/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/150612.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, June 12, 2015, Vol. 19, No. 163 Headlines 2 D'S OILFIELD: Case Summary & 20 Largest Unsecured Creditors ADS TACTICAL: S&P Revises Outlook to Stable & Affirms 'B' CCR AGRITEK HOLDINGS: Reports $760K Net Loss in 1st Quarter ALERE INC: S&P Assigns 'CCC+' Rating on $425MM Sr. Sub. Notes ALLIED SYSTEMS: US Trustee, Ron Burkle Object to Chapter 11 Plan AMEDICA CORP: Has $5.38-Mil. Net Loss for March 31 Quarter AMERICAN CASINO: S&P Assigns BB- Rating on $310MM 1st Lien Loans AMERICAN POWER: Conference Call Held to Provide Company Update ANCHOR GLASS: S&P Rates New $465MM 1st Lien Term Loan 'BB-' ARCAPITA BANK: NorthStar Buys US Real Estate Portfolio for $640M ATLS ACQUISITION: Zuckerman Spaeder Buys Dolan Claim BG MEDICINE: Amends Current Report with SEC BIO-KEY INTERNATIONAL: Lacks Revenue to Support Operations BLAKENEY COMPANY: Case Summary & 20 Largest Unsecured Creditors BRANCH CHRISTIAN: Closes Bookstore Due to Stiff Competition BRIAR'S CREEK: Duffy & Young Sells $56K Claim to ASM Capital BRIGHT MOUNTAIN: Posts $334K Net Loss in March 31 Quarter C. WONDER: Deadline to Decide on HQ Lease Extended to Aug. 20 CAL DIVE: $13,000 in Claims Switched Hands in March 2015 CAL DIVE: Huber Capital Reports 4.9% Stake as of May 31 CALMENA ENERGY: Creditors Proofs of Claim Due July 31 CAPSTONE THERAPEUTIC: Reports $716K Net Loss in First Quarter CEL-SCI CORP: Incurs $12.6-Mil. Net Loss for First Quarter CHASSIX HOLDINGS: $5,000 in Claims Sold Between March & April CIRQUE DU SOLEIL: S&P Assigns 'B' CCR & Rates 1st Lien Loans 'B+' CLOUDEEVA INC: Sapphire Sells $20,000 Claim to Liquidity Solutions CORINTHAN COLLEGES: Richards Layton Approved as Bankruptcy Counsel CORINTHIAN COLLEGES: Rust/Omni Approved as Administrative Agent CREATIVE CIRCLE: S&P Removes 'B' CCR From CreditWatch Positive CTI BIOPHARMA: Amends License Agreement with Baxter DAMES POINT: July 2 Hearing on UST Bid for Dismissal/Conversion DEJOUR ENERGY: Reports C$1.17-Mil. Net Loss in Q1 DELTEK INC: S&P Affirms 'B' Corp. Credit Rating, Outlook Stable DENDREON CORP: $98,000 in Claims Switched Hands Feb. to April DOMINION PAVING: Voluntary Chapter 11 Case Summary EL PASO CHILDREN'S HOSPITAL: Texas Attorney Gen. Supports Mediation ELBIT IMAGING: Shareholders Exercise Right to Withdraw From BUTU ELITE PHARMACEUTICALS: Signs Licensing Agreement with Epic ENERGY FUTURE: Harris Industries Sells $1.4K Claim to Sonar Credit ENERGY FUTURE: July 13 Hearing to Determine Oncor Leading Bidder ESPERANZA INN: Case Summary & 5 Largest Unsecured Creditors EXPERIENCE INC: Point Park to Disable Career Network Website FINJAN HOLDINGS: June Markman Hearing Set for Proofpoint, Symantec FLEXPOINT SENSOR: Reports $479K Net Loss in First Quarter FOUR OAKS: Names David Rupp as New Chief Executive Officer FREDERICK'S OF HOLLYWOOD: Bayard Okayed as Committee Co-Counsel FREDERICK'S OF HOLLYWOOD: BDO Okayed as Committee Advisor FREDERICK'S OF HOLLYWOOD: Cooley Okayed as Committee Lead Counsel FREDERICK'S OF HOLLYWOOD: Court Issues 3rd Interim DIP Order FREDERICK'S OF HOLLYWOOD: Seeks General Release for Salus FURNITURE BRANDS: Liquidating Trustee Has Settlement Pact With EPA GBG RANCH: Updates Full-Payment Liquidating Plan GEORGE WASHINGTON ACADEMY: S&P Raises LT Rating From 'BB+' GIGGLES N HUGS: Reports $319K Net Loss in March 29 Quarter GMG CAPITAL: Athenian Says 2nd Amended Plan Unconfirmable GRASS VALLEY: Amends List of Largest Unsecured Creditors HAAS ENVIRONMENTAL: Pipe Services Sells $73,000 Claim to Sierra HD SUPPLY: Posts $242 Million Net Income in First Quarter HORNED DORSET: Creditor's Meeting Slated for July 6 HORNED DORSET: Wilhelm Sack to Serve as Representative HOVNANIAN ENTERPRISES: Incurs $19.6 Million Net Loss in Fiscal Q2 IBCS MINING: Cash Collateral Hearing Continued Until July 15 IBCS MINING: Hearing on Plan Outline Continued Until July 15 INTERNATIONAL BRIDGE: Can Access Cash Collateral on Interim Basis K&K INC: Case Summary & Largest Unsecured Creditor LANGUAGE LINE: S&P Raises CCR to 'B', Outlook Stable LANTHEUS MEDICAL: Proposes $365M Loan Facility with Credit Suisse LERIN HILLS: Proposes DIP Financing From Putnam LERIN HILLS: Seeks to Reject Several Contracts LERIN HILLS: Wants Notice of MUD Actions LONESTAR GEOPHYSICAL: Amends Application to Hire McAfee & Taft LUMBERMENS UNDERWRITING: Put Into Rehabilitation MARTINSBURG PIKE: Case Summary & 4 Largest Unsecured Creditors MDC PARTNERS: S&P Affirms 'B' CCR, Outlook Remains Stable MINT RESTAURANT: Remains Open; IRS Is Among Largest Creditors MUSCLEPHARM CORPORATION: Shareholders Raise Liquidity Concerns NATROL INC: $232,000 in Claims Switched Hands in April 2015 NATROL INC: Kochhar Okayed as Indian Counsel Effective April 21 NEONODE INC: Stockholders Reelect 2 Directors NET ELEMENT: Registers 53.6 Million Shares for Resale NORTHWEST BANCORP: Oct. 26 Set as Bar Date for Governmental Units PACIFIC STEEL: Snow And Galgiani Sells $8.9K Claim to Sonar Credit PELICAN CAY: Case Summary & 3 Largest Unsecured Creditors PHILLIPS INVESTMENTS: Plan Filing Date Extended to July 31 QUICKSILVER RESOURCES: Incurs $116-Mil. Net Loss for Q1 R & S ST. ROSE: Hearing on Plan Continued to July 1 REED AND BARTON: Gets Final Approval to Access $2.3-Mil. DIP Loan ROOMLINX INC: KMJ Corbin Expresses Going Concern Doubt RYNARD PROPERTIES: Seeks Authority to Amend Cash Collateral Budget SEARS HOLDINGS: Announces Commencement of Seritage Rights Offering SG BLOCKS: Incurs $357K Net Loss in First Quarter SOCKET MOBILE: Reports $71.6K Net Loss in First Quarter SOLAR POWER: Announces $50 Million Share Repurchase Program SPHERIX INC: Reports $4.09-Mil. Loss in First Quarter STANDARD REGISTER: Files Schedules of Assets and Liabilities STANDARD REGISTER: Proposes Up to $4.3MM Bonuses to Key Employees TELEXFREE LLC: Meeting of Creditors May Be Scheduled in Two Months TEXAS REGENCY: Apartment Files for Ch. 11 with $11.4MM Debt TEXAS REGENCY: Case Summary & 20 Largest Unsecured Creditors THERAPEUTICSMD INC: Completes Enrollment in The Rejoice Trial TRANSGENOMIC INC: Expands Board of Directors and Executive Team TRUE DRINKS: Reports $2.28-Mil. Net Loss in First Quarter TRUMP ENTERTAINMENT: Regulator Allows Carl Icahn to Own Taj Mahal TRUMP ENTERTAINMENT: Regulators Bless Icahn's Purchase of Taj Mahal TWIN RINKS: Proposes Jones & Schwartz as Counsel TWIN RINKS: Taps Greenspan as Accountants UROLOGIX INC: Has $349K Net Loss in Q3 Ended March 31 VISITING NURSE: Case Summary & 20 Largest Unsecured Creditors WBH ENERGY: Castlelake Withdraws Bid to Convert Case to Chapter 7 WET SEAL: No Objection to Plan Exclusivity Extension [^] BOOK REVIEW: EPIDEMIC OF CARE ********* 2 D'S OILFIELD: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: 2 D's Oilfield Services, Inc. PO Box 10888 Midland, TX 79702 Case No.: 15-70082 Chapter 11 Petition Date: June 10, 2015 Court: United States Bankruptcy Court Western District of Texas (Midland) Judge: Hon. Ronald B. King Debtor's Counsel: Max R. Tarbox, Esq. TARBOX LAW, PC 2301 Broadway Lubbock, TX 79401 Tel: (806) 686-4448 Fax: (806) 368-9785 Email: max@tarboxlaw.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by David R. Spencer, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/txwb15-70082.pdf ADS TACTICAL: S&P Revises Outlook to Stable & Affirms 'B' CCR ------------------------------------------------------------- Standard & Poor's Ratings Services said that it has revised its outlook on ADS Tactical Inc. to stable from negative. At the same time, S&P affirmed its 'B' corporate credit rating on the company. "The outlook revision reflects the improvement in ADS' liquidity profile, as the company recently extended the maturity date of its $200 million ABL revolver to 2020 from March 2016," said Standard & Poor's credit analyst Chris Mooney. Management has also improved the company's operating efficiency and grown its market share in the face of challenging U.S. defense budget conditions over the past year, which has increased ADS' earnings and improved its credit metrics. The company's debt-to-EBITDA metric declined to 5.2x for the 12 months ended March 31, 2015, from 7.0x for the same period in 2014, due in part to meaningful debt reduction in first-quarter 2015. S&P expects the company's debt-to-EBITDA metric to remain between 5.0x and 5.5x through 2016, with some fluctuation possible based on the timing of working capital payments. The stable outlook reflects that S&P believes ADS' credit metrics will remain relatively steady over the next year, with some fluctuation possible depending on the timing of working capital payments. S&P anticipates that ADS will continue to secure new opportunities and increase its market share, but that its earnings growth will be limited by declining U.S. troop levels and industry pricing pressure as the U.S. Department of Defense moves to reduce its costs. S&P could raise its rating on ADS if its debt-to-EBITDA metric improves to less than 4.5x and its FFO-to-debt ratio rises above 12% from continued improvement in the company's operational performance and higher-than-expected earnings. S&P could lower the rating if unexpected declines in ADS' earnings and cash flow cause its debt-to-EBITDA metric to rise above 7x for a sustained period. AGRITEK HOLDINGS: Reports $760K Net Loss in 1st Quarter ------------------------------------------------------- Agritek Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $760,000 on $7,221 of product revenue for the three months ended March 31, 2015, compared to a net loss of $236,000 on $19,500 of product revenue for the same period last year. The Company's balance sheet at March 31, 2015, showed $1.21 million in total assets, $1.7 million in total liabilities, and a stockholders' deficit of $494,000. As of March 31, 2015 the Company had an accumulated deficit of $12.1 million and working capital deficit of $873,000. These conditions raise substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/xbekbx Agritek Holdings is engaged in the digitization of patient records and distribution of hemp based nutritional products to the medicinal marijuana sector in the United States. The company operates in two segments, Merchant Services and Wholesale Sales. Its products include data management system, a technology platform, which enables consumers to file, store, and retrieve original and authentic personal health documents through the Internet; and energy and hemp ice tea drink products. The company also provides a range of solutions for electronically processing merchant and patient transactions in the healthcare industry. In addition, it is involved in importing and distributing vaporizers and e-cigarettes under the Mont Blunt brand; and managing real property for fully-licensed and compliant growers, and dispensaries in regulated medicinal and recreational markets. The company was formerly known as MediSwipe, Inc. and changed its name to Agritek Holdings, Inc. in May 2014. Agritek Holdings, Inc. was incorporated in 1997 and is based in West Palm Beach, Florida. The Company reported a net loss of $2.01 million on $47,300 in revenues for the year ended Dec. 31, 2014, compared to a net loss of $4.42 million on $144,000 of revenues in the same period last year. Following the 2014 results, D. Brooks & Associates CPA's P.A. expressed substantial doubt about the Company's ability to continue as a going concern citing that the Company has incurred operating losses, has incurred negative cash flows from operations and has a working capital deficit. ALERE INC: S&P Assigns 'CCC+' Rating on $425MM Sr. Sub. Notes ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'CCC+' issue-level rating to Alere Inc.'s proposed offering of $425 million of senior subordinated notes due in eight years. The recovery rating on the notes is '6', reflecting S&P's expectation of negligible (0% to 10%) recovery in the event of payment default. The company will use proceeds from the note issuance to redeem existing senior subordinated notes. Alere is a niche player in the life sciences industry, focusing primarily on the professional diagnostics segment. Over the past year, Alere has had operating weaknesses due to sales declines stemming from its customer mix and lackluster performance from prior acquisitions. Expense reductions have offset some of these issues, but highlighted the company's vulnerability in the competitive life science industry. The operating issues, the company's reliance on primarily one segment, and its niche position support S&P's assessment of "weak" business risk profile. S&P expects that Alere will use proceeds from asset sales to reduce debt and that, together with some EBITDA improvement, will modestly improve credit measures over the next 12 to 18 months. S&P's base-case assumption is that leverage will decline to 8x by the end of 2015 and roughly 7.5x by the end of 2016, inclusive of this debt issuance. Funds from operations (FFO) to total debt will still be less than 10% during this period and, together with leverage of more than 5x, will continue to support S&P's "highly leveraged" financial risk assessment. The corporate credit rating on Alere is 'B' and the outlook is stable. RATINGS LIST Alere Inc. Corporate Credit Rating B/Stable/-- New Rating Alere Inc. $425 Mil. Senior Subordinated Notes Due 2023 CCC+ Recovery Rating 6 ALLIED SYSTEMS: US Trustee, Ron Burkle Object to Chapter 11 Plan ---------------------------------------------------------------- Jim Christie at Reuters reports that the U.S. Trustee and billionaire investor Ron Burkle objected to Allied Systems Holdings' Chapter 11 plan, calling it unconfirmable. The Company's disclosure statement is "another in a seemingly endless list of attempts" by lenders to disenfranchise Mr. Burkle's Yucaipa Cos, which counts Robert Klyman of Gibson Dunn & Crutcher as one of its lawyers, funds affiliated with Yucaipa said in documents filed with the U.S. Bankruptcy Court for the District of Delaware on June 9, 2015, As reported by the Troubled Company Reporter on May 8, 2015, the Company and its debtor affiliates filed with the ankruptcy Court a joint Chapter 11 plan of reorganization, co-proposed by the Committee and the first lien agents. The Plan provides that certain of the Debtors' assets, the Litigation Trust Assets, will vest in the Allied Litigation Trust, and the remainder of the Debtors' assets, including the proceeds from the sale of substantially all of the Debtors' assets, will either revest in the Reorganized Debtors or be distributed to the Debtors' creditors. About Allied Systems Holdings BDCM Opportunity Fund II, LP, Spectrum Investment Partners LP, and Black Diamond CLO 2005-1 Adviser L.L.C., filed involuntary petitions for Allied Systems Holdings Inc. and Allied Systems Ltd. (Bankr. D. Del. Case Nos. 12-11564 and 12-11565) on May 17, 2012. The signatories of the involuntary petitions assert claims of at least $52.8 million for loan defaults by the two companies. Allied Systems, through its subsidiaries, provides logistics, distribution, and transportation services for the automotive industry in North America. Allied Holdings Inc. first filed for chapter 11 protection (Bankr. N.D. Ga. Case Nos. 05-12515 through 05-12537) on July 31, 2005. Jeffrey W. Kelley, Esq., at Troutman Sanders, LLP, represented the Debtors in the 2005 case. Allied won confirmation of a reorganization plan and emerged from bankruptcy in May 2007 with $265 million in first-lien debt and $50 million in second- lien debt. The petitioning creditors said Allied defaulted on payments of $57.4 million on the first lien debt and $9.6 million on the second. They hold $47.9 million, or about 20% of the first-lien debt, and about $5 million, or 17%, of the second-lien obligation. They are represented by Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP; and Adam C. Harris, Esq., and Robert J. Ward, Esq., at Schulte Roth & Zabel LLP. Allied Systems Holdings Inc. formally put itself and 18 subsidiaries into bankruptcy reorganization June 10, 2012, following the filing of the involuntary Chapter 11 petition. The Company is being advised by Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., and Jeffrey W. Kelley, Esq., at Troutman Sanders, Gowling Lafleur Henderson. The bankruptcy court process does not include captive insurance company Haul Insurance Limited or any of the Company's Mexican or Bermudan subsidiaries. The Company also announced that it intends to seek foreign recognition of its Chapter 11 cases in Canada. An official committee of unsecured creditors has been appointed in the case. The Committee consists of Pension Benefit Guaranty Corporation, Central States Pension Fund, Teamsters National Automobile Transporters Industry Negotiating Committee, and General Motors LLC. The Committee is represented by Sidley Austin LLP. In January 2014, the U.S. Trustee for Region 3 appointed a three- member Official Committee of Retirees. Yucaipa Cos. has 55% of the senior debt and took the position it had the right to control actions the indenture trustee would take on behalf of debt holders. The state court ruled in March 2013 that the loan documents didn't allow Yucaipa to vote. In March 2013, the bankruptcy court also gave the official creditors' committee authority to sue Yucaipa. The suit includes claims that the debt held by Yucaipa should be treated as equity or subordinated so everyone else is paid before the Los Angeles- based owner. The judge allowed Black Diamond to participate in the lawsuit against Yucaipa and Allied directors. Allied Systems Holdings, Inc., changed its name to ASHINC Corporation. AMEDICA CORP: Has $5.38-Mil. Net Loss for March 31 Quarter ---------------------------------------------------------- Amedica Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $5.38 million on $4.74 million of product revenue for the three months ended March 31, 2015, compared with a net loss of $4.71 million on $5.78 million of product revenue for the same period in 2014. The Company's balance sheet at March 31, 2015, showed $43.7 million in total assets, $40.5 million in total liabilities, and stockholders' equity of $3.18 million. For the three months ended March 31, 2015 and 2014, the Company incurred used cash in operations of $3 million and $2 million, respectively. The Company had an accumulated deficit of $177.9 million and $172.5 million at March 31, 2015 and Dec. 31, 2014, respectively. To date, the Company's operations have been principally financed from proceeds from the issuance of preferred and common stock, convertible debt and bank debt and, to a lesser extent, cash generated from product sales. It is anticipated that the Company will continue to generate operating losses and use cash in operations through 2015. The Company's ability to access capital when needed is not assured and, if not achieved on a timely basis, will materially harm its business, financial condition and results of operations. These uncertainties create substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/KAvDgZ Amedica Corporation, a commercial-stage biomaterial company, develops, manufactures, and sells a range of medical devices in the United States. It offers Valeo silicon nitride interbody spinal fusion devices for use in the cervical and thoracolumbar areas of the spine; Valeo stand-alone anterior lumbar intervertebral fusion device; and a line of non-silicon nitride spinal fusion products used by surgeons to promote bone growth and fusion in spinal fusion procedures. The company also develops femoral heads for use in its total hip replacements; and femoral condyle components for use in its total knee replacements. It markets and sells its products to surgeons and hospitals in the United States, Europe, and South America through a network of independent sales distributors. The company has research and development agreement with Kyocera Industrial Ceramics Corporation to manufacture silicon nitride-based spinal fusion products and product candidates. Amedica Corporation was founded in 1996 and is headquartered in Salt Lake City, Utah. AMERICAN CASINO: S&P Assigns BB- Rating on $310MM 1st Lien Loans ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned Las Vegas-based casino operator American Casino & Entertainment Properties LLC's (ACEP) proposed $310 million senior secured first-lien credit facilities, consisting of a $15 million revolver due 2020 and a $295 million term loan due 2022, its 'BB-' issue-level rating with a recovery rating of '2', indicating its expectation for substantial (70% to 90%; lower half of the range) recovery for lenders in the event of a payment default. The recovery prospects for first-lien lenders under the proposed credit facilities are lower than recovery prospects on the company's existing first-lien facility because of the higher amount of first-lien debt outstanding at the time of default than under S&P's previous default scenario. S&P's enterprise valuation remains unchanged from its prior analysis. The company will use proceeds from the new term loan, along with cash on hand, to refinance its existing $215 million ($181 million outstanding as of March 31, 2015) first-lien term loan and $120 million second-lien term loan, and to pay transaction fees and expenses and early call premiums. S&P plans to withdraw its ratings on the existing first- and second-lien debt once the proposed transaction closes and the debt is repaid. "Our 'B+' corporate credit rating and stable outlook on ACEP are unchanged. We expect the transaction will improve EBITDA interest coverage closer to 4x from our previous expectation of around 3x at the end of 2015 and improve free operating cash flow generation. We anticipate ACEP will continue to use free cash flow to repay debt helping to further improve credit measures through 2016. We now expect leverage to improve to the high-3x area by the end of 2016 from the low-4x area at the end of 2015, resulting from a combination of debt repayment, along with high-single-digit growth in EBITDA in 2015 and low- to mid-single digit growth in EBITDA in 2016. Notwithstanding the improvement in credit measures, ACEP is controlled by real estate investment funds affiliated with Goldman Sachs and we expect the company's financial policy will remain consistent with our "aggressive" financial risk assessment, namely sustaining leverage in the 4x to 5x range. We believe it unlikely that ACEP will sustain leverage below 4x over the long term," S&P said. RECOVERY ANALYSIS Key analytical factors: S&P's simulated default scenario contemplates a default in 2019, reflecting a significant decline in cash flow as a result of a prolonged economic downturn and increased competitive pressures. S&P assumes a reorganization following the default, using an emergence EBITDA multiple of 6x to value the company. Simulated default assumptions: -- Simulated year of default: 2019 -- EBITDA at emergence: $42 million -- EBITDA multiple: 6x Simplified waterfall: -- Net enterprise value (after 3% admin. costs): $244 million -- Secured first-lien debt: $307 million -- Recovery expectation: 70% to 90% (lower half of the range) Note: all debt amounts include six months of prepetition interest. RATINGS LIST American Casino & Entertainment Properties LLC Corporate Credit Rating B+/Stable/-- New Rating American Casino & Entertainment Properties LLC $15 mil. revolver due 2020 Senior Secured BB- Recovery Rating 2L $295 mil. term loan due 2022 Senior Secured BB- Recovery Rating 2L AMERICAN POWER: Conference Call Held to Provide Company Update -------------------------------------------------------------- American Power Group Corporation held a telephonic conference call on May 20, 2015, to provide an update on the Company to investors. A copy of the transcript of the conference call is available for free at http://is.gd/SZVh9p About American Power Group American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100 percent diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 80% of the normal diesel fuel consumption with the average displacement ranging from 40 percent to 65 percent. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. Additional information at http://www.americanpowergroupinc.com/ American Power reported a net loss available to common stockholders of $3.25 million on $6.28 million of net sales for the year ended Sept. 30, 2014, compared with a net loss available to common stockholders of $2.92 million on $7.01 million of net sales for the year ended Sept. 30, 2013. As of March 31, 2015, the Company had $7.76 million in total assets, $5.37 million in total liabilities and $2.39 million total stockholders' equity. ANCHOR GLASS: S&P Rates New $465MM 1st Lien Term Loan 'BB-' ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' issue-level rating, with a '2' recovery rating, to U.S. glass packaging producer Anchor Glass Container Corp.'s proposed $465 million first-lien term loan maturing in 2022. Anchor Glass will use proceeds to repay the existing $315 million first-lien term loan due 2021, fund an approximate $145 million dividend to shareholders, and pay transaction-related fees and expenses. The '2' recovery rating indicates S&P's expectation of substantial (70% to 90%; lower half of the range) recovery in the event of a payment default. The existing $100 million asset-based lending (ABL) revolving credit facility will remain in place. All of S&P's ratings on Anchor Glass, including the 'B+' corporate credit rating on the company, are unchanged. The outlook is stable. S&P assess the company's business risk profile as "fair," and its financial risk profile as "highly leveraged," as defined in S&P's criteria, which results in an anchor outcome of 'b'. Although Anchor Glass' trailing-12-month debt leverage is 4.7x pro forma for the transaction, S&P assess the company's financial risk profile as highly leveraged, reflecting its view of the financial policy risk associated with the company's ownership by a financial sponsor. S&P adjusts the anchor upward by one notch to account for its positive view of Anchor Glass under S&P's comparable ratings analysis. All other modifiers are neutral for the rating. RECOVERY ANALYSIS Key analytical factors: S&P has assigned issue-level and recovery ratings to Anchor Glass's proposed $465 million first-lien term loan facility. S&P continues to value the company on a going-concern basis using a 5.5x multiple of its estimated emergence EBITDA. S&P estimates that, by emergence, the company would be able to improve its EBITDA to about $75 million. Simulated default assumptions: Year of default: 2019 EBITDA at emergence: $75 million EBITDA multiple: 5.5x ------------------------------------- Gross enterprise value at default: $413 million Administrative costs: $21 ABL borrowings: $50 million Net recovery value: $342 million First-lien term loan outstanding: $465 million -— Recovery expectation: 70% to 90% (lower half of the range) First-lien recovery rating: '2' (lower half of the range) Note: All debt amounts include six months of prepetition interest RATING LIST Anchor Glass Container Corp. Corporate Credit Rating B+/Stable New Rating Anchor Glass Container Corp. $465 mil 1st-lien term loan due 2022 BB- Recovery Rating 2L ARCAPITA BANK: NorthStar Buys US Real Estate Portfolio for $640M ---------------------------------------------------------------- Nadia Saleem at Reuters reports that Arcapita Bank said it had sold its real estate portfolio of retirement communities -- which includes 16 facilities and 4,000 residential units for continuing senior care -- across the U.S. to NorthStar Healthcare Income Trust for $640 million. Reuters quoted Arcapita CEO Atif Abdulmalik as saying, "This transaction represents Arcapita's fifth successful exit in the senior living sector, which continues to benefit from favourable long-term fundamentals. We are pleased with the profitable outcome of this investment." Arcapita has given $3 billion in exit proceeds to its investors in the last two years but did not give a breakdown of profits for its real estate portfolio exit, Reuters relates, citing Mr. Abdulmalik. About Arcapita Bank Arcapita Bank B.S.C., also known as First Islamic Investment Bank B.S.C., along with affiliates, filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 12-11076) in Manhattan on March 19, 2012. The Debtors said they do not have the liquidity necessary to repay a US$1.1 billion syndicated unsecured facility when it comes due on March 28, 2012. Falcon Gas Storage Company, Inc., filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-11790) on April 30, 2012. Falcon Gas is an indirect wholly owned subsidiary of Arcapita that previously owned the natural gas storage business NorTex Gas Storage Company LLC. In early 2010, Alinda Natural Gas Storage I, L.P. (nka Tide Natural Gas Storage I, L.P.), Alinda Natural Gas Storage II, L.P. (nka Tide Natural Gas Storage II, L.P.) acquired the stock of NorTex from Falcon Gas for $515 million. Arcapita guaranteed certain of Falcon Gas' obligations under the NorTex Purchase Agreement. The Debtors tapped Gibson, Dunn & Crutcher LLP as bankruptcy counsel, Linklaters LLP as corporate counsel, Towers & Hamlins LLP as international counsel on Bahrain matters, Hatim S Zu'bi & Partners as Bahrain counsel, KPMG LLP as accountants, Rothschild Inc. and financial advisor, and GCG Inc. as notice and claims agent. Milbank, Tweed, Hadley & McCloy LLP represented the Official Committee of Unsecured Creditors. Houlihan Lokey Capital, Inc., served as its financial advisor and investment banker. Founded in 1996, Arcapita is a global manager of Shari'ah-compliant alternative investments and operates as an investment bank. Arcapita is not a domestic bank licensed in the United States. Arcapita is headquartered in Bahrain and is regulated under an Islamic wholesale banking license issued by the Central Bank of Bahrain. The Arcapita Group employs 268 people and has offices in Atlanta, London, Hong Kong and Singapore in addition to its Bahrain headquarters. The Arcapita Group's principal activities include investing on its own account and providing investment opportunities to third-party investors in conformity with Islamic Shari'ah rules and principles. The Arcapita Group had roughly US$7 billion in assets under management. On a consolidated basis, the Arcapita Group owns assets valued at roughly US$3.06 billion and has liabilities of roughly US$2.55 billion. The Debtors owe US$96.7 million under two secured facilities made available by Standard Chartered Bank. Arcapita explored out-of-court restructuring scenarios but was unable to achieve 100 percent lender consent required to effectuate the terms of an out-of-court restructuring. Subsequent to the Chapter 11 filing, Arcapita Investment Holdings Limited, a wholly owned Debtor subsidiary of Arcapita in the Cayman Islands, issued a summons seeking ancillary relief from the Grand Court of the Cayman Islands with a view to facilitating the Chapter 11 cases. AIHL sought the appointment of Zolfo Cooper as provisional liquidator. As reported in the TCR on Jun 19, 2013, the Bankruptcy Court for the Southern District of New York entered its Findings of Fact, Conclusions of Law, and Order confirming the Second Amended Joint Chapter 11 Plan of Reorganization of Arcapita Bank B.S.C.