to the Debtor's estate. Counsel to the Debtor, Phillip W. Nelson, Esq., at Locke Lord LLP, notes that the sale of The 800 Building (which was originally intended to close earlier this year) has already undergone delays due to the need to resolve diligence concerns regarding an underground storage tank at the property (which have now been fully resolved). However, the proposed purchaser is now facing a hard deadline on the expiration of its financing commitment on June 15, 2015. Additionally, under the terms of the Debtor's forbearance with Republic Bank of Chicago, the Debtor will be obligated to the bank for a $500,000 forbearance fee if the bank's loans are not repaid by June 15, 2015. The Debtor and the proposed purchaser have concluded that sale of The 800 Building pursuant to Section 363(f) of the Bankruptcy Code, with all liens, claims, encumbrances, and interests attaching to the proceeds is certainly the best, and perhaps the only, means for the Debtor to complete the sale in a timely manner and obtain the benefits the doing so offers and avoid the costs that failing to do so will entail. $20.65MM Offer 800 City Apartments LLC, an entity formed by Village Green Development Holding LLC, will purchase the 800 Building for $20.65 million, absent higher and better offers. To supplement the Debtor's prepetition marketing efforts, the proposed purchaser has agreed to serve as a stalking-horse for an expedited sales process, thus providing additional assurances that the value to be obtained from the sale will be the highest and best that can be realized under the circumstances. The proposed purchaser's agreement to participate in this process in contingent upon certain stalking-horse protections, and the Debtor's commitment to complete the sale process and obtain authority to close The 800 Building sale no later than June 10, 2015. In the event the Debtor pursues a sale transaction with another party, the Debtor will pay the stalking horse a break-up fee of $618,000 and reimbursement of out-of-pocket costs of up to $50,000. Bankruptcy Auction The Debtor believes that it is essential to move forward with the sale process as quickly as possible and, in all events, complete the sale of The 800 Building by June 10, 2015. The Debtor proposes to proceed with the sale process in accordance with this schedule: * Bid Deadline: May 28, 2015 at 5:00 p.m. Central Time, as the deadline by which all bids other than the stalking-horse bid for The 800 Building must be actually received; * Auction: May 30, 2015 at 10:00 a.m. Central Time, as the date and time the auction, one if one is needed, will be held at the offices of Locke Lord LLP, 111 South Wacker Drive, Chicago Illinois; * Sale Objection Deadline: June 1, 2015 at 5:00 Central Time, as the deadline to object to the Sale; * Sale Hearing: June 2, 2015 at 9:30 a.m. Central Time, as the date and time for the Sale Hearing; and * Contract Assignment Objection Deadline: June 1, 2015 at 5:00 p.m. Central Time, as the deadline to object to the assignment of contracts. To participate in the auction, an initial bid must exceed Village Green's stalking-horse bid by at least $1,050,000, reflecting an overbid of $382,000 (or 1.8% of the $20,650,000 proposed purchase price, plus the $618,000 break-up fee and $50,000 expense reimbursement). A hearing on the proposed bidding procedures is slated for may 21, 2015, at 10:00 a.m. Central Time. Prepetition Capital Structure The Debtor, and its related debtor-affiliate 1016 West Hollywood, LLC — whose case is presently pending before Judge Jacqueline Cox in this district — along with certain of their non-debtor affiliates have reached agreements to resolve their secured debt with their lenders, International Bank of Chicago and Republic Bank of Chicago. To complete that restructuring, the Debtor and its affiliates need the liquidity that will come from the sale of The 800 Building. The Debtor is the borrower under a loan agreement with Republic Bank of Chicago with a balance of approximately $16.46 million, which is secured by a first-priority lien on substantially all of the Debtor's assets, including mortgages on The 800 Building and the Garage. The Republic Bank Debt is also secured by first-priority mortgages on two parking lots in Louisville, Kentucky that are owned by non-debtor affiliates of the Debtor, 233 W. Chestnut, LLC and 601 S. 3rd Street, LLC. The Debtor is also the borrower under a promissory note issued to International Bank of Chicago with a balance of approximately $457,000, which is secured by a second-priority mortgages on The 800 Building and the Garage. About The 800 Building The 800 Building, LLC, owns and operates two adjacent but related rental properties in downtown Louisville, Kentucky: (a) a 246-unit residential apartment building known as The 800 Building, with a street address of 800 South 4th Street; and (b) a 48-slot parking garage, with a street address of 820 South 4th Street. The 800 Building is a 29-story, 290-foot skyscraper built in 1963. The company acquired The 800 Building in 2002 for $5.5 million and renovated the building in 2004. The company is owned by Leon and Helen Petcov and is managed by Leon Petcov. The 800 Building, LLC, sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 15-17314) in Chicago, Illinois, on May 15, 2015. The case is assigned to Judge Pamela S. Hollis The Debtor tapped Phillip W. Nelson, Esq., at Locke Lord LLP, in Chicago, as counsel. ADAMIS PHARMACEUTICALS: Posts $3.14 Million Net Loss in Q1 ---------------------------------------------------------- Adamis Pharmaceuticals Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.14 million for the three months ended March 31, 2015, compared to a net loss of $1.55 million for the same period last year. Adamis had no revenues during the three month periods ended March 31, 2015 and 2014, respectively. As of March 31, 2015, the Company had $20.01 million in total assets, $2.27 million in total liabilities and $17.7 million in total stockholders' equity. The Company's cash was $11.2 million and $3.77 million at March 31, 2015, and Dec. 31, 2014, respectively. "Our management intends to attempt to secure additional required funding through equity or debt financings, sales or out-licensing of intellectual property assets, seeking partnerships with other pharmaceutical companies or third parties to co-develop and fund research and development efforts, or similar transactions. However, there can be no assurance that we will be able to obtain any required additional funding. If we are unsuccessful in securing funding from any of these sources, we will defer, reduce or eliminate certain planned expenditures and delay development or commercialization of some or all of our products. If we do not have sufficient funds to continue operations, we could be required to seek bankruptcy protection or other alternatives that could result in our stockholders losing some or all of their investment in us," the Company warns in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/556cfC About Adamis San Diego, Calif.-based Adamis Pharmaceuticals Corporation (OTC QB: ADMP) is a biopharmaceutical company engaged in the development and commercialization of specialty pharmaceutical and biotechnology products in the therapeutic areas of respiratory disease, allergy, oncology and immunology. Mayer Hoffman McCann, P.C., in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the transition period ended Dec. 31, 2014, citing that the Company has incurred recurring losses from operations, and is dependent on additional financing to fund operations. The Company disclosed a net loss of $9.31 million on $0 of revenue for the nine months ended Dec. 31, 2014, compared to a net loss of $8.15 million on $0 of revenue for the 12 months ended March 31, 2014. AFFINION GROUP: Moody's Lowers CFR to Caa2, Outlook Negative ------------------------------------------------------------ Moody's Investors Service downgraded Affinion Group Holdings, Inc.'s Corporate Family Rating and Probability of Default Rating to Caa2 and Caa2-PD, respectively. As result of a change in the company's CFR Moody's also took the following action on all debt instruments as indicated below. Additionally, the Speculative Grade Liquidity (SGL) rating was lowered to SGL-4 from SGL-3. The ratings outlook remains negative. The downgrade of the CFR to Caa2 reflects Moody's view that the company's default risk has increased given the absence of material progress to date in stabilizing persistently negative operating trends and uncertainty surrounding additional legal obligations amidst tight near term liquidity. Moody's expects that the company's highly leveraged capital structure is most likely not sustainable over the intermediate term and will have to be addressed, raising the potential for a default. Given these concerns, Moody's also believes that the company may have limited time and limited financial flexibility to execute a meaningful turnaround, and therefore Affinion may face difficulty in refinancing its debt maturity wall in 2018. The lowering of Affinion's SGL rating to SGL-4 reflects Moody's expectation that the company will have a weak liquidity profile in the near term, characterized by negative free cash flow generation, modest cash balances and significant revolver borrowings. At March 31, 2015, Affinion had $36.9 million of balance sheet cash and $30.5 million of availability, after $15.5 million in letters of credit, under its $80 million senior secured revolver. The company has approximately $35 million of debt maturing over the next twelve months, very high annual cash interest expense of roughly $185 million and an estimated $35-40 million of certain legal and restructuring cash payments over the same period. While Moody's expects the company will likely meet all of its cash obligations over the next twelve months, its liquidity will remain weak. The company is expected to remain in compliance with covenants under its loan agreement. Moody's took the following rating actions on Affinion Group Holdings, Inc.: -- Corporate Family Rating, downgraded to Caa2 from Caa1 -- Probability of Default Rating, downgraded to Caa2-PD from Caa1-PD -- Speculative Grade Liquidity rating , lowered to SGL-4 from SGL-3 -- $325 million ($32.2 million outstanding) senior global notes due 2015, downgraded to Ca (LGD6) from Caa3 (LGD5) -- $242.8 million senior secured PIK/Toggle notes due 2018, downgraded to Ca (LGD6) from Caa3 (LGD5) -- Rating outlook is negative Moody's took the following rating actions on Affinion Group, Inc.: -- $80 million senior secured revolver due 2018, affirmed at B1 (LGD2) -- $775 million first lien term loan due 2018, affirmed at B1 (LGD2) -- $425 million second lien term loan due 2018, downgraded to Caa1 (LGD3) from B3 (LGD3) -- $475 million senior unsecured notes due 2018, downgraded to Caa3 (LGD4) from Caa2 (LGD4) -- Rating outlook is negative Moody's took the following rating actions on Affinion Investments, LLC: -- $360 million senior subordinated notes due 2018, affirmed at Caa3 (LGD5) -- Rating outlook is negative The Caa2 CFR reflects Affinion's continued challenges of turning around the company's negative operating trend, exceptionally high level of debt, with debt/EBITDA (incorporating Moody's adjustments) expected to be near 9.0 times through 2015, and Moody's concern that the current capital structure is unsustainable in the absence of a marked recovery in operating results. The company is facing an uphill challenge in its business transformation, which includes fostering the loyalty segment's growth and increasing penetration into overseas markets. There is, moreover, the specter of ongoing and possible expanding legal challenges, which could prove both costly and distracting. Moody's expects Affinion's liquidity will remain weak over the next twelve months. The rating gives favorable consideration to the company's good global market presence, supported by its large membership base, its direct marketing expertise and strong margins in its global loyalty business. The negative outlook reflects Moody's expectation that Affinion will continue to experience declines in consolidated revenues and EBITDA, resulting in debt/EBITDA approaching 9.0 times by the end of fiscal 2015. The outlook also incorporates Moody's view that the company's liquidity will remain weak in the near term. The outlook could be stabilized if the company can improve its operating performance such that debt/EBITDA is sustained below 8.0 times and address its near term liquidity needs. The ratings could be downgraded if Moody's believes that: i) Affinion's liquidity profile will deteriorate further than initially expected, including litigation settlements that would require significant monetary compensation; ii) Affinion's operating performance materially deviates from Moody's expectations; iii) Affinion is unable to refinance its capital structure by end of 2016, or iv) Affinion defaults. A ratings upgrade is unlikely in the near term in view of the company's liquidity and operating performance. An upgrade would require the company to achieve substantial earnings growth and sustained positive free cash flow generation, and meaningfully deleveraging ahead of its 2018 debt maturity wall. 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. Affinion is a leading provider of marketing services and loyalty programs to many of the largest financial service companies globally. Affinion provides credit monitoring and identity-theft resolution, accidental death and dismemberment insurance, discount travel services, loyalty programs, and various checking account and credit card enhancement services. Affinion is 70% owned by private equity sponsor Apollo Management V, L.P. and generates revenues of about $1.2 billion annually. AH'PIZZ CORPORATION: Case Summary & 20 Top Unsecured Creditors -------------------------------------------------------------- Debtor: Ah'Pizz Corporation 4 West Main Street Denville, NJ 07834 Case No.: 15-19167 Chapter 11 Petition Date: May 15, 2015 Court: United States Bankruptcy Court District of New Jersey (Newark) Judge: Hon. Novalyn L. Winfield Debtor's Counsel: Jay L. Lubetkin, Esq. RABINOWITZ LUBETKIN & TULLY, L.L.C. 293 Eisenhower Parkway, Suite 100 Livingston, NJ 07039 Tel: 973-597-9100 Fax: 973-597-9119 Email: jlubetkin@rltlawfirm.com Total Assets: $71,033 Total Liabilities: $1.37 million The petition was signed by John Lamorte, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/njb15-19167.pdf ALLIED NEVADA: Wants Court to Set June 24 Claims Bar Date --------------------------------------------------------- Allied Nevada Gold Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to set June 24, 2015, at 4:00 p.m. (prevailing ET) as deadline within which creditors can file proofs of claim against the Debtors. The Debtors want the Court to fix Sept. 8, 2015, at 4:00 p.m. (prevailing ET) as last day for governmental units to file their claims. The original proofs of claim must be delivered in person, by courier service, by hand delivery, or by mail so as to be actually received by Prime Clerk on or before the applicable Bar Date at: Allied Nevada Gold Corp. Claims Processing Center c/o Prime Clerk LLC 830 Third Avenue, 9th Floor New York, NY 10022 A hearing is set for May 19, 2015, at 2:00 p.m. (prevailing ET) to consider the Debtors' extension request. Objections were due May 12, 2015. About Allied Nevada Allied Nevada Gold Corp. ("ANV"), a Delaware corporation, is a publicly traded U.S.-based gold and silver producer engaged in mining, developing and exploring properties in the State of Nevada. ANV's common stock traded on the NYSE and the TSX. ANV was spun off from Vista Gold Corp. in 2006 and began operations in May 2007. Nevada-based mining properties acquired from Vista include the Hycroft Mine, an open-pit heap leach operation located 54 miles west of Winnemucca, Nevada. ANV controls 75 exploration properties throughout Nevada as of Dec. 31, 2014. On March 10, 2015, ANV and 13 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Debtors have requested that their cases be jointly administered under Case No. 15-10503. The cases are assigned to Judge Mary F. Walrath. The Debtors have tapped Blank Rome LLP and Akin Gump Strauss Hauer & Feld LLP as attorneys, FTI Consulting Inc. as financial advisor, Moelis & Company as financial advisor, and Prime Clerk LLC as claims and noticing agent. ANV disclosed $941 million in total assets and $664 million in total debt as of Dec. 31, 2014. Andrew R. Vara, Acting United States Trustee for Region 3, appointed these persons to the Committee of Equity Security Holders in connection with the case of debtor Allied Nevada Gold Corp. ALTEGRITY INC: Plan Confirmation Hearing Set for July 1 ------------------------------------------------------- Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for the District of Delaware on May 15, 2015, approved the disclosure statement explaining Altegrity, Inc., et al.'s Joint Chapter 11 Plan and scheduled the confirmation hearing for July 1, 2015, at 10:00 a.m. (prevailing Eastern time). As reported in the April 1, 2015 edition of the Troubled Company Reporter, the Debtors filed a Joint Chapter 11 Plan and accompanying disclosure statement that will delever the Company by approximately $700 million, or 40% of the Debtors' outstanding debt. The Plan provides for a 2.2% estimated recovery of allowed general unsecured claims, which total approximately $82,510,532. Holders of Secured Third Lien Notes Claims are poised to recover 7.7% of their estimated $66,304,133 total amount of claims. Holders of Secured Second Lien Notes Claims are poised to recover 48.4% of their estimated $519,265,011 total amount of claims. To evidence their support of the Debtors' restructuring plan, holders of approximately 78% of the Debtors' first lien debt and approximately 95% of the Debtors' second and third lien debt have executed the Restructuring Support Agreement. The transactions contemplated by the Restructuring Support Agreement (a) address certain existing defaults under the First Lien Indebtedness, modify change-of-control covenants, and reset financial covenants to levels that are consistent with the Debtors' revised business plan, (b) reduce outstanding debt by 40% and (c) provide the Debtors with a new-money junior lien investment of $90 million to fund these Chapter 11 Cases and post-emergence ongoing business operations. Prior to the Disclosure Statement hearing, the Debtors modified the Plan to address the vast majority of the objections to the Disclosure Statement, by making additions or changes to the Disclosure Statement and, where applicable, the Plan. A blacklined version of the Plan dated May 12, 2015, is available at http://bankrupt.com/misc/ALTEGRITYds0512.pdf A full-text copy of the Disclosure Statement dated May 16, 2015, is available at http://bankrupt.com/misc/ALTEGRITYds0516.pdf Any objection to confirmation of the Plan must be filed on or before June 19. About Altegrity Inc. Altegrity Inc. provides background investigations for the U.S. government; employment background and mortgage screening for commercial customers; technology-driven legal services and software for data management; and investigative, analytic, consulting, due diligence, and security services. Altegrity is principally owned by investment funds affiliated with Providence Equity Partners. Altegrity Inc. and 37 of its affiliates filed Chapter 11 Bankruptcy petitions (Bankr. D. Del. Lease Case No. 15-10226) on Feb. 8, 2015. Jeffrey S. Campbell signed the petitions as president and chief financial officer. The Debtors disclosed total assets of $1.7 billion and total liabilities of $2.1 billion as of June 30, 2014. M. Natasha Labovitz, Esq., Jasmine Ball, Esq., and Craig A. Bruens, Esq., at Debevoise & Plimpton LLP serve as the Debtors' counsel. Joseph M. Barry, Esq., Ryan M. Bartley, Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt & Taylor, LLP, act as the Debtors' Delaware and conflicts counsel. Stephen Goldstein and Lloyd Sprung, at Evercore Group, LLC, are the Debtors' investment bankers. Kevin M. McShea and Carrianne J. M. Basler, at Alixpartners LLP serve as the Debtors' restructuring advisors. Prime Clerk LLC is the Debtors' claims and noticing agent. PricewaterhouseCoopers LLP serves as the Debtors' independent auditors. The Bankruptcy Court has scheduled for May 5, 2015, the hearing to consider the approval of the disclosure statement explaining the Debtor's plan, which proposes to liquidate the US Investigations Services. Land Line relates that USIS lost key federal background check contracts. The U.S. Trustee for Region 3 appointed six creditors to serve on the official committee of unsecured creditors. AMARILLO BIOSCIENCES: Summarizes New Operating Plan After Ch11 Exit ------------------------------------------------------------------- Amarillo Biosciences, Inc. on May 18 summarized its new operating plan following the Company's emergence from Chapter 11 Bankruptcy. ABI disclosed that it had arisen from bankruptcy January 23, 2015, when the Final Decree closing the case had been signed by Judge Robert L. Jones of the United States Bankruptcy Court for the Northern District of Texas in Case No. 13-20393-RJL-11. The reorganization strategy resulted in the elimination of $4.787 million of debt and still left ABI with a number of important assets. ABI begins its new life with a valuable intellectual property portfolio including issued patents, a pending patent, and a trademark. Additionally, ABI has a library of almost thirty years of scientific and clinical data on the human and animal applications of low dose oral interferon. The technology and know-how available in the collection of intellectual property as well as the proprietary research history will enable ABI to license out or leverage its core technology and form partnerships with other pharmaceutical companies to develop new discoveries and commercialize the resulting products. An integral part of the ABI Operating Plan is to develop multiple revenue streams through the implementation of in-licensing programs of novel medical and health care products and processes. These in-licensing programs will be the catalyst which allows ABI to enter markets in Taiwan, China, and other Asian countries for the distribution of these new medical and health care products. The overall operating strategy is for ABI to create a world-wide network of strategic alliances capitalizing on advanced and emerging technologies in order to engineer a diversified enterprise having a major impact on every aspect of the healthcare and life sciences industries; and assemble an exhaustive pipeline of technologically-advanced, cutting edge products and services with which to compete in the American and Asian markets. ABI is committed to expanding its business operations from the currently narrow focus in biotechnology to a wide variety of development opportunities in related industry sectors. In addition to in-licensing discussed above, the Company will search for joint venture opportunities with both private and public companies. The goal here is to acquire the desired business through acquisition of the target company with the ownership percentage being anywhere from 20% to 100%. Joint-venturing with other companies will expedite growth and facilitate cash flow. To continue a healthy but steady growth, ABI may periodically raise funds through public offerings or private placements. This funding will enable ABI to acquire other foreign businesses and bring those companies into the U.S. public markets. ABI will utilize revenues gained through its ownership interests in these other companies to create consolidation synergies which will create even more growth. When ABI became a public company in 1996, it was listed on the NASDAQ (exchange). Due to the financial issues that plagued the Company, ABI dropped down to the Over-The-Counter - Bulletin Board exchange (OTC-BB). The reorganization, recapitalization, and future growth will empower ABI to fulfill a long-time vision -- to move from the OTC-BB back up to a listing on the NASDAQ. The long-term mission is for ABI to become an integrated healthcare enterprise of global distinction committed to amassing a cadre of innovative and state-of-the-art technologies, products, and services in the biotechnology, pharmaceutical, medical, and life sciences fields. About Amarillo Biosciences Amarillo Biosciences, Inc., a developer of biologics for the treatment of human and animal diseases, filed for Chapter 11 protection (Bankr. N.D. Tex. Case No. 13-20393) on Oct. 31, 2013. Amarillo disclosed assets of $132,000 against $4.8 million in liabilities as of the bankruptcy filing. It is represented by Roger S. Cox, Esq., at Underwood Law Firm. AMERICAN ENERGY: Moody's Cuts CFR to 'Caa2', Outlook Negative ------------------------------------------------------------- Moody's downgraded American Energy - Woodford, LLC's (AEW) Corporate Family Rating to Caa2 from B3 and the Probability of Default Rating to Caa2-PD from B3-PD. Moody's downgraded the senior unsecured note rating to Caa3 from Caa1. Moody's also lowered the Speculative Grade Liquidity Rating to SGL-4 from SGL-3. The ratings outlook was changed to negative from stable. Ratings downgraded: -- Corporate Family Rating, Downgraded to Caa2 from B3 -- Probability of Default Rating, Downgraded to Caa2-PD from B3-PD -- Speculative Grade Liquidity Rating, Lowered to SGL-4 from SGL-3 -- $350 million 9.00% senior unsecured notes due 2022, to Caa3 (LGD4) from Caa1 (LGD4) Outlook Action: -- Outlook, Changed to Negative from Stable The downgrade reflects growing risks from AEW's high financial leverage, limited production volumes and reduced cash flows owing to low commodity prices. Moody's expects debt to average daily production to exceed $55,000 per barrel of oil equivalent (boe) and debt to proved developed (PD) reserves to exceed $25 per boe over the next 12 months. Cash flow coverage of debt, as measured by retained cash flow to debt, will fall below 5% for 2015. The reduced cash flow will limit AEW's ability to grow its production as initially expected and improve its leverage metrics, as capital expenditures are cut and existing production declines. AEW's SGL-4 Speculative Grade Liquidity Rating reflects its weak liquidity profile over the next 12 months. At May 14, 2015, AEW had roughly $13 million in cash and $58 million in availability under its $135 million borrowing base revolving credit facility. The credit facility matures in February 2018. Financial covenants under the facility as amended, effective as of December 31, 2014, are EBITDAX / Cash Interest of no less than 1.5x, a current ratio of at least 1.0x and Senior Net Debt / EBITDAX of no more than 2.5x, and if borrowing base utilization is greater than 80%, Net Debt / EBITDAX of no more than 4.5x. The company's ability to comply with these covenants will be challenged later in 2015 as AEW continues to outspend cash flow, albeit at a reduced pace going forward, and as EBITDA fully reflects a lower crude oil price. Consequently Moody’s expect AEW's liquidity to further diminish over the next 12 months. AEW notes are rated Caa3, which is one notch below the Caa2 CFR under Moody's Loss Given Default Methodology. This notching reflects the size of the potential priority claim given to the senior secured credit facility over the senior unsecured notes. The negative outlook reflects the company's highly leveraged balance sheet, which impedes its ability to raise additional liquidity with which to sustain production. The outlook could be returned to stable presuming AEW successfully rebuilds its available liquidity. Ratings could be downgraded if the company's liquidity further deteriorates or production volumes decline significantly. Ratings could be upgraded if retained cash flow to debt is sustained above 10% and the company sufficiently improves the sustainability of its capital structure, combined with adequate liquidity. The principal methodology used in these ratings was Global Independent Exploration and Production Industry published in December 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. American Energy - Woodford, LLC is an independent exploration & production company headquartered in Oklahoma City, Oklahoma. AMERICAN LIBERTY: Section 341 Meeting Scheduled for June 11 ----------------------------------------------------------- A meeting of creditors in the bankruptcy case of American Liberty Oil Company, LP will be held on June 11, 2015, at 1:30 p.m. at Dallas, Room 976. Creditors have until Sept. 9, 2015, to submit 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. American Liberty Oil Company, LP filed a Chapter 11 bankruptcy petition (Bankr. N.D. Tex. Case No. 15-32019) on May 6, 2015. The petition was signed by Wreno S. Wynne, Jr., as managing partner of ALOC LLC. The Debtor estimated assets of $10 million to $50 million and debts of $1 million to $10 million in its petition. Quilling, Selander, Lownds, Winslett & Moser, P.C., serves as the Debtor's counsel. The case is assigned to Hon. Stacey G. Jernigan. AMERICAN ROCK: Moody's Raises CFR to 'B2', Outlook Stable --------------------------------------------------------- Moody's Investors Service upgraded American Rock Salt Company LLC's corporate family rating to B2 from B3, and the company's probability of default rating to B2-PD from B3-PD. Concurrently, Moody's has upgraded the company's senior secured first-lien term loan to B2 from B3. The senior secured first-lien term loan is comprised of an outstanding $347.4 million due 2021, and a proposed $80 million incremental add-on to the outstanding first-lien term loan. The proceeds of the proposed incremental first-lien tern loan will be used, in conjunction with an additional $40 million of cash, to repay the company's existing $120 million senior secured, second-lien term loan due 2022. Once repaid, Moody's will withdraw the rating assigned to the second-lien term loan. The outlook on all ratings remain stable. The rating upgrade follows American Rock Salt's recently announced, transaction that aims to reduce leverage and interest expense by prepaying the company's outstanding second-lien term loan with an incremental first-lien term loan add-on and excess cash. "By using excess cash to reduce leverage and lower interest expense, instead of pursuing an outsized equity-holder distribution, American Rock Salt is signaling the adoption of a financial policy and leverage target more appropriate for the company's small scale and weather-dependent business model," says Anthony Hill, a Moody's Vice-President -- Senior Credit Officer and lead analyst for American Rock Salt. American Rock Salt ratings affected as a result the action: Upgrades: -- Corporate Family Rating, Upgraded to B2 from B3 -- Probability of Default Rating, Upgraded to B2-PD from B3-PD -- Senior Secured 1st Lien Term Loan due 2021, Upgraded to B2 from B3 Outlook Actions: -- Outlook, Remains Stable American Rock Salt's B2 CFR is constrained primarily by the company's high debt levels relative to its scale and weather-dependent business model. For fiscal year-end September 2014, the company's leverage was 6.6x debt/EBITDA, on a Moody's-adjusted basis. Pro forma for the proposed transaction and the strong 2014/2015 snow fall season, Moody's expects American Rock Salt's leverage to be significantly lower -- around 3.8x debt/EBITDA at fiscal year-end September 2015. With a single-site profile and annual revenues of less than $500 million, American Rock Salt's scale is small relative to other rated companies in the chemical industry. Previously, Moody's had noted American Rock Salt's equity-accommodative financial policy that saw a prioritization of equity-holder distributions ahead of leverage reduction. However, the company has (1) recently set an average leverage target of around 6.0x debt/EBITDA (on a normalized basis, adjusting for outlier snow fall years), and is (2) executing a transaction that will show a modest reduction in debt. By fiscal year-end September 2015, American Rock Salt will have nearly $50 million in excess cash available for distribution to its equity-holders; however, the proposed transaction will see the equity-holders forgo around half of this excess cash, with the balance going towards pre-paying the company's more expensive second-lien debt. Demand volatility for rock salt can be high as it depends on snow fall levels throughout the year. As a result, the company's profitability and cash generation can be equally volatile. American Rock Salt's improved financial policy and capital structure will help offset this volatility and support the B2 rating. The rating is also supported by high barriers to entry in rock salt mining, and cost advantages due to the company's relatively new mine near Rochester, N.Y. Additionally, there is a lack of economical alternatives for rock salt -- which creates a relatively benign competitive market that yields solid profit margins in the company's primary markets of upstate New York and central/western Pennsylvania. The company also benefits from the potential to generate substantial free cash flow during periods of strong snowfall and an enterprise value that creates a strong incentive for sponsor support during periods of exceptionally weak snowfall (e.g., two or more consecutive warm winters). The stable outlook reflects Moody's expectation that American Rock Salt's credit measures and liquidity will remain appropriate for the rating category over a multi-year snow fall cycle. Additionally, Moody's expects American Rock Salt to continue to reduce debt somewhat with excess cash balances. Moody's sees limited upside to American Rock Salt's ratings due to its scale and weather-dependent business model. However, there could be negative pressure on the ratings if the company were not able to maintain its sales volumes and EBITDA to levels that could support its debt service requirements, or if adequate liquidity is not maintained. The ratings also assume that the company will adhere to its newly established financial policy and leverage targets. Certainly any significant debt-financed transactions or equity-holder payments that result in a substantial increase in leverage or decrease in liquidity would likely have a negative impact on the company's ratings. American Rock Salt Company LLC produces highway deicing rock salt. The company operates a single mine in Upstate New York and sells primarily to state and local government agencies in the northeastern United States. The firm is a wholly-owned subsidiary of American Rock Salt Holdings LLC, which is closely-held by private investors including some members of management. Headquartered in Retsof, N.Y., American Rock Salt generated approximately $291 million in revenue for the twelve months ended March 31, 2015. 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. AMERICAN ROCK: S&P Raises Corp. Credit Rating to B, Outlook Stable ------------------------------------------------------------------ Standard & Poor's Ratings Services said it raised its corporate credit rating on Restof, N.Y.-based American Rock Salt Co. LLC to 'B' from 'B-'. The outlook is stable. S&P also affirmed its 'B' issue-level rating on the company's first-lien debt, which includes the $80 million add-on, and revised the recovery rating on the debt to '3' from '2', indicating S&P's expectation for meaningful (50% to 70%; upper half of the range) recovery in the event of a payment default. The upgrade is driven by a shift in S&P's view of American Rock Salt's financial policy given the company's focus on lowering leverage levels. Accordingly, S&P do not expect a large dividend payout over the next year. The debt repayment reduces American Rock Salt's total debt and cash interest payments and strengthens the company's credit measures. S&P's ratings and outlook take into account that extreme weather fluctuations can have a significant effect on short-term operating performance, as well as the company's financial policies, particularly as it relates to both tax distributions and dividends to shareholders. "The stable rating outlook reflects our view that credit measures will remain within the current range over the next 12 months. We assume that management will maintain tax distributions at levels consistent with our expectations, with no material debt-financed dividends, and weather patterns in line with historical averages," said Standard & Poor's credit analyst Ryan Gilmore. S&P would consider a negative rating action if American Rock Salt's liquidity deteriorated to a level S&P viewed to be "less than adequate." This could result from higher-than-anticipated cash distributions or poor operating results, particularly if they lead to revolving credit facility borrowing limitations due to covenant restrictions. A positive rating action is unlikely over the next year based on S&P's expectation that American Rock Salt will remain highly leveraged for the next several years. However, S&P could raise the rating if it achieved a sustainable improvement in credit measures, with leverage of less than 5x and FFO to debt more than 12%. ARKANOVA ENERGY: Posts $1 Million Net Loss in Second Quarter ------------------------------------------------------------ Arkanova Energy Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.05 million on $92,200 of total revenue for the three months ended March 31, 2015, compared with a net loss of $791,000 on $192,300 of total revenue for the same period in 2014. For the six months ended March 31, 2015, the Company reported a net loss of $1.78 million on $250,000 of total revenue compared to a net loss of $1.43 million on $426,000 of total revenue for the same period last year. As of March 31, 2015, the Company had $5.22 million in total assets, $18.6 million in total liabilities and a $13.4 million total stockholders' deficit. The Company had cash and cash equivalents of $4.14 million compared to cash and cash equivalents of $647,000 as at its financial year-end of Sept. 30, 2014. This increase is largely due to the additional loan proceeds of $2,475,000 and project advance of $2.03 million received during the six months ended March 31, 2015. "Arkanova is primarily engaged in the acquisition, exploration and development of oil and gas resource properties. Arkanova has incurred losses of $32,851,031 since inception at March 31, 2015. Management plans to raise additional capital through equity and/or debt financings. These factors raise substantial doubt regarding Arkanova's ability to continue as a going concern," the Company said in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/GPacOQ About Arkanova Austin, Tex.-based Arkanova Energy Corporation is a junior producing oil and gas company and is also engaged in the acquisition, exploration and development of prospective oil and gas properties. It holds mineral leases in Delores County, Lone Mesa State Park, Colorado and leasehold interests located in Pondera and Glacier Counties, Montana. The Company reported a net loss of $3 million on $844,000 of total revenue for the year ended Sept. 30, 2014, compared with a net loss of $2.73 million on $849,900 of total revenue for the year ended Sept. 30, 2013. ASHLEY'S TRANSPORTATION: Case Summary & 20 Top Unsecured Creditors ------------------------------------------------------------------ Debtor: Ashley's Transportation, LLC 605 Bradford Hills Court Nashville, TN 37211 Case No.: 15-03366 Chapter 11 Petition Date: May 15, 2015 Court: United States Bankruptcy Court Middle District of Tennessee (Nashville) Judge: Hon. Keith M Lundin Debtor's Counsel: Steven L. Lefkovitz, Esq. LAW OFFICES LEFKOVITZ & LEFKOVITZ 618 Church St Ste 410 Nashville, TN 37219 Tel: 615 256-8300 Fax: 615 255-4516 Email: slefkovitz@lefkovitz.com Total Assets: $75,000 Total Liabilities: $1.23 million The petition was signed by Chad Brock, member. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/tnmb15-03366.pdf AUBURN TRACE: Delray Beach to Become Lead Creditor -------------------------------------------------- Randy Schultz at Bocamag.com reports that the Federal Deposit Insurance Corp. has approved Delray Beach's purchase of IberiaBank's first mortgage on the 152-unit and the roughly 18 acres in the City's southwest neighborhood. According to Bocamag.com, the FDIC had to sign off on the price because Iberia gave Delray Beach -- the second mortgage-holder -- a roughly $500,000 discount from the $4.7-million-plus price of the note. The report says that Delray Beach will be the lead creditor with a claim on Auburn Trace Ltd., the entity that owns and manages the complex. The closing must happen by May 29, Bocamag.com relates, citing City Attorney Noel Pfeffer. Bocamag.com recalls that the city loaned the developer $3.84 million 26 years ago. The report states that with the interest, the City's stake is now between $4.2 million and $4.3 million. About Auburn Trace Auburn Trace filed a Chapter 11 bankruptcy petition (Bank. S.D. Fla. Case No. 15-10317) on Jan. 7, 2015. The petition was signed by Brian J. Hinners as president. The Debtor disclosed $9.61 million in assets and $9.54 million in liabilities as of the Chapter 11 filing. The case is assigned to Judge Paul G. Hyman, Jr. Bradley S Shraiberg, Esq., at Shraiberg, Ferrara & Landau, P.A., serves as the Debtor's counsel. The U.S. Trustee notified the U.S. Bankruptcy Court that until further notice, it will not appoint a committee of creditors. AUBURN TRACE: Proposes $9.5M Sale to The Related Group ------------------------------------------------------ Randy Schultz, writing for Bocamag.com, reports that Auburn Trace proposes to sell the project to The Related Group. Citing documents filed with the Palm Beach County Housing Finance Authority, Bocamag.com relates that Related, under an entity called PRH Investments, would buy Auburn Trace for $9.5 million. Bocamag.com states that to make the sale happen, the Authority has to approve up to $9 million in financing by June 30. The report adds that there's only a certain amount available in this area of Florida for authorization by the end of the state fiscal year. The financing is a 4% federal tax credit that would provide between 20% and 25% of the equity, Bocamag.com says, citing the Authority's executive director, David Brandt. The report states that the housing finance authority board approved an "inducement resolution", which is a placeholder action to make the financing available if the parties can work out a deal. About Auburn Trace Auburn Trace filed a Chapter 11 bankruptcy petition (Bank. S.D. Fla. Case No. 15-10317) on Jan. 7, 2015. The petition was signed by Brian J. Hinners as president. The Debtor disclosed $9.61 million in assets and $9.54 million in liabilities as of the Chapter 11 filing. The case is assigned to Judge Paul G. Hyman, Jr. Bradley S Shraiberg, Esq., at Shraiberg, Ferrara & Landau, P.A., serves as the Debtor's counsel. The U.S. Trustee notified the U.S. Bankruptcy Court that until further notice, it will not appoint a committee of creditors. BALMORAL RACING: Inks Stipulation with Casino Operators ------------------------------------------------------- Balmoral Racing Club, Inc., and Maywood Park Trotting Association, Inc., asked the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division, to approve a stipulation they entered into with Empress Casino Joliet Corporation, Des Plaines Development Limited Partnership, d/b/a Harrah's Casino Cruises Joliet, Hollywood Casino-Aurora, Inc., and Elgin Riverboat Resort-Riverboat Casino, d/b/a Grand Victoria Casino (the "Judgment Creditors"), and John A. Johnston. The Judgment Creditors hold the largest unsecured claim in each of Chapter 11 Cases by virtue of a judgment entered in their favor against the Debtors in the case styled Empress Casino Joliet Corporation et al. v. John Johnston et al., pending in the United States District Court for the Northern District of Illinois. The Debtors intend on appealing the Judgment to the Seventh Circuit Court of Appeals. According to Empress Casino, et al.'s counsel, Michael M. Eidelman, Esq., at Vedder Price P.C., in Chicago, Illinois, the parties expressed their desire to focus their immediate attention toward resolution of the Chapter 11 Cases, the Judgment and the Appeal. The Stipulation provides, among other things, that each of the Debtors will use their best efforts to identify a purchaser of the Judgment or a purchaser of the Racetracks' assets and businesses. As previously reported by The Troubled Company Reporter, the casino operators won an $82 million judgment against the tracks' owners over an alleged bribery scheme involving disgraced ex-Illinois Gov. Rod Blagojevich. As part of a negotiated settlement between the gambling-industry competitors, racetrack officials face a June 29 deadline to hire an investment banker to help look for buyers. The Judgment Creditors are represented by: Michael M. Eidelman Stephanie Hor Chen VEDDER PRICE P.C. 222 North LaSalle Street, Suite 2600 Chicago, IL 60601 Tel: (312) 609 7500 Fax: (312) 609-5005 Email: meidelman@vedderprice.com schen@vedderprice.com -- and -- Robert M. Andalman, Esq. Andrew R. Greene, Esq. A&G LAW LLC 542 South Dearborn, 10th Floor Chicago, IL 60605 Tel: (312) 341-3900 Fax: (312) 341-0700 Email: randalman@aandglaw.com agreene@aandglaw.com Mr. Johnston is represented by: Scott R. Clar, Esq. CRANE HEYMAN SIMON WELCH & CLAR 135 S. LaSalle Street, Suite 3705 Chicago, IL 60603 Tel: (312) 641 6777 Fax: (312) 641 7114 Email: sclar@craneheyman.com The Debtors are represented by: Chad H. Gettleman, Esq. Nathan Q. Rugg, Esq. Erich S. Buck, Esq. Alexander F. Brougham, Esq. ADELMAN & GETTLEMAN, LTD. 53 West Jackson Blvd., Suite 1050 Chicago, IL 60604 Tel: (312) 435-1050 Fax: (312) 435-1059 Email: chg@ag-ltd.com nrugg@ag-ltd.com ebuck@ag-ltd.com About Balmoral Racing Balmoral Racing Club, Inc., and Maywood Park Trotting Association, Inc. operate pari-mutuel wagering at the Balmoral Park and Maywood Park racetracks in Illinois under a license granted by the State of Illinois pursuant to the Illinois Horse Racing Act of 1975. Balmoral Racing Club (Bankr. N.D. Ill. Case No. 14-45711) and Maywood Park Trotting Association (Bankr. N.D. Ill. Case No. 14-45718) filed for Chapter 11 bankruptcy protection on Dec. 24, 2014, to continue operations into 2015 and protect themselves against property seizure. Both cases were consolidated on Dec. 31, 2014. Alexander F Brougham, Esq., Chad H. Gettleman, Esq., and Nathan Q. Rugg, Esq., at Adelman & Gettleman, Ltd., serve as the Debtors' bankruptcy counsel. Neither a trustee nor a committee of unsecured creditors has been appointed in the Chapter 11 Cases. BATTLE CREEK: Files for Ch. 11 with $9.3 Million in Debt -------------------------------------------------------- Battle Creek Conservation Ventures, LLC, sought bankruptcy protection, disclosing $9.30 million in debt against assets of $11.0 million: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $11,000,000 B. Personal Property $6,804 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $8,608,262 E. Creditors Holding Unsecured Priority Claims $712,590 F. Creditors Holding Unsecured Non-priority Claims $0 ----------- ----------- TOTAL $11,006,804 $9,320,852 The Debtor owns the property at 19315 Jellys Ferry Road, Red Bluff, California, with a current value of $11 million, and secures an $8.61 million debt to Charles A. Orwick III, as trustee. Yi Sun Kim of Greenberg & Bass serves as counsel to the Debtor. The Debtor has two affiliates with pending bankruptcy cases: * Spring & Ash Creeks WMU, LLC; Case No. 1:14-bk-15496-MT. Filed 12/11/2014. * Circle C Ranchlands W.M.U. LLC, Case No.: 1:15-bk-10873-M; Filed 3/13/201515. Battle Creek Conservation Ventures, LLC, commenced a Chapter 11 bankruptcy case (Bankr. C.D. Cal. Case No. 15-11683) on May 13, 2015. Judge Maureen Tighe presides over the case. A copy of the schedules filed together with the petition is available for free at: http://bankrupt.com/misc/cacb15-11683_SAL.pdf BERRY PLASTICS: Extends Maturity BofA Credit Facility to May 2020 ----------------------------------------------------------------- Berry Plastics Group, Inc., its wholly owned subsidiary, Berry Plastics Corporation and certain of its subsidiaries entered into an Amendment No. 4 to the Amended and Restated Revolving Credit Agreement, which amended the existing Amended and Restated Revolving Credit Amendment, dated as of April 3, 2007, with Bank of America, N.A. and certain other financial institutions, relating to BPC's existing $650 million secured, revolving credit facility. According to a document filed with the Securities and Exchange Commission, the purpose of the amendment was to, among other things, extend the maturity date of the Revolving Facility to May 14, 2020 (subject to certain conditions) and to reduce interest margins and certain commitment fees. Under the terms of the Amended Revolving Credit Agreement, the applicable interest rate margin on borrowings bearing interest at a prime-rate based rate is 0.50% until Aug. 14, 2015, and ranges from 0.25% to 0.75% on and after that date. The applicable interest rate margin on borrowings bearing interest at a reserve-adjusted LIBOR-based rate is 1.50% until Aug. 14, 2015, and ranges from 1.25% to 1.75% on or after that date. Adjustments in the applicable margins on and after Aug. 14, 2015, are determined based on the quarterly average daily borrowing availability under the Revolving Facility. Commitment fees on the Revolving Facility from and after May 14, 2015, range from 0.25% to 0.325%, depending upon the quarterly average daily unused availability under the Revolving Facility. About Berry Plastics Berry Plastics Corporation manufactures and markets plastic packaging products, plastic film products, specialty adhesives and coated products. At Jan. 2, 2010, the Company had more than 80 production and manufacturing facilities, primarily located in the United States. Berry is a wholly-owned subsidiary of Berry Plastics Group, Inc. Berry Group is primarily owned by affiliates of Apollo Management, L.P., and Graham Partners. Berry, through its wholly owned subsidiaries operates five reporting segments: Rigid Open Top, Rigid Closed Top, Flexible Films, Tapes/Coatings and Specialty Films. The Company's customers are located principally throughout the United States, without significant concentration in any one region or with any one customer. On Dec. 3, 2009, Berry Plastics obtained control of 100 percent of the capital stock of Pliant upon Pliant's emergence from reorganization pursuant to a proceeding under Chapter 11 for a purchase price of $602.7 million. Pliant is a manufacturer of films and flexible packaging for food, personal care, medical, agricultural and industrial applications. As of March 28, 2015, the Company had $5.21 billion in total assets, $5.28 billion in total liabilities, and a $86 million total stockholders' deficit. * * * As reported by the TCR on Jan. 30, 2015, Moody's Investors Service upgraded the corporate family rating of Berry Plastics to 'B1' from 'B2'. The upgrade of the corporate family rating reflects the pro-forma benefits from the recent restructuring and acquisitions. BG MEDICINE: Incurs $1.34 Million Net Loss in First Quarter ----------------------------------------------------------- BG Medicine, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.34 million on $437,000 of product revenues for the three months ended March 31, 2015, compared to a net loss of $2.17 million on $739,000 of product revenues for the same period last year. As of March 31, 2015, the Company had $2.59 million in total assets, $3.15 million in total liabilities and a $566,000 total stockholders' deficit. "We need immediate additional funding to continue our operations and support our capital expenditures, which may not be available to us. Without modifications to our existing payment obligations or receipt of additional funding, our existing cash and other sources of liquidity may only be sufficient to fund our limited operations through July 2015. If additional capital is not available, we may have to further curtail our operations, or take other actions that could adversely impact our shareholders," the Company said in the report. As of March 31, 2015, the Company had $1.6 million of cash. As of April 30, 2015, the Company had cash totaling $0.7 million and an outstanding balance of $1.5 million under its secured term loan facility. A full-text copy of the Form 10-Q is available for free at: http://is.gd/2k4MIZ About BG Medicine Waltham, Mass.