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/raid1/www/Hosts/bankrupt/TCR_Public/150702.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, July 2, 2015, Vol. 19, No. 183 Headlines AEROGROW INTERNATIONAL: Posts $1.5 Million Net Loss in FY 2015 ALLIED NEVADA: Stroock Files First Supplemental 2019 Statement ALPHA NATURAL: Creditors Ready for Possible Restructuring Talks ALVION PROPERTIES: Judge Kenneth J. Meyers Now Handles Case ALVION PROPERTIES: Taps Antonik Law Offices as Bankruptcy Counsel AMERICAN AIRLINES: Moody's Raises CFR to 'Ba3', Outlook Stable AMERICAN PIPING: Moody's Withdraws 'B3' Corporate Family Rating ANACOR PHARMACEUTICALS: Amends Kerydin Commercialization Deal APEX TOOLS: Moody's Affirms 'B3' CFR & Revises Outlook to Stable AURORA DIAGNOSTICS: S&P Affirms 'CCC+' CCR, Off Watch Negative AXIALL CORP: S&P Revises Outlook to Negative & Affirms 'BB' CCR BAHA MAR: Asks Court to Enforce Automatic Stay BAHA MAR: Court Approves Interim DIP Financing From Developer BAHA MAR: Proposes $80M Financing From Developer BLU COMPANIES: Case Summary & 18 Largest Unsecured Creditors BMB MUNAI: Eide Bailly Issues Going Concern Qualification BRAND ENERGY: Bank Debt Trades at 2% Off CAESARS ENTERTAINMENT: 2017 Bank Debt Trades at 13% Off CANDAX ENERGY: Obtains Extension to Facility Waiver Until July 22 CHECKERS DRIVE-IN: Moody's Affirms 'B3' CFR, Outlook Stable COSO GEOTHERMAL: Fitch Affirms 'C' Rating on 2026 Certificates COVIS PHARMA: S&P Affirms Then Withdraws 'B' Rating DEEPHAVEN, MN: S&P Cuts Rating on 2013A/B Revenue Bonds to 'BB+' DOUGLAS HIMMELFARB: Hawaii Court Rules on Award of Atty Fees DRYDEN ADVISORY: Motion to Correct Record Denied ELIZABETH ARDEN: S&P Lowers CCR to 'B', Outlook Negative EVERYWARE GLOBAL: S&P Raises CCR to 'CCC+' on Restructuring FIDELITY NATIONAL: Fitch Affirms BB+ Rating on $300MM Sr. Notes FIGUEROA TOWER: Cal. App. Flips Summary Ruling Favoring U.S. Bank FRAC TECH SERVICES: Bank Debt Trades at 17% Off FREMAK INDUSTRIES: Case Summary & 7 Largest Unsecured Creditors GELTECH SOLUTIONS: Issues $200,000 Convertible Note to Reger GENWORTH HOLDINGS: Moody's Gives (P)Ba1 Rating on Sr. Unsec. Debt GLENCOE ACQUISITION: Bid to Dismiss Clawback Complaint Denied GREENSHIFT CORP: Effects 1-for-100 Reverse Stock Split GYMBOREE CORP: Bank Debt Trades at 28% Off H. K. GRAND VENTURE: Voluntary Chapter 11 Case Summary HAWAIIAN HOLDINGS: S&P Raises CCR to 'B+', Outlook Stable HAWKER BEECHCRAFT: Court Rules on Motions in ADA Suit HURLEY MEDICAL: Moody's Affirms 'Ba1' Rating on $99MM Revenue Bonds IMMEDIATE RESPONSE: Hughes' Bid for Reconsideration Denied INC RESEARCH: S&P Affirms 'BB-' Corp. Credit Rating INDEPENDENCE TAX II: Incurs $493,000 Net Loss in Fiscal 2015 INDEPENDENCE TAX IV: Posts $11.2 Million Net Income in Fiscal 2015 INDUSTRIAL SYSTEMS: Case Summary & 20 Largest Unsecured Creditors IRA JOHNNY HARBER: Debts to Renasant Bank Nondischargeable IRON MOUNTAIN: S&P Assigns 'BB' Rating on Sr. Secured Facility J.C. PENNEY: Moody's Revises Outlook to Pos. & Affirms 'Caa1' CFR JAMES LEE NICKESON: Court Rules on Trustee's Clawback Suit JEANNINE N. BEARMAN: Motion to Prevent Turnover Computers Denied JW RESOURCES: Case Summary & 20 Largest Unsecured Creditors KID BRANDS: Vogel Bach Approved to Prosecution Turnover Actions KOLO LLC: Case Summary & 20 Largest Unsecured Creditors LANTHEUS MEDICAL: S&P Raises Corp. Credit Rating to 'B LAXMI REAL ESTATE: Case Summary & 19 Top Unsecured Creditors LEMIRE SCHMEGLAR: US Bank Entitled to Enforce Mortgage Note LIME ENERGY: May Issue 250,000 Shares Under 2010 Stock Plan LOMA LINDA: S&P Lowers Rating on 2014A/B/C Revenue Bonds to 'BB+' LOYALIST GROUP: Executes Forbearance Agreement with Senior Lender MADERA VOLUNTEER: Rural Fire Dept. Files for Bankruptcy MADERA VOLUNTEER: Voluntary Chapter 11 Case Summary METRO AFFILIATES: Has Until Dec. 31 to Object to Claims MOUNT CLEMENS: Moody's Affirms Ba3 Rating on $36.1-Mil. GOULT Debt MURPHY OIL: Moody's Hikes Corp Family Rating to Ba1, Outlook Stable NEWPAGE CORP: Bank Debt Trades at 18% Off NGPL PIPECO: Debt Trades at 4% Off NISKA GAS: S&P Revises Outlook to Developing & Affirms 'B-' CCR NORTEL NETWORKS: Jacqueline M. Moessner Withdrawn as Counsel PATRIOT COAL: Won't Disclose Insider Pay Leading Up to 2nd Ch. 11 PEABODY ENERGY: Debt Trades at 15% Off PORTER BANCORP: Adopts Tax Benefits Preservation Plan PREMIER PAIN: Case Summary & 21 Largest Unsecured Creditors PREMIER PROPERTY: Voluntary Chapter 11 Case Summary PVH CORP: S&P Affirms 'BB+' Corp Credit Rating, Outlook Stable QUINTO & WILKS: Involuntary Chapter 7 Petition Dismissed RECOVERY CENTERS: Taps Paul Bailey to Continue Accounting Services RECOVERY CENTERS: U.S. Trustee Forms Five-Member Creditors Panel RESIDENTIAL CAPITAL: Objection to Subpoena Program Overruled ROBERT J. MEIER: Shrock's Bid for Administrative Expense Denied ROOFING SUPPLY: S&P Revises Outlook to Stable & Affirms 'B' CCR SAAD INVESTMENTS: July 14 Hearing on U.S. Recognition SEADRILL LTD: 2021 Bank Debt Trades at 23% Off SEARS HOLDINGS: ESL Investments Reports 55.2% Equity Stake SELECTBUILD ILLINOIS: Bid to Enforce Permanent Injunction Denied SONY CORP: Moody's Affirms Ba1 Rating on Sr. Unsecured Bonds SS&C TECHNOLOGIES: Moody's Retains 'B1' CFR Over Notes Increase STEPHEN E. CREECH: Court Rules in Suit Against Ormond Oil SUN PRODUCTS: S&P Affirms 'B-' CCR & Revises Outlook to Stable TECHPRECISION CORP: Incurs $3.6 Million Net Loss in FY 2015 TECHPRECISION CORP: Posts Net Loss of $3.6M in Fiscal Year 2015 TENSAR CORP: S&P Cuts Corp. Credit Rating to 'B-', Outlook Stable TIERRA DEL REY: Apartment Complex Enters Ch. 11 with $5.54M Debt TWIN CITIES: S&P Assigns 'BB' Rating on $15.8MM Revenue Bonds TXU CORP: 2014 Bank Debt Trades at 42% Off TXU CORP: 2017 Bank Debt Trades at 42% Off U.S. FOODS: S&P Affirms 'B' Corp. Credit Rating, Off CreditWatch UNITED BANCSHARES: Incurs $343,000 Net Loss in 2014 VIGGLE INC: President and COO Resigns WAUSAU PAPER: S&P Affirms 'B-' CCR & Revises Outlook to Positive [*] Bankruptcy Lawyer Richard Fonfrias Provides Facts on Tax Liens [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* AEROGROW INTERNATIONAL: Posts $1.5 Million Net Loss in FY 2015 -------------------------------------------------------------- AeroGrow International, Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss attributable to common shareholders of $1.5 million on $17.9 million of net revenue for the year ended March 31, 2015, compared with a net loss attributable to common shareholders of $4.1 million on $9.3 million of of net revenue for the year ended March 31, 2014. As of March 31, 2015, the Company had $5.9 million in total assets, $4.6 million in total liabilities, all current, and $1.4 million total stockholders' equity. "Our core strategy for FY 2015 was to grow at a rapid rate while generating at least a modest EBITDA profit, and I think our results are a strong validation of this approach," said President and CEO J. Michael Wolfe. "Our growth was driven largely by sales in our Retail distribution channel, both on-line and in-store, which increased over 200% year over year. We continued to show strong results with our on-line retail partners, including Amazon, Costco.com, Walmart.com, HomeDepot.com, and others. This growth in the on-line channel actually accelerated in Q4, with sales at Amazon growing more than 270% year over year in the March quarter. "We conducted in-store tests with various products at different price points and in a wide range of demographics and geographies. These tests included Costco, Walmart and several others and our results varied widely - ranging from full sell-thru in some locations to very limited in others. We learned a great deal from these tests and have developed a plan to drive promotions, product placement, pricing, and other factors in order to successfully build a strong in-store program over time. "Our Direct-to-Consumer channel generated 21% growth year over year. We're quite pleased with this growth, after several years of decline in this channel, especially given all of the new retail distribution we opened up. This additional distribution - while clearly generating more total sales for us - created quite a bit of competition for our web and catalog business. "I am extremely proud of the progress that we've made here at AeroGrow. Our focus for FY 2016 will be to continue growing our key distribution channels, including testing an international sales model. In addition, we plan to continue our commitment to introducing innovative new products into the market, while emphasizing improved gross margins and profitability." A full-text copy of the Form 10-K is available for free at: http://is.gd/YFlTIK About AeroGrow Boulder, Colo.-based AeroGrow International, Inc., is a developer, marketer, direct-seller, and wholesaler of advanced indoor garden systems designed for consumer use and priced to appeal to the gardening, cooking, and healthy eating, and home and office decor markets. ALLIED NEVADA: Stroock Files First Supplemental 2019 Statement -------------------------------------------------------------- Stroock & Stroock & Lavan LLP, which represents a group of Allied Nevada Gold Corp.'s senior unsecured noteholders, filed its first supplemental verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure. In the court filing, the firm disclosed that as of May 28, 2015, the noteholders or their affiliates are the advisor to or beneficial owner of, or the holder or manager of, various accounts for $30.23 million of the debtor-in-possession loans and CAD$268.93 million of the Allied Nevada Gold Corp. 8.75% Senior Unsecured Notes Due 2019. A list detailing the nature and amount of economic interests held or managed by each member of the group as of May 28, 2015, is available for free at http://is.gd/XvcWcS About Allied Nevada Allied Nevada Gold Corp. ("ANV"), a Delaware corporation, is a publicly traded U.S.-based gold and silver producer engaged in mining, developing and exploring properties in the State of Nevada. ANV was spun off from Vista Gold Corp. in 2006 and began operations in May 2007. Nevada-based mining properties acquired from Vista include the Hycroft Mine, an open-pit heap leach operation located 54 miles west of Winnemucca, Nevada. ANV controls 75 exploration properties throughout Nevada as of Dec. 31, 2014. On March 10, 2015, ANV and 13 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Debtors have requested that their cases be jointly administered under Case No. 15-10503. The cases are assigned to Judge Mary F. Walrath. The Debtors have tapped Blank Rome LLP and Akin Gump Strauss Hauer & Feld LLP as attorneys; FTI Consulting Inc. as financial advisor; Moelis & Company as financial advisor; and Prime Clerk LLC as claims and noticing agent. ANV disclosed $941 million in total assets and $664 million in total debt as of Dec. 31, 2014. * * * Allied Nevada Gold Corp., et al.'s plan of reorganization incorporates the terms of the prepetition plan support agreement reached by the Debtors with holders of at least 67% of the aggregate outstanding principal amount of the Notes and 100% of the Holders of Secured ABL Claims and Secured Swap Claims. Pursuant to the plan support agreement, each Holder of an Allowed Secured ABL Claim will receive (i) its Pro Rata share of the Secured ABL/Swap Cash Payments not made prior to the Effective Date and (ii) an amount of New First Lien Term Loans in an aggregate principal amount equal to (A) the amount of allowed claims pursuant to Section 2.7(b) of the Plan minus (B) the amount paid in cash in respect of the Secured ABL Claims pursuant to clause (i) of Section 2.7(c) of the Plan. In addition, for the avoidance of doubt, any unpaid amounts owed to the holders of Secured ABL Claims pursuant to Section 11 of the DIP Facility Order will be due and payable in cash on the Effective Date. A full-text copy of the Disclosure Statement dated April 24, 2015, is available at http://bankrupt.com/misc/ALLIEDds0424.pdf ALPHA NATURAL: Creditors Ready for Possible Restructuring Talks --------------------------------------------------------------- Matt Jarzemsky, writing for The Wall Street Journal, reported that creditors of Alpha Natural Resources Inc., which is among the largest coal producers in the U.S., have hired advisers to prepare for possible restructuring talks ahead of an August debt payment, as the coal-mining company grapples with an industry-wide slump. According to the Journal, citing people familiar with the matter, holders of Alpha's senior loans, including Citigroup Inc. and hedge fund Davidson Kempner Capital Management LLC, are working with law firm Davis Polk & Wardwell LLP and Ducera Partners LLC, a new financial advisory firm led by former Perella Weinberg Partners banker Michael Kramer. Holders of Alpha's secured bonds have enlisted law firm Kirkland & Ellis LLP for advice on the talks, the Journal related, further people familiar with the bondholder group. The people, the Journal noted, said the bondholders include mutual-fund giants Capital Research & Management Co. and Franklin Resources Inc., Bain Capital debt-investment arm Sankaty Advisors LLC and hedge fund Blue Mountain Capital Management LLC. About Alpha Natural Alpha Natural is a coal supplier, ranked second largest among publicly traded U.S. coal producers as measured by 2014 consolidated revenues of $4.3 billion. As of Dec. 31, 2014, the Company operated 60 mines and 22 coal preparation plants in Northern and Central Appalachia and the Powder River Basin, with approximately 8,900 employees. Alpha Natural reported a net loss of $874.9 million in 2014, a net loss of $1.1 billion in 2013 and a net loss of $2.4 billion in 2012. * * * As reported by the TCR on June 4, 2015, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Alpha Natural Resources Inc. to 'CCC+' from 'B'. The TCR reported on April 8, 2015, that Moody Investor's Service downgraded the corporate family rating of Alpha Natural Resources, Inc. to Caa3 from Caa1 and the probability default rating to Caa3-PD/LD from Caa1-PD. ALVION PROPERTIES: Judge Kenneth J. Meyers Now Handles Case ----------------------------------------------------------- The Hon. Laura K. Grandy of the U.S. Bankruptcy Court for the Southern District of Illinois reassigned Alvion Properties Inc.'s Chapter 11 case and further proceedings to Judge Kenneth J. Meyers. About Alvion Properties Alvion Properties, Inc., filed a Chapter 11 bankruptcy petition (Bankr. S.D. Ill. Case No. 15-40462) on May 14, 2015. Karnes Medley, as president, signed the petition. The Debtor disclosed total assets of $1 billion and total debts of $2.7 million in its petition. Judge Laura K. Grandy presides over the case. Antonik Law Offices serves as the Debtor's counsel. The Court has yet to set a general bar date for filing proofs of claim. The deadline for governmental units to file claims is Nov. 10, 2015. ALVION PROPERTIES: Taps Antonik Law Offices as Bankruptcy Counsel ----------------------------------------------------------------- Alvion Properties Inc., asks the U.S. Bankruptcy Court for the Southern District of Illinois for permission to employ Douglas A. Antonik and Antonik Law Offices as counsel. To the best of the Debtor's knowledge, Mr. Antonik has no connection with the creditors or any other parties-in-interest. The hourly rates of the firm's personnel are: Mr. Antonik $250 Associate Attorneys $100 to $200 Law Clerks $100 Paralegals $50 to $75 The Debtor has agreed to and paid a retainer fee of $6,717 to Antonik Law Offices which includes the filing fee of $1,717. Prepetition services rendered by the Antonik Law Office in the amount of $2,273 were paid prepetition from the $6,717 retainer well as the filing fee of $1,717 leaving a balance of $2,726 of the retainer in the trust account. The firm can be reached at: Douglas A. Antonik, Esq. ANTONIK LAW OFFICES 3405 Broadway - P.O. Box 594 Mt. Vernon, IL 62864 Tel: (618) 244-5739 Fax: (618) 244-9633 E-mail: antoniklaw@charter.net About Alvion Properties Alvion Properties, Inc. filed a Chapter 11 bankruptcy petition (Bankr. S.D. Ill. Case No. 15-40462) on May 14, 2015. Karnes Medley, as president, signed the petition. The Debtor disclosed total assets of $1 billion and total debts of $2.7 million in its petition. Judge Laura K. Grandy presides over the case. Antonik Law Offices serves as the Debtor's counsel. The Court has yet to set a general bar date for filing proofs of claim. The deadline for governmental units to file claims is Nov. 10, 2015. AMERICAN AIRLINES: Moody's Raises CFR to 'Ba3', Outlook Stable -------------------------------------------------------------- Moody's Investors Service upgraded most of its ratings of American Airlines Group, Inc. ("AAG"), including the Corporate Family Rating to Ba3 from B1, Senior Secured rating assigned to corporate obligations to Ba1 (LGD2) from Ba2 (LGD2), and Senior Unsecured to B1 (LGD5) from B3 (LGD5). Moody's also upgraded the majority of the senior tranches of the Enhanced Equipment Trust Certificate ("EETC") ratings and confirmed most of the ratings assigned to the junior tranche EETCs. The rating outlook is stable. The rating action resolves the review for upgrade initiated on June 16, 2015 following the implementation of Moody's change to its approach for standard adjustments for operating leases. RATINGS RATIONALE "The upgrade to Ba3 considers the benefits to American of key industry drivers including the expected sharply lower cost for jet fuel, a supportive outlook for passenger demand and ongoing capacity discipline in the pursuit of earning targeted returns on invested capital. Moody's expects these factors to contribute to strengthening of credit metrics through 2016 to levels reflective of the Ba-rating category," said Senior Credit Officer, Jonathan Root. The upgrade also reflects the reduction in adjusted debt due to changes in Moody's approach for capitalizing operating leases. Moody's reduced its debt adjustment to $14 billion from about $22.4 billion for AAG, providing a one turn decrease in Debt to EBITDA to 4.2 times at 2014 year end. AAG's adjusted debt is expected to be about $40 billion at 2015 year end. The stable outlook reflects Moody's expectation that funded debt and adjusted debt are not likely to meaningfully decline because of the company's fleet replacement strategy, which will constrain free cash flow generation in upcoming years. AAG's annual capital investment of about $6.5 billion in 2015 and about $5.5 billion in 2016 will be one and one half to two times larger than those of its legacy peers. Moody's anticipates negative free cash flow for American in 2015 and positive free cash flow of between $1.0 billion and $1.5 billion in 2016, if the cost of fuel remains below $2.20 per gallon and passenger unit revenues do not meaningfully decline from current levels. Going forward, Moody's believes that more of positive free cash flow will likely fund returns to shareholders rather than debt reduction. The company's large order book will require higher capital investment than its peers after 2016. The larger investment and weaker free cash flow will likely lead to increases in funded debt, slowing the pace of improvement in AAG's credit metrics profile beyond 2016. The Ba3 rating recognizes AAG's EBIT and EBITDA margins (Moody's adjusted basis) of about 20% and about 26%, respectively, which are competitive with those of Southwest Airlines and JetBlue and stronger than those of Delta and United. The large investment in new aircraft will support the company's profit margins in future years, given improvements in fuel efficiency and maintenance expense, helping to limit upward pressure on financial leverage with the increases in adjusted debt that Moody's anticipates. Moody's expects liquidity to remain very good, although it believes unrestricted cash and short-term investments is likely to decline towards about $4.0 billion starting in 2016, following completion of the integration of the airline operations. Of the 17 A-tranche EETCs outstanding, ten have been upgraded by one notch in step with the upgrade of the Corporate Family rating and the remainder have been confirmed. Nine of the ten B-tranche EETCs have been confirmed and one upgraded and five of the six C-tranches have been confirmed and one upgraded. The ratings of the EETCs consider our estimates of the relative attractiveness or demand for particular aircraft models and vintages under a reorganization scenario, our estimates of loan-to-value and presence of cross-default and cross-collateralization across the transactions and the alignment of the LTVs with Moody's EETC notching grids found in our EETC rating methodology published in 2010. The actions on the EETCs reflect Moody's view that notwithstanding generally lower loans-to-value, older transactions with older vintage aircraft that lack cross-default or cross-collateralization have higher probabilities of default than more recent transactions that are crossed and are collateralized by younger vintage aircraft, some of which have significantly lower coupons. A positive rating action could occur if AAG reduces debt to limit pressure on credit metrics when industry fundamentals weaken, including declines in demand or higher fuel prices that cannot be covered by higher fares. Maintaining unrestricted cash and availability on revolvers above $6.0 billion while adjusted debt remains above $35 billion following the completion of the merger integration could also support a positive rating action. A combination of Debt to EBITDA of less than 3.5 times, Funds from Operations + Interest to Interest of above 5 times and an EBITDA margin that is sustained near 25% could support an upgrade. Sustaining positive free cash flow that approaches 5% of debt, a majority of which is applied to debt reduction could also support a positive rating action as could applying any excess cash to the repayment of debt or buyout of aircraft leases rather than share repurchases. A negative rating action could occur if AAG's EBITDA margin approaches 17%. A sustained decline in demand that led to declines in yields of more than 8% with no corresponding offsets to costs could pressure the ratings as could aggregate liquidity (including availability on revolving credit facilities) of less than $5.0 billion. Debt to EBITDA that approaches 5.0 times, Funds from Operations + Interest to Interest that approaches 3.0 times, Retained Cash Flow to Net Debt that approaches 15%, or a sustained increase in the cost of jet fuel that is not offset by higher fares and or debt-funding of share repurchases could result in a negative rating action. Changes in AAG's Corporate Family rating, in Moody's opinion of the importance of particular aircraft models to its network, or in Moody's estimates of aircraft market values, which will affect estimates of loan-to-value can result in changes to EETC ratings. American Airlines Group is the holding company for American Airlines and US Airways. Together with regional partners, operating as American Eagle and US Airways Express, the airlines operate an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries. The methodologies used in these ratings were Global Passenger Airlines published in May 2012 and Enhanced Equipment Trust And Equipment Trust Certificates published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Upgrades: Issuer: America West Airlines, Inc. Senior Secured Enhanced Equipment Trust Series 2000-1G1, Upgraded to Baa2 from Baa3 Issuer: American Airlines Group Inc. Probability of Default Rating, Upgraded to Ba3-PD from B1-PD; Corporate Family Rating, Upgraded to Ba3 from B1; and Senior Unsecured Regular Bond/Debenture, Upgraded to B1 (LGD5) from B3 (LGD5) Issuer: American Airlines, Inc. Senior Secured Bank Credit Facility, Upgraded to Ba1 (LGD2) from Ba2 (LGD2); Senior Secured Enhanced Equipment Trust Series 2001-1A1, Upgraded to B1 from B2; Senior Secured Enhanced Equipment Trust Series 2011-1A, Upgraded to A3 from Baa1; Senior Secured Enhanced Equipment Trust Series 2001-1B, Upgraded to Caa2 from Caa3; and Senior Secured Enhanced Equipment Trust Series 2001-1C, Upgraded to Caa2 from Caa3 Issuer: HILLSBOROUGH COUNTY AVIATION AUTHORITY, FL Senior Secured Revenue Bonds, Upgraded to B1 (LGD5) from B3 (LGD5) Issuer: Indianapolis Airport Authority, IN Revenue Bonds, Upgraded to B1 (LGD5) from B3 (LGD5) Issuer: Pennsylvania Economic Dev. Fin. Auth. Senior Unsecured Revenue Bonds, Upgraded to B1 (LGD5) from B3 (LGD5) Issuer: Phoenix Industrial Development Authority, AZ Senior Unsecured Revenue Bonds, Upgraded to B1 (LGD5) from B3 (LGD5) Issuer: US Airways Group, Inc. Senior Unsecured Regular Bond/Debenture, Upgraded to B1 (LGD5) from B3 (LGD5) Issuer: US Airways, Inc. Senior Secured Bank Credit Facility, Upgraded to Ba1 (LGD2) from Ba2 (LGD2); Senior Secured Enhanced Equipment Trust Series 2000-3C, Upgraded to Ba3 from B2; Senior Secured Enhanced Equipment Trust Series 2012-1C, Upgraded to Ba3 from B1; Senior Secured Enhanced Equipment Trust Series 2012-2C, Upgraded to Ba3 from B1; Senior Secured Enhanced Equipment Trust Series 2013-1A, Upgraded to A3 from Baa1; Senior Secured Enhanced Equipment Trust Series 2012-2A, Upgraded to A3 from Baa1; Senior Secured Enhanced Equipment Trust Series 2011-A, Upgraded to A3 from Baa1; Senior Secured Enhanced Equipment Trust Series 2010-1A, Upgraded to A3 from Baa1; Senior Secured Enhanced Equipment Trust Series 2012-1A, Upgraded to A3 from Baa1; and Senior Secured Enhanced Equipment Trust Series 2001-1G, Upgraded to Baa1 from Baa2 Confirmations: Issuer: America West Airlines, Inc. Senior Secured Enhanced Equipment Trust Series 2001-1G, Confirmed at Ba1; Senior Secured Enhanced Equipment Trust Series 1998-1B, Confirmed at Ba1; Senior Secured Enhanced Equipment Trust Series 1998-1A, Confirmed at Baa1; and Senior Secured Enhanced Equipment Trust Series 1999-1G1, Confirmed at Baa3 Issuer: American Airlines, Inc. Senior Secured Enhanced Equipment Trust Series 2011-1B, Confirmed at Ba1 Issuer: US Airways, Inc. Senior Secured Enhanced Equipment Trust Series 2001-C, Confirmed at Ba3; Senior Secured Enhanced Equipment Trust Series 2011-B, Confirmed at Ba1; Senior Secured Enhanced Equipment Trust Series 2012-2B, Confirmed at Ba1; Senior Secured Enhanced Equipment Trust Series 2010-1B, Confirmed at Ba1; Senior Secured Enhanced Equipment Trust Series 1999-1C, Confirmed at Ba3; Senior Secured Enhanced Equipment Trust Series 2013-1B, Confirmed at Ba1; Senior Secured Enhanced Equipment Trust Series 2012-1B, Confirmed at Ba1; Senior Secured Enhanced Equipment Trust Series 1998-1B, Confirmed at Ba1; Senior Secured Enhanced Equipment Trust Series 1999-1A, Confirmed at Baa1; Senior Secured Enhanced Equipment Trust Series 1999-1A2, Confirmed at Baa1; Senior Secured Enhanced Equipment Trust Series 2000-3G, Confirmed at Baa1; Senior Secured Enhanced Equipment Trust Series 2000-2G, Confirmed at Baa1; Senior Secured Enhanced Equipment Trust Series 1998-1A, Confirmed at Baa1; and Senior Secured Equipment Trust Series 1999-1B, Confirmed at Ba1 Outlook Actions: Issuer: America West Airlines, Inc. Outlook, Changed To Stable From Rating Under Review Issuer: American Airlines Group Inc. Outlook, Changed To Stable From Rating Under Review Issuer: American Airlines, Inc. Outlook, Changed To Stable From Rating Under Review Issuer: US Airways Group, Inc. Outlook, Changed To Stable From Rating Under Review Issuer: US Airways, Inc. Outlook, Changed To Stable From Rating Under Review AMERICAN PIPING: Moody's Withdraws 'B3' Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service withdrew the ratings for American Piping Products, Inc. including its B3 corporate family rating, B3-PD probability of default rating and Caa1 senior secured notes rating as the company has redeemed its senior secured notes. RATINGS RATIONALE American Piping Products, Inc., headquartered in Chesterfield, Missouri is a distributor of carbon and alloy seamless pipe, welded pipe, fittings and flanges. Its primary end-markets include the oil and gas, refining, petrochemical and power generation sectors. American Piping generated sales of $206 million during the twelve months ended March 30, 2015. The company is owned by Edgewater Funds, certain co-investors and senior management. ANACOR PHARMACEUTICALS: Amends Kerydin Commercialization Deal ------------------------------------------------------------- Anacor Pharmaceuticals, Inc., announced an amendment to its distribution and commercialization agreement with Sandoz Inc., a Novartis company, pursuant to which PharmaDerm, the branded dermatology division of Sandoz, distributes and commercializes KERYDIN (tavaborole) topical solution, 5% in the United States. Pursuant to the amendment, Sandoz will increase its commercial investment in KERYDIN in 2015, and Anacor will contribute $20 million to Sandoz, primarily focused on consumer-directed commercialization activities. The parties' increased investment in support of KERYDIN in 2015 includes Sandoz's previously expanded field-sales force and a new multi-channel integrated marketing campaign. In addition, the amendment increases the minimum profit-sharing payments to Anacor for 2016 to $65 million from $45 million and establishes new minimum profit-sharing payments to Anacor for 2017 of $65 million. The amendment also reduces the price associated with Anacor's option to repurchase all rights in KERYDIN from Sandoz on Dec. 31, 2017, as determined pursuant to the distribution and commercialization agreement. "We are pleased with Sandoz's increased investment to support the continued long-term growth of the KERYDIN brand and believe that our contribution to fund the consumer-directed investment will help increase brand awareness among the patients suffering from onychomycosis who are most likely to use KERYDIN and motivate them to seek treatment from their physicians," said Paul L. Berns, chairman and chief executive officer of Anacor. About Anacor Pharmaceuticals Palo Alto, Calif.