(c) and Related Debtors with respect to each Debtor other than Falcon Gas Storage Company, Inc. A copy of the Confirmed Second Amended Joint Plan (With First Technical Modifications) is available at: http://bankrupt.com/misc/arcapita.doc1265.pdf The effective date of the Debtors' Second Amended Joint Plan of Reorganization, dated as of June 11, 2013, occurred on Sept. 17, 2013. ATLS ACQUISITION: Zuckerman Spaeder Buys Dolan Claim ---------------------------------------------------- In the Chapter 11 cases of ATLS Acquisition, LLC, et al., two claims switched hands in May 2015: Transferee Transferor Claim Amount ---------- ---------- ------------ Claims Recovery Group LLC Invacare Supply Group $8,601.00 Zuckerman Spaeder LLP Carl Dolan $279,874.03 About Liberty Medical Entities that own diabetics supply provider Liberty Medical led by ATLS Acquisition, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-10262) on Feb. 15, 2013, just less than three months after a management buy-out and amid a notice by the lender who financed the transaction that it's exercising an option to acquire the business. Liberty has been in business for 22 years serving the needs of both type 1 and type 2 diabetic patients. Liberty is a mail order provider of diabetes testing supplies. In addition to diabetes testing supplies, the Debtors also sell insulin pumps and insulin pump supplies, ostomy, catheter and CPAP supplies and operate a large mail order pharmacy. Liberty operates in seven different locations and has 1,684 employees. Dennis A. Meloro, Esq., at Greenberg Traurig, LLP, serves as the Debtor's counsel; Ernst & Young LLP to provide investment banking advice; and Epiq Bankruptcy Solutions, LLC, as claims and noticing agent for the Clerk of the Bankruptcy Court. An official committee of unsecured creditors has been appointed in the case and consists of LifeScan, Inc., Abbott Laboratories, and Teva Pharmaceuticals USA, Inc. They are represented by Joseph H. Huston Jr., Esq., Maria Aprile Sawczuk, Esq., and Camille C. Bent, Esq., of Stevens & Lee P.C. as well as Bruce Buechler, Esq., S. Jason Teele, Esq., and Nicole Stefanelli, Esq. of Lowenstein Sandler LLP. The Committee has tapped Mesirow Financial Consulting, LLC, as financial advisors. * * * In November 2014, the Debtor received the green light from the Bankruptcy Court for its $68.5 million sale to an investment group led by private equity firm Palm Beach Capital. The auction for the assets boosted the purchase price by more than $20 million. BG MEDICINE: Amends Current Report with SEC ------------------------------------------- BG Medicine, Inc., amended its current report on Form 8-K filed on May 12, 2015, to update the description of the voting rights of the Series A Preferred Stock, to file an updated Certificate of Designations to reflect the revised voting rights of the Series A Preferred Stock for compliance with NASDAQ Listing Rule 5640, and to clarify certain other disclosures. Abbott Amendment On Dec. 23, 2014, the FDA granted 510(k) clearance for Abbott Laboratories' (Abbott) ARCHITECT Galectin-3 assay, the first FDA cleared automated blood test for Galectin-3. On May 8, 2015, in anticipation of the U.S. market launch of the Abbott Laboratories' (Abbott) ARCHITECT Galectin-3 assay, BG Medicine, Inc., a Delaware corporation, amended its license and development agreement with Abbott. As Abbott takes the final steps toward making the assay available in the U.S., the Company and Abbott amended the agreement due to market dynamic considerations since the Galectin-3 assay first began development in 2009. Series A Preferred Stock Financing with Flagship On May 12, 2015, the Company entered into a Securities Purchase Agreement with the Company's principal stockholders, Applied Genomic Technology Capital Fund, L.P., AGTC Advisors Fund, L.P. and Flagship Ventures Fund 2007, L.P., which are affiliates of the Company's directors, Noubar B. Afeyan, Ph.D. and Harry W. Wilcox. Pursuant to the terms and subject to the conditions contained in the Purchase Agreement, the Company issued and sold to the Purchasers secured convertible promissory notes in aggregate principal amount of $500,000. In addition and pursuant to the terms of the Purchase Agreement, and subject to the approval of the Company's stockholders at the Company's 2015 annual meeting of stockholders and the satisfaction or waiver of other closing conditions, the Company has agreed to issue and sell to the Purchasers $2,000,000 of shares of newly created Series A Preferred Stock, $0.001 par value per share, of the Company at the second closing to be held following the Company's 2015 Annual Meeting. The Notes and Series A Preferred Stock will not be and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. Secured Convertible Promissory Notes and Related Agreements Subject to the approval of the issuance of the Series A Preferred Stock by the Company's stockholders at the 2015 Annual Meeting, at the Second Closing the Notes will be automatically converted pursuant to their terms into that number of shares of Series A Preferred Stock equal to the principal amount of the Notes plus all accrued but unpaid interest thereon divided by the Purchase Price of the Series A Preferred Stock. The Notes will not be convertible into shares of Series A Preferred Stock unless and until the Company's stockholders approve the issuance of shares of Series A Preferred Stock and the Second Closing is consummated. If the Notes have not been repaid or converted prior to the earlier of Sept. 30, 2015, and the date the Company terminates the Purchase Agreement in accordance with its terms, the Company will be obligated to repay the outstanding principal amount of the Notes plus any accrued but unpaid interest thereon. In the event of a Change of Control, the holders of the Notes will be entitled to the payment of a premium equal to two times the outstanding principal amount of the Notes, in addition to the payment of principal and accrued but unpaid interest thereon prior to any payments to holders of the common stock, $0.001 par value per share, of the Company. Contemporaneously with the execution and delivery of the Purchase Agreement and the issuance of the Notes by the Company to the Purchasers, the Company and the Purchasers entered into a Security Agreement, dated May 12, 2015, pursuant to which the Company granted to the Purchasers a security interest in substantially all of the Company's assets, other than the Company's intellectual property, to secure the Company's obligations under the Notes. Pursuant to the terms of the Security Agreement, the Company's intellectual property will become subject to the security interest granted by the Company to the Purchasers upon repayment of all amounts owed under that certain Loan and Security Agreement by and among the Company, General Electric Capital Corporation as Agent, the Lenders and the Guarantors dated as of February 10, 2012, as amended. Pursuant to a Subordination and Intercreditor Agreement by and among the Company, the Purchasers and GECC, dated May 12, 2015, entered into contemporaneously with the execution and delivery of the Purchase Agreement, the Company's payment obligations under the Notes are subordinated to the Company’s payment obligations under the GECC Agreement and the security interest granted by the Company to the Purchasers to secure the Company's obligations under the Notes is subordinated to the security interest granted by the Company to GECC to secure the Company's obligations under the GECC Agreement. In connection with the entry into the Purchase Agreement, the Company and GECC amended the GECC Agreement, dated May 12, 2015, to, among other things, permit the Company to enter into the Purchase Agreement and related agreements. Series A Preferred Stock, Certificate of Designations and Investor Rights Agreement Under the terms of the Purchase Agreement, the Company agreed that the price per share at which the Series A Preferred Stock will be sold at the Second Closing will be the lesser of (a) 85% of the arithmetic average of the volume-weighted average price of the Company's Common Stock on each of the ten trading days immediately preceding the date of the Second Closing and (b) $0.67 per share (subject to appropriate adjustment for any stock split or similar adjustment affecting the Common Stock). The shares of Series A Preferred Stock will have the rights, preferences and privileges set forth in a certificate of designations to the Company's Certificate of Incorporation, as currently in effect, that will be filed by the Company prior to the issuance of the shares, which are summarized as follows: Ranking: the Series A Preferred Stock will rank senior in preference and priority to the Common Stock and each other class or series of capital stock of the Company, except for any class or series of capital stock issued in compliance with the terms of the Certificate of Designations. Dividends: the holders of Series A Preferred Stock will be entitled to receive, out of funds legally available for the payment of dividends under Delaware law, cumulative dividends that accrue daily at an annual rate of 8%, compounded and payable quarterly in cash or in additional shares of Series A Preferred Stock at the election of each holder. The holders of Series A Preferred Stock will also be entitled to participate in cash dividends and in-kind distributions made on shares of Common Stock. Liquidation Preference: Upon liquidation, including deemed liquidations pursuant to a merger, consolidation or a sale of all or substantially all of the Company's assets, the holders of Series A Preferred Stock will be entitled to be paid first out of any proceeds in an amount per share equal to the price at which shares of Series A Preferred Stock were sold in the Financing, plus all accrued but unpaid dividends on each share of Series A Preferred Stock, and prior to payment of any amounts on the Company's Common Stock. Thereafter, the holders of Series A Preferred Stock will also share pro rata on an as converted to Common Stock basis in payments made to the holders the Company's Common Stock. Accordingly, the holders of the Series A Preferred Stock will be entitled to receive the proceeds out of any sale or liquidation of the Company before any such proceeds are paid to holders of the Company's Common Stock and then share in any proceeds paid to holders of the Company's Common Stock. As a result, only the sale or liquidation proceeds in excess of the liquidation preference plus accrued but unpaid dividends would be available for distribution to holders of the Company's Common Stock. Conversion and Anti-Dilution Protection: each share of Series A Preferred Stock is initially convertible into one share of Common Stock at any time at the option of each holder and automatically upon the written consent of the holders of a majority of the outstanding shares of Series A Preferred Stock. The conversion price will be subject to adjustment as described below in the event that the Company issues other securities at a price per share less than the conversion price of the Series A Preferred Stock then in effect, subject to specified exceptions, and is also subject to adjustment in connection with stock splits, combinations, dividends and other corporate transactions affecting the Common Stock. The rights, preferences and privileges of the Series A Preferred Stock include full-ratchet anti-dilution protection until the first anniversary of the date that the Series A Preferred Stock is issued and weighted-average anti-dilution protection thereafter. Voting Rights: holders of Series A Preferred Stock will be entitled to vote with the holders of the Common Stock on an as-converted basis, except that no holder of Series A Preferred Stock will be entitled to cast votes for the number of shares of Common Stock issuable upon conversion of the Series A Preferred Stock held by such holder that exceeds (subject to a proportionate adjustment in the event of a stock split, stock dividend, combination or other proportionate recapitalization) the quotient of (A) the aggregate purchase price paid by such holder for its Series A Preferred Stock, divided by (B) the greater of (i) $0.80 and (ii) the closing price of the Common Stock on the trading day immediately prior to the date its Series A Preferred Stock is issued. In addition, prior to the conversion of the Series A Preferred Stock, the consent of the holders of at least a majority of the Series A Preferred Stock then outstanding, voting together as a single class, will be required for the Company to take certain actions, including, among other things: liquidating, dissolving or winding up the business and affairs of the Company or effecting any merger, consolidation or other liquidation event; amending, altering or repealing any provision of the Certificate of Incorporation, the Certificate of Designations or the Bylaws of the Company; creating or authorizing any class or series of capital stock ranking senior to or on parity with the Series A Preferred Stock or increasing the number of authorized shares of Series A Preferred Stock; purchasing, redeeming, paying or declaring dividends on any shares of capital stock of the Company, with certain exceptions; increasing or decreasing the size of the Board of Directors of the Company; and specified other matters. Redemption: unless prohibited by Delaware law, beginning on March 31, 2016, the holders of Series A Preferred Stock will have the right to require the Company to redeem the shares of Series A Preferred Stock, in whole or in part, in cash for a price per share equal to the greater of (i) the then current fair market value of the Series A Preferred Stock and (ii) the Accrued Value (as defined in the Certificate of Designations) plus the amount of any accrued and unpaid dividends thereon. The redemption right will expire if the Company closes a single or a series of related capital raising transactions in which the Company issues its capital stock to investors resulting in gross proceeds to the Company of at least $5.5 million in the aggregate, excluding the conversion of any indebtedness and inclusive of the Series A Preferred Stock issuable pursuant to the Purchase Agreement. In addition, holders of Series A Preferred Stock will have redemption rights in connection with specified change of control transactions of the Company. Board of Directors: the holders of Series A Preferred Stock will be entitled to nominate one director to the Board, who shall initially be elected promptly following the 2015 Annual Meeting. Subject to applicable law and stock exchange requirements, the Series A Director will be entitled to serve as a member of each committee of the Board. The rights to nominate a Series A Director will terminate if less than 20% of the shares of Series A Preferred Stock issued under the Purchase Agreement are no longer outstanding. The obligations of the Parties to complete the Second Closing are subject to the satisfaction or, to the extent legally permissible, waiver of certain conditions. These conditions include, among other things: (i) the approval by the Company's stockholders of the issuance of the shares of Series A Preferred Stock pursuant to the Purchase Agreement; (ii) the filing of the Certificate of Designations with the Secretary of State of the State of Delaware; and (iii) the execution and delivery of the Investor Rights Agreement. In connection with the Second Closing, the Company will also enter into a Fifth Amended and Restated Investor Rights Agreement with the Purchasers as well as the stockholders who hold shares of Common Stock that are registrable securities under the Company's existing Fourth Amended and Restated Investor Rights Agreement dated as of July 10, 2008. Under the terms of the Investor Rights Agreement, the Existing IRA will be amended and restated to grant certain demand and piggyback registration rights with respect to the shares of Common Stock issuable upon conversion of the Series A Preferred Stock. These registration rights are subject to certain conditions and limitations, including the right of the underwriters of an offering to limit the number of shares of the Company's Common Stock included in any such registration under certain circumstances. The Company is generally required to pay all expenses incurred in connection with registrations effected in connection with the registration rights, excluding underwriting discounts and commissions. Under the terms of the Purchase Agreement, the Company may terminate the agreement, if, at any time prior to the Company stockholders' approval of the issuance of the Series A Preferred Stock, the Board changes its recommendation to the stockholders of the Company and recommends that stockholders vote against the consummation of the Second Closing and the issuance of the shares of Series A Preferred Stock to the Purchasers at the Second Closing. In the event of such termination, the Company has agreed to pay the Purchasers a termination fee of $100,000 plus the Purchasers' reasonable, documented fees and expenses. The Purchase Agreement may also be terminated by written consent of the Company and (i) the holders of a majority of the outstanding principal amount of the Notes, if prior to the Second Closing, or (ii) the holders of a majority of the outstanding shares of Series A Preferred Stock (determined on an as-converted to Common Stock basis), if after the Second Closing. In addition, under the terms of the Purchase Agreement, subject to applicable securities laws, the Purchasers have the right to participate in any alternative financing in which the Company proposes to offer or sell its Common Stock or convertible securities to investors on or before the Second Closing, whether or not the Company has terminated the Purchase Agreement. Under this right, the Purchasers may participate in an aggregate amount up to $2.5 million on the same terms and conditions as the other investors participating in the alternative financing. In connection with the execution of the Purchase Agreement by the Company and the Purchasers, on May 12, 2015, Stephane Bancel, who is affiliated with Flagship Ventures, resigned from the Board, effective as of that time. Also, effective as of that time, the Board appointed Harry W. Wilcox, also an affiliate of Flagship Ventures, to fill the vacancy created by Mr. Bancel's resignation. Mr. Bancel did not communicate any disputes regarding the Company's operations, policies or practices to the Company in connection with this resignation, nor is the Company aware of any. Subject to SEC and NASDAQ corporate governance rules, Mr. Wilcox will serve on the Company's Nominating and Governance Committee and its Compensation Committee. It is anticipated that following the Second Closing of the Financing and the issuance of the Series A Preferred Stock, Mr. Wilcox will remain on the Board and his seat will transition into that of the Preferred Elected Director. Harry W. Wilcox, age 61, has served on the Board since May 2015. Mr. Wilcox has been chief operating officer and general partner of Flagship Ventures, a venture capital firm, since 2013. From 2006 to 2013, he was chief financial officer and Partner of Flagship Ventures. From 2004 to 2006, he was chief financial officer and senior vice president of corporate development of EXACT Sciences. Mr. Wilcox received his M.B.A. from Boston University and his B.S. in Finance from the University of Arizona. Mr. Wilcox currently serves as a director of T2 Biosystems, Inc., an in vitro diagnostics company. The Board concluded that Mr. Wilcox should serve as a director as of the date of this filing because of Mr. Wilcox's experience leading successful healthcare and technology companies, and his experience as a venture investor. In January 2013, the Company closed a follow-on underwritten public offering of 6,900,000 shares of Common Stock at a price to the public of $2.00 per share, including an aggregate of 2,000,000 shares purchased at the public offering price by entities affiliated with Flagship Ventures for an aggregate offering price of $4,000,000. Shares of Common Stock purchased in the offering by entities affiliated with Flagship Ventures included 75,000 shares purchased by AGTC Advisors Fund, L.P., 500,000 shares purchased by Applied Genomic Technology Fund, L.P., 1,050,000 shares purchased by Flagship Ventures Fund 2007, L.P., 125,000 shares purchased by NewcoGen Equity Investors LLC and 250,000 shares purchased by NewcoGen Group LLC. On Dec. 3, 2014, the Company issued 113,989 shares of Common Stock to entities affiliated with Flagship Ventures upon the net exercise of previously issued warrants to purchase shares of Common Stock, including 49,392 shares issued to NewcoGen Group LLC, 52,095 shares issued to NewcoGen Equity Investors LLC, 6,226 shares issued to ST NewcoGen LLC and 6,276 shares issued to NewcoGen -- Long Reign Holding LLC. 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. BIO-KEY INTERNATIONAL: Lacks Revenue to Support Operations ---------------------------------------------------------- BIO-key International, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $924,000 on $649,000 of revenue for the three months ended March 31, 2015, compared with a net loss of $299,000 on $1.37 million of revenue for the same period last year. The Company's balance sheet at March 31, 2015, showed $1.47 million in total assets, $1.49 million in total liabilities, and a stockholders' deficit of $23,700. The Company has incurred significant losses to date and at March 31, 2015, had an accumulated deficit of approximately $58 million. In addition, broad commercial acceptance of the Company's technology is critical to the success and ability to generate future revenues. At March 31, 2015, the Company's total cash and cash equivalents were approximately $303,000, as compared to approximately $844,000 at Dec. 31, 2014. The Company estimates that it currently requires approximately $460,000 per month to conduct operations, a monthly amount that it has been unable to achieve consistently through revenue generation. A copy of the Form 10-Q is available at: http://is.gd/yFd04P About BIO-Key Wall, N.J.-based BIO-key International, Inc., develops and markets advanced fingerprint biometric identification and identity verification technologies, cryptographic authentication- transaction security technologies, as well as related Identity Management and Credentialing software solutions. BLAKENEY COMPANY: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Blakeney Company, Inc. 3519 Greensboro Avenue Tuscaloosa, AL 35401 Case No.: 15-70869 Chapter 11 Petition Date: June 10, 2015 Court: United States Bankruptcy Court Northern District of Alabama (Tuscaloosa) Debtor's Counsel: Mary Lane L Falkner, Esq. LEWIS, SMYTH, WINTER & FORD, LLC 611 Helen Keller Blvd. Tuscaloosa, AL 35404 Tel: 205-553-5353 Fax: 205-553-5593 Email: marylane@lswattorneys.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by George Blakeney, director. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/alnb15-70869.pdf BRANCH CHRISTIAN: Closes Bookstore Due to Stiff Competition ----------------------------------------------------------- Margie Fishman, writing for Delawareonline.com, reports that The Branch Christian Bookstore is shutting down before the end of the summer, after 25 years. Citing store owner Nannette Jones, Delawareonline.com relates that the bookstore, which has faced stiff competition from free online downloads and waning demand for religious goods, couldn't compete with online retailers like Amazon. The Branch Christian Bookstore is a 2,500-square-foot store that sells music and Bibles at 128 Greentree Drive, Dover, Delaware. BRIAR'S CREEK: Duffy & Young Sells $56K Claim to ASM Capital ------------------------------------------------------------ In the Chapter 11 case of Briar's Creek Golf, LLC, one claim switched hands on May 26, 2015: Transferee Transferor Claim Amount ---------- ---------- ------------ ASM Capital V, L.P. Duffy & Young LLC $56,121.90 About Briar's Creek Briar's Creek Golf, LLC, sought Chapter 11 protection (Bankr. D. S.C. Case No. 15-00712) in Charleston, South Carolina, on Feb. 9, 2015. The Debtor owns The Golf Club at Briar's Creek, in Johns Island, South Carolina. The Debtor disclosed that the property's value is unknown and the property secures $6.74 million of debt. Secured creditors Edward L. Myrick Sr. and South Coast Community Bank are owed $3.89 million and $2.85 million. The Debtor is pursuing a sale of substantially all of its assets to Briar's Creek Holdings, LLC, for a purchase price of $11.3 million, which consists of $7.4 million in cash and assumption of the $3.9 million secured debt owed to Edward L. Myrick, Sr., plus assumption of the post-closing liabilities under the Debtor's executor contracts. The Hon. John E. Waites presides over the bankruptcy case. The Debtor is represented by G. William McCarthy, Jr., Esq., Daniel J. Reynolds, Jr., Esq., and W. Harrison Penn, Esq., at McCarthy Law Firm, LLC, in Columbia, South Carolina. The Debtor also filed an application to appoint Ouzts Ouzts & Company, as the Debtor's accountants, and accounting firm of Dixon Hughes to file tax returns and do other related accounting functions. The Debtor aso tapped Keen Summit as its business broker to assist in the marketing and sale of assets. BRIGHT MOUNTAIN: Posts $334K Net Loss in March 31 Quarter --------------------------------------------------------- Bright Mountain Acquisition Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $334,000 on $310,000 of total revenue for the three months ended March 31, 2015, compared with a net loss of $359,000 on $213,000 of total revenue for the same period in 2014. The Company's balance sheet at March 31, 2015, showed $2.23 million in total assets, $306,700 in total liabilities and stockholders' equity of $1.92 million. For the first quarter of 2015, the Company reported cash used in operating activities of $420,913 and had an accumulated deficit of $4.82 million at March 31, 2015. The report of its independent registered public accounting firm on the Company's audited consolidated financial statements at Dec. 31, 2014 and 2013 and for the years then ended contains an explanatory paragraph regarding substantial doubt of the Company's ability to continue as a going concern based upon the Company's net losses, cash used in operations and accumulated deficit. These factors, among others, raise substantial doubt about its ability to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/c8AmGB Bright Mountain Acquisition Corp. engages in the developing of a personal website portal. It owns and manages websites which are customized to provide its niche users, including military, law enforcement and first responders with information and news that is of interest to them. The company sells various products through its website and third party portals such as Amazon.com and Ebay.com. The company was founded on May 20, 2010 and is headquartered in Boca Raton, FL. The Company reported a net loss of $345,000 on $277,000 of total revenue for the three months ended Sept. 30, 2014, compared with a net loss of $259,000 on $152,000 of total revenue for the same period in 2013. The Company's balance sheet at Sept. 30, 2014, showed $1.65 million in total assets, $224,000 in total liabilities, and a stockholders' equity of $1.43 million. The Company sustained a net loss attributable to common shareholders of $1.12 million and used cash in operating activities of $1.26 million for the nine months ended Sept. 30, 2014. The Company had an accumulated deficit of $4.08 million at Sept. 30, 2014. C. WONDER: Deadline to Decide on HQ Lease Extended to Aug. 20 ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey granted C. Wonder LLC, et al., an extension until Aug. 20, 2015, of the time to assume or reject the corporate headquarters lease, without prejudice to the Debtors' rights to seek further extensions of the deadline in accordance with Section 365(d)(4) of the Bankruptcy Code. About C. Wonder Founded by J. Christopher Burch in 2010, C. Wonder is a specialty retailer with retail stores in the United States. With headquarters in New York, the company sells women's clothing, jewelry, shoes, handbags and other accessories as well as select home goods under the C. Wonder brand. The Company maintains two distribution centers in New Jersey. The Company opened its first retail store in New York in 2011. By 2014, the Company had expanded its operations to include 29 locations across 13 states including its flagship location in Soho, New York. Amid mounting losses, C. Wonder closed 16 of its retail stores by the end of 2014. C. Wonder closed 9 additional stores in January 2015. As of the bankruptcy filing, C. Wonder had four retail stores in the U.S. (Soho, Flat Iron, Time Warner Center and Manhasset). C. Wonder LLC and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No. 15-11127) in Trenton, New Jersey on Jan. 22, 2015. The cases are assigned to Judge Michael B. Kaplan. The Debtors tapped Cole, Schotz, Meisel, Forman & Leonard, P.A., as counsel, and Marotta, Gund, Budd & Dzera, LLC, as crisis management services provider. As of the Filing Date, the Debtors had assets with a book value of $43.7 million and liabilities of $61.0 million. The U.S. Trustee for Region 3 appointed three members to the Official Committee of Unsecured Creditors. The Creditors' Committee has tapped Porzio, Bromberg & Newman, P.C., as counsel, and CBIZ Accounting, Tax & Advisory of New York, LLC, as financial advisors. CAL DIVE: $13,000 in Claims Switched Hands in March 2015 -------------------------------------------------------- In the Chapter 11 cases of Cal Dive International Inc., et al., four claims switched hands in March 2015: Transferee Transferor Claim Amount ---------- ---------- ------------ Sierra Liquidity Fund, LLC H I S Fire & Safety $9,253.23 Sierra Liquidity Fund, LLC Hydro-Quip Mfg & Supply $2,204.33 Sierra Liquidity Fund, LLC Del Rio, Inc. $1,174.84 Sierra Liquidity Fund, LLC Pac Specialties $657.19 About Cal Dive International Houston, Texas-based marine contractor Cal Dive International, Inc., provides manned diving, pipelay and pipe burial, platform installation and salvage, and light well intervention services to the offshore oil and natural gas industry on the Gulf of Mexico OCS, Northeastern U.S., Latin America, Southeast Asia, China, Australia, West Africa, the Middle East, and Europe. Cal Dive and its U.S. subsidiaries filed simultaneous voluntary petitions (Bankr. D. Del. Lead Case No. 15-10458) on March 3, 2015. Through the Chapter 11 process, the Company intends to sell non-core assets and intends to reorganize or sell as a going concern its core subsea contracting business. Cal Dive disclosed total assets of $571 million and total debt of $411 million as of Sept. 30, 2015. The Debtors tapped Richards, Layton & Finger, P.A., as counsel, O'Melveny & Myers LLP, as co-counsel; Jones Walker Jones Walker LLP as corporate counsel; and Kurtzman Carson Consultants, LLC, as claims and noticing agent. The Debtors also tapped Carl Marks Advisory Group LLC as crisis managers and appoint F. Duffield Meyercord as chief restructuring officer. The U.S. Trustee for Region 3 formed a five-member committee of unsecured creditors in the case. The Committee retained Akin Gump Strauss Hauer & Feld LLP and Pepper Hamilton LLP as co-counsel; and Guggenheim Securities, LLC as exclusive investment banker. Cal Dive Offshore Contractors, Inc., disclosed total assets of $233,273,806 and $311,339,932 in liabilities as of the Chapter 11 filing. CAL DIVE: Huber Capital Reports 4.9% Stake as of May 31 ------------------------------------------------------- Huber Capital Management, LLC, disclosed in an amended Schedule 13G filed with the Securities and Exchange Commission that as of May 31, 2015, it beneficially owns 4,836,131 shares of common stock of Cal Dive International Inc., which represents 4.91 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/crxdg4 About Cal Dive International Houston, Texas-based marine contractor Cal Dive International, Inc., provides manned diving, pipelay and pipe burial, platform installation and salvage, and light well intervention services to the offshore oil and natural gas industry on the Gulf of Mexico OCS, Northeastern U.S., Latin America, Southeast Asia, China, Australia, West Africa, the Middle East, and Europe. Cal Dive and its U.S. subsidiaries filed simultaneous voluntary petitions (Bankr. D. Del. Lead Case No. 15-10458) on March 3, 2015. Through the Chapter 11 process, the Company intends to sell non-core assets and intends to reorganize or sell as a going concern its core subsea contracting business. Cal Dive disclosed total assets of $571 million and total debt of $411 million as of Sept. 30, 2015. The Debtors tapped Richards, Layton & Finger, P.A., as counsel, O'Melveny & Myers LLP, as co-counsel; Jones Walker Jones Walker LLP as corporate counsel; and Kurtzman Carson Consultants, LLC, as claims and noticing agent. The Debtors also tapped Carl Marks Advisory Group LLC as crisis managers and appoint F. Duffield Meyercord as chief restructuring officer. The U.S. Trustee for Region 3 formed a five-member committee of unsecured creditors in the case. The Committee retained Akin Gump Strauss Hauer & Feld LLP and Pepper Hamilton LLP as co-counsel; and Guggenheim Securities, LLC as exclusive investment banker. Cal Dive Offshore Contractors, Inc., disclosed total assets of $233,273,806 and $311,339,932 in liabilities as of the Chapter 11 filing. CALMENA ENERGY: Creditors Proofs of Claim Due July 31 ----------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas established July 31, 2015, as the deadline for any individual or entity to file proofs of claim against Calmena Energy Services Inc., et al. Government units may also file their proof of claim by July 31 deadline. About Calmena Energy Ernst & Young Inc., as foreign representative, filed petitions under Chapter 15 of the U.S. Bankruptcy Code on behalf of Calgary, Canada-based Calmena Energy Services Inc. and its three affiliates. The lead Chapter 15 case is Case No. 15-30786. The case is assigned to Judge Karen K. Brown of the U.S. Bankruptcy Court for the Southern District of Texas (Houston). The Chapter 15 petitioner is represented by Robert Andrew Black, Esq., at Norton Rose Fulbright LLP, in Houston, Texas. CAPSTONE THERAPEUTIC: Reports $716K Net Loss in First Quarter ------------------------------------------------------------- Capstone Therapeutics Corp. filed its quarterly report on Form 10-Q, disclosing a net loss of $716,000 on $nil of revenues for the three months ended March 31, 2015, compared with a net loss of $1.02 million on $nil of revenues for the same period last year. The Company's balance sheet at March 31, 2015, showed $2.8 million in total assets, $365,000 in total liabilities, and stockholders' equity of $2.43 million. A copy of the Form 10-Q is available at: http://is.gd/WIf8pI Tempe, Ariz.-based Capstone Therapeutics Corp. is a biotechnology company for developing a pipeline of peptides and other molecules. The Company’s products are aimed at patients with under-served medical conditions. The Company reported a net loss of $4.17 million on $nil in revenue for the year ended Dec. 31, 2014, compared to a net loss of $3.92 million on $nil of revenues in the same period last year. Moss Adams LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing the uncertainty with regards to the Companyâ€™s ability to raise funding to implement its future business strategy. CEL-SCI CORP: Incurs $12.6-Mil. Net Loss for First Quarter ---------------------------------------------------------- CEL-SCI Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $12.6 million on $198,000 of grant and other income for the three months ended March 31, 2015, compared with a net loss of $13.4 million on $67,200 of grant and other income for the same period last year. The Company's balance sheet at March 31, 2015, showed $12.7 million in total assets, $12.4 million in total liabilities, and stockholders' equity of $343,000. Due to recurring losses from operations and future liquidity needs, there is substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/7GBH3R CEL-SCI Corporation is engaged in the development and manufacturing of products for cancer and infectious diseases. The Vienna, Virginia-based Company aims to produce therapies that utilize the body's natural defense system to cure cancer, malaria, and more. CHASSIX HOLDINGS: $5,000 in Claims Sold Between March & April ------------------------------------------------------------- In the Chapter 11 cases of Chassix Holdings, Inc., et al., three claims switched hands between March 31, 2015, and April 6, 2015: Transferee Transferor Claim Amount ---------- ---------- ------------ Sierra Liquidity Fund, LLC Watcon, Inc. $3,093.50 Sierra Liquidity Fund, LLC Flex Cable - Northern $1,135.00 Cable & Automation, LLC Sierra Liquidity Fund, LLC Modern Automation $783.70 About Chassix Holdings Chassix is a global manufacturer and supplier of aluminum and iron chassis sub-frame components and powertrain products with both casting and machining capabilities. Based in Southfield, Michigan, Chassix and its subsidiaries operate 23 manufacturing facilities across six countries, providing safety critical automotive components, having content on approximately 64% of the largest platforms in North America. Their product mix maintains an even balance among trucks, minivans and SUVs, as well as small and medium size cars and cross-over vehicles. For the twelve months ended Dec. 31, 2014, the Debtors generated $1.37 billion in revenue on a consolidated basis. As of Dec. 31, 2014, the Debtors had $833 million in assets and $784 million in liabilities on a consolidated basis. Chassix Holdings, Inc., et al., sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 15-10578) in Manhattan on March 12, 2015, with a Chapter 11 plan that was negotiated with lenders and customers. Chassix Holdings estimated $500 million to $1 billion in assets and debt. The Debtors have tapped Weil, Gotshal & Manges LLP, as attorneys; Lazard Freres & Co, LLC, as investment banker; FTI Consulting, Inc. to provide an interim CFO and additional restructuring services; and Prime Clerk LLC, as claims and noticing agent. CIRQUE DU SOLEIL: S&P Assigns 'B' CCR & Rates 1st Lien Loans 'B+' ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Montreal, Quebec-based Cirque Du Soleil Group. The outlook is stable. S&P also assigned its 'B+' issue-level rating and '2' recovery rating to the company's proposed senior secured first-lien revolving credit facility, which will consist of a $100 million revolver due 2020 and $615 million term loan due 2022. The '2' recovery rating indicates S&P's expectation for substantial (70%-90%; upper end of the range) recovery in the event of a payment default. At the same time, S&P assigned its 'CCC+' issue-level rating and '6' recovery rating to the company's proposed $170 million second-lien term loan due 2023. The '6' recovery rating indicates S&P's expectation for negligible (0%-10%) recovery in the event of a payment default. Proceeds will be used to fund the purchase consideration of $1.412 billion (of which $707 million will be contributed shareholder equity), $30 million of cash to the balance sheet, and $50 million of fees and expenses related to the transaction. "The ratings on Cirque reflect the company's solid brand recognition, which enables it to form strategic partnerships with venue providers that help cover the costs of developing new shows," said Standard & Poor's credit analyst Eric Nietsch. The contracts for these residential shows are long term, typically with terms of five to 10 years. Its primary partnership is with MGM in the Las Vegas market, which accounts for a large portion of revenue and some predictability of cash flows since it guarantees Cirque's operating costs plus an additional premium as well as royalty of box office sales. "Partially offsetting these positive factors are competitive pressures from other providers of entertainment and leisure activities," added Mr. Nietsch. "Additionally, we believe there is moderate counterparty risk with MGM, which owns the venues for seven of Cirque's resident shows. Cirque's strategy is to expand into new markets to increase revenue although growth prospects from these new ventures are largely uncertain. Moreover, we believe expansion into new markets could result in higher expenses and capital expenditure requirements, especially if the company takes on full ownership of these productions." Cirque Du Soleil was founded in 1984 in Quebec and entered Las Vegas in 1992. It is the largest theatrical producer in the world, and has performed in 330 cities and 48 countries. Cirque Du Soleil competes most directly with other live entertainment companies, including other theatrical shows such as the Blue Man Group, as well as plays, musicals, and concerts in the Las Vegas