-based BG Medicine is a diagnostics company focused on the development and commercialization of novel cardiovascular diagnostic tests to address significant unmet medical needs, improve patient outcomes and contain healthcare costs. The Company is currently commercializing two diagnostic tests, the first of which is the BGM Galectin-3 test, a novel assay for measuring galectin-3 levels in blood plasma or serum for use as an aid in assessing the prognosis of patients diagnosed with heart failure. The Company's second diagnostic test is the CardioSCORE test, which is designed to identify individuals at high risk for near-term, significant cardiovascular events, such as heart attack and stroke. BG Medicine reported a net loss of $8.06 million on $2.78 million of total revenues for the year ended Dec. 31, 2014, compared to a net loss of $15.8 million on $4.07 million of total revenues for the year ended Dec. 31, 2013. The Company previously reported a net loss of $23.8 million in 2012. Deloitte & Touche LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's recurring losses from operations, recurring cash used in operating activities and accumulated deficit raise substantial doubt about its ability to continue as a going concern. BG MEDICINE: Posts $1.34 Million Net Loss in First Quarter ---------------------------------------------------------- BG Medicine, Inc. reported a net loss of $1.34 million on $437,000 of product revenues for the three months ended March 31, 2015, compared to a net loss of $2.17 million on $739,000 of product revenues for the same period in 2014. As of March 31, 2015, the Company had $2.59 million in total assets, $3.15 million in total liabilities and a $566,000 total stockholders' deficit. "We continue to prepare for the U.S. market introduction of automated galectin-3 testing," said Paul R. Sohmer, M.D., president and chief executive officer of BG Medicine. "To this end, we continue to manage our operating expenses and reduce our operating cash burn, we continue to build the case for galectin-3, we have updated our agreement with Abbott Laboratories and we have closed on the first tranche of a financing to provide resources to support our role in the imminent U.S. market introduction of automated galectin-3 testing." A full-text copy of the press release is available for free at: http://is.gd/TNdxqp About BG Medicine Waltham, Mass.-based BG Medicine is a diagnostics company focused on the development and commercialization of novel cardiovascular diagnostic tests to address significant unmet medical needs, improve patient outcomes and contain healthcare costs. The Company is currently commercializing two diagnostic tests, the first of which is the BGM Galectin-3 test, a novel assay for measuring galectin-3 levels in blood plasma or serum for use as an aid in assessing the prognosis of patients diagnosed with heart failure. The Company's second diagnostic test is the CardioSCORE test, which is designed to identify individuals at high risk for near-term, significant cardiovascular events, such as heart attack and stroke. BG Medicine reported a net loss of $8.06 million on $2.78 million of total revenues for the year ended Dec. 31, 2014, compared to a net loss of $15.8 million on $4.07 million of total revenues for the year ended Dec. 31, 2013. The Company previously reported a net loss of $23.8 million in 2012. Deloitte & Touche LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's recurring losses from operations, recurring cash used in operating activities and accumulated deficit raise substantial doubt about its ability to continue as a going concern. BION ENVIRONMENTAL: Posts $1.68 Million Net Loss in 3rd Quarter --------------------------------------------------------------- Bion Environmental Technologies, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.68 million on $3,700 of revenue for the three months ended March 31, 2015, compared to a net loss of $773,000 on $4,450 of revenue for the same period last year. For the nine months ended March 31, 2015, the Company reported a net loss of $3.05 million on $3,660 of revenue compared to a net loss of $3.01 million on $4,450 of revenue for the same period during the prior year. As of March 31, 2015, the Company had $4.4 million in total assets, $12.7 million in total liabilities, $24,900 in series B redeemable convertible preferred stock and a $8.32 million total deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/inyM7r About Bion Environmental Bion Environmental Technologies Inc.'s patented and proprietary technology provides a comprehensive environmental solution to a significant source of pollution in US agriculture, large scale livestock facilities known as Confined Animal Feeding Operations. Bion's technology produces substantial reductions of nutrient releases (primarily nitrogen and phosphorus) to both water and air (including ammonia, which is subsequently re-deposited to the ground) from livestock waste streams based upon the Company's operations and research to date (and third party peer review). Bion reported a net loss of $5.76 million for the year ended June 30, 2014, following a net loss of $8.24 million for the year ended June 30, 2013. GHP Horwath, P.C., in Denver, Colorado, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2014, stating that the Company has not generated significant revenue and has suffered recurring losses from operations. These factors raise substantial doubt about its ability to continue as a going concern. BION ENVIRONMENTAL: Vice Chairman Testifies at Senate Hearing ------------------------------------------------------------- Bion Environmental Technologies, Inc., announced that its Vice Chairman, Ed Schafer, gave testimony in support of Pennsylvania Senate Bill (SB) 724. Mr. Schafer addressed the Pennsylvania Senate Majority Policy Committee at its public hearing on the bill that was held on May 6, 2015. Speakers that testified before the Committee included: Mike McCloskey Vice Chairman, National Milk Producers Federation Phil Durgin Executive Director, Pennsylvania Legislative Budget and Finance Committee Ed Schafer Chairman, Coalition for an Affordable Bay Solution Ron Kreider President, Kreider Farms Elliot Keller General Manager, JBS-Souderton Mr. Schafer, a former U.S. Secretary of Agriculture and Governor of North Dakota, testified as Chairman of the Coalition for an Affordable Bay Solution in support of SB 724. He emphasized the need for action now, since the Commonwealth has already missed its mandated Chesapeake Bay pollution reduction targets, and the potential economic impacts from EPA sanctions for continued failure to comply could be devastating for Pennsylvania. Mr. McCloskey, who is also the co-owner/manager of Fair Oaks Dairy Farm, a 15,000-head dairy in Fair Oaks, Indiana, made the case for national policy change, stating in his testimony, "This bill is extremely important to us, as a dairy industry. We have supported it as an entire U.S. dairy industry from the beginning...I assure you that your leadership will be followed by many, many states quickly, after you pass this bill. This is really the solution for farmers around the country to be innovative and become part of a solution we are not part of [now]. Mr. McCloskey added, "We represent, through the Council, 80 percent of all the milk in the nation, together with all the processors in the nation...and support [SB 724]." Complete testimony from the hearing can be viewed on the Senate Majority Policy Committee Website at http://policy.pasenategop.com/2015/05/01/wastewater-storm-water-issues/. Several other events have occurred recently that bear on these same and related issues: -- In April 2015, EPA issued its Community Based Public-Private Partnerships (CBP3's) and Alternative Market-Based Tools for Integrated Green Solutions. The document presents a model for municipalities in the Chesapeake Bay to "optimize their limited resources" by engaging the private sector to provide alternative solutions to traditional clean water compliance strategies. -- A settlement has been announced (but not yet published) in the precedent-setting Cow Palace Dairy lawsuit in the U.S. District Court in Washington. In January 2015, a federal court judge ruled for the first time that manure from livestock facilities can be regulated as solid waste under the federal Resource Conservation and Recovery Act, which governs the disposal of solid and hazardous waste. The judicial ruling has the potential for wide-ranging impacts to the livestock industry and the way it handles manure. The final settlement and its ramifications for the industry have not yet been made public. -- According to a May 2015 white paper by Veolia (EPA: VIE) and the International Food Policy Research Institute (IFPRI), global water quality is expected to deteriorate in the coming years; and that even under a best-case scenario, "water quality is still projected to deteriorate dramatically," According to the paper, "Globally, the most prevalent water quality problem is eutrophication, a result of high-nutrient loads (mainly phosphorus and nitrogen)..." The paper's recommendations included "continued development of new models of water management such as watershed scale approaches, alternative utility governance that includes improvement of upstream practices, as well as nutrient trading to encourage upstream best practices and reduce non-point source runoff of contaminants." Craig Scott, Bion's Director of Communications, stated, "The continued advancement of competitive bidding programs, consistent with the blueprint as outlined by SB 724 , will spur efforts by other states to inject private sector competition into their clean water compliance programs, to achieve large-scale low-cost nutrient reductions. Federal Office of Management & Budget has endorsed shifting federal funds to the procurement of results, rather than the continued funding of projects that promise solutions; and, EPA has approved the use of Clean Water Funds, which are provided to the states, for the purchase of credits. A combination of shovel-ready technologies and support by the livestock industry at both the national and local levels, coupled with taxpayer fatigue from existing costs and failures to meet compliance targets, are now driving these initiatives." Bion's proven and patented technology platform provides verifiable comprehensive environmental treatment of livestock waste and recovers renewable energy and valuable nutrients from the waste stream. For more information, visit www.biontech.com. About Bion Environmental Bion Environmental Technologies Inc.'s patented and proprietary technology provides a comprehensive environmental solution to a significant source of pollution in US agriculture, large scale livestock facilities known as Confined Animal Feeding Operations. Bion's technology produces substantial reductions of nutrient releases (primarily nitrogen and phosphorus) to both water and air (including ammonia, which is subsequently re-deposited to the ground) from livestock waste streams based upon the Company's operations and research to date (and third party peer review). Bion reported a net loss of $5.76 million for the year ended June 30, 2014, following a net loss of $8.24 million for the year ended June 30, 2013. The Company's balance sheet at Dec. 31, 2014, showed $4.07 million in total assets, $12.8 million in total liabilities, $24,400 in series B Redeemable Convertible Preferred stock and total stockholders' deficit of $8.77 million. GHP Horwath, P.C., in Denver, Colorado, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2014, stating that the Company has not generated significant revenue and has suffered recurring losses from operations. These factors raise substantial doubt about its ability to continue as a going concern. BPZ RESOURCES: Files Schedules of Assets and Liabilities -------------------------------------------------------- BPZ Resources Inc. filed with the U.S. Bankruptcy Court for the Southern District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $242,379,786 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $0 E. Creditors Holding Unsecured Priority Claims $28,731 F. Creditors Holding Unsecured Non-priority Claims $238,543,126 ------------ ------------ TOTAL $242,379,786 $238,571,858 A copy of the Debtor's Schedules is available for free at http://is.gd/Ld2Zo4 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. The U.S. trustee overseeing the Chapter 11 case of BPZ Resources Inc. appointed five creditors of the company to serve on the official committee of unsecured creditors.. BROADWAY FINANCIAL: Amends 18.9M Shares Resale Prospectus --------------------------------------------------------- Broadway Financial Corporation has amended its Form S-1 registration statement relating to the resale or other disposition by Broadway Federal Bank, f.s.b. Employee Stock Ownership Plan, CJA Private Equity Financial Restructuring Master Fund I L.P., Economic Resources Corporation, et al., of up to 18,975,549 shares of common stock, which would constitute 65.26% of the Company's outstanding common stock if all those shares are sold. The Company amended the Registration Statement to delay its effective date. The Company is not offering any shares of common stock for sale pursuant to this prospectus and it will not receive any of the proceeds from sales of the shares. The Company's common stock is currently traded on the NASDAQ Capital Market under the symbol "BYFC." On May 12, 2015, the closing sale price for the Company's common stock, as reported by the NASDAQ Capital Market, was $1.50 per share. A full-text copy of the amended prospectus is available at: http://is.gd/bkB7rn About Broadway Financial Los Angeles, Calif.-based Broadway Financial Corporation was incorporated under Delaware law in 1995 for the purpose of acquiring and holding all of the outstanding capital stock of Broadway Federal Savings and Loan Association as part of the Bank's conversion from a federally chartered mutual savings association to a federally chartered stock savings bank. In connection with the conversion, the Bank's name was changed to Broadway Federal Bank, f.s.b. The conversion was completed, and the Bank became a wholly owned subsidiary of the Company, in January 1996. As of March 31, 2015, the Company had $354.03 million in total assets, $315.42 million in total liabilities and $38.61 million in total stockholders' equity. The Company is regulated by the Board of Governors of the Federal Reserve System. The Bank is regulated by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. Regulatory Matters As a result of significant deficiencies in the Company's and the Bank's operations noted in a regulatory examination in early 2010, the Company and the Bank were declared to be in "troubled condition" and agreed to the issuance of the cease and desist orders by the regulatory predecessor of the Office of the Comptroller of the Currency for the Bank and the Board of Governors of the Federal Reserve System for the Company effective Sept. 9, 2010, requiring, among other things, that the Company and the Bank take remedial actions to improve the Bank's loan underwriting and internal asset review procedures, to reduce the amount of its non-performing assets and to improve other aspects of the Bank's business, as well as the Company's management of its business and the oversight of the Company's business by the Board of Directors. Effective Oct. 30, 2013, the Order for the Bank was superseded by a Consent Order entered into by the Bank with the OCC. As part of the Consent Order, the Bank is required to attain, and thereafter maintain, a Tier 1 (Core) Capital to Adjusted Total Assets ratio of at least 9% and a Total Risk-Based Capital to Risk-Weighted Assets ratio of at least 13%, both of which ratios are greater than the respective 4% and 8% levels for such ratios that are generally required under OCC regulations. The Bank's regulatory capital exceeded both of these higher capital ratios at Dec. 31, 2014, and 2013. BROADWAY FINANCIAL: Reports $1.3M Net Income in First Quarter ------------------------------------------------------------- Broadway Financial Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $1.29 million on $3.9 million of total interest income for the three months ended March 31, 2015, compared to net income of $989,000 on $3.79 million of total interest income for the same period in 2014. As of March 31, 2015, the Company had $354.03 million in total assets, $315 million in total liabilities and $38.6 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Hl5typ About Broadway Financial Los Angeles, Calif.-based Broadway Financial Corporation was incorporated under Delaware law in 1995 for the purpose of acquiring and holding all of the outstanding capital stock of Broadway Federal Savings and Loan Association as part of the Bank's conversion from a federally chartered mutual savings association to a federally chartered stock savings bank. In connection with the conversion, the Bank's name was changed to Broadway Federal Bank, f.s.b. The conversion was completed, and the Bank became a wholly owned subsidiary of the Company, in January 1996. As of Dec. 31, 2014, Broadway Financial had $351 million in total assets, $314 million in total liabilities and $37.3 million in total stockholders' equity. The Company is regulated by the Board of Governors of the Federal Reserve System. The Bank is regulated by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. Regulatory Matters As a result of significant deficiencies in the Company's and the Bank's operations noted in a regulatory examination in early 2010, the Company and the Bank were declared to be in "troubled condition" and agreed to the issuance of the cease and desist orders by the regulatory predecessor of the Office of the Comptroller of the Currency for the Bank and the Board of Governors of the Federal Reserve System for the Company effective Sept. 9, 2010, requiring, among other things, that the Company and the Bank take remedial actions to improve the Bank's loan underwriting and internal asset review procedures, to reduce the amount of its non-performing assets and to improve other aspects of the Bank's business, as well as the Company's management of its business and the oversight of the Company's business by the Board of Directors. Effective Oct. 30, 2013, the Order for the Bank was superseded by a Consent Order entered into by the Bank with the OCC. As part of the Consent Order, the Bank is required to attain, and thereafter maintain, a Tier 1 (Core) Capital to Adjusted Total Assets ratio of at least 9% and a Total Risk-Based Capital to Risk-Weighted Assets ratio of at least 13%, both of which ratios are greater than the respective 4% and 8% levels for such ratios that are generally required under OCC regulations. The Bank's regulatory capital exceeded both of these higher capital ratios at Dec. 31, 2014, and 2013. BTB CORPORATION: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: BTB Corporation Road 165, KM 2.4 Pueblo Viejo Ward Guaynabo, PR 00965 Case No.: 15-03681 Chapter 11 Petition Date: May 17, 2015 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Alexis Fuentes Hernandez, Esq. FUENTES LAW OFFICES, LLC PO BOX 9022726 San Juan, PR 00902-2726 Tel: (787) 722-5216 Fax: (787) 722-5206 Email: alex@fuentes-law.com Total Assets: $16.5 million Total Liabilities: $13.2 million The petition was signed by Samuel Lizardi, interim president. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ US Department of Justice $3,105,629 350 Carlos Chardon St. San Juan PR 00918 Asphaltos Trade S.A. $1,895,882 Ave. Manuel Espinosa Panama Republic of Panama Global Asphalt Logistics and Trading $1,238,514 Sagl Viale Stazione Bellizona Switzerland Olein Recovery Corp. $229,054 Juan R. Robles Transport, Corp. $204,864 Tropigas De Pr, Inc. $135,812 Super Asphalt Pavement Corporation $112,137 Enersys Engineering Corporation $90,342 Coliseo De Puerto Rico $62,500 Puerto Rico Wire, Inc. $28,228 Banco Popular, Credit Card $27,299 Raymond B. Huddleston $25,528 Blacklidge Emulsions, Inc. $25,265 IPFS Corporation $23,132 Tripe-S Salud $16,513 Caribbean Sign Supply $16,084 J.R Insulation Sales & Service $15,275 American Petroleum Co., Inc. $14,220 Reichard & Escalera $8,000 R/O Rental Equipment, Inc. $7,686 BTB CORPORATION: Files for Chapter 11 with $13MM in Debt -------------------------------------------------------- BTB Corporation sought Chapter 11 protection (Bankr. D.P.R. Case No. 15-03681) in Old San Juan, Puerto Rico, on May 17, 2015. BTB said it sought bankruptcy protection as it is unable to meet obligations as they mature, and creditors are threatening suit and have threatened to undertake steps to obtain possession of its assets. The Debtor filed schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $16,567,214 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $5,940,035 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $7,350,373 ----------- ----------- TOTAL $16,567,214 $13,290,408 A copy of the schedules filed together with the petition is available for free at: http://bankrupt.com/misc/prb15-03681_SAL.pdf The Debtor tapped Alexis Fuentes Hernandez, Esq., at Fuentes Law Offices, LLC, as counsel. CHG HEALTHCARE: S&P Retains 'B' Rating on 1st Lien Debt Add-on -------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'B' issue-level rating on CHG Healthcare Services Inc.'s first-lien debt remains unchanged following the company's announcement that it plans to increase the proposed first-lien term loan by $225 million. Earlier this week, the company announced that it planned to increase the first-lien term loan by $200 million. The outstanding pro forma balance on the first-lien term loan will be $796 million. The recovery rating remains '4,' indicating our expectation of average (30% to 50%, at the high end of the range) recovery in the event of a payment default. The company will use proceeds of the incremental debt to retire its second-lien debt and for a dividend to the sponsors. S&P's 'B' corporate credit rating and stable outlook on CHG Healthcare are unchanged. The rating continues to reflect S&P's expectation that the company's financial policy will remain aggressive under financial sponsorship ownership as evidenced by a history of debt-financed dividends that has taken leverage up to 7x. The rating also reflects the company's narrow focus in a highly competitive, and in some areas, highly cyclical health care staffing business. RATINGS LIST CHG Healthcare Services Inc. Corporate Credit Rating B/Stable/-- $810 Mil. First-Lien Term Loan B Recovery Rating 4H CHINA TELETECH: WWC Resigns as Accountant ----------------------------------------- WWC, professional corporation, resigned as China Teletech Holding, Inc.'s independent registered public accounting firm on May 8, 2015, according to a document filed with the Securities and Exchange Commission. The Company engaged WWC effective Nov. 12, 2014, as its independent accounting firm to conduct an interim review of its financial statements for the quarter ended Sep. 30, 2014, and the audit of its financial statements for the fiscal year ended Dec. 31, 2014. Since the commencement of WWC's engagement through WWC's resignation, WWC did not issue an audit report on the Company's financial statements containing an adverse opinion or disclaimer of opinion, nor did WWC issue a report that was qualified or modified as to uncertainty, audit scope or accounting principles, except in its report dated April 15, 2015, for the fiscal year ended Dec. 31, 2014, with respect to the Company's ability to continue as a going concern. During the Engagement Period, there were no disagreements between the Company and WWC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, the Company said in the SEC filing. About China Teletech Tallahassee, Fla.-based China Teletech Holding, Inc., is a national distributor of prepaid calling cards and integrated mobile phone handsets and a provider of mobile handset value-added services. The Company is an independent qualified corporation that serves as one of the principal distributors of China Telecom, China Unicom, and China Mobile products in Guangzhou City, China. On June 30, 2012, the Company strategically sold its wholly-owned subsidiary, Guangzhou Global Telecommunication Company Limited ("GGT"), to a third party. GGT was engaged in the trading and distribution of cellular phones and accessories, prepaid calling cards, and rechargeable store-value cards. China Teletech reported a net loss of $907,000 on $4.29 million of sales for the year ended Dec. 31, 2014, compared with a net loss of $295,000 on $5.03 million of sales for the same period in 2013. As of Dec. 31, 2014, the Company had $11.8 million in total assets, $14.6 million in total liabilities and a $2.77 million total deficit. WWC, P.C., in San Mateo, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred substantial losses which raise substantial doubt about its ability to continue as a going concern. COCRYSTAL PHARMA: Incurs $16.5 Million Net Loss in First Quarter ---------------------------------------------------------------- Cocrystal Pharma, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $16.5 million on $27,000 of grant revenues for the three months ended March 31, 2015, compared to a net loss of $372,000 on $0 of grant revenues for the same period in 2014. As of March 31, 2015, the Company had $269 million in total assets, $79.9 million in total liabilities, and $189 million in total stockholders' equity. "The Company has no products approved for sale, has not generated any revenues to date from product sales, and has incurred significant operating losses since inception. The Company has never been profitable and has incurred losses from operations of $5.8 million and $4.1 million in the years ended December 31, 2014 and 2013, respectively. Subsequent to December 31, 2014, the Company received $15,680,000 in a private placement. The Company believes that its cash on hand of $17 million as of May 14, 2015, will be sufficient to allow the Company to fund its current operating plan for at least the next 12 months. As the Company continues to incur losses, achieving profitability is dependent upon the successful development, approval and commercialization of its product candidates, and achieving a level of revenues adequate to support the Company's cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional capital. Management intends to fund future operations through additional private or public equity offering and may seek additional capital through arrangements with strategic partners or from other sources. There can be no assurances, however, that additional funding will be available on terms acceptable to the Company, or at all. Any equity financing may be very dilutive to existing shareholders," the Company states in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/FLsRgE About Cocrystal Pharma Cocrystal Pharma, Inc., formerly known as Biozone Pharmaceuticals, Inc., is a pharmaceutical company with a mission to discover novel antiviral therapeutics as treatments for serious and/or chronic viral diseases. Cocrystal Pharma employs unique technologies and Nobel Prize winning expertise to create first- and best-in-class antiviral drugs. These technologies and the Company's market- focused approach to drug discovery are designed to efficiently deliver small molecule therapeutics that are safe, effective and convenient to administer. The Company's primary business going forward is to develop novel medicines for use in the treatment of human viral diseases. Cocrystal has been developing novel technologies and approaches to create first-in-class and best-in-class antiviral drug candidates since its initial funding in 2008. Subsequent funding was provided to Cocrystal Discovery, Inc., by Teva Pharmaceuticals Industries, Ltd., or Teva, in 2011. The Company's focus is to pursue the development and commercialization of broad-spectrum antiviral drug candidates that will transform the treatment and prophylaxis of viral diseases in humans. By concentrating the Company's research and development efforts on viral replication inhibitors, the Company plans to leverage its infrastructure and expertise in these areas. Biozone incurred a net loss of $19.6 million in 2013, a net loss of $7.96 million in 2012, and a net loss of $5.45 million in 2011. COMDISCO HOLDING: Reports Fiscal 2nd Quarter Financial Results -------------------------------------------------------------- Comdisco Holding Company, Inc., reported financial results for its fiscal second quarter ended March 31, 2015. Comdisco emerged from Chapter 11 bankruptcy proceedings on Aug. 12, 2002. Under Comdisco's First Amended Joint Plan of Reorganization, Comdisco was charged with, and has been, liquidating its assets. While there have been no changes either to the Plan, or Comdisco's obligations under it, Comdisco adopted ASU 2013-07, Liquidation Basis of Accounting as of Oct. 1, 2014, and accordingly, determined that liquidation was imminent. Therefore, effective Oct. 1, 2014, Comdisco applied the liquidation basis of accounting on a prospective basis. The reporting discloses Comdisco's estimate of the value of the net assets available in liquidation for the Common Shareholders. The liquidation basis of accounting requires the Company to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the plan of liquidation and requires management to make estimates that affect the amounts reported in the consolidated financial statements and the related notes. As of the quarter ended March 31, 2015, there was approximately $37,776,000 in total assets, and approximately $19,456,000 in total liabilities resulting in net assets in liquidation of approximately $18,320,000. The net assets in liquidation as of the quarter ended March 31, 2015 would result in liquidating distributions of approximately $4.55 per common share, based on 4,028,951 shares of common stock outstanding on March 31, 2015. This estimate of liquidating distributions includes projections of costs and expenses to be incurred during the time period estimated to complete the plan of liquidation. There is inherent uncertainty with these estimates, and they could change materially based on the timing of the completion of all the steps necessary for the liquidation. Actual results could differ from these estimates and may affect net assets in liquidation and actual cash flows. During the period of Jan. 1, 2015, through March 31, 2015, the Company's estimated net assets in liquidation decreased by $9,664,000. The reasons for the decline in net assets were due to a dividend payment of approximately $9,450,000 paid on March 12, 2015, and various changes in the estimated liquidation value of other assets. As a result of bankruptcy restructuring transactions, the adoption of fresh-start reporting, multiple asset sales, and the adoption of liquidation basis of accounting, Comdisco's financial results are not comparable to those of its predecessor company, Comdisco, Inc. About Comdisco Comdisco emerged from Chapter 11 bankruptcy proceedings on Aug. 12, 2002. The purpose of reorganized Comdisco is to sell, collect or otherwise reduce to money in an orderly manner the remaining assets of the corporation. Pursuant to the Plan and restrictions contained in its certificate of incorporation, Comdisco is specifically prohibited from engaging in any business activities inconsistent with its limited business purpose. Accordingly, within the next few years, it is anticipated that Comdisco will have reduced all of its assets to cash and made distributions of all available cash to holders of its common stock and contingent distribution rights in the manner and priorities set forth in the Plan. At that point, the Company will cease operations. The Company filed on Aug. 12, 2004, a Certificate of Dissolution with the Secretary of State of the State of Delaware to formally extinguish Comdisco Holding Company, Inc.'s corporate existence with the State of Delaware except for the purpose of completing the wind-down contemplated by the Plan. Under the Plan, Comdisco was charged with, and has been, liquidating its assets. While there have been no changes either to the Plan, or Comdisco's obligations under it, Comdisco adopted ASU 2013-07, Liquidation Basis of Accounting as of Oct. 1, 2014, and accordingly, determined that liquidation was imminent. Therefore, effective Oct. 1, 2014, Comdisco applied the liquidation basis of accounting on a prospective basis, and, as such, the results of operations under liquidation basis of accounting are not comparable to the historical results under a going concern basis. CONVATEC HEALTHCARE: Moody's Affirms B2 CFR, Outlook Negative ------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to the proposed $1.85 billion senior secured credit facilities by ConvaTec Inc. and ConvaTec Healthcare E.S.A., the subsidiary companies of ConvaTec Healthcare A S.a.r.l (collectively "ConvaTec"). At the same time, Moody's affirmed ConvaTec Healthcare A S.a.r.l's B2 Corporate Family Rating and B2-PD Probability of Default Rating. The rating outlook remains negative. The proceeds of the debt offering will be used to refinance the company's existing senior secured term loan due 2016 and senior secured notes due 2017, and to pay related fees and expenses. The new credit facility will be comprised of a $200 revolving credit facility (undrawn upon closing) and $1.65 billion term loans denominated in Euro and USD. The new revolver will replace the existing $250 million senior secured revolving credit facility that expires this year. The affirmation of the B2 CFR assumes timely completion of the proposed refinancing. Moody's expects operating performance to stabilize in the coming year despite the company's recently reported weak operating performance and near-term earnings headwinds from unfavorable foreign exchange movements. ConvaTec's diversified business franchise, solid market positions across business units and recurring nature of some of its revenue base provide a buffer against operating challenges. Moody's expects ConvaTec's EBITDA to stabilize over the next 6-12 months amid foreign exchange headwinds, then gradually improve in 2016, leading to steady deleveraging over time. The proposed refinancing will improve the company's debt maturity profile, thus enhancing liquidity. Moody's notes the company's liquidity is weak absent the refinancing. "There is significant downside risk to the rating should operating performance and the pace of deleveraging deviate from our current expectations hence we are maintaining the negative outlook," commented Moody's senior analyst, John Zhao, a Vice President. ConvaTec's new management faces many challenges to turn around the weak operating results in 2014. These challenges stem from product quality related recalls, inventory write-downs and on-going pricing pressure due to competition and reimbursement cuts. Moody's also remains concerned about outstanding or recently-developed regulatory, legal and compliance issues, ranging from FDA warning letters and 483 observations, Department of Justice subpoenas, product liability litigation and internal control deficiencies in financial reporting. "While it's difficult to assess potential impact at this juncture, we believe ConvaTec's overall business risk has increased due to uncertainty related to these events," Added Zhao. Should the expected recovery in operating performance fail to materialize and the company is unable to de-lever in 2015, or the refinancing does not transpire, Moody's could downgrade the rating. Moody's also revised the ratings on ConvaTec's existing senior secured revolving credit facility and term loan to Ba2 from Ba3 to reflect the repayment of senior secured debt in the past year, which has resulted in improved recovery prospects for the remaining secured debt in a distressed scenario. Following is a summary of Moody's rating actions: (subject to Moody's review of final documents) Issuer: Convatec Healthcare A S.a.r.l -- Corporate Family Rating affirmed at B2 -- Probably of Default Rating affirmed at B2-PD -- Rating outlook: negative Issuer: ConvaTec Healthcare E.S.A. -- $200 million senior secured revolver due 2020, rated at Ba2, LGD2 -- Senior unsecured notes due 2018, affirmed at B3, LGD4 (revised up from LGD5) -- $250 million senior secured revolver due 2015, revised to Ba2, LGD2 from Ba3, LGD2 (to be withdrawn upon closing) -- Senior secured notes due 2017, revised to Ba2, LGD2 from Ba3, LGD2 (to be withdrawn upon closing) Issuer: ConvaTec Inc. -- Senior secured term loan due 2020, rated at Ba2, LGD2 -- Senior secured term loan due 2016, revised to Ba2, LGD2 from Ba3, LGD2 (to be withdrawn upon closing) Issuer: ConvaTec Finance International S.A. -- Subordinated PIK notes due 2019, affirmed at Caa1, LGD6 ConvaTec's B2 corporate family rating (CFR) reflects its high financial leverage, with debt/EBITDA above 7.0x and modest free cash flow. The rating also incorporates the company's heightened business risks due to on-going operational challenges as well as compliance, legal and regulatory issues. While Moody's expects the company's leverage to decline gradually in the next 12 months, there is a significant downside risk to earnings and cash flows due to uncertainty potentially arising from these challenges, thus hindering the company's ability to de-lever. Moody's is also mindful of the company's historically aggressive financial policies that resulted in repeated re-leveraging in recent years, either via acquisitions or a significant dividend payment. ConvaTec's B2 rating also reflects Moody's expectation of an attractive EBITDA margin of around 30% and good liquidity following the refinancing transaction. The company has a leading position in non-cyclical, predictable markets and a recurring revenue stream. It also has a broad product portfolio and track record of product life-cycle management and innovation, which together with its solid geographic diversification and limited customer concentration partially mitigate the company's high leverage. Moody's could downgrade ConvaTec if debt/EBITDA remains sustainably above 7.0x. A material adverse event, debt-funded acquisition, and/or sizeable restructuring costs could also trigger a downgrade. Also, a weakening of the company's liquidity profile could lead to a downgrade. For Moody's to consider a rating upgrade to B1, ConvaTec would need to (1) deliver sustained deleveraging towards 5.5x debt/EBITDA; (2) achieve FCF/debt that is trending towards 5%; and (3) establish a track record of a more conservative financial policy. Resolution of the FDA warning letters, improvement in compliance and regulatory practices, and remediation of material weaknesses in internal control over financial reporting would also support an upgrade. The principal methodology used in these ratings was 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. ConvaTec Healthcare A S.a.r.l. ("ConvaTec") is a leading developer, manufacturer and marketer of products for ostomy management, advanced chronic and acute wound care, continence & critical care (CCC), sterile single-use medical devices for hospitals, and infusion sets used in diabetes treatment. ConvaTec generated approximately $1.7 billion of revenues for the 12 months ended December 31, 2014. ConvaTec is owned by Nordic Capital and Avista Capital Partners. CONVATEC HEALTHCARE: S&P Affirms B+ CCR & Rates $1.85MM Loans B+ ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on ConvaTec Healthcare B S.a.r.l. The outlook is stable. S&P assigned a 'B+' issue-level rating to its new credit facility, which consists of approximately $1.65 million term loans denominated in euro and U.S. dollars, and a $200 million revolver credit facility. The recovery rating is '3', indicating expectations for meaningful (50% to 70%; at the higher end of the range) recovery in the event of default. S&P also affirmed the 'B' issue-level rating on its $745 million U.S.-dollar-denominated senior unsecured notes and EUR250 million euro-denominated unsecured notes. The recovery rating is '5', indicating expectations for modest (10% to 30%; at the lower end of the range) recovery in the event of default. In addition, S&P affirmed its 'B-' issue-level rating on the company's $900 million holdco payment-in-kind (PIK) notes. The recovery rating of '6' indicates expectations of negligible (0% to 10%) recovery in the event of default. "Our rating outlook on ConvaTec is stable, reflecting our expectation that the company will maintain relatively steady operating performance and continue to generate healthy levels of cash flow despite high leverage," said Standard & Poor's credit analyst Tahira Wright. Given an already highly leveraged capital structure, S&P believes a downgrade would occur if the company incurred a material loss in market share or S&P expects poor operating trends to continue over a substantial period. This could result in a downward assessment of the company's business risk. S&P considers an upgrade to be unlikely given its significant debt burden that includes the PECs and PIK holdco notes. A higher rating could result from a significant deleveraging of the capital structure, possibly from an initial public offering. CORD BLOOD: Cryo-Cell Reports 7.2% Equity Stake as of May 14 ------------------------------------------------------------ In an amended Schedule 13D filed with the Securities and Exchange Commission, Cryo-Cell International, Inc. disclosed that as of May 14, 2015, it beneficially owns 91,916,496 shares of common stock of Cord Blood America, Inc., which represents 7.23 percent of the shares outstanding. Cryo-Cell previously filed a lawsuit in the Pinellas County Court, Florida, in order to compel Cord Blood to hold an annual meeting of shareholders for the purpose of electing directors. On May 8, 2015, Cord Blood filed a Form 8-K with the Securities and Exchange Commission announcing that it would hold an annual meeting of shareholders on July 14, 2015, to, amongst other matters, elect directors. In the fourth quarter of 2014, Cryo-Cell conducted due diligence on the Company and was in negotiations at that time with the Company to engage in a business combination with, or make a capital investment in, Cord Blood. A full-text copy of the regulatory filing is available at: http://is.gd/2q7NVq About Cord Blood America Based in Las Vegas, Nevada, Cord Blood America, Inc., is primarily a holding company whose subsidiaries include Cord Partners, Inc., CorCell Co. Inc., CorCell Ltd.; CBA Professional Services, Inc. D/B/A BodyCells, Inc.; CBA Properties, Inc.; and Career Channel Inc, D/B/A Rainmakers International. Cord specializes in providing private cord blood stem cell preservation services to families. BodyCells is a developmental stage company and intends to be in the business of collecting, processing and preserving peripheral blood and adipose tissue stem cells allowing individuals to privately preserve their stem cells for potential future use in stem cell therapy. Properties was formed to hold the corporate trademarks and other intellectual property of CBAI. Rain specializes in creating direct response television and radio advertising campaigns, including media placement and commercial production. The Company has been the subject of a going concern opinion by its independent auditors who have raised substantial doubt as to the Company's ability to continue as a going concern. De Joya Griffith, LLC, in Henderson, NV, noted that the Company has incurred losses from operations, which losses have caused an accumulated deficit of approximately $53.46 million as of Dec. 31, 2014. The Company disclosed net income of $240,000 on $4.33 million of revenue for the year ended Dec. 31, 2014, compared to a net loss of $2.97 million on $3.82 million of revenue for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $3.86 million in total assets, $4.55 million in total liabilities, and a $691,000 total stockholders' deficit. CUMULUS MEDIA: Stockholders Elect 7 Directors to Board ------------------------------------------------------ The 2015 annual meeting of stockholders of Cumulus Media Inc. was held on May 14, 2015, at which the stockholders elected Lewis W. Dickey, Jr., Mary G. Berner, Brian Cassidy, Ralph B. Everett, Alexis Glick, Jeffrey A. Marcus and David M. Tolley as directors. The stockholders also approved, on an advisory basis, the compensation of the Company's executive officers and ratified the appointment of PricewaterhouseCoopers LLP as the Company's independent registered public accounting firm for 2015. About Cumulus Media Cumulus Media Inc. (CMLS) combines high-quality local programming with iconic, nationally syndicated media, sports and entertainment brands in order to deliver premium choices for listeners, provide substantial reach for advertisers and create opportunities for shareholders. As the largest pure-play radio broadcaster in the United States, Cumulus provides exclusive content that is fully distributed through approximately 460 owned-and-operated stations in 90 U.S. media markets (including eight of the top 10), more than 10,000 broadcast radio affiliates and numerous digital channels. Cumulus is well-positioned in the widening digital audio space through a significant stake in the Rdio digital music service, featuring 30 million songs on-demand in addition to custom playlists and exclusive curated channels. Cumulus is also the leading provider of country music and lifestyle content through its NASH brand, which will serve country fans through radio programming, NASH magazine, concerts, licensed products and television/video. For more information, visit www.cumulus.com Cumulus Media put AR Broadcasting Holdings Inc. and three other units to Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-13674) in 2011 after struggling to pay off debts that topped $97 million as of June 30, 2011. As of March 31, 2015, the Company had $3.71 billion in total assets, $3.18 billion in total liabilities, and $533 million in total stockholders' equity. Bankruptcy Warning "The lenders under the Credit Agreement have taken security interests in substantially all of our consolidated assets, and we have pledged the stock of certain of our subsidiaries to secure the debt under the Credit Agreement. If the lenders accelerate the required repayment of borrowings, we may be forced to liquidate certain assets to repay all or part of such borrowings, and we cannot assure you that sufficient assets will remain after we have paid all of the borrowings under such Credit Agreement. If we were unable to repay those amounts, the lenders could proceed against the collateral granted to them to secure that indebtedness and we could be forced into bankruptcy or liquidation. Our ability to liquidate assets could also be affected by the regulatory restrictions associated with radio stations, including FCC licensing, which may make the market for these assets less liquid and increase the chances that these assets would be liquidated at a significant loss. Any requirement for us to liquidate assets would likely have a material adverse effect on our business," the Company said in its annual report for the year ended Dec. 31, 2014. * * * Standard & Poor's Ratings Services, in September 2014, revised its rating outlook on Atlanta, Ga.