-based Anacor Pharmaceuticals (NASDAQ: ANAC) is a biopharmaceutical company focused on discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. Anacor has discovered eight compounds that are currently in development. Its two lead product candidates are topically administered dermatologic compounds - tavaborole, an antifungal for the treatment of onychomycosis, and AN2728, an anti-inflammatory PDE-4 inhibitor for the treatment of atopic dermatitis and psoriasis. Anacor reported a net loss of $87.1 million on $20.7 million of total revenues for the year ended Dec. 31, 2014, compared with net income of $84.8 million on $17.2 million of total revenues for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $214.88 million in total assets, $137.34 million in total liabilities, $4.95 million in redeemable common stock and $72.59 million in total stockholders' equity. APEX TOOLS: Moody's Affirms 'B3' CFR & Revises Outlook to Stable ---------------------------------------------------------------- Moody's Investors Service affirmed Apex Tool Group, LLC's Corporate Family Rating at B3, the Probability of Default Rating at B3-PD, the company's first lien senior secured credit facilities, consisting of $175 million revolver due 2018 and $835 million term loan due 2020, at B2, and the $450 million senior unsecured notes due 2021 at Caa1. The rating outlook was revised to stable. These rating actions have been taken: Corporate Family Rating, affirmed at B3; Probability of Default Rating, affirmed at B3-PD; $175 million senior secured revolving credit facility due 2018, affirmed at B2, LDG3; $835 million senior secured term loan facility due 2020, affirmed at B2, LGD3; $450 million senior unsecured notes due 2021, affirmed at Caa1, LGD4; The rating outlook was revised to stable from negative. RATINGS RATIONALE The rating outlook change to stable from negative reflects the decline in Apex's adjusted debt-to-EBITDA over the past year along with our expectation that adjusted debt-to-EBITDA will decline further in 2015 and 2016, closer to 7.0x. The stable outlook also considers benefits from operational initiatives not yet fully realized and our expectation that trailing-twelve month earnings will increase by early 2016 as a result of these initiatives. The B3 Corporate Family Rating reflects Apex's solid market positions within its hand and power tool business segments, breadth of product offerings and brand names, its global reach, extensive operational footprint and distribution channels, and diversity of customers and industries served. The ratings also reflect the company's high adjusted debt-to-EBITDA and adjusted debt-to-capitalization leverage, small equity base, highly competitive industry, and cyclicality within its various end markets. Moody's expects Apex to expand its profitability through a combination of higher sales and a reduced cost structure as a result of 2013 and 2014 manufacturing restructuring and procurement initiatives. More specifically, we expect EBITA margins to improve in 2015 and 2016 driven by continued operational improvements and international market share gains. The company has good liquidity supported by a cash balance of $84 million at March 27, 2015, a $175 million senior secured revolving credit facility, cash flow from operations and lack of significant debt maturities until 2018, when its revolving credit facility expires. The company's liquidity is constrained by seasonal working capital needs. As of March 27, 2015, the company had approximately $77 million of remaining revolver availability, after accounting for $95 million of borrowings and $3.0 million of letter of credit commitments. The ratings incorporate Moody's expectation that Apex will have reasonable room under its 4.75x senior secured net leverage covenant in the credit agreement, which is applicable only if revolver outstanding balance exceeds $35 million. Apex was in compliance with its senior secured net leverage covenant as of the end of 1Q15. The stable outlook reflects our expectation that revenues and earnings will improve such that adjusted debt-to-EBITDA will be closer to or less than 7.0x, EBITA margin will exceed 10% and EBITA-to-interest coverage will approach 2.0x. Moody's indicated that a rating upgrade would be predicated upon adjusted debt leverage approaching 6.0x and EBITA-to-interest coverage above 2.0X, both on a sustainable basis, driven by earnings growth and margin expansion. Downward pressure on the rating could result if, over an extended period of time, the company's adjusted debt-to-EBITDA remains above 7.0x, adjusted debt-to-capitalization remains above 75%, or EBITA-to interest coverage falls below 1.5x. A rating downgrade could also occur if liquidity weakens significantly. The principal methodology used in these ratings was Global Manufacturing Companies published in July 2014. Apex Tool Group, LLC, headquartered in Sparks, MD, is a global manufacturer and supplier of hand and power tools for industrial, commercial, and do-it-yourself customers. Apex was established as a joint venture between Danaher Tool Group and Cooper Industries' Cooper Tools in July 2010. On Feb. 1, 2013, the company was acquired by the private equity sponsor, Bain Capital Partners LLC, for $1.55 billion. Apex designs, manufactures, markets and sells proprietary brands, and it also designs and manufactures private label tool brands for retailers. The company operates two business segments: Hand Tools (representing approximately 73% of its total revenues) and Power Tools (representing approximately 27% of total revenues). The company serves customers in automotive, aerospace, electronics, hardware, energy, and consumer retail industries. Apex has operations in North America, Europe, Asia, Australia and Latin America. For the trailing twelve months ended March 27, 2015, the company generated about $1.5 billion in revenues. AURORA DIAGNOSTICS: S&P Affirms 'CCC+' CCR, Off Watch Negative -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on Palm Beach Gardens, Fla.-based Aurora Diagnostic Holdings LLC, including the 'CCC+' corporate credit rating. At the same time, S&P removed all ratings from CreditWatch, where it placed them with negative implications on April 20, 2015, following the company's announcement that it would not file its form 10-K on a timely basis. In addition, S&P affirmed its 'CCC+' issue-level rating on Aurora's senior secured debt. The recovery rating on this debt is '3', reflecting S&P's expectation for meaningful (50% to 70%, at the high end of the range) recovery in the event of payment default. S&P also affirmed its 'CCC-' issue-level on the company's senior unsecured notes. The recovery rating on the notes is '6', reflecting S&P's expectation for negligible (0% to 10%) recovery on this debt in the event of default. "Our rating action on Aurora follows the company's filing of its financial statements for the periods ending Dec. 31, 2014, and March 31, 2015, with operating results that were broadly consistent with our expectations," said Standard & Poor's credit analyst Shannan Murphy. S&P's ratings on Aurora reflect S&P's view that the company's business risk profile remains "vulnerable," characterized by the company's narrow operating focus, which S&P believes makes it especially susceptible to reimbursement risk. Changes in Medicare payments accounted for a large decline in Aurora's 2013 EBITDA; Medicare reimbursement increased by less than 1% in each of 2014 and 2015. S&P believes Aurora and its peers face significant uncertainty regarding future Medicare reimbursement rates, given the potential for significant changes as Medicare moves toward a market-based system of determining laboratory fees. S&P's stable outlook on Aurora reflects S&P's view that the company's liquidity is sufficient to support its operations for at least the next year. It also reflects S&P's view that EBITDA is unlikely to improve to levels sufficient to support the capital structure for the long term. S&P could lower its rating if Aurora depletes its cash balances and is forced to draw meaningfully on its revolver, as this might cause S&P to view the possibility of a default within the next 12 months as heightened. In S&P's view, this could happen if the company experiences higher customer losses, or if tightening reimbursement results in revenue per accession declines that are more severe than our current low-single-digit assumption. Under this scenario, S&P could see tightening covenant cushions that result in restricted access to the company's revolver. S&P could consider raising its rating if Aurora is able to generate sustainable EBITDA of at least $45 million per year, a level S&P believes would allow the company to generate sufficient cash flow to sustainably cover its fixed charges without drawing on the credit facility. S&P believes this scenario would require EBITDA margin expansion of about 400 basis points, which S&P views as unlikely given its expectations for falling reimbursement. AXIALL CORP: S&P Revises Outlook to Negative & Affirms 'BB' CCR --------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on Georgia-based Axiall Corp. to negative from stable. At the same time, S&P affirmed its ratings on Axiall, including its 'BB' corporate credit rating. "The outlook revision reflects our view of risks to the company's credit quality arising from weaker-than-expected earnings," said Standard & Poor's credit analyst Sebastian Pinto-Thomaz. "The company's earnings as of year-end 2014 and the first quarter of 2015 have been below our expectations," he added. Although S&P anticipates an improvement in the second half of the year, it believes the improvement might be slower than it initially expected. S&P's negative rating outlook reflects the risk that the company might not improve performance to levels where credit measures will be appropriate for current ratings. At the current rating, S&P expects the ratio of FFO to debt and adjusted debt to EBITDA to be above 20% and below 4x, respectively. As of March 31, 2015, the ratios were 19.7% and 3.7x, respectively. S&P's assessment of Axiall's business risk as "fair" reflects its position among the leading North American producers of chlorine, caustic soda, and vinyl. S&P regards liquidity as "adequate" as defined in its criteria, with liquidity sources exceeding uses by more than 1.2x, and sources minus uses remaining positive even if EBITDA is 15% lower than it projects. The negative rating outlook reflects an at least one-in-three chance of a downgrade during the next 12 months. S&P could lower the ratings during the next year if business conditions or acquisitions drive adjusted debt to EBITDA above 4x or to a point where FFO to adjusted debt remains below 20%, on a sustained basis. S&P could also lower ratings if financial results remain weak during the second half of the year or outlays related to the Lotte Chemical Corp. joint venture are greater than expected. S&P could consider a stable outlook if performance improves in the second half of the year. S&P would also consider a stable outlook if the ratio of adjusted debt to EBITDA and FFO to debt ratios remain steadily below 4x and improve to above 20%, respectively. BAHA MAR: Asks Court to Enforce Automatic Stay ---------------------------------------------- Northshore Mainland Services Inc. and its affiliated debtors are asking the U.S. Bankruptcy Court for the District of Delaware to enter an order (i) enforcing and restating the automatic stay and ipso facto provisions of the Bankruptcy Code, and (ii) authorizing Northshore to act as the foreign representative on behalf of the Debtors' estates in any judicial or other proceedings in a foreign country, including any proceedings in The Bahamas. Laura Davis Jones, Esq., at Pachulski Stang Ziehl Jones LLP, explains that given the nature and organizational structure of the Debtors' businesses, the Debtors regularly and extensively transact with vendors and suppliers of goods and services located outside the United States, particularly in The Bahamas. These foreign creditors and counterparties are not likely to be familiar with the Bankruptcy Code, particularly with respect to the various protections it affords to chapter 11 debtors, including the automatic stay. Accordingly, the Debtors ask the Court to enter an order enforcing and restating the automatic stay and ipso facto provisions of the Bankruptcy Code. In addition, the Debtors intend to seek assistance from the Supreme Court of The Commonwealth of The Bahamas in order to further protect the Debtors' assets and operations in The Bahamas. In order to seek such relief, the Debtors must be authorized to act as a "foreign representative" on behalf of the Debtors' estates to seek such relief from the Supreme Court of The Commonwealth of The Bahamas. Accordingly, the Debtors seek authorization from the U.S. Bankruptcy Court to act as a "foreign representative" for purposes of protecting the assets and interests of the Debtors' estates. About Baha Mar Baha Mar -- http://www.bahamar.com-- is a 3.3 million square foot resort complex located in Cable Beach, Nassau, The Bahamas. A prominent resident in The Bahamas, Sarkis Izmirlian, conceptualized the project and has invested almost $900 million from the project. With the support of The Bahamian Government, the project commenced in 2005. When completed, Baha Mar will feature elite hotels with gaming, entertainment, private residences, shopping and natural attractions that reflect an authentic Bahamian experience. Amenities will include a Jack Nicklaus Signature golf course; 200,000 square feet of flexible convention facilities, including a 2,000-seat entertainment venue; art galleries featuring Bahamian art; more than 40 restaurants, bars and clubs; global luxury designer and local artisan boutiques; and 20 acres of exquisitely landscaped beach and pool experiences, including a beachfront sanctuary with native Bahamian flora and fauna. With the Baha Mar project only 97% complete as a result of construction delays, Northshore Mainland Services Inc., Baha Mar Ltd., and 13 other affiliated entities sought bankruptcy protection in Delaware on June 29, 2015, with the goal of completing the project while under the umbrella of the bankruptcy court. The cases are jointly administered, with joint pleadings under lead debtor Northshore Mainland Services Inc. (Bankr. D. Del. Case No. 15-11402). Milbank, Tweed, Hadley & McCoy, LLP and Kobre & Kim, LLP are acting as legal advisors, and Moelis & Company is acting as financial advisor to the filing entities. BAHA MAR: Court Approves Interim DIP Financing From Developer ------------------------------------------------------------- Baha Mar Ltd. on July 1 moved forward with its Chapter 11 process, receiving Court approval for, among other key initiatives, the continued payment of salaries and benefits, payment of ordinary course suppliers and vendors for any post-petition claims, and the operation of certain customer loyalty and other programs. To enable Baha Mar to undertake these initiatives, the Court approved the interim Debtor in Possession (DIP) financing arranged by Sarkis Izmirlian, Baha Mar's developer. Specifically, the total DIP facility is up to $80 million of which up to $30 million will be utilized by Baha Mar over the next 30 days. Mr. Izmirlian stated, "Our goal is to complete construction and successfully open Baha Mar as a world-class destination resort that will attract guests from across the globe and serve as a key economic sparkplug in The Bahamas. The Chapter 11 process provides us the best path to position us to achieve this goal." More information about Baha Mar's voluntary undertaking of the Chapter 11 process is available at www.bmpathforward.com Information for suppliers and vendors is available at 855-410-7357 (U.S.) or +1-646-795-6963 (International). The court case number is 15-11402. Milbank, Tweed, Hadley & McCloy, LLP and Kobre & Kim, LLP are acting as legal advisors, and Moelis & Company is acting as financial advisor to the filing entities. About Baha Mar Baha Mar -- http://www.bahamar.com-- is a 3.3 million square foot resort complex located in Cable Beach, Nassau, The Bahamas. A prominent resident in The Bahamas, Sarkis Izmirlian, conceptualized the project and has invested almost $900 million from the project. With the support of The Bahamian Government, the project commenced in 2005. When completed, Baha Mar will feature elite hotels with gaming, entertainment, private residences, shopping and natural attractions that reflect an authentic Bahamian experience. Amenities will include a Jack Nicklaus Signature golf course; 200,000 square feet of flexible convention facilities, including a 2,000-seat entertainment venue; art galleries featuring Bahamian art; more than 40 restaurants, bars and clubs; global luxury designer and local artisan boutiques; and 20 acres of exquisitely landscaped beach and pool experiences, including a beachfront sanctuary with native Bahamian flora and fauna. With the Baha Mar project only 97% complete as a result of construction delays, Northshore Mainland Services Inc., Baha Mar Ltd., and 13 other affiliated entities sought bankruptcy protection in Delaware on June 29, 2015, with the goal of completing the project while under the umbrella of the bankruptcy court. The cases are jointly administered, with joint pleadings under lead debtor Northshore Mainland Services Inc. (Bankr. D. Del. Case No. 15-11402). Milbank, Tweed, Hadley & McCoy, LLP and Kobre & Kim, LLP are acting as legal advisors, and Moelis & Company is acting as financial advisor to the filing entities. BAHA MAR: Proposes $80M Financing From Developer ------------------------------------------------ Northshore Mainland Services Inc. and its affiliated debtors are asking the U.S. Bankruptcy Court for the District of Delaware to enter interim and final orders authorizing them to use cash collateral and access up to $80 million of DIP financing from developer Sarkis Izmirlian's Granite Ventures Ltd. Laura Davis Jones, Esq., at Pachulski Stang Ziehl Jones LLP, explains that the Debtors need immediate access to the DIP Facility in order to finance their operations and preserve the value of their assets -- principally the Baha Mar project -- for the benefit of all stakeholders. In the absence of the liquidity provided by the DIP Facility, the Debtors are projected to run out of cash by July 3, 2015. The Project is approximately 97% complete and is the product of years of construction and billions of dollars already lent and invested. Ms. Jones avers that it is critical that this asset be preserved. The Debtors filed the Chapter 11 Cases in order to access the DIP financing, which will fund limited business operations as set forth in the budget while the Debtors seek to resolve the various issues surrounding the Project's completion -- including the failure of general contractor CCA to complete its work. Prior to filing the Chapter 11 Cases, the Debtors negotiated and documented the DIP Facility, which provides for $30 million of financing on an interim basis, increasing to $80 million of availability upon final approval by the Bankruptcy Court. As of the Petition Date, the Debtors' unaudited balance sheets reflected total assets of approximately $3.1 billion and total liabilities of approximately $2.7 billion. The Debtors' material debt obligations principally consist of approximately $2.4 billion in loans under a secured credit agreement with CEXIM Bank, approximately $140 million allegedly owed to CCA under their main construction contract, and approximately $123 million in trade debt. Use of Cash Collateral The Debtors seek authorization to use cash collateral, and grant adequate protection to the agents, namely: Citicorp International Limited, as Facility Agent, Citicorp International Limited, as Offshore Security Agent, and Citibank N.A. Bahamas, as Onshore Security Agent. The Debtors have approximately $9.33 million in cash on hand as of the Petition Date. The Debtors propose to use such cash as follows: (i) Melia Cash. The Debtors will continue to operate the Melia Nassau Beach resort during the Chapter 11 cases. As of the Petition Date, approximately $3.26 million is held in bank accounts that are used to support the operations of Melia (the "Melia Cash"). The Debtors propose to continue to use the Melia Cash solely to support the operations of the Melia. (ii) Customer Deposits. As of the Petition Date, approximately $2.5 million is held by certain Debtors in accounts used to hold, honor and pay customer deposits in the ordinary course of business (the "Customer Deposit Cash"). The Debtors propose to continue to use the Customer Deposit Cash solely in accordance with any applicable agreements or laws. (iii) All Other Cash. It is possible that the Debtors will also receive cash from the Bahamian government reimbursing the Debtors for infrastructure improvements around the Project. The Debtors propose to use this cash and any other cash to generally finance their operations in the Chapter 11 cases, subject to the Budget. Aside from cash generated by the Melia property or any funds from the Bahamian government, the Debtors do not anticipate generating any material amount of cash through operations. However, to the extent any such cash is generated, the Debtors request authority to use it in accordance with the Interim Order and Budget. DIP Facility The Debtors will access DIP financing on these terms: * Borrower: Baha Mar Ltd. * Guarantors: Northshore Mainland Services, et al. * DIP Lender: Granite Ventures Ltd. * Admin. Agent: An entity to be determined by the lenders. * Commitment: Loans to be advanced in an aggregate principal of $80 million, of which $30 million will be available on an interim basis. * All obligations of the Debtors under the DIP Facility shall bear interest at the LIBOR 4001(c)(1)(B); Rate payable-in-kind monthly in arrears. On each interest payment date, the outstanding amount of the DIP Loans will be increased by the amount of interest accrued during the applicable period and such increased amount will bear interest at the LIBOR Rate. The LIBOR Rate will be equal to LIBOR plus 6.0% per annum. The default interest rate will be the interest rate then in effect plus 2% per annum. * Term: All loans are to be repaid in full at the earliest of (i) the 45th day following the Petition Date if, as of such date, the Bankruptcy Court will not have entered the Final Order, (ii) nine months following the Petition Date, (iii) the effective date of a chapter 11 plan (a "Plan") in the Chapter 11 cases which is confirmed by an order of the Bankruptcy Court, (iv) the date of consummation of a sale of all or substantially all of the assets or stock of the Debtors under Section 363 of the Bankruptcy Code, and (v) the termination by the DIP Lenders upon an event of default (any such date, the "Maturity Date"). * Fees: There's a delayed draw fee comprising: (i) Prior to entry of the Final Order, 0.50% of the unused portion of the Initial Availability, payable in cash monthly in arrears; and (ii) On or after the Final Order, 0.50% of the unused portion of the DIP Loan Commitment payable in cash monthly in arrears. There's also an upfront fee of fifty basis points (0.50%) on the DIP Loan Commitment, payable in cash upon entry of the Interim Order. * Chapter 11 Milestones: The DIP Facility does not contain milestones. * Liens and Priorities: The DIP Facility will be secured by a first priority lien on the Debtors' unencumbered assets and a junior lien on the Debtors' assets that are already subject to valid, perfected and unavoidable prepetition liens. The DIP Agent on its behalf and on behalf of the DIP Lenders will also be granted superpriority administrative expense claims. The Debtors and the DIP Parties at this time do not seek to prime the Prepetition Facility or any other valid, perfected and unavoidable prepetition lien. * Challenge Period: Because the DIP Facility does not contain any stipulations with respect to the Prepetition Facility, the DIP Facility does not include a challenge period. * Priming or Pari Passu Liens: The DIP Facility at this time does not provide for pari passu or priming liens to be granted to the DIP Parties. About Baha Mar Baha Mar -- http://www.bahamar.com-- is a 3.3 million square foot resort complex located in Cable Beach, Nassau, The Bahamas. A prominent resident in The Bahamas, Sarkis Izmirlian, conceptualized the project and has invested almost $900 million from the project. With the support of The Bahamian Government, the project commenced in 2005. When completed, Baha Mar will