market. Around 40% of its sales come from Las Vegas, which is sensitive to deterioration in macroeconomic conditions. Still, Cirque's partner in Las Vegas has some of the largest venues, which provides it with some barriers to entry. Cirque competes more broadly with other providers of leisure activities and entertainment, such as live sporting events, television, movies, nightlife, theme parks, and recreational activities. CLOUDEEVA INC: Sapphire Sells $20,000 Claim to Liquidity Solutions ------------------------------------------------------------------ In the Chapter 11 cases of Cloudeeva, Inc., et al., one claim switched hands on April 20, 2015: Transferee Transferor Claim Amount ---------- ---------- ------------ Liquidity Solutions, Inc. Sapphire Software $20,520.00 Solutions Inc. About Cloudeeva, Inc. Cloudeeva, Inc., a public company previously known as Systems America, Inc., is a global cloud services and technology solutions company specializing in cloud, big data and mobility solutions and services. The company provides information technology staffing services to major clients and third party vendors in the United States and India. The company headquarters are in East Windsor, New Jersey, with regional offices in California, Illinois and international offices in India. Cloudeeva, Inc., and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-24874) in Trenton, New Jersey, on July 21, 2014. The cases are assigned to Judge Kathryn C. Ferguson. Cloudeeva disclosed $4,989,375 in assets and $6,528,910 in liabilities as of the Chapter 11 filing. The company said only $209,000 is owing to its lender Prestige Capital Corp. and more than $5.2 million is owed for trade vendor payables. The Debtors originally tapped Lowenstein Sandler LLP as counsel. However, they later sought approval of Trenk, DiPasquale, Della Fera & Sodono, P.C., to replace Lowenstein Sandler, who retention was not formally approved by order of the Court. The Debtors also tapped Cole, Schotz, Meisel, Forman & Leonard, P.A. as appellate counsel. Kurtzman Carson Consultants LLC serves as claims and noticing agent. * * * On Aug. 22, 2014, Judge Ferguson entered an order dismissing the Debtors' Chapter 11 cases at the behest of Bartronics Asia PTE Ltd. BAPL asserted that the cases were not filed in good faith. The Debtors subsequently filed an appeal challenging the dismissal of their cases. Since then, District Judge Joel A. Pisano for the District of New Jersey entered an order staying the Case Dismissal Order pending further proceedings. Simultaneously, Judge Pisano reinstated the Debtors' bankruptcy cases and authorized the Debtors to be in possession of their assets and the management of their business as debtors-in-possession, subject to the continuing jurisdiction of the Bankruptcy Court and any further orders of the Bankruptcy Court or the District Court. The Debtor filed a Plan of Reorganization and Disclosure Statement on Oct. 7, 2014. The Plan will be funded by cash on-hand on the Effective Date, cash revenues derived from the Debtors' continued operations, and investment of $1.15 million from Cloudeeva India Private Limited or their designee, along with their guarantee of all payments to be made under Plan, in exchange for the equity of the Reorganized Debtors, as agreed in the parties' Plan Support Agreement. That Plan was withdrawn in February 2015. The Court approved the appointment of Stephen Gray as Chapter 11 trustee for the Debtors' estate. The trustee was represented by Saul Ewing LLP. Richard B. Honig was later appointed as the Chapter 11 successor trustee for Cloudeeva Inc. CORINTHAN COLLEGES: Richards Layton Approved as Bankruptcy Counsel ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware authorized Corinthian Colleges, Inc., et al., to employ Richards, Layton & Finger, P.A., as bankruptcy counsel, nunc pro tunc to the Petition Date. RL&F will render the following professional services: (a) advise the Debtors of their rights, powers and duties as debtors and debtors-in-possession under Chapter 11 of the Bankruptcy Code; (b) take action to protect and preserve the Debtors' estates, including the prosecution of actions on the Debtors' behalf, the defense of actions commenced against the Debtors in the Chapter 11 cases, the negotiation of disputes in which the Debtors are involved and the preparation of objections to claims filed against the Debtors; (c) assist in preparing on behalf of the Debtors all motions, applications, answers, orders, reports and papers in connection with the administration of the Debtors' estates; (d) assist the Debtors with the sale of any of their assets pursuant to Section 363 of the Bankruptcy Code; (e) assist in preparing the Debtors' plan of liquidation; (f) assist in preparing the Debtors' disclosure statement and any related documents and pleadings necessary to solicit votes on the Debtors' plan of liquidation; (g) prosecute on behalf of the Debtors the proposed plan and seeking approval of all transactions contemplated therein and in any amendments thereto; and (h) perform other necessary or desirable legal services in connection with the Chapter 11 cases. RL&F's current hourly rates for matters related to the Chapter 11 cases are expected to be within the following ranges: Directors $585 to $825 an hour Counsel $525 an hour Associates $260 to $490 an hour Paraprofessionals $235 an hour The principal professionals and paraprofessionals designated to represent the Debtors and their current standard hourly rates are as follows: Mark D. Collins $825 per hour Michael J. Merchant $650 per hour Marisa A. Terranova $450 per hour Amanda R. Steele $425 per hour Rachel L. Biblo $260 per hour Alexander G. Najemy $260 per hour Rebecca V. Speaker $235 per hour RL&F will charge the Debtors for necessary out-of-pocket expenses. Prior to the Petition Date, the Debtors paid RL&F a total retainer of $405,000 in connection with and in contemplation of the Chapter 11 cases. Mark D. Collins, Esq., a director of the firm of Richards, Layton & Finger, P.A., in Wilmington, Delaware, assures the Court that (a) RL&F is a "disinterested person" under Section 101(14) of the Bankruptcy Code; (b) RL&F does not hold or represent an interest adverse to the Debtors' estates; and (c) RL&F's directors and associates have no connection to the Debtors, their creditors or their related parties. About Corinthian Colleges 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 Chapter 11 petitions are being jointly administered under the caption In re: Corinthian Colleges, Inc. et al., Case No. 15-10952 (KJC). The cases are assigned to Judge Kevin J. Carey. Corinthian Colleges, Inc., was founded in February 1995, and through acquisitions became one of the largest for-profit post-secondary education companies in the United States and Canada. 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. 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 disclosed total assets of $19.2 million and total liabilities of $143.1 million in its petition. The U.S. Trustee for Region 3 appointed five creditors to serve on an official committee of unsecured creditors. CORINTHIAN COLLEGES: Rust/Omni Approved as Administrative Agent --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Corinthian Colleges, Inc., et al., to employ Rust Consulting/OMNI Bankruptcy as administrative agent. Rust/Omni has agreed to perform, among other services, the following: (a) assisting with the preparation and filing of the Debtors' schedules of assets and liabilities and statements of financial affairs; (b) recording all transfers of claims and provide any notices of such transfers as required by Bankruptcy Rule 3001(e); provided, however, that if any evidence of transfer of claim(s) is filed with the Court pursuant to Bankruptcy Rule 3001(e), and if the evidence of transfer or notice thereof executed by the parties purports to waive the 21 day notice and objection period required under Bankruptcy Rule 3001(e), then the Administrative Agent may process the transfer of claim(s) to change the name and address of the claimant of such claim to reflect the transfer, and the effective date of such transfer will be the date the evidence of such transfer was docketed in the case; (c) generating and providing claim reports and claim objection exhibits; (d) managing the preparation, compilation and mailing of documents to creditors and other parties in interest in connection with the solicitation of a Chapter 11 plan; (e) managing any rights offering pursuant to a Plan; (f) managing the publication of legal notices; (g) collecting and tabulating votes in connection with any Plan filed by the Debtors and providing ballot reports to the Debtors and their professionals; (h) generating an official ballot certification and testifying, if necessary, in support of the ballot tabulation results; (i) managing any distributions made pursuant to a Plan; and (j) providing any and all necessary administrative tasks as the Debtors or its professionals may require in connection with these chapter 11 cases. Prior to the Petition Date, the Debtors provided Rust/Omni a retainer in the amount of $40,000. Paul H. Deutch, the executive managing director of Rust/Omni, assures the Court that Rust/Omni: (i) is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code; (ii) does not hold or represent an interest adverse to the Debtors' estates in connection with any matter on which Rust/Omni will be employed; and (iii) neither Rust/Omni nor any of its employees has any connection with the Debtors, their creditors, the United States Trustee or any other party in interest in these chapter 11 cases. About Corinthian Colleges 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 Chapter 11 petitions are being jointly administered under the caption In re: Corinthian Colleges, Inc. et al., Case No. 15-10952 (KJC). The cases are assigned to Judge Kevin J. Carey. Corinthian Colleges, Inc., was founded in February 1995, and through acquisitions became one of the largest for-profit post-secondary education companies in the United States and Canada. 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. 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 disclosed total assets of $19.2 million and total liabilities of $143.1 million in its petition. The U.S. Trustee for Region 3 appointed five creditors to serve on an official committee of unsecured creditors. CREATIVE CIRCLE: S&P Removes 'B' CCR From CreditWatch Positive -------------------------------------------------------------- Standard & Poor's Ratings Services said that it removed its ratings on Los Angeles-based Creative Circle LLC, including the 'B' corporate credit rating, from CreditWatch, where S&P had placed them with positive implications on May 13, 2015. At the same time, S&P withdrew the ratings at the company's request. The company repaid its outstanding debt when it was acquired by On Assignment Inc. on June 5, 2015. CTI BIOPHARMA: Amends License Agreement with Baxter --------------------------------------------------- CTI BioPharma Corp. entered into a first amendment to the Development, Commercialization and License Agreement, dated as of Nov. 14, 2013, by and among CTI, Baxter International Inc., Baxter Healthcare Corporation and Baxter Healthcare SA, according to a document filed with the Securities and Exchange Commission. Pursuant to the License Agreement, among other things, CTI granted to Baxter a license with respect to pacritinib, Baxter and CTI agreed to collaborate as to the development and commercialization of pacritinib, and the Corporation obtained the contingent right to receive certain milestone and royalty payments. Baxalta Incorporated, a wholly-owned subsidiary of Baxter International Inc., and certain of its affiliates have been assigned Baxter's rights and obligations under the License Agreement. Pursuant to the Amendment, two milestone payments from Baxalta to CTI were accelerated from the schedule contemplated by the License Agreement. CTI will, within three days of the Effective Date, receive a total advance of $32 million from Baxalta relating to the following two milestone payments under the License Agreement: (i) the $12 million development milestone payment payable in connection with the regulatory submission to the European Medicines Agency with respect to pacritinib and (ii) a $20 million development milestone payment payable for the first treatment dosing of the last patient enrolled in PERSIST-2, the ongoing randomized Phase 3 trial evaluating pacritinib for patients with myelofibrosis whose platelet counts are less than or equal to 100,000 per microliter. Under the Amendment, each of the two milestone advances will bear interest at an annual rate of 9% percent until the earlier of (i) the date of first occurrence of the respective milestone and (ii) the date that the respective advance plus accrued interest is repaid in full. In the event that pacritinib development is terminated either because of a regulatory determination that the benefit/risk profile of the drug candidate is unacceptable or due to safety concerns or certain other reasons, including the failure of pacritinib to meet certain criteria or certain endpoints, the Corporation would be required to repay the respective advance to Baxalta in eight quarterly installments beginning thirty days after the end of the calendar quarter of the first occurrence of a Milestone Failure and a final payment equal to the remainder of the unpaid balance. Further, if (i) the EMA Milestone is not achieved prior to March 31, 2017 or (ii) the PERSIST-2 Milestone is not achieved prior to Dec. 31, 2016, then the Corporation would also be required to repay the respective advance pursuant to the Repayment Terms. Repayment of the advances will be accelerated in the event of the commencement of insolvency proceedings, and certain other events of default. If a milestone is achieved, however, then CTI would remain entitled to the respective advance. In the event that the Corporation does not spend a specified amount on the development of pacritinib from the Effective Date through Feb. 29, 2016, payments to Baxalta in an amount equal to such deficiency may be required or credited against amounts owed to the Corporation in certain circumstances. In the Amendment, in lieu of entering into a manufacturing and supply agreement as contemplated by the License Agreement, the Parties have also agreed to changes in the provisions of the License Agreement regarding manufacturing and supply, including that the Parties will each be allocated up to 50% of the manufacturing (subject to certain conditions), with certain pricing adjustments based on comparative costs of supply. Baxalta beneficially owns approximately 8.7% of CTI's common stock as of April 30, 2015, and Baxalta Incorporated or its affiliates are parties to a registration rights agreement and other agreements with CTI. About CTI BioPharma CTI BioPharma Corp. (NASDAQ and MTA: CTIC) -- http://www.ctibiopharma.com/-- formerly known as Cell Therapeutics, Inc., is a biopharmaceutical company focused on the acquisition, development and commercialization of novel targeted therapies covering a spectrum of blood-related cancers that offer a unique benefit to patients and healthcare providers. The Company has a commercial presence in Europe and a late-stage development pipeline, including pacritinib, CTI's lead product candidate that is currently being studied in a Phase 3 program for the treatment of patients with myelofibrosis. CTI BioPharma is headquartered in Seattle, Washington, with offices in London and Milan under the name CTI Life Sciences Limited. CTI Biopharma reported a net loss attributable to common shareholders of $96 million in 2014, compared with a net loss attributable to common shareholders of $49.6 million in 2013. As of March 31, 2015, the Company had $63.1 million in total assets, $48.7 million in total liabilities, $240,000 in common stock purchase warrants, $14.1 million in total shareholders' equity. DAMES POINT: July 2 Hearing on UST Bid for Dismissal/Conversion --------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida will convene a preliminary hearing on July 2, 2015, at 3:00 p.m., to consider U.S. Trustee's motion to dismiss or convert the Chapter 11 case of Dames Point Holdings, LLC, formerly known as B & B Properties to one under Chapter 7 of the Bankruptcy Code. About Dames Point P&B Marina Development, LLC filed an involuntary Chapter 11 case against Jacksonville, Florida-based Dames Point Holdings, LLC (Bankr. M.D. Fla. Case No. 13-00501) on Jan. 29, 2013. Scott A. Underwood, Esq., at Fowler White Boggs, P.A. represented the petitioners. On March 12, 2013, the Court entered an order vacating the Feb. 28, 2013 order for relief in involuntary Chapter 11 case. The Court has consolidated the involuntary Chapter 11 case for all purposes with the voluntary case of William F. Shafnacker. Gust G. Sarris, Esq., represents the Debtor in its restructuring effort. The U.S. Trustee for Region 21 has informed the Bankruptcy Court that until further notice, it will not appoint a committee of creditors in the Chapter 11 case of Dames Point Holdings because of an insufficient number of unsecured creditors willing or able to serve on an unsecured creditors committee. DEJOUR ENERGY: Reports C$1.17-Mil. Net Loss in Q1 ------------------------------------------------- Dejour Energy Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of C$1.17 million on C$1.28 million of total revenues for the three months ended March 31, 2015, compared to a net loss of C$2.98 million on C$2.27 million of total revenues for the same period in 2014. The Company's balance sheet at March 31, 2015, showed C$24.3 million in total assets, C$13.7 million in total liabilities and total stockholders' equity of C$10.6 million. The Company has a working capital deficiency of $5.5 million, which includes a Credit Facility in DEAL of $1.9 million and a loan from a related party of $2.0 million with repayment due in September 2015, and accumulated deficit of $99.2 million. Excluding the non-cash warrant liability of $0.3 million, the adjusted working capital deficiency was $5.2 million. On Nov. 24, 2014 and amended on March 16, 2015, the Company renewed the Credit Facility with its Bank for a maximum of $2.2 million. Monthly principal payments of $100,000 are due and payable on March 16, 2015 and commencing on the 28th of each month thereafter. As at March 31, 2015, DEAL was in default of its working capital ratio covenant with a 0.53 to 1 ratio. The Bank is currently conducting its annual review of the Company's Canadian oil and gas reserves for loan purposes. The Company's ability to continue as a going concern is dependent upon attaining profitable operations and obtaining sufficient financing to meet obligations and continue exploration and development activities. There is no assurance that these activities will be successful. These material uncertainties cast substantial doubt upon the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/wo0VtT About Dejour Dejour Energy Inc. is an independent oil and natural gas exploration and production company operating projects in North America's Piceance Basin (approximately 80,000 net acres) and Peace River Arch regions (approximately 7,500 net acres). Dejour's seasoned management team has consistently been among early identifiers of premium energy assets, repeatedly timing investments and transactions to realize their value to shareholders' best advantage. Dejour maintains offices in Denver, USA, Calgary and Vancouver, Canada. The company is publicly traded on the New York Stock Exchange MKT (nyse mkt:DEJ) and Toronto Stock Exchange CA:DEJ 0. DELTEK INC: S&P Affirms 'B' Corp. Credit Rating, Outlook Stable --------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'B' corporate credit rating on Herndon, Va.-based Deltek Inc. The outlook is stable. At the same time, S&P assigned its 'B' issue-level rating and '3' recovery rating to the company's proposed $840 million senior secured notes due 2022, and S&P's 'CCC+' issue-level rating and '6' recovery rating to the company's $350 million second-lien debt. The '3' recovery rating indicates S&P's expectation for meaningful (50%-70%; in the lower half of the range) recovery in the event of payment default, and the '6' recovery rating indicates S&P's expectation for negligible (0%-10%) recovery in the event of payment default. S&P expects that Deltek will use the proceeds from the transaction to refinance its current senior notes due 2018 and 2019, and to pay a dividend to current shareholders, and pay related transaction fees. S&P will withdraw its ratings on the refinanced notes after the transaction closes. "Our rating affirmation is based on Deltek's solid position in niche markets and a meaningful recurring revenue base," said Standard & Poor's credit analyst Sylvester Malapas. The stable outlook reflects S&P's expectation that the company's solid recurring revenue base and disciplined cost management will support consistent profitability and free operating cash flow. DENDREON CORP: $98,000 in Claims Switched Hands Feb. to April ------------------------------------------------------------- In the Chapter 11 cases of Dendreon Corp., et al., eight claims switched hands between Feb. 20, 2015, and April 21, 2015: Transferee Transferor Claim Amount ---------- ---------- ------------ Bowery Opportunity Fund, L.P. Labware Inc $24,966.42 Fair Harbor Capital, LLC Health Policy $2,428.20 Strategies Inc. Claims Recovery Group LLC Aragen Bioscience, $4,650.00 Inc Claims Recovery Group LLC Energy Systems $9,233.00 Southeast, Llc Claims Recovery Group LLC Flw Of Pa, Inc. $5,181.95 DACA VI, LLC Doogan Inc $1,344.00 Liquidity Solutions, Inc. Indiana University $28,585.00 Sierra Liquidity Fund, LLC Georgia Natural Gas $21,518.14 About Dendreon Corp With corporate headquarters in Seattle, Washington, Dendreon Corporation, a biotechnology company focused on the development of novel cellular immunotherapies to significantly improve treatment options for cancer patients. Dendreon's first product, PROVENGE (sipuleucel-T), was approved by the U.S. Food and Drug Administration (FDA) and became commercially available for the treatment of men with asymptomatic or minimally symptomatic castrate-resistant (hormone-refractory) prostate cancer in April 2010. Dendreon is traded on the NASDAQ Global Market under the symbol DNDN. Dendreon and its U.S. subsidiaries filed for Chapter 11 bankruptcy protection (Bankr. D. Del.) on Nov. 10, 2014. The Debtors requested that their cases be jointly administered under Case No. 14-12515. The petitions were signed by Gregory R. Cox, interim chief financial officer and treasurer. Dendreon sought bankruptcy protection after it reached agreements on the terms of a financial restructuring with certain holders of the Company's 2.875% Convertible Senior Notes due 2016 representing 84% of the $620 million aggregate principal amount of the 2016 Notes. The financial restructuring may take the form of a stand-alone recapitalization or a sale of the Company or its assets. The Debtors have engaged Skadden, Arps, Slate, Meagher & Flom LLP, as counsel; Lazard Freres & Co. LLC, as investment banker; AlixPartners, as restructuring advisors; and Prime Clerk LLC as claims and noticing agent. The Debtors disclosed $365 million in total assets and $664 million in total liabilities as of June 30, 2014. The U.S. Trustee for Region 3 appointed three members to the Official Committee of Unsecured Creditors. * * * Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for the District of Delaware on April 14, 2015, approved the disclosure statement explaining Dendreon Corp., et al.'s Chapter 11 plan of liquidation. The Debtors filed a plan of liquidation and accompanying Disclosure statement following approval of the sale of substantially all of their assets to Valeant Pharmaceuticals International. A second amended acquisition agreement provides for a higher purchase price, consisting of common shares of Valeant, having an aggregate value of $49.5 million as of the close of the market on the Trading Day immediately prior to the Effective Date, paid to the Debtors as partial consideration for the assets acquired by the purchaser pursuant to the Sale Order, plus $445.5 million in cash to be delivered at closing of the sale transaction. Pursuant to the Second Amended Acquisition Agreement, if the amount of the allowed prepetition general unsecured claims did not exceed $200 million in the aggregate, then the Valeant Shares could be distributed proportionately in respect of the 2016 Noteholder Claims. The consideration under the Second Amended Acquisition Agreement provided an additional $15 million in incremental value to the Debtors' Estates over that provided for under the Amended Acquisition Agreement, and $140 million more than the minimum Qualified Bid. The Acquired Assets under the Second Amended Acquisition Agreement included all of the assets contemplated under the Amended Acquisition Agreement, plus the D-3263 Assets and $80 million of cash and cash equivalents of the Debtors. In their First Amended Plan, the Debtors said they anticipate that the liquidation process would take six to twelve months. Wind-down operating costs would include compensation expenses, insurance, taxes, and the costs of orderly winding down healthcare and other employee-related plans. Under a Chapter 7 liquidation, a change in professionals would result in lost efficiencies, which is reflected in a 25% increase in the wind-down budget. The Wind-Down Reserve is calculated based on estimates and is being provided for illustrative purposes only. DOMINION PAVING: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Dominion Paving & Sealing, Inc. 10900 Paulbrook Boulevard Midlothian, VA 23112-3374 Case No.: 15-32966 Chapter 11 Petition Date: June 10, 2015 Court: United States Bankruptcy Court Eastern District of Virginia (Richmond) Judge: Hon. Keith L. Phillips Debtor's Counsel: Christian K. Vogel, Esq. LECLAIRRYAN, A PROFESSIONAL CORPORATION 951 East Byrd Street, 8th Floor Richmond, VA 23219 Tel: 804-916-7198 Fax: 804-916-7298 Email: Christian.Vogel@leclairryan.com Estimated Assets: $1 million to $10 million Estimated Liabilities: unknown The petition was signed by Stephen H. Parham, president. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. EL PASO CHILDREN'S HOSPITAL: Texas Attorney Gen. Supports Mediation ------------------------------------------------------------------- The Office of the Texas Attorney General supports debtor El Paso Children's Hospital Corporation's motion to compel nonbinding mediation with the University Medical Center of El Paso. The Office of the Texas Attorney General requests that a representative of the Texas Attorney General, or its client agencies, be allowed to attend any mediation as an observer; and suggests that retired U.S. Bankruptcy Judge Leif M. Clark continue to serve as mediator in the case given his intimate familiarity with the facts of the case from presiding over a previous full-day mediation in the matter and his extensive experience in handling complex bankruptcy issues. As reported in the Troubled Company Reporter on May 26, 2015, the Debtor operates its 122-bed children's hospital at the campus of UMC pursuant to various agreements. The Debtor claims that the agreements are lopsided. UMC sought to terminate the agreements amid mounting payables by the Debtor. As of Sept. 30, 2014, UMC asserted that it was owed in excess of $81 million from the Debtor. The Debtor, which is in financial distress, claims it only owes a fraction of the amount claimed by UMC. Taking into consideration the prior two mediations in which the parties have previously participated, as well as their informal negotiations prior to the Petition Date, the Debtor believes that the mediation requested herein is more likely to be successful and efficient under certain parameters: * First, the Debtor believes that the issues between UMC and the Debtor implicate bankruptcy law in such a crucial way that a sitting (or former) Bankruptcy Judge is the most appropriate and qualified person to serve as the Mediator. The Debtor believes that the ability of a neutral to evaluate the issues between UMC and the Debtor could be a powerful catalyst for resolution, particularly if the mediator is a bankruptcy judge. Accordingly, the Debtor requests that the Court appoint a sitting (or former) bankruptcy judge to serve as the mediator. * In this vein, the Debtor also proposes that for this mediation that only one representative (with authority to resolve the dispute) from each of the Debtor and UMC, along with their counsel, attend the mediation. * The Debtor also proposes that the parties be required to mediate by a date certain in the immediate future. * Further, if an agreement is reached that is subject to approval by the El Paso Commissioner's Court, the Debtor requests that the agreement be binding upon the Debtor and UMC, and the parties then submit the agreement to the Commissioner's Court, with the parties then having no ability, right, or opportunity to revise or terminate the agreement reached at the mediation. The Debtor believes such parameters are necessary given that it must administer its bankruptcy case as efficiently as possible, and given the history of the parties' mediations, are most likely to result in a final agreement. About El Paso Children's Hospital El Paso Children's Hospital Corporation operates the El Paso Children's Hospital, the only not-for-profit children's hospital in the El Paso region and the only dedicated pediatric hospital within a 200-mile radius of El Paso, Texas. The hospital opened its doors in February 2012, features 122 private pediatric rooms, and is located at the campus of El Paso County Hospital District dba University Medical Center of El Paso ("UMC"). The Company sought Chapter 11 protection (Bankr. W.D. Tex. Case No. 15-30784) in El Paso, Texas on May 19, 2015, following disputes with UMC. The case is assigned to Judge H. Christopher Mott. The Debtor tapped Jackson Walker LLP as counsel. The Debtor estimated $50 million to $100 million in assets and liabilities. ELBIT IMAGING: Shareholders Exercise Right to Withdraw From BUTU ---------------------------------------------------------------- Elbit Imaging Ltd. announced that, shareholders holding 21.48% of Bucuresti Turism S.A., exercised their right to withdraw from BUTU. The total amount payable by BUTU for those withdrawal requests is approximately Euro 13.9 million (approximately USD 15.5 million). An amount of Euro 2 million was financed by BUTU from its own resources and the remainder in the amount of approximately Euro 11.9 million was financed by the Company through shareholder loan granted to BUTU. Upon the completion of the delisting, all the shares acquired by BUTU during the delisting process will be cancelled and the share capital of BUTU will be decreased accordingly. Following the share capital decrease, the Company will hold (indirectly) approximately 98% of BUTU's share capital. Following the expiry of the withdrawing term and following the payment of the aforesaid amount to the withdrawing shareholders, BUTU will be delisted from RASDAQ market upon the approval of the Financial Supervisory Authority in Romania. Mr. Ron Hadassi, Chairman of the Board of Directors, commented: "The completion of the takeover by the Company over the "Radisson Blu" Hotel in Bucharest is part of the Company's strategic plan to invest in the high-quality assets of the Company in order to maximize their potential. The Company believes that the Hotel has a significant future betterment potential, in view of the improvement in the Hotel's business results in recent years as well as the improvement in the macroeconomic environment in Romania." Mr. Doron Moshe, acting CEO and chief financial officer further added, "The purchase of the minority interest and the delisting of BUTU will allow the Company greater flexibility in the management and operation of the Hotel and in the management and use of the Hotel's free cash flow. For that purpose, the Company invested approximately Euro 11.9 million through a shareholder loan granted to BUTU." Simultaneously to the minority interest purchase proceeding, and as part of the Company's strategy to improve the real estate value of the Hotel, the Company has launched an extensive renovation process at the Hotel and the conversion of approx. 160 rooms into apartments to be operated under the Park Inn brand. The estimated cost of the renovation is approx. Euro 6 million, and will be financed by the Hotel's own resources. About "Radisson Blu" in Bucharest, Romania The hotel was opened in September 2008 and is located in the center of Bucharest and since then constituted a significant part of the exclusive hotels market in Bucharest. The hotel consists of 719 rooms and it is managed by Rezidor. The hotel also includes approximately 7,200 square meters of commercial areas including World Class Fitness Center, Platinum Casino and commercial area of fashion, jewelry, gifts, antiques and beauty shops. About Elbit Imaging Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) hold investments in real estate and medical companies. The Company, through its subsidiaries, also develops shopping and entertainment centers in Central Europe and invests in and manages hotels. Since February 2013, Elbit has intensively endeavored to come to an arrangement with its creditors. Elbit has said it has been hanging by a thread for more than five months. It has encountered cash flow difficulties and this burdens its day to day activities, and it certainly cannot make the necessary investments to improve its assets. In light of the arrangement proceedings, and according to the demands of most of the bondholders, as well as an agreement that was signed on March 19, 2013, between Elbit and the Trustees of six out of eight series of bonds, Elbit is prohibited, inter alia, from paying off its debts to the financial creditors -- and as a result a petition to liquidate Elbit was filed, and Bank Hapoalim has declared its debts immediately payable, threatening to realize pledges that were given to the Bank on material assets of the Company -- and Elbit undertook not to sell material assets of the Company and not to perform any transaction that is not during its ordinary course of business without giving an advance notice to the trustees. Accountant Rony Elroy has been appointed as expert for examining the debt arrangement in the Company. In July 2013, Elbit Imaging's controlling shareholders, Europe- Israel MMS Ltd. and Mr. Mordechay Zisser, notified the Company that the Tel Aviv District Court has appointed Adv. Giroa Erdinast as a receiver with regards to the ordinary shares of the Company held by Europe Israel securing Europe Israel's obligations under its loan agreement with Bank Hapoalim B.M. The judgment stated that the Receiver is not authorized to sell the Company's shares at this stage. Following a request of Europe-Israel, the Court also delayed any action to be taken with regards to the sale of those shares for a period of 60 days. Europe Israel and Mr. Zisser have also notified the Company that they utterly reject the Bank's claims and intend to appeal the Court's ruling. ELITE PHARMACEUTICALS: Signs Licensing Agreement with Epic ---------------------------------------------------------- Elite Pharmaceuticals, Inc., has entered into a sales and distribution licensing agreement with Epic Pharma LLC for ELI-200, an abuse-deterrent opioid utilizing Elite's proprietary pharmacological abuse-deterrent technology. Epic will be responsible for sales and marketing of ELI-200, and Elite will be responsible for the manufacture of the product. Epic will pay Elite non-refundable milestone payments totaling $15 million and a royalty based on net product sales. The term of the License is five years and the License is renewable upon mutual agreement at the end of the initial term. Elite also announced the dosing of the first subjects for an ELI-200 Phase III clinical study. This Phase III study is a multi-center, randomized, multiple-dose, blinded, placebo-controlled, parallel group, study to evaluate the efficacy and safety of abuse deterrent ELI-200 for the treatment of adults with moderate to severe pain following surgery. The study will enroll approximately 165 patients at five clinical sites. "Epic is pleased to have an opportunity to market this important new product and to add to our current pipeline of opioid products that includes a pending application for an abuse-deterrent oxycodone HCl extended release product," said Dr. Ashok Nigalaye, chief executive officer of Epic. "ELI-200 will allow Epic to extend its reach in the anti-abuse pain space, and to position both companies for long-term growth." "I am delighted to have a partner like Epic for Elite's first abuse-deterrent product," said Nasrat Hakim, president and chief executive officer of Elite Pharmaceuticals. "We will work closely with Epic to prepare for and ensure a successful launch. The ELI-200 Phase III study is expected to be wrapped up later this year and we expect an NDA filing for ELI-200 by year's end." About Elite Pharmaceuticals Northvale, New Jersey-based Elite Pharmaceuticals, Inc., is a specialty pharmaceutical company principally engaged in the development and manufacture of oral, controlled-release products, using proprietary technology and the development and manufacture of generic pharmaceuticals. The Company has one product, Phentermine 37.5mg tablets, currently being sold commercially. Elite Pharmaceuticals disclosed a net loss attributable to common shareholders of $96.6 million on $4.60 million of total revenues for the year ended March 31, 2014, as compared with net income attributable to common shareholders of $1.48 million on $3.40 million of total revenues for the year ended March 31, 2013. As of Dec. 31, 2014, Elite Pharmaceuticals had $25.7 million in total assets, $56.2 million in total liabilities and a $30.53 million total stockholders' deficit. ENERGY FUTURE: Harris Industries Sells $1.4K Claim to Sonar Credit ------------------------------------------------------------------ In the Chapter 11 cases of Energy Future Holdings Corp., et al., one claim switched hands on April 16, 2015: Transferee Transferor Claim Amount ---------- ---------- ------------ Sonar Credit Partners Harris Industries Inc $1,400.23 III, LLC About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80 percent-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. On April 29, 2014, Energy Future Holdings and 70 affiliated companies sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10979) after reaching a deal with some key financial stakeholders to keep its businesses operating while reducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). The Debtors are seeking to have their cases jointly administered for procedural purposes. As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in book value and liabilities of $49.7 billion. The Debtors have $42 billion of funded indebtedness. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee for the second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee represents the interests of the unsecured creditors of ONLY of Energy Future Competitive Holdings Company LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings Company LLC; and EFH Corporate Services Company, and of no other debtors. The Committee has selected Morrison & Foerster LLP and Polsinelli PC for representation in this high-profile energy restructuring. The lawyers working on the case are James M. Peck, Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K. Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at Polsinelli PC. ENERGY FUTURE: July 13 Hearing to Determine Oncor Leading Bidder ---------------------------------------------------------------- James Osborne at The Dallas Morning News reports that a hearing to determine the leading bidder for Energy Future Holdings Corp.'s power line company Oncor is scheduled for July 13, 2015. NextEra Energy, Bloomberg News relates, has submitted the leading bid in an auction process that is expected to reap the Company $18 billion. The Dallas Morning News says that the deal still awaits approval by Company's board of directors. According to The Dallas Morning News, rival bids are expected from Dallas billionaire Ray L. Hunt, chairman of Hunt Consolidated who was poised to take over Oncor in 2014 through a deal with the Company's creditors until NextEra offered more money. The report adds that Warren Buffet's Berkshire Hathaway and Houston utility CenterPoint could also be possible bidders. The Company said in court filings earlier this year that it expected the Oncor sale to be completed by August. About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80 percent-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. On April 29, 2014, Energy Future Holdings and 70 affiliated companies sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10979) after reaching a deal with some key financial stakeholders to keep its businesses operating while reducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). The Debtors are seeking to have their cases jointly administered for procedural purposes. As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in book value and liabilities of $49.7 billion. The Debtors have $42 billion of funded indebtedness. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee for the second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee represents the interests of the unsecured creditors of ONLY of Energy Future Competitive Holdings Company LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings Company LLC; and EFH Corporate Services Company, and of no other debtors. The Committee has selected Morrison & Foerster LLP and Polsinelli PC for representation in this high-profile energy restructuring. The lawyers working on the case are James M. Peck, Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K. Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at Polsinelli PC. ESPERANZA INN: Case Summary & 5 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Esperanza Inn, Corp. 103 Calle Hucar Bo. Esperanza Vieques, PR 00765 Case No.: 15-04411 Chapter 11 Petition Date: June 10, 2015 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Jaime L Velasco Bonilla, II, Esq. PO Box 9023336 San Juan, PR 00902-3336 Tel: (787) 562-0837 Email: Velascolaw@hotmail.com Total Assets: $566,555 Total Liabilities: $1.2 million The petition was signed by Lisa Ferguson, president. A list of the Debtor's five largest unsecured creditors is available for free at http://bankrupt.com/misc/prb15-04411.pdf EXPERIENCE INC: Point Park to Disable Career Network Website ------------------------------------------------------------ Justine Coyne at Pittsburgh Business Times reports that Point Park University will disable its career network website on June 30, 2015. Business Times quoted Angela Scaramucci, coordinator of employee relations as Point Park University's Career Development Center, as saying, "The company that hosts the site (Experience) has filed for bankruptcy, which has forced us to pursue another software company." Boston, Massachusetts-based Experience Inc. is a wholly-owned subsidiary of ConnectEDU.com. It filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 14-11240) on April 28, 2014, estimating its assets and liabilities at between $1 million and $10 million each. The petition was signed by Mark Podgainy, chief restructuring officer. Wojciech F Jung, Esq., and Sharon L. Levine, Esq., at Lowenstein Sandler LLP serve as the Company's bankruptcy counsel. Judge Shelley C. Chapman presides over the case. FINJAN HOLDINGS: June Markman Hearing Set for Proofpoint, Symantec ------------------------------------------------------------------ Finjan Holdings, Inc., released an update on its subsidiary Finjan, Inc.'s lawsuits against Proofpoint, Inc. and Symantec Corporation. Both cases are pending in the Northern District of California and have Markman Hearings scheduled in June. Finjan filed a patent infringement lawsuit against Proofpoint on Dec. 16, 2013 (3:13-cv-05808-HSG (CAND)). The Proofpoint matter is before the Honorable Haywood S. Gilliam of the U.S. District Court for the Northern District of California. Finjan asserts that Proofpoint is infringing eight of its U.S. Patent Nos.: 6,154,844; 7,058,822; 7,613,918; 7,647,633; 7,975,305; 8,079,086; 8,141,154; and 8,225,408, which cover Endpoint and Network Security technologies. The Proofpoint Claim Construction or "Markman" Hearing is set for June 24, 2015, at 10 a.m. (PT). Separately, Finjan filed a patent infringement lawsuit against Symantec on July 1, 2014 (3:14-cv-02998-HSG (CAND)) which is also before Judge Gilliam. Finjan asserts that Symantec is infringing eight of its US Patent Nos.: 6,154,844; 7,613,926; 7,756,996; 7,757,289; 7,930,299; 8,015,182; 8,141,154; and 8,677,494, which cover Network Security, Search Engine, and Endpoint technologies. The Symantec Markman Hearing is set for June 29, 2015, at 1 p.m. (PT). The Markman hearing is an important pre-trial event in a patent lawsuit, wherein the Court will interpret certain disputed claim terms (aka claim elements) in the asserted Finjan patent claims, after consideration of the parties' evidence. As previously reported in its suits against Blue Coat Systems and Sophos Ltd., Finjan has received favorable claim constructions in support of their infringement assertions in those matters. "Consistent with our Best Practices, we will continue to present our patent infringement claims credibly and convincingly to establish their merits for the Court," said Julie Mar-Spinola, chief IP officer and VP, legal operations. Finjan established a set of Licensing Best Practices in 2014 to outline the principles by which it operates and to call upon the intellectual property industry to adopt practices that foster and support technological advancements, investments in innovation, and job creation. In addition to its patent infringement suits against Proofpoint, Symantec, Blue Coat Systems, and Sophos, Finjan has also filed patent infringement lawsuits against FireEye, Inc. and Palo Alto Networks, Inc. relating to various patents in the Finjan portfolio. The Company will provide timely updates of important events relating to these matters on an ongoing basis. 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. FLEXPOINT SENSOR: Reports $479K Net Loss in First Quarter --------------------------------------------------------- Flexpoint Sensor Systems, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $479,000 on $32,000 of revenue for the three months ended March 31, 2015, compared with a net loss of $245,000 on $53,400 of revenue for the same period in the prior year. The Company's balance sheet at March 31, 2015, showed $5.26 million in total assets, $772,000 in total liabilities, and stockholders' equity of $4.49 million. A copy of the Form 10-Q is available at: http://is.gd/xXMkWz About Flexpoint Sensor Systems Flexpoint Sensor Systems, Inc., has developed and patented the Bend Sensor technology. The Bend Sensor is a technological breakthrough that offers a superior solution for applications that require accurate measurement and sensing of deflection, acceleration and range of motion. Global market opportunities include automotive, medical, industrial controls, government, health and fitness, security, computer, aerospace, transportation and consumer products. Flexpoint Sensor Systems, Inc., reported a net loss of $979,000 on $270,000 of engineering, contract and testing revenue for the year ended Dec. 31, 2014, compared to a net loss of $960,000 on $101,000 of engineering, contract and testing revenue in 2013. Sadler, Gibb & Associates, LLC, expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has an accumulated deficit of $21.4 million as of Dec. 31, 2014. FOUR OAKS: Names David Rupp as New Chief Executive Officer ---------------------------------------------------------- Four Oaks Fincorp, Inc., the holding company for Four Oaks Bank & Trust Company, announced that on June 8, 2015, the Board of Directors of the Company approved a management transition plan whereby (i) David H. Rupp, the Company's current president, chief operating officer and member of the Board, will become chief executive officer of the Company and the Bank and (ii) Ayden R. Lee, Jr., who has been serving as the chief executive officer of the Company and the Bank, will become the executive chairman of the Company. As Executive Chairman, Mr. Lee will provide, among other things, strategic, governance, shareholder relations, and risk management support and oversight to the Company, its executive team and the Board. Mr. Lee will also continue in his role as Chairman of the Board. Upon being appointed as chief executive officer, Mr. Rupp will no longer serve as the chief operating officer of the Company but will continue serving as the president and a member of the Board. The Transition Plan is targeted to become effective on or about June 30, 2015, and is subject to approval by the Federal Reserve Bank of Richmond. Mr. Rupp has been serving as the Company's president and chief operating officer since March 2015, after serving as executive vice president and chief operating officer since October 2014 and senior vice president, Strategic Project Manager since June 2014. He was also appointed to the Board on March 23, 2015. Prior to joining the Bank, he most recently served as Retail Banking and Mortgage President of VantageSouth Bank from 2012 to 2014. From 2009 to 2011, Mr. Rupp served as chief executive officer of Greystone Bank and, from 2008 to 2009, he served as Senior executive vice president of Regions Financial Corporation. Prior to his employment with Regions Financial Corporation, Mr. Rupp held various positions at Bank of America and First Union Corporation. "It has been my great honor to serve as the Company's CEO since 1980; and to have been surrounded by an outstanding board and team of community bankers for the entire period. The Company and Bank are now at a good place and it is an appropriate time for me to step down. David Rupp is an outstanding leader and I am both pleased and excited to transition the CEO reins to him. Please join me in both welcoming and supporting David as he leads the Company forward," said Mr. Lee. 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. 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. 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. FREDERICK'S OF HOLLYWOOD: Bayard Okayed as Committee Co-Counsel --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Frederick's of Hollywood, Inc., et al., to retain Bayard, P.A. as its co-counsel, nunc pro tunc to April 28, 2015. Mr. Alberto, an associate at Bayard, which maintains offices for the practice of law at 222 Delaware Avenue, Suite 900, Wilmington, Delaware, tells the Court that all Bayard professionals will invoice at a 10% discount from their standard hourly rates. Bayard has further advised the Committee that its ordinary hourly rates range from $500 to $950 per hour for directors, from $350 to $450 per hour for associates, and from $240 to $295 per hour for paraprofessionals. The primary attorney and paralegal expected to represent the Committee, and their discounted hourly rates are: Justin R. Alberto $405 Larry Morton, paralegal $265 Other attorneys and paralegals will render services to the Committee as needed. To the best of the Committee's knowledge, Bayard is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Frederick's Frederick's of Hollywood Group Inc., sells women's apparel and related products under its proprietary Frederick's of Hollywood brand. Frederick's had more than 200 brick-and-mortar stores at its peak. At present it sells its products at its online shop at http://www.fredericks.com/ On April 19, 2015, Frederick's of Hollywood and five affiliates each filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The cases are pending approval to be jointly administered under Case No. 15-10836 before the Honorable Kevin Gross (Bankr. D. Del.). The Company disclosed $36.5 million in assets and $106 million in debt as of the bankruptcy filing. The material debt obligations principally consist of $33 million in loans under a secured credit agreement, $16.2 million in unsecured promissory notes, and $56.7 million in trade debt and liabilities to landlords. The Company disclosed, in its schedules, $131,346,087 in assets and $118,036,690 in liabilities as of the Chapter 11 filing. The Debtors tapped Milbank, Tweed, Hadley & McCloy LLP, as bankruptcy counsel; Richards, Layton & Finger, P.A., as local counsel; Consensus Advisory Services LLC as investment banker and financial advisor; and Kurtzman Carson Consultants LLC, as claims and noticing agent. Andrew R. Vara, Acting U.S. Trustee for Region 3, notified the U.S. Bankruptcy Court in Delaware that he has appointed seven members to the Official Committee of Unsecured Creditors. Cooley LLP serves as lead counsel; Bayard, P.A. as its co-counsel; and BDO USA LLP as its financial advisor. FREDERICK'S OF HOLLYWOOD: BDO Okayed as Committee Advisor --------------------------------------------------------- The Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Frederick's of Hollywood, Inc., et al., to retain BDO Consulting, a division of BDO USA, LLP as its financial advisor, nunc pro tunc to April 30, 2015. BDO is expected to, among other things: a) analyze the financial operations of the Debtors pre- and post-petition, as necessary; b) analyze the financial ramifications of any proposed transactions for which the Debtors seek Bankruptcy Court approval including, but not limited to, postpetition financing, any sale(s) of all or a portion of the Debtors' assets, and the retention of management or employee incentive and severance plans; and c) conduct any requested financial analyses including verifying the material assets and liabilities of the Debtors, as necessary, and their values. David E. Berliner, a Certified Public Accountant, licensed under the laws of the State of New York, a Certified Insolvency and Restructuring Advisor (CIRA), a Certified Turnaround Professional (CTP), and a partner in the firm of BDO Consulting, told the Court that the hourly rates of BDO's personnel are: Partners/Managing Directors $475 - $795 Directors/Senior Managers $375 - $550 Managers/Vice Presidents $325 - $460 Seniors/Analysts $200 - $350 Staff $150 - $225 Mr. Berliner noted that at the Committee's request, BDO has agreed to these discounts from its standard hourly billing rates: partners (20%), managing directors (15%), and all other professionals (10%). BDO customarily charges its clients for reasonable out-of-pocket costs and expenses incurred by BDO in connection with the assignment. To the best of the Committee's knowledge, BDO is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Frederick's Frederick's of Hollywood Group Inc., sells women's apparel and related products under its proprietary Frederick's of Hollywood brand. Frederick's had more than 200 brick-and-mortar stores at its peak. At present it sells its products at its online shop at http://www.fredericks.com/ On April 19, 2015, Frederick's of Hollywood and five affiliates each filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The cases are pending approval to be jointly administered under Case No. 15-10836 before the Honorable Kevin Gross (Bankr. D. Del.). The Company disclosed $36.5 million in assets and $106 million in debt as of the bankruptcy filing. The material debt obligations principally consist of $33 million in loans under a secured credit agreement, $16.2 million in unsecured promissory notes, and $56.7 million in trade debt and liabilities to landlords. The Company disclosed, in its schedules, $131,346,087 in assets and $118,036,690 in liabilities as of the Chapter 11 filing. The Debtors tapped Milbank, Tweed, Hadley & McCloy LLP, as bankruptcy counsel; Richards, Layton & Finger, P.A., as local counsel; Consensus Advisory Services LLC as investment banker and financial advisor; and Kurtzman Carson Consultants LLC, as claims and noticing agent. Andrew R. Vara, Acting U.S. Trustee for Region 3, notified the U.S. Bankruptcy Court in Delaware that he has appointed seven members to the Official Committee of Unsecured Creditors. Cooley LLP serves as lead counsel; Bayard, P.A. as its co-counsel; and BDO USA LLP as its financial advisor. FREDERICK'S OF HOLLYWOOD: Cooley Okayed as Committee Lead Counsel ----------------------------------------------------------------- The Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware authorized The Official Committee of Unsecured Creditors in the Chapter 11 cases of Frederick's of Hollywood, Inc., et al., to retain Cooley as its lead counsel, nunc pro tunc to April 28, 2015. The hourly rates of the Cooley professionals anticipated to be primarily staffed on the matter are: Professional Standard Rate Adjusted Rate ------------ ------------- ------------- Lawrence C. Gottlieb, partner $1,055 $844 Cathy Hershcopf, partner $950 $760 Jeffrey L. Cohen, partner $785 $628 Seth Van Aalten, associate $755 $604 Robert B. Winning, associate $655 $524 Jeremy Rothstein, associate $470 $376 Rebecca Goldstein, paralegal $300 $300 Mollie Canby, paralegal $210 $210 To the best of the Committee's knowledge, Cooley represents no interest adverse to the Committee, the Debtors, their estates, or any other party-in-interest. About Frederick's Frederick's of Hollywood Group Inc., sells women's apparel and related products under its proprietary Frederick's of Hollywood brand. Frederick's had more than 200 brick-and-mortar stores at its peak. At present it sells its products at its online shop at http://www.fredericks.com/ On April 19, 2015, Frederick's of Hollywood and five affiliates each filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The cases are pending approval to be jointly administered under Case No. 15-10836 before the Honorable Kevin Gross (Bankr. D. Del.). The Company disclosed $36.5 million in assets and $106 million in debt as of the bankruptcy filing. The material debt obligations principally consist of $33 million in loans under a secured credit agreement, $16.2 million in unsecured promissory notes, and $56.7 million in trade debt and liabilities to landlords. The Company disclosed, in its schedules, $131,346,087 in assets and $118,036,690 in liabilities as of the Chapter 11 filing. The Debtors tapped Milbank, Tweed, Hadley & McCloy LLP, as bankruptcy counsel; Richards, Layton & Finger, P.A., as local counsel; Consensus Advisory Services LLC as investment banker and financial advisor; and Kurtzman Carson Consultants LLC, as claims and noticing agent. Andrew R. Vara, Acting U.S. Trustee for Region 3, notified the U.S. Bankruptcy Court in Delaware that he has appointed seven members to the Official Committee of Unsecured Creditors. Cooley LLP serves as lead counsel; Bayard, P.A. as its co-counsel; and BDO USA LLP as its financial advisor. FREDERICK'S OF HOLLYWOOD: Court Issues 3rd Interim DIP Order ------------------------------------------------------------ Judge Kevin Gross on June 3, 2015, entered a third interim order authorizing Frederick's of Hollywood Inc., et al., to access DIP financing and use cash collateral. The order provides that the Debtors are authorized to borrow under the DIP Creditor Facility on an interim basis in an amount not to exceed $8 million. The order also provides that the Debtors are authorized to use cash collateral to make payments on the Debtors' prepetition obligations, provided that the payments will not exceed $3 million. A copy of the Third Interim DIP Order is available for free at: http://bankrupt.com/misc/Fred_Holl_3rd_Interim_Ord.pdf A final hearing on the Debtors' request to access DIP financing is scheduled for June 16, 2015. DIP Financing Motion As previously reported by The Troubled Company Reporter, Salus CLO 2012-1, Ltd, as lender, and Salus Capital Partners, LLC, as administrative agent and collateral agent, have agreed to provide the Debtors are revolving credit facility in the maximum committed amount of $11 million. The DIP Facility will mature 6 months from the execution of the DIP Credit Agreement. The DIP Facility will bear interest at the LIBOR Rate plus 15.5%. The DIP Agent will charge an unused line of credit fee, and collateral monitoring fees. The DIP Credit Agreement contains usual and customary events of default. The Debtors owe the aggregate principal amount of $32,988,000 pursuant to prepetition funded debt provided by lenders and SCP, as administrative agent and collateral agent. About Frederick's Frederick's of Hollywood Group Inc., sells women's apparel and related products under its proprietary Frederick's of Hollywood brand. Frederick's had more than 200 brick-and-mortar stores at its peak. At present it sells its products at its online shop at http://www.fredericks.com/ On April 19, 2015, Frederick's of Hollywood and five affiliates each filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The cases are pending approval to be jointly administered under Case No. 15-10836 before the Honorable Kevin Gross (Bankr. D. Del.). The Company disclosed $36.5 million in assets and $106 million in debt as of the bankruptcy filing. The material debt obligations principally consist of $33 million in loans under a secured credit agreement, $16.2 million in unsecured promissory notes, and $56.7 million in trade debt and liabilities to landlords. The Debtors tapped Milbank, Tweed, Hadley & McCloy LLP, as bankruptcy counsel; Richards, Layton & Finger, P.A., as local counsel; Consensus Advisory Services LLC as investment banker and financial advisor; and Kurtzman Carson Consultants LLC, as claims and noticing agent. Andrew R. Vara, Acting U.S. Trustee for Region 3, notified the U.S. Bankruptcy Court in Delaware that he has appointed seven members to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Frederick's of Hollywood, Inc., and its debtor affiliates. FREDERICK'S OF HOLLYWOOD: Seeks General Release for Salus --------------------------------------------------------- Frederick's of Hollywood Inc., et al., at a hearing on June 16, 2015, are slated to seek final approval of their request to obtain DIP financing fr0m Salus CLO 2012-1, Ltd, as lender, and Salus Capital Partners, LLC, as administrative agent and collateral agent. The Debtors have filed a motion asking the Court to include in the Final DIP Order, among other things, these terms: (a) a general release of the DIP Agent, DIP Lenders, the Prepetition Agent, the Prepetition Lenders excluding FSR as Prepetition Agent, a Prepetition Lender, or a participant in the Debtors' obligations under the Prepetition Credit Agreement or otherwise (collectively, the "Salus Secured Parties") and Salus Capital Partners, LLC, and Salus CLO 2012-1, Ltd (collectively, with the Salus Secured Parties, the "Salus Parties"), each in all capacities as of the entry of the Final Order, and (b) termination of the challenge period as to the Salus Parties. On April 20, 2015, the Debtors filed with the Court the Original DIP Financing Motion. Following a first day hearing to consider the relief requested in the Original DIP Financing Motion on an interim basis, on April 21, 2015, the Court entered an interim order approving the Original DIP Financing Motion to the extent set forth therein. On May 18, 2015, the Court entered a second interim order approving the Original DIP Financing Motion to the extent set forth therein. On June 3, 2015, the Court entered a third interim order approving the Original DIP Financing Motion to the extent set forth therein. Each of the Interim Order, Second Interim Order, and Third Interim Order provided that Challenges could be brought by no later than 60 days after the date of its formation with respect to the Committee, and 75 days from the date of entry of the Interim Order for all other parties-in-interest; provided, however, that if, prior to the Challenge Deadline, the cases convert to cases under Chapter 7 or if a Chapter 11 trustee is appointed, the Challenge Deadline would have been extended to 45 days after such appointment. The entry of the Final Order will terminate the Challenge Period as to the Salus Parties. Counsel to the Debtors, Joseph C. Barsalona II, Esq., at Richards, Layton & Finger, PA, explains that since the Petition Date, the Debtors, the DIP Agent, DIP Lenders, the Prepetition Agent, the Prepetition Lenders, FSR, the HGI Entities and, after their appointment, the Committee, have engaged in negotiations that would allow for a consensual resolution of the chapter 11 cases and the filing of a plan of liquidation. As part of the Settlement, the parties have agreed that, upon the closing of the sale of substantially all of the Debtors' assets, all liens securing the DIP Obligations and the Prepetition Obligations shall be transferred to the proceeds of such sale, and such proceeds shall be applied at the closing of the sale to permanently and indefeasibly repay the DIP Obligations and the Prepetition Obligations related to the Line of Credit (other than those participated to the Term Lender), as applicable, in full, in cash (the "Salus Payoff"). In addition, as part of the Settlement, the Debtors have agreed to fund a Payoff Reserve to cover any fees and expenses owing to the DIP Agent, DIP Lenders, Prepetition Agent or Prepetition Lenders that are required to be paid after the closing of the sale. Upon the Salus Payoff and the funding of the Payoff Reserve, the Settlement contemplates that all Obligations to the Salus Secured Parties will be permanently and indefeasibly repaid in full, in cash. As a result, the Salus Secured Parties will no longer have interest in the Cash Collateral or liens against the Debtors' assets or property and the Debtors will be free to use Cash Collateral and otherwise conduct the chapter 11 cases without the consent of any of the Salus Secured Parties and without establishing a reserve to cover any further Obligations. In order to ensure that the Salus Secured Parties are, in fact, permanently and indefeasibly repaid in full, in cash, as of the closing of the sale (i.e., to ensure that such cash cannot be clawed back at a later date), the Salus Secured Parties have required, as part of the Settlement, a General Release upon entry of the Final Order. Mr. Barsalona avers that in the absence of such General Releases being granted, the Salus Secured Parties may not consent to further use of Cash Collateral or may require a substantial reserve to be held back from the Cash Collateral to protect them from a Challenge. The Debtors could contest the right of the Salus Secured Parties to withhold consent or require a significant reserve, but such a contest would likely result in significant expense and delay for the Debtors. Moreover, the Committee has investigated potential claims and causes of action against the Prepetition Lenders and has determined to resolve such potential claims and causes of action in exchange for the consideration embodied in the Settlement. DIP Financing Motion As previously reported by The Troubled Company Reporter, Salus CLO 2012-1, Ltd, as lender, and Salus Capital Partners, LLC, as administrative agent and collateral agent, have agreed to provide the Debtors are revolving credit facility in the maximum committed amount of $11 million. The DIP Facility will mature 6 months from the execution of the DIP Credit Agreement. The DIP Facility will bear interest at the LIBOR Rate plus 15.5%. The DIP Agent will charge an unused line of credit fee, and collateral monitoring fees. The DIP Credit Agreement contains usual and customary events of default. The Debtors owe the aggregate principal amount of $32,988,000 pursuant to prepetition funded debt provided by lenders and SCP, as administrative agent and collateral agent. About Frederick's Frederick's of Hollywood Group Inc., sells women's apparel and related products under its proprietary Frederick's of Hollywood brand. Frederick's had more than 200 brick-and-mortar stores at its peak. At present it sells its products at its online shop at http://www.fredericks.com/ Frederick's of Hollywood and five affiliates each filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 15-10836) on April 19, 2015. The cases are before the Honorable Kevin Gross. The Company disclosed $36.5 million in assets and $106 million in debt as of the bankruptcy filing. The material debt obligations principally consist of $33 million in loans under a secured credit agreement, $16.2 million in unsecured promissory notes, and $56.7 million in trade debt and liabilities to landlords. The Debtors tapped Milbank, Tweed, Hadley & McCloy LLP, as bankruptcy counsel; Richards, Layton & Finger, P.A., as local counsel; Consensus Advisory Services LLC as investment banker and financial advisor; and Kurtzman Carson Consultants LLC, as claims and noticing agent. Andrew R. Vara, Acting U.S. Trustee for Region 3, notified the U.S. Bankruptcy Court in Delaware that he has appointed seven members to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Frederick's of Hollywood, Inc., and its debtor affiliates. FURNITURE BRANDS: Liquidating Trustee Has Settlement Pact With EPA ------------------------------------------------------------------ On June 3, 2015, the Liquidating Trustee lodged a proposed stipulation by and between the Liquidating Trustee and the U.S. Environmental Protection Agency with the U.S. Bankruptcy Court for the District of Delaware, in the Chapter 11 bankruptcy of FBI Wind Down, Inc., fka Furniture Brands International, Inc., et al. The Settlement Agreement resolves the claims of the U.S. set forth in the proof of claim against Thomasville Furniture Industries, Inc., for costs incurred and to be incurred in connection with the Buckingham County Landfill Site, located in Dillwyn, Buckingham County, Virginia, pursuant to Section 107 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. 