-based Cumulus Media to stable from positive. S&P also affirmed its 'B' corporate credit and existing debt ratings on the company. As reported by the TCR in April 2013, Moody's Investors Service downgraded Cumulus Media's Corporate Family Rating to 'B2' from 'B1' and Probability of Default Rating to 'B2-PD' from 'B1-PD'. The downgrades reflect Moody's view that the pace of debt repayment and delevering will be slower than expected. Although EBITDA for fourth quarter of 2012 reflects growth over the same period in the prior year, results fell short of Moody's expectations. DANDRIT BIOTECH: Robert Wolf Quits From Board of Directors ---------------------------------------------------------- The board of directors of DanDrit Biotech USA, Inc., accepted the amicable resignation of Robert Wolf as director, effective May 10, 2015, according to a document filed with the Securities and Exchange Commission. There were no disagreements between Mr. Wolf and the Company and Mr. Wolf does not serve on any committees of the Board, the Company said in the filing. About DanDrit DanDrit Biotech USA, Inc., a biotechnology company, develops vaccine for the treatment of colorectal cancer primarily in the United States, Europe, and Asia. Its lead compound includes MelCancerVac(MCV), a cellular therapy, which is in a comparative Phase IIb/III clinical trial for advanced colorectal cancer. It also develops MelVaxin that is similar to the lysate component of MCV for injecting into the skin to promote natural dendritic cell responses that will attack the tumor expressing cancer/testis antigens. The company was founded in 2001 and is headquartered in Copenhagen, Denmark. Dandrit Biotech reported a net loss of $2.37 million on $0 of net sales for the year ended Dec. 31, 2014, compared to a net loss of $2.14 million on $32,800 of net sales for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $3.64 million in total assets, $971,968 in total liabilities and $2.67 million in total stockholders' equity. DAVID'S BRIDAL: Moody's Alters Ratings Outlook to Negative ---------------------------------------------------------- Moody's Investors Service changed David's Bridal, Inc.'s rating outlook to negative from stable. Concurrently, Moody's affirmed all of the company's ratings, including the B3 Corporate Family Rating, B3-PD Probability of Default Rating, B2 senior secured term loan rating and Caa2 senior unsecured notes rating. The change in outlook to negative reflects David Bridal's weak operating performance and risk that the company may not be able to demonstrate sufficient growth to delever and position itself to refinance debt maturities without principal impairment. Management-reported adjusted EBITDA declined by 19% in calendar 2014 following a 5% decline in 2013, as a result of missteps with its promotional messages, catch-up investment in ecommerce, and continued weak demand from lower end customers. Moody's projects moderate EBITDA growth and breakeven to positive free cash flow generation in the near term, supported by strong positive momentum in Q1 2016. However, the company will need to sustain a meaningful operational turnaround to diminish refinancing risk. Moody's took the following rating actions on David's Bridal, Inc.: Ratings affirmed: -- Corporate Family Rating, at B3 -- Probability of Default Rating, at B3-PD -- $497 million ($520 million face value) Senior Secured Bank Credit Facility due 2019, at B2(LGD3) -- $270 million Senior Unsecured Regular Bond due 2020, at Caa2(LGD5) -- Outlook, Changed To Negative From Stable The B3 Corporate Family Rating reflects the company's highly leveraged capital structure with debt/EBITDA of low-8 times as of April 4, 2015 and EBITDA/interest expense of low-1 time. The ratings also reflect the company's modest scale, and limited product diversity as a specialty retailer in a niche industry. Earnings have deteriorated since the 2012 leveraged buy-out as a result of both marriage delays among David's Bridal core lower-income customers purchasing under $600 bridal gowns, the company's challenges in also catering to more affluent consumers, and catch-up digital investment. In light of the high leverage and uncertainty regarding the company's ability to turn around its operating performance on a sustained basis, the company is weakly positioned in the B3 rating category. However, the rating derives key support from David's Bridal's good liquidity, including lack of maturities until the 2017 asset-based revolver expiration, break-even to positive annual free cash flow, sufficient availability under the $125 million revolver and springing covenant-only debt structure. In addition, the rating is supported by the company's well-recognized banner and broad product selection and competitive prices as these characteristics give David's Bridal a credible market position in the highly fragmented bridal sector. The bridal niche is somewhat recession-resistant, though not immune to the negative impact of high unemployment on consumer demand. The business is also subject to limited fashion risk, although earnings are vulnerable to changing consumer preferences including accessory conversion rates. The negative rating outlook reflects the risk that David Bridal's earnings may not sufficiently improve in the near term to put the company on track towards a sustainable capital structure when its maturities approach. The outlook could revert back to stable if David's Bridal extends its revolver maturity such that it does not face maturities before 2019. A stable outlook would also require positive free cash flow generation and sustained earnings growth. The ratings could be downgraded if liquidity were to deteriorate for any reason, including weak or negative free cash flow or failure to proactively address its ABL maturity such that it does not face maturities before 2019. The ratings could also be downgraded if operating performance does not meaningfully improve in the next 12-18 months such that the risk of a discounted debt repurchases or other distressed exchange increases. In view of the company's weak position in the B3 rating category, a ratings upgrade is unlikely in the near term. The ratings could be upgraded if the company exhibits a commitment towards lower leverage, including by reducing outstanding debt, such that debt/EBITDA is maintained below 6 times and EBITA/interest expense is sustained above 1.75 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. David's Bridal, Inc., headquartered in Conshohocken, PA, is a bridal retailer with 313 stores throughout the U.S., 11 in Canada, 1 in Puerto Rico and 1 in the UK. The company sells both value-oriented wedding gowns at under $800 and higher price point gowns up to $2,000, as well as other wedding- and special-occasions apparel and accessories. Revenues for the twelve months ended April 4, 2015 were approximately $766 million. The company has been controlled by Clayton, Dubilier & Rice, LLC (75%) and Leonard Green & Partners, L.P. (25%) since the October 2012 buyout from Leonard Green & Partners, L.P. DIA-DEN LTD: Wants Claims Bar Date Shortened to June 8 ------------------------------------------------------ Dia-Den Ltd. filed with the U.S. Bankruptcy Court for the Southern District of Texas a motion to reduce the time for filing proofs of claim for non-governmental entities to June 8, 2015. The Debtor has already filed its Plan and Disclosure Statement together with the bankruptcy petition. The Debtor seeks to proceed through Chapter 11 on an expedited basis. T. Josh Judd, Esq., at Hoover Slovacek LLP, explains that because the Debtor's property is stable and income and expenses remain fairly predictable, the Debtor does not require an extended amount of time to reorganize its business. In addition, upon information and belief, Wells Fargo may seek imposition of default interest rate from the Petition Date until the Effective Date of the Plan. The Debtor disputes that the factual circumstances in this case would justify the imposition of the default rate (which is discretionary). Regardless, to avoid a protracted dispute, the Debtor seeks to proceed through the Chapter 11 bankruptcy process on an expedited basis. The Debtor filed its Plan and Disclosure Statement on the Petition Date and are prepared to proceed to Plan confirmation no later than June 30, 2015. The Debtor needs to fully understand the nature and amount of claims against the Debtor (including whether Wells Fargo has redeemed or purchased the Series 2007 Bonds) in order to proceed with plan confirmation and in order to make additional (if necessary) appropriate disclosures related to such a plan and the treatment of creditor claims thereunder. Additionally, other parties-in-interest require time to evaluate the claims against the Debtor's estate prior to confirmation in order to determine whether or not to support the plan. Shortening the bar date to June 8, 2015 (for non-governmental entities), would allow ample time for all the parties involved in this chapter 11 case to make analyze claims while also providing sufficient time for creditors to prepare their proofs of claim, Mr. Judd tells the Court. About Dia-Den Ltd. Dia-Den Ltd. is a Texas limited partnership with its principal place of business in Harris County, Texas. Dia-Den owns and leases to single tenant the industrial complex located at 24310 State Highway 249, Tomball, Texas 77375. Dia-Den Ltd. sought Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 15-32626) in Houston, Texas, on May 8, 2015. The case is assigned to Judge Jeff Bohm. The Debtor tapped Hoover Slovacek, LLP, as counsel. The Debtor disclosed $12 million in assets and $8.09 million in liabilities in its schedules. DILLARD'S INC: Fitch Affirms 'BB' Rating on Capital Securities -------------------------------------------------------------- Fitch Ratings has assigned a 'BBB-' rating to Dillard's Inc.'s new $1 billion senior unsecured revolving credit facility due to mature on May 13, 2020. This replaces its previous $1 billion senior secured revolving credit facility due July 2018. Fitch currently rates Dillard's Long-term Issuer Default Rating (IDR) 'BBB-'. As of Jan. 31, 2015, Dillard's had $815 million of debt outstanding. The revolver contains financial covenants which include minimum fixed-charge coverage (EBITDAR over rent and interest expense) of at least 2.5x and maximum leverage (total debt-to-EBITDA) of 4.0x. Dillard's fixed charge coverage was 9.6x and leverage ratio 1.0x at the end of 2014 based on covenant calculations. The new revolving credit facility is unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by all of the company's U.S. subsidiaries, except the unrestricted and excluded subsidiaries as defined by the credit agreement, a structural enhancement relative to its existing unsecured debt. Other key covenants include: -- Negative pledge on inventory; Total indebtedness subject to pro forma leverage of 4.0x with the ability to: -- Issue secured debt (or 'Priority Debt") backed by real estate at its operating subsidiaries (including debt at Dillard's Properties, Inc.) subject to the greater of $2 billion and Priority Debt/consolidated EBITDA ratio of 2.5x; -- Issue general financing on capital expenditures not to exceed $100 million in each fiscal year; -- Provide liens on purchase money and capital leases not to exceed $100 million in each fiscal year; -- Sales of assets to include (a) sales of inventory in the ordinary course of business and (b) other dispositions in an aggregate amount not to exceed 50% of the book value of the consolidated total assets of the borrower and its subsidiaries; -- Other usual and customary covenants for an investment grade profile. KEY RATING DRIVERS The ratings reflect Dillard's positive comparable store sales (comps) trends over the past five years, which have exceeded the industry average for most of this time frame, and an EBITDA margin that has stabilized in the 12% range over the last two years. Dillard's has significantly narrowed the gap with the strong operators that have EBITDA margins in the 13%-14% range. Fitch expects Dillard's to generate comps growth of around 1%-2% over the next 24 months and EBITDA margin to remain flat-to-modestly higher. While Dillard's credit metrics are strong for the 'BBB-' rating category with adjusted debt/EBITDAR currently at 1.1x, the ratings continue to incorporate Dillard's below industry-average sales productivity (as measured by sales per square foot) and operating profitability and geographical concentration relative to its higher rated investment-grade department store peers. Fitch expects Dillard's will continue to maintain or modestly grow its market share of the overall apparel and accessories category in the near- to intermediate-term, although long-term secular trends in the department store space remain negative and the decline in mall traffic has accelerated. Fitch expects Dillard's leverage to remain in the low-1x range over the next three years. Dillard's is the sixth largest department store chain in the U.S. in terms of sales, with retail revenue of $6.5 billion on 274 stores and 23 clearance centers in 29 states concentrated in the southeast, central and southwestern U.S. Dillard's comps have continued their positive trajectory since 2010, although growth moderated since 2013 to 1% versus the 3%-4% range between 2010 and 2012. Dillard's has experienced positive comp growth by improving its merchandise assortment towards more upscale brands, better in-store execution, and strong inventory control. The company continues to focus on closing underperforming stores, closing a net 29 units or approximately 10% of its square footage since the end of 2007. However, Dillard's annual sales per square foot at approximately $130 is significantly lower than other well-operated mid-tier department store peers, which are in the $180-$200 range (based on gross square footage) and could constrain further improvement in EBITDA margin. From a store investment perspective, capex is expected to moderately increase to around $160 million in 2015, from $152 million in 2014, versus an average of roughly $110 million in 2010 - 2013, to support increasing investments in store updates (in the higher sales generating or more productive areas of the store), online growth initiatives and some modest new store openings expected in 2015/2016. Liquidity remains strong, supported by a cash balance of $404 million as of Jan. 31, 2015, and $904 million available under its $1 billion credit facility, net of letters of credit outstanding. The company generated approximately $450 million in free cash flow (FCF; before special dividends) in 2014, the highest level since 2009, reflecting EBITDA growth and some working capital benefit. FCF generation has been approximately $400 million on average over the last five years, and Fitch expects Dillard's to maintain this level going forward, assuming modest working capital uses and a modest increase in capex. Given no debt maturities until early 2018, Fitch expects Dillard's will direct excess cash flow toward share buybacks and/or increased dividends including any one-time special dividends. The new $1 billion senior unsecured credit facility, which is due to mature in May 2020 and the $615 million of senior unsecured notes are rated at par with the IDR at 'BBB-', while the $200 million in capital securities due 2038 are rated two notches below the IDR reflecting their structural subordination. Fitch notes that Dillard's owns 88% of its retail square footage, which is unencumbered. KEY ASSUMPTIONS -- Comps growth in the 1%-2% range over the next 24 months and EBITDA margin to remain flat-to-modestly higher; -- Leverage to remain in the low-1x range; -- FCF of approximately $400 million annually, which Fitch expects will be directed toward share buybacks and/or increased dividends including any one-time special dividends. RATING SENSITIVITIES A positive rating action could result in the event that Dillard's continues to generate above-industry-average comparable store gains and EBITDA margin improves to the 13% - 14% range. A negative rating action could result in the event of a return to negative sales trends and/or a more aggressive financial posture, leading to an increase in leverage ratio of more than 2.5x and/or reduced financial flexibility. Fitch has assigned these rating: -- $1 billion revolving credit facility 'BBB-'. Fitch currently rates Dillard's as: -- Long-term IDR at 'BBB-'; -- Senior unsecured notes at 'BBB-'; -- Capital securities at 'BB'. The Rating Outlook is Stable. DOLPHIN DIGITAL: Incurs $1.05 Million Net Loss in First Quarter --------------------------------------------------------------- Dolphin Digital Media Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.05 million on $3,750 of total revenues for the three months ended March 31, 2015, compared to a net loss of $459,000 on $503,000 of total revenues for the same period in 2014. As of March 31, 2015, the Company had $2.48 million in total assets, $12.3 million in total liabilities, all current, and a $9.84 million total stockholders' deficit. As of March 31, 2015, and March 31, 2014, the Company had cash of approximately $0.3 million and approximately $0.8 million, respectively, and a working capital deficit of approximately $11.9 million and approximately $8.2 million, respectively. A full-text copy of the Form 10-Q is available for free at: http://is.gd/kij3D5 About Dolphin Digital Coral Gables, Florida-based Dolphin Digital Media, Inc., is dedicated to the twin causes of online safety for children and high quality digital entertainment. By creating and managing child-friendly social networking websites utilizing state-of the- art fingerprint identification technology, Dolphin Digital Media, Inc. has taken an industry-leading position with respect to internet safety, as well as digital entertainment. Dolphin Digital reported a net loss of $1.87 million on $2.07 million of total revenue for the year ended Dec. 31, 2014, compared to a net loss of $2.46 million on $2.29 million of total revenue for the year ended Dec. 31, 2013. BDO USA, LLP, in Miami, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has suffered recurring losses from operations, negative cash flows from operations, and does not have sufficient working capital. These events raise substantial doubt about the Company's ability to continue as a going concern. DR TATTOFF: Delays Q1 Form 10-Q Due to Staffing Issues ------------------------------------------------------ Dr. Tattoff, Inc. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the quarter ended March 31, 2015. The Company said the Form 10-Q could not be filed within the prescribed time period because of issues with the staffing of the Company's finance department and the need to collect certain information that would make the report on the Form 10-Q complete which could not be done in a timely manner. About Dr. Tattoff Beverly Hills, Calif.-based Dr. Tattoff, Inc., currently operates or provides management services to five laser tattoo and hair removal clinics located in Texas and California, all of which operate under the Company's registered trademark "Dr. Tattoff." Dr. Tattoff reported a net loss of $6.58 million on $4.31 million of revenues for the year ended Dec. 31, 2014, compared with a net loss of $4.3 million on $3.65 million of revenues for the same period a year ago. As of Dec. 31, 2014, the Company had $2.25 million in total assets, $12.1 million in total liabilities and a $9.86 million total shareholders' deficit. SingerLewak LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's current liabilities exceeded its current assets by approximately $6.49 million, has a shareholders' deficit of $9.86 million, has suffered recurring losses and negative cash flows from operations, and has an accumulated deficit of approximately $18.3 million at Dec. 31, 2014. This raises substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. DUER WAGNER III OIL: Case Summary & Largest Unsecured Creditors --------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Duer Wagner III Oil & Gas, LP 15-41961 301 Commerce Street, Suite 1830 Fort Worth, TX 76102 Duer Wagner III & Partners, LLC 15-41962 301 Commerce Street, Suite 1830 Fort Worth, tx 76102 Duer Wagner III, Inc. 15-41963 301 Commerce Street, Suite 1830 Fort Worth, TX 76102 Duer Wagner III Energy, LLC 15-41964 Norton Oil & Gas, LP 15-41966 Jeffcoat, LP 15-41967 Lett Oil & Gas, LP 15-41968 Woodson Oil & Gas, LP 15-41969 Modano Oil & Gas, LP 15-41970 Teixeira Oil & Gas, LP 15-41971 Nowitzki Oil & Gas, LP 15-41972 Bodine Oil & Gas, LP 15-41973 301 Commerce Street, Suite 1830 Fort Worth, TX 76102 Chapter 11 Petition Date: May 15, 2015 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: Hon. Russell F. Nelms [15-41961, 15-41963 and 15-41973] Hon. D. Michael Lynn [15-41962] Debtors' Counsel: Joshua N. Eppich, Esq. SHANNON, GRACEY, RATLIFF & MILLER, LLP 1301 McKinney, Suite 2900 Houston, TX 77010 Tel: (713) 255-4700 Fax: (713) 655-1597 Email: jeppich@shannongracey.com - and - Hunter Brandon Jones, Esq. John Y. Bonds, III, Esq. SHANNON, GRACEY, RATLIFF & MILLER, LLP 420 Commerce Street Ste 500 Fort Worth, TX 76102 Tel: (817) 877-8165 Fax: (817) 336-3735 Email: bjones@shannongracey.com jbonds@shannongracey.com Estimated Estimated Assets Liabilities ------------ ------------- Duer Wagner III Oil & Gas, LP $1MM-$10MM $100MM-$500MM Duer Wagner III & Partners $0-$50K $100MM-$500MM Duer Wagner III, Inc. $100K-$500K $100MM-$500MM Bodine Oil & Gas, LP $1MM-$10MM $100MM-$500MM The petition was signed by Roy E. Guinnup, manager of Duer Wagner III & Partners, LLC, the general partner. A list of Duer Wagner III Oil's three largest unsecured creditors is available for free at http://bankrupt.com/misc/txnb15-41961.pdf A list Duer Wagner III, Inc.'s 17 largest unsecured creditors is available for free at http://bankrupt.com/misc/txnb15-41963.pdf EAST SAILE: Case Summary & 2 Largest Unsecured Creditors -------------------------------------------------------- Debtor: East Saile Properties, LLC 4736 East Saile Drive Batavia, NY 14020 Case No.: 15-11050 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: May 15, 2015 Court: United States Bankruptcy Court Western District of New York (Buffalo) Judge: Hon. Michael J. Kaplan Debtor's Counsel: David H. Ealy, Esq. TREVETT, CRISTO, SALZER & ANDOLINA P.C. 2 State Street, Suite 1000 Rochester, NY 14614 Tel: (585) 454-2181 Fax: (585) 454-4026 Email: dealy@trevettlaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Nash A. Dsylva, sole member. A list of the Debtor's two largest unsecured creditors is available for free at http://bankrupt.com/misc/nywb15-11050.pdf ECO BUILDING: Needs More Time to File Q1 For 10-Q ------------------------------------------------- Eco Building Products Inc. said it was unable, without unreasonable effort or expense, to file its quarterly report on Form 10-Q for the period ended March 31, 2015, by the filing date applicable to smaller reporting companies due to a delay experienced by the Company in completing its financial statements and other disclosures in the Quarterly Report. According to the Company, it is still in the process of compiling required information to complete the Quarterly Report and its independent registered public accounting firm requires additional time to complete its review of the financial statements for the period ended March 31, 2015, to be incorporated in the Quarterly Report. The Company anticipates that it will file the Quarterly Report no later than the 15th calendar day following the prescribed filing date. About Eco Building Vista, Calif.-based Eco Building Products is a manufacturer of proprietary wood products treated with an eco-friendly proprietary chemistry that protects against mold, rot, decay, termites and fire. The Company reported a net income of $532,000 on $876,000 of total revenue for the three months ended Sept. 30, 2014, compared with a net loss of $1.87 million on $408,328 of total revenue for the same period a year ago. As of Sept. 30, 2014, the Company had $1.74 million in total assets, $24.03 million in total liabilities and a $22.3 million total stockholders' deficit. ECOSPHERE TECHNOLOGIES: Obtains $250,000 Loan From Brisben Water ---------------------------------------------------------------- Ecosphere Technologies, Inc., received a loan of $250,000 from Brisben Water Solutions, LLC, on May 8, 2015, according to a Form 8-K filed with the Securities and Exchange Commission. In connection with this loan, the Company delivered to Brisben Water a 10% secured convertible promissory note due Sept. 12, 2015, and convertible at $0.115 per share. Additionally, the Company issued the Lender a warrant to purchase 4,347,826 shares of the Company's common stock exercisable at $0.115 per share. The Note is secured by first liens on the Company's Ecos GrowCubeO unit, the Company's patent pertaining to the Company's technology related to treating the waters of Lake Okeechobee, and a patent pending on the Company's Ecos GrowCubeO unit. In addition, the Note is secured by collateral the Lender previously had on other notes evidencing prior loans totaling $1,500,000, consisting of the Ecos PowerCube unit and the right to proceeds from any sale of the Company's interest in Fidelity National Environmental Solutions, LLC. In the event of any sale of the Collateral upon a default under the Note or any of the Company's prior notes held by the Lender, which are also secured by the Collateral, the Company would be entitled to any proceeds remaining after satisfaction of any amounts outstanding under the Note, the prior notes held by the Lender, and related costs. About Ecosphere Technologies Stuart, Florida-based Ecosphere Technologies (OTC BB: ESPH) -- http://www.ecospheretech.com/-- is a water engineering, technology licensing and environmental services company that designs, develops and manufactures wastewater treatment solutions for industrial markets. Ecosphere, through its majority-owned subsidiary Ecosphere Energy Services, LLC, provides energy exploration companies with an onsite, chemical free method to kill bacteria and reduce scaling during fracturing and flowback operations. Ecosphere reported a net loss of $11.5 million on $1.11 million of total revenues for the year ended Dec. 31, 2014, compared with net income of $19.2 million on $6.71 million of total revenues for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $15.05 million in total assets, $3.82 million in total liabilities, $3.8 million in total redeemable convertible cumulative preferred stock, and $7.42 million in total equity. Salberg & Company, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company reported a net loss of $11.5 million in 2014, and cash used in operating activities of $4.55 million and $10.3 million in 2014 and 2013, respectively. At Dec. 31, 2014, the Company had a working capital deficiency, and accumulated deficit of $2.86 million, and $109 million, respectively. These matters raise substantial doubt about the Company's ability to continue as a going concern. ENDEAVOUR INT'L: Proposes Aug. 11 Auction of Assets --------------------------------------------------- Endeavour Operating Corporation, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to sell substantially all of their U.S. assets and implement procedures governing the auction and sale of the assets. The Debtors' counsel, Zachary I. Shapiro, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware tells the Court that after evaluating different courses of action, the Debtors have determined in their business judgment that a timely sale of all or part of the Assets is in the best interests of the Debtors, their estates and creditors, and all parties in interest under the circumstances. A protracted Chapter 11 case could, among other things, permanently deplete the value of the Debtors' estates, while the Sale Transaction will preserve and protect the value of the Assets with the ultimate goal of maximizing the benefit to the Debtors' estates and their stakeholders, Mr. Shapiro adds. In furtherance of the same goal, certain non-Debtor affiliates are exploring restructuring alternatives, including preparing for the commencement of a separate marketing process in the U.K. for the sale of substantially all of their U.K.-based oil and gas assets. The proposed bid procedures establishes the following timeline: Deadline to Serve Sale Notice and Notice of Assumption and Assignment -- May 22, 2015 Sale Notice Publication Deadline -- June 10, 2015 Assumption and Assignment Objection Deadline -- June 10, 2014 Stalking Horse Bid Deadline -- June 22, 2015 Stalking Horse Designation Deadline -- July 8, 2015 Stalking Horse Objection Deadline -- July 14, 2015 Stalking Horse Reply Deadline -- July 17, 2015 Stalking Horse Hearing -- July 21, 2015 Stalking Horse Defect Notice Deadline -- August 3, 2015 Bid Deadline -- August 4, 2015 Deadline to Notify Qualified Bidders -- August 7, 2015 Auction -- August 11, 2015 Deadline to Publish Auction Results -- August 14, 2015 Sale Objection Deadline -- August 18, 2015 Sale Reply Deadline -- August 24, 2015 Sale Hearing -- August 25, 2015 The Bid Procedures Hearing is scheduled for May 20, 2015, at 3:00 p.m. The ad hoc committee of certain holders of the 12% Priority Notes due 2018 filed a statement and reservation of rights, saying that while the Ad Hoc Committee does not oppose the approval of the Bid Procedures in order to market the Assets and receive bids, it is not apparent at this time that a Sale Transaction would be a value maximizing transaction for the Debtor's estates. This process might ultimately not be in the best interests of the creditors of such estates, the Ad Hoc Committee argues. Daniel B. Butz, Esq., at Morris, Nichols, Arsht & Tunnel LLP, in Wilmington, Delaware, the Ad Hoc Committee's counsel, asserts that the panel's concerns with respect to the sale process arise, in part, from the improving commodity pricing environment that the Debtors and the oil and gas industry have experienced over recent months. In addition, the price of West Texas Intermediate crude oil and Henry Hub natural gas have shown signs of improvement recently, Mr. Butz tells the Court. Thus, it is not at this time clear to the Ad Hoc Committee that a sale of the Assets will be the optimal path forward compared to other restructuring alternatives for the Debtors, Mr. Butz asserts. The Debtors are represented by: Mark D. Collins, Esq. Zachary I. Shapiro, Esq. RICHARDS, LAYTON & FINGER, P.A. One Rodney Square 920 North King Street Wilmington, DE 19801 Tel: (302) 651-7700 Fax: (302) 651-7701 Email: collins@rlf.com shapiro@rlf.com -- and -- Gary T. Holtzer, Esq. Stephen A. Youngman, Esq. WEIL, GOTSHAL & MANGES LLP 767 Fifth Avenue New York, NY 10153 Tel: (212) 310-8000 Fax: (212) 310-8007 Email: gary.holtzer@weil.com stephen.youngman@weil.com The Ad Hoc Committee of Noteholders is represented by: Robert J. Dehney, Esq. Daniel B. Butz, Esq. MORRIS, NICHOLS, ARSHT & TUNNELL LLP 1201 North Market Street Wilmington, DE 19801 Tel: (302) 658-9200 Fax: (302) 658-3989 Email: rdehney@mnat.com dbutz@mnat.com -- and -- Dennis F. Dunne, Esq. Matthew S. Barr, Esq. Michael E. Comerford, Esq. MILBANK, TWEED, HADLEY & McCLOY LLP 1 Chase Manhattan Plaza New York, NY 10005 Tel: (212) 530-5000 Email: ddunne@milbank.com mbarr@milbank.com mcomerford@milbank.com 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. On April 29, 2015, the Debtor announced that, as a result of recent declines in oil and gas prices, the Company withdrew the proposed Plan. EPAZZ INC: Needs More Time to File Q1 Form 10-Q ----------------------------------------------- Epazz, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the quarter ended March 31, 2015. The Company said it was unable to file the subject report in a timely manner because it was not able to complete timely its financial statements without unreasonable effort or expense. About EPAZZ Inc. Chicago, Ill.-based EPAZZ, Inc., was incorporated in the State of Illinois on March 23, 2000, to create software to help college students organize their college information and resources. The idea behind the Company was that if the information and resources provided by colleges and universities was better organized and targeted toward each individual, the students would encounter a personal experience with the college or university that could lead to a lifetime relationship with the institution. This concept is already used by business software designed to retain relationships with clients, employees, vendors and partners. Epazz reported a net loss of $3.37 million on $750,100 of revenue for the year ended Dec. 31, 2013, as compared with a net loss of $1.90 million on $1.19 million of revenue for the year ended Dec. 31, 2012. As of Sept. 30, 2014, the Company had $2.38 million in total assets, $4.29 million in total liabilities and a $1.91 million total stockholders' deficit. M&K CPAS, PLLC, in Houston, Texas, 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 an accumulated deficit of $7.50 million and a working capital deficit of $1.28 million, which raises substantial doubt about its ability to continue as a going concern. Bankruptcy Warning The Company said in the 2013 Annual Report that it will need to raise additional funds to continue to operate as a going concern. "We cannot be certain that any such financing will be available on acceptable terms, or at all, and our failure to raise capital when needed could limit our ability to continue and expand our business. We intend to overcome the circumstances that impact our ability to remain a going concern through a combination of the commencement of additional revenues, of which there can be no assurance, with interim cash flow deficiencies being addressed through additional equity and debt financing. Our ability to obtain additional funding for the remainder of the 2014 year and thereafter will determine our ability to continue as a going concern. There can be no assurances that these plans for additional financing will be successful. Failure to secure additional financing in a timely manner to repay our obligations and supply us sufficient funds to continue our business operations and on favorable terms if and when needed in the future could have a material adverse effect on our financial performance, results of operations and stock price and require us to implement cost reduction initiatives and curtail operations. Furthermore, additional equity financing may be dilutive to the holders of our common stock, and debt financing, if available, may involve restrictive covenants, and strategic relationships, if necessary to raise additional funds, and may require that we relinquish valuable rights. In the event that we are unable to repay our current and long-term obligations as they come due, we could be forced to curtail or abandon our business operations, and/or file for bankruptcy protection; the result of which would likely be that our securities would decline in value and/or become worthless." ESCO MARINE: Taps AP Services to Handle Reorganization ------------------------------------------------------ Steve Clark at Valley Morning Star reports that ESCO Marine, Inc., hired AP Services LLC, a crisis management firm that handled General Motor's massive restructuring after the auto maker filed for bankruptcy in 2009. According to the Company's motion filed with the U.S. Bankruptcy Court for the Southern District of Texas on April 29, 2015, sought the Bankruptcy Court's approval to hire AP Services and to designate a chief restructuring officer. The Company, in a motion filed with the Bankruptcy Court on April 23, 2015, sought authorization to obtain debtor-in-possession financing. About ESCO Marine ESCO Marine, Inc., and four affiliates sought Chapter 11 bankruptcy protection in Corpus Christi, Texas (Bankr. S.D. Tex.) on March 7, 2015. ESCO Marine disclosed $28.8 million in assets and $35.5 million in debt as of Jan. 31, 2015. The cases are assigned to Judge Richard S. Schmidt. The Debtors filed an emergency motion seeking joint administration of their Chapter 11 cases, requesting to designate as the "main case" the proceedings of ESCO Marine, Inc., Case No. 15-20107. ESCO Metals, LLC, ESCO Shredding, LLC, Texas Best Recycling, LLC, and Texas Best Equipment LLC are affiliates of ESCO Marine. ESCO Marine is the operating parent company. The Debtors have tapped Roderick Glen Ayers, Jr., Esq., at Langley Banack Inc., in San Antonio, as counsel. ESP RESOURCES: Delays First Quarter Form 10-Q --------------------------------------------- ESP Resources, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the quarter ended March 31, 2015. "The compilation, dissemination and review of the information required to be presented in the Form 10-Q for the period ending March 31, 2015 could not be completed and filed by the prescribed due date without undue hardship and expense to the registrant. The registrant anticipates it will file such report no later than five days after its original prescribed due date," the Company states in the regulatory filing. About ESP Resources The Woodlands, Texas-based ESP Resources, Inc., through its subsidiaries, manufactures, blends, distributes and markets specialty chemicals and analytical services to the oil and gas industry and also provides services for the upstream, midstream and downstream sectors of the energy industry, including new construction, major modifications to operational support for onshore and offshore production, gathering, refining facilities and pipelines designed to optimize performance and increase operators' return on investment. ESP Resources reported a net loss of $2.06 million on $11.91 million of net sales for the year ended Dec. 31, 2014, compared to a net loss of $5.23 million on $10.59 million of net sales in 2013. As of Dec. 31, 2014, the Company had $5.78 million in total assets, $10.3 million in total liabilities, and a $4.53 million total stockholders' deficit. Turner, Stone & Company, LLP, in Dallas, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred net losses through Dec. 31, 2014, and has a working capital deficit as of Dec. 31, 2014. These conditions raise substantial doubt about the Company's ability to continue as a going concern. ETRADE FINANCIAL: S&P Puts 'BB-' ICR on CreditWatch Positive ------------------------------------------------------------ Standard & Poor's Ratings Services said it placed its 'BB-' issuer credit and senior unsecured debt ratings on E*TRADE Financial Corp. (E*Trade) on CreditWatch with positive implications. At the same time, S&P placed its 'BB+/B' long- and short-term issuer credit ratings on E*TRADE Bank on CreditWatch positive. "We placed the ratings on CreditWatch positive to reflect further easing of regulatory restrictions on the firm, including the recent lifting of E*TRADE Bank's MOU with its regulator, the Office of the Comptroller of the Currency," said Standard & Poor's credit analyst Bob Hoban. "We believe the lifting of the MOU is an important milestone in E*Trade's recovery and efforts to normalize its regulatory status, but the firm remains under material regulatory restrictions." These include restrictions on capital and liquidity, which constrain the rating, including regulatory approval required for all dividends from E*TRADE Bank, and the need to maintain a 9% Tier I ratio at the bank. To resolve the CreditWatch, S&P will meet with management and assess the firm's capital and liquidity plans and regulatory developments. S&P anticipates that material improvement in the regulatory restrictions will likely lead S&P to upgrade E*Trade by at least one notch given that its liquidity coverage metric is currently a strong 430%. However, any upgrade will be driven by S&P's view of the sustainability of risk-adjusted capital (RAC) and liquidity adequacy over the next year and a half given S&P's expectation of rising credit costs from home equity line of credit (HELOC) loans starting to fully amortize in the third quarter. Should S&P believes the firm's capital or liquidity would be drawn down, such that, under its loss expections, its RAC ratio would be vulnerable to falling below 10% and its liquidity coverage metric below 110%, S&P would affirm ratings. EURAMAX HOLDINGS: Reports $31.4 Million Net Loss in First Quarter ----------------------------------------------------------------- Euramax Holdings, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $31.4 million on $186 million of net sales for the three months ended April 3, 2015, compared to a net loss of $19.3 million on $170 million of net sales for the three months ended March 28, 2014. As of April 3, 2015, Euramax had $529 million in total assets, $733 million in total liabilities and a $204 million total shareholders' deficit. As of April 3, 2015, the Company had cash and cash equivalents of $1.9 million. Net cash used in operating activities was $32.5 million for the three months ended April 3, 2015, compared to net cash used in operating activities of $3.9 million for the three months ended March 28, 2014. As of April 3, 2015, the Company had $59.8 million outstanding and availability of $10.2 million under its ABL Credit Facility and $14.2 million outstanding and availability of $2.3 million on our Dutch Revolving Credit Facility. Hugh Sawyer, interim president, commented, "The Company's Adjusted EBITDA for the first quarter of 2015, excluding a $1.1 million negative impact of foreign currency exchange and a $1.2 million one-time impact as the result of a customer bankruptcy in the UK, improved $4.5 million, or 102.3%, over the first quarter of 2014. This represents the Company's fourth consecutive quarter of improvement in net sales, operating income and Adjusted EBITDA versus the corresponding prior year quarter. The Company believes that, among other factors, this significant improvement has been substantially driven by the ongoing execution of transformative initiatives implemented during the second half of 2014." Mr. Sawyer added, "We believe that the cost saving initiatives related to procurement, logistics and headcount could ultimately yield an additional annualized aggregate benefit that we currently estimate to be in the range of $15-20 million in the next 12-18 months. The substantial elements of the estimated $15-20 million improvement relate to modifications in the design and execution of our Procurement and Logistics programs. These changes to our former practices were largely implemented during the last few quarters and we anticipate that these discreet and identified cost savings will begin flowing thru to Adjusted EBITDA over the course of 2015." A full-text copy of the Form 10-Q is available for free at: http://is.gd/LHmWG8 About Euramax Based in Norcross, Georgia, Euramax International, Inc., is a leading international producer of aluminum, steel, vinyl and fiberglass products for original equipment manufacturers, distributors, contractors and home centers in North America and Western Europe. The Company was acquired for $1 billion in 2005 by management and Goldman Sachs Capital Partners. Euramax Int'l has subsidiaries in Canada (Euramax Canada, Inc.), United Kingdom (Ellbee Limited and Euramax Coated Products Limited), and The Netherlands (Euramax Coated Products B.V.), and France (Euramax Industries S.A.). Euramax reported a net loss of $59.27 million in 2014, a net loss of $24.89 million in 2013 and a net loss of $36.76 million in 2012. Bankruptcy Warning "...