feature elite hotels with gaming, entertainment, private residences, shopping and natural attractions that reflect an authentic Bahamian experience. Amenities will include a Jack Nicklaus Signature golf course; 200,000 square feet of flexible convention facilities, including a 2,000-seat entertainment venue; art galleries featuring Bahamian art; more than 40 restaurants, bars and clubs; global luxury designer and local artisan boutiques; and 20 acres of exquisitely landscaped beach and pool experiences, including a beachfront sanctuary with native Bahamian flora and fauna. With the Baha Mar project only 97% complete as a result of construction delays, Northshore Mainland Services Inc., Baha Mar Ltd., and 13 other affiliated entities sought bankruptcy protection in Delaware on June 29, 2015, with the goal of completing the project while under the umbrella of the bankruptcy court. The cases are jointly administered, with joint pleadings under lead debtor Northshore Mainland Services Inc. (Bankr. D. Del. Case No. 15-11402). Milbank, Tweed, Hadley & McCoy, LLP and Kobre & Kim, LLP are acting as legal advisors, and Moelis & Company is acting as financial advisor to the filing entities. BLU COMPANIES: Case Summary & 18 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Blu Companies, Incorporated 4451 Shangri-la Court Placerville, CA 95667 Case No.: 15-25213 Chapter 11 Petition Date: June 29, 2015 Court: United States Bankruptcy Court Eastern District of California (Sacramento) Judge: Hon. Michael S. McManus Debtor's Counsel: Matthew R. Eason, Esq. EASON & TAMBORNINI, A LAW CORPORATION 1819 K St #200 Sacramento, CA 95811 Tel: 916-438-1819 Email: matthew@capacitylaw.com Total Assets: $5.4 million Total Liabilities: $7.3 million The petition was signed by Todd Wille, president. A list of the Debtor's 18 largest unsecured creditors is available for free at http://bankrupt.com/misc/caeb15-25213.pdf BMB MUNAI: Eide Bailly Issues Going Concern Qualification --------------------------------------------------------- BMB Munai, Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $18,800 on $0 of revenues for the year ended March 31, 2015, compared with a net loss of $1.6 million on $0 of revenues for the year ended March 31, 2014. As of March 31, 2015, the Company had $8.6 million in total assets, $8.6 million in total liabilities, all current, and a $38,084 total stockholders' deficit. Eide Bailly LLP, in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2015, citing that BMB Munai, Inc. has no continuing operations that result in positive cash flow. This situation raises substantial doubt about its ability to continue as a going concern. A copy of the Form 10-K is available for free at: http://is.gd/a6fOiT About BMB Munai BMB Munai, Inc., is engaged in oil and natural gas exploration and production through Emir Oil LLP, which was sold to a third party entity in 2011. The Company has been focused on satisfying its post-closing undertakings in connection with the sale of Emir Oil, winding down its operations in Kazakhstan and exploring oil and gas opportunities. BRAND ENERGY: Bank Debt Trades at 2% Off ---------------------------------------- Participations in a syndicated loan under which Brand Energy & Infrastructure Services is a borrower traded in the secondary market at 97.98 cents-on-the-dollar during the week ended Friday, June 26, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the June 30, 2015, edition of The Wall Street Journal. This represents an increase of 0.43 percentage points from the previous week, The Journal relates. Brand Energy pays 375 basis points above LIBOR to borrow under the facility. The bank loan matures on Nov. 12, 2020, and carries Moody's B1 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 260 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. CAESARS ENTERTAINMENT: 2017 Bank Debt Trades at 13% Off ------------------------------------------------------- Participations in a syndicated loan under which Caesars Entertainment Inc. is a borrower traded in the secondary market at 87.38 cents-on-the- dollar during the week ended Friday, June 26, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the June 30, 2015, edition of The Wall Street Journal. This represents a decrease of 0.38 percentage points from the previous week, The Journal relates. Caesars Entertainment Inc. pays 875 basis points above LIBOR to borrow under the facility. The bank loan matures on March 1, 2017, and carries Moody's withdraws its rating and Standard & Poor's D rating. The loan is one of the biggest gainers and losers among 260 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. CANDAX ENERGY: Obtains Extension to Facility Waiver Until July 22 ----------------------------------------------------------------- Candax Energy Inc., a company with mature oil & gas field developments in Tunisia, on June 30 disclosed that it has not been able to reach agreement with its partner to bring forward sales of its oil inventory stock from November to August 2015. The cash balance of the Company as at end of June is circa $2 million. The net Candax share of crude oil in inventory as at end of June 2015, amounts to 57 thousand barrels ("kbbls") (over 94 kbbs available in Maretap Tank storage) which represents an approximate value of $3.5 million at today's Brent prices, rising to 100 kbbls net Candax share (170 kbbs available in Maretap Tank storage) by end of September, with a forecasted average monthly net production of 13.5 kbbls (25 kbbls gross production including partners). Based on current business assumptions, and assuming that oil sales revenues are delayed until December 2015, the company would likely experience a cash shortfall by the end of September 2015. However the Company forecasts a positive cash balance at the end of 2015, once oil sales proceeds have been received. The Management, with the support of the Board of Directors, is studying cost reductions and rescheduling of its current liabilities. The Company is also actively working on options to increase working capital, including rescheduling debt and interest payments, pre-financing its crude oil inventory, advancing sales of crude oil, and the sale or lease back of assets. The Company also disclosed that it has obtained from Geofinance NV, major debtholder and shareholder of the Company, a further extension of 21 days on the waiver granted on January 29, 2015 up to July 22, 2015 under a facility agreement. Geofinance NV has agreed not to seek any remedy under such facility agreement in respect of the $3.5 million unpaid amount until July 22, 2015, or earlier in specific circumstances. A copy of the amendment and waiver letter will be filed publicly by the Company and available on SEDAR. The company has also decided to explore the option to voluntarily delist from the Toronto Stock Exchange ("TSX") to another exchange including the TSX Venture Exchange (TSX-V) and the Canadian Securities Exchange (CSE). Both such exchanges have lower listing requirements but it is not confirmed that the Company could meet the listing requirements on either exchange. Due to the expenditure requirements for a senior listing, the Board is considering whether or not it would be in the best interests of shareholders to transition to another exchange, thereby further reducing costs. About Candax Candax is an international energy company with offices in Toronto and Tunis. The Candax group is engaged in exploration and the production of oil and gas in Tunisia and holds a royalty interest in an exploration permit in Madagascar. CHECKERS DRIVE-IN: Moody's Affirms 'B3' CFR, Outlook Stable ----------------------------------------------------------- Moody's Investors Service affirmed Checkers Drive-In Restaurants, Inc.'s B3 Corporate Family Rating, B3-PD Probability of Default Rating (PDR) and B3 $160 million 11% senior secured notes rating. The rating outlook was changed to stable from negative. Issuer: Checkers Drive-In Restaurants, Inc. Outlook Actions: Outlook, Changed To Stable From Negative Affirmations: Probability of Default Rating, Affirmed B3-PD Corporate Family Rating, Affirmed B3 Senior Secured Regular Bond/Debenture, Affirmed B3 (LGD4) RATINGS RATIONALE The change in outlook from negative to stable reflects Checker's relatively steady improvement in operating performance and earnings, driven in large part by positive same-store sales trends which along with modestly lower funded debt levels has resulted in better credit metrics. The outlook also anticipates that management will maintain adequate liquidity and a moderate financial policy. The B3 Corporate Family Rating reflects Checkers high leverage and modest coverage, and our concern that the soft consumer spending environment and competition will continue to pressure same-store sales, earnings and debt protection metrics. The ratings are supported by the company's material level of brand awareness, reasonable scale, and adequate liquidity. The ratings could be downgraded in the event operating performance were to deteriorate resulting in a sustained weakening of credit metrics. Specifically, a downgrade could occur if debt to EBITDA exceeded 6.5 times or EBITA to interest was below 1.1 times on a sustained basis. A deterioration in liquidity for any reason could also result in negative ratings pressure. Factors that could result in an upgrade include a sustained improvement in earnings driven by positive operating trends and lower costs. Specifically, an upgrade would require debt to EBITDA approaching 5.25 times and EBITA coverage of interest above 1.75 times on a sustained basis. A higher rating would also require an improved liquidity profile. Checkers Drive-in Restaurants, Inc. owns, operates, and franchises hamburger quick service restaurants under the brand names Checkers and Rally's Hamburgers. Annual revenues are approximately $350 million. The principal methodology used in this rating was Global Restaurant Methodology published in June 2011. COSO GEOTHERMAL: Fitch Affirms 'C' Rating on 2026 Certificates -------------------------------------------------------------- Fitch Ratings has affirmed Coso Geothermal Power Holdings LLC's $629 million ($430 million outstanding) pass through certificates due 2026 at 'C'. The rating affirmation is based on Fitch's expectation that default appears imminent. Default could occur as early as mid-July 2015 if Coso fails to meet certain rent payments required under the facility lease. The potential October 2015 expiration and subsequent repayment of the letter of credit (LC) backing Coso's collateral obligation under its revenue contracts presents another near-term default risk. Cash flow projections and remaining reserves indicate that a payment default is likely by early 2017. KEY RATING DRIVERS Geothermal Resource Depletion - Supply Risk: Weaker Underperformance of the geothermal resource has lowered net operating capacity at the project's three interlinked geothermal power plants. With the decline in the geothermal resource, energy revenues have fallen to levels that are not sufficient to meet debt obligations. Expected Payment Shortfalls - Debt Structure: Midrange Fitch's projections indicate that cash available for debt service will result in shortfalls for future payment obligations on the fully amortizing certificates. A senior debt reserve, funded with cash from a drawn LC facility, supports these obligations when needed, though the remaining reserve balance equates to less than 50% of annual debt service. Limited Price Risk - Revenue Risk: Midrange Variable pricing on energy sales is limited to one-fifth of total revenues between July 2014 and March 2019. Coso earns the majority of its revenue for its energy output through various power purchase agreements (PPA) with off-taker Southern California Edison (SCE, rated 'A-' with a Stable Outlook by Fitch). Lack of Dedicated Operating Reserves - Operation Risk: Weaker The project has no dedicated operations and maintenance or major maintenance reserve, leaving little cushion to protect against increased operational costs. Peer Comparison Coso's geothermal assets have suffered worse resource depletion than those within the CE Generation LLC ('BB-'/Outlook Stable) portfolio and OrCal Geothermal Inc. ('BB'/Outlook Stable), leading to more pressured financial performance. RATING SENSITIVITIES Negative -- Failure to meet certain obligations this year under the facility lease or revenue contracts could result in near-term technical default. Negative -- Payment default could occur in early 2017 if operating cash flow and remaining reserves are insufficient to meet debt obligations. SUMMARY OF CREDIT The rated certificates could be pulled into default as early as July 2015 if Coso fails to make certain equity rent payments, an obligation under the facility lease. Fitch expects a $3 million shortfall on the upcoming equity rent payment due July 15, 2015. The senior debt reserve may not be used to make up for any equity rent shortfalls, but the owner lessors do have the option to cure. If not cured within 10 days of the due date, Fitch expects the rated debt will be pulled into default. Default could also occur if Coso fails to secure an extension or replacement of the LC backing a $15 million collateral posting required under its PPA with SCE. Coso currently satisfies this requirement with an LC with Citibank, N.A. ('A+'/Outlook Stable), which expires in October 2015. SCE would draw on the LC if it is not extended or replaced. If Coso is unable to meet subsequent LC repayment obligations, this may lead to a technical default that could cross default to the lease and lease indenture of the rated certificates. Based on Fitch's projections, operating cash flow and remaining debt service reserves are expected to be sufficient to repay obligations through 2016. In Fitch's view, reserves are likely to be exhausted and a payment default is likely to occur in early 2017 due to weakened operational performance. As of June 2015, Coso has tapped its senior reserve three times over the past three years to meet debt payment shortfalls. Coso drew the senior debt reserve portion of its LC into cash in November 2014 and continues to meet rated debt obligations using a combination of operating cash flow and the remaining reserves. Coso utilized $10 million of the senior debt reserve to meet the most recent January 2015 payment, leaving a reserve balance of $17.6 million. Coso has defaulted on its obligation to repay principal on the LC's drawn funds, but this does not constitute a default under the lease indenture for the rated certificates. CGP is a special-purpose company formed to lease and operate the Coso project, which consists of three interlinked geothermal power plants located in Inyo County, CA. Coso provides royalty payments to the U.S. Navy and the Bureau of Land Management for use of the geothermal resource. Under a series of power purchase agreements, Coso's entire output will be sold to SCE through January 2030. Cash flows from both Coso and Beowawe, an affiliated geothermal project in Nevada, are available to service CGP's rent payments under the CGP lease. Rent payments are the sole source of cash available to pay debt service on the pass-through trust certificates. Each tranche of the certificates represents an undivided interest in a related pass-through trust, which holds the lessor notes issued by the owner lessors. The notes are the sole collateral and source of repayment of the certificates. COVIS PHARMA: S&P Affirms Then Withdraws 'B' Rating --------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' rating on Covis Pharma Holdings Sarl (Covis) following Covis' acquisition by Concordia Healthcare Corp. (B/Stable/--). The outlook is stable. S&P subsequently withdrew the rating to reflect the repayment by Covis of all its outstanding debt. DEEPHAVEN, MN: S&P Cuts Rating on 2013A/B Revenue Bonds to 'BB+' ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Deephaven, Minn.'s series 2013A and 2013B charter school lease revenue bonds, issued for Eagle Ridge Academy, one notch to 'BB+' from 'BBB-'. At the same time, Standard & Poor's assigned its 'BB+' rating to Deephaven's $31 million tax-exempt series 2015A and $385,000 taxable series 2015B charter school lease revenue and refunding bonds, also issued for the academy. The outlook is stable. "The downgrade on the 2013 bonds reflects our view of the added burden the 2015 issuance places on Eagle Ridge's debt profile," said Standard & Poor's credit analyst Stephanie Wang. "This results in lower pro forma maximum annual debt service (MADS) coverage based on fiscal 2014 results, and a high pro forma MADS burden that is more commensurate with a 'BB+' rating." Approximately $10 million of proceeds from the 2015 bonds will be used to fully refund the series 2013 bonds, with the remainder used to acquire the land for, design, and renovate a new facility for the academy; fund a reserve fund and capitalized interest on the 2015 bonds; and pay issuance costs. Once the bond sale closes and the 2013 bonds are defeased in full, S&P expects that the 2013 bonds will no longer be the responsibility of the academy or its affiliated building company. "A positive rating action may occur beyond the outlook period should the school fulfill its enrollment goals and grow operations such that MADS coverage and liquidity increase to levels more commensurate with a higher rating," Ms. Wang added. "Conversely, a negative rating action may occur should there be construction delays or cost overruns that stifle enrollment growth plans, a decline in academic performance that leads to charter renewal issues, or weakened operations resulting in lower MADS coverage and a significant decline in liquidity." Eagle Ridge is a kindergarten-through-Grade 12 public charter school located about 15 miles outside the Twin Cities in Eden Prairie. DOUGLAS HIMMELFARB: Hawaii Court Rules on Award of Atty Fees ------------------------------------------------------------ Bankruptcy Judge Robert J. Faris ruled on certain issues in the remanded case, In re DOUGLAS BRUCE HIMMELFARB, Chapter 11, Debtor, CASE NO. 13-00229, RELATED DOCKET NO. 203 (Bankr. D. Hawaii). Judge Faris previously cited debtor Douglas Himmelfarb for contempt for committing a willful violation of two court orders when Himmelfarb disclosed information he obtained from Christopher Rothko and Marian Kahan. On appeal, the district court affirmed the contempt citation, but it vacated the award of attorneys' fees, the denial of Himmelfarb's countermotion for contempt, and the fine. On remand, Judge Faris held as follows: -- As to the award of attorney's fees, Judge Faris held that the amount of $44,572.13 is a reasonable amount of attorney's fees flowing directly from Himmelfarb's contempt. However, Judge Faris did not award attorney's fees to the Rothko parties in connection with the appeal because he did not have the power to award such attorney's fees, and Himmelfarb prevailed in part on appeal. -- On his denial of Himmelfarb's countermotion, Judge Faris held that the Rothko parties did not violate the Stipulated Protective Order when they made their confidentiality designations and that, even if there were a violation, it was not willful and did not harm Himmelfarb. -- Lastly, Judge Faris reaffirmed his decision that Himmelfarb should pay a $9,000 fine. A copy of the May 28, 2015 memorandum is available at http://is.gd/dvq95Gfrom Leagle.com. DRYDEN ADVISORY: Motion to Correct Record Denied ------------------------------------------------ Dryden Advisory Group, LLC, filed a motion for interim use of cash collateral on February 20, 2015. Durham Commercial Capital Corp. argued that some of the accounts receivable in which both Citibank, N.A. and Beneficial Mutual Savings Bank claimed a security interest were sold by Debtor to Durham under a factoring agreement. A hearing on the Cash Collateral Motion was held on April 28, 2015, and May 7, 2015. At the May 7 hearing, Michael T. Eismann, the Debtor's vice president, testified on behalf of Debtor on a variety of topics related to the Debtor's operations and its dealings with its creditors. During his testimony, Mr. Eismann stated that the Debtor did not receive payment from Susquehanna Bank on a certain invoice that Durham asserted was subject to the factoring agreement. Durham sought to elicit an admission from Mr. Eismann that the Susquehanna Bank invoice had been received by the Debtor, but Mr. Eismann steadfastly denied that payment had been received. The record was closed on May 7, 2015, and a briefing schedule was issued by the Court. On May 11, the Debtor filed the Motion to Correct Record and attached an affidavit in which Mr. Eismann admits that Debtor did, in fact, receive payment of the account receivable from Susquehanna Bank. In the affidavit, Mr. Eismann states that his prior testimony was incorrect and, as Durham had asserted, that the Debtor received payment directly on one of the accounts factored to Durham. Although Durham tried to elicit this admission at trial, it objected to the Motion to Correct arguing that there is no procedure to correct the record after it has been closed. Judge Mary D. France of the United States Bankruptcy Court for Middle District of Pennsylvania denied the Debtor's motion for order to correct record, holding that, it would be inappropriate for the Court to permit the Debtor to file an affidavit correcting testimony presented at trial without a showing that it meets the standards set forth in the case captioned Zenith Radio Corp. v. Hazeltine Research, Inc., 401 U.S. 321, 331(1971). Accordingly, Judge France denied the Motion to Correct with leave granted to the Debtor to file a motion to reopen the record within 14 days from the date of the order accompanying the opinion. If a motion to reopen is filed, Dryden will have seven days thereafter to file an objection. The Debtor, according to Judge France, has demonstrated that Mr. Eismann failed to prepare adequately to testify at the hearing in this matter and is seeking to correct testimony that he later determined was false. The Court also found it would be inappropriate for the Debtor to be permitted to simply submit an affidavit to change earlier testimony without some showing that the Debtor's receipt of the Susquehanna invoice is especially important or probative to the issues to be decided in this matter. Further, if Durham wishes to contest reopening of the record, it should be afforded an opportunity to show why it will suffer undue prejudice if Mr. Eismann is permitted to admit to a fact that Durham sought to establish at trial, Judge France said. The case is DRYDEN ADVISORY GROUP, LLC, Movant, v. BENEFICIAL MUTUAL SAVINGS BANK, CITIBANK, N.A. and DURHAM COMMERCIAL CAPITAL CORP., Respondents, IN RE: DRYDEN ADVISORY GROUP, LLC, Chapter 11, Debtor-in-Possession, NO. 1:15-BK-00545MDF (Bankr. M.D. Pa.). A full-text copy of Judge France's Opinion dated June 15, 2015, is available at http://bit.ly/1TQo847from Leagle.com. ELIZABETH ARDEN: S&P Lowers CCR to 'B', Outlook Negative -------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its corporate credit rating on New York-based Elizabeth Arden Inc. to 'B' from 'B+'. The outlook is negative. At the same time, S&P lowered its issue-level rating on the company's senior unsecured notes due 2021 to 'B' from 'B+' and revised the recovery rating on the debt to '4' from '3'. The '4' recovery rating indicates S&P's expectation for average (30% to 50%; upper half of the range) recovery in the event of payment default. "The downgrade reflects Elizabeth Arden's weak credit measures due to its poor operating performance, and our expectation that its recovery will be slow and uneven, given the over-saturation of celebrity brand fragrances and intense competition in the cosmetics industry," said Standard & Poor's credit analyst Peter Deluca. The company's weak operating performance over the past year and a half has resulted in a significant deterioration in credit measures. S&P expects leverage to be about 15x at year-end 2015 and EBITDA coverage of interest to be below 1.0x. Because of this, S&P has revised its financial risk profile for Elizabeth Arden to "highly leveraged" from "aggressive". The company's product portfolio is highly concentrated in fragrances and is more volatile than its other business segments. Also, the company's sales and EBITDA are weighted toward the first half of its fiscal year (which ends June 30), as retailers increase purchases in advance of the holiday season. However, the company maintains a solid market position in fragrances through its portfolio of well-known brands. These factors support S&P's business risk assessment of "weak". The negative outlook reflects the risk that Elizabeth Arden may not be able to strengthen profitability and credit measures through its performance improvement plans and restructuring activities. S&P expects the company should be able to stabilize its operating performance by the end of fiscal 2016, although profit measures will be well below historical levels. S&P could lower its ratings if the anticipated benefits from the restructuring initiatives fail to materialize, or if the competitive landscape intensifies further such that credit measures remain very weak, including EBITDA coverage of interest remaining below 1.0x. In addition, S&P could lower the ratings if liquidity worsens because the company has to fund its operations with revolver drawings. S&P could consider revising the outlook to stable if the company stabilizes operating performance, realizes cost savings from its efficiency initiatives, and EBITDA coverage of interest increases to 1.0x. This could occur if the company generates EBITDA about 48% over S&P's base-case forecast for 2015. The company could achieve this if it is able to expand margins to almost 5% in 2015. S&P's base-cast estimate is in the low-3.0% area. EVERYWARE GLOBAL: S&P Raises CCR to 'CCC+' on Restructuring ----------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Lancaster, Ohio-based EveryWare Global Inc. to 'CCC+' from 'D' following the company's emergence from Chapter 11 bankruptcy. The outlook is negative. In addition, S&P assigned its 'B-' issue-level rating to the $40 million senior secured term loan due June 2018 issued by its operating subsidiaries Anchor Hocking LLC and Oneida Ltd. The recovery rating is '2', indicating S&P's expectations of substantial (70% to 90%, at the upper half of the range) recovery in the event of a payment default. S&P also withdrew the ratings on Oneida Ltd. And Anchor Hocking LLC's $250 million term loan due May 2020, which was impaired following the company's Chapter 11 filing. S&P's ratings incorporate an analysis of EveryWare Global Inc. on a consolidated basis, which includes Universal Table Inc., Oneida Ltd., and Anchor Hocking LLC, the wholly owned subsidiaries. "The upgrade reflects EveryWare's completion of its financial restructuring and emergence from bankruptcy," said Standard & Poor's credit analyst Beverly Correa. "We believe the company may not be able to maintain sufficient liquidity during the next 12 months, and that it will remain challenged to substantially increase its revenues, profitability, and overall cash flow and meaningfully improve its financial position