9607. Under the Settlement Agreement, the Liquidating Trustee agrees to an allowed and fixed general unsecured claim in the amount of $6 million for costs incurred and to be incurred by the U.S. Environmental Protection Agency at the Site. About Furniture Brands Furniture Brands International (NYSE:FBN) -- http://www.furniturebrands.com-- engaged in the designing, manufacturing, sourcing and retailing home furnishings. Furniture Brands markets products through a wide range of channels, including company owned Thomasville retail stores and through interior designers, multi-line/ independent retailers and mass merchant stores. Its brands include Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and LaBarge. The balance sheet at June 29, 2013, showed $546.73 million in total assets against $550.13 million in total liabilities. On Sept. 9, 2013, Furniture Brands International, Inc. and 18 affiliated companies sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-12329). Attorneys at Paul Hastings LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. Alvarez and Marsal North America, LLC, is the restructuring advisors. Miller Buckfire & Co., LLC is the investment Banker. Epiq Systems Inc. dba Epiq Bankruptcy Solutions is the claims and notice agent. The official creditor's committee is comprised of the Pension Benefit Guaranty Corp., Milberg Factors Inc. and five suppliers. The Committee tapped Blank Rome LLP as co-counsel, Hahn & Hessen LLP as lead counsel, BDO Consulting as financial advisor, and Houlihan Lokey Capital, Inc., as investment banker. In November 2013, Furniture Brands won bankruptcy court approval to sell the business to KPS Capital Partners LP for $280 million. Private-equity investor KPS formed a new company named Heritage Home Group LLC to operate the business. Furniture Brands changed its name to FBI Wind Down, Inc., following the sale. The Debtors on July 14, 2014, won confirmation of their Second Amended Joint Plan of Liquidation as filed on July 9, 2014. GBG RANCH: Updates Full-Payment Liquidating Plan ------------------------------------------------ GBG Ranch, Ltd., filed an amended liquidating plan to incorporate developments in the Chapter 11 case since the filing of the original iteration of the plan. The Debtor's plan proposes to pay all claims in full. GB Ranch owns three ranches in Laredow, Webb County, Texas: Hill Ranch, the Corazon Ranch, and the Oilton Ranch. The Debtor has successfully conducted two auction sales of tracks on the Hill Ranch. Hill Cuchilla, LLC as assignee of Memo, won the auction for the Hill Tracts 1, 2, 8 and 9 with its $4,079,542 offer. Hill Cuchilla, LLC, won the auction for Hill Tracts 3 and 4 with a $5,475,000 bid. The Debtor still owns 3 Hill Ranch tracts – Tract 5, Tract 6 and Tract 7. The Corazon Ranch has been appraised at $13,470,000 or $1,525 per acre. Pursuant to the Wind Stipulation, the Debtor intends to convey the Corazon into the GBG Ranch Trust in order to facilitate the exploitation of the wind opportunities on the Corazon. As for the Oilton Ranch, in April 2015, the Debtor, Quita Wind and Torrecillas Wind Energy, Company, LLC, sought and obtained approval of the assumption of the Torrecillas Wind Lease dated March 31, 2014 on the Oilton Ranch. The Debtor received notification on Aril 30, 2015 that the Torrecillas Wind Project is on track for a 2016 construction start date as well as confirmation that the Delay Rental payable under the Wind Lease has been funded to the IOLTA account of Clemens & Spencer, P.C. In accordance with the Wind Stipulation, the Debtor has agreed to liquidate the non-mineral classified lands located on the Hill consisting of Tracts 1, 2, 3, 4, 6, 7, 8 and 9, and Transfer the surface estate, including the mineral classified portion of the Corazon, the surface estate of the Oilton, and the mineral classified lands of the Hill (Tract 513) into a Texas domestic trust (the "GBG Ranch Trust") which shall have two classes of beneficiaries: "Surface Estate Beneficiaries"; and "Wind Revenue Beneficiaries". Alternatively, in the event that the Frost Bank Trust Department, or another qualified trustee is identified for the GBG Ranch Trust, but the trustee declines to accept the Corazon, the Oilton or the Hill Tracts ("Rejected Plan Assets"), the Debtor will cause the Rejected Plan Assets to be sold. The Debtor has no secured debt and, therefore, there are no secured claims scheduled. According to the Amended Disclosure Statement, the priority and/or secured claims of taxing authorities (Class 1) will be paid in full on the effective date of the Plan. Allowed general unsecured claims of third parties (Class 2) estimated at $52,835 will be paid in full from cash on hand on the Effective Date. The general unsecured claims of affiliated entities (Class 3) will be paid in full within 30 business days following the day on which the claims become and allowed pursuant to a final order. Holders of equity interests will receive their pro rata share distribution of the cash on hand after payment of all allowed administrative expenses and all allowed Class 2 and Class 3 claims. A redlined copy of the disclosure statement explaining the Debtor's First Amended Plan of Liquidation dated May 19, 2015, is available for free at: http://bankrupt.com/misc/GBG_Ranch_Am_DS_RL.pdf About GBG Ranch GBG Ranch, LTD, a Texas Limited Partnership, owns the surface estate of three ranches in the vicinity of Laredo, Webb County, Texas. GBG Ranch sought Chapter 11 protection (Bankr. S.D. Tex. Case No. 14-50155) in Laredo, Texas on July 8, 2014, without stating a reason. In a schedules filed Dec. 9, 2014, the Debtor disclosed $54,111,258 in assets and $4,401,493 in liabilities as of the Chapter 11 filing. The company is represented by the Law Office of Carl M. Barto. Leslie M. Luttrell and the Luttrell + Villareal Law Group serve as special counsel. In October 2014, the Court, with the agreement of the Debtor, Memo and Quita Wind, appointed Ronald Hornberger as the Chapter 11 Examiner under 11 U.S.C. Sec. 1106. GEORGE WASHINGTON ACADEMY: S&P Raises LT Rating From 'BB+' ---------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term rating to 'BBB-' from 'BB+' on George Washington Academy (GWA), Utah's existing debt. At the same time, Standard & Poor's assigned its 'BBB-' long-term rating to GWA's series 2015 charter school revenue bonds. The outlook is stable. "The raised rating reflects our view of GWA's stable enrollment and strong demand, days cash on hand, and high academic performance," said Standard & Poor's credit analyst Jessica Matsumori. "Further supporting the rating is that GWA has no additional debt plans in the near term," Ms. Matsumori added. GWA, located in St. George, Utah, was originally authorized by the Utah State Charter School Board in 2006 and has been operational since fiscal 2007. The school currently serves grades kindergarten through eighth grade, with an emphasis on CORE Knowledge curriculum. GIGGLES N HUGS: Reports $319K Net Loss in March 29 Quarter ---------------------------------------------------------- Giggle N Hugs, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $319,000 on $918,000 of revenue for the 13 weeks ended March 29, 2015, compared with a net loss of $506,000 on $822,000 of revenue for the same period last year. The Company's balance sheet at March 29, 2015, showed $2.68 million in total assets, $2.86 million in total liabilities, and a stockholders' deficit of $171,000. The Company has recently sustained operating losses and has an accumulated deficit of $7.47 million at March 29, 2015. In addition, the Company has negative working capital of $843,000 at March 29, 2015. These factors raise substantial doubt about the ability of the Company to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/RFTrqa Los Angeles, Calif.-based Giggle N Hugs, Inc., owns and operates a kid-friendly restaurant named Giggles N Hugs in the Westfield Mall in Century City, as well as the new Westfield Topanga Shopping Center location in Woodland Hills, California and owns the intellectual property rights for Giggles N Hugs facilities in the future. Giggle N Hugs, Inc., reported a net loss of $2.36 million on $3.34 million in revenues for the year ended Dec. 28, 2014, compared to a net loss of $1.56 million on $2.26 million of revenues in the same period in 2013. De Joya Griffith LLC expressed substantial doubt about the Company's ability to continue as a going concern, citing the Company has has incurred losses from operations. GMG CAPITAL: Athenian Says 2nd Amended Plan Unconfirmable --------------------------------------------------------- Athenian Venture Partners I, L.P. and Athenian Venture Partners II, L.P., say the latest plan of reorganization proposed by GMG Capital Partners III, L.P., et al., remains unconfirmable, and the bankruptcy court should instead grant Athenian's motion dismiss or convert the Chapter 11 cases. AVP updated the motion to convert in connection with the filing of the Disclosure Statement for Second Amended Joint Plan of Reorganization proposed by debtors GMG Capital, et al. AVP noted that the Plan is not confirmable and the Disclosure Statement is not adequate because the Debtors have not secured sufficient funding for their Plan and cannot demonstrate any likelihood that sufficient funding will ever be available. The Plan Debtors claim to have exit funding that will enable them to borrow a maximum of $6.5 million to fund distributions and reserves under the Plan. The Plan Debtors claim that the amount is sufficient. While the Plan Debtors claim to have $6.5 million in financing, they actually need over $8.5 million in financing -- a funding shortfall of over $2 million. Dismissal/Conversion Motion As reported in the TCR on Oct 28, 2014, AVP filed a motion seeking an order to convert the cases the Debtors into chapter 7 proceedings. Two of the Debtors have finally, after over a year in bankruptcy, filed a purported chapter 11 plan. AVP however complains that the "plan" contains none of the terms most important to the Debtors' creditors and other stakeholders -- namely, the amount of the Debtors' assets being sold to fund the plan, the amount of money the Debtors will receive for that sale and the time that the sale will close. Instead, the "plan" is a nearly-blank form that contains nothing of substance, except perhaps non-consensual third-party releases for the benefit of the Debtors' insiders, AVG contends. Moreover, AVG continues, the "plan" only covers two of the Debtors, GMG III and GMG Companion, and, perhaps most egregiously, the Debtors have failed to file a disclosure statement concerning the "plan" in violation of Rule 3016(b) of the Federal Rules of Bankruptcy Procedure. AVP relates that the Debtors' cases have now been pending for over a year and as the monthly operating reports demonstrate, the Debtors are not operating entities -- they have no employees, create no goods, provide no services, make no sales, and collect no revenues; and are not actively investing in any companies or properties. Instead, they are fully-invested venture capital vehicles whose sole purpose is to hold certain speculative investments, namely stock in several unproven technology companies, AVP notes. The Debtors, AVP relays, have held these stocks for over ten years at this point. Now, a year into these bankruptcy cases, the Debtors still appear to be unable to propose a confirmable chapter 11 plan -- leaving two of the Debtors to file a bare-bones plan with no detail concerning how distributions will be funded and the other two Debtors with zero prospects for exiting bankruptcy, AVP maintains. "The only sensible path forward," AVP argues, "is for the Debtors to promptly sell sufficient assets to meet their obligations without further delay." Consequently, because the Debtors' insiders are not acting with creditors' best interests at heart, it is time for these cases to be converted to chapter 7 to allow a neutral fiduciary to liquidate the estates' assets or be dismissed to allow creditors to enforce their state law rights, AVP tells the Court. About GMG Capital Partners GMG Capital Partners III, L.P., and GMG Capital Partners III Companion Fund, L.P., sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 13-12937 and 13-12939) in Manhattan on Sept. 10, 2013. Stuart M. Bernstein oversees the Debtor's case. Olshan Frome Wolosky LLP represents the Debtor its Chapter 11 Bankruptcy Case. GMG Capital Partners III disclosed $21,696,757 in assets and $7,877,498 in liabilities as of the Chapter 11 filing. GMG Capital Partners III, L.P., filed its First Amended Joint Plan of Reorganization and explanatory Disclosure Statement dated Dec. 5, 2014. The cornerstone of the Plan is the transfer of certain of the Debtors' assets in Lancope pursuant to the asset purchase agreement to a third party in exchange for the consideration necessary to fund the plan. As part of that transaction, non- Debtor GMG IIIA, a book entry holder of certain interests in Lancope, will also transfer certain of its interests in Lancope to fund the Plan. The Debtors believe such transfer is entirely consistent with the expectations of all III Class Partnerships to be treated equally on a pro rata basis. GMG LLC is in the process of contacting the limited partners of GMG IIIA, stating GMG LLC's intention for GMG IIIA to follow through with the Sale and otherwise contribute to the Plan expenses and distributions on a pro rata basis. GRASS VALLEY: Amends List of Largest Unsecured Creditors -------------------------------------------------------- Grass Valley Holdings, L.P., filed with the U.S. Bankruptcy Court for the District of Utah an amended list of creditors holding the 20 largest unsecured claims to provide for (1) the addition of Standard Plumbing in the list; and (2) the exclusion of these creditors from the list: (i) Garth O. Green; (ii) GEMSA; (iii) Michal Green; and (iv) Mountain America Credit Union. The creditors' list now consists of these creditors: Creditors Amount of Claim --------- --------------- City of Lehi $1,255 Coldwell Banker $3,479 Durham Jones & Pinegar $25,000 Garth O. Green Enterprises, Inc. Unknown Intermountain Door $217 Janna Johnson $1,300 Springville City $2,254 Squire & Company, P.C. $16,298 Standard Plumbing Unknown Veracity $353 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 disclosed $21,478,874 in assets and $13,187,245 in liabilities as of the Chapter 11 filing. 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. HAAS ENVIRONMENTAL: Pipe Services Sells $73,000 Claim to Sierra --------------------------------------------------------------- In the Chapter 11 case of Haas Environmental, Inc., one claim switched hands on March 4, 2015: Transferee Transferor Claim Amount ---------- ---------- ------------ Sierra Liquidity Fund, LLC Pipe Services $72,676.00 About Haas Environmental With corporate offices located at Vincentown, New Jersey, Haas Environmental, Inc., performs industrial cleaning and maintenance at steel mills, and provides support services to companies involved in "fracking" operations. The company's steel mill operations are located in Trinity, Alabama; Armorel, Arkansas; and Burns Harbor, Indiana. Eugene Haas is the president. Haas Environmental filed a Chapter 11 petition (Bankr. D.N.J. Case No. 13-27297) on Aug. 6, 2013. Judge Kathryn C. Ferguson presides over the case. The Debtor disclosed $10.1 million in assets and $11.6 million in liabilities as of the Chapter 11 filing. The Debtor tapped Cozen O'Conner as counsel from the Petition Date through Dec. 8, 2013, and Sherman Silverstein from Dec.9, 2013 to the present. Woodworth & St. John is the Debtor's accountant; Guida Realty is the realtor to assist with the sale of the Seubenville, Ohio property; and Kennen & Kennen, Inc. as realtor for the sale of the Glen Dale property. Mary E. Seymour, Esq., at Lowenstein Sandler LLP, serves as counsel for the Official Committee of Unsecured Creditors. EisnerAmper LLP serves as the Committee's financial advisor. HD SUPPLY: Posts $242 Million Net Income in First Quarter --------------------------------------------------------- HD Supply Holdings, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $242 million on $2.2 billion of net sales for the three months ended May 3, 2015, compared to a net loss of $12 million on $2.1 billion of net sales for the three months ended May 4, 2014. As of May 3, 2015, HD Supply had $6.3 billion in total assets, $6.8 billion in total liabilities and a $498 million total stockholders' deficit. "I am very pleased with our solid first quarter performance. We delivered 6 percent sales growth, 14 percent Adjusted EBITDA growth and 94% Adjusted EPS growth," stated Joe DeAngelo, CEO of HD Supply. "Despite adverse weather and a challenging environment, we remained focused on controllable execution to deliver profitable growth in excess of our market growth estimates while keeping our teams safe." The Company said its sources of funds, primarily from operations, cash on-hand, and, to the extent necessary, from readily available external financing arrangements, are sufficient to meet all current obligations on a timely basis. The Company believes that these sources of funds will be sufficient to meet the operating needs of its business for at least the next twelve months. During the first quarter of fiscal 2015, the Company's generation of cash was primarily driven by cash receipts from operations, net debt borrowings, and proceeds from stock option exercises, partially offset by the payment of interest on debt and capital expenditures. As of May 3, 2015, the Company's combined liquidity of approximately $1,215 million was comprised of $155 million in cash and cash equivalents and $1,060 million of additional available borrowings (excluding $41 million of borrowings on available cash balances) under its Senior ABL Facility, based on qualifying inventory and receivables. A full-text copy of the Form 10-Q is available for free at: http://is.gd/3dErol About HD Supply HD Supply, Inc., headquartered in Atlanta, Georgia, is one of the largest North American wholesale distributors supporting residential and non-residential construction and to a lesser extent electrical consumption and repair and remodeling. HDS also provides maintenance, repair and operations services. Its businesses are organized around three segments: Infrastructure and Energy; Maintenance, Repair & Improvement; and, Specialty Construction. HDS operates through approximately 800 locations throughout the U.S. and Canada serving contractors, government entities, maintenance professionals, home builders and professional businesses. * * * As reported by the TCR on Jan. 11, 2013, Moody's Investors Service upgraded HD Supply's corporate family rating to 'B3' from 'Caa1'. "This rating action results from our expectations that HDS will refinance a significant portion of its senior subordinated notes due 2015, effectively extending the remainder of its maturities by at least two years to 2017," Moody's said. HD Supply carries a 'B' corporate credit rating, with negative outlook, from Standard & Poor's Ratings Services. HORNED DORSET: Creditor's Meeting Slated for July 6 --------------------------------------------------- A meeting of creditors of Horned Dorset Primavera Inc. is set for July 6, 2015, at 9:00 a.m., at 341 meeting room, Ochoa Building, 500 Tanca Street, First Floor in San Juan, Puerto Rico. About The Horned Dorset Primavera The Horned Dorset Primavera Inc. operates the Horned Dorset Primavera, a small luxury hotel located in northwestern Puerto Rico, two miles from the town of Rincon. The hotel -- http://www.horneddorset.net/-- is set among rolling hills at the edge of the beautiful Caribbean Sea and is known for reserved European service executed in an atmosphere unique in Puerto Rico and the award-winning Restaurant Aaron. The hotel is a member of Relais & Chateaux. The Horned Dorset Primavera Inc. commenced a Chapter 11 bankruptcy case (Bankr. D.P.R. Case No. 15-03837) in Old San Juan, Puerto Rico on May 22, 2015. According to the docket, the Debtor's is due Sept. 21, 2015, and its Chapter 11 plan is due Nov. 18, 2015. The Debtor has tapped Isabel M Fullana, Esq., at Garcia Arregui & Fullana PSC, as counsel. HORNED DORSET: Wilhelm Sack to Serve as Representative ------------------------------------------------------ The Horned Dorset Primavera Inc. obtained approval from the U.S. Bankruptcy Court for the District of Puerto Rico to allow Wilhelm Sack to perform all acts to be performed by the Debtor and attend on behalf of the Debtor any examination, meeting or hearing unless the Court orders otherwise. According to the Debtor, Mr. Sack, as General Manager of the Debtor, is knowledgeable of all pertinent financial information concerning the Debtor, as well as business operations and its future rehabilitation. About The Horned Dorset Primavera The Horned Dorset Primavera Inc. operates the Horned Dorset Primavera, a small luxury hotel located in northwestern Puerto Rico, two miles from the town of Rincon. The hotel -- http://www.horneddorset.net/-- is set among rolling hills at the edge of the beautiful Caribbean Sea and is known for reserved European service executed in an atmosphere unique in Puerto Rico and the award-winning Restaurant Aaron. The hotel is a member of Relais & Chateaux. The Horned Dorset Primavera Inc. commenced a Chapter 11 bankruptcy case (Bankr. D.P.R. Case No. 15-03837) in Old San Juan, Puerto Rico on May 22, 2015. According to the docket, the Debtor's is due Sept. 21, 2015, and its Chapter 11 plan is due Nov. 18, 2015. The Debtor has tapped Isabel M Fullana, Esq., at Garcia Arregui & Fullana PSC, as counsel. HOVNANIAN ENTERPRISES: Incurs $19.6 Million Net Loss in Fiscal Q2 ----------------------------------------------------------------- Hovnanian Enterprises, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $19.6 million on $469 million of total revenues for the three months ended April 30, 2015, compared with a net loss of $7.90 million on $450 million of total revenues for the same period in 2014. For the six months ended April 30, 2015, the Company reported a net loss of $33.9 million on $915 million of total revenues compared to a net loss of $32.4 million on $814 million of total revenues for the same period last year. As of April 30, 2015, the Company had $2.50 billion in total assets, $2.60 billion in total liabilities and a $146 million total stockholders' deficit. "As we discussed on our first quarter conference call, we expected our second quarter gross margin to be adversely affected by incentives and concessions on started unsold homes. However, the impact was greater than we anticipated and we are disappointed with our second quarter results," stated Ara K. Hovnanian, Chairman of the Board, president and chief executive officer. "Based on the higher gross margin in our April 30th backlog we are confident that our gross margin for the third and fourth quarters of fiscal 2015 will show sequential increases. While we still feel good about our ability to grow the top line during fiscal 2015 and still expect to generate a solid profit during the fourth quarter, we do not expect it to be sufficient to offset earlier quarterly losses." "We control enough land today to further grow our community count and remain focused on improving the operating results of some of our weaker divisions. As a result, assuming no changes in current market conditions, we expect fiscal 2016 to be a breakout year for deliveries and revenues, which should lead to a substantial increase in profitability as compared to recent years," concluded Mr. Hovnanian. A full-text copy of the Form 10-Q is available for free at: http://is.gd/lL1w6O About Hovnanian Enterprises Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV) -- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian, is one of the nation's largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes and CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes. * * * As reported by the Troubled Company Reporter on April 25, 2013, Standard & Poor's Ratings Services said it raised its corporate credit rating on Hovnanian Enterprises Inc. to 'B-' from 'CCC+'. "The upgrade reflects strengthening operating performance supported by the broader recovery in the housing market that, we believe, should support modest profitability in 2013," said Standard & Poor's credit analyst George Skoufis. In the Dec. 9, 2013, edition of the TCR, Fitch Ratings upgraded the Issuer Default Rating (IDR) of Hovnanian Enterprises to 'B-' from 'CCC'. The upgrade and the Stable Outlook reflects HOV's operating performance year-to-date (YTD), adequate liquidity position, and moderately better prospects for the housing sector during the remainder of this year and in 2014. The TCR reported on Jan. 9, 2014, that Moody's Investors Service raised the Corporate Family Rating of Hovnanian Enterprises, Inc., to B3 from Caa1. The upgrade of the Corporate Family Rating to B3 reflects Hovnanian's improved financial performance including improvement in interest coverage to slightly above 1x and finally turning net income positive for the fiscal year 2013. IBCS MINING: Cash Collateral Hearing Continued Until July 15 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Western District of Virginia, continued until July 15, 2015, at 10:00 a.m., the hearing to consider approval of IBCS Mining, Inc., et al.'s continued use of cash collateral. At the hearing, the Court will also consider the objections filed by creditors Wells Fargo Bank Northwest, N.A., as indenture trustee, Virginia Electric and Power Company, and Branch Banking and Trust Company. The Court has already entered interim orders authorizing IBCS Mining to use the cash collateral of Branch Banking and Trust Company. About IBCS Mining IBCS Mining, Inc., and IBCS Mining, Inc., Kentucky Division, filed Chapter 11 bankruptcy petitions (Bankr. W.D. Va. Case Nos. 14-61215 and 14-61216) on June 27, 2014. The Court on July 8, 2014, authorized the joint administration of the cases. The cases are assigned to Judge Kevin R. Huennekens. IBCS Mining estimated assets and debts of at least $10 million. IBCS Mining Inc. disclosed $6.91 million in assets and $7.28 million in liabilities. Hirschler Fleischer, P.C., serves as the Debtors' counsel. The U.S. Trustee for Region 4 appointed two creditors to serves in an official committee of unsecured creditors. IBCS MINING: Hearing on Plan Outline Continued Until July 15 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Western District of Virginia continued until July 15, 2015, at 10:00 a.m., the hearing to consider approval of the Disclosure Statement explaining IBCS Mining, Inc., et al.'s Joint Plan of Reorganization. The hearing has been continued several times. As reported in the Troubled Company Reporter on Feb. 2, 2015, the Debtors submitted a Joint Plan and an explanatory Disclosure Statement dated Jan. 23, 2015. According to the Disclosure Statement, the Joint Plan for each Debtor is separately funded. The Plan for IBCS will be funded through distributions from IBCS KY to Holders of Interests in IBCS KY Class 5. The Plan of Reorganization for IBCS KY will be funded by cash proceeds from ongoing operations. All general working capital requirements of the Reorganized Debtors on and after the Effective Date will be funded with cash receipts. Under the Plan, the Debtors will treat claims as, among other things: * The claim in IBCS KY 2 Class 2 (Mullins Secured Claim) will be paid through monthly payments. * IBCS KY Class 3 (BB&T Secured Claim) will be paid through monthly payments. Payments to IBCS KY Class 3 will only commence after IBCS KY Class 2 Claims are paid in full. * IBCS KY Class (General Unsecured Claims 4) will be paid through monthly payments. Payments to IBCS KY Class 4 Claims will only commence after IBCS KY Class 2 Claims and IBCS KY Class 3 Claims are paid in full. * IBCS KY Class 5 (Interests) will be paid through monthly payments. Payments to holders of interests in IBCS KY Class 5 will only commence after IBCS KY Class 2 Claims, IBCS KY Class 3 Claims, and IBCS KY Class 4 Claims are paid in full. IBCS Class 2 (Secured Claims) will be paid through distributions by IBCS KY to IBCS KY Class 5 Claims. Payments to IBCS Class 2 Claims will only commence after IBCS Class 1 Claims are paid in full. IBCS Class 3 (General Unsecured Claims) will be paid through distributions by IBCS KY to IBCS KY Class 5 Claims. Payments to IBCS Class 3 Claims will only commence after IBCS Class 1 Claims and IBCS Class 2 Claims are paid in full. Holder of IBCS Class 4 (Interests) will receive no distribution under the Plan on account of the interests. On the Effective Date, all Interests in IBCS KY will be cancelled and discharged and will be of no further force and effect, whether surrendered for cancellation or otherwise. Copies of the Disclosure Statement and Plan are available for free at http://bankrupt.com/misc/IBCS_DS.pdf http://bankrupt.com/misc/IBCS_PLAN.pdf About IBCS Mining IBCS Mining, Inc., and IBCS Mining, Inc., Kentucky Division, filed Chapter 11 bankruptcy petitions (Bankr. W.D. Va. Case Nos. 14-61215 and 14-61216) on June 27, 2014. The Court on July 8, 2014, authorized the joint administration of the cases. The cases are assigned to Judge Kevin R. Huennekens. IBCS Mining estimated assets and debts of at least $10 million. IBCS Mining Inc. disclosed $6.91 million in assets and $7.28 million in liabilities. Hirschler Fleischer, P.C., serves as the Debtors' counsel. The U.S. Trustee for Region 4 appointed two creditors to serves in an official committee of unsecured creditors. INTERNATIONAL BRIDGE: Can Access Cash Collateral on Interim Basis ----------------------------------------------------------------- The Hon. Dale L. Somers of the U.S. Bankruptcy Court for the District of Kansas authorized International Bridge Corporation to use cash collateral on an interim basis. The interim order indicates that the Debtor will tender a monthly payment to Internal Revenue Service ("IRS") in the amount of $2,000 on or before June 1, 2015, and by the first of each month thereafter, and will grant a continuing and replacement lien in accounts receivable created post-petition to IRS. A final hearing is set for June 18, 2015 at 1:30 p.m. in the Kansas City Division of U.S. Bankruptcy Court located at 500 State Avenue, Room 151 in Kansas City, Kansas. As reported in the Troubled Company Reporter on May 12, 2015, the Debtor intends to use cash collateral for miscellaneous operating costs, the payment of income to its employees, payment of attorney's fees, and for payment of the U.S. Trustee's assessments and other expenses in the Ch. 11 proceeding. If allowed to use the cash collateral for its operating needs, the Debtor should not require any additional postpetition financing, nor should it incur further indebtedness during the pendency of the case. The cash collateral will be utilized on an interim, but likely ongoing basis, with extensions to the motion filed every 90 days, or other period as the Court. TOA Corporation ("TOA"), the Government of Guam, the Department of Revenue and Taxation ("Guam") and IRS may claim an interest in the cash collateral. The Debtor owes TOA in the amount of $7,769,779 (of which $629,000 is undisputed, and the remainder is disputed), the IRS the amount of $4,477,161 and Guam in the amount of $4,822,812. On Aug. 2, 2011, the IRS filed a notice of federal tax lien with the register of deeds in Shawnee County, Kansas. On March 12, 2015, Guam filed a notice of tax lien with the District of Guam. TOA may assert an interest in the cash collateral by virtue of a UCC-1 filled with some branch of the Guam Government but the description of the property that TOA claims an interest in does not seem to encompass the cash collateral. The Debtor seeks permission to use cash collateral, only to extent of the account receivable owed by CaPFA Capital Corp. 2010 for the month of April and each month thereafter, to continue its business operations. The Debtor will grant a continuing and replacement lien in accounts receivable created postpetition. However, no further adequate protection will be provided. The Debtor contends that IRS and Guam are currently over-secured based upon the value of its assets and the secured claims as of the Petition Date, and therefore no additional security or value should be required for use of the cash collateral. About Int'l Bridge Corp. International Bridge Corporation, a contractor for government projects in the South Pacific and Guam, sought Chapter 11 protection (Bankr. D. Kan. Case No. 15-20951) in Kansas City on May 7, 2015. Robert Toelkes, the sole shareholder and manager, signed the petition. The Debtor disclosed total assets of $17.4 million and total debts of $27.4 million. The case is assigned to Judge Robert D. Berger. The Debtor tapped Stevens & Brand, LLP, as its counsel. Foulston Siefkin, LLP, serves as the Debtor's special litigation counsel. Robert G. Nath, PLLC, represents the Debtor as special tax counsel. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due by Sept. 4, 2015. K&K INC: Case Summary & Largest Unsecured Creditor -------------------------------------------------- Debtor: K&K, Inc. 6413 N. Park Avenue Kansas City, MO 64118 Case No.: 15-41689 Chapter 11 Petition Date: June 10, 2015 Court: United States Bankruptcy Court Western District of Missouri (Kansas City) Judge: Hon. Cynthia A. Norton Debtor's Counsel: Erlene W. Krigel, Esq. KRIGEL & KRIGEL, P.C. 4550 Belleview Ave. Kansas City, MO 64111 Tel: 816-756-5800 Fax: 816-756-1999 Email: ekrigel@krigelandkrigel.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Mia Jamison, president. The Debtor listed Mia Jamison as its largest unsecured creditor holding an unknown amount of claim. A copy of the petition is available for free at: http://bankrupt.com/misc/mowb15-41689.pdf LANGUAGE LINE: S&P Raises CCR to 'B', Outlook Stable ---------------------------------------------------- Standard & Poor's Ratings Services said that it raised its ratings, including its corporate credit rating, on Monterey, Calif.