[A]approximately $500 million of our outstanding indebtedness, under the Notes and the Senior Unsecured Loan Facility, is currently scheduled to mature between April 1 and October 1, 2016. Under the terms of our ABL Credit Facility, we are required to obtain an extension of the maturity of the debt that matures in 2016 to a date that is at least 90 days after March 1, 2018, which is the scheduled maturity date of the ABL Credit Facility. In the event that we do not refinance the debt or obtain such an extension on or before December 31, 2015, then the maturity date for our ABL Credit Facility will accelerate to January 31, 2016. Accordingly, we must complete a refinancing of those debt facilities and/or enter into an amendment to the terms of the Notes and the Senior Unsecured Loan Facility prior to the end of 2015. In order to do so, we must negotiate satisfactory agreements with the holders of the Notes and the lenders under the Senior Unsecured Loan Facility and/or obtain equity or debt financing on terms that are acceptable to the Company. There can be no assurance that the holders of the Notes or the lenders under the Senior Unsecured Loan Facility will agree to any such amendments or there can be no assurance that we can complete a refinancing prior to December 31, 2015, or that the terms of any such equity or debt financing would be acceptable to the Company. In the event that we are unable to obtain such amendments or extensions, or complete such refinancing, the Company would need to explore other alternatives, which could include a potential restructuring or reorganization under the bankruptcy laws," the Company states in its 2014 annual report. * * * As reported by the TCR on Dec. 13, 2012, Moody's Investors Service downgraded Euramax International, Inc.'s corporate family rating and probability of default rating to Caa2 from Caa1. The downgrade reflects Moody's expectation that the turmoil in global financial markets and weakness in Europe will continue to hamper Euramax's revenues and operating margins as well as weaken key credit metrics. As reported by the TCR on July 30, 2009, Standard & Poor's Ratings Services raised its ratings on Norcross, Georgia-based Euramax International Inc., including the long-term corporate credit rating, to 'B-' from 'D'. "The ratings upgrade reflects the company's highly leveraged, although somewhat improved, financial risk profile following a recent out-of-court restructuring," said Standard & Poor's credit analyst Dan Picciotto. "As a result of the restructuring, Euramax's second-lien debtholders received equity and about half of its new $513 million of first-lien debt is pay-in-kind, providing some cash flow benefit," he continued. EVANS & SUTHERLAND: Posts $103,000 Net Income in First Quarter -------------------------------------------------------------- Evans & Sutherland Computer Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $103,000 on $8 million of sales for the three months ended April 3, 2015, compared to a net loss of $551,000 on $6.67 million of sales for the three months ended March 28, 2014. As of April 3, 2015, the Company had $26.74 million in total assets, $57.13 million in total liabilities and a $30.39 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/caDKrM About Evans & Sutherland Salt Lake City, Utah-based Evans & Sutherland Computer Corporation in conjunction with its wholly owned subsidiary, Spitz Inc., creates innovative digital planetarium systems and cutting-edge, fulldome show content. E&S has developed Digistar 5, the world's leading digital planetarium with fulldome video playback, real- time computer graphics, and a complete 3D digital astronomy package fully integrated into a single theater system. This technology allows audiences to be immersed in full-color, 3D computer-generated interactive worlds. As a full-service system provider, E&S also offers Spitz domes, hybrid planetarium systems integrated with Digistar and a full range of theater systems from audio and lighting to theater automation. E&S markets include planetariums, science centers, themed attraction venues, and premium large-format theaters. E&S products have been installed in over 1,300 theaters worldwide. Evans & Sutherland reported a net loss of $1.30 million on $26.5 million of sales for the year ended Dec. 31, 2014, compared with net income of $1.17 million on $29.6 million of sales for the same period in 2013. FINJAN HOLDINGS: Provides 1st Quarter Shareholder Update -------------------------------------------------------- Finjan Holdings, Inc., provided an update and highlights for the first quarter ended March 31, 2015, as well as other subsequent events. Strategic Highlights: * Reported approximately $15 million in cash with an additional $3 million to be received from existing license agreements over the next 12 months * Expecting early returns on its investment in Jerusalem Venture Partners Fund VII, Cyber Strategic Partners. * Entered into a license agreement, subsequent to the first quarter with F-Secure Corporation, which requires F-Secure to pay Finjan $1 million * Began the development of new mobile security applications to protect consumer data and information Establishing a new cybersecurity consulting service business "In the first quarter of 2015 we focused our attention on furthering our licensing and litigation programs as well as realizing returns on our early investments," commented, Phil Hartstein, president and CEO of Finjan. "We will be re-investing those returns into new opportunities, including mobile security applications and a new cybersecurity focused consulting service business. We expect to accomplish these new investments with out significantly impacting our cash position, within existing budget forecasts, and without distraction from our core operations." First Quarter Licensing and Litigation Review Finjan has an active Markman Hearing schedule with two Markman Hearings already concluded in favor of the Company and two additional Markman Hearings to be held in the second quarter of 2015. The company has a two-week trial against Blue Coat set to commence on July 20th, 2015 with Blue Coat. Subsequent to the quarter end, Finjan entered into a negotiated License Agreement with F-Secure Corporation, a company incorporated in Finland. The Agreement provides for F-Secure to pay Finjan the sum of $1,000,000 in cash, to be paid in two installments, consisting of $700,000 which was received on April 22, 2015, and $300,000 on or before March 31, 2016. The Agreement also provides for the assignment by F-Secure to Finjan of two patents, U.S. Patent Nos. 8,474,048 and 7,749,991. Finjan has patent infringement lawsuits against FireEye, BlueCoat, Proofpoint, Sophos, Symantec, and Palo Alto Networks relating to, collectively, more than 20 patents in the Finjan portfolio. The court dockets for the foregoing cases are publicly available on the Public Access to Court Electronic Records (PACER) Web site, www.pacer.gov, which is operated by the Administrative Office of the U.S. Courts. JVP Cyber Strategic Partners Update Finjan's investment in JVP Cyber Strategic Partners has had a successful exit of one of the portfolio companies, CyActive. As recently reported by JVP, CyActive was sold to PayPal for approximately $60 million with a commitment by PayPal to build a center for cybersecurity excellence in Israel, which will further develop the technology. CyActive's technology is focused on next generation predictive analytics for enhanced cybersecurity protection. Finjan expects to receive a distribution from its JVP investment. Other investors in JVP Cyber Strategic Partners include Cisco, Qihoo 360 and Alibaba. Cybersecurity Mobile Applications Finjan was previously bound to a non-compete exclusion for products or services in the cybersecurity space as a result of its 2008 divestiture of its hardware business. As of March that exclusion expired and Finjan initiated a software development program focused on securing data on mobile devices. Currently, the company is developing two applications for mobile devices and is sponsoring a Mobile Defense Challenge with eight Universities to identify a next generation focus. Cybersecurity Consulting Services Finjan plans to launch a cybersecurity focused services business around identifying, managing, and mitigating cyber security related risks across technology, retail, and financial services companies. The services will range from highly technical advanced attack and penetration services, maturity modeling of security operating centers, and cyber risk quantification and governance for board level consideration. Generally these services will be targeted at the segment between the "Server Room and the Board Room." About Finjan Finjan, formerly known as Converted Organics, is a leading online security and technology company which owns a portfolio of patents, related to software that proactively detects malicious code and thereby protects end-users from identity and data theft, spyware, malware, phishing, trojans and other online threats. Founded in 1997, Finjan is one of the first companies to develop and patent technology and software that is capable of detecting previously unknown and emerging threats on a real-time, behavior-based basis, in contrast to signature-based methods of intercepting only known threats to computers, which were previously standard in the online security industry. Finjan reported a net loss of $10.47 million on $4.99 million of revenues for the year ended Dec. 31, 2014, compared to a net loss of $6.07 million on $0 of revenues in 2013. As of March 31, 2015, the Company had $16.5 million in total assets, $2.19 million in total liabilities, and $14.3 million in total stockholders' equity. FIVE S PLUS: Files Schedules of Assets and Liabilities ------------------------------------------------------ Five S Plus, LLC, filed its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $11,340,000 B. Personal Property $130,150 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $ 3,438,415 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $87,242 ----------- ----------- TOTAL $11,470,150 $3,525,657 A copy of the schedules of assets and liabilities and the statement of financial affairs is available for free at: http://bankrupt.com/misc/FIVE_S_PLUS_SAL.pdf About Five S Plus Five S Plus, LLC, doing business as River Rouge Plantation of Louisiana, commenced a Chapter 11 bankruptcy case (Bankr. W.D. La. Case No. 15-80398) on April 10, 2015, in Alexandria, Louisiana, without stating a reason. Aaron L. Slayter, Jr., signed the petition as managing member. The case is assigned to Judge Henley A. Hunter. Laramie Henry, Esq., serves as counsel to the Debtor. Five S Plus -- http://www.fivesplus.com/-- owns the River Rouge Plantation, a 5,000-acre property located on the banks of the Red River, stretching from Boyce to Colfax, Louisiana. From then until now, the property has been used for cattle to graze, farming, and recreation. This property, formerly called Mead Plantation, or Meadland, dates back to the early 1800s, when it was owned by Joshua R. Mead and his family. The land changed hands several times, and in 2003, the farm was purchased by the Slayter family, owners of Five S Plus cattle company. FLETCHER INTERNATIONAL: Administrative Bar Date Moved to May 29 --------------------------------------------------------------- The Hon. Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York extended the administrative bar date until May 29, 2015 at 5:00 p.m. Eastern time for the Soundview Parties pursuant to the confirmation order for the second amended plan of liquidation for Fletcher International Ltd. The Soundview Debtors comprised of Soundview Elite Ltd., Soundview Premium, Ltd., Soundview Star Ltd.; Elite Designated; Premium Designated; and Star Designated. Soundview Parties are Soundview Debtors and the Soundview Trustee. Corinne Ball serves as Chapter 11 trustee for the Soundview Debtors. Veerle Roovers, Esq., partner at Jones Day, represents the Soundview Trustee. Ms. Roover can be reached at: Veerle Rovers, Esq. Jones Day 222 East 41st Street New York, NY 10017-6702 Tel +1.212.326.3945 Fax: +1.212.755.7306 Email: vroovers@jonesday.com The effective date of the Plan occurred on April 7, 2014. About Fletcher International Fletcher International, Ltd., filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-12796) on June 29, 2012, in Manhattan. The Bermuda exempted company estimated assets and debts of $10 million to $50 million. The bankruptcy documents were signed by its president and director, Floyd Saunders. David R. Hurst, Esq., at Young Conaway Stargatt & Taylor, LLP, in New York, serves as counsel and Appleby (Bermuda) Limited serves as special Bermuda counsel. The Debtor disclosed $52,163,709 in assets and $22,997,848 in liabilities as of the Chapter 11 filing. Fletcher International Ltd. was managed by the investment firm of Alphonse "Buddy" Fletcher Jr. Fletcher Asset Management was founded in 1991. During its initial four years, FAM operated as a broker dealer trading various debt and equity securities and making long-term equity investments. Then, in 1995, FAM began creating and managing a family of private investment funds. The Debtor is a master fund in the Fletcher Fund structure. As a master fund, it engages in proprietary trading of various financial instruments, including complex, long-term, illiquid investments. The Debtor is directly owned by Fletcher Income Arbitrage Fund and Fletcher International Inc., which own roughly 83% and 17% of the Debtor's common shares, respectively. Arbitrage's direct parent entities are Fletcher Fixed Income Alpha Fund and FIA Leveraged Fund, both of which are incorporated in the Cayman Islands and are subject to liquidation proceedings in that jurisdiction, and which own roughly 76% and 22% of Arbitrage's common stock, respectively. The Debtor currently has a single subsidiary, The Aesop Fund Ltd. After filing for Chapter 11 protection, Fletcher immediately started a lawsuit in bankruptcy court to stop the involuntary bankruptcy in Bermuda. Judge Gerber at least temporarily halted liquidators appointed in the Cayman Islands from moving ahead with proceedings in Bermuda. The lawsuit to halt the Bermuda liquidation is Fletcher International Ltd. v. Fletcher Income Arbitrage Fund, 12-01740, in the same court. Richard J. Davis, Chapter 11 trustee appointed in the case, has hired Michael Luskin, Esq., Lucia T. Chapman, Esq., and Stephanie E. Hornung, Esq., at Luskin, Stern & Eisler LLP as his counsel. The Chapter 11 trustee filed a proposed liquidating Plan in November 2013. The disclosure statement was approved on Jan. 17, 2014. Judge Gerber has confirmed the Second Amended Plan of Liquidation late in March 2014. FOUNDATION HEALTHCARE: Files First Quarter Form 10-Q ---------------------------------------------------- Foundation Healthcare, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company's common stock of $1.33 million on $29.5 million of revenues for the three months ended March 31, 2015, compared to a net loss attributable to the Company's common stock of $1.89 million on $21.5 million of revenues for the same period last year. As of March 31, 2015, the Company had $58.13 million in total assets, $66.3 million in total liabilities, $8.7 million in preferred noncontrolling interest and a $16.9 million total deficit. "Generally our liquidity and capital resource needs are funded from operations, loan proceeds, equity offerings and more recently, lease and other real estate financing transactions. As of March 31, 2015, our liquidity and capital resources included cash and cash equivalents of 3.5 million and working capital of $1.2 million. We have a working capital deficit of $0.6 million after adjusting for $1.7 million of redemption payments due to preferred noncontrolling interest holders during the remainder of 2015. As of December 31, 2014, our liquidity and capital resources included cash and cash equivalents of $2.9 million and a working capital deficit of $0.2 million (adjusted for $1.7 million of redemption payments due to preferred interest holders during 2015)," the Company said in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/NQzms6 About Foundation Healthcare Oklahoma-based Foundation Healthcare is a healthcare services company primarily focused on owning controlling interests in surgical hospitals and the inclusion of ancillary service lines. The Company currently owns controlling and noncontrolling interests in surgical hospitals located in Texas. The Company also owns noncontrolling interests in ambulatory surgery centers ("ASCs") located in Texas, Oklahoma, Pennsylvania, New Jersey, Maryland and Ohio. Additionally, the Company provides sleep testing management services to various rural hospitals in Iowa, Minnesota, Missouri, Nebraska and South Dakota under management contracts with the hospitals. The Company provides management services to a majority of its Affiliates under the terms of various management agreements. Prior to Dec. 2, 2013, the Company's name was Graymark Healthcare, Inc. Foundation Healthcare reported a net loss attributable to the Company common stock of $2.09 million on $101.9 million of revenues for the year ended Dec. 31, 2014, compared to a net loss attributable to the Company common stock of $20.4 million on $87.2 million of revenues in 2013. Hein & Associates LLP, in Denver, Colorado, issued a "going concern" opinion in its report on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company had insufficient working capital as of Dec. 31, 2014 to fund anticipated working capital needs over the next twelve months. FOUR OAKS: Files First Quarter Form 10-Q ---------------------------------------- Four Oaks Fincorp, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $978,000 on $7.46 million of total interest and dividend income for the three months ended March 31, 2015, compared to net income of $1.35 million on $7.26 million of total interest and dividend income for the same period in 2014. As of March 31, 2015, Four Oaks had $767 million in total assets, $725 million in total liabilities and $42.4 million in total shareholders' equity. Management believes that the Company's liquidity sources are adequate to meet its operating needs for the next eighteen months. Supplementing customer deposits as a source of funding, the Company has available lines of credit from various correspondent banks to purchase federal funds on a short-term basis of approximately $19 million that remains unused at March 31, 2015. As of March 31, 2015, the Company has the credit capacity to borrow up to $153.4 million from the FHLB with $90.0 million outstanding. A full-text copy of the Form 10-Q is available for free at: http://is.gd/7RardD About Four Oaks Four Oaks Bank & Trust Company is a state chartered bank headquartered in Four Oaks, North Carolina, where it was chartered in 1912. The wholly-owned subsidiary of Four Oaks Fincorp, Inc., the single bank holding company trading under the symbol FOFN on the OTCQX Marketplace, the Bank had $820.8 million in assets as of Dec. 31, 2014. The Bank presently operates thirteen branches located in Four Oaks, Clayton, Garner, Smithfield, Benson, Fuquay-Varina, Holly Springs, Wallace, Harrells, Zebulon, Dunn and Raleigh and loan production offices in Southern Pines and in Raleigh, North Carolina. Four Oaks Fincorp reported a net loss of $4.18 million in 2014, a net loss of $350,000 in 2013, a net loss of $6.96 million in 2012 and a net loss of $9.09 million in 2011. As of Dec. 31, 2014, the Company had $821 million in total assets, $780 million in total liabilities and $40.7 million in total shareholders' equity. Written Agreement In late May 2011, the Company and the Bank entered into a Written Agreement with the Federal Reserve Bank of Richmond and the North Carolina Commissioner of Banks. Under the terms of the Written Agreement, the Bank developed and submitted for approval, within the time periods specified, plans to: * revise lending and credit administration policies and procedures at the Bank and provide relevant training * enhance the Bank's real estate appraisal policies and procedures * enhance the Bank's loan grading and independent loan review programs * improve the Bank's position with respect to loans, relationships, or other assets in excess of $750,000, which are now or in the future become past due more than 90 days, are on the Bank's problem loan list, or adversely classified in any report of examination of the Bank, and * review and revise the Bank's current policy regarding the Bank's allowance for loan and lease losses and maintain a program for the maintenance of an adequate allowance. FRAC SPECIALISTS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Frac Specialists, LLC 15-41974 P. O. Box 11342 Midland, TX 79702 Cement Specialists, LLC 15-41975 Acid Specialists, LLC 15-41976 Type of Business: Oilfield Service Provider Chapter 11 Petition Date: May 17, 2015 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: Hon. D. Michael Lynn Debtors' Counsel: Lynda L. Lankford, Esq. FORSHEY & PROSTOK, LLP 777 Main Street, Ste. 1290 Fort Worth, TX 76102 Tel: (817) 878-2022 Fax: (817) 877-4151 Email: llankford@forsheyprostok.com - and - Jeff P. Prostok, Esq. FORSHEY & PROSTOK, LLP 777 Main St., Suite 1290 Ft. Worth, TX 76102 Tel: 817-877-8855 Email: jpp@forsheyprostok.com Estimated Assets: $50 million to $100 million Estimated Debts: $50 million to $100 million The petition was signed by Larry P. Noble, manager. List of Frac Specialists' 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Pel-State Services Trade Debt $879,903 PO Box 95386 Grapevine, TX 76099 Dragon Products, Ltd. Trade Debt $868,993 PO Box 3127 Beaumont, TX 77704-3127 Chemplex Advanced Materials, LLC Trade Debt $708,367 PO Box 203576 Dallas, TX 75320-3576 L&O Xtreme Hauling, LLC Trade Debt $467,174 PO Box 1191 Midland, TX 79702 TSI Flow Products Trade Debt $347,022 TSI-Accounting BO Box 38709 Houston, TX 77238 Forum Flow Equipment Trade Debt $343,437 Forum US, Inc. PO Box 203440 Dallas, TX 75320-3440 IV Kings Trade Debt $339,065 PO box 216 Andrews, TX 79714 ASK Industries, Inc. Trade Debt $336,831 Community National Bank PO Box 1191 Midland, TX 79702 Warren Cat Trade Debt $250,000 Cat Commercial Accounts PO Box 905229 Charlotte, NC 28290-5229 Economy Polymers & Chemicals Trade Debt $188,821 Energy & Environmental Services Trade Debt $150,667 Kendrick Oil Co. Trade Debt $134,560 Soil Mender Products, LP Trade Debt $65,818 Catalyst Oilfield Services Trade Debt $53,386 Sun Coast Resources, Inc. Trade Debt $47,951 Precision Hydraulic Technology Trade Debt $44,445 Inc. Texas Department of Transporation Trade Debt $36,971 Diamond Fleet Parts Trade Debt $34,549 L & W Diesel Service Trade Debt $33,676 WadeCo Specialties, LLC Trade Debt $33,222 FRAC SPECIALISTS: Permian Basin Services Providers in Chapter 11 ---------------------------------------------------------------- Frac Specialists, LLC, Cement Specialists, LLC, and Acid Specialists, LLC, have sought bankruptcy protection after the substantial dramatic decrease in activity at the Permian Basin affected its cash flow. The Companies though believe that the U.S. oil industry is again on the rise and expect to be able to file a reorganization plan. The Companies are affiliated with Noble Natural Resources, LLC, which is not part of the bankruptcy filing. The Companies currently operate exclusively in the Permian Basin, which is considered one of the most prolific oil plays in the United States and has become increasingly more attractive for large oil and gas drillers. As of April 2015, the Permian Basin is the largest oil producing basin and the fourth largest gas producing basin in the United States at 1,981 Mbbls/day and 6,437 MMcf/day, respectively. Acid Specialists was founded in 2008 and provides acid and related chemical pressure pumping services to enhance and maintain production, typically in older, existing oil and gas wells. Acid Specialists currently has nine pumps, sixteen acid transports and a highly loyal and skilled team of operators. Acid Specialists owns the original 11.59 acre yard and office/shop facilities in Midland, Texas. Cement Specialists was founded in late 2010 and provides a complete range of cementing services including remedial work, squeeze jobs, production, intermediate and surface casing, liners and plug and abandonment services. Cement Specialists currently has four single pump cementers and three double pump cementers, along with ten bulk trailers, two field bins and other support equipment. In April 2013, Cement Specialists completed the construction of its state of the art cement plant that is located towards the rear of Acid Specialist's yard. Frac Specialists was founded in late 2011 and provides energized fluid fracs, slick water fracs, cross-linked fracs and gelled water fracs. Frac Specialists expanded steadily throughout 2012, 2013, and 2014 and is capable of pumping any frac design currently used in the Permian Basin. Its equipment is almost all late model (most of it purchased within the last two years), and can be divided into either two complete horizontal zipper frac crews (21 pumps each), or as many as four vertical frac crews (10 pumps each). Frac Specialists owns a 28 acre yard across the street from Acid Specialist's yard that has 4,000,000 tons of sand storage, along with 130,000 gallons of HCL acid storage, and a second facility in Snyder, Texas that consists of 22 acres in an industrial area that has rail access. Frac Specialists also leases a 30,000,000 ton sand storage facility with full rail unloading capabilities in Kress, Texas. Since 2011, the Companies have grown from $17.1mm and $6.6mm in revenue and EBITDA, respectively, to $204.1 million and $6.8 million in revenue and EBITDA, respectively, in 2014. However, the dramatic decrease in U.S. oilfield service intensity starting in December 2014 caused profit margins and net cash flow to drop dramatically in the 1st quarter of 2015. The Companies believe that activity levels have hit bottom and are again on the rise. The Companies are aggressively cutting operating expenses, becoming more efficient during the downturn, and believes their profitability will return as these internal changes are implemented and the overall oil industry activity increases. Due to heavy investments in capital assets and a subsequent decline in drilling operations in the Permian Basin, the Companies are now seeking the benefit of a Chapter 11 reorganization to create efficiencies, reorganize their debt and capital leases, and leverage their existing relationships and infrastructure to grow revenue and profits as the market improves. Capital One Debt The Debtors are obligated to Capital One, N.A. pursuant to that certain Revolving Loan Promissory Note dated Sept. 19, 2014 providing Debtors with a revolving borrowing facility of up to $25 million. As of the Petition Date, the outstanding balance under the Note was approximately $7 million. Since January 2015, the Debtors have reduced their collective secured debt to the Bank from about $22 million to $7 million. Nevertheless, the Bank insisted that the Debtors pledge additional collateral to secure the indebtedness. The Debtors became concerned that the Bank intended to offset funds in the Debtors' operating accounts if the Debtors did not agree to pledge additional collateral to the Bank. These bankruptcy cases were filed in part as a preventative measure to preserve all assets, including working capital, for the benefit of all creditors and to provide the Debtors with sufficient cash reserves to successfully reorganize. First Day Motions The Debtors on the Petition Date filed a motion to jointly administer their Chapter 11 cases, as well as a motion to use cash collateral. About Frac Specialists Frac Specialists, LLC, Cement Specialists, LLC, and Acid Specialists, LLC, sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Lead Case No. 15-41974) in Ft. Worth, Texas, on May 17, 2015. The Companies are oilfield service providers serving the exploration and production industry within the Permian Basin. Noble Natural Resources, LLC, Javier Urias and Alex Hinojos collectively own 100% of the membership interests in the Companies. The Debtors tapped Lynda L. Lankford, Esq., and Jeff P. Prostok, Esq., at Forshey & Prostok, LLP, as counsel. FRAC SPECIALISTS: Seeks to Use Cash Collateral ---------------------------------------------- Frac Specialists, LLC, Cement Specialists, LLC, and Acid Specialists, LLC, ask the U.S. Bankruptcy Court for the Northern District of Texas to enter interim and final orders authorizing the use of cash collateral. The Debtors are obligated to Capital One, N.A., pursuant to a Revolving Loan Promissory Note dated Sept. 19, 2014, providing the Debtors with a revolving borrowing facility of up to $25 million. As of the Petition Date, the outstanding balance under the Note was $7 million. The Note is subject to the terms of a Loan and Security Agreement between the Bank and Debtors dated as of Sept. 19, 2014. As provided in the Loan Agreement, the Note is secured by the Debtors' accounts, deposit accounts, and proceeds, all as defined therein. Accordingly, the Bank likely asserts a security interest in certain of the Debtors' cash and cash equivalents on hand as of the Petition Date. The Debtors estimate that, as of the Petition Date, they held cash deposits in various bank accounts totaling $5 million and held receivables of $6 million. As such, there exists significant equity in the prepetition collateral over and above the Bank's claim of $7 million. Accordingly, the Bank is adequately protected by its Prepetition Collateral. Nevertheless, to the extent of any diminution in value in the Bank's cash collateral occasioned by the Debtors' use of the cash collateral, the Debtors propose to grant the Bank replacement liens in cash generated postpetition. Jeff P. Prostok, Esq., at Forshey & Prostok, L.L.P., avers that the Companies have no material source of income other than from their operations and the collection of their accounts receivable. At the present time, an immediate and critical need exists for the Companies to be permitted access to funds in order to continue the operation of their businesses, to pay their employees, and to protect their ability to reorganize in accordance with chapter 11 of the Bankruptcy Code. About Frac Specialists Frac Specialists, LLC, Cement Specialists, LLC, and Acid Specialists, LLC, sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Lead Case No. 15-41974) in Ft. Worth, Texas, on May 17, 2015. The Companies are oilfield service providers serving the exploration and production industry within the Permian Basin. Noble Natural Resources, LLC, Javier Urias and Alex Hinojos collectively own 100% of the membership interests in the Companies. The Debtors tapped Lynda L. Lankford, Esq., and Jeff P. Prostok, Esq., at Forshey & Prostok, LLP, as counsel. FUEL PERFORMANCE: Posts $471,000 Net Loss in First Quarter ---------------------------------------------------------- Fuel Performance Solutions, Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $471,000 on $134,000 of net revenues for the three months ended March 31, 2015, compared to net income of $1.33 million on $374,000 of net revenue for the same period in 2014. As of March 31, 2015, the Company had $2.69 million in total assets, $3.09 million in total liabilities and a $392,000 total stockholders' deficit. Working capital deficit at March 31, 2015, was $1.87 million, as compared to $826,000 at Dec. 31, 2014. The negative working capital balance for March 31, 2015, is negatively impacted by the reclassification of the convertible note related items from long term to current liabilities during the first quarter of 2015 and a net $(319,000) impact of the deferred financing cost asset and the derivative liability recorded as March 31, 2015. The negative working capital balance for Dec. 31, 2014, is negatively impacted by the net $(330,000) impact of the deferred financing cost asset and the derivative liability recorded as of Dec. 31, 2014. A full-text copy of the Form 10-Q is available for free at: http://is.gd/kGVUhj About Fuel Performance Fuel Performance Solutions, Inc., was incorporated in Nevada on April 9, 1996, by a team of individuals who sought to address the challenges of reducing harmful emissions while at the same time improving the operating performance of internal combustion engines, especially with respect to fuel economy and engine cleanliness. After the Company's incorporation, its initial focus was product research and development, but over the past few years, the Company's efforts have been directed to commercializing its product slate, primarily DiesoLiFTTM and the PerfoLiFTTM BD- Series, for use with diesel fuel and bio-diesel fuel blends, by focusing on marketing, sales and distribution efforts in conjunction with our distribution partners. On Feb. 5, 2014, the Company changed its name from International Fuel Technology, Inc., to Fuel Performance Solutions, Inc. Fuel Performance reported a net loss of $1.65 million on $1.72 million of net revenues for the year ended Dec. 31, 2014, compared with a net loss of $1.39 million on $704,000 of net revenues for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $3.32 million in total assets, $3.28 million in total liabilities, and $40,800 in total stockholders' equity. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, noting that the Company has suffered recurring loss from operations and has a working capital deficit. This factor, the auditors said, raises substantial doubt about the Company's ability to continue as a going concern. FUSION TELECOMMUNICATIONS: Posts $4.68 Million Net Loss in Q1 ------------------------------------------------------------- Fusion Telecommunications International, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $4.68 million on $25.3 million of revenues for the three months ended March 31, 2015, compared to net income attributable to common stockholders of $999,700 on $22.9 million of revenues for the same period last year. As of March 31, 2015, the Company had $71.2 million in total assets, $62.0 million in total liabilities and $9.19 million in total stockholders' equity. "Since our inception, we have incurred significant net losses. In addition, we have only recently begun to generate positive cash flow from operations. At March 31, 2015, we had working capital of approximately $1.0 million and stockholders’ equity of $9.2 million. At December 31, 2014, we had working capital of $2.1 million and stockholders' equity of approximately $13.3 million. Our consolidated cash balance at March 31, 2015 was $5.4 million as compared to $6.4 million at December 31, 2014. While we believe that we have sufficient cash to fund our operations and meet our operating and debt obligations for the next twelve months, we may be required to raise additional capital to support our business plan. There are no current commitments for such funds and there can be no assurances that such funds will be available to the Company as and when needed," the Company states in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/eCiLtc About Fusion Telecommunications New York City-based Fusion Telecommunications International, Inc., (OTC BB: FSNN) is a provider of Internet Protocol ("IP") based digital voice and data communications services to corporations and carriers worldwide. Fusion incurred a net loss applicable to common shareholders of $4.31 million in 2014, a net loss applicable to common shareholders of $5.48 million in 2013 and a net loss applicable to common stockholders of $5.61 million in 2012. GENERAL MOTORS: Does Not Owe UAW Retirees, Appeals Court Rules -------------------------------------------------------------- Greg Gardner at Detroit Free Press reports that a three-judge panel of the 6th U.S. Circuit Court of Appeals in Cincinnati upheld a lower court ruling that General Motors does not have to make a $450 million contribution to the United Auto Workers trust responsible for healthcare covering union members who retired from the Company's former parts unit. Daniel Wiessner at Reuters relates that the the UAW claimed in the dismissed lawsuit that the Company was required to pay $450 million to cover medical benefits for an affiliate's retirees. According to Free Press, the court found that the Company assumed the healthcare obligations of Delphi Corp., its one-time parts division that was spun off into a separate company in 1999. Free Press relates that the UAW later agreed in the Company's 2009 bankruptcy to free GM from that responsibility. Free Press states that the UAW did not provide a comment as to whether it will appeal the case to the U.S. Supreme Court. 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. GENERAL STEEL: Incurs $74.1 Million Net Loss in First Quarter ------------------------------------------------------------- General Steel Holdings, Inc., reported a net loss of $74.1 million on $271 million of sales for the three months ended March 31, 2015, compared with a net loss of $69.6 million on $512 million of sales for the same period in 2014. As of March 31, 2015, the Company had $2.5 billion in total assets, $3.14 billion in total liabilities and a $636.9 million total deficiency. John Chen, chief financial officer of General Steel, commented, "Facing macro-environment challenges for steel operations, we continue to focus on those factors that we can control, including management of our operating expenses and working capital, closely aligning with SOEs and local government for financial support, and continuing to optimize our upgraded manufacturing equipment. As we march forward with our business transformation strategy, we will allocate capital and human resources into our RFID joint venture, as well as unlocking hidden value in our land reserves in an effort to drive greater value for our shareholders." Henry Yu, chairman and chief executive officer of General Steel commented, "The first quarter of 2015 was very tough for China's iron and steel industry, as the combination of the government's stricter environmental enforcement and a slowdown in demand sharply pressured average selling price and profitability. The average price of rebar encountered a steep double-digit sequential decline during the first quarter to the lowest price level in 13 years. Correspondingly, we reduced production volume to preserve working capital, and we took the opportunity to temporarily shut down in the second half of the first quarter in order to perform maintenance on our production equipment." As of March 31, 2015, the Company had cash and restricted cash of approximately $260 million, compared to $367 million as of Dec. 31, 2014. The Company had an inventory balance of $148 million as of March 31, 2015, compared to $156 million as of Dec. 31, 2014. A full-text copy of the press release is available for free at: http://is.gd/WkffTQ About General Steel Holdings General Steel Holdings, Inc., headquartered in Beijing, China, produces a variety of steel products including rebar, high-speed wire and spiral-weld pipe. General Steel -- http://www.gshi-steel.com/-- has operations in China's Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality with seven million metric tons of crude steel production capacity under management. General Steel reported a net loss of $78.3 million on $1.9 billion of sales for the year ended Dec. 31, 2014, compared with a net loss of $42.6 million on $2 billion of sales for the year ended Dec. 31, 2013. Friedman LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has an accumulated deficit, has incurred a gross loss from operations, and has a working capital deficiency at Dec. 31, 2014. These conditions raise substantial doubt about the Company's ability to continue as a going concern. GENIUS BRANDS: Reports $636,000 Net Loss in First Quarter --------------------------------------------------------- Genius Brands International, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $636,000 on $297,000 of total revenues for the three months ended March 31, 2015, compared with a net loss of $854,000 on $176,000 of total revenues for the same period last year. As of March 31, 2015, the Company had $17.5 million in total assets, $4.44 million in total liabilities and $13.09 million in total equity. Historically, the Company has incurred net losses. As of March 31, 2015, the Company had an accumulated deficit of $21.8 million and a total stockholders' equity of $13.1 million. At March 31, 2015, the Company had current assets of $4.62 million, including cash of $3.96 million and current liabilities of $2.38 million, including short-term debt to related parties which bears no interest and has no stated maturity of $411,000 and certain trade payables of $925,000 to which the Company disputes the claim, resulting in working capital of $2.25 million. For the three months ended March 31, 2015, and 2014, the Company reported a net loss of $636,000 and $854,000, respectively, and reported net cash used by operating activities during three months ended March 31, 2015 of $914,000. During the three months ended March 31, 2015, the Company received $750,000 in proceeds from the second payment of its long term supply chain services agreement. While the Company believes that these funds plus its working capital will be sufficient to fund operations for the next twelve months, there can be no assurance that cash flows from operations will continue to improve in the near future. If the Company is unable to attain profitable operations and positive operating cash flows in a reasonable period of time, it may need to (i) seek additional funding, (ii) scale back its development plans, or (iii) reduce certain operations. A full-text copy of the Form 10-Q is available for free at: http://is.gd/zMzYgi On May 14, 2015, Genius Brands distributed a letter to its shareholders, a copy of which is available for free at: http://is.gd/oMuu6L About Genius Brands San Diego, Calif.-based Genius Brands International, Inc., creates and distributes music-based products which it believes are entertaining, educational and beneficial to the well-being of infants and young children under its brands, including Baby Genius and Little Genius. Genius Brands reported a net loss of $3.72 million in 2014, a net loss of $7.21 million in 2013, a net loss of $2.06 million in 2012 and a net loss of $1.37 million in 2011. GEORGETOWN MOBILE: Section 341 Meeting Scheduled for June 10 ------------------------------------------------------------ A meeting of creditors in the bankruptcy case of Georgetown Mobile Estates, LLC, has been scheduled for June 10, 2015, at 11:00 a.m. at US Trustee Hearing Room 529, Lexington. 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. About Georgetown Mobile Estates Georgetown Mobile Estates, LLC, is a Kentucky corporation with headquarters in Georgetown, Scott County, Kentucky. Originally incorporated on Jan. 23, 2006, the Company operates a mobile home park in three areas on the county line of Scott and Fayette, Kentucky. The park can take up to 504 customers and, historically, had an occupancy rate of 92%. Georgetown Mobile Estates filed a Chapter 11 bankruptcy petition (Bankr. E.D. Ky. Case No. 15-50945) in Lexington, Kentucky, on May 11, 2015, to take back control of the mobile home park from a receiver. Daniel E. Sexton, the present owner, signed the petition. The bankruptcy case is assigned to Judge Tracey N. Wise. The Debtor estimated $10 million to $50 million in assets and debt. The Debtor tapped Bunch & Brock of Lexington, Kentucky, as counsel; Randy Reynolds of Magnum Capital Consultants, LLC, as financial advisor; Bradford Burgess of The Thayer Group as financial advisor; and Glen Dellavalle of Dellavalle Management Group as manager of business operations. GOLDEN COUNTY FOODS: Frozen Foods Provider Enters Chapter 11 ------------------------------------------------------------ Golden County Foods, Inc., sought bankruptcy protection (Bankr. D. Del. Case No. 15-11062) in Delaware on May 15, 2015, without stating a reason. The Debtor estimated $10 million to $50 million in assets and debt. Founded in 1991 and based in Plover, Wisconsin, Golden County Foods, Inc. produces frozen appetizers and snacks on contract basis. The products include battered and breaded items, dips, entrees, fried potato products, sides, and twice baked/stuffed products. Its brands include the Snapps snacks and appetizers, and the IHOP at Home frozen breakfast products. Related entities GCF Holdings II, Inc., and GCF Holdings II, Inc., also sought bankruptcy protection. The Debtors tapped Neligan Folley LLP as bankruptcy counsel, and Richards, Layton & Finger, P.A., as local counsel. Dave Wiggins, chief executive officer, signed the bankruptcy petitions. GRASS VALLEY HOLDINGS: Files for Chapter 11 in Salt Lake City ------------------------------------------------------------- Grass Valley Holdings, L.P., commenced a Chapter 11 bankruptcy case (Bankr. D. Utah Case No. 15-24513) in Salt Lake City, Utah, on May 15, 2015, without stating a reason. The Debtor is in the business of acting as a holding company for real property located in Utah as well as an interest in real property located in Idaho Falls, Idaho. Its principal place of business is 940 South 2000 West, Springville, Utah. The Debtor estimated $10 million to $50 million in assets and debt. The case is assigned to Judge R. Kimball Mosier. The Debtor is represented by Gary E. Jubber, Esq., and Douglas J. Payne, Esq., at Fabian and Clendinin, in Salt Lake City. Randall Harward, a manager of Grass Valley Management, L.C., the general partner of the Debtor, signed the petition. GRASS VALLEY HOLDINGS: Proposes Fabian & Clendenin as Counsel ------------------------------------------------------------- Grass Valley Holdings, L.P., seeks approval from the U.S. Bankruptcy Court for the District of Utah to employ Fabian & Clendenin as its general bankruptcy counsel. F&C is a professional law corporation with offices in Salt Lake City, Utah and Las Vegas. F&C has substantial experience in bankruptcy law and Chapter 11 business reorganizations in the U.S. Bankruptcy Court for the District of Utah, and is familiar with the local rules of practice of such Court. The Debtor will pay the firm at its customary hourly rates, plus reimbursement of actual and necessary expenses. The Debtor paid F&C a prepetition retainer of $19,132. To the best of the Debtor's knowledge, F&C has no direct or indirect relationship to, connection with, or interest in the Debtor, any of the Debtor's creditors, any other party in interest, any of their respective attorneys and accountants, the U.S. Trustee, or any person employed in the office of the U.S. Trustee. About Grass Valley Based in Springville, Utah, Grass Valley Holdings, L.P., is a holding company for real property located in Utah as well as an interest in real property located in Idaho Falls, Idaho. Grass Valley Holdings commenced a Chapter 11 bankruptcy case (Bankr. D. Utah Case No. 15-24513) in Salt Lake City, Utah, on May 15, 2015. The Debtor estimated $10 million to $50 million in assets and debt. The case is assigned to Judge R. Kimball Mosier. The Debtor is represented by Gary E. Jubber, Esq., and Douglas J. Payne, Esq., at Fabian and Clendinin, in Salt Lake City. GRASS VALLEY: Case Summary & 13 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Grass Valley Holdings, L.P. 940 South 2000 West Springville, UT 84663 Case No.: 15-24513 Chapter 11 Petition Date: May 15, 2015 Court: United States Bankruptcy Court District of Utah (Salt Lake City) Judge: Hon. R. Kimball Mosier Debtor's Counsel: Gary E. Jubber, Esq. FABIAN AND CLENDENIN 215 South State Street, Suite 1200 Salt Lake City, UT 84111 Tel: (801) 531-8900 Fax: (801) 596-2814 Email: gjubber@fabianlaw.com - and - Douglas J. Payne, Esq. FABIAN & CLENDENIN 215 South State Street, Suite 1200 Salt Lake City, UT 84111-2323 Tel: (801) 531-8900 Fax: (801) 596-2814 Email: dpayne@fabianlaw.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Randall Harward, Manager of Grass Valley Management, L.C. List of Debtor's 13 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Coldwell Banker Commissions $3,479 City of Lehi Utility Bills $1,255 Durham Jones & Pinegar Attorney Services $25,000 Garth O. Green Unknown Garth O. Green Enterprises, Inc. Unknown GEMSA $1,955,822 929 Gessner Suite 1700 Houston, TX 77024 Intermountain Door $217 Janna Johnson Accounting $1,300 Michael Green Unknown Mountain America Credit Union 2007 Chevy $13,930 Silverado Springville City Utility Bills $2,254 Squire Accounting $16,298 Services Veracity $353 GUIDED THERAPEUTICS: Posts $1.2 Million Net Loss in First Quarter ----------------------------------------------------------------- Guided Therapeutics, Inc., announced its operating results for the first quarter ended March 31, 2015. Revenue and other income for the first quarter ended March 31, 2015, was approximately $142,000, including approximately $127,000 in sales of LuViva Advanced Cervical Scan devices and disposables. Related costs of sales and net realizable value expenses were approximately $107,000, which resulted in a gross profit on the device and disposables of approximately $20,000. Contract and grant income was $15,000 in the first quarter of 2015. Revenue for the quarter ended March 31, 2014, was comprised of product sales of approximately $122,000 and contract and grant income of approximately $19,000. The Company reported a gross loss of $70,000 in the year ago period. Research and development expenses decreased to $373,000 in the first quarter from $607,000 in the first quarter of 2014, primarily related to a reduction in staffing and a transition to product manufacturing. Sales and marketing expenses decreased to $172,000 in the first quarter, from $283,000 in the year ago period, due to the Company-wide expense reduction and cost savings efforts. General and administrative costs declined in the quarter to $963,000, down from $1.1 million in the same period last year, due to a continued focus on reducing operating expenses. The net loss attributable to common stockholders for the first quarter of 2015 was approximately $1.2 million, or $0.01 per share, compared to approximately $1.6 million, or $0.02 per share, in the first quarter of 2014. Cash on hand at March 31, 2015, was approximately $18,000, as compared to approximately $162,000 at Dec. 31, 2014. Net inventory on hand at the end of the quarter was approximately $1.1 million. After the quarter end, the Company entered into a subscription agreement to sell an aggregate of 4 million shares of its common stock and warrants to purchase an additional 2 million shares, for an aggregate purchase price of $720,000 in a private placement and, as of May 11, 2015, have closed on the entire $720,000. The Company continues to focus on keeping a reduced burn rate, which currently stands at approximately $400,000 per month, however, the Company will likely be required to raise additional funds through public or private financing, new collaborative relationships or grants, if available. "We continue to work with our distributors in key international screening markets to educate ministries of health and thought leaders on the benefits of LuViva as a front-line tool for the quick and easy detection of the disease that leads to cervical cancer," said Gene Cartwright, chief executive officer of Guided Therapeutics. "That work is beginning to bear fruit in the Middle East, Latin America and Africa. In Kenya, our distributor was recently awarded a contract with the Nairobi County Health Services Sector to supply the first LuViva Advanced Cervical Scan for the agency's cervical cancer screening program. The LuViva was delivered Tuesday of this week and the first patients have undergone scans. We believe this is the first step to what could be a very significant order for the company, as well as a lever to expand throughout Kenya and elsewhere in East Africa." "We also have high expectations in the coming weeks and months for Turkey, which remains our largest market to date. We expect to begin receiving reimbursement for LuViva as soon as this quarter, which has the potential to open up the entire Turkish market for us. Key opinion leaders throughout the country have lined up behind LuViva, and in addition to the Ministry of Health, where screening is now set to begin, we are also anticipating additional demand from private hospitals later this year." A full-text copy of the press release is available at: http://is.gd/lx7xUT About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. For the year ended Dec. 31, 2014, the Company reported a net loss attributable to common stockholders of $10.03 million on $65,000 of contract and grant revenue compared to a net loss attributable to common stockholders of $10.4 million on $820,000 of contract and grant revenue in 2013. As of Dec. 31, 2014, the Company had $3.03 million in total assets, $7.49 million in total liabilities, and a $4.46 million total stockholders' deficit. Bankruptcy Warning "The Company's capital-raising efforts are ongoing. If sufficient capital cannot be raised during the second quarter of 2015, the Company has plans to curtail operations by reducing discretionary spending and staffing levels, and attempting to operate by only pursuing activities for which it has external financial support and additional NCI, NHI or other grant funding. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection," the Company said in its annual report for the year ended Dec. 31, 2014. NCI stands for National Cancer Institute. HART OIL: Citizens Bank Committed Fraud, Liquidation Trustee Says ----------------------------------------------------------------- Marilyn Smelcer, the liquidation trustee for Hart Oil & Gas, Inc., filed an objection on May 5 to claims that Citizens Bank of Kilgore is owed more than $1 million from the sale of Hart Oil's assets due to a loan the bank made to the Company in June 2008, Steve Garrison at The Daily Times reports. According to The Daily Times, Ms. Smelcer claims that the Bank sold its $1 million loan to Palo Petroleum on Sept. 24, 2012, a day before the Company filed for Chapter 11 bankruptcy protection. The Bank has falsely claimed throughout the almost three and a half years of bankruptcy proceedings that it is a secured creditor, a violation of federal law, The Daily Times relates, citing Ms. Smelcer. The Daily Times states that Ms. Smelcer included with the objection a contract signed by Executive Vice President Kenneth Plunk, on behalf of the Bank. According to the report, the contract appears to show that the loan was assigned to Palo Petroleum on the date in question. The Daily Times reports that Nancy Cusack, Esq., at Hinkle Shanor LLC and Scott Ritcheson, Esq., at Ritcheson, Lauffer & Vincent are representing the Bank. About Hart Oil Hart Oil & Gas, Inc., based in Austin, Texas, filed for Chapter 11 (Bankr. D.N.M. Case No. 12-13558) on Sept. 25, 2012. Judge Robert H. Jacobvitz was first assigned to the case. William F. Davis, Esq. -- daviswf@nmbankruptcy.com -- at William F. Davis & Associates, P.C., serves as the Debtor's counsel. In its petition, the Debtor estimated $100,001 to $500,000 in assets, and $1 million to $10 million in debts. A list of the Company's 20 largest unsecured creditors filed with the petition is available for free at http://bankrupt.com/misc/nmb12-13558.pdf The petition was signed by Andrew Brian Saied, president. HCSB FINANCIAL: Posts $95,000 Net Loss in First Quarter ------------------------------------------------------- HCSB Financial Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss available to common shareholders of $95,000 on $3.34 million of total interest income for the three months ended March 31, 2015, compared to net income available to common shareholders of $95,000 on $4.13 million of total interest income for the same period a year ago. As of March 31, 2015, the Company had $425.1 million in total assets, $436 million in total liabilities and a $10.5 million total shareholders' deficit. Bankruptcy Warning "The Company has been deferring interest payments on its trust preferred securities since March 2011 and has deferred interest payments for 17 consecutive quarters. The Company is allowed to defer payments for up to 20 consecutive quarterly periods, although interest will also accrue and compound quarterly from the date such deferred interest would have been payable were it not for the extension period. All of the deferred interest, including interest accrued on such deferred interest, is due and payable at the end of the applicable deferral period, which is in March 2016. At March 31, 2015, total accrued interest equaled $759 thousand. If we are not able to raise a sufficient amount of additional capital, the Company will not be able to pay this interest when it becomes due and the Bank may be unable to remain in compliance with the Consent Order. In addition, the Company must first make interest payments under the subordinated notes, which are senior to the trust preferred securities. Even if the Company succeeds in raising capital, it will have to be released from the Written Agreement or obtain approval from the Federal Reserve Bank of Richmond to pay interest on the trust preferred securities. If this interest is not paid by March 2016, the Company will be in default under the terms of the indenture related to the trust preferred securities. If the Company fails to pay the deferred and compounded interest at the end of the deferral period the trustee or the holders of 25% of the aggregate trust preferred securities outstanding, by providing written notice to the Company, may declare the entire principal and unpaid interest amounts of the trust preferred securities immediately due and payable. The aggregate principal amount of these trust preferred securities is $6.0 million. The trust preferred securities are junior to the subordinated notes, so even if a default is declared the trust preferred securities cannot be repaid prior to repayment of the subordinated notes. However, if the trustee or the holders of the trust preferred securities declares a default under the trust preferred securities, the Company could be forced into involuntary bankruptcy," the Company warns in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/yDu4Tf About HCSB Financial Loris, South Carolina-based HCSB Financial Corporation was incorporated on June 10, 1999, to become a holding company for Horry County State Bank. The Bank is a state chartered bank which commenced operations on Jan. 4, 1988. From its 13 branch locations, the Bank offers a full range of deposit services, including checking accounts, savings accounts, certificates of deposit, money market accounts, and IRAs, as well as a broad range of non-deposit investment services. During the third quarter of 2011, the Bank closed its Covenant Towers branch located at Myrtle Beach. All deposits were transferred to the Bank's Myrtle Beach branch and the Bank does not expect any disruption of service in that market for its customers. HCSB Financial reported a net loss available to common shareholders of $1.4 million on $16.09 million of total interest income for the year ended Dec. 31, 2014, compared to net income available to common shareholders of $911,000 on $17.07 million of total interest income for the year ended Dec. 31, 2013. Elliott Davis Decosimo, LLC, in Columbia, South Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has suffered recurring losses that have eroded regulatory capital ratios and the Company's wholly owned subsidiary, Horry County State Bank, is under a regulatory Consent Order with the Federal Deposit Insurance Corporation that requires, among other provisions, capital ratios to be maintained at certain levels. As of Dec. 31, 2014, the Company's subsidiary is considered significantly undercapitalized based on its regulatory capital levels. These considerations raise substantial doubt about the Company's ability to continue as a going concern. The Company also has deferred interest payments on its junior subordinated debentures for 16 consecutive quarters as of Dec. 31, 2014. Under the terms of the debentures, the Company may defer payments for up to 20 consecutive quarters without creating a default. Payment for the 20th quarter interest deferral period will be due in March 2016. If the Company fails to pay the deferred and compounded interest at the end of the deferral period, the trustees of the corresponding trusts, would have the right, after any applicable grace period, to exercise various remedies, including demanding immediate payment in full of the entire outstanding principal amount of the debentures. The balance of the debentures and accrued interest as of December 31, 2014 were $6.19 million and $714,000, respectively. These events also raise substantial doubt about the Company's ability to continue as a going concern as of Dec. 31, 2014. HEALTHWAREHOUSE.COM INC: Posts 9.3% Sales Growth Qtr. Over Qtr. --------------------------------------------------------------- HealthWarehouse.com, Inc. announced financial results for the quarter ended March 31, 2015. For the quarter ended March 31, 2015, net sales improved to $1,612,676 up 9.3% from the prior quarter ended Dec. 31, 2014. Gross margin remained steady at 61% while net loss narrowed by 65.6% to ($200,788) from the quarter ended March 31, 2015, from ($582,340) for the quarter ended Dec. 31, 2014. For the quarter ended March 31, 2015, the Company reported adjusted EBITDAS of ($65,406), vs. adjusted EBITDAS of ($392,436) for the quarter ended Dec. 31, 2014, an improvement of 82.9%. The Company believes that adjusted EBITDAS (Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation), a non-GAAP financial measure, is useful in evaluating its operating performance compared to that of other companies in the Company's industry. "Our renewed focus to serve online consumers who pay out of pocket for their prescriptions has begun to show gains financially with core online prescription and over-the-counter (OTC) revenue growth and significantly reduced net losses. Moreover, evidence that we are providing a valuable service is shared daily in our customer reviews," said Mr. Lalit Dhadphale, president & CEO of HealthWarehouse.com. A customer recently shared the following review, "These guys are awesome! I've been dealing with HealthWarehouse.com for a good many years and have never been anything but satisfied. I take quite a bit of medication and their prices for generics have been even lower than my copay with my insurance when I had been working. Now that I'm on Medicare, I have a Part D plan for medication. Some generic drugs I take aren't even covered by the plan. So, I get them through HealthWarehouse.com. Reasonable prices, quick delivery, exceptional customer service." 1st Quarter 2015 Highlights: Net Sales: Increased by $137,421 or 9.3% compared to the 4th Quarter of 2014, due to increased advertising activity, specifically with Google. Gross Profit: Increased by $75,498 or 8.3% compared to the 4th Quarter of 2014 due to the sales growth while holding margins steady at 61% . SG&A Expenses: Declined by $576,756 or 34.2% compared to the 4th Quarter of 2014, primarily due to reductions in stock based compensation, litigation settlement and legal expenses. Net Loss: Declined by $381,552 or 65.5% compared to the 4th Quarter of 2014 as a result of the increased net sales and reduced operating expenses. About HealthWarehouse.com HealthWarehouse.com, Inc., headquartered in Florence, Kentucky, is a U.S. licensed virtual retail pharmacy ("VRP") and healthcare e-commerce company that sells brand name and generic prescription drugs as well as over-the-counter medical products. Healthwarehouse.com reported a net loss attributable to common stockholders of $2.08 million on $6.12 million of net sales for the year ended Dec. 31, 2014, compared with a net loss attributable to common stockholders of $7.3 million on $10.23 million of net sales in 2013. Marcum LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of March 31, 2015, the Company had $1.39 million in total assets, $4.87 million in total liabilities, and a $3.48 million total stockholders' deficiency. Bankruptcy Warning "The Company recognizes it will need to raise additional capital in order to fund operations, meet its payment obligations and execute its business plan. There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, attempt to extend note repayments, attempt to negotiate the preferred stock redemption and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. If the Company is unable to obtain financing on a timely basis, the Company could be forced to sell its assets, discontinue its operation and /or seek reorganization under the U.S. bankruptcy code," the Company states in the report. HNO GREEN FUELS: Case Summary & 10 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: HNO Green Fuels, Inc. 42309 Winchester Road, Suite E Temecula, CA 92590 Case No.: 15-14946 Chapter 11 Petition Date: May 16, 2015 Court: United States Bankruptcy Court Central District of California (Riverside) Judge: Hon. Mark D. Houle Debtor's Counsel: Eve H Karasik, Esq. LEVENE, NEALE, BENDER, YOO & BRILL L.L.P. 10250 Constellation Blvd., Ste. 1700 Los Angeles, CA 90067 Tel: 310-229-1234 Fax: 310-229-1244 Email: ehk@lnbyb.com Estimated Assets: $50 million to $100 million Estimated Debts: $1 million to $10 million The petition was signed by Donald Owens, chief executive officer. List of Debtor's 10 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Brundidge and Stanger $110,000 Image Statistics $20,000 Allstate Insurance $2,700 Hossein Haririnia, CPA, LLC $2,500 John Young Design, Inc. $1,200 Verizon Wireless $1,000 Titan Insurance Company $1,000 Falcon West Insurance Brokers $970 Rapid Sheet Metal $503 Southern California Edison $300 HNO GREEN FUELS: Schedules and Statements Due June 1 ---------------------------------------------------- HNO Green Fuels, Inc., sought Chapter 11 protection (Bankr. C.D. Cal. Case No. 15-14946) in Riverside, California, on May 16, 2015. The Debtor estimated $50 million to $100 million in assets and $1 million to $10 million in debt. According to the docket, the official schedules of assets and liabilities, as well as the statement of financial affairs, are due June 1, 2015. The Debtor tapped Levene, Neale, Bender, Yoo & Brill L.L.P, as counsel. I.E.C. RENTALS: Shareholders Wants Case Converted to Chap. 7 ------------------------------------------------------------ Ivy Jean Nebus, a creditor and shareholder of I.E.C. Rentals, Inc., filed a motion asking the U.S. Bankruptcy Court for the Middle District of Florida, Fort Meyers Division, to convert IEC's Chapter 11 case to a case under Chapter 7 of the Bankruptcy Code. According to Ms. Nebus' counsel, Robert A. Cooper, Esq., at Hahn Loeser & Parks LLP, in Fort Meyers, Florida, cause exists for the conversion of the Debtor's Chapter 11 bankruptcy case to a case under Chapter 7. Mr. Cooper states that IEC meets all three of the criteria provided under Section 1112 on what constitutes "cause" for the conversion to a Chapter 7 case: (1) the inability or refusal to pay the judgment entered in favor of Leigh Hanson, Inc., suggests that IEC continues to experience losses; (2) as the State Court found, the management of IEC has been, at the very least incompetent and certainly has mismanaged IEC's affairs; and (3) IEC cannot demonstrate that it has maintained insurance on its assets, including at least one motor vehicle. Ms. Nebus is represented by: Robert A. Cooper, Esq. HAHN LOESER & PARKS LLP 2400 First Street, Suite 300 Fort Myers, FL 33901 Tel: 239-337-6700 Fax: 239-337-6701 Email: racooper@hahnlaw.com About I.E.C. Rentals I.E.C. Rentals, Inc., sought Chapter 11 protection (Bankr. M.D. Fla. Case No. 15-02491) in Ft. Myers, Florida, on March 12, 2015, without stating a reason. Naples, Florida-based I.E.C. Rentals estimated $10 million to $50 million in assets and less than $10 million in debt. According to the docket, the Chapter 11 plan and disclosure statement are due by July 10, 2015. Robert E. Cadenhead signed the petition as director. The Debtor is represented by Joey M Grant, Esq., at Marshall Socarras Grant, in Boca Raton, Florida, as counsel. INTEGRATED BIOPHARMA: Posts $106,000 Net Loss in Third Quarter -------------------------------------------------------------- Integrated Biopharma, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $106,000 on $9.67 million of net sales for the three months ended March 31, 2015, compared to a net loss of $450,000 on $7.52 million of net sales for the same period last year. For the nine months ended March 31, 2015, the Company reported net income of $845,000 on $28.5 million of net sales compared to net income of $245,000 on $25.5 million of net sales for the same period in 2014. As of March 31, 2015, the Company had $12.4 million in total assets, $21.7 million in total liabilities and a $9.3 million total stockholders' deficiency. A full-text copy of the Form 10-Q is available for free at: http://is.gd/qH4qHG About Integrated BioPharma Based in Hillside, N.J., Integrated BioPharma, Inc. (INBP.OB) -- -- http://www.healthproductscorp.us/-- is engaged primarily in manufacturing, distributing, marketing and sales of vitamins, nutritional supplements and herbal products. The Company's customers are located primarily in the United States. The Company was previously known as Integrated Health Technologies, Inc., and, prior to that, as Chem International, Inc. The Company was reincorporated in its current form in Delaware in 1995. The Company continues to do business as Chem International, Inc., with certain of its customers and certain vendors. Integrated Biopharma reported net income of $131,000 for the year ended June 30, 2014, compared to net income of $93,000 for the year ended June 30, 2013. INTERLEUKIN GENETICS: Incurs $1.84-Mil. Net Loss in First Quarter ----------------------------------------------------------------- Interleukin Genetics, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.84 million on $403,000 of total revenue for the three months ended March 31, 2015, compared with a net loss of $1.66 million on $488,000 of total revenue for the same period last year. As of March 31, 2015, the Company had $11.5 million in total assets, $8.66 million in total liabilities, and $2.82 million in total stockholders' equity. The Company has experienced net operating losses since its inception through March 31, 2015. The Company had net losses of $6.3 million and $7.1 million for the years ended Dec. 31, 2014, and 2013, respectively, and $1.8 million for the three months ended March 31, 2015, contributing to an accumulated deficit of $122.9 million as of March 31, 2015. The Company continues to take steps to reduce genetic test processing costs. Cost savings are primarily achieved through test process improvements. Management believes that the current laboratory space is adequate to process high volumes of genetic tests. "The amount of cash we generate from operations is currently not sufficient to continue to fund operations and grow our business. We expect that our current and anticipated financial resources will be adequate to maintain our current and planned operations for at least the next 12 months. If we are unable to obtain funding from our current or new investors, we may have to end our operations and seek protection under bankruptcy laws," the Company warns in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/7gUi29 About Interleukin Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized health company that develops unique genetic tests to provide information to better manage health and specific health risks. Grant Thornton LLP, in Boston, Massachusetts, issued a "going concern" qualification in its report on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred recurring losses from operations and has an accumulated deficit that raise substantial doubt about the Company's ability to continue as a going concern. KLM OPTICAL: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: KLM Optical, Inc. dba Pearle Vision 1085 Northern Blvd Roslyn, NY 11576 Case No.: 15-72145 Chapter 11 Petition Date: May 15, 2015 Court: United States Bankruptcy Court Eastern District of New York (Central Islip) Judge: Hon. Robert E. Grossman Debtor's Counsel: J. Logan Rappaport, Esq. PRYOR & MANDELUP, L.L.P. 675 Old Country Road Westbury, NY 11590 Tel: (516) 997-0999 Fax: (516) 333-7333 Email: lr@pryormandelup.com Total Assets: $319,046 Total Liabilities: $1.83 million The petition was signed by Wayne Kelly, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nyeb15-72145.pdf LEHMAN BROTHERS: Curacao Unit to Finalize Bankruptcy Proceedings ---------------------------------------------------------------- With the final cash distribution to be executed on May 19, 2015, Lehman Brothers Securities N.V. in Curacao (Dutch Caribbean) will be one of the first Lehman Brothers companies worldwide to finalize its bankruptcy proceedings. The final cash distribution to the creditors will be made by bankruptcy trustee Michiel Gorsira of law firm VanEps Kunneman VanDoorne. Following the worldwide collapse of Lehman Brothers in September 2008 in New York, Lehman Brothers Securities N.V. in Curacao was declared bankrupt by the Curacao bankruptcy court in January 2009. The main activity of LBS was the issuance of complex financial structured products -- warrants and certificates. At the time of the bankruptcy LBS had only USD 400 on its local bank account. Mr. Gorsira, who co-led the international team of advisors together with co-trustee Robert van Beemen: "In January 2009, we had no funding and insufficient access to information and documents. Six and a half years later, we have settled intercompany claims of more than USD11 billion, valued the LBS derivative portfolio of 332 securities at approximately USD 900 million, and have paid out more than a USD1 billion to its creditors." In the summer of 2014, the first discussions with creditors and market participants took place to determine whether the remaining intercompany receivables against other Lehman companies could be sold, in order to make one final cash distribution. These intercompany receivables varied from USD1.2 million to USD5.2 billion. Eventually, the claims were sold in April and the final cash distribution will be made on May 19, 2015. Mr. Gorsira: "Although the settlement of the Lehman bankruptcy will continue in New York, London, Hong Kong and various other jurisdictions, with the final cash distribution to be made next week, the Curacao LBS bankruptcy comes to an end." About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. As of Oct. 2, 2014, Lehman's total distributions to unsecured creditors have amounted to $92.0 billion. As of Sept. 30, 2014, the brokerage trustee has substantially completed customer claims distributions, distributing more than $106 billion to 111,000 customers. LSI RETAIL II: Court Approves Hiring of Mountain High as Broker --------------------------------------------------------------- LSI Retail II, LLC sought and obtained permission from the U.S. Bankruptcy court for the District of Colorado to employ Mountain High Real Estate Advisors, Inc. as brokerage firm for the estate. The Debtor requires Mountain High to sell the Debtor's real property located at 8355 N. Rampart Range Road, Littleton, CO 80125 ("Real Property"). The Debtor and Mountain High have agreed upon a listing price of $15,750,000. Mountain High said that the firm is well qualified to provide the services upon which it is being employed and the sales commission for which it will be compensated is reasonable and similar to those commissions being charged by other brokers for similar services. Rob Galanis, broker of Mountain High, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Mountain High can be reached at: Rob Galanis MOUNTAIN HIGH REAL ESTATE ADVISORS, INC. 1100 East 6600 South, Suite 100 Salt Lake City, UT 84121 About LSI Retail II, LLC LSI Retail II, LLC filed a Chapter 11 bankruptcy petition (Bank. D. Colo. Case No. 15-13375) on April 2, 2015. Alan R. Fishman signed the petition as president of manager Sunset Management Services. The Debtor estimated assets and debts of $10 million to $50 million. Jeffrey Weinman, Esq., at Weinman & Associates, P.C., serves as the Debtor's counsel. The case has been reassigned to Judge Michael E. Romero from Judge Sidney B. Brooks. LSI RETAIL II: Court OKs Allen & Vellone as Special Counsel ----------------------------------------------------------- LSI Retail II, LLC sought and obtained permission from the U.S. Bankruptcy court for the District of Colorado to employ Allen & Vellone, P.C. as special counsel, nunc pro tunc to April 2, 2015. The Debtor requires Allen & Vellone to act as special counsel to to assist the Debtor in this case and specifically to represent the Debtor in connection with contested matters which may require an evidentiary hearing and/or adversary litigation arising in this case, including any matters arising under 11 U.S.C. sections 544, 547, 548 and 549. Allen & Vellone will be paid at these hourly rates: Patrick D. Vellone $425 Matthew M. Wolf $315 Mark A. Larson $265 Tatiana G. Popacondria $195 Nicole M. Detweiler $185 Paralegal $130 Allen & Vellone will also be reimbursed for reasonable out-of-pocket expenses incurred. Patrick D. Vellone, partner of Allen & Vellone, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Allen & Vellone can be reached at: Patrick D. Vellone, Esq. ALLEN & VELLONE, P.C. 1600 Stout Street, Suite 1100 Denver, CO 80202 Tel: (303) 534-4499 Fax: (303) 893-8332 E-mail: pvellone@allen-vellone.com About LSI Retail II, LLC LSI Retail II, LLC filed a Chapter 11 bankruptcy petition (Bank. D. Colo. Case No. 15-13375) on April 2, 2015. Alan R. Fishman signed the petition as president of manager Sunset Management Services. The Debtor estimated assets and debts of $10 million to $50 million. Jeffrey Weinman, Esq., at Weinman & Associates, P.C., serves as the Debtor's counsel. The case has been reassigned to Judge Michael E. Romero from Judge Sidney B. Brooks. LSI RETAIL II: Hires Fox Rothschild as Special Counsel ------------------------------------------------------ LSI Retail II, LLC seeks authorization from the U.S. Bankruptcy court for the District of Colorado to employ Fox Rothschild, LLP as special counsel, nunc pro tunc to April 2, 2015. The Debtor requires Fox Rothschild to to represent it in connection with the sale of the Debtor's real property located at 8351-8361 N. Rampart Range Road, Littleton, Colorado 80125 and 1.2 acres of undeveloped land located on Waterton Canyon Road, Douglas County, Colorado ("Real Property"). The Debtor wishes to retain the services of Fox Rothschild to provide legal counsel and representation with respect to the sale of the Real Property. Fox Rothschild has assisted the Debtor with its sale of the Real Property to SUSO 4 Roxborough, LP for $15,618,000. The Debtor needs further representation in connection with its sale of the Real Property. Fox Rothschild provided pre-petition services to the Debtor and has continued to represent the Debtor since the Debtor filed its Chapter 11 petition. Such services have been both necessary and beneficial to the Debtor with respect to the sale of the Real Property. The Debtor needs continued representation with respect to this matter. All fees and expenses associated with Fox Rothschild's retention and services will be paid by the Debtor's Chapter 11 estate only upon approval by the Court after a request made in accordance with the requirements of the United States Bankruptcy Code and applicable rules. Fox Rothschild is owed for pre-petition legal services in the approximate amount of $28,456. Rick Rubin, partner of Fox Rothschild, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Fox Rothschild can be reached at: Rick Rubin, Esq. FOX ROTHSCHILD, LLP 1225 17th Street, Suite 2200 Denver, CO 80202 Tel: (303) 383-7620 About LSI Retail II, LLC LSI Retail II, LLC filed a Chapter 11 bankruptcy petition (Bank. D. Colo. Case No. 15-13375) on April 2, 2015. Alan R. Fishman signed the petition as president of manager Sunset Management Services. The Debtor estimated assets and debts of $10 million to $50 million. Jeffrey Weinman, Esq., at Weinman & Associates, P.C., serves as the Debtor's counsel. The case has been reassigned to Judge Michael E. Romero from Judge Sidney B. Brooks. MAGNETATION LLC: Creditors Object to DIP, Cash Use Request ---------------------------------------------------------- VFS Leasing Co.; Scheck Industrial Corporation; Caterpillar Financial Services Corporation and Progress Rail Leasing Corporation; and Allete, Inc., d/b/a Minnesota Power; object to Magnetation, LLC, et al.'s request to obtain postpetition financing and use cash collateral. According to VFS Leasing, an equipment lease creditor of Debtors Magnetation, LLC and Mag Mining, LLC, with more than $7.0 million of current/future lease payments at risk, the DIP Financing Motion is wholly insufficient to establish that "adequate protection" will be provided to VFS Leasing for Debtors' use of its equipment collateral. VFS Leasing complains that Exhibit C to Debtors' DIP Financing Motion is markedly deficient in that it does not identify the equipment lease creditors included in the category of "Mobile Equipment Lease - Various" and does not identify the amount of adequate protection that would be provided to each lease creditor. Scheck, a national turnkey Industrial Contractor, with core construction expertie in numerous industries including the manufacturing, energy and chemical industries, owed $3,953,089, complains that the Debtors have not offered to provide any form of adequate protection to Scheck. Accordingly, Scheck asks the Court not to authorize the Debtors to grant a senior security interest or lien on the property that is subject to Scheck's mechanic's lien. CFSC and PRL complain that it is unclear whether the budgeted amounts for "equipment" are adequate to satisfy the Debtors' obligations to CFSC, PRL, and other equipment lessors. While CFSC and PRL support the Debtors' reorganization efforts, because of the confusion caused by the "Rail Car Lease - CAT" line item, and in order to preserve their rights, CFSC and PRL filed the response to seek clarification on the record that the Debtors intend to make full monthly payments under the Master Leases and the Miscellaneous Equipment Leases. VFS Leasing is represented by: Caren W. Stanley, Esq. VOGEL LAW FIRM 218 NP Avenue PO Box 1389 Fargo, ND 58107 Tel: (701) 237-6983 Email: cstanley@vogellaw.com Scheck is represented by: Phillip Bohl, Esq., GRAY, PLANT, MOOTY, MOOTY & BENNETT, P.A. 500 IDS Center 80 South Eighth Street Minneapolis, MN 55402 Tel: (612) 632-3000 Fax: (612) 632-4400 Email: Phillip.Bohl@gpmlaw.com CFSC and PRL are represented by: Monica Clark, Esq. Elizabeth A. Hulsebos, Esq. DORSEY & WHITNEY LLP 50 South Sixth Street, Suite 1500 Minneapolis, MN 55402-1498 Tel: (612) 340-2600 Email: clark.marilyn@dorsey.com hulsebos.elizabeth@dorsey.com About Magnetation LLC Magnetation LLC -- http://www.magnetation.com/-- is a joint venture between Magnetation, Inc. (50.1% owner) and AK Iron Resources, LLC, an affiliate of AK Steel Corporation (49.9% owner). Magnetation LLC recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Magnetation LLC owns iron ore concentrate plants located in Keewatin, MN, Bovey, MN and Grand Rapids, MN, and an iron ore pellet plant in Reynolds, IN. Magnetation LLC and four subsidiaries sought Chapter 11 bankruptcy protection (Bankr. D. Minn. Lead Case No. 15-50307) in Duluth, Minnesota, on May 5, 2015, after reaching a deal with secured noteholders on a balance sheet restructuring. The cases are assigned to Chief Judge Gregory F Kishel. The Debtors have tapped Davis Polk & Wardwell LLP and Lapp, Libra, Thomson, Stoebner & Pusch, Chtd., as attorneys; Blackstone Advisory Partners LP as financial advisor; and Donlin, Recano & Company, Inc., as the claims agent. The Debtor's exclusive period for filing a plan and disclosure statement ends Sept. 2, 2015. MARINA BIOTECH: Obtains $400,000 Milestone Payment From Mirna ------------------------------------------------------------- Marina Biotech, Inc., entered into an amendment No. 2 to the license agreement effective as of Dec. 22, 2011, with Mirna Therapeutics, Inc., pursuant to which Mirna agreed to make a pre-payment to the Company in the amount of $400,000 in full and complete satisfaction of the milestone payment that would otherwise have been payable to the Company upon the date the first patient is dosed in the first Phase 2 trial for a licensed product containing or incorporating Mirna's proprietary compound miR-34. The payment was received by the Company on May 12, 2015. A copy of Amendment No. 2 is available for free at http://is.gd/Vym3HC About Marina Biotech Marina Biotech, Inc., headquartered in Bothell, Washington, is a biotechnology company focused on the discovery, development and commercialization of nucleic acid-based therapies utilizing gene silencing approaches such as RNA interference ("RNAi") and blocking messenger RNA ("mRNA") translation. The Company's goal is to improve human health through the development, either through its own efforts or those of its collaboration partners and licensees, of these nucleic acid-based therapeutics as well as the delivery technologies that together provide superior treatment options for patients. The Company has multiple proprietary technologies integrated into a broad nucleic acid-based drug discovery platform, with the capability to deliver novel nucleic acid-based therapeutics via systemic, local and oral administration to target a wide range of human diseases, based on the unique characteristics of the cells and organs involved in each disease. On June 1, 2012, the Company announced that, due to its financial condition, it had implemented a furlough of approximately 90% of its employees and ceased substantially all day-to-day operations. Since that time substantially all of the furloughed employees have been terminated. As of Sept. 30, 2012, the Company had approximately 11 remaining employees, including all of its executive officers, all of whom are either furloughed or working on reduced salary. As a result, since June 1, 2012, its internal research and development efforts have been minimal, pending receipt of adequate funding. Marina Biotech reported a net loss of $6.47 million on $500,000 of license and other revenue for the year ended Dec. 31, 2014, compared to a net loss of $1.57 million on $2.11 million of license and other revenue in 2013. As of March 31, 2015, the Company had $8.04 million in total assets, $11.69 million in total liabilities and a $3.65 million total stockholders' deficit. Wolf & Company, P.C., in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing the Company has suffered recurring losses from operations, has a significant accumulated deficit and has been unable to raise sufficient capital to fund its operations through the end of 2015. This raises substantial doubt about the Company's ability to continue as a going concern, the auditors noted. MARINA BIOTECH: Reports $414,000 Net Income in First Quarter ------------------------------------------------------------ Marina Biotech, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income applicable to common stockholders of $414,000 for the three months ended March 31, 2015, compared to a net loss applicable to common stockholders of $15.07 million for the same period last year. As of March 31, 2015, the Company had $8.04 million in total assets, $11.69 million in total liabilities and a $3.65 million total stockholders' deficit. "With the milestone payment we recently received from Mirna, we have improved our cash position allowing us to continue to move our corporate initiatives forward," stated J. Michael French, president & CEO of Marina Biotech. "We are focused on advancing our clinical and preclinical programs as well as bringing in additional capital through near-term licensing and collaboration transactions." At March 31, 2015, the Company had cash of $1.2 million and assets totaling $8 million, compared to cash of $5.5 million, and assets totaling $12.4 million at March 31, 2014. At March 31, 2015, the Company had an accumulated deficit of approximately $337 million, $112 million of which has been accumulated since we focused on RNA therapeutics in June 2008. A full-text copy of the Form 10-Q is available for free at: http://is.gd/iPqNEY About Marina Biotech Marina Biotech, Inc., headquartered in Bothell, Washington, is a biotechnology company focused on the discovery, development and commercialization of nucleic acid-based therapies utilizing gene silencing approaches such as RNA interference ("RNAi") and blocking messenger RNA ("mRNA") translation. The Company's goal is to improve human health through the development, either through its own efforts or those of its collaboration partners and licensees, of these nucleic acid-based therapeutics as well as the delivery technologies that together provide superior treatment options for patients. The Company has multiple proprietary technologies integrated into a broad nucleic acid-based drug discovery platform, with the capability to deliver novel nucleic acid-based therapeutics via systemic, local and oral administration to target a wide range of human diseases, based on the unique characteristics of the cells and organs involved in each disease. On June 1, 2012, the Company announced that, due to its financial condition, it had implemented a furlough of approximately 90% of its employees and ceased substantially all day-to-day operations. Since that time substantially all of the furloughed employees have been terminated. As of Sept. 30, 2012, the Company had approximately 11 remaining employees, including all of its executive officers, all of whom are either furloughed or working on reduced salary. As a result, since June 1, 2012, its internal research and development efforts have been minimal, pending receipt of adequate funding. Marina Biotech reported a net loss of $6.47 million on $500,000 of license and other revenue for the year ended Dec. 31, 2014, compared to a net loss of $1.57 million on $2.11 million of license and other revenue in 2013. Wolf & Company, P.C., in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing the Company has suffered recurring losses from operations, has a significant accumulated deficit and has been unable to raise sufficient capital to fund its operations through the end of 2015. This raises substantial doubt about the Company's ability to continue as a going concern, the auditors noted. MCCLATCHY CO: Morgan Stanley Owns 1.6% of Class A Shares -------------------------------------------------------- Morgan Stanley disclosed in an amended Schedule 13G filed with the Securities and Exchange Commission that as of April 30, 2015, it beneficially owns 1,009,838 shares of class A common stock of McClatchy Co which represents 1.6 percent of the shares outstanding. A copy of the regulatory filing is avaiable for free at http://is.gd/c4vaDw About The McClatchy Company Sacramento, Cal.-based The McClatchy Company (NYSE: MNI) -- http://www.mcclatchy.com/-- is a media company that provides both print and digital news and advertising services. Its operations include 30 daily newspapers, community newspapers, websites, mobile news and advertising, niche publications, direct marketing and direct mail services. Its owned newspapers include, among others, the (Fort Worth) Star-Telegram, The Sacramento Bee, The Kansas City Star, the Miami Herald, The Charlotte Observer, and The (Raleigh) News & Observer. The Company holds interest in digital assets which include CareerBuilder, LLC, Classified Ventures, LLC, HomeFinder, LLC, and Wanderful Media. McClatchy Co reported net income of $374 million on $1.14 billion of net revenues for the year ended Dec. 28, 2014, compared with net income of $18.8 million on $1.21 billion of net revenues for the year ended Dec. 29, 2013. As of March 29, 2015, the Company had $2.35 billion in total assets, $1.85 billion in total liabilities, and $496 million in stockholders' equity. * * * McClatchy carries a 'Caa1' corporate family rating from Moody's Investors Service. In May 2011, Moody's changed the rating outlook from stable to positive following the company's announcement that it closed on the sale of land in Miami for $236 million. The outlook change reflects Moody's expectation that McClatchy will utilize the net proceeds to reduce debt, including its underfunded pension position, which will reduce leverage by approximately half a turn and lower required contributions to the pension plan over the next few years. As reported by the TCR on April 2, 2014, Standard & Poor's Ratings Services affirmed all ratings on U.S. newspaper company The McClatchy Co., including the 'B-' corporate credit rating, and revised the rating outlook to stable from positive. The outlook revision to stable reflects S&P's expectation that the timeframe for a potential upgrade lies beyond the next 12 months, and could also depend on the company realizing value from its digital minority interests. MERRIMACK PHARMACEUTICALS: Stockholders Elect 9 Directors --------------------------------------------------------- At the 2015 annual meeting of stockholders of Merrimack Pharmaceuticals, Inc. held on May 12, 2015, the Company's stockholders elected Gary L. Crocker, Gordon J. Fehr, Vivian S. Lee, M.D., Ph.D., John Mendelsohn, M.D., Robert J. Mulroy, Ulrik B. Nielsen, Ph.D., Michael E. Porter, Ph.D., James H. Quigley and Russell T. Ray as directors each for a one year term ending at the Company's 2016 annual meeting of stockholders. The stockholders approved, on a non-binding advisory basis, the compensation of the Company's named executive officers and recommended, on a non-binding advisory basis, that future advisory votes to approve executive compensation be held every year. The stockholders also ratified the selection of PricewaterhouseCoopers LLP as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2015. About Merrimack Cambridge, Mass.-based Merrimack Pharmaceuticals, Inc., a biopharmaceutical company discovering, developing and preparing to commercialize innovative medicines consisting of novel therapeutics paired with companion diagnostics. The Company's initial focus is in the field of oncology. The Company has five programs in clinical development. In it most advanced program, the Company is conducting a pivotal Phase 3 clinical trial. Merrimack reported a net loss of $83.6 million on $103 million of collaboration revenues for the year ended Dec. 31, 2014, compared with a net loss of $131 million on $47.8 million of collaboration revenues during the prior year. As of March 31, 2015, Merrimack had $127 million in total assets, $256 million in total liabilities, $396,000 in noncontrolling interest, and a $129 million total stockholders' deficit. MILESTONE SCIENTIFIC: Reports $419,000 Net Loss in 1st Quarter -------------------------------------------------------------- Milestone Scientific Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $419,000 on $2.77 million of net product sales for the three months ended March 31, 2015, compared with net income attributable to the Company of $195,000 on $2.62 million of net product sales for the same period last year. As of March 31, 2015, the Company had $16.7 million in total assets, $1.85 million in total liabilities, all current, and $14.8 million in total equity. As of March 31, 2015, Milestone had cash and cash equivalents of $9.33 million and positive working capital of $13.2 million. The working capital at March 31, 2015, was $13.2 million as compared to the working capital at Dec. 31, 2014, of $13.1 million. The increase of $64,500 in working capital was primarily attributable to a net current asset decrease of $513,900 including, an increase in current accounts receivable of $101,460, an increase in due from related party of $185,000, a decrease in cash and cash equivalents of $1.037 million and an increase in inventory of $269,000 offset by a net decrease in current liabilities of $578,000. A full-text copy of the Form 10-Q is available for free at: http://is.gd/VGzxxA About Milestone Scientific Livingston, N.J.-based Milestone Scientific Inc. is engaged in pioneering proprietary, innovative, computer-controlled injection technologies and solutions for the medical and dental markets. The Company reported a net loss attributable to the Company of $1.7 million on $10.33 million of net product sales for the year ended Dec. 31, 2014, compared to net income attributable to the Company of $1.46 million on $10.01 million of net product sales for the year ended Dec. 31, 2013. MINT LEASING: Delays First Quarter Form 10-Q -------------------------------------------- The Mint Leasing, Inc. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the period ended March 31, 2015. The Company said it has experienced delays in completing its financial statements for the said period as it has recently engaged a new auditing firm that has not had sufficient time to finalize its review of its financial statements for the quarter ended March 31, 2015. About Mint Leasing Houston, Texas-based The Mint Leasing, Inc., is in the business of leasing automobiles and fleet vehicles throughout the United States. Mint Leasing reported a net loss of $3.08 million in 2014, following net income of $3.22 million in 2013. As of Dec. 31, 2014, the Company had $15.2 million in total assets, $13.7 million in total liabilities, and $1.56 million in total stockholders' equity. NATEL ENGINEERING: S&P Assigns 'B+' CCR, Outlook Stable ------------------------------------------------------- Standard & Poor's Ratings Services assigned a 'B+' corporate credit rating to Chatsworth, Calif.-based Natel Engineering Co. Inc. The outlook is stable. At the same time, S&P assigned a 'BB-' issue-level rating and '2' recovery rating to the company's $300 million senior secured term loan due 2020. The '2' recovery rating indicates S&P's expectation for substantial recovery (70% to 90%; at the lower end of the range) in the event of payment default. "The rating on Natel reflects our adjusted leverage, which we expect will fall to less than 4x during the next 12 to 18 months as the company realizes cost savings in the OnCore business, as well as the company's small scale, meaningful customer concentration, and fragmented, competitive, and cyclical operating environment," said Standard & Poor's credit analyst Christian Frank. The stable outlook reflects S&P's expectation that consistent end market demand and cost saving opportunities are likely to result in leverage falling to less than 4x during the next 12 to 18 months. NET ELEMENT: Beno Distribution Holds 9.6% Stake as of April 30 -------------------------------------------------------------- In an amended Schedule 13D filed with the Securities and Exchange Commission, Nurlan Abduov and Beno Distribution, Ltd. disclosed that as of April 30, 2015, they beneficially own 4,538,737 shares of common stock of Net Element, Inc., which represents 9.6 percent of 47,460,032, which was the number of the outstanding shares of Common Stock as of March 30, 2015. As of April 30, 2015, Beno may be deemed to have formed a "group" as defined by Section 13(d) of the Securities and Exchange Act of 1934 upon entering into two separate Voting Agreements, and as such may be deemed to be a beneficial owner of 25,081,961 shares of Common Stock of the Company or 53.47% of the total outstanding Common Stock. The group is composed of Beno, Cayman Invest S.A., Kenges Rakishev, Novatus Holding PTE. Ltd., Oleg Firer, Mayor Trans Ltd., Steven Wolberg, James Caan, Jonathan New, David P. Kelley II, and William Healy. A full-text copy of the regulatory filing is available at: http://is.gd/EUWEAO About Net Element Miami, Fla.-based Net Element International, Inc., formerly Net Element, Inc., currently operates several online media Web sites in the film, auto racing and emerging music talent markets. Net Element reported a net loss of $10.18 million on $21.2 million of net revenues for the 12 months ended Dec. 31, 2014, compared to a net loss of $48.3 million on $18.7 million of net revenues for the 12 months ended Dec. 31, 2013. As of March 31, 2015, the Company had $14.02 million in total assets, $10.29 million in total liabilities and $3.73 million in total stockholders' equity. BDO USA, LLP, in Miami, Florida, issued a "going concern" qualification in its report on the consolidated financial statements for the year ended Dec. 31, 2014. The accounting firm said that the Company has suffered recurring losses from operations and has used substantial amounts of cash to fund its operating activities that raise substantial doubt about its ability to continue as a going concern. NET ELEMENT: Posts $2.24 Million Net Loss in First Quarter ---------------------------------------------------------- Net Element, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.24 million on $5.54 million of net revenues for the three months ended March 31, 2015, compared to a net loss of $3.62 million on $4.84 million of net revenues for the same period last year. As of March 31, 2015, the Company had $14.02 million in total assets, $10.29 million in total liabilities and $3.73 million in total stockholders' equity. At March 31, 2015, the Company had a working capital deficit of approximately $1.9 million and an accumulated deficit of approximately $131.4 million. These conditions raise substantial doubt about our ability to continue as a going concern. "Failure to successfully continue developing our payment processing operations and maintain contracts with merchants, mobile phone carriers and content providers to use TOT Group's services could harm our revenues and materially adversely affect our financial condition and results of operations. We face risks including the need for additional capital, our management's potential underestimation of initial and ongoing costs, and potential delays and other problems in connection with developing our technologies and operations. We are continuing with our plan to further grow and expand our payment processing operations in emerging markets, particularly in Russia and surrounding countries. Management believes that its current operating strategy will provide the opportunity for us to continue as a going concern so long as we are able to secure additional long-term financing; however, there is no assurance this will occur, or on terms favorable to us." A full-text copy of the Form 10-Q is available for free at: http://is.gd/VRjo7i About Net Element Miami, Fla.