within the next two years." The negative outlook reflects Standard & Poor's expectation that the company's recovery will be slow and uneven, and that its operating cash flows will continue to be negative for the remainder of 2015, which may result in an inability to maintain adequate cushion on its financial covenants in its credit agreement. S&P could revise the outlook to stable or raise the ratings if the company can restore revenue and profit growth, improve free operating cash flows, and sustain adequate cushion on its financial covenants. FIDELITY NATIONAL: Fitch Affirms BB+ Rating on $300MM Sr. Notes --------------------------------------------------------------- Fitch Ratings has upgraded Fidelity National Financial, Inc.'s (FNF) title insurance operating companies' Insurer Financial Strength (IFS) ratings to 'A-' from 'BBB+'. In addition, Fitch has affirmed FNF's Issuer Default Rating (IDR) at 'BBB-' and senior unsecured debt at 'BB+.' The Rating Outlook is Stable. KEY RATING DRIVERS Fitch's upgrade of FNF's IFS ratings are based on market-leading scale, margins, and operating company capitalization. Offsetting these positives though has been a history of periodic consolidated balance sheet financial leverage increases to fund acquisitions of ancillary businesses. While Fitch notes that past ventures have been successful, historical results do not mitigate future risks. FNF's more aggressive holding company capital management, coupled with high tangible financial leverage are the primary reasons for the expansion of holding company debt-notching with the IFS rating upgrade. On Jan. 2, 2014, FNF acquired Lender Processing Services, Inc. (LPS) for $3.4 billion, generating approximately $3 billion of the total $4.7 billion in goodwill. FNF's financial leverage as of March 31, 2015 was 33%; however, tangible financial leverage was 100%. Prior to the LPS transaction, financial leverage was 19% and tangible financial leverage was 31% at year-end 2013. Fitch's ratings analysis considers both the two tracking stocks, FNF Core (Ticker: FNF NYSE) and FNF Financial Ventures (Ticker: FNFV NYSE). While Fitch recognizes the tracking stock gives FNF's management the ability to streamline the organizational chart and lessen the volatility of title insurance operations it does not alleviate holding company obligations, as neither is a separate legal entity. Any future material organizational structure changes at FNF would merit further assessment of the ratings. FNF has a dominant position in title insurance accounting for approximately 32% of the U.S. title insurance market. This scale coupled with an aggressive cost management focus has allowed FNF to be one of the most profitable title insurance companies, reporting a GAAP pretax operating margin of 12.2% for full-year 2014, the highest amongst large publicly traded title insurance companies. As of March 31, 2015, GAAP fixed charge coverage (FCC) was 5.9x. Fitch anticipates modest improvement in the FCC ratio as the company actively reduces its debt load. Fidelity's title insurance operating subsidiaries have strong capitalization with statutory operating leverage of 2.5x as of year-end 2014 and a risk adjusted capital (RAC) score of 197%; both metrics are favorable relative to title insurer peers. RATING SENSITIVITIES The following is a list of key rating drivers that could lead to an upgrade for the holding company ratings: -- Sustained improvement in debt/EBITDA of 2.3x or higher; year- end 2014 debt/EBITDA was 2.8x. -- Significant improvement in tangible financial leverage. -- Sustained GAAP FCC ratio of 8.0x or higher. These factors, as well as the following items could lead to an upgrade of both IFS and debt ratings: -- Maintenance of operating company capital strength as demonstrated by a RAC score above 175% and net leverage below 4.0x. -- Maintenance of GAAP operating margins at current levels that remain in top tier versus industry norms. The following is a list of key rating drivers that could lead to a downgrade: -- A RAC score below 130%. -- Any acquisition that increases financial leverage above 35%. -- A significant write-down in goodwill or signs that indicate a potential write-down of goodwill is possible. -- Deterioration in earnings, primarily measured by consolidated pretax GAAP margins, at a pace greater than peer averages. -- Sustained material adverse reserve development. FULL LIST OF RATING ACTIONS Fitch has upgraded the following ratings with a Stable Outlook: Fidelity National Title Ins. Co. Alamo Title Insurance Co. of TX Chicago Title Ins. Co. Commonwealth Land Title Insurance Co. -- IFS ratings to 'A-' from 'BBB+'. Fitch has affirmed the following ratings with a Stable Outlook: Fidelity National Financial, Inc. -- IDR at 'BBB-'; -- $300 million 4.25% convertible senior note maturing Aug. 15, 2018 at 'BB+'; -- $300 million 6.6% senior note maturing May 15, 2017 at 'BB+'; -- $400 million 5.5% senior note maturing Sept. 1, 2022 at 'BB+' -- Four-year $800 million unsecured revolving bank line of credit due July 2018 at 'BB+'. FIGUEROA TOWER: Cal. App. Flips Summary Ruling Favoring U.S. Bank ----------------------------------------------------------------- Plaintiffs and appellants Figueroa Tower I, LP, Figueroa Tower II, LP, and Figueroa Tower III, LP, brought an action against defendants and respondents U.S. Bank National Association and Witkin & Eisinger asserting seven causes of action based on actions defendants took in enforcing the provisions of a promissory note and a deed of trust. The trial court sustained without leave to amend defendants' demurrer to five of plaintiffs' causes of action. It granted defendants' motion for summary judgment as to plaintiffs' two remaining causes of action as well as to two of the causes of action as to which it had already sustained defendants' demurrer. On appeal, plaintiffs challenge the trial court's demurrer ruling as to two of their causes of action and its summary judgment ruling. The Court of Appeals for the Second District of California, Division Five, reversed a trial court's ruling. The Court of Appeals reversed the trial court's ruling on defendants' demurrer as to plaintiffs' wrongful foreclosure and declaratory relief causes of action and its ruling on defendants' summary judgment motion as to plaintiffs' breach of written contract, wrongful foreclosure, and declaratory relief causes of action. It also affirmed the trial court's ruling on defendants' summary judgment motion as to plaintiffs' accounting cause of action. It remanded to the trial court for further proceedings. The Plaintiffs are awarded their costs on appeal. The Court of Appeals found that the Defendants cite no authority that holds that a trial court may require a plaintiff to deposit in an escrow account the disputed funds due in order to maintain an action challenging a nonjudicial foreclosure sale. Further, the Court found that the Defendants do not cite a finding by the trial court that plaintiffs were unable to make good on their tender. Moreover, the Court said the plaintiffs demonstrated their ability to make good on their tender by their deposit of $5 million in the client trust account of the law firm of Resch, Polster & Berger, LLP. In its ruling on defendants' summary judgment motion, the trial court stated that plaintiffs had failed to comply with its demurrer ruling requiring them to deposit $5 million in an escrow account in order to proceed with their wrongful foreclosure and declaratory relief causes of action. The trial court's apparent intended meaning of that statement was that the trial court was not changing its order sustaining without leave to amend defendants' demurrer as to those causes of action, the Court said. Because the Court of Appeals reversed the trial court's ruling on defendants' demurrer, the Court of Appeals addresses the trial court's alternative ruling and hold that the alternative ruling was error in light of our holding in U.S. Bank, supra, 232 Cal. App. 4th 639 because plaintiffs' wrongful foreclosure and declaratory relief causes of action were based in part on the Bank's alleged erroneous calculation of the prepayment fee. Defendants do not argue that summary judgment or summary adjudication was otherwise appropriate on any other ground as to those causes of action or for any other reasons stated by the trial court. Moreover, this case concerns a multimillion dollar real estate transaction. The order with which plaintiffs have not complied was a $25,000 attorney fees award that was awarded in part on an erroneous basis. The appeal before the Court does not concern the $25,000 attorney fees award. Under the circumstances, it would be inequitable to dismiss plaintiffs' appeal based on their alleged misconduct, the Court ruled. The appeals case is FIGUEROA TOWER I, LP., et al, Plaintiffs and Appellants, v. U.S. BANK NATIONAL ASSOCIATION, etc., Defendants and Respondents, Case No. B255844, (Cal. App.). A full-text copy of the Opinion dated June 16, 2015, is available at http://bit.ly/1FDFupVfrom Leagle.com. Marc Smith, Esq. -- msmith@kranesmith.com and Daniel Reback, Esq. -- dreback@kranesmith.com of Krane & Smith -- Katharine J. Galston, Esq. -- kate@deganigalston.com of The Law Office of Katharine J. Galston serve as counsel for Plaintiffs and Appellants. Robert B. Kaplan, Esq. -- RKaplan@jmbm.com and Neil C. Erickson, Esq. -- NErickson@jmbm.com of Jeffer Mangels Butler & Mitchell serve as counsel for Defendants and Respondents. FRAC TECH SERVICES: Bank Debt Trades at 17% Off ----------------------------------------------- Participations in a syndicated loan under which Frac Tech Services Ltd is a borrower traded in the secondary market at 82.96 cents-on-the- dollar during the week ended Friday, June 26, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the June 30, 2015, edition of The Wall Street Journal. This represents a decrease of 0.68 percentage points from the previous week, The Journal relates. Frac Tech Services Ltd. pays 475 basis points above LIBOR to borrow under the facility. The bank loan matures on April 3, 2021, and carries Moody's B2 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 260 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. FREMAK INDUSTRIES: Case Summary & 7 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Fremak Industries, Inc. 150 East 58th Street, Suite 2001 New York, NY 10155 Case No.: 15-11740 Chapter 11 Petition Date: July 1, 2015 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: Hon. Sean H. Lane Debtor's Counsel: David L. Barrack, Esq. POLSINELLI PC 900 Third Avenue, 21st floor New York, NY 10022 Tel: 646-289-6517 Email: dbarrack@polsinelli.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $10 million to $50 million The petition was signed by Leon Goldenberg, president. A list of the Debtor's seven largest unsecured creditors is available for free at http://bankrupt.com/misc/nysb15-11740.pdf GELTECH SOLUTIONS: Issues $200,000 Convertible Note to Reger ------------------------------------------------------------ GelTech Solutions, Inc., on June 24, 2015, issued Mr. [___] Reger a $200,000 7.5% secured convertible note in consideration for a $200,000 loan, according to a document filed with the Securities and Exchange Commission. The note is convertible at $0.82 per share and matures on Dec. 31, 2020. Repayment of the note is secured by all of the Company's assets including its intellectual property and inventory in accordance with a secured line of credit agreement between the Company and Mr. Reger. Additionally, the Company issued Mr. Reger 121,952 two-year warrants exercisable at $2.00 per share. All of the securities were issued without registration under the Securities Act of 1933 in reliance upon the exemption provided in Section 4(a)(2) and Rule 506(b) thereunder. About GelTech Jupiter, Fla.-based GelTech Solutions. Inc., is a Delaware corporation organized in 2006. The Company markets four products: (1) FireIce(R), a water soluble fire retardant used to protect firefighters, structures and wildlands; (2) Soil2O(R) 'Dust Control', its new application which is used for dust mitigation in the aggregate, road construction, mining, as well as, other industries that deal with daily dust control issues; (3) Soil2O(R), a product which reduces the use of water and is primarily marketed to golf courses, commercial landscapers and the agriculture market; and (4) FireIce(R) Home Defense Unit, a system for applying FireIce(R) to structures to protect them from wildfires. GelTech reported a net loss of $5.22 million for the year ended June 30, 2013, as compared with a net loss of $7.13 million for the year ended June 30, 2012. As of March 31, 2015, the Company had $1.47 million in total assets, $3.93 million in total liabilities, and a $2.46 million total stockholders' deficit. Salberg & Company, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2013. The independent auditors noted that the Company has a net loss and net cash used in operating activities in 2013 of $5,221,747 and $4,195,655, respectively, and has a working capital deficit, accumulated deficit and stockholders' deficit of $556,140, $28,021,633 and $2,270,386, respectively, at June 30, 2013. These matters raise substantial doubt about the Company's ability to continue as a going concern. GENWORTH HOLDINGS: Moody's Gives (P)Ba1 Rating on Sr. Unsec. Debt ----------------------------------------------------------------- Moody's Investors Service has assigned provisional debt ratings (senior unsecured debt at (P)Ba1) to Genworth Holdings, Inc.'s multiple security shelf. Other provisional ratings assigned are listed below. The outlook on all the ratings is negative. The shelf renews and replaces a similar universal shelf registration that expires in June 2015. RATINGS RATIONALE Moody's said that the Ba1 senior unsecured debt rating of Genworth, the intermediate holding company of Genworth Financial, Inc. (unrated, NYSE: GNW) is based on the Baa1 IFS rating of its life insurance operations and the strength of its international mortgage insurance operations. Genworth is a leading provider of individual long-term care (LTC) insurance in the US, and as a multinational provider of mortgage insurance (MI) has a material position in the US, Canada and Australia. According to Scott Robinson, Senior Vice President, "These strengths are somewhat offset by the company's adverse experience within its LTC business and its reliance on regulatory approval of rate increases, as well as its recent shift in strategy to possibly deemphasize its life insurance operations." Moody's added that although Genworth has taken a number of prudent steps to protect its capital position to comply with revised regulatory capital requirements for the US MI business and maintain strong LTC accounting reserve margins, it remains exposed to further deterioration in its legacy block of LTC business. Moody's noted that given the company's negative outlook, an upgrade over the near term is unlikely. However, the following could cause the outlook on Genworth to be changed to stable: A change in the outlook on Genworth's life insurance subsidiaries to stable. On the other hand, the following could result in a downgrade of the holding company's ratings: a downgrade of the US life insurance operations. These provisional debt ratings were assigned with a negative outlook: Genworth Holdings, Inc. -- provisional senior unsecured shelf rating at (P)Ba1; provisional subordinated shelf rating at (P)Ba2. Genworth Financial, Inc., headquartered in Richmond, Virginia, reported total assets of $112 billion and total shareholders' equity of $17.1 billion as of March 31, 2015. GLENCOE ACQUISITION: Bid to Dismiss Clawback Complaint Denied ------------------------------------------------------------- Judge Kevin Gross of the United States Bankruptcy Court for the District of Delaware denied HBK Master Fund L.P.'s motion to dismiss the Amended Complaint filed by Charles M. Forman, as Chapter 7 Trustee for Glencoe Acquisition, Inc. Glencoe and HBK, a foreign limited partnership, entered into a Stock Purchase Agreement in which HBK agreed to convey to Glencoe all of the issued and outstanding securities of HomeWise Holdings, Inc. for $500,000. As a result, the SPA also provided that Glencoe would obtain Holdings' interest in several wholly-owned subsidiaries. Specifically, pursuant to the SPA, Glencoe purchased Holdings' 100% interest in HomeWise Management Company, and HMC's 100% interest in both HomeWise Insurance Company and HomeWise Preferred Insurance Company. According to the Chapter 7 Trustee, on August 15, 2011, Demotech, a third-party company that provides financial stability ratings, "pulled the rating for HWIC." As a result, the Chapter 7 Trustee claims that "HWIC was no longer able to write insurance policies." On November 18, 2011, HWIC was ordered into receivership by the Second Judicial Circuit Court in Leon County, Florida. Based on these allegations, the Chapter 7 Trustee seeks to avoid the Transfer -- Glencoe's $500,000 purchase of Holdings, HMC, HWIC and HPIC -- to HBK as a fraudulent transfer. The Chapter 7 Trustee alleges two counts against HBK. In Count One, the Trustee seeks to avoid and recover the Transfer as a constructive and actual fraudulent transfer pursuant to Bankruptcy Code Section 548 and Del. Code Ann. Tit. 6, Sections 1304(a)(1) and 1307(a)(1). In Count Two, the Trustee incorporates the prior allegations and states that he may "recover the Transfer from any `immediate or mediate transferee' of HBK." Judge Gross denied the HBK's motion to dismiss the Amended Complaint, although the Court did not address HBK's Motion to Strike because it is not necessary to the decision. According to Judge Gross, the Chapter 7 has provided sufficient allegations from which a reasonable person could infer that the totality of the Transfer and the acquisition of woefully underfunded entities caused Glencoe's insolvency, left Glencoe with unreasonably small capital, and that at the time of the Transfer, Glencoe believed that it would incur debts beyond its ability to pay. The case is CHARLES M. FORMAN, as the Chapter 7, trustee for Glencoe Acquisition, Inc., et al., Plaintiff, v. HBK MASTER FUND L.P., and JOHN DOES No. 1 through 100, being fictional names, Defendants, ADV. PROC. NO. 14-50464(KG), In re GLENCOE ACQUISITION, INC., et al., Chapter 11, Debtors, Case No. 12-12071(KG) (Bankr. D. Del.). A full-text of copy of Judge Gross' Memorandum Opinion dated June 16, 2015, is available at http://bit.ly/1BFjKPofrom Leagle.com. GREENSHIFT CORP: Effects 1-for-100 Reverse Stock Split ------------------------------------------------------ GreenShift Corporation filed with the Secretary of State of the State of Delaware a certificate of amendment to the Company's certificate of incorporation to give effect to a 1-for-100 reverse stock split effective June 29, 2015, according to a document filed with the Securities and Exchange Commission. The Company's common stock began trading on a post-reverse split basis on June 30, 2015. About Greenshift Corporation Headquartered in New York, GreenShift Corporation develops and commercializes clean technologies designed to integrate into and leverage established production and distribution infrastructure to address the financial and environmental needs of its clients by decreasing raw material needs, facilitating co-product reuse, and reducing waste and emissions. Greenshift reported net income of $1.97 million on $12.8 million of total revenue for the year ended Dec. 31, 2014, compared with a net loss of $4.43 million on $15.5 million of total revenue for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $1.28 million in total assets, $41.97 million in total liabilities and a $40.7 million total stockholders' deficit. GYMBOREE CORP: Bank Debt Trades at 28% Off ------------------------------------------ Participations in a syndicated loan under which Gymboree Corp. is a borrower traded in the secondary market at 72.46 cents-on-the- dollar during the week ended Friday, June 26, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the June 30, 2015, edition of The Wall Street Journal. This represents a decrease of 1.09 percentage points from the previous week, The Journal relates. Gymboree Corp. pays 350 basis points above LIBOR to borrow under the facility. The bank loan matures on February 23, 2018, and carries Moody's B3 rating and Standard & Poor's CCC+ rating. The loan is one of the biggest gainers and losers among 260 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. H. K. GRAND VENTURE: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: H. K. Grand Venture Capital, LLC 30800 Northwestern Highway, Ste. 223 Farmington Hills, MI 48334 Case No.: 15-49994 Chapter 11 Petition Date: July 1, 2015 Court: United States Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Hon. Phillip J Shefferly Debtor's Counsel: Robert N. Bassel, Esq. P.O. Box T Clinton, MI 49236 Tel: (248) 677-1234 Fax: (248) 369-4749 Email: bbassel@gmail.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Steven Gittleman, member. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. HAWAIIAN HOLDINGS: S&P Raises CCR to 'B+', Outlook Stable --------------------------------------------------------- Standard & Poor's Ratings Services said that it has raised its corporate credit rating on Honolulu, Hawaii-based Hawaiian Holdings Inc., the parent company of Hawaiian Airlines Inc., to 'B+' from 'B'. The outlook is stable. S&P also raised its issue-level rating on Hawaiian Airlines Inc.'s 2013-1 Class B pass-through trust certificates by one notch to 'BB', in conjunction with S&P's upgrade of Hawaiian Holdings. At the same time, S&P affirmed its issue-level rating on Hawaiian Airlines' 2013-1 Class A pass-through trust certificates because S&P believes that their collateral protection has deteriorated, offsetting the effect of its upgrade of Hawaiian Holdings Inc. "Our upgrade of Hawaiian Holdings Inc. reflects the company's improved operating performance, which has strengthened its credit measures," said Standard & Poor's credit analyst Betsy Snyder. As of March 31, 2015, Hawaiian's trailing-12-months funds from operations (FFO)-to-debt ratio was 24% and its debt-to-EBITDA metric was 3.3x. S&P expects the company to maintain its stronger operating performance going forward, due in large part to its lower fuel expense, which should improve its credit metrics in 2015 before they moderate slightly in 2016. Based on these trends, S&P now assess Hawaiian's financial risk profile as "aggressive" (compared with "highly leveraged" previously) under S&P's criteria. S&P expects Hawaiian Holdings Inc.'s credit metrics to improve in 2015 and moderate thereafter as fuel prices increase. S&P could lower its ratings on the company if its earnings and cash flow are weaker than it had anticipated because of higher-than-expected fuel prices or lower-than-expected demand and pricing, causing its FFO-to-debt ratio to decline to 12% or below on a sustained basis. Although unlikely, S&P could raise its ratings if the company's earnings and cash flow improve because of lower-than-expected fuel prices or higher-than-expected demand and pricing, causing its FFO-to-debt ratio to rise above 30% on a sustained basis. HAWKER BEECHCRAFT: Court Rules on Motions in ADA Suit ----------------------------------------------------- District Judge Julie A. Robinson ruled on several motions filed in the case captioned HAROLD M. NYANJOM, Plaintiff, v. HAWKER BEECHCRAFT CORP., Defendant, CASE NO. 12-1461-JAR (D. Kan.). On November 27, 2012, a suit was filed by Harold M. Nyanjom in the United States District Court for the Southern District of New York against his former employer, Hawker Beechcraft Corp. He alleged claims of discrimination and retaliation under the Americans with Disabilities Act ("ADA") and the Kansas Act Against Discrimination ("KAAD"). The following motions were filed: Defendant's Motion for Summary Judgment, Plaintiff's Cross-Motion for Summary Judgment, Plaintiff's Motion for Leave to File Sur-Reply, Plaintiff's Amended Motion for Leave to File Sur-Reply, and Defendant's Motion to Strike Plaintiff's Response to Defendant's Reply to Defendant's Motion for Summary Judgment. Judge Robinson denied Plaintiff's cross-motion for summary judgment because, even if it had been timely filed, he has not met his burden of persuasion on his claims of discrimination and retaliation. On the other hand, Defendant's motion for summary judgment was granted because it has met its burden of demonstrating a lack of evidence that would produce a genuine issue of material fact on any of the essential elements of Plaintiff's claims. Judge Robsinson further ordered that Plaintiff's Motion for Leave to File Sur-Reply is moot and Plaintiff's Amended Motion for Leave to File Sur-Reply is granted. Defendant's Motion to Strike Plaintiff's Response to Defendant's Reply to Defendant's Motion for Summary Judgment was denied. A copy of the May 26, 2015 memorandum and order is available at http://is.gd/Exw5rLfrom Leagle.com. Hawker Beechcraft Corp., and its representatives, Defendant, represented by Anna C. Ritchie -- acritchie@martinpringle.com -- Martin, Pringle, Oliver, Wallace & Bauer, LLP & Terry L. Mann -- tlmann@martinpringle.com -- Martin, Pringle, Oliver, Wallace & Bauer, LLP. About Hawker Beechcraft Hawker Beechcraft Acquisition Company, LLC, headquartered in Wichita, Kansas, manufactures business jets, turboprops and piston aircraft for corporations, governments and individuals worldwide. Hawker Beechcraft Inc. and 17 affiliates filed for Chapter 11 reorganization (Bankr. S.D.N.Y. Lead Case No. 12-11873) on May 3, 2012. Hawker is 49%-owned by affiliates of Goldman Sachs Group Inc. and 49%-owned by Onex Corp. The Company's balance sheet at Dec. 31, 2011, showed $2.77 billion in total assets, $3.73 billion in total liabilities and a $956.90 million total deficit. Other claims include pensions underfunded by $493 million. Hawker's legal representative was Kirkland & Ellis LLP, its financial advisor was Perella Weinberg Partners LP and its restructuring advisor was Alvarez & Marsal. Epiq Bankruptcy Solutions LLC served as claims and notice agent. Sidley Austin LLP served as legal counsel and Houlihan Lokey Howard & Zukin Capital Inc. served as financial advisor to the DIP Agent and the Prepetition Agent. Wachtell, Lipton, Rosen & Katz represented an ad hoc committee of senior secured prepetition lenders holding 70% of the loans. Milbank, Tweed, Hadley & McCloy LLP represented an ad hoc committee of holders of the 8.500% Senior Fixed Rate Notes due 2015 and 8.875%/9.625% Senior PIK Election Notes due 2015 issued by Hawker Beechcraft Acquisition Company LLC and Hawker Beechcraft Notes Company. The members of the Ad Hoc Committee -- GSO Capital Partners, L.P. and Tennenbaum Capital Partners, LLC -- hold claims or manage accounts that hold claims against the Debtors' estates arising from the purchase of the Senior Notes. Deutsche Bank National Trust Company, the indenture trustee for senior fixed rate notes and the senior PIK-election notes, is represented by Foley & Lardner LLP. An Official Committee of Unsecured Creditors appointed in the case selected Daniel H. Golden, Esq., and the law firm of Akin Gump Strauss