-based interpretation service provider Language Line Holdings LLC to 'B' from 'B-'. The outlook is stable. At the same time, S&P assigned its 'B' issue-level rating, with a recovery rating of '3' to the company's proposed $530 million senior secured first-lien credit facility. The '3' recovery rating indicates S&P's expectation for a meaningful recovery (50%-70%; upper half of the range) of principal in the event of a payment default. The senior secured first-lien credit facility includes a $50 million revolving credit facility and a $480 million senior secured first-lien term loan. S&P also assigned its 'CCC+' issue-level rating, with a recovery rating of '6' to the company's proposed $160 million senior secured second-lien term loan. The '6' recovery rating indicates S&P's expectation for negligible recovery (0%-10%) of principal in the event of a payment default. S&P will withdraw its ratings on the existing senior secured first-lien credit facility and senior secured second-lien term loan, both due 2016, when the debt have been repaid. "The upgrade is based on Language Line's improved margin of compliance (greater than 15%) with financial covenants under the proposed refinancing terms," said Standard & Poor's credit analyst Heidi Zhang. The company's EBITDA cushion of compliance was less than 5% as of March 31, 2015, and would have been subject to a further covenant step-down to 4.5x on Sept. 30, 2015. The stable outlook reflects S&P's expectation that the company will maintain "adequate" liquidity, with at least a 15% EBITDA margin of compliance against its financial covenants and that leverage will remain above 5x over the next year. The stable outlook reflects S&P's expectation that the company will maintain "adequate" liquidity, with at least a 15% EBITDA margin of compliance against its financial covenants, and that leverage will remain above 5x over the next year. S&P could consider lowering the rating if the company's EBITDA margin of covenant compliance decreases to less than 15%, which would likely result from declines in OPI minutes and pricing or large debt-financed acquisitions. Although unlikely over the next year, S&P could raise the rating if it is convinced that company can maintain leverage under 5x on a sustained basis. This would likely require continued revenue and earnings growth, meaningful debt repayment, and a commitment towards a less aggressive financial policy. LANTHEUS MEDICAL: Proposes $365M Loan Facility with Credit Suisse ----------------------------------------------------------------- Lantheus Medical Imaging, Inc., commenced the marketing process for a proposed new senior secured term loan facility in an amount of up to $365 million with Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent, according to a Form 8-K report filed with the Securities and Exchange Commission. The net proceeds of the new term facility, together with cash on hand and the net proceeds of a proposed initial public offering of common stock of the Company's parent company, would be used to redeem in full the Company's outstanding $400 million aggregate principal amount of 9.750% Senior Notes due 2017, to repay amounts outstanding under its revolving credit facility and to pay related premiums, interest and expenses. The consummation of the new term loan facility will be conditioned upon the closing of the initial public offering. There can be no assurance that the Company will enter into the new credit facility or that the initial public offering will occur. About Lantheus Medical Lantheus Medical Imaging, Inc., a wholly-owned operating subsidiary of parent company, Lantheus MI Intermediate, Inc., is a global leader in developing, manufacturing, selling and distributing innovative diagnostic imaging agents. LMI provides a broad portfolio of products, which are primarily used for the diagnosis of cardiovascular diseases. LMI's key products include the echocardiography contrast agent DEFINITY(R) Vial for (Perflutren Lipid Microsphere) Injectable Suspension; TechneLite(R) (Technetium Tc99m Generator), a technetium-based generator that provides the essential medical isotope used in nuclear medicine procedures; and Xenon (Xenon Xe 133 Gas), an inhaled radiopharmaceutical imaging agent used to evaluate pulmonary function and for imaging the lungs. Lantheus Medical reported a net loss of $1.16 million in 2014, a net loss of $61.7 million in 2013 and a net loss of $42 million in 2012. As of March 31, 2015, the Company had $249 million in total assets, $489 million in total liabilities, and a $241 million total stockholders' deficit. * * * As reported by the TCR on July 1, 2014, Moody's Investors Service upgraded the ratings of Lantheus including the Corporate Family Rating to 'Caa1' from 'Caa2', the Probability of Default Rating to Caa1-PD from Caa2-PD and the senior unsecured rating to 'Caa1 (LGD4)' from 'Caa2 (LGD4)'. "The upgrade reflects our outlook for continuing earnings improvement driven by rising DEFINITY sales and the impact of ongoing cost reductions, while the positive outlook considers the potential for deleveraging pending a successful IPO and further resolution of supply issues," stated Michael Levesque, Senior Vice President. In the Nov. 6, 2013, edition of the TCR, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Lantheus Medical Imaging Inc. to 'B-' from 'B'. The outlook is negative. LERIN HILLS: Proposes DIP Financing From Putnam ----------------------------------------------- MA Lerin Hills Holder, LP, LH Devco, Inc., and Lerin Hills Utility Inc., which are being managed by a receiver, are asking the U.S. Bankruptcy Court for the Western District of Texas to enter interim and final orders authorizing them to obtain senior secured superpriority term loans from existing lender Putnam Bridge Funding III, LLC. Deborah D. Williamson, Esq., at Dykema Cox Smith, relates that the Debtors' property -- which produces no cash flow -- has run out of cash and remains materially unfinished. The property has no access to water, and home builders have refused to close building lot purchases, thus denying access to the Debtors' sole source of revenue for the property. The Debtors believe the interests of their creditors can best be achieved through a sale of the property. The Debtors require DIP financing from Putnam to provide them with the liquidity to maintain their operations throughout the bankruptcy case sand to fund certain amounts necessary to propose and consummate a confirmable plan. The salient terms of the DIP financing are: -- Security: The Debtors will grant Putnam a valid and perfected security interest assets of the Debtors, and the DIP obligations will constitute allowed administrative claims equal in priority to a claim under 11 U.S.C. Sec. 364(c)(1). -- Interest rate: The interest rate will be 13% per annum. -- Sec. 506(c) Waiver: The Debtors will waive any and all rights to surcharge the collateral. -- Carve-Out: The liens and superpriority claims granted to the DIP Lender will be subject to a carve-out of the allowed fees and expenses of professionals, provided that allowed administrative expenses will not exceed $1 million. A copy of the DIP Financing Motion is available for free at: http://bankrupt.com/misc/Lerin_H_M_Financing.pdf About Lerin Hills MA Lerin Hills Holder, LP, LH Devco, Inc., and Lerin Hills Utility Inc., own 867 acres of real property known as the Lerin Hills residential real estate development located in Boerne, Texas. The Lerin Hills project currently produces no cash flow, has run out of cash and remains materially unfinished. In December 2014, the companies defaulted on debt to Putnam Funding III, LLC, which claims to be owed not less than $41.3 million as of the Petition Date. On April 7, 2015, at the behest of Putnam, the 216th Judicial District Court in Kendall County, Texas, appointed Andrew S. Cohen as receiver for the assets. On June 8, 2015, the Receiver filed Chapter 11 bankruptcy petitions for MA Lerin Hills and its two affiliates (Bankr. W.D. Tex. Case Nos. 15-51424 to 15-51426) in San Antonio, Texas. The Receiver immediately filed a Joint Chapter 11 Plan of Liquidating Plan for the Debtors. The Plan is being sponsored by Putnam. The Debtors tapped Cox Smith Matthews Incorporated as attorneys. Putnam tapped Akin Gump Strauss Hauer & Feld LLP as counsel. LERIN HILLS: Seeks to Reject Several Contracts ---------------------------------------------- MA Lerin Hills Holder, LP, LH Devco, Inc., and Lerin Hills Utility Inc., which are being managed by a receiver, are parties to contracts that no longer provide any benefits of the Debtors. Accordingly, the Debtors ask the U.S. Bankruptcy Court for the Western District of Texas for approval to reject certain contracts. A list of the rejected contracts is available for free at http://bankrupt.com/misc/Lerin_H_M_Financing.pdf About Lerin Hills MA Lerin Hills Holder, LP, LH Devco, Inc., and Lerin Hills Utility Inc., own 867 acres of real property known as the Lerin Hills residential real estate development located in Boerne, Texas. The Lerin Hills project currently produces no cash flow, has run out of cash and remains materially unfinished. In December 2014, the companies defaulted on debt to Putnam Funding III, LLC, which claims to be owed not less than $41.3 million as of the Petition Date. On April 7, 2015, at the behest of Putnam, the 216th Judicial District Court in Kendall County, Texas, appointed Andrew S. Cohen as receiver for the assets. On June 8, 2015, the Receiver filed Chapter 11 bankruptcy petitions for MA Lerin Hills and its two affiliates (Bankr. W.D. Tex. Case Nos. 15-51424 to 15-51426) in San Antonio, Texas. The Receiver immediately filed a Joint Chapter 11 Plan of Liquidating Plan for the Debtors. The Plan is being sponsored by Putnam. The Debtors tapped Cox Smith Matthews Incorporated as attorneys. Putnam tapped Akin Gump Strauss Hauer & Feld LLP as counsel. LERIN HILLS: Wants Notice of MUD Actions ---------------------------------------- MA Lerin Hills Holder, LP, LH Devco, Inc., and Lerin Hills Utility Inc., which are being managed by a receiver, are asking the U.S. Bankruptcy Court for the Western District of Texas to enter an order requiring that the Lerin Hills Municipal Utility District ("MUD") or its directors, as applicable, give the Debtors advanced notice of any proposed action to be taken by the MUD, or by any of its directors related to or affecting the operation, development or value of the Debtors' property or other governance of the MUD. Deborah D. Williamson, Esq., at Dykema Cox Smith, relates that a fundamental aspect of the development of the Debtors' primary asset and fundamental purpose for exiting -- the Lerin Hills residential development -- is the need to bring full water and wastewater services to the Debtor's property. Without these basic utilities, the property simply cannot be developed: lots cannot be sold, homes cannot be built, revenue cannot be generated, and the Debtors cannot repay their prepetition secured lender, Putnam Bridge Funding III, LLC, or their other creditors. The procurement of water and sewer facilities, then, is a vital milestone that must be met as soon as possible. In accordance with Texas law, the MUD was formed to ensure that any such water and sewer facilities are procured and to facilitate a means by which the Debtors ultimately can be reimbursed for the significant costs necessary to establish such systems. Ms. Williamson avers that the interests of the MUD and the Debtors therefore are closely aligned, and the operation of the MUD is a key component to the successful restructuring of the Debtors' balance sheet development of the property. Because the success of the Debtors' efforts are so closely intertwined with the MUD, it is vital for the Debtors to be aware of any proposed action to be taken by the MUD, or by any of the MUD directors, which directly or indirectly could impact the property, Ms. Williamson tells the Court. About Lerin Hills MA Lerin Hills Holder, LP, LH Devco, Inc., and Lerin Hills Utility Inc., own 867 acres of real property known as the Lerin Hills residential real estate development located in Boerne, Texas. The Lerin Hills project currently produces no cash flow, has run out of cash and remains materially unfinished. In December 2014, the companies defaulted on debt to Putnam Funding III, LLC, which claims to be owed not less than $41.3 million as of the Petition Date. On April 7, 2015, at the behest of Putnam, the 216th Judicial District Court in Kendall County, Texas, appointed Andrew S. Cohen as receiver for the assets. On June 8, 2015, the Receiver filed Chapter 11 bankruptcy petitions for MA Lerin Hills and its two affiliates (Bankr. W.D. Tex. Case Nos. 15-51424 to 15-51426) in San Antonio, Texas. The Receiver immediately filed a Joint Chapter 11 Plan of Liquidating Plan for the Debtors. The Plan is being sponsored by Putnam. The Debtors tapped Cox Smith Matthews Incorporated as attorneys. Putnam tapped Akin Gump Strauss Hauer & Feld LLP as counsel. LONESTAR GEOPHYSICAL: Amends Application to Hire McAfee & Taft -------------------------------------------------------------- Gerod Black, chief financial officer for Lonestar Geophysical Surveys, LLC, asks, in an amended application, the U.S. Bankruptcy Court for the Western District of Oklahoma for permission to employ McAfee & Taft A Professional Corporation, as counsel. Mr. Black disclosed that McAfee & Taft has in the past represented Frontier State Bank, the primary secured creditor of LSGS. McAfee & Taft provided advice regarding Frontier State Bank's mortgage products during 2010 and 2011. The attorney who provided the advice is no longer employed by McAfee & Taft. The principal attorneys expected to represent LSGS in the matter and their current hourly rates are: Ross A. Plourde $325 Steven W. Bugg $310 In addition, other attorneys and paraprofessionals may from time to time provide services to LSGS in connection with the bankruptcy proceedings. The range of hourly rates for McAfee & Taft's attorneys and legal assistants are: Partners $225 - $550 Associates $165 - $275 Legal Assistants $55 - $135 As reported in the Troubled Company Reporter on May 29, 2015, McAfee & Taft may also seek reimbursement or payment of charges for services and expenses customarily invoiced by law firms in addition to fees for legal services performed in connection with its engagement. Ross A. Plourde, Esq., a member of the law firm McAfee & Taft, A Professional Corporation, in Oklahoma City, Oklahoma, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Additionally, from time to time beginning in 1991 McAfee & Taft provided bank regulatory advice to Frontier State Bank, Mr. Plourde further discloses. Any such services terminated prior to 2006, he says. Lastly, McAfee & Taft currently represents another bank (which is not a creditor of the Debtor and has no relationship with the Debtor), one of the shareholders of which is the shareholder of Frontier State Bank, with respect to the sale of that bank, Mr. Plourde further discloses. About Lonestar Geophysical Lonestar Geophysical Surveys, LLC, which acquires seismic data and provides services and products to the oil and gas industry, sought bankruptcy protection (Bankr. W.D. Okla. Case No. 15-11872) in Oklahoma City on May 18, 2015. The Debtor tapped Ross A. Plourde, Esq., at McAfee & Taft, as counsel. Judge Hon. Sarah A. Hall is assigned to the case. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due Sept. 15, 2015. Governmental proofs of claim are due Nov. 16, 2015. LUMBERMENS UNDERWRITING: Put Into Rehabilitation ------------------------------------------------ A judge has placed Lumbermen's Underwriting Alliance into rehabilitation and turned it over to regulators at the Missouri Department of Insurance. Department Director John M. Huff has been named receiver of the LUA, which allows the Director, as receiver, to take over operations of the company. LUA faced financial difficulty when one of its largest professional employer organization insureds, TS Employment, failed to fully fund collateral obligations and filed Chapter 11 bankruptcy. LUA, through its attorney-in-fact, U.S. Epperson, consented to the rehabilitation judgment. Rehabilitation is a legal step taken by the Court to protect policyholders by preserving the company's assets. The Director as the rehabilitator assumes management of the company, attempts to correct existing problems, continues operations, maintains policyholder accounting and develops a plan of rehabilitation or petitions the Court for liquidation. With a rehabilitation, the Director's priority will be to process existing claims. Policies will continue pursuant to their terms and conditions. Policyholders must continue making their premium payments to keep their insurance coverage intact. Payments should continue to be sent to LUA. "Putting Lumbermen's into rehabilitation allows us to ensure the company's assets are handled properly, so that claims are paid as fully as possible," said Mr. Huff. About the Missouri Department of Insurance, Financial Institutions & Professional Registration The Missouri Department of Insurance, Financial Institutions and Professional Registration is responsible for consumer protection through the regulation of financial industries and professionals. The department's seven divisions work to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products. About Lumbermen's Underwriting Lumbermen's Underwriting Alliance -- www.lumbermensunderwriting.com/ -- a Florida-based insurance company. It specializes in providing property and casualty insurance to the forest products industry, generally consisting of lumber and sawmill operations. Over time, LUA expanded its offerings, and therefore its membership, to a broader range of industries and insurance coverages. By 2014, LUA was providing property allied lines, inland marine, earthquake, and workers' compensation coverage to assisted living facilities and the food processing industry, as well as the forest products industry. LUA also issued large deductible workers' compensation plans for professional employer organizations. LUA had approximately 3,000 policyholders and 6,080 open workers compensation claims with the largest number of claims being in the State of California. MARTINSBURG PIKE: Case Summary & 4 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Martinsburg Pike Associates, LLC 4150 Martinsburg Pike P.O. Box 128 Clear Brook, VA 22624 Case No.: 15-50598 Nature of Business: Mechanical contractor Chapter 11 Petition Date: June 10, 2015 Court: United States Bankruptcy Court Western District of Virginia (Harrisonburg) Judge: Hon. Rebecca B. Connelly Debtor's Counsel: Frank B. Bredimus, Esq. FRANK BREDIMUS P. O. Box 535 Hamilton, VA 20159 Tel: 571-344-2278 Email: Fbredimus@aol.com Total Assets: $3.5 million Total Liabilities: $2.3 million The petition was signed by Thomas J. Dick, vice president. A list of the Debtor's four largest unsecured creditors is available for free at http://bankrupt.com/misc/vawb15-50598.pdf MDC PARTNERS: S&P Affirms 'B' CCR, Outlook Remains Stable --------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'B' corporate credit rating on New York City-based MDC Partners Inc. The rating outlook remains stable. At the same time, S&P raised its issue-level rating on the company's senior unsecured debt to 'B' from 'B-' and revised the recovery rating to '4' from '5'. The '4' recovery ratings indicates S&P's expectations for average recovery (30%-50%; upper half of the range) of principal in the event of a payment default. The revised business risk profile assessment reflects the company's healthy business prospects, greater scale, and improved margins, in S&P's view, which are on par with those of its much larger ad agency peers. The company has consistently reported organic revenue growth rates above those of its ad agency peers since 2008, and S&P expects this trend to continue. As a result, S&P revised its business risk profile to "fair" from "weak," according to its criteria. MDC is a provider of marketing services primarily in the U.S. (which represented 81% of revenue in 2014), with a presence in Canada (12%), and other countries (7%). The company's subsidiaries provide a comprehensive range of marketing communications and consulting services. Although MDC is much smaller than its global ad agency peers, the company has a well-positioned, defensible position within the advertising industry. A number of MDC's key operating subsidiaries, such as Crispin Porter + Bogusky, 72andSunny, and Anomaly, have strong creative reputations that differentiate the company from its larger peers. In addition, the company has grown organically and through acquisitions, and its strong digital capabilities positions it well to meet the growing demand for nontraditional advertising. These strengths are offset by the company's relatively small agency network compared to that of the larger global ad agencies, its limited global presence, and its smaller exposure to higher-margin media buying business. "The stable outlook is based on our expectation that MDC will maintain adjusted leverage in the 5x area over the next year," said Standard & Poor's credit analyst Naveen Sarma. "We view an upgrade as more likely than a downgrade during that time." S&P could lower the rating on MDC if the SEC issues result in a loss of clients, management changes, or material financial changes that hurt the company's credit measures or operating performance. S&P would then revise its business risk assessment to "weak" from "fair." S&P could raise the rating if the SEC issues clear with no material impact on the company or its credit quality (in which case S&P could revise the management and governance assessment to "fair" from "weak"), or if the company lowers and commits to maintaining adjusted leverage below 5x. MINT RESTAURANT: Remains Open; IRS Is Among Largest Creditors ------------------------------------------------------------- Michael Simmons at Madison County Journal reports that Mint the Restaurant remains open despite filing for Chapter 11 bankruptcy protection. As reported by the Troubled Company Reporter on June 4, 2015, Mint Restaurant, LLC, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Miss. Case No. 15-01204) on April 10, 2015. R. Michael Bolen, Esq., at Hood & Bolen, PLLC, serves as the Company's bankruptcy counsel. Judge Edward Ellington presides over the case. County Journal relates that the Restaurant's yearly income went from $1.8 million in 2013 to $1.4 million in 2014, and to $345,000 as of the Petition Date. Court documents show that the Restaurant has up to 49 creditors, and that it listed $618,400 in total liabilities, with half of that as unsecured non-priority claims. County Journal adds that the Restaurant listed $59,000 in total assets. The report states that the largest creditors include the IRS, with debts reported of $185,000, and the Mississippi Department of Revenue, with debts reported at $125,000. Mint Restaurant, LLC, located at the Renaissance in Ridgeland, Mississippi, is owned by Patrick Kelly. It was formed in 2007. MUSCLEPHARM CORPORATION: Shareholders Raise Liquidity Concerns -------------------------------------------------------------- Wynnefield Capital Management, LLC and its affiliates, significant shareholders in MusclePharm Corporation, sent a letter to the Company's Board of Directors requesting that the Board take immediate action to address their serious concerns with the Company's deficiencies in the areas of liquidity, corporate governance, and transparency. Despite the Company's positive statements regarding its cash position and liquidity, the Wynnefield Reporting Persons believe that indicators strongly suggest that the true picture regarding liquidity may be very different. They add that the Company could be out of compliance with certain financial covenants under its credit facility. The Wynnefield Reporting Persons are also troubled by the Company's May 8, 2015, amendments to its By-laws, because of both the new hurdles and burdens they place on shareholder suffrage; especially when considered in light of the Company's recent erratic corporate governance events. The By-laws were amended: i) to require that shareholders of the Company requesting a special meeting provide, in their request to the Company, certain specified information and set forth other requirements regarding delivery of that request; ii) to require that shareholders intending to act by written consent request a record date from the Company for that action, which request must include certain specified information and set forth other requirements regarding the delivery of written consents; iii) to require certain shareholder disclosure requirements regarding advance notice of shareholder proposals and shareholder nominations; iv) to provide that only the Board can fill vacancies of the Board; v) to provide that directors may be removed by a two-thirds (as opposed to majority) vote of the shareholders, as contemplated by NRS 78.335; and vi) to provide that that any person acquiring equity in the Company will be deemed to have notice of and consented to Article VII, Section 5 of the By-laws, relating to choice of forum where to bring disputes. "We believe these provisions, which are viewed with disfavor by ISS, are nothing more than a thinly veiled attempt to entrench management and diminish their accountability to the shareholders of the Company," they said. The Wynnefield Reporting Persons believe the fiduciary duties of the Company's directors require the Board to take immediate action to address these issues and call upon the Board to take the following action: 1) Issue an immediate press release correcting any material misstatements regarding the Company's current liquidity and cash flow position. 2) Announce the opening of a window for shareholder submission of nominees for election to the Company's Board, including nominees to fill the newly created seventh board seat, in accordance with Nevada corporate law. 3) Provide a full explanation surrounding the mass resignation and replacement of the three independent directors of the Company. 4) Engage a qualified investment bank to assist management and the Board to fully explore all strategic opportunities to increase shareholder value, including auction of the Company. About MusclePharm Headquartered in Denver, Colorado, MusclePharm Corporation (OTC BB: MSLP) -- http://www.muslepharm.com/-- is a healthy life- style company that develops and manufactures a full line of National Science Foundation approved nutritional supplements that are 100 percent free of banned substances. MusclePharm is sold in over 120 countries and available in over 5,000 U.S. retail outlets, including GNC and Vitamin Shoppe. MusclePharm products are also sold in over 100 online stores, including bodybuilding.com, Amazon.com and Vitacost.com. MusclePharm Corporation reported a net loss of $13.8 million in 2014, a net loss of $17.7 million in 2013 and a net loss of $19 million in 2012. As of March 31, 2015, the Company had $67.9 million in total assets, $46.9 million in total liabilities, and $20.96 million in total stockholders' equity. NATROL INC: $232,000 in Claims Switched Hands in April 2015 ----------------------------------------------------------- In the Chapter 11 cases of LEAF123 Inc. fka Natrol Inc., et al., two claims switched hands on April 24, 2015: Transferee Transferor Claim Amount ---------- ---------- ------------ Core Opportunities II Core Opportunities $4,724.00 Master Fund, LP Fund, LP Core Opportunities II Core Opportunities $226,813.00 Master Fund, LP Qualified Master Fund, LP About Natrol, Inc. Headquartered in Chatsworth, Calif., Natrol, Inc., sold herbs and botanicals, multivitamins, specialty and sports nutrition supplements made to support health and wellness throughout all ages and stages of life. Natrol, Inc., was a wholly owned subsidiary of Plethico Pharmaceuticals Limited (BSE: 532739. BO: PLETHICO). Natrol, Inc., and its six affiliates sought bankruptcy protection (Bankr. D. Del. Case No. 14-11446) on June 11, 2014. The case is assigned to Judge Brendan Linehan Shannon. The Debtors are represented by Robert A. Klyman, Esq., and Samuel A. Newman, Esq., at Gibson, Dunn & Crutcher LLP, in Los Angeles, California; and Michael R. Nestor, Esq., Maris J. Kandestin, Esq., and Ian J. Bambrick, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. The Debtors' Claims and Noticing Agent is Epiq Systems INC. The Debtors requested that the Court approve the employment of (i) Jeffrey C. Perea of the firm Conway MacKenzie Management Services, LLC as chief financial officer and for CMS to provide temporary employees to assist Mr. Perea in carrying out his duties; (ii) Stephen P. Milner of the firm Squar, Milner, Peterson, Miranda & Williamson LLP as chief restructuring officer and for CMS to provide temporary employees to assist Mr. Milner in carrying out his duties; (iv) BDO USA, LLP as auditor; (v) TaxGroup Partners as tax services provider. The Official Committee Of Unsecured Creditors tapped Otterbourg P.C. as lead counsel; Pepper Hamilton LLP as Delaware counsel; and CMAG as financial advisors. On Nov. 10, 2014, the Debtors held an auction for the sale of the assets, and Aurobindo Pharma USA Inc. emerged as the successful bidder. The Court approved the sale and the sale closed on Dec. 4, 2014. The Debtors changed their names to Leaf123, Inc., following the sale. * * * The Troubled Company Reporter, on Feb. 23, 2015, reported that Leaf123, Inc., fka Natrol Inc., and its debtor affiliates filed a Chapter 11 plan of liquidation, pursuant to which tax refunds and credits, all shares of capital stock or other Equity Interests in Natrol UK, all Avoidance Actions not otherwise purchased by the Buyer under the Purchase Agreement, the proceeds from prepetition litigation, the proceeds from the Sale Transaction, and certain other assets are being pooled and distributed to persons or entities holding allowed claims in accordance with the priorities of the Bankruptcy Code. Judge Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware on April 2, 2015, approved the disclosure statement explaining the First Amended Joint Liquidating Plan of Leaf123, Inc., fka Natrol, Inc., and its debtor affiliates. A full-text copy of the Disclosure Statement dated April 2, 2015, is available at http://bankrupt.com/misc/NATROLds0402.pdf NATROL INC: Kochhar Okayed as Indian Counsel Effective April 21 --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware entered a revised order authorizing Leaf123, Inc., formerly known as Natrol, Inc., et al., to employ Kochhar & Co., as Indian counsel, nunc pro tunc to April 21, 2015. The Court previously authorized the retention of Kochhar & Co. But subsequent to the entry of the order, the Debtors realized that the application inadvertently failed to request that the retention be approved nunc pro tunc to April 21, 2015. In light of this, the Debtors submitted a revised proposed order providing that the retention is effective as of April 21, 2015. The Debtors reached out to the U.S. Trustee, explained the issue, and provided the U.S. Trustee with a copy of the revised order well as the black-line. The U.S. Trustee has informed the Debtors that it has no objection to entry of the revised order without further notice or hearing. To the best of the Debtor's knowledge Kochhar does not hold nor represent an interest adverse to the Debtors' estate or of any class of creditors. About Natrol, Inc. Headquartered in Chatsworth, Calif., Natrol, Inc., sold herbs and botanicals, multivitamins, specialty and sports nutrition supplements made to support health and wellness throughout all ages and stages of life. Natrol, Inc., was a wholly owned subsidiary of Plethico Pharmaceuticals Limited (BSE: 532739. BO: PLETHICO). Natrol, Inc., and its six affiliates sought bankruptcy protection (Bankr. D. Del. Case No. 14-11446) on June 11, 2014. The case is assigned to Judge Brendan Linehan Shannon. The Debtors are represented by Robert A. Klyman, Esq., and Samuel A. Newman, Esq., at Gibson, Dunn & Crutcher LLP, in Los Angeles, California; and Michael R. Nestor, Esq., Maris J. Kandestin, Esq., and Ian J. Bambrick, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. The Debtors' Claims and Noticing Agent is Epiq Systems INC. The Debtors requested that the Court approve the employment of (i) Jeffrey C. Perea of the firm Conway MacKenzie Management Services, LLC as chief financial officer and for CMS to provide temporary employees to assist Mr. Perea in carrying out his duties; (ii) Stephen P. Milner of the firm Squar, Milner, Peterson, Miranda & Williamson LLP as chief restructuring officer and for CMS to provide temporary employees to assist Mr. Milner in carrying out his duties; (iv) BDO USA, LLP as auditor; (v) TaxGroup Partners as tax services provider. The Official Committee Of Unsecured Creditors tapped Otterbourg P.C. as lead counsel; Pepper Hamilton LLP as Delaware counsel; and CMAG as financial advisors. * * * Aurobindo Pharma USA Inc., completed in December 2014 the purchase of the assets for $132 million cash plus assumption of specified debt. Under a settlement between Natrol and the creditors' committee, secured lender Cerberus Business Finance LLC was paid in full from the proceeds of the sale. The Debtors changed their names to Leaf123, Inc., et al., following the sale. Leaf123, Inc., f/k/a Natrol Inc., and its debtor affiliates filed a liquidating Chapter 11 plan designed to pay general unsecured creditors in full, with interest. NEONODE INC: Stockholders Reelect 2 Directors --------------------------------------------- Neonode, Inc., held its annual meeting of stockholders on June 8, 2015, at which the stockholders: 1. reelected Per Bystedt to the Board of Directors for a three year term; 2. reelected Thomas Eriksson to the Board of Directors for a three year term; 3. approved, on an advisory basis, the compensation of executive officers; 4. approved the 2015 Stock Incentive Plan; and 5. ratified the appointment of KMJ Corbin & Company LLC to serve as the Company's independent auditors for the year ended Dec. 31, 2015. About Neonode Inc. Lafayette, Calif.-based Neonode Inc. (OTC BB: NEON) -- http://www.neonode.com/-- provides optical touch screen solutions for hand-held and small to midsize devices. Neonode reported a net loss of $14.2 million in 2014, a net loss of $13.08 million in 2013 and a net loss of $9.28 million in 2012. NET ELEMENT: Registers 53.6 Million Shares for Resale ----------------------------------------------------- Net Element, Inc. filed with the Securities and Exchange Commission a Form S-3 registration statement relating to the resale, from time to time, in one or more offerings, by Candlewood Special Situations Master Fund, Ltd., CWD OC 522 Master Fund, Ltd., Flagler Master Fund SPC Ltd. - Class A Portfolio and Tenor Special Situations Fund LP of up to 53,600,000 shares of Common Stock of the Company. The Company's Common Stock is listed on The NASDAQ Capital Market under the symbol "NETE." On June 8, 2015, the last reported price of a share of the Company's Common Stock on The NASDAQ Capital Market was $0.63. A full-text copy of the preliminary prospectus is available at: http://is.gd/3ykhz4 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, $10.3 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. NORTHWEST BANCORP: Oct. 26 Set as Bar Date for Governmental Units ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois has established Oct. 26, 2015, as the deadline for governmental units to file prepetition claims against Northwest Bancorporation of Illinois, Inc. The Court also set May 29, 2015, as the general deadline for all claimants, other than governmental units, to file prepetition claims. About Northwest Bancorporation Northwest Bancorporation of Illinois, Inc., formerly known as Hershenhorn Bancorporation, Inc., is a bank holding company that owns 100 percent of the outstanding shares of First Bank and Trust Company of Illinois, a single-branch bank in Palatine, Illinois. Approximately 90 percent of Northwest Bancorporation's equity is owned by Robert Hershenhorn and his family. Northwest Bancorporation commenced a Chapter 11 bankruptcy case (Bankr. N.D. Ill. Case No. 15-15245) in Chicago, Illinois, on April 29, 2015. The case is assigned to Judge Carol A. Doyle. The Debtor tapped Kirkland & Ellis LLP as counsel, and River Branch Capital LLC as financial advisor. The Debtor disclosed $20.3 million in assets and $51.3 million in liabilities as of the Chapter 11 filing. Northwest Bancorporation won approval from the U.S. Bankruptcy Court of its Prepackaged Chapter 11 Plan of Reorganization. Judge Carol A. Doyle on May 21, 2015, entered an order confirming the Prepackaged Plan. PACIFIC STEEL: Snow And Galgiani Sells $8.9K Claim to Sonar Credit ------------------------------------------------------------------ In the Chapter 11 cases of Pacific Steel Casting Company, nka Second Street Properties, et al., one claim switched hands on April 9, 2015: Transferee Transferor Claim Amount ---------- ---------- ------------ Sonar Credit Partners Snow And Galgiani Company $8,884.30 III, LLC About Pacific Steel Casting, Berkeley Properties Pacific Steel Casting Company and Berkeley Properties, LLC, separately filed Chapter 11 bankruptcy petitions (Bankr. N.D. Cal. Case Nos. 14-41045 and 14-41048) on March 10, 2014. Pacific Steel's petition was signed by Charles H. Bridges, Jr., chief financial officer and director. Michael W. Malter, Esq., at Binder & Malter, LLP serves as the Debtors' counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims, noticing and balloting agent. Burr Pilger Mayer, a certified public accounting firm, serves as financial consultants. Pacific Steel makes carbon, low-alloy and stainless steel castings for U.S. and international customers, largely for heavy-duty trucks and construction equipment. Tracy Hope Davis, the United States Trustee for Region 17, appointed seven creditors to serve on the Official Committee of Unsecured Creditors. The Committee is represented by Ori Katz, Esq., and Michael M. Lauter, Esq., at Sheppard, Mullin, Richter & Hampton LLP. The Debtors in July 2014 won court approval to sell their fourth-generation family-owned steel foundry for $11.3 million cash plus assumption of specified liabilities to Speyside Fund LLC. Bankruptcy Judge Roger L. Efremsky authorized the Debtors to revise case caption to reflect the name change after the sale of assets. The case caption now reflects: Second Street Properties, and Berkeley Properties, LLC. The Debtors stated that the assets sold included the trade name "Pacific Steel Casting Company" and the commonly used abbreviation and trademark "PSC". The Debtors agreed with the buyer that the Debtors would stop using that name immediately after the closing. PELICAN CAY: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Pelican Cay Harbor LLC 299 Morris Avenue Key Largo, FL 33037 Case No.: 15-20557 Chapter 11 Petition Date: June 10, 2015 Court: United States Bankruptcy Court Southern District of Florida (Miami) Judge: Hon. Laurel M Isicoff Debtor's Counsel: Joel M. Aresty, Esq. JOEL M. ARESTY P.A. 309 1st Ave S Tierra Verde, FL 33715 Tel: 305.899.9876 Fax: 305.723.7893 Email: aresty@mac.