-based Net Element International, Inc., formerly Net Element, Inc., currently operates several online media Web sites in the film, auto racing and emerging music talent markets. Net Element reported a net loss of $10.18 million on $21.2 million of net revenues for the 12 months ended Dec. 31, 2014, compared to a net loss of $48.3 million on $18.7 million of net revenues for the 12 months ended Dec. 31, 2013. BDO USA, LLP, in Miami, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has used substantial amounts of cash to fund its operating activities that raise substantial doubt about its ability to continue as a going concern. NEW YORK MILITARY: U.S. Trustee Forms 3-Member Creditors Committee ------------------------------------------------------------------ William K. Harrington, United States Trustee for Region 2, appointed three unsecured creditors who are willing to serve on the Official Committee of Unsecured Creditors in the Chapter 11 case of New York Military Academy: 1. A. Jon Prusmack 837 Sherry Drive Valley Cottage, NY 10989 Telephone (845) 268-4698 Cell No. (914) 806-3471 E-mail: JPrusmack@ailbrands.com 2. The Brunetti Foundation 2200 East 4th Avenue P.O. Box 158 Hialeah, FL 33011 Attn: John J. Brunetti, President Telephone (305) 885-8000 Ext. 7202 Fax No. (305) 887-8006 E-mail: smartinez@hialeahpark.com cheriehialeah@aol.com Represented by: Richard J. Laiks, Esq. 77 Passaic Avenue, Suite 203 Passaic, NJ 07055 Telephone (973) 777-2600 Fax No. (973) 777-2098 E-mail: rlaiks@heller-laiks.com 3. Morgan Fuel & Heating Co., Inc. 2785 W. Main Street Wappingers Falls, NY 12590 Attn: Mark Bottini, Secretary Telephone (845) 297-5580 E-mail: mbottini@bottinifuel.com Represented by: Kenneth Gobetz, Esq. Wichler & Gobetz, P.C. 400 Rella Boulevard, Suite 213 Suffern, NY 10901 Telephone (845) 368-1710 Fax No. (845) 368-1470 E-mail: kgobetz@wichlergobetz.com About New York Military Academy New York Military Academy, a private coeducational boarding school, filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 15-35379) on March 3, 2015. David B. Fields signed the petition as first vice-president. The Debtor reported total assets of $10.5 million and total debts of $10.9 million. Lewis D. Wrobel, Esq., at Lewis D. Wrobel, represents the Debtor as counsel. The U.S. trustee overseeing the Chapter 11 case of New York Military Academy said it wasn't able to form a committee of unsecured creditors. NEWLEAD HOLDINGS: Incurs $100 Million Net Loss in 2014 ------------------------------------------------------ Newlead Holdings Ltd. filed with the U.S. Securities and Exchange Commission its annual report on Form 20-F disclosing a net loss attributable to the Company's shareholders of $100 million on $12.6 million of revenues for the year ended Dec. 31, 2014, compared to a net loss attributable to the Company's shareholders of $158 million on $7.34 million of revenues for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $190 million in total assets, $300 million in total liabilities, and a $110 million total shareholders' deficit. Cherry Bekaert LLP, in Charlotte, North Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred a net loss, has negative cash flows from operations, negative working capital, an accumulated deficit and has defaulted under its credit facility agreements resulting in all of its debt being reclassified to current liabilities all of which raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 20-F is available for free at: http://is.gd/U8sUGe 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. NGPL PIPECO: Fitch Lowers Issuer Default Rating to 'CCC' -------------------------------------------------------- Fitch Ratings has downgraded the Issuer Default Rating (IDR) for NGPL PipeCo LLC (NGPL) to 'CCC' from 'B-.' Also, downgraded to 'CCC+/RR3' from 'B-/RR4' are NGPL's senior secured notes and secured Term Loan B. A total of $2.95 billion of outstanding senior debt is affected by the rating downgrade. The downgrade reflects continued deterioration in NGPL's credit metrics as of the yearend 2014, with leverage remaining well above prior expectations. Fitch had previously listed a breach of covenants as a trigger for downgrades and NGPL had to receive a waiver for its financial covenants to remain in compliance for 4Q 2014. Fitch does believe that NGPL's owners will take steps necessary to avoid defaulting on its obligations at least in the near term. In association with the covenant waivers through 3Q 2015, NGPL's owners have committed an equity contribution of up to $50 million (contingent on a variety of factors) that can be used to pay principal on secured borrowings, for interest payments, equity cures or capital spending subject to some limitations. NGPL expects cash outflows to exceed inflows in 2015. This is obviously unsustainable, and NGPL is pursuing strategic alternatives to address the situation. Leverage is expected to remain extremely elevated with EBITDA for 2015 expected to be roughly $285 million, and expected Debt/EBITDA of over 10x. Fitch believes that NGPL HoldCo, (NGPL's parent company) will have to contribute the $50 million in equity being held there for the purpose of providing NGPL with liquidity that will help in 2015, but is not likely enough to help in 2016 absent increased profitability on the pipeline system. KEY RATING DRIVERS EBITDA Weakness: The downgrade reflects EBITDA weakness at the pipeline due to supply and demand fundamentals that began to unfavorably change for NGPL years ago, its prior FERC rate reduction and a slight rise in costs for 2014. NGPL's EBITDA for the yearend 2014 was $284 million, a decline of roughly 6% versus 2013 results, due in part to non-recurring expenses including a $13 million loss on operational gas as a result of higher than expected fuel usage to run the pipe during last winter's (2013/2014) cold weather. The other non-recurring expense was a $14 million non-cash charge for a lower cost or market adjustment to gas inventory due to gas prices falling below inventory basis. For yearend 2014, NGPL's leverage increased to over 10x, prompting the need for covenant waivers. Generally, NGPL's earnings weakness stems from the combination of FERC mandated phase-in decreases in operating subsidiary Natural Gas Pipeline of America's base recourse rate, fuel retention factors, and unfavorable market conditions. Marcellus shale area production growth has displaced historical supplies shipped on the pipelines historical west-to-east transport path, particularly its Louisiana line, as well as impacting historical north to south flows. Exploring Strategic Alternatives: NGPL is exploring strategic alternatives, including a sale of the company, recapitalizations, restructuring, or a sale of assets. There is significant uncertainty around what ultimately gets completed, while the recent waivers of covenants gives the company until roughly early December to get a feasible plan in place to address its cash flow needs before it would need another covenant amendment or would violate covenant. In the event that NGPL is unable to cure any covenant violation, NGPL's outstanding debt could be accelerated by lenders. A credit facility default can trigger cross payment default and cross acceleration provisions in NGPL's existing senior notes. Management has committed to an equity injection of up to $50 million subject to certain specific conditions. Fitch currently believes that this equity injection should prevent a default in 2015. Recontracting Stabilizing: There are some signs that the financial impact of gas displacement on NGPL is finally waning. During 2014, NGPL saw its existing transportation revenue stabilize and contract rollover stayed steady for the first time in several years. All of NGPL's higher rate contracts have rolled over at this point and management does not expect much more downside to revenue going forward. Additionally, NGPL was able to secure binding commitments for a northbound expansion project into Chicago that will provide roughly $17 million in incremental EBITDA. Construction of this project, at a cost of roughly $80 million, is expected to start in 2016 with the expansion in service towards the end of 2016. Financing of the project is uncertain at this time. Other credit concerns include the limiting effect of the reduced cash flows on the company's operating flexibility and strategies; the refinancing of $1.25 billion senior notes and the Term Loan B (currently $598 million) in 2017. Favorable considerations include NGPL's Chicago/Midwest market franchise, which accounts for a significant portion of total EBITDA, and its associated high-quality, reliable utility customer base and demand for storage services. KEY ASSUMPTIONS -- Revenue consistent with existing contract profile; -- $50 million equity injection from HoldCo in 2015; revolver fully maxed out at $75 million in 2015. -- For the recovery rating, Fitch projects a going concern enterprise valuation of $2.1 billion, using an 8x multiple and EBITDA of approximately $285. After deducting Fitch's standard of 10% for administrative claims, Fitch estimates recovery of the senior notes and Term Loan B at their current outstanding amount of roughly 70%, towards the high end of 'RR3' (51%-70%). RATINGS SENSITIVITIES Negative: Future developments that may, individually or collectively, lead to a negative rating action include: -- Lack of viable strategic alternative plan by end of 3Q 2015 would likely lead to further downgrade. Positive: Future developments that may, individually or collectively, lead to a positive rating action include: -- Ability to achieve sustainable liquidity; -- Improving credit metrics through some combination of revenue growth and debt reduction with sustained leverage below 7.0x; -- Successfully refinancing 2017 debt maturities. NGPL is 80% owned by Myria Acquisition Inc., a consortium of investors including Brookfield Infrastructure Partners, SteelRiver Infrastructure Fund North America, a Canadian pension fund and a Netherlands pension fund, and 20% owned by Kinder Morgan, Inc. (IDR 'BBB-'/Rating Outlook Stable by Fitch). Fitch downgrades these ratings: NGPL PipeCo LLC -- IDR to 'CCC' from 'B-'; -- Senior secured notes to 'CCC+/RR3' from 'B-/RR4'; -- Term Loan B to 'CCC+/RR3' from 'B-/RR4'. NJRC CENTER: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: NJRC Center, LLC 3092 Shafto Road Eatontown, NJ 07724 Case No.: 15-19221 Chapter 11 Petition Date: May 15, 2015 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Hon. Michael B. Kaplan Debtor's Counsel: Joseph Casello, Esq. COLLINS, VELLA & CASELLO 2317 Route 34 South, Suite 1A Manasquan, NJ 08736 Tel: (732) 751-1766 Fax: (732) 751-1866 Email: jcasello@cvclaw.net Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by David Angstadt, managing member. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. NY MILITARY ACADEMY: Court OKs Wasserman as Committee Counsel ------------------------------------------------------------- The Brunetti Foundation, Creditors' Committee, by proxy of Richard J. Laiks, the Chairman of the Official Committee of Unsecured Creditors of New York Military Academy, sought and obtained permission from the U.S. Bankruptcy Court for the Southern District of New York to retain Wasserman, Jurista & Stolz, P.C. ("WJ&S") as counsel to the committee. By this Application, the Committee seeks entry of an Order authorizing and approving the employment of WJ&S as its counsel to perform services relating to the Debtor's bankruptcy case, effective as of the date the Application is filed with the Court. WJ&S will also be reimbursed for reasonable out-of-pocket expenses incurred. WJ&S assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. WJ&S can be reached at: Steven Z. Jurista, Esq. WASSERMAN, JURISTA & STOLZ, P.C. 110 Allen Road, Suite 304 Basking Ridge, NJ 07920 Tel: (973) 467-2700 Fax: (973) 467-8126 About New York Military Academy New York Military Academy, a private coeducational boarding school, filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 15-35379) on March 3, 2015. David B. Fields signed the petition as first vice-president. The Debtor reported total assets of $10.5 million and total debts of $10.9 million. Lewis D. Wrobel, Esq., at Lewis D. Wrobel, represents the Debtor as counsel. The U.S. trustee overseeing the Chapter 11 case of New York Military Academy said it wasn't able to form a committee of unsecured creditors. OAS FINANCE: Chapter 15 Case Summary ------------------------------------ Chapter 15 Petitioners: Marcus Allender Wide and Mark T. McDonald Chapter 15 Debtor: OAS Finance Limited (in provisional liquidation) c/o Trident Chambers, P.O. Box 146 Road Town, Tortola VG 1110 British Virgin Islands Chapter 15 Case No.: 15-11304 Type of Business: Finance/SPV Chapter 15 Petition Date: May 18, 2015 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Chapter 15 Petitioners' Andrew Rosenblatt, Esq. Counsel: Eric Daucher, Esq. Howard Seife, Esq. CHADBOURNE & PARKE LLP 1301 Avenue of the Americas New York, NY 10019-6022 Tel: (212) 408-5559 Fax: (212) 541-5369 Email: andrew.rosenblatt@chadbourne.com edaucher@chadbourne.com hseife@chadbourne.com Estimated Assets: $500 million to $1 billion Estimated Debts: $500 million to $1 billion ONE SOURCE: Has Until Aug. 3 to Decide on Unxpired Leases --------------------------------------------------------- U.S. Bankruptcy Judge Russel F. Nelms extended until Aug. 3, 2015, One Source Industrial Holdings, LLC, and One Source Industrial LLC's time to assume or reject unexpired leases of nonresidential real property. The Debtors explained that they needed an extension to evaluate their space equipment, and personal needs and operate in the new world of the oil and gas industry before they can proceed with formulating a plan of reorganization. About One Source Industrial One Source Industrial Holdings, LLC, and One Source Industrial LLC are both limited liability companies that are part of a corporate family of affiliated companies. One Source Industrial Holdings holds equipment utilized by various related entities which provide rental equipment and industrial services to businesses in the oil and gas, refining, manufacturing, pipeline, shipping, and construction industries. The types of equipment possessed by One Source include, e.g., hazardous material transportation vehicles, frac tanks, tank trailers, barrel mix tank and vacuum tankers, air machines, and waste and other industrial boxes and tanks. Industrial provides executive management, accounting, and overhead services for Holdings. One Source Holdings sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 14-44996) in Ft. Worth, Texas, on Dec. 16, 2014. One Industrial sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 15-400038) on Jan. 4, 2015. Holdings' case is assigned to Judge Russell F. Nelms. The Debtor disclosed $12,036,897 in assets and $15,890,063 in liabilities as of the Chapter 11 filing. The Debtors are represented by J. Robert Forshey, Esq., and Suzanne K. Rosen, Esq., at Forshey & Prostok, LLP, in Ft. Worth, Texas. The Debtors tapped EJC Ventures LP as financial consultant. The U.S. Trustee appointed five creditors to serve on the official committee of unsecured creditors. ONE SOURCE: Stipulation on Adequate Protection for CNHI Approved ---------------------------------------------------------------- One Source Industrial Holdings, LLC, et al., and CNH Industrial Capital America LLC, formerly known as CNH Capital America LLC, won approval from the bankruptcy court of an agreed order relating to adequate protection as to one New Holland Tractor Loader/ Backhoe. CNHI asserts a properly perfected purchase money security interest in one New Holland Tractor Loader/Backhoe Model B95C. The Agreed Order provides that: 1. The automatic stay currently in effect in the case will remain in effect with respect to CNHI contingent upon Debtors making payments to CNHI in the amount of $1,000 per month beginning in April 2015 so that it is received no later than seven days after the order is signed and each subsequent monthly payment delivered so as to be received by CNHI by May 10, 2015, June 10 and July 10, for the period ending July 31. 2. The Debtors will continue to insure the collateral with CNHI reflected as an additional loss payee as its interest may appear in the Collateral and the Debtors will provide CNHI with proof of insurance no later than ten days after the order is signed. 3. The Debtors will maintain and service the collateral and CNHI will have access to and the right to inspect the collateral during normal business hours or any other time agreed to by the parties. 4. If the Debtors fail to perform, CNHI will provide written notice of the event(s) of default to Debtors through their counsel of record in the case. If Debtors fail to cure any event of default within 10 days after the date of CNHI's written notice, then the automatic stay will terminated with respect to CNHI's rights to recover, market and dispose of the collateral. CNHI holds one retail installment sale contract and security agreement secured by a New Holland Tractor Loader/Backhoe Model B95C in which Debtor One Source Industrial Holdings, LLC, is the obligor. CNHI is represented by: Howard C. Rubin, Esq. Daniel P. Callahan, Esq. KESSLER & COLLINS, P.C. 2100 Ross Avenue, Suite 750 DALLAS, TX 75201 Tel: (214) 379-0722 Fax: (214) 373-4714 About One Source Industrial One Source Industrial Holdings, LLC, and One Source Industrial LLC are both limited liability companies that are part of a corporate family of affiliated companies. One Source Industrial Holdings holds equipment utilized by various related entities which provide rental equipment and industrial services to businesses in the oil and gas, refining, manufacturing, pipeline, shipping, and construction industries. The types of equipment possessed by One Source include, e.g., hazardous material transportation vehicles, frac tanks, tank trailers, barrel mix tank and vacuum tankers, air machines, and waste and other industrial boxes and tanks. Industrial provides executive management, accounting, and overhead services for Holdings. One Source Holdings sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 14-44996) in Ft. Worth, Texas, on Dec. 16, 2014. One Industrial sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 15-400038) on Jan. 4, 2015. Holdings' case is assigned to Judge Russell F. Nelms. The Debtor disclosed $12,036,897 in assets and $15,890,063 in liabilities as of the Chapter 11 filing. The Debtors are represented by J. Robert Forshey, Esq., and Suzanne K. Rosen, Esq., at Forshey & Prostok, LLP, in Ft. Worth, Texas. The Debtors tapped EJC Ventures LP as financial consultant. The U.S. Trustee appointed five creditors to serve on the official committee of unsecured creditors. ORANGE COUNTY POOLS: Case Summary & 17 Top Unsecured Creditors -------------------------------------------------------------- Debtor: Orange County Pools, Inc. 275 Windsor Highway New Windsor, NY 12553 Case No.: 15-35902 Nature of Business: Pool and spa construction Chapter 11 Petition Date: May 18, 2015 Court: United States Bankruptcy Court Southern District of New York (Poughkeepsie) Debtor's Counsel: Thomas Genova, Esq. GENOVA & MALIN Hampton Business Center 1136 Route 9 Wappingers Falls, NY 12590-4332 Tel: (845) 298-1600 Fax: (845) 298-1265 Email: genmallaw@optonline.net Estimated Assets: $500,001 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Vincent Moscatello, president. A list of the Debtor's 17 largest unsecured creditors is available for free at http://bankrupt.com/misc/nysb15-35902.pdf PARAMOUNT RESOURCES: Moody's Lifts CFR to B1 & Rates New Notes B3 ----------------------------------------------------------------- Moody's Investor's Services upgraded Paramount Resources Ltd.'s Corporate Family Rating to B1 from B2 and Probability of Default Rating to B1-PD from B2-PD. Moody's assigned a B3 rating to the proposed US$400 million senior unsecured notes due 2023 and affirmed the B3 senior unsecured notes ratings. The SGL-3 Speculative Grade Liquidity Rating remained unchanged and the outlook was changed to stable from positive. Proceeds from the notes will be used to repay the company's C$370 million senior unsecured notes due December 2017, with the remainder going to capital expenditures and general corporate purposes including repayment of drawings under the revolving credit facility. Issuer: Paramount Resources LTD Upgrades: -- Probability of Default Rating, Upgraded to B1-PD from B2-PD -- Corporate Family Rating, Upgraded to B1 from B2 Assignments: -- Senior Unsecured Regular Bond/Debenture, Assigned B3(LGD5) Affirmations: -- Senior Unsecured Regular Bond/Debenture, Affirmed B3(LGD5) -- Senior Unsecured Shelf, Affirmed (P)B3 Outlook Actions: -- Outlook, Changed To Stable From Positive Paramount's B1 CFR is primarily driven by an expectation that production will reach 60,000 barrels of oil equivalent (boe)/day by the second half of 2015. The rating is further supported by the solid margins and leveraged full-cycle ratio, and reasonable cash flow based leverage in 2016. The rating is constrained by the limited cash flow and revolver availability to fund capital expenditures through 2016. In accordance with Moody's Loss Given Default Methodology the notching of the senior unsecured notes at B3, two notches below the B1 CFR, reflects priority ranking debt in the form of the C$900 million secured revolving credit facility relative to the unsecured notes. The stable outlook reflects expectation that Paramount's production will reach about 60,000 boe/day in the second half of 2015 and that leverage improves from current levels. The rating could be upgraded if production increases towards 70,000 boe/d with retained cash flow to debt rising towards 30% and E&P debt to production was likely to remain below US$30,000/boe. The rating could be downgraded if Paramount's production decreases materially or if debt funded negative free cash flow leads to retained cash flow to debt is sustained below 20% or E&P debt to production increasing above US$40,000/boe. Paramount is a Calgary, Alberta-based exploration and production company with principal properties in the Montney formation in Alberta. First quarter 2015 production was about 37,000 boe per day (net of royalties). The principal methodology used in these ratings was Global Independent Exploration and Production Industry published in December 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. PARAMOUNT RESOURCES: S&P Rates US$400MM Sr. Unsecured Bonds 'BB-' ----------------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'BB-' issue-level rating, and '1' recovery rating, to Calgary, Alta.-based Paramount Resources Ltd.'s proposed US$400 million senior unsecured bond issue. The '1' recovery rating reflects S&P's expectation of very high (90%-100%) recovery for the company's unsecured lenders in S&P's simulated default scenario. Bond proceeds will refinance Paramount's C$370 million 8.25% senior unsecured notes maturing in 2017. As a result, S&P has removed the C$370 million debt issue from our pro forma debt waterfall. The 'B' long-term corporate credit rating and positive outlook on the company are unchanged. "Given recent issuance activity in the Canadian and U.S. debt capital markets, we expect Paramount's proposed issue should be priced at a lower coupon than the existing 8.25% notes," said Standard & Poor's credit analyst Michelle Dathorne. "Although the company's gross debt levels will increase following the refinancing, we estimate the company's pro forma three-year weighted average cash flow metrics, specifically its fully adjusted funds from operations-to-debt, will remain consistent with the base-case scenario ratios estimated when we raised the corporate credit rating to 'B' in February," Ms. Dathorne added. The ratings on Paramount reflect Standard & Poor's view of the company's small, regionally focused oil and gas operations; our expectations of heightened volatility in profitability and cash flow leverage metrics during the hydrocarbon price trough; and Paramount's high debt levels (incurred during the construction of its recently completed infrastructure projects). S&P believes the company's improving product mix diversification and unit profitability metrics, which currently rank in the mid-range of the global exploration and production (E&P) peer group, somewhat offset these weaknesses. Paramount is an E&P company operating primarily in the Kaybob area in west-central Alberta. With the recent completion of the company's gas processing infrastructure projects and third-party capacity expansions, Paramount expects the mix of its liquids and gas production to shift to a balanced product mix, with liquids representing about 50% of its annual daily average production in 2015. The positive outlook reflects Standard & Poor's view that Paramount's daily average production and cash flow generation will strengthen materially throughout 2015 and 2016 as the company expands its internal and contracted natural gas processing capacity. As such, it should be able to realize increasing economies of scale, which could strengthen the scale and scope of Paramount's upstream operations and its operating efficiency. This, in turn, could strengthen the company's overall business risk profile and the rating. S&P could raise the rating if Paramount improves either its business risk or its financial risk profile. An upgrade would most likely occur if the company shows improved economies of scale, due to access to increased natural gas processing infrastructure, higher production levels, and reduced full-cycle costs. In S&P's opinion, improvements in these operating parameters would illustrate a strengthened operating efficiency and overall business risk profile. As well, S&P could raise the rating if Paramount's financial risk profile strengthened materially. Specifically, the three-year weighted average funds from operations (FFO)-to-debt would have to increase and stay above 45% to support a 'B+' rating with the current business risk profile. An upgrade is also contingent on the company consistently maintaining an adequate liquidity profile. S&P would revise the outlook to stable if the operating efficiency improvements S&P has incorporated in its base-case scenario do not occur, due to either a material delay in expected production ramp-up or a failure to reduce costs through increasing economies of scale. An outlook revision to stable could also result if Paramount's three-year, weighted-average FFO-to-debt fell and remained below 20% throughout the 12-month outlook period, and S&P believed its cash flow metrics would remain at these levels. RATINGS LIST Paramount Resources Ltd. Corporate credit rating B/Positive/-- Ratings Assigned Senior unsecured debt Prop. US$400 million notes BB- Recovery rating 1 PARK 91 LLC: Sec. 341(a) Meeting of Creditors Set for June 4 ------------------------------------------------------------ A meeting of creditors will be convened in the Chapter 11 case of Park 91 LLC on June 4, 2015, at 2:00 p.m. at 80 Broad St., 4th Floor, USTM, in Manhattan. 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. About Park 91 Park 91 LLC is the fee simple owner of a townhouse located at 1145 Park Avenue, New York. The townhouse is located in the Carnegie Hill Historic District on Park Avenue and 91st Street. The Townhouse was built in 1885 and redesigned in 1903 by Emery Roth, one of the most famous architects of his time. The townhouse has approximately 5,200 square feet and is comprised 4.5 stories in one of the most desirable locations in Manhattan. Park 91 sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 15-10957) in Manhattan on April 17, 2015. The case is assigned to Judge James L. Garrity Jr. The Debtor is represented by Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, in New York. According to the docket, the Chapter 11 plan and disclosure statement are due by Aug. 17, 2015. PARK 91: Hires Town Firm as Real Estate Broker ---------------------------------------------- Park 91 LLC asks for permission from the Hon. James L. Garrity of the U.S. Bankruptcy Court for the Southern District of New York to employ Town Fifth Avenue LLC and Town 79th Street LLC ("Town") as real estate broker. The Debtor requires Town to market and sell the Debtor's townhouse located at 1145 Park Avenue, New York, NY. Additionally, Town will, among other things, (i) vet any potential buyers, (ii) conduct all property tours, and (iii) assist in price negotiations. Town will provide the Debtor with real time updates as to the status of all marketing efforts, as well as feedback from potential buyers. Under the Agreement, in the event Town procures an acceptable, qualified buyer for the Townhouse and the sale is approved by the Court pursuant to Bankruptcy Code section 363, the total commission, which the Debtor will be responsible for, will not exceed 5% of the total sale price of the Townhouse (the "Commission"). Town will also be reimbursed for reasonable out-of-pocket expenses incurred. Juliet Clapp, managing director of Town, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Town can be reached at: Juliet Clapp TOWN FIFTH AVENUE LLC 730 Fifth Avenue New York, NY 10019 Tel: (646) 532-4902 Fax: (212) 242-9901 E-mail: jclapp@townrealestate.com About Park 91 Park 91 LLC is the fee simple owner of a townhouse located at 1145 Park Avenue, New York. The townhouse is located in the Carnegie Hill Historic District on Park Avenue and 91st Street. The Townhouse was built in 1885 and redesigned in 1903 by Emery Roth, one of the most famous architects of his time. The townhouse has approximately 5,200 square feet and is comprised 4.5 stories in one of the most desirable locations in Manhattan. Park 91 sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 15-10957) in Manhattan on April 17, 2015. The case is assigned to Judge James L. Garrity Jr. The Debtor is represented by Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, in New York. According to the docket, the Chapter 11 plan and disclosure statement are due by Aug. 17, 2015. PATRIOT COAL: Proposes $100MM of Financing from Existing Lenders ---------------------------------------------------------------- Patriot Coal Corp. and its debtor subsidiaries seek approval from the U.S. Bankruptcy Court for the Eastern District of Virginia to use cash collateral and obtain senior secured postpetition financing on a priming basis pursuant to a term loan facility. The Debtors have secured a fully committed $100 million debtor-in-possession facility from a subset of their prepetition lenders that control a majority of the Debtors' prepetition term loan debt and second lien notes. The Debtors' prepetition capital structure is generally comprised of: (a) a senior secured asset-based revolving credit facility with a maximum availability of $65 million (b) a $247 million term loan and $200 million letter of credit facility; and (c) approximately $306 million in second lien notes secured by a junior lien on the ABL Collateral and the Term Loan Collateral. The proceeds from the DIP Facility will be used to honor employee wages and benefits, procure goods and services integral to the Debtors' ongoing business operations, fund operational expenses, and allow the Debtors to maintain favorable relationships with their vendors, suppliers, employees, and customers -- each of which is necessary to effectuate a value-maximizing going concern sale and/or restructuring transaction, which must occur by the end of November 2015 in accordance with the milestones set forth in the DIP Loan Agreement. The DIP Facility generally provides for: * a multi-draw term loan of approximately $100 million secured by first priority priming liens on substantially all of the Debtors' assets, subject only to the a carve out for fees of retained professionals and the U.S. Trustee, liens that were senior to the liens of the Debtors' prepetition lenders as of the Petition Date, and, with respect to the Debtors' collateral under their ABL facility, the ABL lenders' liens; * interest payable at a rate of 12 percent plus 2 percent default interest, as applicable, payable in kind; * borrowings and disbursements to be made pursuant to the terms of an agreed 13-week budget; * an initial interim advance of $30 million to be funded upon entry of the Interim DIP Order, followed by intermittent borrowings after entry of the Final DIP Order, pursuant to the terms and conditions set forth in the DIP Loan Agreement; * the Debtors' agreement to provide a 2% upfront fee to each DIP Lender on each DIP Lender's commitment and a 3% exit fee on repayment or termination of the DIP Facility pursuant to a Commitment Letter and a payment of $75,000 to the DIP Agent pursuant to a DIP Agent Fee Letter; and * adequate protection for the Debtors' prepetition secured creditors in the form of, among other things, replacement liens, superpriority claims, and the payment of certain fees and expenses for certain of the Debtors' prepetition lenders. The DIP Facility is secured by the collateral securing the Debtors' prepetition secured credit facilities plus unencumbered property, including nonresidential real property leases. The DIP facility has a termination date of Nov. 30, 2015. However, the Debtors are required to achieve certain milestones, the failure of which to satisfy would constitute an event of default. Failure of which to satisfy would constitute an event of default thereunder, including, milestones relating to filing a plan of reorganization, reaching agreements with the Debtors' prepetition unions or otherwise commencing Section 1113 and/or 1114 proceedings, filing a motion for a sale of the Debtors' assets, and confirmation and consummation of a Plan. As adequate protection of the interests of the lenders owed $38 million under prepetition ABL revolving facility, the proposed interim order approving the DIP financing provides that unless otherwise agreed-to by Deutsche Bank AG, New York Branch, as Prepetition ABL Agent, or ordered by the Court, the use of cash collateral will terminate after seven days of the Debtors' failure to achieve any of these milestones (the "ABL/LC Milestones"): (i) entry into a binding stalking horse asset purchase agreement for the sale of at least four mines and related assets through an auction to be consummated through a chapter 11 plan by June 30, 2015; (ii) entry of a Court order approving the winning bidder at the auction by Sept. 18, 2015; and (iii) closing/effective date of the Plan by Nov. 30, 2015; Cantor Fitzgerald Securities, as postpetition administrative agent, may extend the ABL/LC Milestones in its sole discretion for a period up to but no more than four weeks, and any such extension will be binding on the Prepetition ABL Agent and Prepetition ABL Lenders. About Patriot Coal Patriot Coal Corporation is a producer and marketer of coal in the United States. Patriot and its subsidiaries control 1.4 billion tons of proven and probable coal reserves -- including owned and leased assets in the Central Appalachia basin (in West Virginia and Ohio) and Southern Illinois basin (in Kentucky and Illinois) -- and their operations consist of eight active mining complexes in West Virginia. Patriot Coal first sought Chapter 11 protection on July 9, 2012, and, on Dec. 18, 2013, won approval of its bankruptcy-exit plan from the U.S. Bankruptcy Court for the Eastern District of Missouri. The plan turned over most of the ownership of the company to bondholders that include New York hedge fund Knighthead Capital Management LLC. The linchpins of the plan were a global settlement among the Debtors, the United Mine Workers of America, and two third parties -- Peabody Energy Corporation and Arch Coal, Inc. -- and a commitment by a consortium of creditors, led by Knighthead, to backstop two rights offerings that funded the plan. Patriot Coal Corporation and its subsidiaries commenced new Chapter 11 cases (Bankr. E.D. Va. Lead Case No. 15-32450) in Richmond, Virginia, on May 12, 2015. The cases are assigned to Judge Keith L. Phillips. The Debtors tapped Kirkland & Ellis LLP as counsel; Kutak Rock L.L.P., as co-counsel; Centerview Partners LLC as investment bankers; Alvarez & Marsal North America, LLC, as restructuring advisors; and Prime Clerk LLC, as claims and administrative agent. Patriot Coal estimated more than $1 billion in assets and debt. PGI INCORPORATED: Posts $1.88 Million Net Loss in First Quarter --------------------------------------------------------------- PGI Incorporated filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.88 million on $3,000 of revenues for the three months ended March 31, 2015, compared to a net loss of $1.85 million on $4,000 of revenues for the same period in 2014. As of March 31, 2015, the Company had $994,000 in total assets, $86 million in total liabilities and a $85.01 million stockholders' deficiency. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ttf7j6 About PGI Incorporated St. Louis, Mo.-based PGI Incorporated, a Florida corporation, was founded in 1958, and up until the mid 1990's was in the business of building and selling homes, developing and selling home sites and selling undeveloped or partially developed tracts of land. Over approximately the last 15 years, the Company's business focus and emphasis changed substantially as it concentrated its sales and marketing efforts almost exclusively on the disposition of its remaining real estate. This change was prompted by its continuing financial difficulties due to the principal and interest owed on its debt. Presently, the most valuable remaining asset of the Company is a parcel of 366 acres located in Hernando County, Florida. The Company also owns a number of scattered sites in Charlotte County, Florida (the "Charlotte Property"), but most of these sites are subject to easements which markedly reduce their value and/or consist of wetlands of indeterminate value. As of Dec. 31, 2011, the Company also owned six single family lots, located in Citrus County, Florida. PGI incurred a net loss of $6.51 million in 2014 following a net loss of $6.9 million in 2013. BKD, LLP, in St. Louis, Missouri, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has a significant accumulated deficit, and is in default on its primary debt, certain sinking fund and interest payments on its convertible subordinat PHYSICAL PROPERTY: Posts HK$154,000 Net Loss in First Quarter ------------------------------------------------------------- Physical Property Holdings Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss and comprehensive loss of HK$154,000 on HK$288,000 of total operating revenues for the three months ended March 31, 2015, compared to a net loss and comprehensive loss of HK$178,000 on HK$277,000 of total operating revenues for the same period last year. As of March 31, 2015, the Company had HK$9.32 million in total assets, HK$11.8 million in total liabilities, all current, and a $2.48 million total stockholders' deficit. Cash and cash equivalent balances as of March 31, 2015, and Dec. 31, 2014, were HK$63,000 (US$8,000). The Company had negative working capital of HK$11.7 million as of March 31, 2015, and incurred losses of HK$154,000 and HK$178,000 for the three months ended March 31, 2015, and 2014 respectively. These conditions raised substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Fdw7zo Physical Property Holdings Inc. Physical Property disclosed a net loss and comprehensive loss of HK$820,000 on HK$1.05 million of rental revenue for the year ended Dec. 31, 2014, compared with a net loss and comprehensive loss of HK$459,000 on HK$1.05 million of rental revenue for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had HK$9.39 million in total assets, HK$11.7 million in total liabilities, all current, and a $2.32 million total stockholders' deficit. Mazars CPA Limited, in Hong Kong, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company had a negative working capital as of Dec. 31, 2014, and incurred loss for the year then ended, which raised substantial doubt about its ability to continue as a going concern. PITTSBURGH GLASS: Moody's Raises CFR to 'B2', Outlook Stable ------------------------------------------------------------ Moody's Investors Service upgraded Pittsburgh Glass Works, LLC's Corporate Family Rating to B2 from B3 and Probability of Default Rating to B2-PD from B3-PD. In a related action, the rating on the company's $324 million 8% senior secured notes was upgraded to B2 from B3. The rating outlook is stable. The upgrade of PGW's CFR to B2 from B3 reflects the continued operating performance improvement in the business driven by strong sales growth in both the company's OEM and aftermarket replacement glass segments. The upgrade further reflects the use of proceeds from the sale of the Insurance & Services business which were partially utilized to reduce outstanding debt, accelerating credit metric improvement and improving the company's liquidity profile. The following rating actions were taken: -- Corporate Family Rating, upgraded to B2 from B3; -- Probability of Default, upgraded to B2-PD from B3-PD; -- $324 million 8% senior secured notes due 2018, upgraded to B2 (LGD4) from B3 (LGD4); -- Outlook is stable. PGW's B2 Corporate Family Rating reflects the company's reduced leverage levels, good liquidity profile, leadership position in the automotive glass industry, and the progress that the company has made toward improving operating performance in its domestic and foreign facilities. PGW has benefitted from improved volume and pricing in both its automotive OEM and automotive replacement glass segments, as well as better manufacturing performance. Moody's expects the improving North American and European automotive conditions throughout 2015 to modestly help the company's operating performance. The rating is constrained by the company's exposure to the cyclical automotive end market, North American regional and customer concentrations, and the competitive automotive glass industry. The stable outlook reflects Moody's expectation that PGW's growth will be supported by positive regional automotive demand trends in North America over the intermediate-term, while maintaining a good liquidity profile. Future events that have the potential to drive PGW's outlook or ratings lower include: reduced automotive demand which inhibits the company's ability to improve profitability and margins; customer or market share losses in either of the company's segments, disruptions in the company's manufacturing operations; or a deterioration in liquidity. Consideration for a lower rating could arise if any combination of these factors results in Debt/EBITDA over 5x, EBITA/interest coverage maintained below 1.5x, or the lack of positive free cash flow generation. Debt financed dividends or acquisitions could also result in a downgrade. Future events that have the potential to drive PGW's outlook or ratings higher include: improvement in operating performance which results in Debt/EBITDA below 3.5x, and EBITA/Interest sustained above 2.5x, combined with free cash flow to adjusted debt in the high single digits. The principal methodology used in these ratings was Global Automotive Supplier Industry published in May 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. Pittsburgh Glass Works manufactures, fabricates and delivers glass products and solutions to automotive OEMs directly or through third party suppliers; manufactures automotive replacement glass ("ARG") and distributes related sundries to the glass replacement aftermarket. The company is owned by affiliates of Kohlberg and Company, and PPG Industries, Inc. Net sales for last twelve month period ended March 31, 2015 were approximately $1 billion. POSITRON CORP: Posts $554,000 Net Loss in First Quarter ------------------------------------------------------- Positron Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $554,000 on $346,000 of sales for the three months ended March 31, 2015, compared to a net loss of $861,000 on $456,000 of sales for the same period in 2014. As of March 31, 2015, the Company had $1.68 million in total assets, $2.63 million in total liabilities and a $953,000 total stockholders' deficit. "The Company had cash and cash equivalents of $79,000 at March 31, 2015. At the same date, the Company had accounts payable and accrued liabilities of $807,000 and a negative working capital of $2,034,000. Working capital requirements for the upcoming year will reach beyond our current cash balances. The Company plans to continue to raise funds as required through equity and debt financing to sustain business operations. These factors raise substantial doubt about the Company's ability to continue as a going concern," according to the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/7ojQPl About Positron Corporation Headquartered in Fishers, Indiana, Positron Corporation is a molecular imaging company focused on nuclear cardiology. Positron reported a net loss of $2.58 million on $1.46 million of sales for the year ended Dec. 31, 2014, compared to a net loss of $7.1 million on $1.63 million of sales for the year ended Dec. 31, 2013. Sassetti LLC, in Oak Park, Illinois, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has a significant accumulated deficit which raises substantial doubt about the Company's ability to continue as a going concern. PRA HOLDINGS: S&P Affirms 'B' CCR & Revises Outlook to Positive --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Raleigh, N.C.