Hauer & Feld LLP as legal counsel. The Committee's financial advisor was FTI Consulting, Inc. On June 30, 2012, Hawker filed its Plan, which proposed to eliminate $2.5 billion in debt and $125 million of annual cash interest expense. The plan would give 81.9% of the new stock to holders of $1.83 billion of secured debt, while 18.9% of the new shares are for unsecured creditors. The proposal has support from 68% of secured creditors and holders of 72.5% of the senior unsecured notes. In July 2012, Hawker disclosed it was in exclusive talks with China's Superior Aviation Beijing Co. for the purchase of Hawker's corporate jet and propeller plane operations out of bankruptcy for $1.79 billion. In October 2012, Hawker unveiled that those talks have collapsed amid concerns a deal with Superior wouldn't pass muster with a U.S. government panel and other cross-cultural complications. Sources told The Wall Street Journal that Superior encountered difficulties separating Hawker's defense business from those units in a way that would make both sides comfortable the deal would get U.S. government clearance. The sources told WSJ the defense operations were integrated in various ways with Hawker's civilian businesses, especially the propeller plane unit, in ways that proved difficult to untangle. Thereafter, Hawker said it intends to emerge from bankruptcy as an independent company. On Oct. 29, 2012, Hawker filed a modified reorganization plan and disclosure materials. Hawker said the plan was supported by the official creditors' committee and by a "substantial majority" of holders of the senior credit and a majority of holders of senior notes. Hawker said it will either sell or close the jet-manufacturing business. The revised plan still offered 81.9% of the new stock in return for $921 million of the $1.83 billion owing on the senior credit. Unsecured creditors were slated to receive the remaining 18.9% of the new stock. Holders of the senior credit would receive 86% of the new stock. The senior credit holders were projected to have a 43.1% recovery from the plan. General unsecured creditors' recovery was a projected 5.7% to 6.3%. The recovery by holders of $510 million in senior notes was predicted to be 9.2% to 10%. The company's Joint Plan of Reorganization was approved by the Bankruptcy Court on Feb. 1, 2013, and became effective on Feb. 15. Hawker Beechcraft, on Feb. 19, 2013, disclosed that it formally emerged from the Chapter 11 process as Beechcraft Corp., a new company well-positioned to compete in the worldwide business aviation, special mission, trainer and light attack markets. HURLEY MEDICAL: Moody's Affirms 'Ba1' Rating on $99MM Revenue Bonds ------------------------------------------------------------------- Moody's Investors Service affirms Hurley Medical Center's Ba1 rating. This action affects approximately $99 million of rated revenue bonds issued through the City of Flint Hospital Building Authority. The outlook has been revised to stable from negative. SUMMARY RATING RATIONALE The outlook revision to stable considers Hurley's significantly improved operating margins and liquidity strength in FY 2014 and interim FY 2015. The Ba1 rating reflects Hurley's recent marked improvement in operating cash flow margins and significant liquidity strengthening during interim FY 2015. Hurley continues to be challenged by considerable competition in a somewhat modest service area and deeply underfunded Moody's-adjusted defined benefit pension plan (which is administered by the Municipal Public Employees Retirement System of Michigan, MERS). OUTLOOK The outlook revision to stable from negative reflects Hurley's significantly improved operating margins and liquidity strength in FY 2014 and through nine months FY 2015. WHAT COULD MAKE THE RATING GO UP Significant reduction in adjusted net pension liability Maintenance of elevated operating cash flow margin as recorded through nine months FY 2015 Continued significant strengthening of liquidity ratios WHAT COULD MAKE THE RATING GO DOWN Reversion to weaker operating margins Reversion to thinner liquidity ratios Failure to improve adjusted net pension liability OBLIGOR PROFILE Hurley is a 414-staffed bed tertiary referral hospital located in Flint, MI. Hurley is a component unit of the City of Flint. LEGAL SECURITY The bonds are secured by a pledge of net revenues of the obligated group, as defined in the bond documents. Hurley is the only member of the obligated group. While Hurley is component unit of the City of Flint, MI, the bonds are not secured by the full faith and credit of the City of Flint. Debt service reserve funds (DSRF) are in place. IMMEDIATE RESPONSE: Hughes' Bid for Reconsideration Denied ---------------------------------------------------------- District Judge Leonie M. Brinkema denied the plaintiff's Motion for Reconsideration in the case captioned HARLEY A. HUGHES, Plaintiff, v. IMMEDIATE RESPONSE TECHNOLOGIES, LLC, and IMMEDIATE RESPONSE TECHNOLOGIES, INC., Defendants, NO. 1:14-CV-1699 (LMB/IDD) (E.D. Va., Alexandria Div.). On March 13, 2015, the Court granted defendant Immediate Response Technologies, LLC's ("IRT LLC") two motions for summary judgment on all eight counts in plaintiff Harley A. Hughes' Amended Complaint. Hughes filed a Motion for Reconsideration, but only as to Counts 1, 2, 3, 4, and 8. Judge Brinkema denied Hughes' motion. He held that although IRT LLC filed its motions for summary judgment before the start of discovery, nothing prevented Hughes from obtaining affidavits from anyone who could corroborate his version of the facts to support his opposition to the summary judgment. However, he only provided his own affidavit and the affidavit of expert Harold G. Martin, whom he retained in anticipation of this litigation to perform a valuation estimate of IRT Inc. Standing alone, Hughes' self-serving affirmations are not sufficient to prolong this civil action, especially in light of all the documentary evidence presented by IRT LLC and the significant inconsistencies within Hughes' version of the facts. A copy of the May 6, 2015 memorandum opinion is available at http://is.gd/WEMeZffrom Leagle.com. Harley A. Hughes, Plaintiff, represented by James S. Kurz -- jkurz@rpb-law.com -- Redmon Peyton & Braswell LLP & Daniel Duane Mauler -- dmauler@rpb-law.com -- Redmon Peyton & Braswell LLP. Immediate Response Technologies, LLC, Defendant, represented by Philip John Harvey, Law Offices of Philip J.Harvey PLLC, John Isaac Post, Law Offices of Philip J.Harvey PLLC & Louise Tavey Gitcheva, Harvey & Binnall PLLC. INC RESEARCH: S&P Affirms 'BB-' Corp. Credit Rating --------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on Raleigh, N.C.-based contract research organization (CRO) INC Research LLC. The outlook is stable. At the same time, S&P assigned a 'BB-' issue rating and '3' recovery rating to INC's new senior secured credit facilities. The facilities consist of a $150 million revolving bank loan due 2020 and a $525 million term loan due 2020. The '3' recovery rating indicates expectations of meaningful (50% to 70%, in the lower half of the range) recovery in the event of a default. S&P is withdrawing its issue-level rating on INC's existing credit facilities because they have been repaid. "We currently assess INC's business risk as 'weak,' based on our view that the CRO sector is inherently cyclical given contract cancellation risk, and INC's market position within the industry," said Standard & Poor's credit analyst Colm Kelly. While recent success in signing new contracts has allowed INC to grow faster than the industry over the past few quarters, S&P believes INC is still at a disadvantage to the largest industry participants, which benefit from greater scale. Moreover, while favorable industry trends, including growth in overall pharma research spending and increased levels of outsourcing by pharma customers of the clinical research function, are likely to result in mid- to high-single-digit revenue growth over next few years, even the largest CROs are much smaller than the pharmaceutical company customers they serve, which limits pricing power. S&P's stable rating outlook reflects its view that INC's financial policies should remain supportive of leverage in the mid-3x range, and that recent backlog growth should support at least high-single-digit revenue growth over the next year. S&P could lower the rating if financial policies become more aggressive, resulting in leverage that it expects to be sustained over 4x for an extended period of time. This could occur if the company increased debt by around $300 million (assuming no increase in EBITDA). Under this scenario, S&P would likely assess credit quality as more consistent with 'B+' (as opposed to 'BB-') rated rating peers. A higher rating would require the company to reduce leverage below 3x, which S&P believes would require EBITDA levels 10% above its 2015 expected levels. While S&P views the recent equity offering as a continuation of the transition toward public ownership, it continues to view ongoing sponsor involvement as a risk factor. For this reason, further deleveraging alone would not result in an upgrade unless and until other shareholders own at least 60% of the company. S&P could, however, raise the rating if INC's overall revenue base converged with that of the larger players in this segment. Such a convergence could prompt S&P to revise the business risk to "fair". Ownership considerations would not be factor in this instance. INDEPENDENCE TAX II: Incurs $493,000 Net Loss in Fiscal 2015 ------------------------------------------------------------ Independence Tax Credit Plus L.P. II filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $493,000 on $868,000 of total revenues for the year ended March 31, 2015, compared with a net loss of $568,000 on $849,000 of total revenues for the year ended March 31, 2014. As of March 31, 2015, the Company had $2.70 million in total assets, $16.9 million in total liabilities, and a $14.2 million total partners' deficit. "At March 31, 2015, the Partnership's liabilities exceeded assets by $14,244,660 and for the year then ended, the partnership had net loss of $(493,313). These factors raise doubt about the Partnership's ability to continue as a going concern," the Partnership said in the report. A full-text copy of the Form 10-K is available for free at: http://is.gd/RHNWTx About Independence Tax Credit Plus L.P. II Based in New York, Independence Tax Credit Plus L.P. II was organized on Feb. 11, 1992, and commenced its public offering on Jan. 19, 1993. The general partner of the Partnership is Related Independence Associates L.P., a Delaware limited partnership. The general partner of Related Independence Associates L.P. is Related Independence Associates Inc., a Delaware Corporation. The ultimate parent of Related Independence Associates L.P. is Centerline Holding Company. The Partnership's business is primarily to invest in other partnerships owning leveraged apartment complexes that are eligible for the low-income housing tax credit enacted in the Tax Reform Act of 1986, some of which may also be eligible for the historic rehabilitation tax credit. The Partnership is in the process of developing a plan to dispose of all of its investments. INDEPENDENCE TAX IV: Posts $11.2 Million Net Income in Fiscal 2015 ------------------------------------------------------------------ Independence Tax Credit Plus L.P. IV filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing net income of $11.2 million on $2.8 million of total revenues for the year ended March 31, 2015, compared to a net loss of $2.7 million on $2.8 million of total revenues for the year ended March 31, 2014. As of March 31, 2015, the Company had $3.1 million in total assets, $13.4 million in total liabilities and a $10.3 million total partners' deficit. "At March 31, 2015, the Partnership's liabilities exceeded assets by $10,308,898 and for the year ended March 31, 2015, the Partnership recognized net income of $11,240,313, including gain on sale of properties of $11,555,138. These factors raise substantial doubt about the Partnership's ability to continue as a going concern," the Partnership said. A full-text copy of the Form 10-K is available for free at: http://is.gd/qgm0NI About Independence Tax IV New York-based Independence Tax Credit Plus L.P. IV is a limited partnership which was formed under the laws of the State of Delaware on Feb. 22, 1995. On July 6, 1995, the Partnership commenced a public offering of Beneficial Assignment Certificates representing assignments of limited partnership interests in the Partnership. The Partnership received $45,844,000 of gross proceeds from the Offering from 2,759 investors. The Offering was terminated on May 22, 1996. The Partnership's initial business was to invest in other partnerships owning leveraged apartment complexes that are eligible for the low-income housing tax credit enacted in the Tax Reform Act of 1986, some of which may also be eligible for the historic rehabilitation tax credit. The Partnership is currently in the process of developing a plan to dispose of all of its investments. It is anticipated that this process will take a number of years. INDUSTRIAL SYSTEMS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Industrial Systems, Inc. 5513 Highway 348 Delta, CO 81416 Case No.: 15-17212 Chapter 11 Petition Date: June 30, 2015 Court: United States Bankruptcy Court District of Colorado (Denver) Judge: Hon. Howard R Tallman Debtor's Counsel: Andrew Figel, Esq. MILLER & LAW 1900 W. Littleton Blvd. Littleton, CO 80120 Tel: 303-722-6500 Fax: 303-722-9270 Email: waf@lpmlaw.com Total Assets: $5.4 million Total Liabilities: $3.3 million The petition was signed by John Robert Isom, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/cob15-17212.pdf IRA JOHNNY HARBER: Debts to Renasant Bank Nondischargeable ---------------------------------------------------------- Bankruptcy Judge Jason D. Woodard found that the defendant's debts to plaintiff are nondischargeable under 11 U.S.C. Section 523(a)(2)(B), in the case captioned In re: IRA JOHNNY HARBER, Chapter 11, Debtor. RENASANT BANK, Plaintiff, v. IRA JOHNNY HARBER, Defendant, CASE NO. 11-15900-JDW, A.P. NO. 12-01107-JDW (Bankr. N.D. Miss.). Creditor Renasant Bank commenced an adversary proceeding against debtor Ira Johnny Harber, seeking a determination that debts owed by Harber are nondischargeable. Judge Woodard found that Harber unequivocally possessed the requisite intent to deceive when he prepared and presented the financial statements which Renasant Bank actually and reasonably relied upon. The financial statements contained not only baseless exaggerations of property values, but completely falsified information concerning assets that did not exist. A copy of the May 29, 2015 memorandum opinion and order is available at http://is.gd/S3HK61from Leagle.com. Ira Johnny Harber filed a bankruptcy case on March 16, 2012. IRON MOUNTAIN: S&P Assigns 'BB' Rating on Sr. Secured Facility -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' issue-level rating and '1' recovery rating to Boston-based Iron Mountain Inc.'s senior secured credit facility, which consists of a $1.5 billion revolver and $250 million term loan A, following an announced debt refinancing. The '1' recovery rating indicates S&P's expectation for very high recovery (90%-100%) of principal for debtholders in the event of a default. The issue-level rating on the debt is two notches higher than our 'B+' corporate credit rating on the company. At the same time, S&P revised its recovery rating on the company's senior unsecured debt to '3' from '4'. The issue-level rating is unchanged at 'B+'. The '3' recovery indicates S&P's expectation for meaningful recovery (50%-70%; upper half of the range) of principal in the event of a default. Iron Mountain plans to close on its announced senior secured credit facility refinancing on July 6, 2015. It plans to extend the maturity date on the $1.5 billion revolving credit facility and $250 million term loan A by three years to 2019. S&P do not expect the transaction to affect the company's adjusted leverage ratio, which was 5.4x as of March 31, 2015. The company plans to use the proceeds to refinance its existing senior secured credit facility. The revised recovery rating on the senior unsecured debt is based on a higher estimate of EBITDA and emergence enterprise value under S&P's simulated default scenario. It also reflects the benefit of the senior note domestic subsidiary guarantees, which rank pari pasu with the guarantees the company provides to senior secured lenders. RECOVERY ANALYSIS Key analytical factors -- S&P's simulated default scenario contemplates a default in 2019 as a result of financial stress from an accelerating shift away from paper records storage, compounded by large shareholder distributions that drain liquidity and less equity market access than management envisions. -- S&P's default scenario assumes that Iron Mountain would reorganize or sell its most valuable assets piecemeal, rather than liquidate the business. Therefore, S&P valued the company on a going-concern basis using a 6x multiple of its estimated emergence EBITDA Simulated default assumptions -- Simulated year of default: 2019 -- EBITDA at emergence: $518 million -- EBITDA multiple: 6x -- An 85% draw of the revolving credit facility at the time of Default Simplified waterfall -- Net enterprise value (after 11% administrative costs): $2.8 billion -- Priority claims (capital leases/other mortgages/accounts receivable securitization): $407 million -- Net value available to creditors: $2.4 billion ------------------ -- Secured first-lien debt: $1.5 billion -- Recovery expectations: 90%-100% -- Senior unsecured debt: $1.4 billion -- Recovery expectations: 50%-70% (upper half of the range) -- Senior subordinated notes: $1.8 billion -- Recovery expectation: 0%-10% Note that all debt amounts include six months of prepetition interest. RATINGS LIST Iron Mountain Inc. Corporate Credit Rating B+/Positive/-- Rating Unchanged; Recovery Rating Revised To From Iron Mountain Inc. Senior unsecured B+ B+ Recovery Rating 3H 4 New Ratings Iron Mountain Inc. Senior secured $1.5 billion revolver due 2019* BB Recovery Rating 1 $250 million term loan A due 2019* BB Recovery Rating 1 *Refinanced amount. J.C. PENNEY: Moody's Revises Outlook to Pos. & Affirms 'Caa1' CFR ----------------------------------------------------------------- Moody's Investors Service revised J.C. Penney Company, Inc.'s rating outlook to positive from stable. Moody's also affirmed the company's Caa1 Corporate Family Rating, and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-2. All ratings are affirmed. "The rating outlook revision to positive from stable reflects Moody's view that JC Penney's operating performance has shown signs of improvement as a result of better merchandising, cost controls, and integration of its online business" said Moody's Vice President Scott Tuhy. He added, "we have seen positive momentum building for the company to achieve $700 to $800 million of adjusted EBITDA, a level in which earnings would fully cover cash flow and interest". The upgrade in the Speculative Grade Liquidity rating primarily reflects the company's improved operating performance as we expect free cash flow to be near break-even levels and the company's meaningful cash balances are sufficient to cover expected seasonal working capital needs. J.C. Penney Company, Inc. These ratings were affirmed: Corporate Family Ratings at Caa1 Probability of Default Rating at Caa1-PD The following rating was upgraded: Speculative Grade Liquidity rating to SGL-1 from SGL-2 For J.C. Penney Corporation, Inc. These ratings were affirmed: $1.85 billion asset based revolving credit facility due June 2019 at B1 (LGD2) $500 million asset based "first in last out" term loan due June 2019 at B2 (LGD3) $2.2 billion term loan due 2018 at B2 (LGD3) Senior Unsecured Notes at Caa2 (LGD5) Medium Term Notes Program at (P)Caa2 Senior Unsecured Shelf at (P)Caa2 RATINGS RATIONALE J.C. Penney's Caa1 Corporate Family Rating reflects the company's weak credit metrics with adjusted debt to EBITDA at around 10 times and negative interest coverage for the twelve months ending May 2, 2015. The rating also reflects the company's ongoing operating losses, with the company reporting an operating loss of $200 million for the twelve months ending May 2, 2015. The Caa1 CFR rating also reflects our expectation that the company's credit metrics will remain weak over the next twelve to eighteen months. Moody's also expects J.C. Penney's operating performance to continue to gradually improve, and the rating reflects our view that further improvement in earnings is required for J.C. Penney to have a sustainable capital structure. J.C. Penney's Caa1 rating is supported by the company's very good liquidity and lack of near dated debt maturities which provides it with time to implement its turnaround efforts to grow sales, gross margins, and free cash flow. Moody's estimates that J.C. Penney will likely be free cash flow breakeven to slightly negative in 2015, given J.C. Penney's reduced level of capital expenditures, better inventory management, and strengthened performance. Moody's believes J.C. Penney's $1,04 billion in available cash at May 2, 2015 and its $1.85 billion asset based credit facility provide it with very good liquidity which supports the potential range of cash flow outcomes. The positive rating outlook acknowledges J.C. Penney's continued progress with sales growth, margin expansion, and increasing momentum towards a sustainable capital structure evidenced by its recent upward guidance. While Moody's still has concerns in the company achieving its long term targets, we believe the company has many levers to pull in the event its sales growth is softer than panned. The positive rating outlook also reflects the company's good liquidity and lack of near dated debt maturities which provides the company with the time to implement its turnaround efforts. Given the significant weakness is credit metrics, an upgrade is unlikely at the present time. Over time, ratings could be upgraded should earnings improve such that it becomes likely that debt to EBITDA will remain below 7.25 times and EBITDA-Capital Expenditures to interest expense approaching 1.0 time while maintaining a good liquidity profile. Ratings could be downgraded should J.C. Penney's liquidity erode, should its sales and earnings not continue to evidence signs improvement, or should the overall probability of default increase. The rating outlook could be revised to stable should the company's operating performance not meaningfully improve above current levels. The principal methodology used in these ratings was Global Retail Industry published in June 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. JAMES LEE NICKESON: Court Rules on Trustee's Clawback Suit ---------------------------------------------------------- Bankruptcy Judge Charles L. Nail, Jr., ruled on the Trustee's adversary complaint in the case captioned FORREST C. ALLRED, TRUSTEE Plaintiff, v. CAMILLE NICKESON; LEE NICKESON; JAMES L. NICKESON FARMS, INC.; and LLJ, LLP Defendants, ADV. NO. 14-1004 (Bankr. D.S.D.). Forrest C. Allred, the Chapter 7 trustee, filed against Camille Nickeson, Lee Nickeson, James L. Nickeson Farms, Inc. -- Farm Corporation -- and LLJ, LLP, an Adversary Complaint to Set Aside and Recover Fraudulent Transfers, Reverse Pierce the Corporate Veil, Substantively Consolidate, and for Turnover and Injunctive Relief as it relates to the counts against defendants Camille Nickeson and James L. Nickeson Farms, Inc. Allred's Complaint contained the following counts: Count I -- For avoidance of Debtor's transfer of the 97% interest in Farm Corporation to Camille Nickeson, alleging the transfer was actually fraudulent under 11 U.S.C. Section 548(a)(1)(A); Count II -- For avoidance of Debtor's transfer of the 97% interest in Farm Corporation to Camille Nickeson, alleging the transfer was constructively fraudulent under 11 U.S.C. Section 548(a)(1)(B); Count III -- For avoidance of Debtor's transfer of the 97% interest in Farm Corporation to Camille Nickeson, alleging the transfer was actually fraudulent under 11 U.S.C. Section 544(b) and S.D.C.L. Section 54-8A-4(a)(1); Count IV -- For avoidance of Debtor's transfer of the 97% interest in Farm Corporation to Camille Nickeson alleging the transfer was constructively fraudulent under 11 U.S.C. Section 544(b) and S.D.C.L. Section 54-8A-4(a)(2); Count VII -- For recovery under 11 U.S.C. Section 550 of the Farm Corporation stock transferred to Camille Nickeson, or its value, on behalf of Debtor's bankruptcy estate; Count VIII -- For a turnover under 11 U.S.C. Sections 542 and 543 of Debtor's interest in the LLJ partnership, with a parenthetical reference to Farm Corporation; Count IX -- For a "reverse piercing" of Farm Corporation's corporate veil; Count X -- For substantive consolidation of the assets of Camille Nickeson and Farm Corporation with Debtor's bankruptcy estate; and Count XI -- For a restraining order and permanent injunction against Camille Nickeson and Farm Corporation to prevent Farm Corporation from selling, encumbering, or otherwise transferring assets of Farm Corporation; In his May 28, 2015 decision which is available at http://is.gd/4CVya8from Leagle.com, Judge Nail entered judgment: -- in favor of Trustee-Plaintiff Allred on Counts I, II, III, IV, VII, and XI; -- dismissing with prejudice Count VIII as to defendant James L. Nickeson Farms, Inc.; and -- dismissing without prejudice Counts IX and X. About James Lee Nickeson James Lee Nickeson filed a Chapter 11 petition in bankruptcy on December 3, 2009. On June 12, 2012, 16 months after confirmation of a plan, Nickeson moved for dismissal of his Chapter 11 case. No party in interest opposed his motion, and the court dismissed the Chapter 11 case on July 9, 2012. On August 27, 2013, Nickeson filed a chapter 7 petition (Bankr. D.S.D. Case No. 13-10137) in bankruptcy. JEANNINE N. BEARMAN: Motion to Prevent Turnover Computers Denied ---------------------------------------------------------------- Judge David M. Warren of the United States Bankruptcy Court for Eastern District of North Carolina, Fayetteville Division, denied the motion to prevent the Chapter 7 trustee of the estate of Jeanine M. Berman from turning over computers to Michael S. McGinnis. Jeannine N. Berman filed a petition under Chapter 11 of the United States Bankruptcy Code. After the Debtor's death on August 17, 2012, the court converted the case to a Chapter 7 proceeding on September 27, 2012. On October 11, 2013, the Trustee filed an adversary proceeding captioned Sparkman, Trustee v. Michael S. McGinnis, et al, adversary proceeding number 13-00171-8-RDD, seeking to avoid and set aside certain transfers made to the Debtor's IRA investments and other assets. On September 24, 2014, Micheletti and Glaves Living Trust filed an adversary proceeding captioned Micheletti Family Trust, et al. v. Jeannine N. Berman, adversary proceeding number 14-00153-8-RDD, seeking the revocation of the Debtor's Chapter 7 discharge pursuant to Section 727(d) of the Bankruptcy Code. The Trustee filed a Motion to Compromise