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Suzan Wiese, authorized representative. A list of the Debtor's three largest unsecured creditors is available for free at http://bankrupt.com/misc/flsb15-20557.pdf PHILLIPS INVESTMENTS: Plan Filing Date Extended to July 31 ---------------------------------------------------------- Judge Mary Grace Diehl of the U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division, extended the period by which Phillips Investments, LLC, has exclusive right to file a Chapter 11 plan through and including July 31, 2015, and the period by which the Debtor has exclusive right to solicit acceptances of the plan through and including Sept. 29, 2015. In support of its extension request, the Debtor explained that it is attempting to negotiate either a sale of its remaining real estate or a refinancing of its indebtedness to its secured creditor. The Debtor said it believes it is close to achieving at least one of these two goals, subject to the approval of the Court. The secured creditor agreed that the Debtor extend the use of cash collateral through July 31, 2015. If the exclusivity period were to terminate before that date, the termination would constitute a default under the provisions of the cash collateral order, the Debtor told the Court. The Debtor is represented by: J. Robert Williamson, Esq. J. Hayden Kepner, Jr., Esq. Ashley Reynolds Ray, Esq. SCROGGINS & WILLIAMSON, P.C. 1500 Candler Building 127 Peachtree Street, NE Atlanta, GA 30303 Tel: (404) 893-3880 Fax: (404) 893-3886 Email: rwilliamson@swlawfirm.com hkepner@swlawfirm.com aray@swlawfirm.com About Phillips Investments Phillips Investments, LLC, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ga. Case No. 14-61444) on June 11, 2014. Ly Phillips signed the petition as managing member. Phillips Investments owns several parcels of improved commercial real estate from which it operates two retail shopping centers. The Debtor disclosed $29,558,424 in assets and $28,667,234 in liabilities as of the Chapter 11 filing. Scroggins & Williamson, P.C., serves as the Debtor's counsel. Judge Mary Grace Diehl presides over the case. QUICKSILVER RESOURCES: Incurs $116-Mil. Net Loss for Q1 ------------------------------------------------------- Quicksilver Resources Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $116 million on $105 million of total revenue for the three months ended March 31, 2015, compared with a net loss of $58.8 million on $91.8 million of total revenue for the same period in 2014. The Company's balance sheet at March 31, 2015, showed $1.08 billion in total assets, $2.35 billion in total liabilities, and a stockholders' deficit of $1.26 billion. As a result of sustained losses and the Company's Chapter 11 proceedings, the realization of assets and satisfaction of liabilities, without substantial adjustments and/or changes in ownership, are subject to uncertainty. Given the uncertainty surrounding its Chapter 11 proceedings, there is substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/Jarc5C About Quicksilver Resources Quicksilver Resources Inc. (OTCQB: KWKA) is an exploration and production company engaged in the development and production of long-lived natural gas and oil properties onshore North America. Based in Fort Worth, Texas, the company claims to be a leader in the development and production from unconventional reservoirs including shale gas, and coal bed methane. Following more than 30 years of operating as a private company, Quicksilver became public in 1999. The company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas; Steamboat Springs, Colorado; Craig, Colorado and Cut Bank, Montana. The Company's Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta. On March 17, 2015, Quicksilver Resources Inc. and certain of its affiliates filed voluntary petitions for relief under Chapter 11 of title 11 of the United States Code in Delaware. The Debtors are seeking joint administration under the main case, In re Quicksilver Resources Inc. Case No. 15-10585. Quicksilver's Canadian subsidiaries were not included in the chapter 11 filing. The Company's legal advisors are Akin Gump Strauss Hauer & Feld LLP in the U.S. and Bennett Jones in Canada. Richards Layton & Finger, P.A., is legal co-counsel in the Chapter 11 cases. Houlihan Lokey Capital, Inc. is serving as financial advisor. Garden City Group Inc. is the claims and noticing agent. The Company's balance sheet at Dec. 31, 2014, showed $1.21 billion in total assets, $2.35 billion in total liabilities and total stockholders' deficit of $1.14 billion. The U.S. Trustee for Region 3 appointed five creditors of Quicksilver Resources Inc. to serve on the official committee of unsecured creditors. * * * The Company reported a net loss of $103.1 million on $569 million of total revenue for the year ended Dec. 31, 2014, compared with net income of $162 million on $562 million of total revenue in 2013. R & S ST. ROSE: Hearing on Plan Continued to July 1 --------------------------------------------------- The U.S. Bankruptcy Court continued the June 10 hearing on R & S St Rose Lenders, LLC's Amended Chapter 11 Plan until July 1, 2015, at 9:30 a.m. The hearing has been continued several times. According to the Fourth Amended Disclosure Statement explaining Debtor's Plan of Liquidation, the General Unsecured Claims will be paid on the Effective Date, or as otherwise provided in the Confirmation Order, in the following manner: $520,000 will be paid to the General Unsecured Claims Pro Rata. Thus, each claimant will receive payment equal to approximately 43.3% of their claim. The proposed payments to Holders of Class 1 Lender Claims and Class 2 General Unsecured Claims total $12,197,000. The Debtor possesses funds sufficient to make these payments. The funds derive from the sale proceeds distributed to Debtor from the sale of real property in satisfaction of the Promissory Note. After deducting the estimated amount necessary to pay Administrative Expenses, and reserving funds sufficient to pay the ongoing legal expenses associated with two appeals that Debtor is presently a party to, the Debtor will have the requisite $12,197,000 to pay the Allowed Class 1 and Class 2 claims as anticipated under the Plan. A Liquidation Trust will be established with the primary purpose of providing legal representation and defense of the Debtor in any and all litigation appeals in which Debtor is named. Copies of the Amended Disclosure Statements are available for free at: http://bankrupt.com/misc/R&SStRose_347_2DS.pdf http://bankrupt.com/misc/R&SStRose_371_4DS.pdf About R & S St. Rose Lenders R & S St. Rose Lenders, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-14973) on April 4, 2011. Zachariah Larson, Esq., and Sarah Larson, Esq., at Larson & Stephens, LLC, in Las Vegas, serve as bankruptcy counsel. David J. Merrill, P.C. serves as special counsel. The Debtor, in its amended schedules, disclosed $12.04 million in assets and $24.5 million in liabilities. REED AND BARTON: Gets Final Approval to Access $2.3-Mil. DIP Loan ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Massachusetts authorized Reed and Barton Corporation to obtain $2,371,810 in debtor-in-possession postpetition financing from Rockland Trust Company, which loan will be used to fund the Debtor's day-to-day operations and working capital needs. Furthermore, the Court authorized the Debtor to use cash collateral from the DIP lender. The Debtor granted the DIP lender certain adequate protection including, among other things, adequate protection replacement liens and adequate protection superpriority claims. According to the Debtor, an immediate need exist for it to obtain funds from the DIP facility in order to continue operations and administer and preserve the value of its estate. The ability of the Debtor to finance its operations, to preserve and maintain the value of the Debtor's assets, and to maximize a return for all creditors requires the availability of working capital from the DIP facility, the absence of which would immediately and irreparably harm the Debtor, its estate, creditors, equity holders, and the possibility for a successful reorganization or sale of the Debtor's assets. The Debtor granted the DIP lender first priority priming, valid, perfected, and enforceable lien, subject only to the professional expense carve out, and the permitted prior liens, upon substantially all of the Debtor's real and personal property as provided in and as contemplated by the final order and DIP financing agreements. In addition, the Debtor granted the DIP lender a superpriority administrative claims in respect of all obligations under the DIP agreements. About Reed and Barton Founded in 1824, Reed and Barton Corporation is a designer and distributor of high quality silverware and tableware, along with flatware, crystal drinkware, picture frames, ornaments, and baby giftware. Reed and Barton, which sells products with the Reed & Barton, Lunt, R&B EveryDay, and Williamsburg brands, is based in Taunton, Massachusetts. The privately held company's stock is owned by 28 record shareholders who either are descendants of Henry Reed or trusts for their benefit. Aside from selling its products in department stores and TV shopping networks, the company has an on-site factory store in Taunton and a showroom in Atlanta, Georgia. Reed and Barton sought Chapter 11 bankruptcy protection (Bankr. D. Mass. Case No. 15-10534) in Boston, Massachusetts, on Feb. 17, 2015. The case is assigned to Judge Henry J. Boroff. The Debtor has tapped Holland & Knight, in Boston, as counsel; Financo, LLC, as investment banker; and Verdolino & Lowey, P.C., as accountant. The Debtor disclosed $18.3 million in assets and $25.7 million in liabilities as of the Chapter 11 filing. The U.S. Trustee for Region 1 appointed three creditors to serve on the official committee of unsecured creditors. ROOMLINX INC: KMJ Corbin Expresses Going Concern Doubt ------------------------------------------------------ Roomlinx, Inc., reported a net loss of $2.67 million on $7.37 million of total revenues in 2014, compared with a net loss of $4.15 million on $9.45 million of total revenues in 2013. KMJ Corbin & Company LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has incurred significant losses, has had negative cash flows from operations, and at Dec. 31, 2014, has an accumulated deficit of $44.4 million. The Company's balance sheet at Dec. 31, 2014, showed $3.87 million in total assets, $10.2 million in total liabilities, and a total deficit of $6.29 million. A copy of the Form 10-K filed with the U.S. Securities and Exchange Commission is available at http://is.gd/C4fax7 Headquartered in Bloomfield, Colorado, RoomLinX, Inc. (PINKSHEETS: RMLX) -- http://www.roomlinx.com/-- is a pioneer in Broadband High Speed Wireless Internet connectivity, specializing in providing the most advanced Wi-Fi Wireless and Wired networking solutions for High Speed Internet access to Hotel Guests, Convention Center Exhibitors, Corporate Apartments, and Special Event participants. Designing, deploying and servicing site- specific wireless networks for the hospitality industry is RoomLinX's core competency. RYNARD PROPERTIES: Seeks Authority to Amend Cash Collateral Budget ------------------------------------------------------------------- Rynard Properties Ridgecrest, LP, seeks authority from the U.S. Bankruptcy Court for the Western District of Tennessee, Western Division, to amend the budget governing the use of its cash collateral to include the administrative costs of its accountant. The Debtor tells the Court that it sought to employ The Marston Group, PLC, as its accountants to complete and correct all of the monthly operating report and file corrected reports and ongoing monthly operating reports. Marston Group sought a retainer and estimated work at approximately $1,000 per month, saying its work is necessary and the fees sought are reasonable under the circumstances. In that regard, the Debtor says it needs to amend the Budget under the cash collateral order to include the administrative costs of the retainer and the monthly budget for the fees and expenses from the application of Marston. The Debtor is indebted to Fannie Mae in the approximate amount of $6,000,000 and Tennessee Housing Development Agency holds second mortgage behind Fannie Mae in the approximate amount of $2,500,000. Fannie Mae holds a security interest in all the Debtor's accounts, accounts receivable, rents and real property. The Debtor's cash, accounts receivable and rents constitute cash collateral. Fannie Mae is the Debtor's primary lender. The Court sets the motion for hearing on June 17, 2015, at 10:00 a.m., and deadline to file objections on June 16. The Debtor is represented by: Toni Campbell Parker, Esq. LAW OFFICE OF TONI CAMPBELL PARKER 615 Oakleaf Office Lane Memphis, TN 38117 Tel: (901) 683-0099 Fax: (866) 489-7938 Email: tparker002@att.net About Rynard Properties Ridgecrest Rynard Properties Ridgecrest LP is a Tennessee limited partnership. Its principal place of business is 2881 Rangeline Road, Memphis, TN 38127, and the Debtor operates a 256 unit multifamily apartment complex of Section 8 housing named Ridgecrest Apartments and currently has TESCO operating the complex as leasing agent. The Debtor filed a Chapter 11 bankruptcy petition (Bankr. W.D. Tenn. Case No. 14-22674) on March 13, 2014. John Bartle signed the petition as secretary/treasurer of Ridgecrest LLC, general partner of the Debtor. In its schedules, the Debtor disclosed $16.2 million in total assets and $8.73 million in total liabilities. Toni Campbell Parker serves as the Debtor's counsel. Judge Jennie D. Latta oversees the case. The U.S. Trustee for Region 8 has notified the Bankruptcy Court that it was unable to appoint an official committee of unsecured creditors. SEARS HOLDINGS: Announces Commencement of Seritage Rights Offering ------------------------------------------------------------------ Sears Holdings Corporation announced that Seritage Growth Properties has commenced a rights offering for at least 53,298,899 Class A common shares of Seritage pursuant to a Registration Statement on Form S-11 filed with the Securities and Exchange Commission. The SEC declared the Registration Statement effective on June 9, 2015. Under the terms of the rights offering, Sears Holdings is distributing to its stockholders, at no charge, one transferable subscription right for every share of Sears Holdings common stock held of record as of 5:00 p.m., New York City time, on June 11, 2015, the previously announced record date. Each subscription right entitles the holder thereof to purchase one half of one common share of Seritage for each share of Sears Holdings common stock owned as of the record date at a purchase price of $29.58 per whole share. In addition to being able to purchase their pro rata portion of the shares offered based on their ownership as of the record date for the rights offering, Sears Holdings stockholders may oversubscribe for additional Seritage common shares as described in the Registration Statement. The proceeds from the rights offering will be used to fund a portion of the purchase price for the acquisition from Sears Holdings of 235 Sears- and Kmart-branded stores and Sears Holdings' 50% interests in joint ventures with each of Simon Property Group, Inc., General Growth Properties, Inc. and The Macerich Company, which joint ventures collectively hold an additional 31 properties. Seritage intends to lease the substantial majority of the acquired properties, including those owned by the joint ventures, back to Sears Holdings, with the remaining stores being leased to third parties. Under the terms of the master leases with Sears Holdings and the joint ventures, Seritage has the right to recapture space from Sears Holdings, allowing Seritage to reconfigure and rent the recaptured space to third-party tenants over time. The subscription rights are listed on the New York Stock Exchange under the symbol "SRGRT." Unless the rights offering is extended, trading of the subscription rights on the NYSE will cease at the close of business on June 26, 2015. As soon as practicable after June 11, 2015, the record date for the rights offering, Sears Holdings will distribute subscription rights certificates to individuals who owned Sears Holdings common stock at 5:00 p.m., New York City time, on June 11, 2015. The rights offering will expire at 5:00 p.m., New York City time, on July 2, 2015, unless extended. The rights offering will be made only by means of a prospectus filed with the SEC. The prospectus, including any supplements or amendments thereto, contains important information about the rights offering and Seritage, and holders of subscription rights are urged to read the prospectus carefully. Questions about the rights offering or requests for additional copies of the rights offering documents may be directed to Georgeson Inc., Sears Holdings' information agent for the rights offering, by calling (866) 257-5415 (toll-free) or emailing SearsSeritageOffer@georgeson.com. About Sears Sears Holdings Corporation (NASDAQ: SHLD) -- http://www.searsholdings.com/-- is an integrated retailer focused on seamlessly connecting the digital and physical shopping experiences to serve members. Sears Holdings is home to Shop Your Waytm, a social shopping platform offering members rewards for shopping at Sears and Kmart as well as with other retail partners across categories important to them. The Company operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation, with more than 2,000 full- line and specialty retail stores in the United States and Canada. Kmart Corporation and 37 of its U.S. subsidiaries filed voluntary Chapter 11 petitions (Bankr. N.D. Ill. Lead Case No. 02-02474) on Jan. 22, 2002. Kmart emerged from chapter 11 protection on May 6, 2003, pursuant to the terms of an Amended Joint Plan of Reorganization. Skadden, Arps, Slate, Meagher & Flom, LLP, represented Kmart in its restructuring efforts. Its balance sheet showed $16,287,000,000 in assets and $10,348,000,000 in debts when it sought chapter 11 protection. Kmart bought Sears, Roebuck & Co., for $11 billion to create the third-largest U.S. retailer, behind Wal-Mart and Target, and generate $55 billion in annual revenues. Kmart completed its merger with Sears on March 24, 2005. For the year ended Jan. 31, 2015, the Company reported a net loss attributable to Holdings' shareholders of $1.68 billion compared to a net loss attributable to Holdings' shareholders of $1.36 billion for the year ended Feb. 1, 2014. As of Jan. 31, 2015, the Company had $13.20 billion in total assets, $14.15 billion in total liabilities and a $945 million total deficit. * * * Moody's Investors Service in January 2014 downgraded Sears Holdings Corporate Family Rating to 'Caa1' from 'B3'. The rating outlook is stable. The downgrade reflects the accelerating negative performance of Sears' domestic business with comparable sales falling 7.4% for the quarter to date ending January 6th, 2014 compared to the prior year. The company now expects domestic Adjusted EBITDA to decline to a range of ($80 million) to $20 million for the fourth fiscal quarter, compared with $365 million in the year prior period. For the full year, Sears expects domestic Adjusted EBITDA loss between $(308) million and $(408) million, as compared to $557 million last year. Moody's expects full year cash burn (after capital spending, interest and pension funding) to be around $1.2 billion in 2013 and we expect Sears' cash burn to remain well above $1 billion in 2014. "Operating performance for fiscal 2013 is meaningfully weaker than our previous expectations, and we expect negative trends in performance to persist into 2014" said Moody's Vice President Scott Tuhy. He added "While Sears noted improved engagement metrics for its "Shop Your Way" Rewards program, Moody's remains uncertain when these improved engagement metrics will lead to stabilization of operating performance." As reported by the TCR on March 26, 2014, Standard & Poor's Ratings Services affirmed its ratings on the Hoffman Estate, Ill.- based Sears Holdings Corp., including the 'CCC+' corporate credit rating. Fitch Ratings had downgraded its long-term Issuer Default Ratings (IDR) on Sears Holdings Corporation (Holdings) and its various subsidiary entities (collectively, Sears) to 'CC' from 'CCC', according to a TCR report dated Sept. 12, 2014. SG BLOCKS: Incurs $357K Net Loss in First Quarter ------------------------------------------------- SG Blocks, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $357,000 on $402,000 of revenue for the three months ended March 31, 2015, compared to a net loss of $518,000 on $1.03 million for the same period in the prior year. The Company's balance sheet at March 31, 2015, showed $1.58 million in total assets, $5.22 million in total liabilities and total stockholders' deficit of $3.64 million. Through March 31, 2015, the Company has incurred an accumulated deficiency since inception of $11.09 million. At March 31, 2015, the Company had a cash balance of $578,592. The Company expects that through the next 10 to 16 months, the capital requirements to fund the Company's growth will consume all of the cash flows that it expects to generate from its operations, as well as any proceeds of any other issuances of senior convertible debt securities. The Company further believes that during this period, while the Company is focusing on the growth and expansion of its business, the gross profit that it expects to generate from operations will not generate sufficient funds to cover expected operating costs. Accordingly, the Company requires further external funding to sustain operations and to follow through on the execution of its business plan. There is no assurance that the Company's plans will materialize and/or that the Company will be successful in funding estimated cash shortfalls through additional debt or equity capital and through the cash generated by the Company's operations. Given these conditions, the Company's ability to continue as a going concern is contingent upon it being able to secure an adequate amount of debt or equity capital to enable it to meet its cash requirements. In addition, the Company's ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrants into established markets, the competitive environment in which the Company operates and the current capital raising environment. Since inception, the Company's operations have primarily been funded through proceeds from equity and debt financings and sales activity. Although management believes that the Company has access to capital resources, there are currently no commitments in place for additional financing at this time, and there is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/FCC6FN New York-based SG Blocks, Inc., provides code engineered cargo shipping containers. Marcum LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing the Company's significant operating losses. The Company reported a net loss of $1.54 million on $6.04 million of revenue for the year ended Dec. 31, 2014, compared with a net loss of $2.16 million on $5.73 million of revenue in the prior year. The Company's balance sheet at Dec. 31, 2014, showed $1.35 million in total assets, $4.68 million in total liabilities and total stockholders' deficit of $3.33 million. SOCKET MOBILE: Reports $71.6K Net Loss in First Quarter ------------------------------------------------------- Socket Mobile, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $71,600 on $4 million of revenue for the three months ended March 31, 2015, compared with a net loss of $71,424 on $3.8 million of revenues for the same period in the prior year. The Company's balance sheet at March 31, 2015, showed $8.05 million in total assets, $6.89 million in total liabilities, and stockholders' equity of $1.16 million. A copy of the Form 10-Q is available at: http://is.gd/hNIV6F Socket Mobile, Inc., is a producer of mobile cordless barcode scanners and handheld computers for the business mobility markets. The Newark, California-based Company offers easy-to-use software developer kits to application developers that enable the integration of its barcode scanning software into mobile applications running on smart phones, tablets and mobile computers. Following the 2014 results, Sadler, Gibb & Associates, LLC, expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has an accumulated deficit of $60.7 million and a working capital deficit. The Company reported net income of $432,000 on $17.02 million of revenues for the year ended Dec. 31, 2014, compared with a net loss of $620,000 on $15.7 million of revenues in the prior year. SOLAR POWER: Announces $50 Million Share Repurchase Program ----------------------------------------------------------- Solar Power, Inc.'s Board of Directors has approved a program to repurchase up to US$50 million of SPI's common stocks over the next six-month period, ending on Dec. 7, 2015. SPI expects to purchase its common stock on the open market, in negotiated transactions or otherwise in compliance with all of the conditions of Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The timing of the common stocks repurchased will be at the discretion of management and will depend on a number of factors, including price, market conditions and regulatory requirements. SPI retains the right to limit, terminate or extend the share repurchase program at any time without prior notice. Xiaofeng Peng, chairman of SPI stated, "The implementation of our share repurchase program reflects the confidence that our Board and management have in SPI's growth prospects and our commitment to enhance value for our shareholders while retaining adequate flexibility for future growth." About Solar Power Roseville, Cal.-based Solar Power, Inc., is a global solar energy facility developer offering its own brand of high- quality, low-cost distributed generation and utility-scale SEF development services. Primarily, the Company works directly with and for developers around the world who hold large portfolios of SEF projects for whom it serves as an engineering, procurement and construction contractor. The Company also performs as an independent, turnkey SEF developer for one-off distributed generation and utility-scale SEFs. Solar Power reported a net loss of $5.19 million in 2014, a net loss of $32.2 million in 2013 and a net loss of $25.4 million in 2012. As of March 31, 2015, the Company had $649 million in total assets, $379 million in total liabilities and $270 million in total equity. SPHERIX INC: Reports $4.09-Mil. Loss in First Quarter ----------------------------------------------------- Spherix Incorporated filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $4.09 million on $2,000 of revenues for the three months ended March 31, 2015, compared with a net loss of $7.96 million on $4,000 of revenues for the same period last year. The Company's balance sheet at March 31, 2015, showed $57.4 million in total assets, $1.84 million in total liabilities, $5.93 million in redeemable preferred stock, and total stockholders' equity of $49.6 million. As a result of the Company's recurring operating losses, net operating cash flow deficits and remaining obligations relating to the redemption of its Series I preferred Stock, there is substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/zTOvqu About Spherix Incorporated Bethesda, Md.-based Spherix Incorporated (NASDAQ CM: SPEX) -- http://www.spherix.com/-- was launched in 1967 as a scientific research company, under the name Biospherics Research. The Company now leverages its scientific and technical expertise and experience through its two subsidiaries -- Biospherics Incorporated and Spherix Consulting, Inc. Biospherics is currently running a Phase 3 clinical trial to study the use of D-tagatose as a treatment for Type 2 diabetes. Its Spherix Consulting subsidiary provides scientific and strategic support for suppliers, manufacturers, distributors and retailers of conventional foods, biotechnology-derived foods, medical foods, infant formulas, food ingredients, dietary supplements, food contact substances, pharmaceuticals, medical devices, consumer products, and industrial chemicals and pesticides. The Company reported a net loss of $30.5 million on $10,000 of revenues for the year ended Dec. 31, 2014, compared to a net loss of $18.0 million on $27,000 of revenues in the prior year. Marcum LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. STANDARD REGISTER: Files Schedules of Assets and Liabilities ------------------------------------------------------------ The Standard Register Company filed with the U.S. Bankruptcy Court for the District of Delaware its schedules of assets and liabilities, and statement of financial affairs, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $22,021,326 B. Personal Property $251,926,260 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $310,154,411 E. Creditors Holding Unsecured Priority Claims F. Creditors Holding Unsecured Non-priority Claims $68,853,101 ----------- ----------- TOTAL $273,947,586 $379,007,512 A full-text copy of the Debtor's schedules and statements is available for free at http://is.gd/PE0a0L About Standard Register Standard Register -- http://www.standardregister.com/-- provides market-specific insights and a compelling portfolio of workflow, content and analytics solutions to address the changing business landscape in healthcare, financial services, manufacturing and retail markets. The Company has operations in all U.S. states and Puerto Rico, and currently employs 3,500 full-time employees and 16 part-time employees. The Standard Register Company and 10 affiliated debtors sought Chapter 11 protection in Delaware on March 12, 2015, with plans to launch a sale process where its largest secured lender would serve as stalking horse bidder in an auction. The cases are pending before the Honorable Judge Brendan L. Shannon and are jointly administered under Case No. 15-10541. The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors; and Prime Clerk LLC as claims agent. Andrew R. Vara, U.S. trustee for Region 3, appointed seven creditors to serve on the Official Committee of Unsecured Creditors for the Debtors' bankruptcy cases. Lowenstein Sandler LLP represents the Committee. STANDARD REGISTER: Proposes Up to $4.3MM Bonuses to Key Employees ----------------------------------------------------------------- The Standard Register Company and its affiliated debtors seek permission from the U.S. Bankruptcy Court for the District of Delaware to pay incentive bonuses to certain employees through their s key employee incentive plan. The Debtors explained that they need approval of the key employee incentive plan (KEIP) to maximize their financial condition, sell the so-called "Transferred Assets," and meet their debtor-in-possession duties during their Chapter 11 cases. These needs cannot be met without the support of the KEIP Participants as the KEIP Participants' advanced skill and institutional knowledge are critical to the Debtors' efforts to maximize value for all interested parties, Michael R. Nestor, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, tells the Court. Mr. Nestor assures the Court that the KEIP is designed to "achieve the desired performance." The maximum amount that could potentially be paid under the KEIP is approximately $4.3 million, and payments under the KEIP would only reach that amount in the event that the Debtors' ambitious revenue and EBITDARP goals are not only met, but surpassed. Moreover, any payout under the KEIP will ultimately be the Buyer's responsibility, as payment is contingent on the Buyer making KEIP payments or assuming these responsibilities in conjunction with the Sale, Mr. Nestor says. He asserts that the KEIP is properly characterized as a performance-based, EBITDARP and revenue driven incentive plan -- not a retention plan for insiders. Andrew R. Vara, Acting United States Trustee for Region 3, objects to the motion, complaining that the Debtors did not disclose publicly in the KEIP motion the KEIP participants' names, job titles, responsibilities, current salaries, and proposed incentive payment amounts, nor do they disclose the actual revenue and EBITDARP goals that will entitle KEIP participants to incentive payments. Further, the U.S. Trustee complains that the Debtors do not explain in the KEIP Motion how the revenue and EBITDARP targets were established, leaving the U.S. Trustee, the Court, and other parties-in-interest to speculate on the degree of difficulty in achieving those targets and whether those performance goals virtually guarantee the KEIP Participants will receive payments under the KEIP. Moreover, the U.S. Trustee argues that the Debtors did not provide information on any possible correlation or difference between the financial performance goals under the KEIP and the financial performance covenants established under the extant debtor-in-possession financing. The Debtors do not disclose in the KEIP Motion the dates and amounts of any bonuses or incentive compensation already paid to KEIP Participants during the one-year period preceding the petition date and disclose whether the KEIP is in lieu of, or in addition to, other bonuses or incentive compensation that may be earned by KEIP Participants, the U.S. Trustee says. The Debtors, in response to the U.S. Trustee's objection, explain that the KEIP was developed as a reasonable, cost-effective way to appropriately incentivize certain personnel who are essential to realizing the Debtors' goals. The Debtors argue that the KEIP meets the business judgment standard and is justified by the unique facts and circumstances of the Chapter 11 Cases. Mr. Nestor asserts that the Debtors' ability to preserve the value of their assets would be severely undermined if they are unable to properly incentivize certain critical employees as these individuals are intimately familiar with Debtors' business and the Sale Process, which makes them so critical to the Debtors' business that the Debtors must retain them even if they are not fully committed to the job. Moreover, Mr. Nestor says the cost of the KEIP is minimal, especially given (i) the value to be realized from the achievement of the Debtors' Revenue and EBITDARP goals, (ii) the potential for securing higher or otherwise better offers for the Transferred Assets, and (iii) the fact that the Buyer will bear the cost of the KEIP. The KEIP Participants are essential to preserving the Debtors' business value pending the Sale and the KEIP will properly incentivize the KEIP Participants to do everything in their power to maintain and increase business performance and stem any further business deterioration, Mr. Nestor adds. The Debtors are represented by: Michael R. Nestor, Esq. Kara Hammond Coyle, Esq. Maris J. Kandestin, Esq. Andrew L. Magaziner, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, DE 19801 Tel: (302) 571-6600 Fax: (302) 571-1253 Email: mnestor@ycst.com kcoyle@ycst.com mkandestin@ycst.com amagaziner@ycst.com -- and -- Michael A. Rosenthal, Esq. Robert A. Klyman, Esq. Samuel A. Newman, Esq. Jeremy L. Graves, Esq. Sabina Jacobs, Esq. GIBSON, DUNN & CRUTCHER LLP 333 South Grand Avenue Los Angeles, CA 90071 Tel: (213) 229-7000 Fax: (213) 229-7520 Email: mrosenthal@gibsondunn.com rklyman@gibsondunn.com snewman@gibsondunn.com jgraves@gibsondunn.com sjacobs@gibsondunn.com The U.S. Trustee is represented by: Mark S. Kenney, Esq. Office of the United States Trustee J. Caleb Boggs Federal Building 844 King Street, Suite 2207, Lockbox 35 Wilmington, DE 19801 Tel: (302) 573-6491 Fax: (302) 573-6497 About Standard Register About Standard Register Standard Register -- http://www.standardregister.com/-- provides market-specific insights and a compelling portfolio of workflow, content and analytics solutions to address the changing business landscape in healthcare, financial services, manufacturing and retail markets. The Company has operations in all U.S. states and Puerto Rico, and currently employs 3,500 full-time employees and 16 part-time employees. The Standard Register Company and 10 affiliated debtors sought Chapter 11 protection in Delaware on March 12, 2015, with plans to launch a sale process where its largest secured lender would serve as stalking horse bidder in an auction. The cases are pending before the Honorable Judge Brendan L. Shannon and are jointly administered under Case No. 15-10541. The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors; and Prime Clerk LLC as claims agent. Andrew R. Vara, Acting United States Trustee for Region 3, has appointed seven members to the official committee of unsecured creditors in the Chapter 11 cases of The Standard Register Company and its debtor affiliates. The Committee is represented by Kenneth A. Rosen, Esq., Sharon L. Levine, Esq., Andrew Behlmann, Esq., at Lowenstein Sandler LLP, in Roseland, New Jersey; Gerald C. Bender, Esq., at Lowenstein Sandler LLP, in New York; and Christopher A. Ward, Esq., and Justin K. Edelson, Esq., at Polsinelli PC, in Wilmington, Delaware. TELEXFREE LLC: Meeting of Creditors May Be Scheduled in Two Months ------------------------------------------------------------------ Stephen B. Darr, trustee in the Chapter 11 bankruptcy case of TelexFree LLC, said that he now has enough information to schedule a creditors meeting in the next two months, Lisa Eckelbecker, writing for Telegram.com, reports. Telegram.com relates that the U.S. Securities and Exchange Commission is pursuing civil charges against the Company. The report says that the U.S. attorney in Boston has accused the Company's principals, Carlos Wanzeler and James Merrill, of wire fraud. According to the report, Mr. Wanzeler allegedly fled to his native Brazil in 2014 and remains at large, while Mr. Merrill is free on house arrest until trial. U.S. Bankruptcy judge Melvin S. Hoffman has approved Mr. Darr's requests for $3 million in fees and expenses for the lawyers and financial consulting firms that have been assisting him, Telegram.com adds. About TelexFREE TelexFREE -- http://www.TelexFREE.com/-- is a telecommunications business that uses multi-level marketing to assist in the distribution of voice over internet protocol telephone services. TelexFREE's retail VoIP product, 99TelexFREE, allows for unlimited international calling to seventy countries for a flat monthly rate of $49.90. TelexFREE has over 700,000 associates or promoters worldwide. The company believes the sales of the 99TelexFREE product, the TelexFREE "app," and other new products will ultimately prove successful and profitable. The company is struggling, however, with several factors that required it to seek chapter 11 protection. First, the Company experienced exponential growth in revenue between 2012 and 2013 (from de minimus amounts to over $1 billion), which put tremendous pressure on the Company's financial, operational and management systems. Second, although the company revised its original compensation plan to promoters in order to address certain questions that were raised regarding such plan, the company believes that the plans need to be further revised. Finally, the trailing liabilities arising from the original compensation plan are difficult to quantify and have resulted in substantial asserted liabilities against the company, a number of which may not be valid. TelexFREE LLC and two affiliates sought bankruptcy protection (Bankr. D. Nev. Lead Case No. 14-12525) on April 13, 2014. Alvarez & Marsal North America, LLC is serving as restructuring advisor and Greenberg Traurig, LLP and Gordon Silver are serving as legal advisors to TelexFREE. Kurtzman Carson Consultants LLC serves as claims and noticing agent. TelexFREE, LLC, estimated $50 million to $100 million in assets and $100 million to $500 million in liabilities. TelexFREE is facing accusations of operating a $1 billion-plus pyramid scheme. In May, the Court approved the motion by the U.S. Securities & Exchange Commission to transfer the venue of the Debtors' cases to the U.S. Bankruptcy Court, District of Massachusetts (Bankr. D. Mass. Case Nos. 14-40987, 14-40988 and 14-40989). The Court entered an order in relation to the venue transfer stating that the cases remain jointly administered, and KCC will continue to serve as claims processing agent. The Debtors had opposed to the motion, stating that while the SEC contends that the Massachusetts Bankruptcy Court is more convenient for the SEC, the SEC has failed entirely to meet its burden to show that the Massachusetts Bankruptcy Court is better than the Nevada Bankruptcy Court for administration of the Chapter 11 Cases. The Debtors chose the Nevada Bankruptcy Court because, inter alia, TelexFREE Nevada, a Nevada entity, is a counter-party to more than 700,000 contracts governed by Nevada law. A creditors' committee has not yet been appointed in the Chapter 11 Cases. TEXAS REGENCY: Apartment Files for Ch. 11 with $11.4MM Debt ----------------------------------------------------------- Texas Regency Apartments, L.P., owner of the Regency Square Apartments at 7222 Bellerive Dr., Houston, Texas, sought Chapter 11 protection (Bankr. S.D. Tex. Case No. 15-33188) in Houston, Texas, on June 10, 2015. The Debtor immediately filed schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $10,600,000 B. Personal Property $521,707 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $10,838,852 E. Creditors Holding Unsecured Priority Claims $175,257 F. Creditors Holding Unsecured Non-priority Claims $391,344 ----------- ----------- TOTAL $11,121,707 $11,405,453 The largest secured creditor is TD Bank, N.A., which is owed $9,683,298. A copy of the schedules is available for free at: http://bankrupt.com/misc/Texas_R_Schedules.pdf The Debtor tapped Matthew Hoffman, Esq., at the Law Offices of Matthew Hoffman, p.c., as counsel. TEXAS REGENCY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Texas Regency Apartments, L.P. 7222 Bellerive Dr. Houston, TX 77036 Case No.: 15-33188 Chapter 11 Petition Date: June 10, 2015 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Hon. David R. Jones Debtor's Counsel: Matthew Hoffman, Esq. LAW OFFICES OF MATTHEW HOFFMAN, P.C. 2777 Allen Parkway, Suite 1000 Houston, TX 77019 Tel: 713-654-9990 Fax: 713-654-0038 Email: mhecf@aol.com Total Assets: $11.1 million Total Debts: $11.4 million The petition was signed by Gordon Steele, chief financial officer. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Mike Sullivan-Tax Assessor Ad valorem $171,259 Harris County Property tax TD Bank, N.A. Fee Simple $1,007,491 2307 West Kennedy Blvd. Tampa, FL 33609 Lopez Carpet Care, Inc. Trade Debt $70,349 Express Painting Services Trade Debt $41,327 Contello Plumbing Co. Inc. Trade Debt $37,692 Elite Apartment Services Trade Debt $32,608 Three Amigos Painting Trade Debt $22,602 Southwest Painting Contractors Trade Debt $21,609 Inc. Roto Rooter Trade Debt $20,001 Pavecon Trade Debt $19,831 AAA Plumbers Trade Debt $19,648 Presto Maintenance & Supply Trade Debt $19,273 Property Solutions Trade Debt $18,434 Amerifactors Financial Trade Debt $17,298 Group, LLC Keylo Painting & Construction Trade Debt $13,942 Alex Painting and Services Trade Debt $12,162 E.H.L. Construction and Painting Trade Debt $11,216 Green Tree Lawn & Special Designs Trade Debt $10,800 Green Mountain Energy, Co. Utility Service $10,781 Prestige Restoration, Inc. Trade Debt $9,523 THERAPEUTICSMD INC: Completes Enrollment in The Rejoice Trial ------------------------------------------------------------- TherapeuticsMD Inc. has completed patient enrollment in The Rejoice Trial, a phase 3 clinical trial of TX-004HR (estradiol in VagiCap) to evaluate multiple doses of an investigational, applicator-free vaginal estradiol for the treatment of pain during sexual intercourse (dyspareunia), a symptom of vulvar and vaginal atrophy (VVA), due to menopause. TX-004HR is an investigational bio-identical estradiol softgel capsule administered vaginally without the need for an applicator. The Rejoice Trial is also collecting efficacy data on vaginal dryness, and vaginal and/or vulvar itching or burning. "Recent studies have shown that current therapies used to treat VVA generate some concerns from women with respect to their efficacy, convenience and safety," stated Sebastian Mirkin, MD., chief medical officer of TherapeuticsMD. "TX-004HR was designed to try to address these unmet needs. Completion of patient recruitment in the Rejoice Trial marks an important milestone in our development efforts and we look forward to disclosing topline results from the Rejoice Trial later this year." Trial Design A pivotal safety and efficacy study, the Rejoice Trial is a randomized, multicenter, double-blind, placebo-controlled study evaluating three strengths of TX-004HR - 4 mcg, 10 mcg and 25 mcg. The 4 mcg strength represents a new low-dose option. The 12-week trial enrolled over 700 participants in approximately 100 sites across the United States and Canada. About Vulvar and Vaginal Atrophy (VVA) VVA is a chronic condition resulting from the decrease in naturally occurring estrogen during menopause, resulting in thinning of the vaginal lining and an increase in vaginal pH levels. Approximately half of postmenopausal women report having symptoms of VVA.[1] In total, an estimated 32 million women in the United States are currently suffering from symptoms of VVA[2], and only 2.3 million (7%) are currently being treated with prescription therapy.1,[3] The burden of VVA in the United States is likely to increase due to aging of the population.[4] Furthermore, due to increasing longevity, women may now suffer from VVA or other conditions related to decreased reproductive hormone levels for over one-third of their lives. About TherapeuticsMD Boca Raton, Florida-based TherapeuticsMD, Inc. (OTC QB: TXMD) is a women's healthcare product company focused on creating and commercializing products targeted exclusively for women. The Company currently manufactures and distributes branded and generic prescription prenatal vitamins as well as over-the-counter vitamins and cosmetics. The Company is currently focused on conducting the clinical trials necessary for regulatory approval and commercialization of advanced hormone therapy pharmaceutical products designed to alleviate the symptoms of and reduce the health risks resulting from menopause-related hormone deficiencies. TherapeuticsMD reported a net loss of $54.2 million on $15.02 million of net revenues for the year ended Dec. 31, 2014, compared with a net loss of $28.4 million on $8.77 million of net revenues for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $99.5 million in total assets, $11.8 million in total liabilities, and $87.7 million in total stockholders' equity. TRANSGENOMIC INC: Expands Board of Directors and Executive Team --------------------------------------------------------------- Transgenomic, Inc., announced that Mya Thomae has been named to its Board of Directors and Harjit Kullar, PhD, has been appointed vice president of marketing for the Biomarker Discovery and Genetic Assays and Platforms business units. Ms. Thomae is currently vice president of regulatory affairs at Illumina, which acquired her regulatory and quality consulting firm in 2014. Dr. Kullar joins Transgenomic from Bio-Rad Laboratories. "Mya Thomae is a terrific addition to our Board, and we are very happy to have her as a director," said Robert Patzig, Chairman of Transgenomic. "Mya's reputation for regulatory expertise and insight is well known within the industry. Her knowledge and experience will be especially valuable as we continue to expand the market for use of our revolutionary Multiplexed ICE COLD-PCR technology into the clinical diagnostics arena." "Harjit Kullar's record of success at industry leaders Thermo Fisher, Life Technologies and Bio-Rad makes him a terrific recruit for Transgenomic," noted Paul Kinnon, president and CEO of Transgenomic. "His marketing and business development experience are at the forefront of the genomics tools and services industry and will be invaluable as we bring MX-ICP technologies and products online." Before joining Illumina, Ms. Thomae was founder and chief executive officer of Myraqa, a boutique diagnostics regulatory consulting firm. Myraqa provides counsel on regulatory development and clinical validation of in vitro and laboratory-developed diagnostic products. Myraqa was acquired by Illumina in 2014 and continues to offer regulatory consulting services under the Myraqa brand. Previously, Ms. Thomae served as an independent regulatory consultant to diagnostics companies. Earlier in her career, she was a regulatory affairs manager at Chiron Corporation and at Epitope, Inc. Ms. Thomae received a bachelor's degree from the University of Wisconsin-Madison. Ms. Thomae stated, "This is an exciting time in our industry, with rapid technology advances and the advent of personalized and precision medicine making diagnostics ever more central to 21st century healthcare. Transgenomic is committed to using its unique ICE COLD-PCR technology to help speed widespread adoption of precision medicine as part of routine care, and I look forward to the opportunity to contribute at this important time for the company." Dr. Kullar joins Transgenomic from Bio-Rad, where he served as Content Marketing Leader for cross-functional global digital and web-based initiatives. Prior to Bio-Rad, he was Director of Product Marketing, Genomics, at Thermo Fisher Scientific, where he led a global marketing team that successfully launched more than 30 product lines, including PCR, gene expression and other molecular biology products. Previously, Dr. Kullar was promoted from Manager to Director of Market Development, Primary & Stem Cell Systems, at Life Technologies, where he and his global marketing team successfully launched more than 16 new product lines and played a key role in the success of initiatives to deliver commercial programs with annual growth approaching 25%. Dr. Kullar began his commercial career as Director of Sales at LifeSpan Biosciences, where he closed the single largest sale in the company's history and negotiated more than 50 contract research studies in a two-year period. Dr. Kullar received a BSc. degree from the University of Southampton, a PhD in Cancer Biology from the University of Birmingham and an MBA from the Judge Business School, University of Cambridge, all in the UK. He did post-doctoral research at Cancer Research UK and at the Fox Chase Cancer Center. Dr. Kullar noted, "With the launch of its first products and services based on ICE COLD-PCR, I believe Transgenomic has the opportunity to achieve important gains in the marketplace, while helping to speed industry adoption of genomic-based personalized approaches in R&D and clinical practice. I welcome the chance to contribute to the ongoing transformation of both the company and the markets we serve." Transgenomic also announced the launch of a new corporate website. Mr. Kinnon commented, "Our ongoing process of transforming Transgenomic into a provider of innovative biotechnology-based, products and services requires a website that provides ready access to information about our growing portfolio of products and services in an attractive and highly functional format. We are delighted with our new portal and invite our many customers, collaborators, industry colleagues and investors to visit, take a 'test drive,' and let us know what you think." On June 8, 2015, in connection with her appointment to the Board, Ms. Thomae was granted an option to purchase 5,000 shares of Transgenomic's common stock with an exercise price of $1.98, which will vest in full on the one-year anniversary of the date of grant, subject to Ms. Thomae's continued service with Transgenomic through the vesting date. In accordance with Transgenomic's independent director compensation policy, Ms. Thomae will be entitled to receive an annual retainer of $20,000 for her service on the Board and reimbursement for out-of-pocket expenses related to attendance at Board meetings. 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. As of March 31, 2015, the Company had $34.5 million in total assets, $24.4 million in total liabilities and $10 million in total stockholders' equity. 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. TRUE DRINKS: Reports $2.28-Mil. Net Loss in First Quarter --------------------------------------------------------- True Drinks Holdings, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $2.28 million on $765,000 of revenues for the three months ended March 31, 2015, compared with a net loss of $3.60 million on $651,000 of revenue for the same period in 2014. The Company's balance sheet at March 31, 2015, showed $7.53 million in total assets, $5.09 million in total liabilities, and stockholders' equity of $2.43 million. The Company's auditors have included a paragraph in their report on consolidated financial statements, included in its annual report on Form 10-K for the fiscal year ended Dec. 31, 2014, indicating that there is substantial doubt as to the ability of the Company to continue as a going concern. For the three months ended March 31, 2015, the Company incurred a net loss of $2.27 million. At March 31, 2015, the Company has negative working capital of $2.36 million and an accumulated deficit of $20.6 million. A copy of the Form 10-Q is available at: http://is.gd/6lIgbI Irvine, California-based True Drinks Holdings, Inc. (TRUU:OTC US) develops, markets, sells and distributes its flagship product, AquaBall(TM) Naturally Flavored Water, a vitamin-enhanced, naturally flavored water drink packaged in its patented stacking spherical bottles. The Company operates through the beverage company True Drinks, Inc. TRUMP ENTERTAINMENT: Regulator Allows Carl Icahn to Own Taj Mahal ----------------------------------------------------------------- David Madden, writing for CBS Philly, reports that New Jersey's Casino Control Commission voted unanimously to approve the application of Carl Ichan, who is trading $286 million in debt into ownership of Trump Entertainment, to take control of the Trump Taj Mahal. CBS quoted Commission Chairman Matt Levinson as saying, "Does he qualify to hold a license in the state of New Jersey to run the Taj Mahal. With integrity, financial stability, we found that him and his corporation were." CBS relates that Mr. Icahn plans to spend up to a $100 million to improve Taj Mahal. According to the Associated Press, Mr. Ichan has been locked in a battle with Local 54 of the Unite-HERE, the city's main casino workers' union, over the elimination of health insurance and pension plans that Trump Entertainment made in October 2014, and has threatened to close down the casino if the Union succeeds in getting a court to restore the benefits, which he describes as unaffordable. About Trump Entertainment Resorts Trump Entertainment Resorts Inc., owner of the Atlantic City Boardwalk casinos that bear the name of Donald Trump, returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 14-12103) on Sept. 9, 2014, with plans to shutter its casinos. TER and its affiliated debtors own and operate two casino hotels located in Atlantic City, New Jersey. TER said it will close the Trump Taj Mahal Casino Resort by Sept. 16, 2014, and, absent union concessions, the Trump Plaza Hotel and Casino by Nov. 13, 2104. The Debtors have sought an order authorizing the joint administration of their Chapter 11 cases and the consolidation thereof for procedural purposes only. Judge Kevin Gross presides over the Chapter 11 cases. The Debtors have tapped Young, Conaway, Stargatt & Taylor, LLP, as counsel; Stroock & Stroock & Lavan LLP, as co-counsel; Houlihan Lokey Capital, Inc., as financial advisor; and Prime Clerk LLC, as noticing and claims agent. TER estimated $100 million to $500 million in assets as of the bankruptcy filing. The Debtors as of Sept. 9, 2014, owe $285.6 million in principal plus accrued but unpaid interest of $6.6 million under a first lien debt issued under their 2010 bankruptcy-exit plan. The Debtors also have trade debt in the amount of $13.5 million. TRUMP ENTERTAINMENT: Regulators Bless Icahn's Purchase of Taj Mahal ------------------------------------------------------------------- The Associated Press reported that New Jersey gambling regulators are allowing Carl Icahn to double down on his casino holdings in Atlantic City. According to AP, the Casino Control Commission on June 10 approved the billionaire investor to own the Trump Taj Mahal Casino Resort, which he is acquiring from bankruptcy court. About Trump Entertainment Resorts Trump Entertainment Resorts Inc., owner of the Atlantic City Boardwalk casinos that bear the name of Donald Trump, returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 14-12103) on Sept. 9, 2014, with plans to shutter its casinos. TER and its affiliated debtors own and operate two casino hotels located in Atlantic City, New Jersey. TER said it will close the Trump Taj Mahal Casino Resort by Sept. 16, 2014, and, absent union concessions, the Trump Plaza Hotel and Casino by Nov. 13, 2104. The Debtors have sought an order authorizing the joint administration of their Chapter 11 cases and the consolidation thereof for procedural purposes only. Judge Kevin Gross presides over the Chapter 11 cases. The Debtors have tapped Young, Conaway, Stargatt & Taylor, LLP, as counsel; Stroock & Stroock & Lavan LLP, as co-counsel; Houlihan Lokey Capital, Inc., as financial advisor; and Prime Clerk LLC, as noticing and claims agent. TER estimated $100 million to $500 million in assets as of the bankruptcy filing. The Debtors as of Sept. 9, 2014, owe $285.6 million in principal plus accrued but unpaid interest of $6.6 million under a first lien debt issued under their 2010 bankruptcy-exit plan. The Debtors also have trade debt in the amount of $13.5 million. TWIN RINKS: Proposes Jones & Schwartz as Counsel ------------------------------------------------ Twin Rinks At Eisenhower, LLC, asks the U.S. Bankruptcy Court for the Eastern District of New York for approval to employ Jones & Schwartz, P.C., as counsel. J&S has extensive experience and knowledge in the field of debtor's and creditors' rights and is well-qualified to represent the Debtor in the Chapter 11 case. J&S will charge the Estate for its legal services on an hourly basis in accordance with its ordinary and customary rates: Hourly Rate ----------- Partners and of Counsel $630 Paralegals $255 The Debtor believes that J&S is a disinterested person for the Estate as defined in Section 101(14) of the Bankruptcy Code. J&S will apply to the Court for allowance of compensation and reimbursement of expenses in accordance with applicable provisions of the Bankruptcy Code, the Bankruptcy Rules, the Local Bankruptcy Rules and orders of the Court. About Twin Rinks Twin Rinks At Eisenhower, LLC, an East Meadow, New York-based ice skating rink operator and entertainment business, sought Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 15-72466) on June 8, 2015, with plans to sell its business and its assets as a going concern. The Debtor disclosed $52.4 million in assets and $55.2 million in debt as of May 25, 2015. The Debtor tapped Jones & Schwartz, P.C., as counsel, and Greenspan Associates, CPAs, as accountants. TWIN RINKS: Taps Greenspan as Accountants ----------------------------------------- Twin Rinks At Eisenhower, LLC, asks the U.S. Bankruptcy Court for the Eastern District of New York for approval to employ Greenspan Associates, CPAs, PC, as accountants, under a general retainer, pursuant to Section 327(a) of the Bankruptcy Code. Greenspan will be required to render, among other things, these services to the Debtor: (a) to give accounting advice with respect to the Debtor’s powers and duties; (b) to analyze all transfers pre- and post-petition that may be avoidable by the Debtor; (c) to analyze all claims filed against the Debtor’s estate; (d) to prepare all necessary operating statements, schedules and tax documents for filing and reviewing proposed transactions concerning any tax consequences; and (e) to perform any other accounting services for the Debtor in connection with the Chapter 11 cases. The current hourly rates which Greenspan has informed the Debtor it charges for the accounting services of its professionals are: Hourly Rate ----------- Principals $275 Senior Staff $100 to $200 Greenspan has informed the Debtor that it is a "disinterested person" as defined by Section 101(14), and used in Section 327(a) of the Bankruptcy Code. About Twin Rinks Twin Rinks At Eisenhower, LLC, an East Meadow, New York-based ice skating rink operator and entertainment business, sought Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 15-72466) on June 8, 2015, with plans to sell its business and its assets as a going concern. The Debtor disclosed $52.4 million in assets and $55.2 million in debt as of May 25, 2015. The Debtor tapped Jones & Schwartz, P.C., as counsel, and Greenspan Associates, CPAs, as accountants. UROLOGIX INC: Has $349K Net Loss in Q3 Ended March 31 ----------------------------------------------------- Urologix, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $349,000 on $2.8 million of revenues for the three months ended March 31, 2015, compared with a net loss of $1.66 million on $3.36 million of revenues for the same period in the prior year. The Company's balance sheet at March 31, 2015, showed $5.02 million in total assets, $13.09 million in total liabilities, and a stockholders' deficit of $8.06 million. A copy of the Form 10-Q is available at: http://is.gd/zFgdts About Urologix, Inc. Urologix, Inc., develops, manufactures, and markets non-surgical, office-based therapies for the treatment of the symptoms and obstruction resulting from non-cancerous prostate enlargement. The Company's products include the Cooled ThermoTherapy(TM) (CTT) product line and the Prostiva(R) Radio Frequency (RF) Therapy System. The Company reported a net loss of $7.61 million on $14.23 million of sales for the fiscal year ended June 30, 2014, compared with a net loss of $4.29 million on $16.59 million of sales last year. Baker Tilly Virchow Krause, LLP, expressed substantial doubt about the Company's ability to continue as a going concern, citing that the company has suffered recurring operating losses and negative cash flows from operations, and needs additional working capital to support future operations. VISITING NURSE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Visiting Nurse Association of Long Island, Inc. 100 Garden City Plaza, Suite 100 Garden City, NY 11530 Case No.: 15-72490 Nature of Business: Health Care Chapter 11 Petition Date: June 10, 2015 Court: United States Bankruptcy Court Eastern District of New York (Central Islip) Judge: Hon. Louis A. Scarcella Debtor's Counsel: Adam P. Wofse, Esq. LAMONICA HERBST & MANISCALCO LLP 3305 Jerusalem Avenue Wantagh, NY 11793 Tel: (516) 826-6500 Fax: (516) 826-0222 Email: AWofse@lhmlawfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Orael M. Keenan, chief executive officer. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nyeb15-72490.pdf WBH ENERGY: Castlelake Withdraws Bid to Convert Case to Chapter 7 ----------------------------------------------------------------- CL III Funding Holding Company, LLC (Castlelake) notified the U.S. Bankruptcy Court for the Western District of Texas that it has withdrawn the motion to convert the Chapter 11 case of WBH Energy LP, et al., to that under Chapter 7 of the Bankruptcy Code. In seeking the conversion, Castlake had stated that there is no reasonable possibility of a successful reorganization of the Debtors, as the Debtor LLC's limited unencumbered assets cannot properly fund a plan of reorganization that is confirmable. It pointed out that Debtor LLC's principal assets -- joint interest billing accounts receivables -- are fully encumbered by Castlelake's valid, perfected liens and security interests. The liens and security interests secure over $30 million of unpaid loan debt -- an amount far in excess of the collateral value. 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. WET SEAL: No Objection to Plan Exclusivity Extension ---------------------------------------------------- Travis G. Buchanan, Esq., at Young Conaway Stargatt & Taylor, LLP, counsel for Seal123, Inc., f/k/a The Wet Seal, Inc., et al., certified that as of the May 26, 2015 deadline, no objection was filed to the Debtors' request for an extension of their exclusive period to propose a Chapter 11 plan. The Debtors filed a motion asking the Court to extend their exclusive periods to file a plan of liquidation until Aug. 13, 2015, and solicit acceptances for that plan until Oct. 12, 2015. According to Travis G. Buchanan, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, the Debtors, the Official Committee of Unsecured Creditors, and Mador Lending, LLC, are currently exchanging drafts of the plan. The plan is subject to the buyer's reasonable approval under its asset purchase agreement and its related letter agreement with the Debtors and the Committee. About Wet Seal The Wet Seal, Inc., and three affiliates -- The Wet Seal Retail, Inc., Wet Seal Catalog, Inc., and Wet Seal GC, LLC â€“ filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 15-10081 to 15-10084) on Jan. 15, 2015. The Debtors are a national multi-channel retailer selling fashion apparel and accessory items designed for female customers aged 13 to 24 years old. The Wet Seal, Inc., disclosed $215,254,952 in assets and $60,598,968 in liabilities as of the Chapter 11 filing. The Hon. Christopher S. Sontchi presides over the jointly administered cases. Maris J. Kandestin, Esq., and Michael R. Nestor, Esq., at Young Conaway Stargatt & Taylor, LLP; Lee R. Bogdanoff, Esq., Michael L. Tuchin, Esq., David M. Guess, Esq., and Jonathan M. Weiss, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP; and Paul Hastings LLP, serve as the Debtors' Chapter 11 counsel. FTI Consulting serves as the Debtors' restructuring advisor. The Debtors' investment banker is Houlihan Lokey. The Debtors tapped Donlin, Recano & Co., Inc. as claims and noticing agent. The petitions were signed by Thomas R. Hillebrandt, interim chief financial officer. B. Riley, the original DIP lender and plan sponsor, is represented by Van C. Durrer, II, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP. Versa Capital Management, LLC, and its affiliate, Mador Lending, LLC, which was selected as the successful bidder at an auction, is being advised by Greenberg Traurig LLP, Klehr Harrison Harvey Branzburg LLP, and KPMG LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors. The Committee retained Pachulski Stang Ziehl & Jones LLP as its counsel and Province Inc. as its financial advisor. The Wet Seal, Inc., changed its name to "Seal123, Inc." on April 17, 2015, in accordance with the Asset Purchase Agreement with Mador Lending, LLC, an affiliate of Versa Capital Management, LLC as buyer. [^] BOOK REVIEW: EPIDEMIC OF CARE --------------------------------- Author: George C. Halvorson George J. Isham, M.D. Publisher: Jossey-Bass; 1st edition Hardcover: 271 pages List Price: $28.20 Order your personal copy today at http://www.amazon.com/exec/obidos/ASIN/0787968889/internetbankrupt Halvorson and Isham worked together as leaders of the Minneapolis health-care organization HealthPartners; Halvorson as chairman and CEO, and Isham as medical director and chief health officer. From their positions as leaders in the health-care field, they have gained a broad, thorough understanding of the structure, workings, and the problems of America's health-care system. Their "Epidemic of Care" written in a readable, lucid, jargon-free style is a timely work for anyone interested in the pressing matter of satisfactory health care in America. This includes government workers, politicians, executives of HMOs and hospitals, and critics of health care, to individuals making choices about their own health care. It is a notable work both practical and visionary that one hopes legislators and heads of HMOs will take in. For Halvorson and Isham make their way through the daunting complexities of today's health-care system to put their finger on its core problems and offer practicable solutions to these. The two main problematic issues of contemporary health care are health-care costs and quality of care. These two authors offer solutions taking into consideration both of these. They put forth balanced proposals instead of the many one-sided ones which stress cutting costs at the expense of care or favor care regardless of costs, costs usually born by government from tax revenues. In the authors' comprehensive, balanced proposals, corporations and businesses of all sizes, government agencies, health-care organizations of all types, state and local governments and health organizations, and also individuals work together cooperatively for the goal of affordable, effective, and widespread up-to-date health care. Before outlining their program for dealing with the problems in health care, which are only growing worse in the present system, the authors relate information on different parts of today's system most readers would not be aware of. Then they analyze it to focus in on what is causing the problems in the particular area of health care. In some cases, misconceptions held among the public are cleared up, paving the way toward agreement on what are the real problems and coming up with acceptable solutions for them. The percentage of the cost of HMO membership and insurance premiums going for administration is one such misconception. "People guess, in fact, that HMO and insurance administration costs are about 30 to 40 percent of premiums and that insurer profits add another 10 to 20 percent of the total cost." This means that anywhere from about 40 percent to 60 percent of payments for HMOs or insurance doesn't go for health care. The authors clear up this misconception giving rise to much confusion in trying to deal with the serious problems facing the health-care field, as well as a good deal of resentment against HMOs and insurance companies, by citing that "health plan administrative costs, including profits and marketing, average from 5 to 30 percent of total premium, depending on the plan." This leads to the conclusion that it is not a sudden rise in administrative costs or the greed of health-care providers that is mainly responsible for driving up the costs of health care and will continue to do so for the foreseeable future without effective change in the field. Rising costs of health care from new technologies, consumer expectations and demands, and also misuse of drugs and treatments making patients worse or prolonging their medical problems are the main reason for the rising costs. The frequent misuse of modern-day medicines and treatments cited by the authors is an issue that is starting to receive attention in the media. The price of prescription drugs is one health-care issue already receiving much attention that the authors address. In this discussion, they note that because of committees of physicians and pharmacologists set up by HMOs to identify which drugs were most effective for specific medical problems and set standards for prescribing these according to HMO policies, "all Americans benefited from the new focus on drugs that actually work." Before these committees, eighty-four percent of drugs developed by the pharmaceutical companies were what were know as "class C" drugs that were little better than placebos. As the authors note, in those days not so long ago, drugs were being developed and marketed more to generate sales than remedy medical conditions. The high cost Americans pay for prescription compared to buyers in other countries is another matter the two authors take up. In this, they take the position of American buyers of prescription drugs by making the point that they should not be singled out to bear the disproportionate share of the research and marketing costs going into the drug prices since numbers of persons in countries around the world gain health benefits from the drugs. The wasteful similarities between some prescription drugs, the misuse of some, and growing concerns over costs and use of the drugs with persons under sixty-five are other topics dealt with in the discussion and analysis of the issue of prescription drugs. Halvorson and Isham's fair-minded overview and critique of today's heath-care field should be read by anyone with an interest in and concern about this field central to the quality of life of Americans and the economy. While they recognize that the field's dysfunctions have such deep roots and thorny complexities that "there is no single villain responsible for our troubles and no silver bullet to cure them," undoubtedly some and likely a number of the two authors' approaches to resolving particular troubles or even their solutions to certain problems will be adopted. There is just no way out of the current health-care crisis other than the clear-sighted, comprehensive, cooperative way Halvorson and Isham present. George Halvorson is currently chairman and CEO of Kaiser Permanente, one of the U. S.'s largest health-care organizations. Isham continues as medical director and chief health officer of HealthPartners. ********* 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 ***