-based PRA Holdings Inc. and revised the outlook to positive from stable. At the same time, S&P raised the rating on the senior secured first-lien credit facility to 'B+' from 'B' and revised the recovery rating on this debt to '2' from '4', indicating S&P's expectation for substantial (70% to 90%; at the low end of the range) recovery in the event of payment default. S&P also raised the rating on the senior unsecured debt to 'B-' from 'CCC+' and revised its recovery rating on this debt to '5' from '6', indicating S&P's expectations for modest recovery (10% to 30%; at the low end of the range) in the event of default. "The rating on PRA continues to reflect our assessment of a 'highly leveraged' financial risk profile, highlighted by adjusted debt leverage of over 5x and majority-owned sponsor ownership," said Standard & Poor's credit analyst Arthur Wong. S&P's assessment of a "fair" business risk profile reflects the company's size and scale, diversity of clients, and top five position in the fragmented CRO industry. PRA is one of the leading players in the CRO industry, which S&P projects to grow in the mid-single-digit range, benefiting from increasing R&D activity among the midsized pharmaceutical and biotech participants as well as increased rates of outsourcing among Big Pharma. S&P expects both the large pharmaceutical companies and their smaller biotechnology counterparts to continue outsourcing a growing portion of their development efforts because of internal cost pressures, a focus on core competencies, the lack of infrastructure to perform functions in-house, and the increasing complexity of U.S. Food and Drug Administration (FDA) requirements and protocols. PRA historically has relied heavily on the more volatile contracts of biotechnology and smaller drug companies, but has expanded the large pharmaceutical client portion of its business with the acquisition of ReSearch Pharmaceutical Services (RPS). The addition of RPS lends some stability due to the recurring nature of the embedded business, and may allow PRA to diversify its business further into the larger pharmaceutical company segment. Margins declined following the acquisition, given the lower margins of the RPS book of business, though S&P projects that margins will steadily increase. EBITDA margins are roughly at 16%, climbing from low-double-digit rates immediately following the acquisition of RPS, though this is still slightly below the 17% plus prior to the acquisition. The positive outlook on PRA reflects the possibility of an upgrade if, as S&P expects, the company continues to steadily de-lever to under 5x and improves free cash flow. S&P projects that the company will continue to execute on its RPS integration, and that leverage will steadily decline to under 5x by the end of 2015, through a combination of increasing margins and EBITDA and steady debt reduction. If leverage remains under 5x over the longer term, S&P could raise the ratings as early as the end of 2015. S&P could revise the outlook to stable if it believes that PRA's adjusted debt to EBITDA would remain above 5x over the longer term as a result of a significant debt-financed acquisition, an unlikely setback in operating performance, or an unforeseen share repurchase program. While S&P do not believe its majority owner, KKR, would divest it share holdings over the next year, it would view a move by the company to repurchase shares via a significant debt financing negatively. PRECISION OPTICS: Posts $198,000 Net Loss in Third Quarter ---------------------------------------------------------- Precision Optics Corporation, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $198,000 on $1.14 million of revenue for the three months ended March 31, 2015, compared to a net loss of $380,000 on $833,000 of revenue for the same period in 2014. For the nine months ended March 31, 2015, the Company reported a net loss of $816,000 on $2.94 million of revenues compared to a net loss of $844,000 on $2.74 million of revenues for the same period last year. As of March 31, 2015, the Company had $2.22 million in total assets, $1.31 million in total liabilities, all current, and $914,000 in total stockholders' equity. As of March 31, 2015, cash and cash equivalents were $283,000, accounts receivable were $542,000, and current liabilities were $1.31 million. As of June 30, 2014, cash and cash equivalents were $202,000, accounts receivable were $531,000, and current liabilities were $1.096 million. "We have traditionally funded working capital needs through product sales, management of working capital components of our business, and by cash received from public and private offerings of our common stock, warrants to purchase shares of our common stock or convertible notes. We have incurred quarter to quarter operating losses during our efforts to develop current products including Microprecision optical elements, micro medical camera assemblies and 3D endoscopes. Our management believes that the opportunities represented by these products have the potential to generate sales increases to achieve breakeven and profitable results," the Company said. "Until we achieve breakeven and profitable results, we will be required to pursue several options to manage cash flow and raise capital, including issuing debt or equity or entering into a strategic alliance. The sale of additional equity or convertible debt securities, if converted into common stock, would result in additional dilution to our current stockholders, and debt financing, if available, may involve restrictive covenants that could restrict our operations or finances. Financing may not be available in amounts or on terms acceptable to us, if at all. If we cannot raise funds on acceptable terms or achieve positive cash flow, we may not be able to continue to conduct operations, develop new products, grow market share, take advantage of future opportunities or respond to competitive pressures or unanticipated requirements, any of which would negatively impact our business, operating results and financial condition." A full-text copy of the Form 10-Q is available for free at: http://is.gd/CHRaKB About Precision Optics Headquartered in Gardner, Massachusetts, Precision Optics Corporation, Inc., has been a developer and manufacturer of advanced optical instruments since 1982. The Company designs and produces high-quality micro-optics, medical instruments and other advanced optical systems. The Company's medical instrumentation line includes laparoscopes, arthroscopes and endocouplers and a world-class product line of 3-D endoscopes for use in minimally invasive surgical procedures. Precision Optics reported a net loss of $1.16 million on $3.65 million of revenues for the year ended June 30, 2014, compared to a net loss of $1.78 million on $2.51 million of revenues for the year ended June 30, 2013. Precision Optics reported a net loss of $380,000 for the quarter ended March 31, 2014. PRESIDENTIAL REALTY: Reports $159,000 Net Loss in First Quarter --------------------------------------------------------------- Presidential Realty Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $159,000 on $231,000 of total revenues for the three months ended March 31, 2015, compared to a net loss of $265,000 on $220,000 of total revenues for the same period last year. As of March 31, 2015, the Company had $1.1 million in total assets, $1.97 million in total liabilities and a $865,290 total deficit. At March 31, 2015, the Company had $390,000 in available cash, a decrease of $53,100 from $443,000 available at Dec. 31, 2014. This decrease in cash and cash equivalents was due to cash used in operating activities of $45,600, cash used in investing activities of $1,094, and $6,436 of principal payments made on the Mapletree Industrial Center mortgage. A full-text copy of the Form 10-Q is available for free at: http://is.gd/3e6bh6 About Presidential Realty Headquartered in White Plains, New York, Presidential Realty Corporation, a real estate investment trust, is engaged principally in the ownership of income-producing real estate and in the holding of notes and mortgages secured by real estate or interests in real estate. On Jan. 20, 2011, Presidential stockholders approved a plan of liquidation, which provides for the sale of all of the Company's assets over time and the distribution of the net proceeds of sale to the stockholders after satisfaction of the Company's liabilities. Presidential Realty reported net income of $2.47 million on $847,000 of total revenues for the year ended Dec. 31, 2013, as compared with a net loss of $2.33 million on $780,000 of total revenues in 2012. Baker Tilly Virchow Krause, LLP, in Melville, 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 suffered recurring losses from operations and has a working capital deficiency. These factors raise substantial doubt about its ability to continue as a going concern. PRESSURE BIOSCIENCES: Incurs $2.06 Million Net Loss in Q1 --------------------------------------------------------- Pressure Biosciences, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss applicable to common shareholders of $2.06 million on $440,000 of total revenue for the three months ended March 31, 2015, compared to a net loss applicable to common shareholders of $3.08 million on $404,000 of total revenue for the same period in 2014. As of March 31, 2015, the Company had $1.5 million in total assets, $4.72 million in total liabilities and a $3.22 million total stockholders' deficit. "We have experienced negative cash flows from operations with respect to our pressure cycling technology business since our inception. As of March 31, 2015, we did not have adequate working capital resources to satisfy our current liabilities and as a result, we have substantial doubt regarding our ability to continue as a going concern. We have been successful in raising cash through debt and equity offerings in the past and ... completed debt-financing subsequent to March 31, 2015. We have efforts in place to continue to raise cash through debt and equity offerings. We will need substantial additional capital to fund our operations in future periods. In the event that we are unable to obtain financing on acceptable terms, or at all, we will likely be required to cease our operations, pursue a plan to sell our operating assets, or otherwise modify our business strategy, which could materially harm our future business prospects," the Company said in the filing. A copy of the Form 10-Q is available for free at: http://is.gd/G4PW7X About Pressure Biosciences Pressure BioSciences, Inc., headquartered in South Easton, Massachusetts, holds 14 United States and 10 foreign patents covering multiple applications of pressure cycling technology in the life sciences field. Pressure Biosciences reported a net loss applicable to common shareholders of $6.25 million on $1.37 million of revenue for the year ended Dec. 31, 2014, compared to a net loss applicable to common shareholders of $5.24 million on $1.5 million of total revenue for the year ended Dec. 31, 2013. Marcum LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, noting that the Company has had recurring net losses and continues to experience negative cash flows from operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. PROJECT BARBOUR: Moody's Cuts Ratings on $1.1BB Secured Loans to B2 ------------------------------------------------------------------- Moody's Investors Service changed the ratings for Project Barbour Holdings Corporation's proposed senior secured credit facilities to B2, from B1, as a result of the announced change in the company's capital structure. Concurrently, Moody's affirmed Project Barbour Holdings Corporation's B3 Corporate Family Rating (CFR), B3-PD Probability of Default Rating and the Caa2 rating for its proposed senior unsecured notes. The ratings outlook remains stable. Under the revised capital structure, the senior secured credit facilities will be increased by $100 million with a commensurate reduction in the issue size of the senior unsecured notes. Ratings downgraded: -- $100 million Senior Secured First Lien Revolving Credit Facility due 2020, to B2 (LGD3), from B1 (LGD3) -- $1,150 million (upsized from $1,050 million) Senior Secured First Lien Term Loan due 2022, to B2 (LGD3), from B1 (LGD3) Ratings affirmed: -- Corporate Family Rating -- B3 -- Probability of Default Rating -- B3-PD -- $470 million (downsized from $570 million) Senior Notes due 2023 -- Caa2 (LGD5) -- Outlook:Stable In accordance with its Loss Given Default methodology, Moody's revised Project Barbour Holdings Corporation's senior secured credit facilities to B2, from B1. The downgrade reflects a higher expected loss for the first lien credit facilities as a result of the increase in the first lien debt relative to total debt in the capital structure. The company also announced it expects a slightly lower pricing on the first lien credit facilities than previously contemplated, which coupled with the changes in capital structure, will yield modest interest expense savings. Project Barbour Holdings Corporation's legal name is expected to change to Blue Coat Holdings, Inc. ("Blue Coat") upon the completion of Blue Coat Systems, Inc.'s proposed acquisition by funds affiliated with Bain Capital, from Thoma Bravo LLC. The B3 CFR principally reflects Blue Coat's very high initial leverage of approximately 8x (Moody's adjusted), its narrow product portfolio and reliance on one-time product sales that comprise a high proportion of product revenues. Although leverage is expected to decline from earnings growth, Blue Coat has limited margin for execution missteps over the next 12 to 24 months because of its elevated leverage. The B3 CFR is supported by its leading position in the niche Secure Web Gateway appliances market and its recurring services revenues that are expected to grow faster than the product revenues and now comprise about 52% of its total revenues. Blue Coat has a large and diverse installed base of Secure Web Gateway customers that account for majority of its new product sales and a significant portion of its services revenue. Although Moody's expects Blue Coat's revenue growth to accelerate to about 7% to 8% over the next 12 to 24 months, total debt to EBITDA (Moody's adjusted) will remain high and decline to about 7x by fiscal year ending in April 2017. High debt service costs will also limit free cash flow to about 3% to 4% of total debt over this period. Moody's expects Blue Coat to maintain good liquidity. The stable ratings outlook reflects Moody's expectations of good revenue growth and deleveraging toward 7x over the next 12 to 18 months. Moody's could raise Blue Coat's ratings if revenue growth remains in the high single digit percentages, total debt to EBITDA (Moody's adjusted) declines and could be sustained below 6.5x, and free cash flow increases to the mid-to-high single digit percentages of total debt. Blue Coat's ratings could be downgraded if liquidity deteriorates or revenue and operating cash flow growth declines to the low single digit percentages for an extended period of time as a result of intensifying competition or execution challenges. Moody's could downgrade Blue Coat's ratings if total debt-to-EBITDA (Moody's adjusted) is unlikely to be sustained below 7.5x and free cash flow declines to the low single digit percentages of total debt on other than a temporary basis. Headquartered in Sunnyvale, CA, Blue Coat Systems, Inc., is a leading provider of Internet security and wide area network acceleration solutions. Blue Coat reported $613 million in revenues under U.S. GAAP for the twelve months ended January 2015. The principal methodology used in these ratings was Global Software 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. PURADYN FILTER: Posts $266,000 Net Loss in First Quarter -------------------------------------------------------- Puradyn Filter Technologies Incorporated filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $266,000 on $707,000 of net sales for the three months ended March 31, 2015, compared to a net loss of $218,000 on $894,000 of net sales for the same period in 2014. As of March 31, 2015, the Company had $1.67 million in total assets, $13.1 million in total liabilities and a $11.4 million total stockholders' deficit. Kevin G. Kroger, president and COO, commented, "Our Q1 results were certainly impacted by reduced activity in our targeted markets as well as port congestion that delayed shipment of a sizeable order. However, we still are positive regarding 2015 as our product continues to gain awareness for its ability to reduce operating costs and improve utilization of maintenance resources. Importantly, we are seeing very solid interest and demand for our new Millennium Technology System (MTS) filtration systems with patented Polydry replacement filter element technology. "We continue to work hard to initiate long-term growth of the filtration system population with a major global company in Europe that recently completed a lengthy evaluation of our solutions. Additionally, new partnerships with distributors based outside the U.S. may help support our international sales effort. Finally, we have several substantial customer prospects in various stages of product testing, including a large contractor that recently commenced offshore testing of our systems as well as several commercial marine fleets. For these reasons, as well as those mentioned above, we remain optimistic about our outlook for the balance of 2015." A full-text copy of the Form 10-Q is available for free at: http://is.gd/y6Ohhj About Puradyn Filter Boynton Beach, Fla.-based Puradyn Filter Technologies Incorporated (OTC BB: PFTI) designs, manufactures and markets the puraDYN's Oil Filtration System. Puradyn Filter reported a net loss of $1.15 million on $3.11 million of net sales for the year ended Dec. 31, 2014, compared to a net loss of $1.33 million on $2.53 million of net sales for the year ended Dec. 31, 2013. Liggett, Vogt & Webb, P.A., in Boynton Beach, Florida, 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 incurred net losses each year since inception and has relied on the sale of its stock and loans from third parties and related parties to fund its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. QUALITY DISTRIBUTION: Postpones 2015 Annual Meeting --------------------------------------------------- Quality Distribution, Inc.'s Board of Directors has determined to postpone the 2015 Annual Meeting of Shareholders, originally scheduled for May 28, 2015. The postponement is due to the Company's recent announcement that it has entered into a definitive merger agreement, dated May 6, 2015, to be acquired by funds advised by Apax Partners, L.P. At a later date, the Company will provide information related to a rescheduled shareholder meeting. About Quality Distribution Quality Distribution, LLC, and its parent holding company, Quality Distribution, Inc., are headquartered in Tampa, Florida. The company is a transporter of bulk liquid and dry bulk chemicals. The company's 2010 revenues are approximately $686 million. Apollo Management, L.P., owns roughly 30 percent of the common stock of Quality Distribution, Inc. As of March 31, 2015, the Company had $418 million in total assets, $445 million in total liabilities and a $26.9 million total shareholders' deficit. Bankruptcy Warning "We have substantial indebtedness and may not be able to make required payments on our indebtedness. We had consolidated indebtedness and capital lease obligations, including current maturities of $351.3 million, as of December 31, 2014. We must make regular payments under the ABL Facility, including the Term Loan, thereunder, and our capital leases and semi-annual interest payments under our 2018 Notes. The ABL will mature at the earlier of November 2019 and the date that is 91 days prior to the maturity of the Company's currently outstanding 2018 Notes or any replacement notes if the outstanding amount of such debt is above a certain threshold. The Term Loan matures on November 3, 2017 but we are subject to mandatory prepayment of the principal amount of the Term Loan in equal quarterly payments beginning as early as November 2015. The maturity date of the ABL Facility, including the Term Loan, may be accelerated if we default on our obligations. If the maturity of the ABL Facility and/or such other debt is accelerated, we may not have sufficient cash on hand to repay the ABL Facility and/or such other debt or be able to refinance the ABL Facility and/or such other debt on acceptable terms, or at all. The failure to repay or refinance the ABL Facility and/or such other debt at maturity would have a material adverse effect on our business and financial condition, would cause substantial liquidity problems and may result in the bankruptcy of us and/or our subsidiaries. Any actual or potential bankruptcy or liquidity crisis may materially harm our relationships with our customers, suppliers and independent affiliates," the Company states in its 2014 annual report. * * * As reported in the TCR on June 28, 2013, Moody's Investors Service upgraded Quality Distribution, LLC's Corporate Family Rating to 'B2' from 'B3' and Probability of Default Rating to 'B2-PD' from 'B3-PD'. The upgrade of Quality's CFR to 'B2' was largely driven by the expectation that credit metrics will improve over the next twelve to eighteen months, through a combination of EBITDA growth and debt paydowns, to levels consistent with the 'B2' rating level. The company is in the process of integrating the bolt-on acquisitions made in its Energy Logistics business sector since 2011. QUANTUM CORP: Files Conflict Minerals Report with SEC ----------------------------------------------------- Quantum Corporation has evaluated its current products and determined that certain products it manufactures or contract to manufacture contain tin, tungsten, tantalum and/or gold. "Following our initial determination that our hardware products contain components that contain 3TG minerals, Quantum conducted an RCOI to determine which components contain 3TG minerals and whether such 3TG minerals originated in the Covered Countries. Our RCOI was based on a survey of our direct suppliers of parts, components and assemblies containing conflict minerals. We requested that the EICC GeSI conflict minerals reporting template be completed. Over 75% of our suppliers responded. Based on those responses, Quantum determined that 3TG minerals present in certain of its products may have originated in the Covered Countries and were not from scrap or recycled sources. Therefore, in accordance with Rule 13p-1, Quantum proceeded to engage in due diligence regarding the sources and chain of custody of its 3TG minerals," the Company said. "We have identified over 200 direct suppliers whose components may contain 3TG minerals. We rely on these suppliers to provide us with information about the source of conflict minerals contained in the components supplied to us based on the EICC GeSI conflict minerals reporting template. Our direct suppliers are similarly reliant upon information provided by their suppliers. Many of the largest suppliers are also SEC registrants and subject to Rule 13p-1. A copy of the Company's Conflict Minerals Report is available for free at http://is.gd/yN6ktL About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. Quantum Corporation incurred a net loss of $21.5 million on $553 million of total revenue for the year ended March 31, 2014, as compared with a net loss of $52.2 million on $587 million of total revenue for the year ended March 31, 2013. The Company's balance sheet at Dec. 31, 2014, showed $374 million in total assets, $451 million in total liabilities and a $76.7 million total stockholders' deficit. RANCH 967 LLC: U.S. Trustee Unable to Form Creditors Committee -------------------------------------------------------------- Judy A. Robbins, United States Trustee for Region 7, informed the U.S. Bankruptcy Court for the Western District of Texas that there was no interest in forming a creditors committee at the creditors meeting for Ranch 967 LLC held on March 31, 2015 because an insufficient number of unsecured creditors appeared at that meeting. The U.S. Trustee has been unable to appoint an Unsecured Creditors Committee as contemplated by 11 U.S.C. Sec. 1102. Ranch 967 LLC, a single asset real estate, filed a Chapter 11 bankruptcy petition (Bankr. W.D. Tex. Case No. 15-10314) on March 3, 2015. The petition was signed by Frank J. Carmel as managing member. The Debtor estimated assets and liabilities of $10 million to $50 million. Eric J. Taube, Esq., at Hohmann Taube & Summers, LLP, represents the Debtor as counsel. Judge Tony M. Davis presides over the case. RCC CONSULTANTS: May 20 Meeting Set to Form Creditors' Panel ------------------------------------------------------------ Andy Vara, Acting United States Trustee for Region 3, will hold an organizational meeting on May 20, 2015, at 10:00 a.m. in the bankruptcy case of RCC Consultants, Inc. The meeting will be held at: United States Trustee's Office One Newark Center, 1085 Raymond Blvd. 21st Floor, Room 2106 Newark, NJ 07102 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' case. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. Corinthian Colleges, which in 2014 had more than 100 campuses all over the U.S. and Canada, sought bankruptcy protection to complete an orderly wind down of its operations. Corinthian Colleges, Inc., Pegasus Education, Inc., and 23 affiliated entities filed voluntary Chapter 11 petitions (Bankr. D. Del. Lead Case No. 15-10952) on May 4, 2015. The cases are assigned to Judge Kevin J. Carey. The Debtors tapped Richards, Layton & Finger, P.A., as counsel; FTI Consulting, Inc., as restructuring advisors; and Rust Consulting/Omni Bankruptcy as claims and noticing agent. Corinthian Colleges estimated $10 million to $50 million in assets and $100 million to $500 million in debt. As of the Petition Date, Corinthian has outstanding obligations of $94.4 million in aggregate principal amount, in respect of prepetition domestic loans, $8.9 million in aggregate principal amount, in respect of domestic letters of credit issued, and CAD$2.3 million in aggregate principal amount, in respect of Canadian letters of credit issued under a credit agreement with Bank of America, N.A., as administrative agent. As reported in the Troubled Company Reporter on May 8, 2015, 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. RECOVERY CENTERS OF KING COUNTY: Rehab Facility Enters Ch. 11 ------------------------------------------------------------- Recovery Centers of King County, a Seattle, Washington-based provider of treatment and related services for people suffering with alcoholism or drug addiction, has sought Chapter 11 bankruptcy protection. The Company promptly filed schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $9,890,600 B. Personal Property $692,291 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $4,735,436 E. Creditors Holding Unsecured Priority Claims $129,278 F. Creditors Holding Unsecured Non-priority Claims $206,136 ----------- ----------- TOTAL $10,582,891 $5,070,850 According to the Schedules, the Debtor owns three properties: 1701 18th Ave. So, in Seattle (current value of $3.86 million), 464 12th Ave., in Seattle ($4.10 million), and 505 Washington Ave So, in Kent ($1.93 million). In its statement of financial affairs, the Company disclosed that income from business operations was $5.69 million in 2013, $5.65 million in 2014, and $1.21 million in 2015 to date. A copy of the SALs and SOFA, filed together with the bankruptcy petition, is available for free at: http://bankrupt.com/misc/wawb15-13060_SAL.pdf * * * According to reporting by The Stranger, RCKC was a contractor with King County but the nonprofit went out of business this year, abruptly closing its 27-bed facility in King County. About Recovery Centers of King County Recovery Centers of King County -- http://www.rckc.org/-- provides Central Seattle and South King County residents with a continuum of care for those who suffer with alcoholism or other drug addiction. RCKC filed a Chapter 11 case (Bankr. W.D. Wash. Case No. 15-13060) in its hometown in Seattle, Washington on May 15, 2015. The case is assigned to Judge Timothy W. Dore. The Debtor tapped Jeffrey B Wells, Esq., at Wells and Jarvis, P.S., in Seattle, as counsel. According to the docket, the appointment of a health care ombudsman is due by June 15, 2015. RECOVERY CENTERS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Recovery Centers Of King County 464 12th Ave Seattle, WA 98122 Case No.: 15-13060 Nature of Business: Health Care Chapter 11 Petition Date: May 15, 2015 Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Hon. Timothy W. Dore Debtor's Counsel: Jeffrey B Wells, Esq. WELLS AND JARVIS, P.S. 500 Union St Ste 502 Seattle, WA 98101 Tel: 206-624-0088 Email: paralegal@wellsandjarvis.com Total Assets: $10.58 million Total Liabilities: $5.07 million The petition was signed by James Nickerson, president. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ 501 C Agencies Trust $25,000 Pioneer Human Services $22,579 Group Health Cooperative $19,000 ONCALL 24/7 $15,135 Evergreen Manor $15,000 ALSCO $12,054 Clark Nuber PS $9,042 Sterling Reference Laboratories $8,592 Business Card $8,000 Jazmin Carter-Allen $7,950 Ryan Parry $7,552 City Of Seattle Utilities $7,500 Karis Bjerke $6,459 Lisa Roger $6,282 Ameeca Akram $6,161 Stephanie Reavis $5,947 Liana Martinez $5,752 Gregory Berry $5,460 Lighthouse Consulting $5,429 Marilyn Rusness $5,100 RICEBRAN TECHNOLOGIES: Posts $3.6M Net Loss in First Quarter ------------------------------------------------------------ RiceBran Technologies filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.64 million on $9.65 million of revenues for the three months ended March 31, 2015, compared to a net loss of $2.78 million on $7.68 million of revenues for the same period in 2014. As of March 31, 2015, the Company had $39.7 million in total assets, $26.3 million in total liabilities, $1.37 million in temporary equity, and $12.0 million in total equity. "In 2014 and the first three months of 2015, we continued to experience losses and negative cash flows from operations which raises substantial doubt about our ability to continue as a going concern. We believe that we will be able to obtain additional funds to operate our business, should it be necessary, however, there can be no assurances that our efforts will prove successful," the Company said in the filing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/171J9G About RiceBran Scottsdale, Ariz.-based RiceBran Technologies, a California corporation, is a human food ingredient and animal nutrition company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. RiceBran Technologies reported a net loss of $17.6 million on $35.05 million of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $11.1 million on $37.7 million of revenues for the year ended Dec. 31, 2012. BDO USA, LLP, in Phoenix, Arizona, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations resulting in an accumulated deficit of $219 million at Dec. 31, 2013. This factor among other things, raises substantial doubt about its ability to continue as a going concern. RIENZI & SONS: Hires Funaro & Co as Accountants ----------------------------------------------- Rienzi & Sons, Inc. seeks authorization from the U.S. Bankruptcy Court for the Eastern District of New York to employ Funaro & Co., P.C. as accountants, nunc pro tunc to March 3, 2015. The Debtor requires the services of Funaro & Co to prepare financial statements and file corporate taxes. Funaro & Co's requested compensation for professional services rendered to the Debtor shall be $380 per hour. Funaro & Co will also be reimbursed for reasonable out-of-pocket expenses incurred. Sheldon Satlin, of Counsel to Funaro & Co, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Funaro & Co can be reached at: Sheldon Satlin FUNARO & CO., P.C. Empire State Building 350 Fifth Avenue, 41st Floor New York, NY 10118 Tel: (212) 947-3333 Fax: (212) 947-4725 E-mail: sheldon.satlin@funaro.com Rienzi & Sons, Inc., filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.Y. Case No. 15-40926) on March 3, 2015. The petition was signed by Michael Rienzi as president. The Debtor estimated assets and debts of $10 million to $50 million. Vincent J Roldan, Esq., and Michael J. Sheppeard, Esq., at Ballon Stoll Bader & Nadler P.C., serve as counsel to the Debtor. Judge Nancy Hershey Lord presides over the Chapter 11 case. RIENZI & SONS: UST Forms 5-Member Creditors Committee ----------------------------------------------------- William K. Harrington, the United States Trustee for Region 2, under 11 U.S.C. Sec. 1102(a) and (b), appointed five unsecured creditors who are willing to serve on the Official Committee of Unsecured Creditors of Rienzi & Sons, Inc.: 1. Banco Popolare Societa Cooperative Piazza Nogara, 2 37121 Verona, Italy Attn: Paola Maria Di Leonardo Tel. +39045-867-5321 2. Franzese SPA Via Traverso Corso Nuovo, 33 80036 Palma Campania, Napoli, Italy Attn: Franzese Salvatore Miefiele Tel. 0039-081-824-6505 3. N. Puglisi & F. Industria Pasta Alimentaria S.PA. Studio Barila Via Osservatorio, 1 98121 Messina, Italy Attn: Francesco Pulejo Tel. (212) 269-5600, ext. 200 4. Colombo Importing US Inc. 3700 Steeles Ave. W. Suite 702 Woodbridge, Ontario L4L 8K8 Attn: Patrick Pelliccione Tel. (905) 850-9010, ext. 2231 5. Acetificio Marcello de Nigris SRL Via Badagnano, 1 80021 Afragola – Naples, Italy Attn: Raffaele de Nigris Tel. +39 0818526000 Rienzi & Sons, Inc., filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.Y. Case No. 15-40926) on March 3, 2015. The petition was signed by Michael Rienzi, the president. The Debtor estimated assets and debts of $10 million to $50 million. Vincent J Roldan, Esq., and Michael J. Sheppeard, Esq., at Ballon Stoll Bader & Nadler P.C., serve as counsel to the Debtor. Judge Nancy Hershey Lord presides over the Chapter 11 case. SAN JUAN RESORT: Files Amended Schedules of Assets and Debts ------------------------------------------------------------ San Juan Resort Owners Inc. filed with the U.S. Bankruptcy Court for the District of Puerto Rico an amended summary of schedules of assets and liabilities, and statements of financial affairs, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $11,000,000 B. Personal Property $1,787,943 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $17,625,152 E. Creditors Holding Unsecured Priority Claims $929,627 F. Creditors Holding Unsecured Non-Priority Claims $14,459,439 ----------- ------------ Total $12,787,943 $33,014,219 A full-text copy of the Debtor's schedules is available for free at http://is.gd/wQtJ9z About San Juan Resort San Juan Resort Owners Inc. sought Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 15-01627) in Old San Juan, Puerto Rico on March 5, 2015. The petition was signed by Luis A. Carreras Perez as president. The Debtor is represented by William M. Vidal, Esq., at William Vidal Carvajal Law Offices in San Juan, Puerto Rico. The Debtor disclosed total assets of $12.7 million and total liabilities and $32.9 million as of the bankruptcy filing. The Debtor owns a parcel of land of 1,637 square meters, with commercial property known as the San Juan Beach Hotel, a 96-room hotel. The hotel is located at 1045, Ashford Avenue, Condado, San Juan, Puerto Rico. The company claims the property is worth $11 million based on appraised value. Banco Popular de Puerto Rico is owed $17.5 million, of which $6.56 million is unsecured. SARATOGA RESOURCES: Nevins Joins Board Under Forbearance Agreement ------------------------------------------------------------------ Saratoga Resources, Inc. on May 18 disclosed that it has appointed Richard Nevins to its board of directors and as a member of the board's existing independent committee. Mr. Nevins has served as an independent financial advisor since 2010 and previously from 2007 to 2008, in which capacity he served as Interim CEO of Insight Health Services Holdings Corp from 2007 to 2008, as Interim CEO of US Energy Systems, Inc. during 2007, and as Examiner in the 2007 bankruptcy of Northwest Airlines. From 1998 to 2007 and again from 2008 to 2010, Mr. Nevins served as Managing Director and, during the 1998 to 2007 period, Co-Head of the Recapitalization and Restructuring Group of Jefferies & Company, Inc., a full service investment bank. Prior to his tenure at Jefferies & Company, Mr. Nevins served in several leadership positions as a director, financial advisor and corporate executive. Mr. Nevins holds an MBA from the Stanford Graduate School of Business and a Bachelor of Arts in Economics from the University of California, Riverside. Mr. Nevins' appointment was made pursuant to the terms of an amendment to the existing forbearance agreements with the Company's senior lenders. Under that amendment, if an additional independent director acceptable to the senior lenders was appointed to the board and independent committee, the forbearance period would be extended until May 22, 2105. By separate agreement, the lenders agreed to extend the forbearance period until June 5, 2015. About Saratoga Resources Saratoga Resources -- http://www.saratogaresources.com-- is an independent exploration and production company with offices in Houston, Texas and Covington, Louisiana. Principal holdings cover approximately 52,000 gross/net acres, mostly held by production, located in the transitional coastline and protected in-bay environment on parish and state leases of south Louisiana and in the shallow Gulf of Mexico Shelf. Most of the company's large drilling inventory has multiple pay objectives that range from as shallow as 1,000 feet to the ultra-deep prospects below 20,000 feet in water depths ranging from less than 10 feet to a maximum of approximately 80 feet. SCOTT JOHNSON CONSTRUCTION: Case Summary & 7 Top Unsec. Creditors ----------------------------------------------------------------- Debtor: Scott Johnson Construction, Inc. P.O. Box 605 Odenville, AL 35120 Case No.: 15-40791 Chapter 11 Petition Date: May 15, 2015 Court: United States Bankruptcy Court Northern District of Alabama (Anniston) Judge: Hon. James J. Robinson Debtor's Counsel: Kevin D. Heard, Esq. HEARD ARY, LLC 303 Williams Avenue SW Park Plaza Suite 921 Huntsville, AL 35801 Tel: (256) 535-0817 Fax: (256) 535-0818 Email: kheard@heardlaw.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Scott Johnson, owner. A list of the Debtor's seven largest unsecured creditors is available for free at http://bankrupt.com/misc/alnb15-40791.pdf SECOND SKIN: Files for Chapter 11 Bankruptcy Protection ------------------------------------------------------- Crain's New York Business reports that Second Skin filed for Chapter 11 bankruptcy protection on May 5, 2015. The Company, according to the report, estimated its assets and liabilities at between $100,001 and $500,000 each. Second Skin is headquartered in Broadway, New York. SILVERADO STREET: St. Regis Residence Wants Stay Lifted ------------------------------------------------------- St. Regis Residence Club of Colorado filed a motion asking the U.S. Bankruptcy Court for the Southern District of California for relief from the automatic stay in the Chapter 11 case of Silverado Street, LLC. According to James P. Hill, Esq., at Sullivan Hill Lewin Rez & Engel, APLC, in San Diego, California, the Debtor owes St. Regis the sum of $391,591, which is secured by a property at 315 Dean Street, in Aspen, Colorado. The real property is valued at $450,000. Mr. Hill asserts that: (1) St. Regis' interest in the property was not adequately protected; (2) the Debtor has no equity in the real property; and (3) the case was filed in bad faith. St. Regis is represented by: James P. Hill, Esq. Jonathan S. Dabbieri, Esq. SULLIVAN HILL LEWIN REZ & ENGEL, APLC 550 West "C" Street, Suite 1500 San Diego, CA 92101 Tel: (619)233-4100 Fax: (619)231-4372 Email: hill@sullivanhill.com About Silverado Street Silverado Street, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Cal. Case No. 14-09543) on Dec. 9, 2014, disclosing $11.3 million in total liabilities and total assets of $21.8 million. The petition was signed by Amr Aljassim, the managing member. James Lee, Esq., at Legal Offices of James J. Lee, serves as the Debtor's counsel. Judge Christopher B. Latham presides over the case. The U.S. trustee wasn't able to form a committee to represent the company's unsecured creditors due to an insufficient number of unsecured creditors. SMART TECHNOLOGIES: S&P Lowers CCR to 'B-', Outlook Negative ------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered its corporate credit rating on Calgary, Alta.-based interactive display producer SMART Technologies Inc. to 'B-' from 'B'. The outlook is negative. At the same time, S&P lowered its issue-level rating on SMART's US$125 million term loan. The '1' recovery rating on this loan is unchanged, and indicates S&P's expectation for very high (90%-100%) recovery in the event of a default. "We base the downgrade on our expectation that the company's operating performance will materially weaken in the next 12 months owing to continued revenue declines in its key education segment," said Standard & Poor's credit analyst David Fisher. S&P expects this will lead to a material deterioration in SMART's credit measures and result in the company consuming cash as it invests in several growth initiatives aimed at offsetting the decline in its legacy interactive whiteboard (IWB) business. S&P has revised its financial risk profile to "highly leveraged" from "aggressive," resulting in the downgrade. SMART's first-quarter fiscal 2016 guidance (announced May 15, 2015, concurrent with fiscal 2015 year-end results) was significantly weaker than S&P expected, with management expecting continued meaningful revenue declines. At the same time, S&P expects margins to contract meaningfully due to a mix shift toward interactive flat panels. Despite this, the company plans to invest significant resources into new products (mainly SMART Kapp and software solutions, as well as SMART Room Systems) that have, to date, largely failed to gain meaningful traction either due to sales or execution challenges. These investments include US$25 million of efficiencies harvested from other parts that the company plans to redeploy to SMART Kapp. While some of SMART's new products have received accolades and could eventually offset declines in the IWB business, S&P is skeptical this will happen in the near term. Given this, S&P expects SMART's credit ratios to deteriorate meaningfully in fiscal 2016. Based on S&P's expectations, adjusted debt-to-EBITDA, which was already weak at 5.6x for year-end fiscal 2015, could increase to more than 10x as declining sales and margin compression cut against a relatively fixed cost base. This led to the financial risk profile revision. The negative outlook reflects S&P's view that SMART's debt levels might be unsustainable if its emerging products and services fail to offset the decline in its legacy IWB business. S&P could lower the rating if SMART cannot improve its operating performance such that it appears likely the company will generate positive sustained free operating cash flow. S&P could revise the outlook to stable if SMART achieved positive revenue and earnings growth leading to positive free operating cash flow. SPENDSMART NETWORKS: Appoints Bruce Neuschwander as CFO ------------------------------------------------------- SpendSmart Networks, Inc. entered into an employment agreement with Bruce Neuschwander pursuant to which Mr. Neuschwander was appointed chief financial officer of the Company effective May 19, 2015. According to a Form 8-K filed with the Securities and Exchange Commission, Mr. Neuschwander is to receive a base salary at an annual rate of $150,000. The Company may terminate the employment for cause without notice and may terminate the employment without cause with 30 days notice. He will also receive a grant of five-year options to purchase 75,000 shares at an exercise price of $0.65 per share which will vest over two years. Mr. Neuschwander replaces David Horin who resigned as chief financial officer effective May 14, 2015. Mr. Horin will transition into a consulting role with the Company. Mr. Neuschwander, age 63, served as controller and CFO for various startups for the past six years including Finis, Inc. and Eat Club. From 2005 to 2008, Mr. Neuschwander was controller at Mblox and Taleo (a previously publicly traded company acquired by Oracle). Mr. Neuschwander held similar positions with other technology and software companies, including Nemerix, Unisys, and Centillium Communications. Mr. Neuschwander earned his BA in Economics from Willamette University and an MS from the University of California, Irvine-The Paul Merage School of Business. About SpendSmart Networks SpendSmart Networks, Inc., provides proprietary loyalty systems and a suite of digital engagement and marketing services that help local merchants build relationships with consumers and drive revenues. These services are implemented and supported by a vast network of certified digital marketing specialists, aka "Certified Masterminds," who drive revenue and consumer relationships for merchants via loyalty programs, mobile marketing, mobile commerce and financial tools, such as prepaid card and reward systems. We enter into licensing agreements for our proprietary loyalty marketing solution with "Certified Masterminds" which sell and support the technology in their respective markets. The Company's products aim to make Consumers' dollars go further when they spend it with merchants in the SpendSmart network of merchants, as they receive exclusive deals, earn rewards and ultimately build a connection with their favorite merchants. SpendSmart Networks incurred a net loss of $12.2 million on $4.03 million of total revenues for the year ended Dec. 31, 2014, compared to a net loss of $14.09 million on $0 of total revenues for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $10.02 million in total assets, $2.65 million in total liabilities and $7.36 million in total stockholders' equity. EisnerAmper LLP, in Iselin, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has recurring net losses since inception and has yet to establish a profitable operation. These factors among others raise substantial doubt about the ability of the Company to continue as a going concern, according to the regulatory filing. SUNTECH AMERICA: Seeks Aug. 10 Extension of Lease Decision Date --------------------------------------------------------------- Suntech America, Inc., et al., ask the U.S. Bankruptcy Court for the District of Delaware to extend the time within which they may assume or reject unexpired leases of nonresidential real property through and including August 10, 2015. Joseph C. Barsalona II, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, asserts that the Unexpired Leases relate to property that represents the entirety of the Debtors' locations where they conduct their businesses. All of the Unexpired Leases are necessary for the Debtors to maintain operations, store valuable assets, and manage their businesses. Without the relief requested, rejection by operation of law at this time would result in significant expense and disruption to the Debtors' operations, and would result in irreparable harm to the Debtors' estates, Mr. Barsalona tells the Court. Therefore, it is imperative that the Unexpired Leases not be rejected by operation of law at this time. The Motion is scheduled for hearing on June 26, 2015, at 11:00 a.m. The deadline for submission of objections to the Motion is set at May 26. The Debtors are represented by: Mark D. Collins, Esq. Paul N. Heath, Esq. Zachary I. Shapiro, Esq. Joseph C. Barsalona II, Esq. RICHARDS, LAYTON & FINGER, P.A., 920 N. King Street Wilmington, DE 19801 Tel: 302-651-7700 Fax: 302-651-7701 E-mail: collins@rlf.com heath@rlf.com shapiro@rlf.com barsalona@rlf.com 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. SUNTECH AMERICA: Seeks Sept. 9 Extension of Plan Filing Date ------------------------------------------------------------ Suntech America, Inc., et al., ask the U.S. Bankruptcy Court for the District of Delaware to extend their exclusive right to file a Chapter 11 plan through and including Sept. 9, 2015, and their exclusive right to solicit votes thereon through and including Nov. 10, 2015. According to Zachary I. Shapiro, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, since mediation, the Debtors, the Solyndra Residual Trust, and Suntech Power Holdings Co., Ltd., have worked diligently to finalize and incorporate the terms of that deal into the plan term sheet and obtain approval of the Official Committee of Unsecured Creditors, including, most importantly, Wuxi Suntech Power Co., Ltd., to its terms. Unfortunately, notwithstanding these efforts, all of the critical parties necessary for a consensual plan in the cases have been unable to reach final agreement on the Plan Term Sheet or an alternative thereto, Mr. Shapiro tells the Court. Although steps towards a consensual plan remain the Debtors' goal, the Debtors must retain the ability to focus on the remaining items that are important to their emergence from Chapter 11 without the distraction, disruption, and expense of competing Chapter 11 plans, Mr. Shapiro asserts. Among other items, assuming consensual treatment of material disputed claims in a plan cannot otherwise be reached, the Debtors must resolve significant and complex claims that have been asserted against the Debtors' estates, including Wuxi's disputed claim, Solyndra's disputed claim and warranty claims that implicate Wuxi, he further asserts. Maintaining the exclusive right to file and solicit votes on a Chapter 11 plan is critical to the Debtors' ability to complete these necessary steps as efficiently and expeditiously as possible, Mr. Shapiro argues. Accordingly, the Debtors request an extension of the Exclusivity Periods to allow the Debtors to continue focusing on negotiating, finalizing, filing, and obtaining confirmation of a plan of reorganization and to preclude the costly disruption that would occur if competing plans were to be proposed at this time, Mr. Shapiro adds. The Debtors are also represented by Mark D. Collins, Esq., and Paul N. Heath, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware. 