Adversary Proceeding on December 12, 2014, under the terms of the Mediation Settlement Agreement. The parties, their counsel, and the mediator signed the MSA. Paragraph 13 of the MSA states: "Upon the close of the bankruptcy estate by final decree and confirmation by the bankruptcy estate CPA's that the same are no longer needed, which shall be no later than June 16, 2015, the Trustee shall deliver Mr. Sasser the computers and phones of the debtor along with known access codes and passwords." In order to prevent the Trustee from delivering the computer, phones, and tablets of the Debtor to Michael S. McGinnis, Micheletti filed the Motion to Prevent Turnover. Micheletti believes that there are unscheduled, unreported, and unfound assets of the Debtor. Those assets now belong to Micheletti, Micheletti asserted. Micheletti also believed that the key to finding the unscheduled, unreported, and unfound assets of the Debtor may lie in the Electronic Property. Micheletti argued that if the Electronic Property is delivered to McGinnis, in care of Travis Sasser, on June 16, 2015, a real and imminent possibility exists that any evidence of unscheduled, unreported, and unfound assets of the Debtor will be lost forever. Judge Warren denied the Trustee's ex-parte motion to prevent turnover. It found out that the parties freely negotiated and willingly signed the MSA. The parties had the capability of negotiating each provision of the MSA, including the turnover of the Electronic Property to McGinnis. Regardless of whether the failure to negotiate the terms of the turnover was an oversight at the time of mediation or whether the terms of Paragraph 13 are now regrettable in hindsight, the court should not modify the terms of an executed agreement resulting from an arms-length negotiation under the supervision of a seasoned and experienced mediator. The MSA, as approved by the court, is valid as entered, is binding on the parties, and a modification of the MSA or Judge Doub's Order is not justified. The case is IN RE: JEANNINE N. BERMAN, Deceased, Chapter 11, Debtor, CASE NO. 11-07886-8-DMW (Bankr. E.D.N.C.). A full-text copy of Judge Warren's Order dated June 16, 2015, is available at http://bit.ly/1FDH0bDfrom Leagle.com. JW RESOURCES: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- JW Resources, Inc. 15-60831 8331 E. Walker Springs Lane, Suite 200 Knoxville, TN 37923 Straight Creek Coal Mining, Inc. 15-60832 8331 E. Walker Springs Lane, Suite 200 Knoxville, TN 37923 SCRB Processing, Inc. 15-60835 8331 E. Walker Springs Lane, Suite 200 Knoxville, TN 37923 Type of Business: The Debtors are U.S. producers of thermal coal with mineral reserves, mining operations and coal properties located in the Central Appalachian regions of Kentucky. Chapter 11 Petition Date: June 30, 2015 Court: United States Bankruptcy Court Eastern District of Kentucky (London) Debtors' Counsel: Paige Leigh Ellerman, Esq. Ronald E. Gold, Esq. Douglas L. Lutz, Esq. FROST BROWN TODD LLC 3300 Great American Tower 301 E. Fourth Street Cincinnati, OH 45202 Tel: (513) 651-6483 Email: pellerman@fbtlaw.com rgold@fbtlaw.com dlutz@fbtlaw.com - and - Adam R. Kegley, Esq. 250 West Main Street, Suite 2800 Lexington, KY 40507 Tel: (859) 231-0000 Fax: (859) 231-0011 E-mail: akegley@fbtlaw.com Debtors' ENERGY VENTURES ANALYSIS, INC. Sale Advisor: Estimated Estimated Assets Liabilities ----------- ------------ Straight Creek Coal Mining $10MM-$50MM $50MM-$100MM JW Resources, Inc. $1MM-$10MM $50MM-$100MM SCRB Processing, Inc. $0-$50,000 $50MM-$100MM The petition was signed by Josh Porter, authorized representative. List of Debtors' 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Penn Virginia Operating Co. LLC Accounts $917,591 P.O. Box 102992 Payable Atlanta, GA 30368 Midland Powder, LLC Accounts $440,819 2691 Andersonville Highway Payable Suite 100 Cinton, TN 37716 Bell County Sheriff's Department Taxes & Debts $405,663 P.O. Box 448 Pineville, KY 40977 Whayne Supply Company Accounts $351,819 National City Trust Oper: Misc. Payable P.O. Box 94777 Cleveland, OH 44101 Brandeis Accounts $196,487 Payable Linsco Energy, LLC Accounts $194,064 Payable Eastern Kentucky Equipment Sales Accounts $170,447 & Service Payable C B Industries, Inc. Accounts $168,884 Payable Kentucky State Treasurer Taxes & Debts $124,034 Foundation Royalty Company Accounts $109,193 Payable Carolina Hydraulics, Inc. Accounts $93,946 Payable C & M Giant Tire, LLC Accounts $72,864 Payable J. Turner Trucking Co., Inc. Accounts $63,674 Payable Jack B. Green Accounts $59,107 Payable Summit Engineering, Inc. Accounts $52,890 Payable Robert Half Finance & Accounting Accounts $52,500 Payable Stowers Machinery Corporation Accounts $49,281 Payable LaFollette Mine Supply Co. Accounts $43,326 Payable First Insurance Funding Accounts $38,942 Payable Industrial Supply Co. Accounts $38,457 Payable KID BRANDS: Vogel Bach Approved to Prosecution Turnover Actions --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey authorized Kid Brands, Inc., et al., to employ Vogel Bach, P.C., as special counsel for the prosecution of the turnover actions, nunc pro tunc to May 4, 2015. The Debtors agreed that the firm will be compensated from cash recoveries of the turnover actions plus its reasonable out of pocket costs and expenses. The Court also ordered that the firm will, among other things: 1. receive a contingency fee of 22% of the cash value received, by settlement or otherwise, on account of a turnover action; 2. remit the net recoveries to the Debtors 21 days after the firm receives a defendant's payment; 3. be reimbursed from gross proceeds for its reasonable and necessary out of pocket expenses, including filing fees; 4. not be responsible for expert witness fees and expenses or the fees and expenses of any mediator, which will be paid by the Debtors' estates; 5. not hire any expert or mediator without the prior written consent of (i) the Debtors, (ii) the DIP Lenders, and (iii) the Committee. To the best of the Debtors' knowledge, the firm does not represent or hold any interest adverse to the Debtors or their estates with respect to the matters on which the firm is to be employed. The firm can be reached at: Eric H. Horn, Esq. Heike Vogel, Esq. Victoria Bach, Esq. VOGEL BACH, P.C. 1745 Broadway, 17th FL New York, NY 10019 - and - 220 South Orange Avenue Livingston, NJ 07039 Tel: (973) 577-7264 Fax: (646) 607-2075 About Kid Brands Based in Rutherford, New Jersey, Kid Brands, Inc., is a designer, importer, marketer, and distributor of infant and juvenile consumer products. Its operating subsidiaries consist of Kids Line, LLC, CoCaLo, Inc., Sassy, Inc., and LaJobi, Inc. Citing their inability to raise capital due to contingent liabilities and operational issues, Kid Brands and six of its U.S. subsidiaries each filed a voluntary petition (Bankr. D.N.J. Lead Case No. 14-22582) on June 18, 2014. The Court approved the joint administration of their cases. Kid Brands Inc. disclosed $921,358 in assets and $47,947,589 in liabilities as of the Chapter 11 filing. Judge Donald H. Steckroth presides over the cases. Lowenstein Sandler LLP represents the Debtors in their restructuring effort. PricewaterhouseCoopers LLP is the Debtors' financial advisor, and GRL Capital Advisors acts as restructuring advisors. GRL's Glenn Langberg is the Debtors' chief restructuring officer. Rust Consulting/Omni Bankruptcy is the Debtors' claims and noticing agent. The Debtors are pursuing a sale of the assets pursuant to Section 363 of the Bankruptcy Code. Salus Capital Partners LLC and Sterling National Bank have committed to provide up to $49 million in DIP financing to the Debtors. The Official Committee of Unsecured Creditors retained Kelley Drye & Warren LLP as its counsel, and Emerald Capital Advisors Corp. as its financial advisors. KOLO LLC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Kolo, LLC 15-21161 1224 Mill Street Building B, Suite 9 East Berlin, CT 06023 Kolo Retail, LLC 15-21162 1224 Mill Street Building B, Suite 9 East Berlin, CT 06023 Chapter 11 Petition Date: June 30, 2015 Court: United States Bankruptcy Court District of Connecticut (Hartford) Judge: Hon. Ann M. Nevins Debtors' Counsel: Kaitlin M. Humble, Esq. HALLORAN & SAGE LLP 225 Asylum Street Tel: Hartford, CT 06103 Tel: 260-241-4070 Fax: 860-548-0006 Email: humble@halloransage.com - and - Craig I. Lifland, Esq. HALLORAN & SAGE LLP 225 Asylum Street Hartford, CT 06103 Tel: 860-241-4044 Fax: 860-548-0006 Email: lifland@halloransage.com Total Total Assets Liabilities ---------- ----------- Kolo, LLC $149,262 $1.7-Mil. Kolo Retail, LLC $193,201 $1.2-Mil. The petition was signed by Peter Dunn, president and CEO. A list of Kolo, LLC's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ctb15-21161.pdf A list of Kolo Retail, LLC's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ctb15-21162.pdf LANTHEUS MEDICAL: S&P Raises Corp. Credit Rating to 'B ------------------------------------------------------ Standard & Poor's Ratings Services raised its corporate credit rating on North Billerica, Mass.-based Lantheus Medical Imaging Inc. to 'B' from 'B-'. The outlook is stable. At the same time, S&P assigned its 'B' issue-level rating to the company's proposed $365 million term loan B. The recovery rating on the term loan is '4', reflecting S&P's expectation of average (30% to 50%, at the low end of the range) recovery in the event of payment default. "The upgrade follows Lantheus' successful IPO, from which it used partial proceeds for debt reduction, and its simultaneous recapitalization into a new term loan B," said Standard & Poor's credit analyst Maryna Kandrukhin. S&P expects the transactions to result in pro forma leverage declining to 5.5x at the end of 2015 and to about 5x at the end of 2016. Moreover, S&P's revised base-case expectation is that Lantheus will generate between $15 million and $20 million of free cash flow over the next 18 months. Lantheus continues to have a narrow business focus, product concentration, and a relatively small size that makes it susceptible to customer pricing demands. Moreover, it continues to have a dependence on contract manufacturers since a secondary contract manufacturer is not expected to be commercially available until the first half of next year, which S&P believes increases the risk of product shortage issues. In addition, increased competition in its largest product, and the absence of a Cardinal Health contract, continue to pose competitive challenges. S&P continues to assess business risk as "vulnerable". The stable outlook reflects S&P's view that Lantheus will generate low-single-digit revenue growth over the next 12 to 18 months that, along with stable EBITDA margins, will contribute to positive free cash flow generation and maintenance of leverage in the 5x to 5.5x range over the next year. S&P could lower the rating if Lantheus does not meet S&P's base-case expectation that it will generate at least $15 million of free cash flow over the next 18 months. This could occur if revenues contract by more than 300 basis points and margins contract by a similar amount. Such a scenario would lead S&P to believe that Lantheus' credit profile would be more similar to 'B-' (as opposed to 'B') rated peers. S&P could raise the rating once Lantheus successfully commercializes a secondary contract manufacturer and demonstrates a second consecutive year of at least stable EBITDA in 2015. Such actions would strengthen our perception that Lantheus' business continues to be stable and could lead S&P to revise its business risk assessment to weak, from vulnerable. Under this scenario, S&P would also need to be confident that Lantheus would be able to maintain leverage below 5x, consistent with S&P's current expectations for fiscal 2016. LAXMI REAL ESTATE: Case Summary & 19 Top Unsecured Creditors ------------------------------------------------------------ Debtor: Laxmi Real Estate, LLC 11 Dodge Avenue East Haven, CT 06512 Case No.: 15-31115 Chapter 11 Petition Date: June 30, 2015 Court: United States Bankruptcy Court District of Connecticut (New Haven) Judge: Hon. Julie A. Manning Debtor's Counsel: Ronald Chorches, Esq. LAW OFFICES OF RONALD I. CHORCHES 449 Silas Deane Highway, 2nd Floor Wethersfield, CT 06109 Tel: 860-563-3955 Fax: 860-513-1577 Email: ronchorcheslaw@sbcglobal.net Total Assets: $760,160 Total Liabilities: $1.8 million The petition was signed by Nikulkumar Patel, managing member. A list of the Debtor's 19 largest unsecured creditors is available for free at http://bankrupt.com/misc/ctb15-31115.pdf LEMIRE SCHMEGLAR: US Bank Entitled to Enforce Mortgage Note ----------------------------------------------------------- Bankruptcy Judge Jack B. Schmetter entered judgment in favor of US Bank N.A. and Wells Fargo Bank, N.A. in the case Lemire Schmeglar, Interpleader Plaintiff, v. PHM Financial, Inc. d/b/a PHM Financial Services, DLJ Mortgage Capital Inc., Mortgage Electronic Registration Systems, Inc., U.S. Bank N.A. as Trustee for Credit Suisse First Boston ARMT 2005-5, U.S. Bank N.A. as Trustee for Adjustable Rate Mortgage 2005-5, Adjustable Rate Mortgage Backed Pass Through Certificates, Series 2005-5, Wells Fargo Bank, N.A., Credit Suisse First Boston Mortgage Securities Corp., Adjustable Rate Mortgage 2005-5, Interpleader Defendants, ADVERSARY NO. 14-AP-121 (Bankr. N.D. Ill., Eastern Div.). Debtor Lemire Schmeglar filed an interpleader as an adversary proceeding to determine which party is entitled to payment among the many entities that have claimed an ownership or interest in a note and/or mortgage evidencing a loan he obtained in 2005 from PHM Financial, Inc. Judge Schmetter held that US Bank is legally entitled to enforce the note because it possesses the original signed note, endorsed in blank. Wells Fargo, as servicer, is empowered under a Pooling and Servicing Agreement to collect payment on behalf of US Bank. A copy of the May 22, 2015 findings of fact and conclusion of law is available at http://is.gd/kdwsUjfrom Leagle.com. About Lemire Schmeglar After a state court judgment of foreclosure in favor of the plaintiff in that case, but before a foreclosure sale took place, Lemire Schmeglar filed for bankruptcy relief under Chapter 11. A plan of reorganization was confirmed on July 8, 2013, and an order was entered granting a final decree on March 21, 2014. LIME ENERGY: May Issue 250,000 Shares Under 2010 Stock Plan ----------------------------------------------------------- Lime Energy Co. filed a Form S-8 registration statement with the Securities and Exchange Commission to register an additional 250,000 shares of common stock, $0.0001 par value, of the Company that may be offered pursuant to the Company's 2010 Non-Employee Directors Stock Plan. The proposed maximum aggregate offering price is $850,000. A copy of the prospectus is available for free at http://is.gd/g3W43l About Lime Energy Headquartered in Huntersville, North Carolina, Lime Energy Co. -- http://www.lime-energy.com/-- is engaged in planning and delivering clean energy solutions that assist its clients in their energy efficiency and renewable energy goals. The Company's solutions include energy efficient lighting upgrades, energy efficient mechanical and electrical retrofit and upgrade services, water conservation, building weatherization, on-site generation and renewable energy project development and implementation. The Company provides energy solutions across a range of facilities, from high-rise office buildings, distribution facilities, manufacturing plants, retail sites, multi-tenant residential buildings, mixed use complexes, hospitals, colleges and universities, government sites to small, single tenant facilities. Lime Energy reported a net loss available to common stockholders of $5.6 million in 2014, a net loss available to common stockholders of $18.5 million in 2013 and a net loss of $31.8 million in 2012. As of March 31, 2015, the Company had $53.81 million in total assets, $38.04 million in total liabilities, $9.38 million in contingently redeemable series C preferred stock, and $6.38 million in total stockholders' equity. LOMA LINDA: S&P Lowers Rating on 2014A/B/C Revenue Bonds to 'BB+' ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term rating to 'BB+' from 'BBB' on the California Statewide Communities Development Authority's $574 million series 2014A, $123 million series 2014B, and $13 million series 2014C revenue bonds, issued for Loma Linda University Medical Center. The outlook remains negative. With this review, S&P is reclassifying LLUMC as a multisite system, because LLUMC now meets S&P's system definition by having three or more hospitals and operating revenues in excess of $1.5 billion. "The downgrade and continuing negative outlook reflect LLUMC's extremely large campus transformation project that is now board approved for a total cost of $1.049 billion, up from an estimated $926.3 million at the time of our previous analysis," said Standard & Poor's credit analyst Kenneth Gacka. "In our view, the magnitude of the now-final approved project and the planned debt issuance in less than a year, on top of LLUMC's balance sheet, which we believe is currently thin, prompt the downgrade." More specifically, the rating and negative outlook reflect S&P's view of these credit risks: -- LLUMC's $1.049 billion campus transformation project that will result in more than $800 million of additional debt as well as more than $200 million from cash flow over the multiyear course of the projects; -- The organization's currently only adequate balance sheet; -- LLUMC's reliance on California's provider fee program for the majority of its operating profits; -- The impending project risks that inherently exist in major construction projects, including the possibility for future scope changes, construction delays, and the ultimate operationalization of the assets; and -- The reliance on sizable future fundraising for the master facility plan, though there has been significant progress to date. LOYALIST GROUP: Executes Forbearance Agreement with Senior Lender ----------------------------------------------------------------- Loyalist Group Limited on June 29 disclosed that the Company has executed a forbearance agreement with an effective date of June 26, 2015 with Bank of Montreal (the "Senior Lender"). The forbearance agreement provides for a repayment date of September 30, 2015 provided that certain conditions and milestones are met, including the Company raising a minimum of $2.8 million of cash from existing or new investors by no later than July 10, 2015. "Execution of the forbearance agreement is an important milestone which enables us to move forward with our financing initiatives. We appreciate Bank of Montreal's collaborative effort with our new management team to put Loyalist back on sound footing and rebuild confidence with all parties," said Shawn Klerer, Chief Executive Officer. As noted in the press release dated June 22, 2015, the Company is presently undertaking a proposed non-brokered financing to raise gross proceeds of a minimum of $2.5 million and a maximum of $8.0 million (the "Offering") to be completed in two stages. Under the proposed terms of the Offering, the Corporation will issue up to 800,000 units (the "Units") at a price of C$10.00 per Unit for gross proceeds of C$8,000,000. Terms of the Offering are more fully described in the June 22, 2015 press release. The net proceeds of the Offering will be used solely to fund the Company's working capital requirements during the period of forbearance under the Company's agreement with the Senior Lender. No portion of the net proceeds of the Offering will be used to repay any outstanding indebtedness (consisting of loans, credit facilities and debentures) of the Company, including amounts owing to the Senior Lender. To date, the Company has obtained firm orders for the Offering totaling $2.8 million, of which $2.0 million is slated to close in the first stage, which is now expected to occur, on or about June 30, 2015. The remaining $0.8 million of firm orders will close in the second stage, which is now expected to occur on or about July 6, 2015. The Company will continue to work to obtain additional firm orders for the second closing. Insiders, including directors, officers, management and employees, together with family and friends have already committed $1.6 million to the Offering. About Loyalist Loyalist owns and operates private English as a Second Language (ESL) Schools, Career Colleges and Community Colleges in Toronto, Vancouver, Victoria and Halifax. MADERA VOLUNTEER: Rural Fire Dept. Files for Bankruptcy ------------------------------------------------------- Madera Volunteer Fire Co., a volunteer fire department in rural Pennsylvania, filed for bankruptcy on June 30 to protect its main pipeline of revenue: Friday night bingo games. According to Katy Stech, writing for The Wall Street Journal, citing documents filed in U.S. Bankruptcy in Johnstown, Pa., reported that officials who put the nonprofit fire department into bankruptcy urged a judge to let them spend restricted cash needed for "[hosting] bingo games, fuel, propane, telephone services, insurance and other normal and necessary costs of business." MADERA VOLUNTEER: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Madera Volunteer Fire Co., Inc. 2720 Main Street Madera, PA 16661 Case No.: 15-70469 Chapter 11 Petition Date: June 30, 2015 Court: United States Bankruptcy Court Western District of Pennsylvania (Johnstown) Judge: Hon. Jeffery A. Deller Debtor's Counsel: Kevin J. Petak, Esq. SPENCE CUSTER SAYLOR WOLFE & ROSE, LLC P.O. Box 280 Johnstown, PA 15907-0280 Tel: 814-536-0735 Fax: 814-539-1423 Email: kpetak@spencecuster.com Total Assets: $898,980 Total Liabilities: $2.2 million The petition was signed by Larry S. Hayward, president. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. METRO AFFILIATES: Has Until Dec. 31 to Object to Claims ------------------------------------------------------- U.S. Bankruptcy Judge Sean Lane has given Metro Affiliates Inc. until Dec. 31, 2015, to file objections to claims against the company and its affiliates. The extension would allow the company to settle priority non-tax claims held by the National Labor Relations Board, Amalgamated Transit Union Local 1181-1061, and by the health and welfare benefit funds associated with the union. The aggregate amount of priority non-tax claims asserted by these groups exceeds the amount anticipated to be available for distribution to unsecured creditors. General unsecured creditors may not receive payments under Metro Affiliates' liquidation plan unless these priority non-tax claims are resolved by the company, court filings show. About Metro Affiliates Staten Island, New York-based Metro Affiliates, Inc., and its subsidiaries sought protection under Chapter 11 of the Bankruptcy Code on Nov. 4, 2013 (Bankr. S.D.N.Y. Case No. 13-13591). The case is assigned to Judge Sean Lane. In its schedules, Metro Affiliates disclosed $14,438,351 in total assets and $163,562,007 total liabilities. Lisa G. Beckerman, Esq., and Rachel Ehrlich Albanese, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York; and Scott L. Alberino, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Washington, D.C., represent the Debtors. Silverman Shin & Byrne PLLC serves as special counsel. Rothschild Inc. serves as the Debtors' investment banker, while Kurtzman Carson Consultants LLC serves as their claims and noticing agent. The Joint Chapter 11 Plan of Liquidation filed by Metro Affiliates, Inc. and its debtor affiliates embodies a global settlement among the Debtors, the Creditors Committee, Wells Fargo and Wayzata for a fair allocation of the Debtors' remaining assets. Wayzata holds a substantial majority of the Debtors' Notes. Among other things, the Settlement provides that proceeds of the Noteholders' Collateral will be used to pay certain administrative expenses. The Plan creates a trust for unsecured creditors who are given the right to pursue lawsuits. Recoveries will be shared, with 70% going to noteholders on their remaining claim of $14.3 million and 30% earmarked for other unsecured creditors. On June 11, 2014, the U.S. Bankruptcy Court entered its Findings of Fact, Conclusions of Law, and Order Confirming First Amended Joint Chapter 11 Plan of Liquidation for the Debtors. Wells Fargo Bank, National Association, as agent for a consortium of DIP lenders, is represented by Jonathan N. Helfat, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C., in New York. The Bank of New York Mellon as indenture trustee and collateral agent for prepetition noteholders, is represented by James Gadsden, Esq., at Carter, Ledyard & Milburn LLP, in New York. Certain Noteholders are represented by Kristopher M. Hansen, Esq., at Stroock & Stroock & Lavan LLP, in New York. The U.S. appointed a three-member official committee of unsecured creditors represented by Farrell Fritz, P.C. PricewaterhouseCoopers LLP serves as the Committee's Financial advisors. This is Metro Affiliates' third trip to Chapter 11. The Company, together with its subsidiaries, previously sought protection under Chapter 11 of the Bankruptcy Code on Aug. 16, 2002 (In re Metro Affiliates, Inc., Case No. 02-42560 (PCB), Bankr. S.D.N.Y.). A plan in the second Chapter 11 case was confirmed in September 2003. The first bankruptcy was in 1994. MOUNT CLEMENS: Moody's Affirms Ba3 Rating on $36.1-Mil. GOULT Debt ------------------------------------------------------------------ Moody's Investors Service has affirmed the Ba3 rating on Mount Clemens Community School District, MI's general obligation unlimited tax (GOULT) debt. The negative outlook has been maintained. The Ba3 rating and negative outlook applies to $36.1 million of rated GOULT debt. SUMMARY RATING RATIONALE The Ba3 rating reflects the district's deficit fund position, recent operating surpluses resulting from expenditure reductions, and elevated debt burden. Also incorporated in the rating is the district's declining and modestly sized tax base with below average socioeconomic indices, and ongoing enrollment losses. OUTLOOK The negative outlook reflects the expectation that declines in enrollment will continue to pressure revenues and challenge the district's ability to sustain balanced operations, despite recent surplus operations and a budgeted surplus in fiscal 2016. While budgetary adjustments have been substantial and resulted in improving financial operations, we believe there remain challenges, particularly as the reserve position remains negative and the district continues to be heavily reliant on cash flow borrowing. WHAT COULD MAKE THE RATING GO UP Substantial and sustained growth in General Fund reserves Positive enrollment trends Strengthening of the district's tax base and/or socioeconomic profile WHAT COULD MAKE THE RATING GO DOWN Failure to eliminate deficit fund balance Further declines in enrollment and/or reductions to state aid revenues OBLIGOR PROFILE The district provides K-12 education and serves residents of the city of Mount Clemens and a small portion of Clinton Township with an enrollment of 1,100 as of fiscal 2015. LEGAL SECURITY Debt service on the bonds is secured by the district's GO tax pledge with voter authorization to levy property taxes without limitation as to rate or amount. USE OF PROCEEDS Not applicable. PRINCIPAL METHODOLOGY The principal methodology used in this rating was US Local Government General Obligation Debt published in January 2014. MURPHY OIL: Moody's Hikes Corp Family Rating to Ba1, Outlook Stable ------------------------------------------------------------------- Moody's Investors Service upgraded Murphy Oil USA, Inc.'s Corporate Family Rating to Ba1 from Ba2 and also upgraded the company's probability of default rating to Ba1-PD from Ba2-PD. Additionally, Moody's upgraded the rating of the company's $500 million senior unsecured notes to Ba2 from Ba3. The company's Speculative Grade Liquidity rating was raised to SGL-1 from SGL-2. The rating outlook is stable. "Murphy Oil USA's credit metrics are strong and we believe they will remain strong with debt/EBITDA and EBITA/interest in the next 12 to 18 months expected to be about 1.5 to 2.0 times and 6.5 to 7.0 times respectively as the company has increased profitability and reduced its debt burden", said Mickey Chadha, Senior Analyst at Moody's Investors Service. "Although we do not expect profitability in 2015 to remain at 2014's record levels as the price of oil stabilizes and fuel gross margin reverts back to more historical levels, Murphy's Oil USA's conservative balance sheet will support credit metrics remaining strong", Chadha further stated. RATINGS RATIONALE The Ba1 Corporate Family Rating reflects MUSA's strong credit metrics, its relationship with Wal-Mart which provides a growth platform and traffic of value oriented consumers, very good liquidity, meaningful scale, good market position and geographic reach, and Moody's opinion that consumer demand for motor fuel and value priced convenience items will retain some degree of stability regardless of economic conditions. Moody's expects the company's credit metrics to remain consistent with its Ba1 rating category and below the company's debt/EBITDA (as reported) target of 2.5 times even if gross margin for motor fuel declines to a more normalized historical level compared to 2014. The ratings are constrained by the company's low merchandise margins and the high sales and earnings volatility related to motor fuel sales which account for a substantial majority of the company's revenue. These ratings are upgraded: Corporate Family Rating to Ba1 from Ba2 Probability of Default Rating to Ba1-PD from Ba2-PD $500 million Senior Unsecured Notes maturing 2023 to Ba2 (LGD5) from Ba3 (LGD5) Speculative Grade Liquidity Rating to SGL-1 from SGL-2 The stable outlook reflects Moody's expectation that MUSA's liquidity will remain very good, credit metrics will remain consistent with the company's Ba1 rating category despite some deterioration if motor fuel gross margin and that the company will manage its operations and balance sheet to remain within its debt/EBITDA (as reported) target of 2.5 times. An upgrade would require very good liquidity, increased geographic and product diversification, and a sustained improvement in credit metrics driven in part by increasing higher margin merchandise revenues. An upgrade would also require a balanced growth strategy and a financial policy and capital structure that supports the credit profile required of a higher rating. Additionally an upgrade would require debt/EBITDA sustained below 2.5 times and EBITA/interest sustained near 5.5 times. Deterioration in operating performance resulting in weakening of liquidity or credit metrics could result in a downgrade. A growth strategy that negatively impacts liquidity or metrics could also pressure ratings. Specifically ratings could be downgraded if debt/EBITDA is sustained above 3.5 times and EBITA/interest is sustained below 4.0 times. The principal methodology used in these rating was the Global Retail Industry published in June 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. MUSA primarily sells retail motor fuel products and convenience merchandise through 1,268 retail stations almost all of which are in close proximity to Wal-Mart stores. The company's retail stations are located in 23 states, primarily in the Southern and Midwestern United States. Revenues were about $17 billion for the fiscal year 2014. NEWPAGE CORP: Bank Debt Trades at 18% Off ----------------------------------------- Participations in a syndicated loan under which NewPage Corp is a borrower traded in the secondary market at 82.45 cents-on-the-dollar during the week ended Friday, June 26, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the June 30, 2015, edition of The Wall Street Journal. This represents a decrease of 0.42 percentage points from the previous week, The Journal relates. NewPage Corp pays 825 basis points above LIBOR to borrow under the facility. The bank loan matures on Jan. 31, 2021, and carries Moody's B2 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 260 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. NGPL PIPECO: Debt Trades at 4% Off ---------------------------------- Participations in a syndicated loan under which NGPL Pipeco LLC is a borrower traded in the secondary market at 95.75 cents-on-the- dollar during the week ended Thursday, June 26, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the June 30, 2015, edition of The Wall Street Journal. This represents a decrease of 0.56 percentage points from the previous week, The Journal relates. NGPL Pipeco LLC pays 550 basis points above LIBOR to borrow under the facility. The bank loan matures on May 4, 2017, and carries Moody's Caa2 rating and Standard & Poor's CCC+ rating. The loan is one of the biggest gainers and losers among 260 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. NISKA GAS: S&P Revises Outlook to Developing & Affirms 'B-' CCR --------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its outlook on Niska Gas Storage Partners LLC to developing from negative. At the same time, Standard & Poor's affirmed its 'B-' long-term corporate credit rating and its 'CCC+' issue-level rating and revised the recovery rating to '5H' from '5' on the company's senior unsecured debt. "The outlook revision reflects a combination of Brookfield Infrastructure's recently announced acquisition of Niska -– expected to close in 2016; and our expectation that, if the transaction does not close and Niska loses access to a US$50 million committed credit facility provided by Brookfield we could revise our assessment of liquidity to "weak," said Standard & Poor's credit analyst Gerry Hannochko. On its own, Niska's credit metrics and business fundamentals are expected to be weak because of poor seasonal spreads over the next 12-18 months. The ratings on Niska reflect Standard & Poor's assessment of the company's leveraged balance sheet, exposure to contract renewal risk and market pricing risk, and the potential large working capital and liquidity requirements of its optimization program. There is no change to S&P's assessment of Niska's "weak" business risk profile or "highly leveraged" financial risk profile. The developing outlook reflects Standard & Poor's expectation that the announced acquisition by Brookfield could improve credit quality in the next 12-18 months. Conversely, if the transaction is not completed, the current weak business fundamentals could drive the rating into the 'CCC' category, and S&P could revise its assessment of liquidity to weak. S&P could lower the ratings if the transaction does not close and business fundamentals do not improve. Additionally, S&P could lower the ratings if it revises its assessment of Niska's liquidity to weak. S&P believes an upgrade during the outlook horizon would require the acquisition to be completed, and either a demonstrable improvement in the business fundamentals from improved seasonal spreads, or significantly reduced leverage. NORTEL NETWORKS: Jacqueline M. Moessner Withdrawn as Counsel ------------------------------------------------------------ Nortel Networks Inc., et al., notified the U.S. Bankruptcy Court for the District of Delaware that Jacqueline M. Moessner at Cleary Gottlieb Steen & Hamilton LLP was withdrawn as counsel for the Debtors. The Debtors continue to be represented by the law firms of Cleary Gottlieb Steen & Hamilton LLP and Morris, Nichols, Arsht & Tunnell LLP. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation and its affiliated entities provided technologies support multimedia and business-critical applications. Networks Limited was the principal direct operating subsidiary of Nortel Networks Corporation. Nortel Networks Corporation, and certain of their Canadian affiliates commenced a proceeding with the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act (Canada) seeking relief from their creditors. Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The monitor also sought recognition of the CCAA Proceedings in U.S. Bankruptcy Court (Bankr. D. Del. Case No. 09-10164) under Chapter 15 of the U.S. Bankruptcy Code. NNI and certain of its affiliated U.S. entities filed Chapter 11 protection (Bankr. D. Del. Case No. 09-10138). In addition, the High Court of England and Wales placed 19 of NNI's European affiliates into administration under the control of individuals from Ernst & Young LLP. Other Nortel affiliates have commenced and in the future may commence additional creditor protection, insolvency and dissolution proceedings around the world. On May 28, 2009, at the request of administrators, the Commercial Court of Versailles, France, ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in U.S. Bankruptcy Court for recognition of the English Proceedings as foreign main proceedings under Chapter 15. U.S. Bankruptcy Judge Kevin Gross presides over the Chapter 11 and 15 cases. Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as Chapter 15 petitioner's counsel. In the Chapter 11 case, James L. Bromley, Esq., and Howard S. Zelbo, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serve as the U.S. Debtors' general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. The U.S. Trustee appointed an Official Committee of Unsecured Creditors in respect of the U.S. Debtors. An ad hoc group of bondholders also was organized. An Official Committee of Retired Employees and the Official Committee of Long-Term Disability Participants tapped Alvarez & Marsal Healthcare Industry Group as financial advisor. The Retiree Committee is represented by McCarter & English LLP as Delaware counsel, and Togut Segal & Segal serves as the Retiree Committee. The Committee retained Alvarez & Marsal Healthcare Industry Group as financial advisor, and Kurtzman Carson Consultants LLC as its communications agent. Several entities, particularly, Nortel Government Solutions Incorporated and Nortel Networks (CALA) Inc., have material operations and are not part of the bankruptcy proceedings. As of Sept. 30, 2008, Nortel Networks Corp. reported consolidated assets of $11.6 billion and consolidated liabilities of $11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of Sept. 30, 2008, NNI had assets of about $9 billion and liabilities of $3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about $4.2 billion of unsecured public debt. Since the commencement of the various insolvency proceedings, Nortel has sold its business units and other assets to various purchasers. Nortel has collected roughly $9 billion for distribution to creditors. Of the total, $4.5 billion came from the sale of Nortel's patent portfolio to Rockstar Bidco, a consortium consisting of Apple Inc., EMC Corporation, Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In Motion Limited, and Sony Corporation. The consortium defeated a $900 million stalking horse bid by Google Inc. at an auction. The deal closed in July 2011. Nortel has filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. The trial on how to divide proceeds among creditors in the U.S., Canada, and Europe commenced on Sept. 22, 2014. The question of how to divide $7.3 billion raised in the international bankruptcy of Nortel Networks Corp. was answered on May 12, 2015, by two judges, one in the U.S. and one in Canada. According to The Wall Street Journal, Justice Frank Newbould of the Ontario Superior Court of Justice in Toronto and Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Del., agreed on the outcome: a modified pro rata split of the money. PATRIOT COAL: Won't Disclose Insider Pay Leading Up to 2nd Ch. 11 ----------------------------------------------------------------- Peg Brickley, writing for The Wall Street Journal, reported that Patriot Coal Corp. won't disclose what it paid top officers and directors as it slid back into bankruptcy 18 months after emerging from a Chapter 11 case that it said would get it back on its feet. According to the Journal, papers the company filed on June 26 in bankruptcy court have details about the West Virginia coal miner's environmental troubles, the lawsuits it faces and other basics of its business. But as for what it paid officers and directors, Patriot said only that they received "standard and customary compensation." The company, the Journal said, didn't respond to questions about why the insider-pay data are missing from its answers on standard bankruptcy questionnaires. About Patriot Coal Patriot Coal Corporation is a producer and marketer of coal in the United States. Patriot and its subsidiaries control 1.4 billion tons of proven and probable coal reserves -- including owned and leased assets in the Central Appalachia basin (in West Virginia and Ohio) and Southern Illinois basin (in Kentucky and Illinois) and their operations consist of eight active mining complexes in West Virginia. Patriot Coal first sought Chapter 11 protection on July 9, 2012, and, on Dec. 18, 2013, won approval of its bankruptcy-exit plan from the U.S. Bankruptcy Court for the Eastern District of Missouri. The plan turned over most of the ownership of the company to bondholders that include New York hedge fund Knighthead Capital Management LLC. The linchpins of the plan were a global settlement among the Debtors, the United Mine Workers of America, and two third parties -- Peabody Energy Corporation and Arch Coal, Inc. -- and a commitment by a consortium of creditors, led by Knighthead, to backstop two rights offerings that funded the plan. Patriot Coal Corporation and its subsidiaries commenced new Chapter 11 cases (Bankr. E.D. Va. Lead Case No. 15-32450) in Richmond, Virginia, on May 12, 2015. The cases are assigned to Judge Keith L. Phillips. The Debtors tapped Kirkland & Ellis LLP as counsel; Kutak Rock L.L.P., as co-counsel; Centerview Partners LLC as investment bankers; Alvarez & Marsal North America, LLC, as restructuring advisors; and Prime Clerk LLC, as claims and administrative agent. The U.S. trustee overseeing the Chapter 11 case of Patriot Coal Corp. appointed seven creditors of the company to serve on the official committee of unsecured creditors. Patriot Coal estimated more than $1 billion in assets and debt. * * * Patriot Coal Corporation, a producer and marketer of coal in the eastern United States, on June 3 disclosed that it has filed with the Bankruptcy Court a letter of intent for a proposed sale of a substantial majority of its operating assets to Blackhawk Mining, LLC, as well as a motion outlining bidding procedures. The contemplated transaction would be consummated pursuant to a chapter 11 plan and is subject to documentation of a definitive asset purchase agreement, bankruptcy court approval of the sale, confirmation of a chapter 11 plan, and other customary conditions. Patriot's mining operations and customer shipments will continue in the ordinary course during the sale process. Under the terms of the letter of intent, Blackhawk would issue to Patriot's secured lenders new debt securities totaling approximately $643 million plus Class B Units providing them an ownership stake in Blackhawk. In addition, Blackhawk would assume or replace surety bonds supporting reclamation and related liabilities associated with the purchased assets. PEABODY ENERGY: Debt Trades at 15% Off -------------------------------------- Participations in a syndicated loan under which Peabody Energy Power Corp is a borrower traded in the secondary market at 84.68 cents-on-the- dollar during the week ended Friday, June 26, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the June 30, 2015 edition of The Wall Street Journal. This represents an increase of 1.85 percentage points from the previous week, The Journal relates. Peabody Energy Power Corp pays 325 basis points above LIBOR to borrow under the facility. The bank loan matures on September 20, 2020, and carries Moody's Ba3 rating and Standard & Poor's BB+ rating. The loan is one of the biggest gainers and losers among 260 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. PORTER BANCORP: Adopts Tax Benefits Preservation Plan ----------------------------------------------------- Porter Bancorp, Inc. announced that its board of directors adopted a tax benefits preservation plan designed to preserve the value of certain of the Company's deferred tax assets primarily associated with net operating loss carryforwards under Section 382 of the Internal Revenue Code. NOLs can generally be used to offset future taxable income and therefore reduce federal income tax obligations. However, the Company's ability to use its NOLs would be limited if there was an "ownership change" under Section 382. This would occur if shareholders owning (or deemed to own under the tax rules) 5% or more of the Company's stock increase their aggregate ownership of outstanding shares of the Company's common stock by more than 50 percentage points over a defined period of time. The plan is intended to reduce the likelihood of an "ownership change" occurring as a result of the buying and selling of the Company's common stock. "The primary purpose of the tax preservation plan is to protect the value of our NOLs for our shareholders," stated John Taylor, president and CEO of Porter Bancorp. "While our deferred tax asset is subject to a full valuation allowance, it remains very important to the Company." In connection with the plan, the Company has declared a dividend of one preferred stock purchase right for each share of common stock outstanding as of the close of business on July 10, 2015. Effective June 26, 2015, any shareholder or group that acquires beneficial ownership of 5 percent or more of the Company's outstanding stock (an "acquiring person") could be subject to significant dilution in its holdings if the Company's board of directors does not approve such acquisition. Existing shareholders holding 5 percent or more of the Company's common stock will not be considered acquiring persons unless they acquire additional shares, subject to certain exceptions described in the plan. In addition, in its discretion, the board of directors may exempt certain transactions and certain persons whose acquisition of securities is determined by the board not to jeopardize the Company's deferred tax assets. The rights will expire upon the earlier of (i) June 29, 2018, (ii) the beginning of a taxable year with respect to which the board of directors determines that no tax benefits may be carried forward, (iii) the repeal or amendment of Section 382 or any successor statute, if the board of directors determines that the plan is no longer needed to preserve the tax benefits, (iv) the effective date of an amendment to the Company's articles of incorporation to preserve the Company's tax benefits that has been approved by the Company's shareholders entitled to vote on such amendment, and (v) certain other events as described in the plan. A copy of the Tax Benefits Preservation Plan is available at: http://is.gd/iy26sB About Porter Bancorp Porter Bancorp, Inc., is a bank holding company headquartered in Louisville, Kentucky. Through its wholly-owned subsidiary PBI Bank, the Company operates 18 full-service banking offices in 12 counties in Kentucky. Porter Bancorp reported a net loss of $11.2 million in 2014, a net loss of $1.58 million in 2013 and a net loss of $32.93 million in 2012. As of March 31, 2015, Porter Bancorp had $1 billion in total assets, $975.73 million in total liabilities and $33.97 million in total stockholders' equity. Crowe Horwath, LLP, in Louisville, Kentucky, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred substantial losses in 2014, 2013 and 2012, largely as a result of asset impairments resulting from the re-evaluation of fair value and ongoing operating expenses related to the high volume of other real estate owned and non-performing loans. In addition, the Company's bank subsidiary is not in compliance with a regulatory enforcement order issued by its primary federal regulator requiring, among other things, increased minimum regulatory capital ratios as well as being involved in various legal proceedings in which the Company disputes material factual allegations against the Company. Additional losses, adverse outcomes from legal proceedings or the continued inability to comply with the regulatory enforcement order may result in additional adverse regulatory action. These events raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. PREMIER PAIN: Case Summary & 21 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Premier Pain Solutions LLC 2813 E Camelback Rd, Ste 430 Phoenix, AZ 85016-4337 Case No.: 15-08181 Nature of Business: Health Care Chapter 11 Petition Date: June 30, 2015 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Hon. Eddward P. Ballinger Jr. Debtor's Counsel: Richard A Drake, Esq. DRAKE LAW FIRM PLC 14500 N Northsight Boulevard, Suite 208 Scottsdale, AZ 85260 Tel: 602-687-8800 Fax: 602-387-8979 Email: rdrake@bdlawyers.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Sky Moore, member. A list of the Debtor's 21 largest unsecured creditors is available for free at http://bankrupt.com/misc/azb15-08181.pdf PREMIER PROPERTY: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Premier Property Advisors, LLC 30800 Northwestern Highway, Ste. 223 Farmington Hills, MI 48334 Case No.: 15-49995 Chapter 11 Petition Date: July 1, 2015 Court: United States Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Hon. Phillip J Shefferly Debtor's Counsel: Robert N. Bassel, Esq. P.O. Box T Clinton, MI 49236 Tel: (248) 677-1234 Fax: (248) 369-4749 Email: bbassel@gmail.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Steven Gittleman, member. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. PVH CORP: S&P Affirms 'BB+' Corp Credit Rating, Outlook Stable -------------------------------------------------------------- Standards & Poor's Ratings Services affirmed its 'BB+' corporate credit rating on New York City-based PVH Corp. The outlook is stable. At the same time, S&P raised its issue-level ratings on the company's first-lien credit facilities (consisting of a $750 million revolving credit facility due 2019, a $1.9 billion first-lien term loan due 2019, $833 million term loan B due 2020, and the $100 million first-line notes due 2021) to 'BBB' from 'BBB-', and revised the recovery ratings '1', indicating S&P's expectations of very high (90% to 100%) recovery in the event of a payment default, from '2'. Concurrently, S&P raised its issue-level rating on the company's $600 million unsecured notes due in 2022 to 'BB+' from 'BB', and revised the recovery ratings to '3', indicating S&P's expectation of meaningful recovery (50%-70%, at the higher end of the range) from '5'. "The ratings affirmation reflects PVH's good market position, portfolio of well-recognized brands, geographic diversification, good profitability, moderate leverage, and history of paying down debt after building it up for an acquisition," said Standard & Poor's credit analyst Peter Deluca. "We have also factored into our rating assessment the company's participation in the highly competitive apparel sector, which is vulnerable to fashion risk, and still-slow growth in consumer spending." The outlook on PVH Corp. is stable. Standard & Poor's expects PVH's operating performance, supported by its good market positions and diversified operating platform, to remain relatively stable. In addition, S&P expects PVH to modestly reduce leverage through a combination of debt repayment and EBITDA growth. Given its acquisition history, there is the possibility of a leveraged transaction. Although unlikely over the next year, S&P could raise the ratings if it believes the company will sustain leverage below 3x. Alternatively, S&P could lower the rating if it believes the company will sustain adjusted leverage above 4x. QUINTO & WILKS: Involuntary Chapter 7 Petition Dismissed -------------------------------------------------------- Bankruptcy Judge Brian F. Kenney dismissed the involuntary petition seeking to place Quinto & Wilks, P.C., under Chapter 7 bankruptcy petition. On October 22, 2014, an Involuntary Petition (Bankr. E.D. Va. Case No. 14-13937-BFK) under Chapter 7 of the Bankruptcy Code was filed against Quinto & Wilks, P.C. by its former employee, Jenine E. Graves. The Involuntary Petition was filed by Graves as a single creditor petition. At the time of the petition, Ms. Graves and Quinto & Wilks were engaged in highly acrimonious litigationin the Circuit of Prince William County. Quinto & Wilks filed a Motion to Dismiss, arguing that: (1) Ms. Graves is not an eligible petitioning creditor, because her claim is the subject of a bona fide dispute as to liability and amount; (2) Ms. Graves filed the Involuntary Petition in bad faith; and (3) Ms. Graves has failed in sustaining her burden of proof to show that Quinto & Wilks was not paying its debts as they became due. Although Judge Kenney did not find that Ms. Graves filed the petition in bad faith, he agreed with Quintos & Wilks that Ms. Graves' claim is the subject of a bona fide dispute as to liability and amount, and that Ms. Graves has not met her burden to show that Quintos and Wilks was not paying its debts as they became due. A copy of the May 29, 2015 ruling is available at http://is.gd/7Bo5M9from Leagle.com. Kevin M. O'Donnell, Esquire -- kmo@henrylaw.com -- Henry & O'Donnell, P.C., Alexandria, VA, Counsel for Chapter 7 Debtor. Timothy Wayne Graves, Esquire, A Attorney LLC, Manassas, VA, Counsel for Petitioning Creditor. RECOVERY CENTERS: Taps Paul Bailey to Continue Accounting Services ------------------------------------------------------------------ Recovery Centers of King County asks the U.S. Bankruptcy Court for the Western District of Washington for permission to employ Paul Bailey and Clifton Allen Larson, LLP, as certified pubic accountant. The Debtor requires the services of an accountant to assist with the winding up of its business. Given Mr. Bailey's familiarity with the Debtor's financial situation, it proposes to continue with his employment as accountant going forward. About Recovery Centers Recovery Centers of King County -- http://www.rckc.org/-- provided Central Seattle and South King County residents with a continuum of care for those who suffer with alcoholism or other drug addiction. RCKC filed a Chapter 11 case (Bankr. W.D. Wash. Case No. 15-13060) on May 15, 2015. Judge Timothy W. Dore presides over the case. The Debtor tapped Jeffrey B Wells, Esq., at Wells and Jarvis, P.S., in Seattle, as counsel. The Debtor's