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. SUNVALLEY SOLAR: Delays Q1 Form 10-Q for Review ----------------------------------------------- Sunvalley Solar, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the quarter ended March 31, 2015. The Company said its auditor was not given sufficient time to complete its review of the Company's financial statements before the filing deadline for the report. About Sunvalley Solar Sunvalley Solar, Inc., is a California-based solar power technology and system integration company. Since the inception of its business in 2007, the company has focused on developing its expertise and proprietary technology to install residential, commercial and governmental solar power systems. Sunvalley Solar reported a net loss of $1.28 million on $3.31 million of revenues for the year ended Dec. 31, 2014, compared with net income of $764,000 on $4.09 million of revenues for the year ended Dec. 31, 2013. Sadler, Gibb & Associates, LLC, in Salt Lake City, UT, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has an accumulated deficit of $3.65 million, which raises substantial doubt about its ability to continue as a going concern. THINKSTREAM INC: Creditors Again Submit Involuntary Petition ------------------------------------------------------------ Creditors want Thinkstream Incorporated of Delaware, formerly known as Thinkstream Incorporated of Colorado, to be placed again under Chapter 11 bankruptcy after the company lost its $17 million contract with the state of Florida. TSB Ventures, LLC, Grossman Family Limited Partnership, Rainbow Investments Company, Michael Chadwick, Kevin C. Kling GST Trust, Tim O'Leary and John Zapalac on May 11 submitted an involuntary Chapter 11 bankruptcy petition for Thinkstream, only 6 months after the U.S. Bankruptcy Court for the Middle District of Louisiana dismissed Thinkstream's previous Chapter 11 bankruptcy case. In September 2014, TSB Ventures, et al., filed an involuntary Chapter 11 petition for Thinkstream. But a month later, Thinkstream and the Petitioning Creditors jointly asked Judge Douglas D. Dodd to dismiss the case so that the Debtor can negotiate a contract with the Florida Department of Law Enforcement that will replace the agency's computerized criminal history database. However, as reported in the April 14, 2015 edition of the TCR, the Florida Department of Law Enforcement took back the $17 million contract for Thinkstream to operate the agency's Computerized Criminal History system. The Agency cancelled the contract after Computer Projects of Illinois filed on March 6, 2015, a bid protest saying that the Company's failure to disclose its bankruptcy breached the terms of the invitation to negotiate issued by the Agency. About Thinkstream Inc. Thinkstream Incorporated of Delaware, fka Thinkstream Incorporated of Colorado, is a technology company that engages in developing and expanding standard and Web-based distributed information networks to meet the communication and interoperability demands of public safety and criminal justice markets. The company serves federal agencies, departments, and municipalities in California, Florida, Texas, Louisiana, Mississippi, and Georgia. On Sept. 19, 2014, petitioning creditors led by TSB Ventures, LLC, asserting $9.33 million in total claims on account of debentures and promissory notes allegedly issued by Thinkstream Incorporated of Delaware or its predecessor, filed an involuntary Chapter 11 petition for Thinkstream in Baton Rouge (Bankr. M.D. La. Case No. 14-11204). In November 2014, Judge Douglas D. Dodd dismissed the bankruptcy case after the Debtor and the petitioning creditors announced a settlement. TSB Ventures, which is owed $9.09 million, and other alleged creditors again filed an involuntary Chapter 11 petition (Bankr. M.D. La. Case No. 15-10553) for Thinkstream on May 11, 2015, in Baton Rouge, Louisiana. TSB is represented by Brandon A. Brown, Esq., and Ryan James, Esq., Stewart Robbins, in Baton Rouge, Louisiana. Other petitioning creditors, namely, Rainbow Investments, Kevin Kling GST Trust, Tim O'Leary and John Zapalac, are represented by J. Eric Lockridge, Esq. -- eric.lockridge@keanmiller.com -- of Kean Miller. TONGJI HEALTHCARE: Incurs $70,200 Net Loss in First Quarter ----------------------------------------------------------- Tongji Healthcare Group, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $70,200 on $551,000 of total operating revenue for the three months ended March 31, 2015, compared to a net loss of $63,000 on $541,000 of total operating revenue for the same period last year. As of March 31, 2015, the Company had $17.1 million in total assets, $19.6 million in total liabilities, and a $2.47 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/INO1YI About Tongji Healthcare Based in Nanning, Guangxi, the People's Republic of China, Tongji Healthcare Group, Inc., a Nevada corporation, operates Nanning Tongji Hospital, a general hospital with 105 licensed beds. Tongji Healthcare reported a net loss of $462,000 on $2.52 million of total operating revenues for the year ended Dec. 31, 2014, compared with a net loss of $730,000 on $2.37 million of total operating revenues for the year ended Dec. 31, 2013. TRANSDIGM INC: S&P Assigns 'B' Rating on Sr. Secured Term Loan E ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' issue-level rating and '3' recovery rating on TransDigm Inc.'s senior secured term loan E due 2022. The '3' recovery rating indicates S&P's expectation that noteholders will receive meaningful recovery (50%-70%; high-end of the range) in a payment default scenario. TransDigm used the proceeds from the new term loan E tranche along with $450 million in new subordinated notes to fund acquisitions, refinance its existing debt, add cash to its balance sheet, and pay fees and expenses related to the transaction. The company opted to create the term loan E tranche rather than increase the size of its term loan D as it had previously proposed. TransDigm has already issued $1.04 billion of debt under the new tranche E and S&P expects the company to shift $500 million from the existing tranche C term loan to the tranche E term loan in the coming days. This will leave TransDigm with a total of $1.54 billion outstanding under its tranche E term loan and $2.053 billion outstanding under its tranche C term loan. Following these changes to the company's capital structure, S&P expects that its total leverage will remain largely unchanged from its previous assumptions. S&P's corporate credit rating on TransDigm reflects the company's leading positions in niche markets for highly engineered aircraft components, solid operating performance, efficient operations, and good product diversity, but also incorporates the risks associated with its exposure to the cyclical and competitive commercial aerospace industry. The company has adopted a more aggressive financial policy in recent years, demonstrating an appetite for high leverage, and S&P expects its credit measures to remain weak as TransDigm continues to use its excess cash and debt to fund acquisitions and periodic large special dividends, with debt-to-EBITDA remaining over 6.0x. However, the company continues to generate solid earnings and cash flows and high margins, which have partially offset its increased leverage. RECOVERY ANALYSIS Key Analytical Factors S&P's default scenario simulates a default occurring in 2018 as a result of a decline in global air travel due to weak economic conditions. S&P also believes its debtholders would achieve a higher recovery value through reorganization rather than a liquidation of the business. S&P assumes the $510 million revolver is 85% drawn at default. Simulated Default Assumptions: -- Simulated year of default: 2018 -- EBITDA at Emergence: $550 million -- EBITDA Multiple: 6x Simplified Waterfall -- Net enterprise value (after 5% administrative costs): $3.135 billion -- Valuation split (obligors/nonobligors): 95%/5% -- Collateral value available to secured creditors: $2.943 billion -- Secured first-lien debt: $4.86 billion --Recovery expectations: 50%-70% (high end of the range) -- Total value available to unsecured claims: $55 million -- Structurally subordinated debt: $3.98 billion --Recovery expectations: 0%-10% Note: All debt amounts include six months of prepetition interest. Collateral value equals asset pledge from obligors after priority claims plus equity pledge from nonobligors after nonobligor debt. RATINGS LIST TransDigm Inc. Corporate Credit Rating B/Stable/-- New Ratings TransDigm Inc. Senior secured term loan E due 2022 B Recovery Rating 3H TRANSGENOMIC INC: Posts $3.37 Million Net Loss in First Quarter --------------------------------------------------------------- Transgenomic, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss available to common stockholders of $3.37 million on $6.51 million of net sales for the three months ended March 31, 2015, compared to a net loss available to common stockholders of $4.4 million on $6.25 million of net sales for the same period last year. As of March 31, 2015, the Company had $34.5 million in total assets, $24.4 million in total liabilities and $10.0 million in total stockholders' equity. Cash and cash equivalents were $5.4 million at March 31, 2015, compared with $1.6 million at Dec. 31, 2014. As previously announced, during the first quarter of 2015 the company completed financings that raised approximately $7.3 million in net proceeds. These proceeds are being used for working capital and other general corporate purposes. "The company made good progress in the first quarter in strengthening our historical businesses while preparing for the imminent launch of our breakthrough technology: Multiplexed ICE-COLD PCR," said Paul Kinnon, president and chief executive officer. "We achieved a double digit percentage increase in overall net sales excluding the divested Surveyor product line, including a robust 32% increase in the critical Laboratory Services segment. We also reduced expenses and improved our gross margins." The Company has incurred substantial operating losses and has used cash in its operating activities for the past few years. As of March 31, 2015, the Company had working capital of approximately $7.2 million. "The Company's ability to continue as a going concern is dependent upon a combination of generating additional revenue, improving cash collections, potentially selling underutilized assets and, if necessary, raising necessary financing to meet its obligations and pay its liabilities arising from normal business operations when they come due. The outcome of these matters cannot be predicted with any certainty at this time and raises substantial doubt that the Company will be able to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. The Company cannot be certain that additional financing will be available on acceptable terms, or at all, and its failure to raise capital when needed could limit its ability to continue its operations," the Company said in the Form 10-Q. A full-text copy of the Form 10-Q is available for free at: http://is.gd/UaqnVK About Transgenomic Transgenomic, Inc. -- http://www.transgenomic.com/-- is a global biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases through its proprietary molecular technologies and world-class clinical and research services. The Company is a global leader in cardiac genetic testing with a family of innovative products, including its C-GAAP test, designed to detect gene mutations which indicate cardiac disorders, or which can lead to serious adverse events. Transgenomic has three complementary business divisions: Transgenomic Clinical Laboratories, which specializes in molecular diagnostics for cardiology, oncology, neurology, and mitochondrial disorders; Transgenomic Pharmacogenomic Services, a contract research laboratory that specializes in supporting all phases of pre-clinical and clinical trials for oncology drugs in development; and Transgenomic Diagnostic Tools, which produces equipment, reagents, and other consumables that empower clinical and research applications in molecular testing and cytogenetics. Transgenomic believes there is significant opportunity for continued growth across all three businesses by leveraging their synergistic capabilities, technologies, and expertise. The Company actively develops and acquires new technology and other intellectual property that strengthens its leadership in personalized medicine. Transgenomic reported a net loss available to common stockholders of $15.1 million in 2014, a net loss available to common stockholders of $16.7 million in 2013 and a net loss available to common stockholders of $8.98 million in 2012. Ernst & Young LLP, in Hartford, Connecticut, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has recurring losses from operations that raise substantial doubt about its ability to continue as a going concern. TROCOM CONSTRUCTION: Section 341 Meeting Set for June 19 -------------------------------------------------------- There will be a meeting of creditors of Trocom Construction Corp. on June 19, 2015, at 2:00 p.m. at Room 2579, 271-C Cadman Plaza East, Brooklyn, New York. 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. About Trocom Construction Trocom Construction Corp. formed in 1969 by Salvatore Trovato. Trocom is in the heavy construction business. Its primary customer is the City of New York through its various agencies. The company has 75 employees, the majority of whom are members of various unions. Joseph Trovato is presently the president and holder of 100% of the voting shares of Trocom. Trocom commenced a Chapter 11 bankruptcy case (Bankr. E.D.N.Y. Case No. 15-42145) on May 7, 2015, in Brooklyn. The case is assigned to Judge Nancy Hershey Lord. The Debtor tapped Cullen & Dykman, LLP, as its general bankruptcy counsel. The Debtor estimated $10 million to $50 million in assets and less than $10 million in debt. According to the docket, the Chapter 11 plan and disclosure statement are due Sept. 4, 2015. TRW AUTOMOTIVE: Moody's Withdraws 'Ba1' Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service withdrew the Corporate Family and Probability of Default Ratings of TRW Automotive, Inc., following the announcement by ZF Friedrichshafen AG (ZF AG) that they have completed the acquisition of TRW Automotive Holdings Corporation (the parent holding company of TRW, "Holdings") for $13.5 billion. This action concludes the review for downgrade initiated on September 15, 2014. The Ba1 rating of TRW's existing senior unsecured notes have been confirmed with the outlook for these notes changed to negative. The indentures for TRW's senior unsecured notes contain a change of control triggering event under which TRW is required to offer to repurchase the senior notes, for a certain period of time, at a price of 101% of par, plus accrued and unpaid interest. To the extent any amounts of TRW's unsecured notes remain outstanding following the completion of the offer to repurchase, Moody's will assess the ratings of the senior unsecured notes at that time. The TRW senior unsecured notes, rated Ba1, benefit from existing guarantees from certain of TRW's domestic subsidiaries. The senior unsecured notes (rated Ba2) at ZF North America Capital, Inc. ("ZFNA"), - a domestic holding company used by ZF AG to partially fund the acquisition of Holdings, do not benefit from these guarantees. The ZFNA debt does benefit from a guarantee from ZF AG (both an operating and holding company) which the TRW unsecured notes do not. Other considerations for the negative outlook will be whether Holdings will continue to report financial statement for its consolidated operations independently of ZF AG, and to what extent the operations of TRW could migrate within ZF AG over the intermediate-term. The rating of TRW's senior unsecured revolving credit facility is withdrawn, as TRW has announced the termination of this facility. The following ratings are withdrawn: TRW Automotive, Inc. -- Ba1, Corporate Family Rating; -- Ba1-PD, Probability of Default Rating; -- SGL-2, Speculative Grade Liquidity Rating, -- Ba1 (LDG4), $1.4 billion senior unsecured revolving credit facility The following ratings are confirmed with their outlook changed to negative: TRW Automotive, Inc. -- Ba1 (LDG4), 7.25% senior unsecured notes due 2017; -- Ba1 (LDG4), 4.5% senior unsecured notes due 2021; -- Ba1 (LGD4), 4.45% senior unsecured notes due 2023 The ratings of ZF Friedrichshafen AG were assigned on April 10, 2015 - Corporate Family and Probability of Default Ratings at Ba2 and Ba2-PD, respectively with a positive outlook. Holdings is renamed ZF TRW Automotive Holdings and will operate as a subsidiary of ZF Friedrichshafen AG. TRW Automotive, Inc.'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 TRW Automotive, Inc.'s core industry and believes TRW Automotive, Inc.'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. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies. ZF TRW Automotive Holdings, the parent company of TRW Automotive, Inc., located in Livonia, MI, is among the world's largest and most diversified suppliers of automotive systems, modules and components to global automotive original equipment manufacturers ("OEMs") and related aftermarkets. Revenues in 2014 were approximately $17.5 billion. The shareholders of ZF Friedrichshafen AG are the Zeppelin Foundation, administered by the City of Friedrichshafen, Germany (93.8%), and the Dr. Jurgen and Irmgard Ulderup Foundation, Lemforde (6.2%). TRW AUTOMOTIVE: S&P Lowers CCR to 'BB', Then Withdraws Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered its corporate credit rating on TRW Automotive Inc. to 'BB' from 'BBB-' and removed it from CreditWatch, where S&P placed it with negative implications on April 13, 2015. The outlook is stable. Subsequent to these actions, S&P withdrew its corporate credit rating on TRW. At the same time, S&P withdrew its 'BBB-' issue ratings on the company's $1.4 billion revolver as S&P assumes that TRW will terminate its syndicated credit agreement concurrent with the merger. S&P also withdrew its 'BB+' issue ratings on the company's 3.50% exchangeable senior unsecured notes, all of which had been redeemed by April 9, 2015. Additionally, S&P lowered its issue ratings on TRW's senior unsecured notes to 'BB' from 'BBB-' to align the ratings with those on ZF's unsecured bonds that have a recovery rating of '3', indicating S&P's expectation for meaningful (50%-70%; lower half of the range) recovery in a default scenario. These ratings will remain outstanding until all balances are repaid, after which S&P will withdraw the ratings. "We downgraded TRW and removed our rating on the company from CreditWatch negative to reflect our view that the company's credit quality is now aligned with ZF's following the May 15, 2015, closing of ZF's acquisition of TRW," said Standard & Poor's credit analyst Nishit Madlani. "We subsequently withdrew our corporate credit rating on TRW." VERMILLION INC: Reports Positive Results of OVA2 ------------------------------------------------ Vermillion, Inc., announced publication of two abstracts reporting initial positive top-line results regarding the development and validation of OVA2, Vermillion's second-generation OVA1 ovarian cancer triage test. The results will be presented in two posters at the 2015 American Society for Clinical Oncology (ASCO) annual meeting, which takes place in Chicago, May 29 through June 2. The abstracts represent the first publication of data from OVA2 development, and underpin Vermillion's submission of OVA2 for 510(k) clearance to the FDA. The data show significant improvement in OVA2 specificity compared to OVA1, while maintaining strong sensitivity (92% for OVA1 in a 2013 pivotal study). Vermillion's goal is to launch OVA2 by the third quarter of this year, dependent on successful and timely FDA clearance. "Validation of a second-generation MIA (MIA2G) for triage of adnexal masses" reported on the validation of OVA2 (under a generic name, MIA2G). * Across all subjects, 33% fewer benign positives were seen with OVA2 compared with OVA1. * The validation study showed statistically significant improvement in specificity as a risk stratification test (OVA2 alone), with no significant reduction of sensitivity or negative predictive value (NPV). Sensitivity and NPV were not reported in the abstract, but will be shown in the poster itself as compared to OVA1. * The large validation cohort also showed statistically significant improvement in positive predictive value (PPV), as well as a 12% improvement in overall test accuracy, defined as (true positives + true negatives) ÷ (N) compared to OVA1. "Derivation of a second generation multivariate index assay (MIA2G) to improve specificity in pre-surgical evaluation of adnexal masses for risk of ovarian cancer" reported on the development and design verification of the OVA2 test. * Led by Dr. Zhen Zhang of the Johns Hopkins School of Medicine's Center for Biomarker Discovery and Translation, extensive statistical resampling was conducted with 7 biomarkers in a block-randomized selection, ranking, optimization and verification exercise. * Top-performing biomarker panels were combined as algorithm ensembles for pre- and post-menopausal patients, respectively. The optimized algorithm utilized 5 Roche cobas 6000 immunoassays as inputs: CA 125-II, Apolipoprotein A-1 (ApoA1), transferrin (TRF), follicle-stimulating hormone (FSH) and human epididymal protein-4 (HE4). As a result of the development work, OVA2 will measure a woman's risk of cancer using a 0 to 10 scale, as with the OVA1 test. OVA2, however, has a single cutoff; less than 5.0 for low risk and greater than or equal to 5.0 for high risk. This design greatly simplifies testing procedures and interpretation. Vermillion's Chief Medical Officer and validation study primary investigator, Dr. Judith Wolf, stated: "The importance of early detection of ovarian cancer and appropriate referral before the first surgery cannot be overstated. From more than 20 years practicing as a gynecologic oncologist caring for women with ovarian cancer, I am very aware of the terrible statistics and personal toll inflicted on women by this disease. The data on OVA2 reported at ASCO show evidence of how this new test can be a true 'win-win' for physicians and patients. Our results suggest that high sensitivity triage is now possible without sacrificing the ability to identify a solid majority of benign patients who can be confidently operated locally with their customary OB/Gyn care-giver." Valerie Palmieri, Vermillion's President and CEO, added, "Our mission is to directly improve the care of 100,000 - 300,000 women who undergo surgery for a pelvic mass in the US each year. As shown in recent studies, as many as two-thirds of women with ovarian cancer receive inadequate treatment in their first episode of care, seriously compromising their chance of survival. So we see OVA2 as our mission in action: an unrelenting focus on improving the effectiveness and efficiency of pre-surgical triage, together with top clinical collaborators and partners. These first validation results give us high hopes that OVA2 will soon be added to the 'best practice' arsenal of physicians in our ongoing battle against ovarian cancer." A full-text copy of the press release is available at: http://is.gd/sEl3cz About Vermillion Vermillion, Inc., is dedicated to the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients. Vermillion, along with its prestigious scientific collaborators, has diagnostic programs in oncology, hematology, cardiology and women's health. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 09-11091) on March 30, 2009. Vermillion's legal advisor in connection with its successful reorganization efforts wass Paul, Hastings, Janofsky & Walker LLP. Vermillion emerged from bankruptcy in January 2010. The Plan called for the Company to pay all claims in full and equity holders to retain control of the Company. Vermillion reported a net loss of $19.2 million in 2014, a net loss of $8.81 million in 2013 and a net loss of $7.14 million in 2012. As of March 31, 2015, the Company had $18.67 million in total assets, $3.48 million in total liabilities and $15.19 million in total stockholders' equity. VICTORY ENERGY: Delays Filing of Q1 Form 10-Q --------------------------------------------- Victory Energy Corporation said its quarterly report on Form 10-Q for the period ended March 31, 2015, cannot be filed within the prescribed time as a result of the recent termination of certain agreements related to negotiations for a proposed business combination. Due to the fact that the Termination occurred immediately before the filing deadline for the Quarterly Report, the Company and its auditors need additional time to evaluate the implications of the Termination on the financial reporting and other information to be included in the Quarterly Report, according to a Form 12b-25 filed with the Securities and Exchange Commission. About Victory Energy Austin, Texas-based Victory Energy Corporation is engaged in the exploration, acquisition, development and exploitation of domestic oil and gas properties. Current operations are primarily located onshore in Texas, New Mexico and Oklahoma. Victory Energy reported a net loss of $4.22 million in 2014 following a net loss of $2.11 million in 2013. As of Dec. 31, 2014, the Company had $1.2 million in total assets, $2.67 million in total liabilities and a $1.46 million total stockholders' deficit. Weaver and Tidwell, L.L.P., in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has experienced recurring losses since its inception and has an accumulated deficit, which raise substantial doubt regarding the Company's ability to continue as a going concern. VICTORY ENERGY: Terminates Proposed Merger with Lucas Energy ------------------------------------------------------------ Victory Energy Corporation said it will not proceed with the proposed business combination with Lucas Energy, Inc., which was the subject of a letter of intent that was previously announced on Feb. 6, 2015. The Company notified Lucas on May 11, 2015, that it does not intend to proceed with the Merger and thereby terminated the Letter of Intent. The Company also notified Lucas pursuant to the Pre-Merger Loan and Funding Agreement between the Company and Lucas, dated Feb. 26, 2015, and the related promissory note, that it will not extend any further credit to Lucas under the Loan Agreement. The Company and its affiliates are working collaboratively with Lucas toward the finalization of terms of a mutual settlement and release agreement. "Although the merger with Lucas is no longer moving forward, we remain in a very good position to rapidly grow the company and have done so in the last few months. We have added an estimated 65 barrels of oil equivalent per day (BOE/PD) to company production and reserves since January and we anticipate exiting Q2 at over 103 BOE/PD. That's quite an increase from the 30 BOE/PD at which we exited the year ended December 31, 2014," said Kenny Hill, Victory Energy's CEO. About Victory Energy Austin, Texas-based Victory Energy Corporation is engaged in the exploration, acquisition, development and exploitation of domestic oil and gas properties. Current operations are primarily located onshore in Texas, New Mexico and Oklahoma. Victory Energy reported a net loss of $4.22 million in 2014 following a net loss of $2.11 million in 2013. As of Dec. 31, 2014, the Company had $1.2 million in total assets, $2.67 million in total liabilities and a $1.46 million total stockholders' deficit. Weaver and Tidwell, L.L.P., in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has experienced recurring losses since its inception and has an accumulated deficit, which raise substantial doubt regarding the Company's ability to continue as a going concern. VIGGLE INC: Amends $40 Million Securities Prospectus ---------------------------------------------------- Viggle Inc. has amended its Form S-3 registration statement with the Securities and Exchange Commission relating to the sale of its common stock, preferred stock, warrants, or a combination of these securities, or units, for an aggregate initial offering price of up to $40,000,000. The Company amended the Registration Statement to delay its effective date. The Company's common stock is traded on the NASDAQ Capital Market under the symbol "VGGL." On May 11, 2015, the last reported sales price for the Company's common stock was $3.76 per share. As of that date, the aggregate market value of the Company's outstanding common stock held by non-affiliates was approximately $31,325,315 based on 17,271,072 shares of the Company's outstanding common stock, of which approximately 8,331,201 shares were held by non-affiliates. A full-text copy of the Form S-3 registration statement, as amended, is available for free at http://is.gd/flX3Qc About Viggle New York City-based Viggle Inc. is a loyalty marketing company. The Company has developed a loyalty program for television that gives people real rewards for checking into the television shows they are watching on most mobile operating system. Viggle users can redeem their points in the app's rewards catalog for items such as movie tickets, music, or gift cards. Viggle reported a net loss of $68.4 million on $18 million of revenues for the year ended June 30, 2014, compared with a net loss of $91.4 million on $13.9 million of revenues for the year ended June 30, 2013. As of March 31, 2015, the Company had $70.9 million in total assets, $54.6 million in total liabilities, $11.4 million in series C convertible redeemable preferred stock, and $4.87 million in total stockholders' equity. BDO USA, LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2014. The independent auditors noted that the Company has suffered recurring losses from operations and at June 30, 2014, has a deficiency in working capital that raises substantial doubt about its ability to continue as a going concern. WAFERGEN BIO-SYSTEMS: Files First Quarter Form 10-Q Report ---------------------------------------------------------- WaferGen Bio-systems, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q for the period ended March 31, 2015. As of March 31, 2015, the Company's principal source of liquidity was $11.2 million in cash and cash equivalents. The Company had working capital of $9.7 million. The Company's funding has primarily been generated by the issuance of equity securities, which includes $18 million and $13.4 million raised, net of offering costs, in 2014 and 2013, respectively. The Company also had, as of March 31, 2015, Notes with a principal amount of $5.2 million owing to MTDC, repayable in August 2020. The Company disclosed a net loss of $4.8 million on $1.14 million of total revenue for the three months ended March 31, 2015, compared to a net loss of $2.54 million on $1.4 million of total revenue for the same period in 2014. As of March 31, 2015, the Company had $16.49 million in total assets, $6.47 million in total liabilities and $10.02 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/li99fL About WaferGen Bio-systems Fremont, California-based WaferGen Bio-systems, Inc., engages in the development of systems for gene expression quantification, genotyping and stem cell research. Since 2008, the Company's primary focus has been on the development, manufacture and marketing of its SmartChip System, a genetic analysis platform used for profiling and validating molecular biomarkers in the life sciences and pharmaceutical drug discovery industries. WaferGen Bio-systems reported a net loss of $10.7 million in 2014, a net loss of $16.3 million in 2013 and a net loss of $8.97 million in 2012. WBH ENERGY: Seeks Aug. 2 Extension of Exclusive Plan Filing Date ---------------------------------------------------------------- WBH Energy, LP, et al., ask the U.S. Bankruptcy Court for the Western District of Texas, Austin Division, to extend the time period by which they have exclusive right to file a plan through and including Aug. 2, 2015, and the time period by which they have exclusive right to solicit acceptances of that plan through and including Oct. 10, 2015. Under Section 1121(b) of the Bankruptcy Code, the Debtors have the exclusive right to file plans of reorganization within the first 120 days from the Petition Date. This time period is commonly referred to as the "Exclusivity Period." If the Debtors file plans within the first 120 days of the Petition Date, the Exclusivity Period is automatically extended for an additional 60 days to allow the Debtors time to obtain acceptance of their plans. Based on the Petition Date, the Debtors' statutory Exclusivity Period expires on May 4, 2015, and the Debtors' time in which to solicit votes for any plans of reorganization expires on July 3, 2015. According to the Debtors' counsel, William A. (Trey) Wood III, Esq., at Bracewell & Giuliani LLP, in Houston, Texas, the Debtors are not seeking the extension as a means to pressure creditors. Rather, the Debtors seek this extension so that the Debtors can have adequate time to devote resources to developing plans of reorganization that will benefit all creditors and interest holders, Mr. Wood asserts. The Debtors are represented by: William A. (Trey) Wood III, Esq. Jason G. Cohen, Esq. BRACEWELL & GIULIANI LLP 711 Louisiana, Suite 2300 Houston, TX 77002 Tel: (713) 223-2300 Fax: (713) 221-1212 Email: Trey.Wood@bgllp.com Jason.Cohen@bgllp.com About WBH Energy WBH Energy Partners LLC (Bankr. W.D. Tex. Case No. 15-10004) and its affiliates -- WBH Energy, LP (Bankr. W.D. Tex. Case No. 15-10003) and WBH Energy GP, LLC (Bankr. W.D. Tex. Case No. 15-10005) separately filed for Chapter 11 bankruptcy protection on Jan. 4, 2015. The petitions were signed by Joseph S. Warnock, vice president. Judge Christopher Mott presides over WBH Energy, LP's case, while Judge Tony M. Davis presides over WBH Energy Partners' and WBH Energy GP's cases. William A. (Trey) Wood, III, Esq., at Bracewell & Giuliani LLP, serves as the Debtors' bankruptcy counsel. WBH Energy, LP, and WBH Energy Partners estimated their assets and liabilities at between $10 million and $50 million each. WBH Energy, LP disclosed $557,045 plus an unknown amount and $48,950,652 in liabilities as of the Chapter 11 filing. WBH Energy GP estimated its assets at up to $50,000, and its liabilities at between $10 million and $50 million. The U.S. Trustee for Region 7 appointed seven creditors to serve On the official committee of unsecured creditors. [*] AEG Partners Mourns Loss of Founding Partner Larry Adelman -------------------------------------------------------------- Lawrence "Larry" M. Adelman, a founding partner and principal of AEG Partners, passed away on May 12, 2015 after a valiant fight against MDS. He was 69. Mr. Adelman was integral to the growth of AEG Partners, a firm he co-founded in 2000. He helped expand the firm's business lines from turnaround and restructuring services, to a range of business advisory offerings, including the launch of a new capital markets affiliate, AEG Capital, of which Larry served as a board director. He had a long and distinguished career, holding numerous CEO and board positions across a range of industries. "We are deeply saddened by the loss of our friend and partner," shared Craig S. Dean, principal at AEG, who joined Larry shortly after the firm's founding. "Larry was a brilliant businessman. Far more defining than his many professional accomplishments, Larry will be remembered best for the difference he made in other people's lives. He was an inspiring leader and a remarkable human being who will be missed greatly by many." A champion of many causes, Larry generously gave his time and leadership to numerous civic and professional organizations. One closest to his heart was the American Jewish Committee (AJC). He served as President of the AJC Chicago Board, was elected to the Board of Governors, and later became Vice Chair of the national Regional Offices Committee. Last year, he became a member of the board of AJC's Transatlantic Institute (TAI), where he chaired its 10th Anniversary mission to Brussels, leading a delegation of 50 to help raise the prominence of TAI. He also served on numerous other local and national committees and participated in several AJC national leadership programs. Mr. Adelman was a committed member of American Friends of NATAL, the Writers Theatre, and for over 30 years was involved in Congregation Solel, where he served on the board and as an officer. Professionally, he was active in the National Association of Corporate Directors, the American Bankruptcy Institute and the Turnaround Management Association, where he was a long-time member and served as the Chicago/Midwest Chapter's third president, holding the title for two terms. Additionally, he was a member of Lake Shore Country Club and The Standard Club. Above all else, Mr. Adelman cherished his family and was a caring father, grandfather, husband and friend. He is survived by his loving wife, Carol, nee Appelman, his children Lisa (Adam) Kaplan, and Ryan (Kassin) Adelman, and four grandchildren, Max, Ella, Sara and Ava. [*] Duane Morris' Walter Greenhalgh to Receive Manny Katten Award ----------------------------------------------------------------- The Association of Insolvency & Restructuring Advisors will present Duane Morris partner Walter J. Greenhalgh with the Manny Katten Award at its 31st annual Bankruptcy and Restructuring Conference to be held on June 3–6, 2015 in Philadelphia. The award is given annually to an individual selected by the association’s board of directors who has demonstrated exceptional leadership, dedication and service to the bankruptcy, restructuring and turnaround field. Mr. Greenhalgh is the managing partner of Duane Morris' Newark office and a member of the firm's national governing Partners Board. He practices in the areas of commercial litigation and bankruptcy law, insolvency law and chapter 11 corporate and commercial reorganization. A past chair of the executive committee of the Bankruptcy Law Section of the New Jersey State Bar Association, he has been an officer of the section for more than 10 years. He is a founding master of the Bankruptcy Inn of Court and board certified as a Business Bankruptcy Law specialist by the American Board of Certification. A member of the American Bankruptcy Institute, Mr. Greenhalgh is also a member of the American and Hudson County bar associations and the Debtor-Creditor Section of the Essex County Bar Association. From 2009–2014, Chambers USA: America's Leading Lawyers for Business included Mr. Greenhalgh in its listing of leading bankruptcy lawyers in New Jersey. Mr. Greenhalgh is a 1974 graduate of the Seton Hall University School of Law and a 1971 graduate of St. Peter's College. About AIRA AIRA is a nonprofit professional association serving the bankruptcy, restructuring and turnaround practice area. AIRA's membership consists of accountants, financial advisors, investment bankers, attorneys, workout consultants, trustees, and others in the field of business turnaround, restructuring and bankruptcy. AIRA members are among the most trusted and sought-after professionals in matters dealing with limited capital resources and deteriorating operating performance. About Duane Morris Duane Morris LLP, a law firm with more than 700 attorneys in offices across the United States and internationally, is asked by a broad array of clients to provide innovative solutions to today's legal and business challenges. [^] Large Companies With Insolvent Balance Sheet ------------------------------------------------ Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE ABT CN 138.6 (11.0) (2.4) ABSOLUTE SOFTWRE ALSWF US 138.6 (11.0) (2.4) ABSOLUTE SOFTWRE ABT2EUR EU 138.6 (11.0) (2.4) ABSOLUTE SOFTWRE OU1 GR 138.6 (11.0) (2.4) AC SIMMONDS & SO ACSXE US 1.4 (0.4) (1.5) ACCRETIVE HEALTH ACHI US 510.0 (85.6) (17.7) ADVANCED EMISSIO OXQ1 GR 106.4 (46.1) (15.3) ADVANCED EMISSIO ADES US 106.4 (46.1) (15.3) ADVENT SOFTWARE ADVS US 424.8 (50.1) (110.8) ADVENT SOFTWARE AXQ GR 424.8 (50.1) (110.8) AEROJET ROCKETDY AJRD US 1,911.7 (126.4) 109.8 AEROJET ROCKETDY GCY TH 1,911.7 (126.4) 109.8 AEROJET ROCKETDY GCY GR 1,911.7 (126.4) 109.8 AIR CANADA AC CN 11,581.0 (1,213.0) (95.0) AIR CANADA ACDVF US 11,581.0 (1,213.0) (95.0) AIR CANADA ADH2 TH 11,581.0 (1,213.0) (95.0) AIR CANADA ACEUR EU 11,581.0 (1,213.0) (95.0) AIR CANADA ADH2 GR 11,581.0 (1,213.0) (95.0) AK STEEL HLDG AKS US 4,556.3 (392.9) 949.0 AK STEEL HLDG AK2 TH 4,556.3 (392.9) 949.0 AK STEEL HLDG AK2 GR 4,556.3 (392.9) 949.0 AK STEEL HLDG AKS* MM 4,556.3 (392.9) 949.0 ALLIANCE HEALTHC AIQ US 551.6 (88.9) 46.7 AMC NETWORKS-A AMCX US 4,049.4 (89.4) 597.5 AMC NETWORKS-A AMCX* MM 4,049.4 (89.4) 597.5 AMC NETWORKS-A 9AC GR 4,049.4 (89.4) 597.5 AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2) AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0 ANGIE'S LIST INC 8AL TH 178.8 (15.6) (13.1) ANGIE'S LIST INC 8AL GR 178.8 (15.6) (13.1) ANGIE'S LIST INC ANGI US 178.8 (15.6) (13.1) ANTHERA PHARMACE 6TA1 GR 3.5 (2.3) (2.7) ANTHERA PHARMACE 6TA1 TH 3.5 (2.3) (2.7) ANTHERA PHARMACE ANTH US 3.5 (2.3) (2.7) ASPEN TECHNOLOGY AZPN US 317.1 (26.8) (17.4) ASPEN TECHNOLOGY AST GR 317.1 (26.8) (17.4) AUTOZONE INC AZ5 TH 7,950.0 (1,468.7) (709.5) AUTOZONE INC AZ5 GR 7,950.0 (1,468.7) (709.5) AUTOZONE INC AZOEUR EU 7,950.0 (1,468.7) (709.5) AUTOZONE INC AZO US 7,950.0 (1,468.7) (709.5) AVID TECHNOLOGY AVID US 182.0 (344.7) (165.7) AVID TECHNOLOGY AVD GR 182.0 (344.7) (165.7) BARRACUDA NETWOR CUDA US 389.3 (39.1) 29.1 BARRACUDA NETWOR 7BM GR 389.3 (39.1) 29.1 BERRY PLASTICS G BERY US 5,214.0 (73.0) 758.0 BERRY PLASTICS G BP0 GR 5,214.0 (73.0) 758.0 BRINKER INTL BKJ GR 1,437.3 (32.1) (216.6) BRINKER INTL EAT US 1,437.3 (32.1) (216.6) BRP INC/CA-SUB V B15A GR 2,347.9 (26.9) 291.8 BRP INC/CA-SUB V BRPIF US 2,347.9 (26.9) 291.8 BRP INC/CA-SUB V DOO CN 2,347.9 (26.9) 291.8 BURLINGTON STORE BURL US 2,624.6 (66.0) 54.4 BURLINGTON STORE BUI GR 2,624.6 (66.0) 54.4 BURLINGTON STORE BURL* MM 2,624.6 (66.0) 54.4 CABLEVISION SY-A CVCEUR EU 6,701.2 (5,022.6) 50.8 CABLEVISION SY-A CVC US 6,701.2 (5,022.6) 50.8 CABLEVISION SY-A CVY TH 6,701.2 (5,022.6) 50.8 CABLEVISION SY-A CVY GR 6,701.2 (5,022.6) 50.8 CABLEVISION-W/I 8441293Q US 6,701.2 (5,022.6) 50.8 CABLEVISION-W/I CVC-W US 6,701.2 (5,022.6) 50.8 CAMBIUM LEARNING ABCD US 154.9 (77.3) (19.9) CARBYLAN THERAPE CBYL US 10.9 (0.1) 1.9 CASELLA WASTE WA3 GR 649.9 (8.5) (18.9) CASELLA WASTE CWST US 649.9 (8.5) (18.9) CEDAR FAIR LP FUN US 2,005.9 (21.2) (74.4) CEDAR FAIR LP 7CF GR 2,005.9 (21.2) (74.4) CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CHOICE HOTELS CHH US 661.1 (413.5) 175.4 CHOICE HOTELS CZH GR 661.1 (413.5) 175.4 CIENA CORP CIEN US 2,056.2 (88.6) 902.8 CIENA CORP CIE1 GR 2,056.2 (88.6) 902.8 CIENA CORP CIE1 TH 2,056.2 (88.6) 902.8 CIENA CORP CIEN TE 2,056.2 (88.6) 902.8 CINCINNATI BELL CBB US 1,733.0 (599.6) 46.3 CINCINNATI BELL CIB GR 1,733.0 (599.6) 46.3 CLEAR CHANNEL-A C7C GR 6,179.8 (255.3) 410.7 CLEAR CHANNEL-A CCO US 6,179.8 (255.3) 410.7 CLIFFS NATURAL R CLF US 2,702.6 (1,782.1) 677.9 CLIFFS NATURAL R CLF2EUR EU 2,702.6 (1,782.1) 677.9 CLIFFS NATURAL R CVA GR 2,702.6 (1,782.1) 677.9 CLIFFS NATURAL R CVA TH 2,702.6 (1,782.1) 677.9 CLIFFS NATURAL R CLF* MM 2,702.6 (1,782.1) 677.9 COLLEGIUM PHARMA COLL US 5.1 (12.2) (5.9) CONNECTURE INC CNXR US 112.3 (28.8) (19.1) CONNECTURE INC 2U7 GR 112.3 (28.8) (19.1) CORINDUS VASCULA CVRS US 0.0 (0.0) (0.0) CORIUM INTERNATI 6CU GR 62.7 (0.4) 35.9 CORIUM INTERNATI CORI US 62.7 (0.4) 35.9 CYAN INC CYNI US 112.1 (18.4) 56.9 CYAN INC YCN GR 112.1 (18.4) 56.9 DELEK LOGISTICS DKL US 332.6 (20.6) 11.8 DELEK LOGISTICS D6L GR 332.6 (20.6) 11.8 DIRECTV DTV US 24,301.0 (4,280.0) 482.0 DIRECTV DTV CI 24,301.0 (4,280.0) 482.0 DIRECTV DIG1 GR 24,301.0 (4,280.0) 482.0 DIRECTV DTVEUR EU 24,301.0 (4,280.0) 482.0 DOMINO'S PIZZA EZV TH 637.0 (1,213.6) 170.7 DOMINO'S PIZZA DPZ US 637.0 (1,213.6) 170.7 DOMINO'S PIZZA EZV GR 637.0 (1,213.6) 170.7 DUN & BRADSTREET DB5 GR 2,027.7 (1,201.3) (276.7) DUN & BRADSTREET DNB1EUR EU 2,027.7 (1,201.3) (276.7) DUN & BRADSTREET DB5 TH 2,027.7 (1,201.3) (276.7) DUN & BRADSTREET DNB US 2,027.7 (1,201.3) (276.7) DUNKIN' BRANDS G 2DB TH 3,360.1 (84.9) 278.7 DUNKIN' BRANDS G 2DB GR 3,360.1 (84.9) 278.7 DUNKIN' BRANDS G DNKN US 3,360.1 (84.9) 278.7 DURATA THERAPEUT DRTX US 82.1 (16.1) 11.7 DURATA THERAPEUT DTA GR 82.1 (16.1) 11.7 DURATA THERAPEUT DRTXEUR EU 82.1 (16.1) 11.7 EDGEN GROUP INC EDG US 883.8 (0.8) 409.2 EMPIRE RESORTS I LHC1 GR 39.9 (17.1) 3.2 EMPIRE RESORTS I NYNY US 39.9 (17.1) 3.2 ENTELLUS MEDICAL 29E GR 14.0 (8.0) 4.8 ENTELLUS MEDICAL ENTL US 14.0 (8.0) 4.8 EOS PETRO INC EOPT US 1.4 (20.5) (21.7) EXELIXIS INC EXEL US 282.9 (146.8) 66.4 FAIRWAY GROUP HO FWM US 372.2 (16.5) 17.9 FAIRWAY GROUP HO FGWA GR 372.2 (16.5) 17.9 FENIX PARTS INC FENX US 0.8 (1.1) (1.1) FERRELLGAS-LP FEG GR 1,747.0 (128.0) (6.4) FERRELLGAS-LP FGP US 1,747.0 (128.0) (6.4) FREESCALE SEMICO 1FS TH 3,096.0 (3,454.0) 1,174.0 FREESCALE SEMICO FSLEUR EU 3,096.0 (3,454.0) 1,174.0 FREESCALE SEMICO 1FS GR 3,096.0 (3,454.0) 1,174.0 FREESCALE SEMICO FSL US 3,096.0 (3,454.0) 1,174.0 FUELSTREAM INC S4HF GR 0.1 (6.4) (6.4) GAMING AND LEISU GLPI US 2,552.5 (125.5) 1.1 GAMING AND LEISU 2GL GR 2,552.5 (125.5) 1.1 GARDA WRLD -CL A GW CN 1,482.9 (332.3) 47.7 GARTNER INC IT US 1,789.4 (139.5) (420.1) GARTNER INC GGRA GR 1,789.4 (139.5) (420.1) GENESIS HEALTHCA GEN US 6,031.4 (205.5) 209.3 GENESIS HEALTHCA SH11 GR 6,031.4 (205.5) 209.3 GENTIVA HEALTH GTIV US 1,225.2 (285.2) 130.0 GENTIVA HEALTH GHT GR 1,225.2 (285.2) 130.0 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GOLD RESERVE INC GRZ CN 19.4 (21.0) (31.4) GOLD RESERVE INC GDRZF US 19.4 (21.0) (31.4) GOLD RESERVE INC GOD GR 19.4 (21.0) (31.4) GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 GYMBOREE CORP/TH GYMB US 1,187.9 (332.3) 43.0 HCA HOLDINGS INC HCA US 31,288.0 (6,222.0) 1,958.0 HCA HOLDINGS INC 2BH TH 31,288.0 (6,222.0) 1,958.0 HCA HOLDINGS INC 2BH GR 31,288.0 (6,222.0) 1,958.0 HD SUPPLY HOLDIN 5HD GR 6,060.0 (760.0) 1,163.0 HD SUPPLY HOLDIN HDS US 6,060.0 (760.0) 1,163.0 HERBALIFE LTD HLF US 2,388.9 (301.2) 259.3 HERBALIFE LTD HOO GR 2,388.9 (301.2) 259.3 HERBALIFE LTD HLFEUR EU 2,388.9 (301.2) 259.3 HOVNANIAN ENT-A HOV US 2,461.4 (130.0) 1,608.3 HOVNANIAN ENT-B HOVVB US 2,461.4 (130.0) 1,608.3 HOVNANIAN-A-WI HOV-W US 2,461.4 (130.0) 1,608.3 HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8) IHEARTMEDIA INC IHRT US 13,581.9 (10,153.7) 683.9 INCYTE CORP INCY US 862.6 (41.4) 466.6 INCYTE CORP ICY TH 862.6 (41.4) 466.6 INCYTE CORP ICY GR 862.6 (41.4) 466.6 INCYTE CORP INCYEUR EU 862.6 (41.4) 466.6 INFOR US INC LWSN US 6,778.1 (460.0) (305.9) IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 JUST ENERGY GROU JE CN 1,205.7 (539.0) (119.7) JUST ENERGY GROU 1JE GR 1,205.7 (539.0) (119.7) JUST ENERGY GROU JE US 1,205.7 (539.0) (119.7) KEMPHARM INC KMPH US 13.7 (24.3) 6.3 LEAP WIRELESS LEAP US 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI TH 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI GR 4,662.9 (125.1) 346.9 LEE ENTERPRISES LEE US 779.6 (165.1) (20.2) LENNOX INTL INC LXI GR 1,879.5 (16.2) 369.8 LENNOX INTL INC LII US 1,879.5 (16.2) 369.8 LORILLARD INC LLV GR 4,154.0 (2,134.0) 1,135.0 LORILLARD INC LO US 4,154.0 (2,134.0) 1,135.0 LORILLARD INC LLV TH 4,154.0 (2,134.0) 1,135.0 MANNKIND CORP NNF1 GR 360.0 (97.0) (222.5) MANNKIND CORP MNKD US 360.0 (97.0) (222.5) MANNKIND CORP NNF1 TH 360.0 (97.0) (222.5) MARRIOTT INTL-A MAQ GR 6,803.0 (2,537.0) (1,202.0) MARRIOTT INTL-A MAQ TH 6,803.0 (2,537.0) (1,202.0) MARRIOTT INTL-A MAR US 6,803.0 (2,537.0) (1,202.0) MDC COMM-W/I MDZ/W CN 1,640.1 (196.6) (284.0) MDC PARTNERS-A MDCA US 1,640.1 (196.6) (284.0) MDC PARTNERS-A MD7A GR 1,640.1 (196.6) (284.0) MDC PARTNERS-A MDZ/A CN 1,640.1 (196.6) (284.0) MDC PARTNERS-EXC MDZ/N CN 1,640.1 (196.6) (284.0) MERITOR INC AID1 GR 2,317.0 (570.0) 268.0 MERITOR INC MTOR US 2,317.0 (570.0) 268.0 MERRIMACK PHARMA MACK US 127.0 (128.8) (4.4) MERRIMACK PHARMA MP6 GR 127.0 (128.8) (4.4) MICHAELS COS INC MIK US 2,005.0 (2,111.0) 572.0 MICHAELS COS INC MIM GR 2,005.0 (2,111.0) 572.0 MONEYGRAM INTERN MGI US 4,578.9 (261.8) (45.4) MOODY'S CORP DUT GR 4,976.0 (146.2) 1,901.1 MOODY'S CORP MCOEUR EU 4,976.0 (146.2) 1,901.1 MOODY'S CORP MCO US 4,976.0 (146.2) 1,901.1 MOODY'S CORP DUT TH 4,976.0 (146.2) 1,901.1 MORGANS HOTEL GR MHGC US 532.4 (246.2) 31.0 MORGANS HOTEL GR M1U GR 532.4 (246.2) 31.0 MOXIAN CHINA INC MOXC US 2.3 (5.4) (5.8) MPG OFFICE TRUST 1052394D US 1,280.0 (437.3) - NATIONAL CINEMED XWM GR 985.6 (219.8) 63.5 NATIONAL CINEMED NCMI US 985.6 (219.8) 63.5 NAVISTAR INTL IHR TH 6,785.0 (4,688.0) 844.0 NAVISTAR INTL IHR GR 6,785.0 (4,688.0) 844.0 NAVISTAR INTL NAV US 6,785.0 (4,688.0) 844.0 NEFF CORP-CL A NEFF US 634.4 (202.7) (12.8) NEW ENG RLTY-LP NEN US 177.8 (27.4) - NORTHWEST BIO NWBO US 58.4 (35.0) (54.2) NORTHWEST BIO NBYA GR 58.4 (35.0) (54.2) NTELOS HOLDINGS NTLS US 708.5 (16.6) 203.7 OCATA THERAPEUTI T2N1 GR 5.7 (2.7) (0.9) OCATA THERAPEUTI OCAT US 5.7 (2.7) (0.9) OMEROS CORP OMER US 11.1 (42.7) (9.3) OMEROS CORP 3O8 GR 11.1 (42.7) (9.3) OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0) PALM INC PALM US 1,007.2 (6.2) 141.7 PBF LOGISTICS LP PBFX US 402.3 (112.0) 30.1 PBF LOGISTICS LP 11P GR 402.3 (112.0) 30.1 PHILIP MORRIS IN PM US 33,255.0 (12,246.0) (705.0) PHILIP MORRIS IN PM1 TE 33,255.0 (12,246.0) (705.0) PHILIP MORRIS IN PM1CHF EU 33,255.0 (12,246.0) (705.0) PHILIP MORRIS IN PMI SW 33,255.0 (12,246.0) (705.0) PHILIP MORRIS IN PM1EUR EU 33,255.0 (12,246.0) (705.0) PHILIP MORRIS IN 4I1 GR 33,255.0 (12,246.0) (705.0) PHILIP MORRIS IN 4I1 TH 33,255.0 (12,246.0) (705.0) PHILIP MORRIS IN 4I1 QT 33,255.0 (12,246.0) (705.0) PHILIP MORRIS IN PM FP 33,255.0 (12,246.0) (705.0) PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PLY GEM HOLDINGS PGEM US 1,231.9 (150.1) 241.4 PLY GEM HOLDINGS PG6 GR 1,231.9 (150.1) 241.4 POLYMER GROUP IN POLGA US 1,901.8 (12.6) 315.2 POLYMER GROUP-B POLGB US 1,901.8 (12.6) 315.2 PROTALEX INC PRTX US 0.6 (11.5) 0.0 PROTECTION ONE PONE US 562.9 (61.8) (7.6) PUREBASE CORP PUBC US 0.3 (1.0) (0.3) QUALITY DISTRIBU QDZ GR 417.9 (26.9) 110.6 QUALITY DISTRIBU QLTY US 417.9 (26.9) 110.6 QUINTILES TRANSN QTS GR 3,236.7 (612.3) 778.1 QUINTILES TRANSN Q US 3,236.7 (612.3) 778.1 RAYONIER ADV RYAM US 1,281.8 (52.6) 179.2 RAYONIER ADV RYQ GR 1,281.8 (52.6) 179.2 RE/MAX HOLDINGS 2RM GR 362.5 (0.2) 41.0 RE/MAX HOLDINGS RMAX US 362.5 (0.2) 41.0 REGAL ENTERTAI-A RGC* MM 2,484.4 (911.5) (118.6) REGAL ENTERTAI-A RGC US 2,484.4 (911.5) (118.6) REGAL ENTERTAI-A RETA GR 2,484.4 (911.5) (118.6) RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTPATH INC PRM US 208.0 (91.7) 3.6 RETROPHIN INC RTRX US 135.5 (37.3) (70.2) RETROPHIN INC 17R GR 135.5 (37.3) (70.2) REVLON INC-A RVL1 GR 1,873.7 (658.9) 315.1 REVLON INC-A REV US 1,873.7 (658.9) 315.1 ROUNDY'S INC RNDY US 1,112.5 (87.0) 80.0 ROUNDY'S INC 4R1 GR 1,112.5 (87.0) 80.0 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 RYERSON HOLDING 7RY GR 1,903.2 (135.0) 706.3 RYERSON HOLDING 7RY TH 1,903.2 (135.0) 706.3 RYERSON HOLDING RYI US 1,903.2 (135.0) 706.3 SALLY BEAUTY HOL S7V GR 2,134.9 (261.0) 766.9 SALLY BEAUTY HOL SBH US 2,134.9 (261.0) 766.9 SBA COMM CORP-A SBAC US 7,527.3 (1,036.8) 38.5 SBA COMM CORP-A SBJ TH 7,527.3 (1,036.8) 38.5 SBA COMM CORP-A SBACEUR EU 7,527.3 (1,036.8) 38.5 SBA COMM CORP-A SBJ GR 7,527.3 (1,036.8) 38.5 SCIENTIFIC GAM-A TJW GR 9,703.4 (189.4) 686.9 SCIENTIFIC GAM-A SGMS US 9,703.4 (189.4) 686.9 SEARS HOLDINGS SEE TH 13,209.0 (945.0) (213.0) SEARS HOLDINGS SHLD US 13,209.0 (945.0) (213.0) SEARS HOLDINGS SEE GR 13,209.0 (945.0) (213.0) SEQUENOM INC QNMA QT 145.5 (15.1) 84.4 SEQUENOM INC SQNM US 145.5 (15.1) 84.4 SEQUENOM INC QNMA TH 145.5 (15.1) 84.4 SEQUENOM INC SQNMEUR EU 145.5 (15.1) 84.4 SEQUENOM INC QNMA GR 145.5 (15.1) 84.4 SILVER SPRING NE 9SI GR 528.2 (94.3) (10.2) SILVER SPRING NE SSNI US 528.2 (94.3) (10.2) SILVER SPRING NE 9SI TH 528.2 (94.3) (10.2) SIRIUS XM CANADA XSR CN 298.2 (128.5) (173.7) SIRIUS XM CANADA SIICF US 298.2 (128.5) (173.7) SONIC CORP SONC US 625.8 (0.3) 13.7 SONIC CORP SO4 GR 625.8 (0.3) 13.7 SONIC CORP SONCEUR EU 625.8 (0.3) 13.7 SPORTSMAN'S WARE SPWH US 270.7 (31.3) 86.4 SPORTSMAN'S WARE 06S GR 270.7 (31.3) 86.4 SUPERVALU INC SVU US 4,485.0 (636.0) 167.0 SUPERVALU INC SJ1 GR 4,485.0 (636.0) 167.0 SUPERVALU INC SJ1 TH 4,485.0 (636.0) 167.0 SYNERGY PHARMACE SGYP US 194.8 (24.7) 163.1 SYNERGY PHARMACE SGYPEUR EU 194.8 (24.7) 163.1 SYNERGY PHARMACE SGYP GR 194.8 (24.7) 163.1 THERAVANCE THRX US 488.7 (260.1) 251.4 THERAVANCE HVE GR 488.7 (260.1) 251.4 THRESHOLD PHARMA NZW1 GR 88.0 (19.9) 53.1 THRESHOLD PHARMA THLD US 88.0 (19.9) 53.1 TRANSDIGM GROUP T7D GR 7,226.2 (1,326.2) 853.8 TRANSDIGM GROUP TDG US 7,226.2 (1,326.2) 853.8 TRINET GROUP INC TN3 GR 1,620.2 (15.1) 15.2 TRINET GROUP INC TN3 TH 1,620.2 (15.1) 15.2 TRINET GROUP INC TNETEUR EU 1,620.2 (15.1) 15.2 TRINET GROUP INC TNET US 1,620.2 (15.1) 15.2 TRYCERA FINANCIA TRYF US 0.0 (3.3) (3.2) UNISYS CORP UIS US 2,131.5 (1,421.3) 242.8 UNISYS CORP UIS1 SW 2,131.5 (1,421.3) 242.8 UNISYS CORP UISCHF EU 2,131.5 (1,421.3) 242.8 UNISYS CORP USY1 GR 2,131.5 (1,421.3) 242.8 UNISYS CORP USY1 TH 2,131.5 (1,421.3) 242.8 UNISYS CORP UISEUR EU 2,131.5 (1,421.3) 242.8 VENOCO INC VQ US 596.0 (31.1) 52.2 VERISIGN INC VRSN US 2,607.7 (947.9) 17.8 VERISIGN INC VRS GR 2,607.7 (947.9) 17.8 VERISIGN INC VRS TH 2,607.7 (947.9) 17.8 VERIZON TELEMATI HUTC US 110.2 (101.6) (113.8) VIKING THERAPEUT 1VT GR 3.0 (22.1) (21.7) VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WW6 GR 1,446.4 (1,385.2) (260.9) WEIGHT WATCHERS WW6 TH 1,446.4 (1,385.2) (260.9) WEIGHT WATCHERS WTW US 1,446.4 (1,385.2) (260.9) WEIGHT WATCHERS WTWEUR EU 1,446.4 (1,385.2) (260.9) WEST CORP WSTC US 3,546.2 (647.7) 247.3 WEST CORP WT2 GR 3,546.2 (647.7) 247.3 WESTERN REFINING WNRL US 434.0 (27.4) 71.5 WESTERN REFINING WR2 GR 434.0 (27.4) 71.5 WESTMORELAND COA WLB US 1,829.7 (388.7) 59.0 WESTMORELAND COA WME GR 1,829.7 (388.7) 59.0 WESTMORELAND RES 2OR1 GR 204.0 (14.2) (57.7) WESTMORELAND RES WMLP US 204.0 (14.2) (57.7) WYNN RESORTS LTD WYR GR 9,151.7 (147.2) 1,135.3 WYNN RESORTS LTD WYR TH 9,151.7 (147.2) 1,135.3 WYNN RESORTS LTD WYNN SW 9,151.7 (147.2) 1,135.3 WYNN RESORTS LTD WYR QT 9,151.7 (147.2) 1,135.3 WYNN RESORTS LTD WYNN US 9,151.7 (147.2) 1,135.3 WYNN RESORTS LTD WYNN* MM 9,151.7 (147.2) 1,135.3 XERIUM TECHNOLOG XRM US 561.0 (102.9) 81.5 XERIUM TECHNOLOG TXRN GR 561.0 (102.9) 81.5 XOMA CORP XOMA US 78.1 (13.4) 46.2 XOMA CORP XOMA TH 78.1 (13.4) 46.2 YRC WORLDWIDE IN YEL1 TH 1,966.2 (479.7) 148.7 YRC WORLDWIDE IN YEL1 GR 1,966.2 (479.7) 148.7 YRC WORLDWIDE IN YRCW US 1,966.2 (479.7) 148.7 ********* 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 ***