Chapter 11 plan contemplates the sale of its real estate located at 464 - 12th Ave S, Seattle, Washington, 1701 18th Ave. S, Seattle, WA and 505 Washington Ave. S., Kent, Washington. The Debtor will sell real property located at 464 12th Avenue, in Seattle, Washington, to Low Income Housing Institute for $4.1 million. Bank of America, N.A., is the Debtor's secured lender. The U.S. Trustee for Region 18 appointed five creditors to serve in the Official Unsecured Creditors Committee. The Committee is represented by Nagler Law Group, P.S. RECOVERY CENTERS: U.S. Trustee Forms Five-Member Creditors Panel ---------------------------------------------------------------- Gail Brehm Geiger, Acting U.S. Trustee for Region 18, appointed five creditors to serve in the Official Unsecured Creditors Committee in the Chapter 11 case of Recovery Centers of King County: 1. Karis C. Bjerke 2. Jazmin Carter‐Allen 3. Evergreen Recovery Centers Attn: Linda Grant, CEO P.O. Box 12598 Everett, WA 98206 Tel: (425) 258‐2407 (425) 339‐2601 E-mail: lgrant@evergreenmanor.org 4. ONCALL 24/7 – Allegiant Business Finance Attn: Alexander Borromeo, Administrator 6106 NE 182nd Street Kenmore, WA 98028 Tel: (206) 300‐1247 Fax: (206) 512‐3093 E-mail: alex@sambara.com 5. Pioneer Human Services Attn: Vicki Rush, Contracts Administrator 7440 W. Marginal Way South Seattle, WA 98108 Tel: (206) 766‐7006 Fax: (206) 768‐8910 E-mail: vicki.rush@p‐h‐s.com` About Recovery Centers Recovery Centers of King County -- http://www.rckc.org/-- provided Central Seattle and South King County residents with a continuum of care for those who suffer with alcoholism or other drug addiction. RCKC filed a Chapter 11 case (Bankr. W.D. Wash. Case No. 15-13060) on May 15, 2015. Judge Timothy W. Dore presides over the case. The Debtor tapped Jeffrey B Wells, Esq., at Wells and Jarvis, P.S., in Seattle, as counsel. The Debtor's Chapter 11 plan contemplates the sale of its real estate located at 464 - 12th Ave S, Seattle, Washington, 1701 18th Ave. S, Seattle, WA and 505 Washington Ave. S., Kent, Washington. The Debtor will sell real property located at 464 12th Avenue, in Seattle, Washington, to Low Income Housing Institute for $4.1 million. Bank of America, N.A., is the Debtor's secured lender. The U.S. Trustee for Region 18 appointed five creditors to serve in the Official Unsecured Creditors Committee. The Committee is represented by Nagler Law Group, P.S. RESIDENTIAL CAPITAL: Objection to Subpoena Program Overruled ------------------------------------------------------------ District Judge Susan Richard Nelson overruled the defendants' objection to the plaintiffs' Employer Subpoena Program in the case captioned In Re: RFC and RESCAP Liquidating Trust Actions, CIVIL FILE NO. 13-3451 (SRN/JJK/HB) (D. Minn.). Defendants opposed the plaintiffs' proposal to issue a series of subpoenas to the third-party employers of borrowers of stated income loans. The proposed subpoenas request documents relating to the borrowers' employment and income for an 18-month period around the time of the origination of the borrowers' loans. Defendants argued that the discovery was irrelevant and that the requested information is harassing, unduly burdensome, and could potentially harm the borrowers. Also, if the proposed subpoenas are allowed, Defendants also request additional time in which to rebut the plaintiffs' breach allegations for any stated income loan that is subject to the subpoenas. Judge Nelson found that the proposed discovery, particularly as it relates to representations and warranties, falls under the broad definition of relevance as contemplated by Federal Rule of Civil Procedure 26(b). Judge Nelson also found the defendants' arguments contending that the subpoenas will be harassing, unduly burdensome, and potentially harmful are conclusory and speculative, and are not sufficiently particularized to establish good cause. Finally, Judge Nelson also denied the defendants' request for a modification to the Scheduling Order. A copy of the May 27, 2015 order is available at http://is.gd/gL0RrVfrom Leagle.com. Residential Funding Company, LLC, Plaintiff, represented by Anthony Alden -- anthonyalden@quinnemanuel.com -- Quinn Emanuel Urquhart & Sullivan, David Elsberg -- davidelsberg@quinnemanuel.com -- Quinn Emanuel Urquhart & Sullivan LLP, David L Hashmall, Felhaber Larson, Donald G Heeman, Felhaber Larson, Edward P Sheu -- esheu@bestlaw.com -- Best & Flanagan LLP, Gabriel F Soledad -- gabrielsoledad@quinnemanuel.com -- Quinn Emanuel Urquhart & Sullivan, Isaac Nesser -- isaacnesser@quinnemanuel.com -- Quinn Emanuel Urquhart & Sullivan, Jeffrey A Lipps -- lipps@carpenterlipps.com -- Carpenter Lipps & Leland LLP, Jennifer A L Battle -- battle@carpenterlipps.com -- Carpenter Lipps & Leland LLP, Johanna Ong -- johannaong@quinnemanuel.com -- Quinn Emanuel Urquhart & Sullivan, LLP, Marnie E Fearon, Felhaber Larson, Matthew R Scheck -- matthewscheck@quinnemanuel.com -- Quinn Emanuel Urquhart & Sullivan, Peter E. Calamari -- petercalamari@quinnemanuel.com -- Quinn Emanuel Urquhart & Sullivan LLP, Richard R Voelbel, Felhaber Larson, Ryan A Olson, Felhaber Larson, Thomas G Garry -- tgarry@bestlaw.com -- Best & Flanagan LLP, Bradley T Smith, Felhaber Larson, Jessica J Nelson, Felhaber Larson & Daniel R Kelly, Felhaber Larson. ResCap Liquidating Trust, Plaintiff, represented by Anthony Alden, Quinn Emanuel Urquhart & Sullivan,Bradley T Smith, Felhaber Larson, David Elsberg, Quinn Emanuel Urquhart & Sullivan LLP, David L Hashmall, Felhaber Larson, Donald G Heeman, Felhaber Larson, Gabriel F Soledad, Quinn Emanuel Urquhart & Sullivan, Isaac Nesser, Quinn Emanuel Urquhart & Sullivan, Jeffrey A Lipps, Carpenter Lipps & Leland LLP, Jennifer A L Battle, Carpenter Lipps & Leland LLP, Johanna Ong, Quinn Emanuel Urquhart & Sullivan, LLP, Marnie E Fearon, Felhaber Larson, Matthew R Scheck, Quinn Emanuel Urquhart & Sullivan,Peter E. Calamari, Quinn Emanuel Urquhart & Sullivan LLP, Richard R Voelbel, Felhaber Larson, Ryan A Olson, Felhaber Larson, Jessica J Nelson, Felhaber Larson & Daniel R Kelly, Felhaber Larson. Academy Mortgage Corporation, Defendant, represented by David M Souders -- souders@thewbkfirm.com -- Weiner Brodsky Kider PC, Tessa K Somers -- somers@thewbkfirm.com -- Weiner Brodsky Kider PC, Daniel J Supalla, Briggs & Morgan, PA & James L Forman -- jforman@obermanthompson.com -- Oberman Thompson, LLC. Mortgage Outlet, Inc., The, Defendant, represented by Eldon J Spencer, Jr -- espencer@losgs.com -- Leonard, O'Brien, Spencer, Gale & Sayre, Ltd, Stacey L Drentlaw -- sdrentlaw@losgs.com -- Leonard, O'Brien, Spencer, Gale & Sayre, Ltd & Daniel J Supalla, Briggs & Morgan, PA. Ark-La-Tex Financial Services, LLC, Defendant, represented by Mark J Carpenter -- mark@carpenter-law-firm.com -- Carpenter Law Firm PLLC & Daniel J Supalla, Briggs & Morgan, PA. Cherry Creek Mortgage Co., Inc., and Fremont Bank, Defendants, represented by Eldon J Spencer, Jr, Leonard, O'Brien, Spencer, Gale & Sayre, Ltd, James M Jorissen -- jjorissen@losgs.com -- Leonard, O'Brien, Spencer, Gale & Sayre, Ltd, Stacey L Drentlaw, Leonard, O'Brien, Spencer, Gale & Sayre, Ltd & Daniel J Supalla, Briggs & Morgan, PA. Guaranty Bank, Defendant, represented by Gregory A Bromen -- gbromen@nilanjohnson.com -- Nilan Johnson Lewis PA, Matthew S. Vignali -- mvignali@bcblaw.net -- Beck Chaet Bamberger & Polksy SC, Steven W Jelenchick -- sjelenchick@bcblaw.net -- Beck Chaet Bamberger & Polsky SC & Daniel J Supalla, Briggs & Morgan, PA. First California Mortgage Company, Americash, Broadview Mortgage Corp., Central Pacific Homeloans, Inc., Central Pacific Bank, Central Pacific Financial Corp., Mortgage Network, Inc., doing business as MNET Mortgage Corporation, Mortgage Access Corp., doing business as Weichert Financial Services, Wallick & Volk, Inc., and Gateway Bank, F.S.B., Defendants, represented by Andrew Steinfeld -- asteinfeld@americanmlg.com -- American Morgage Law Group, P.C., Carol R M Moss -- cmoss@hjlawfirm.com -- Hellmuth & Johnson PLLC, Edward Page Allinson -- eallinson@americanmlg.com -- American Mortgage Law Group, P.C., Evans D Prieston, American Mortgage Law Group, P.C., J Robert Keena -- jkeena@hjlawfirm.com -- Hellmuth & Johnson PLLC, Jack V Valinoti -- jvalinoti@americanmlg.com -- American Mortgage Law Group, P.C., James W. Brody -- jbrody@americanmlg.com -- American Mortgage Law Group & Daniel J Supalla, Briggs & Morgan, PA. Golden Empire Mortgage, Inc., Defendant, represented by Erin Sindberg Porter -- esindbergporter@greeneespel.com -- Greene Espel PLLP, Janine Wetzel Kimble -- jkimble@greeneespel.com -- Greene Espel PLLP, Jenny Gassman-Pines -- jgassman-pines@greeneespel.com -- Greene Espel PLLP, Philip R. Stein - pstein@bilzin.com -- Bilzin Sumberg Baena Price & Axelrod LLP, Shalia M Sakona -- ssakona@bilzin.com -- Bilzin Sumberg Baena Price & Axelrod LLP & Daniel J Supalla -- dsupalla@briggs.com -- Briggs & Morgan, PA. Community West Bank, N.A., Defendant, represented by Christina Rieck Loukas -- cloukas@winthrop.com -- Winthrop & Weinstine, PA, Christopher A Camardello - ccamardello@winthrop.com -- Winthrop & Weinstine, PA, Jeffrey R Ansel -- jansel@winthrop.com -- Winthrop & Weinstine, PA, Michael A Rosow -- mrosow@winthrop.com -- Winthrop & Weinstine, PA & Daniel J Supalla, Briggs & Morgan, PA. First Equity Mortgage Bankers, Inc., Mortgage Capital Associates, Inc., and E Trade Bank, as successor to United Medical Bank, FSB, Defendants, represented by Amelia R Selvig -- aselvig@anthonyostlund.com -- Anthony Ostlund Baer & Louwagie PA, Brooke D Anthony - banthony@anthonyostlund.com -- Anthony Ostlund Baer & Louwagie PA, Joseph W Anthony -- janthony@anthonyostlund.com -- Anthony Ostlund Baer & Louwagie PA, Philip R. Stein, Bilzin Sumberg Baena Price & Axelrod LLP, Shalia M Sakona, Bilzin Sumberg Baena Price & Axelrod LLP & Daniel J Supalla, Briggs & Morgan, PA. Colonial Savings, F.A., Defendant, represented by Daniel N Moak -- dmoak@briggs.com -- Briggs & Morgan, PA, Daniel J Supalla, Briggs & Morgan, PA & Mark G Schroeder, Briggs & Morgan, PA. First Guaranty Mortgage Corporation, Defendant, represented by Kevin J Dunlevy -- kevind@bdmnlaw.com -- Beisel & Dunlevy, PA, Michael E Kreun -- michaelk@bdmnlaw.com -- Beisel & Dunlevy, PA & Daniel J Supalla, Briggs & Morgan, PA. Provident Funding Associates, L.P., Defendant, represented by Daniel N Moak, Briggs & Morgan, PA, Daniel J Supalla, Briggs & Morgan, PA, Mark G Schroeder -- mschroeder@briggs.com -- Briggs & Morgan, PA & Neil R O'Hanlon -- neil.ohanlon@hoganlovells.com -- Hogan Lovells US LLP. First Mortgage Corporation, Defendant, represented by Gene A Hoff, Minenko & Hoff, Michael J Minenko, Minenko & Hoff, P.A. & Daniel J Supalla, Briggs & Morgan, PA. Lenox Financial Mortgage Corp., Defendant, represented by Gina L Albertson, Albertson Law, Michael D O'Neill, Martin & Squires, P.A. & Daniel J Supalla, Briggs & Morgan, PA. Lake Forest Bank & Trust Company, Defendant, represented by Amelia R Selvig, Anthony Ostlund Baer & Louwagie PA, Amy Y Cho, Shook, Hardy & Bacon LLP, Brooke D Anthony, Anthony Ostlund Baer & Louwagie PA, Michael P Conway, Shook, Hardy & Bacon LLP & Daniel J Supalla, Briggs & Morgan, PA. PNC Bank, N.A., as successor in interest to National City Mortgage Co., NCMC Newco, Inc. and North Central Financial Corporation, Defendant, represented by Adam M Gogolak, Wachtell, Lipton, Rosen & Katz, Amanda Raines Lawrence, BuckleySandler LLP, Brett J Natarelli, BuckleySandler LLP, Daniel J Supalla, Briggs & Morgan, PA, David A Schooler, Briggs & Morgan, PA, Elaine P Golin, Wachtell, Lipton, Rosen & Katz, Fredrick S Levin, BuckleySandler LLP, Jonathan M Moses, Wachtell, Lipton, Rosen & Katz, Justin V Rodriguez, Wachtell, Lipton, Rosen & Katz, Mark G Schroeder, Briggs & Morgan, PA,Michael A. Rome, BuckleySandler LLP & Richard E Gottlieb, BuckleySandler LLP. Cornerstone Home Lending, Inc., formerly known as Cornerstone Mortgage Company, and Stearns Lending, LLC, formerly known as First Pacific Financial, Inc., Defendants, represented by Alan H Maclin, Briggs & Morgan, PA, Daniel J Supalla, Briggs & Morgan, PA & Mark G Schroeder, Briggs & Morgan, PA. Impac Funding Corporation, Defendant, represented by Erin Sindberg Porter, Greene Espel PLLP, Jenny Gassman-Pines, Greene Espel PLLP, Katherine M. Swenson, Greene Espel PLLP, Daniel J Supalla, Briggs & Morgan, PA & Janine Wetzel Kimble, Greene Espel PLLP. Plaza Home Mortgage, Inc., Defendant, represented by Amelia R Selvig, Anthony Ostlund Baer & Louwagie PA, Brooke D Anthony, Anthony Ostlund Baer & Louwagie PA, Joseph W Anthony, Anthony Ostlund Baer & Louwagie PA & Daniel J Supalla, Briggs & Morgan, PA. Hometown Mortgage Services, Inc., Defendant, represented by Andrew Steinfeld, American Morgage Law Group, P.C., Carol R M Moss, Hellmuth & Johnson PLLC, Edward Page Allinson, American Mortgage Law Group, P.C., Evans D Prieston, American Mortgage Law Group, P.C., J Robert Keena, Hellmuth & Johnson PLLC, Jack V Valinoti, American Mortgage Law Group, P.C., James W. Brody, American Mortgage Law Group, Brooke D Anthony, Anthony Ostlund Baer & Louwagie PA & Daniel J Supalla, Briggs & Morgan, PA. Sierra Pacific Mortgage Company, Inc., Defendant, represented by Amy L Schwartz, Lapp Libra Thomson Stoebner & Pusch, Chartered, Jonathan M Jenkins, JENKINS KAYAYAN LLP, Lara Kayayan, Jenkins LLP, Navdeep Singh, Jenkins Kayayan LLP, Richard T Thomson, Lapp Libra Thomson Stoebner & Pusch, Chartered & Daniel J Supalla, Briggs & Morgan, PA. Branch Banking & Trust Co., Defendant, represented by Jason D Evans, McGuire Woods LLP, Kelly G Laudon, Lindquist & Vennum PLLP, Mark A Jacobson, Lindquist & Vennum PLLP, T Richmond McPherson, III, McGuire Woods LLP, William C Mayberry, Mcguire Woods LLP & Daniel J Supalla, Briggs & Morgan, PA. T.J. Financial, Inc., Defendant, represented by Erin Sindberg Porter, Greene Espel PLLP, Janine Wetzel Kimble, Greene Espel PLLP, Jenny Gassman-Pines, Greene Espel PLLP, Philip R. Stein, Bilzin Sumberg Baena Price & Axelrod LLP, Shalia M Sakona, Bilzin Sumberg Baena Price & Axelrod LLP & Daniel J Supalla, Briggs & Morgan, PA. Terrace Mortgage Company, Defendant, represented by Aaron P M Tady, Coles Barton LLP, C J Schoenwetter, Bowman & Brooke LLP, John D Sear, Bowman & Brooke LLP, Thomas M Barton, Coles Barton LLP, Daniel J Supalla, Briggs & Morgan, PA & Rachelle A Velgersdyk, Bowman & Brooke LLP. Universal American Mortgage Company, LLC, and Standard Pacific Mortgage, Inc., Defendants, represented by Enza G Boderone, Bilzin Sumberg Baena Price & Axelrod LLP, Erin Sindberg Porter, Greene Espel PLLP, Janine Wetzel Kimble, Greene Espel PLLP, Jenny Gassman-Pines, Greene Espel PLLP, Philip R. Stein, Bilzin Sumberg Baena Price & Axelrod LLP, Shalia M Sakona, Bilzin Sumberg Baena Price & Axelrod LLP & Daniel J Supalla, Briggs & Morgan, PA. Wells Fargo Bank, N.A., formerly known as Wachovia Mortgage Corporation formerly known as First Union National Bank formerly known as First Union Mortgage Corporation, Defendant, represented by Amy L Schwartz, Lapp Libra Thomson Stoebner & Pusch, Chartered, Eric P Tuttle, Munger, Tolles & Olson LLP,Gregory D Phillips, Munger, Tolles & Olson, LLP, Marc T G Dworsky, Munger, Tolles & Olson, LLP,Michael E Soloff, Munger, Tolles & Olson LLP, Richard C St John, Munger Tolles & Olson, Richard T Thomson, Lapp Libra Thomson Stoebner & Pusch, Chartered, Thomas Jacob, Wells Fargo Law Department, Todd J Rosen, Munger Tolles & Olson LLP & Daniel J Supalla, Briggs & Morgan, PA. BMO Harris Bank, N.A., doing business as M&I Bank, FSB, Defendant, represented by Amanda Raines Lawrence, BuckleySandler LLP, Brett J Natarelli, BuckleySandler LLP, Daniel J Supalla, Briggs & Morgan, PA, David A Schooler, Briggs & Morgan, PA, Fredrick S Levin, BuckleySandler LLP, Kristopher Knabe, BuckleySandler LLP, Michael A. Rome, BuckleySandler LLP & Richard E Gottlieb, BuckleySandler LLP. Wells Fargo Financial Retail Credit, Inc., formerly known as Norwest Financial Acceptance, Inc ., Defendant, represented by Eric P Tuttle, Munger, Tolles & Olson LLP, Gregory D Phillips, Munger, Tolles & Olson, LLP, Kristopher Knabe, BuckleySandler LLP, Marc T G Dworsky, Munger, Tolles & Olson, LLP,Michael E Soloff, Munger, Tolles & Olson LLP, Richard C St John, Munger Tolles & Olson, Richard T Thomson, Lapp Libra Thomson Stoebner & Pusch, Chartered, Thomas Jacob, Wells Fargo Law Department, Todd J Rosen, Munger Tolles & Olson LLP, Amy L Schwartz, Lapp Libra Thomson Stoebner & Pusch, Chartered & Daniel J Supalla, Briggs & Morgan, PA. National Bank of Kansas City, Defendant, represented by Nancy A Temple, Katten & Temple LLP, Scott N Gilbert, Katten & Temple LLP, Seth J S Leventhal, LEVENTHAL pllc & Daniel J Supalla, Briggs & Morgan, PA. iServe Residential Lending, LLC, Defendant, represented by Erin Sindberg Porter, Greene Espel PLLP,Janine Wetzel Kimble, Greene Espel PLLP, Jeanette M. Bazis, Greene Espel PLLP, Peter L Loh, Gardere Wynne Sewell LLP, Randy D Gordon, Gardere Wynne Sewell LLP & Daniel J Supalla, Briggs & Morgan, PA. United Fidelity Funding Corp, Defendant, represented by Michael J Steinlage, Larson King, LLP. DB Structured Products, Inc., Defendant, represented by Danielle Kantor, Simpson Thacher & Bartlett LLP, David J Woll, Simpson Thacher & Bartlett LLP, Isaac M Rethy, Simpson Thacher & Bartlett LLP,Jonathan Nussbaum, Simpson Thacher & Bartlett LLP, William A McNab, Winthrop & Weinstine, PA,William T Russell, Jr, Simpson Thacher & Bartlett LLP & Daniel J Supalla, Briggs & Morgan, PA. MortgageIT, Inc., Defendant, represented by David J Woll, Simpson Thacher & Bartlett LLP, Isaac M Rethy, Simpson Thacher & Bartlett LLP, William A McNab, Winthrop & Weinstine, PA & Daniel J Supalla, Briggs & Morgan, PA. CTX Mortgage Company, LLC, Defendant, represented by Benjamin E Gurstelle, Briggs & Morgan, PA,Paul J Hemming, Briggs & Morgan, PA & Daniel J Supalla, Briggs & Morgan, PA. Pulte Homes, Inc., and PulteGroup, Inc., Defendants, represented by Benjamin E Gurstelle, Briggs & Morgan, PA & Paul J Hemming, Briggs & Morgan, PA. Home Loan Center, Inc., Defendant, represented by Andrew Steinfeld, American Morgage Law Group, P.C., Carol R M Moss, Hellmuth & Johnson PLLC, Edward Page Allinson, American Mortgage Law Group, P.C., J Robert Keena, Hellmuth & Johnson PLLC, Jack V Valinoti, American Mortgage Law Group, P.C.,James W. Brody, American Mortgage Law Group, Kyle E. Thomason, Williams & Connolly LLP, Daniel J Supalla, Briggs & Morgan, PA, Elizabeth V Kniffen, Zelle Hofmann Voelbel & Mason LLP & Matthew Van Johnson, Williams & Connolly LLP. Decision One Mortgage Company, LLC, Defendant, represented by Beth A Stewart, Williams & Connolly LLP, Daniel J Millea, Zelle Hofmann Voelbel & Mason LLP, Elizabeth V Kniffen, Zelle Hofmann Voelbel & Mason LLP, Jesse T Smallwood, Williams & Connolly LLP, Matthew V Johnson, Williams & Connolly LLP,Noorudin Mahmood Ahmad, Williams & Connolly LLP, R. Hackney Wiegmann, Williams & Connolly LLP &Daniel J Supalla, Briggs & Morgan, PA. HSBC Finance Corporation, Defendant, represented by David J Stagman, Katten Muchin Rosenman LLP,Gregory S Korman, Katten Muchin Rosenman LLP, Nicole M Moen, Fredrikson & Byron, PA, Stuart M Richter, Katten Muchin Rosenman LLP, Todd A Wind, Fredrikson & Byron, PA & Daniel J Supalla, Briggs & Morgan, PA. E-Loan, Inc., Defendant, represented by Sharda R Kneen, Lindquist & Vennum PLLP, Terrence J Fleming, Lindquist & Vennum PLLP, Brooke D Anthony, Anthony Ostlund Baer & Louwagie PA & Daniel J Supalla, Briggs & Morgan, PA. Rescue Mortgage, Inc., Defendant, represented by Christopher R Morris, Bassford Remele, PA, Daniel R Olson, Bassford Remele, PA, Jeffrey D. Klobucar, Bassford Remele, PA, Mark D Covin, Bassford Remele, PA & Daniel J Supalla, Briggs & Morgan, PA. American Mortgage Network, LLC, formerly known as American Mortgage Network, Inc. doing business as Vertice, Defendant, represented by Daniel J Supalla, Briggs & Morgan, PA. RBC Mortgage Company, Defendant, represented by Amanda Raines Lawrence, BuckleySandler LLP,Brian Wegrzyn, BuckleySandler LLP, Daniel J Supalla, Briggs & Morgan, PA, David A Schooler, Briggs & Morgan, PA & Matthew P Previn, BuckleySandler LLP. CMG Mortgage, Inc, Defendant, represented by Andrew Steinfeld, American Morgage Law Group, P.C.,Carol R M Moss, Hellmuth & Johnson PLLC, Edward Page Allinson, American Mortgage Law Group, P.C.,J Robert Keena, Hellmuth & Johnson PLLC, Jack V Valinoti, American Mortgage Law Group, P.C., James W. Brody, American Mortgage Law Group & Daniel J Supalla, Briggs & Morgan, PA. Synovus Mortgage Corp., Defendant, represented by Brent D Hitson, Burr & Forman LLP, Daniel J Supalla, Briggs & Morgan, PA, Mark G Schroeder, Briggs & Morgan, PA & Victor L Hayslip, Burr & Forman LLP. Honor Bank, formerly known as The Honor State Bank, Defendant, represented by Garth G Gavenda, Anastasi Jellum, PA, Lindsay W Cremona, Anastasi Jellum, P.A., Susan Jill Rice, Alward Fisher Rice Rowe & Graf, PLC, T Christopher Stewart, Anastasi Jellum, PA & Daniel J Supalla, Briggs & Morgan, PA. Primary Capital Advisors LLC, Defendant, represented by Daniel J Supalla, Briggs & Morgan, PA, John O'Shea Sullivan, Burr & Forman LLP, Mark G Schroeder, Briggs & Morgan, PA & Tala Amirfazli, Burr & Forman LLP. PHH Mortgage Corp., Defendant, represented by David T Schultz, Maslon LLP, David M Souders, Weiner Brodsky Kider PC, Nicole E Narotzky, Maslon LLP, Tessa K Somers, Weiner Brodsky Kider PC & Daniel J Supalla, Briggs & Morgan, PA. Global Advisory Group, Inc., Defendant, represented by Lance T Bonner, Lindquist & Vennum PLLP. Freedom Mortgage Corporation, Defendant, represented by Enza G Boderone, Bilzin Sumberg Baena Price & Axelrod LLP, Erin Sindberg Porter, Greene Espel PLLP, Janine Wetzel Kimble, Greene Espel PLLP,Jenny Gassman-Pines, Greene Espel PLLP, Philip R. Stein, Bilzin Sumberg Baena Price & Axelrod LLP &Daniel J Supalla, Briggs & Morgan, PA. Monarch Bank, Defendant, represented by Beth A Jenson Prouty, Bassford Remele, PA & Daniel J Supalla, Briggs & Morgan, PA. First Mariner Bank, Defendant, represented by Joel L Perrell, Jr., Miles & Stockbridge P.C., Michael E Blumenfeld, Miles &Stockbridge P.C., Nicole M Moen, Fredrikson & Byron, PA, Timothy M Hurley, Miles & Stockbridge P.C., Todd A Wind, Fredrikson & Byron, PA & Daniel J Supalla, Briggs & Morgan, PA. Sierra Pacific Mortgage Company, Inc., Counter Claimant, represented by Navdeep Singh, Jenkins Kayayan LLP. ROBERT J. MEIER: Shrock's Bid for Administrative Expense Denied --------------------------------------------------------------- Judge Jack B. Schmetterer of the United States Bankruptcy Court for the North District of Illinois, Eastern Division, denied Shrock'S motion for administrative expense For his work in recovering the money for the bankruptcy estate of Robert J. Meier. When Meier converted his bankruptcy case from Chapter 11 to Chapter 7, he reported that the debtor in possession account contained $98,000 in postpetition income, which he claimed as not property of the estate. Shrock moved for a turnover and the Trustee joined in that motion and filed the only reply brief at the end of briefing. The Trustee moved to settle with Meier for half the amount, Shrock objected. The objection to settlement was sustained, and the motion for turnover was granted. That order for turnover is currently on appeal. Shrock has moved for an administrative expense for his work in recovering the money for the estate. Judge Schmetterer denied Shrock's motion for administrative expense, holding that Shrock is not entitled to recover and that his motion was not necessary. The Court pointed out that the Trustee was fully competent to seek recovery of the fund in issue. Shrock, according to the Court, jumped the gun as the new trustee was getting organized and cannot claim to have actually benefited the estate. Judge Schmetterer further held that Section 503 of the Bankruptcy Code provides that an administrative expense includes reasonable compensation for professional services rendered by an attorney or an accountant of an entity whose expense is allowable under "subparagraph (A), (B), (C), (D), or (E) of paragraph (3) of this subsection . . ." Paragraph (3) provides "the actual, necessary expenses . . . incurred by (B) a creditor that recovers, after the court's approval, for the benefit of the estate any property transferred or concealed by the debtor." Judge Schmetterer said, here, only subparagraph (B) could possibly apply. Under subparagraph (B), Shrock's attorney cannot be paid because he did not seek and does not contend that he did seek the court's approval before bringing his motion. Also, the Trustee asserts that Shrock brought the motion before consulting with him. Nor was the property transferred or concealed because it was reported by the Debtor. Thus, there is no administrative expense under Section 503(b)(4). The case is n re: Robert J. Meier, Chapter 7 (Converted from Chapter 11), Debtor, BANKRUPTCY NO. 14-BK-10105 (Bankr. N.D. Ill.). A full-text copy of Judge Schmetterer's Memorandum Opinion dated June 12, 2015, is available at http://bit.ly/1fHK15Qfrom Leagle.com. ROOFING SUPPLY: S&P Revises Outlook to Stable & Affirms 'B' CCR --------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its rating outlook on Roofing Supply Group LLC to stable from negative and affirmed its 'B' corporate credit rating on the company. S&P's 'B' issue-level rating and '3' recovery rating on the company's $315 million term loan due 2019 remain unchanged. The '3' recovery rating indicates S&P's expectation for meaningful recovery (50%-70%; lower end of the range) in the event of payment default. S&P's 'CCC+' issue-level rating and '6' recovery rating on the company's $200 million 10% senior notes due 2020 are also unchanged. "The stable rating outlook on Roofing Supply Group LLC reflects our expectation that the company will improve credit measures due to increased sales and EBITDA margins in 2015," said Standard & Poor's credit analyst Pablo Garces. "Still, we expect the company to remain highly leveraged over the next 12 months, with debt to EBITDA for 2015 of 5.7x." S&P could lower the ratings on the company if roof replacement demand were to deteriorate significantly; if profitability were to decline due to severe price competition among distributors, resulting in the company's interest coverage falling below 1.5x; or if liquidity became constrained due to an unexpected contraction in the company's ABL availability. S&P views an upgrade as unlikely in the next 12 months, given its expectation for leverage to remain high and given the company's ownership by a financial sponsor. However, S&P would consider a positive rating action if leverage dropped to less than 5x and if S&P expected management and sponsors to adopt financial policies consistent with an "aggressive" financial risk profile. SAAD INVESTMENTS: July 14 Hearing on U.S. Recognition ----------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on July 14, 2015, at 10:00 a.m., to consider the joint official liquidators of Saad Investments Company Limited's request for recognition of SICL's liquidation proceedings pending before the Grand Court of the Cayman Islands, Financial Services Division. As reported in the Troubled Company Reporter on June 5, 2015, the Joint Official Liquidators -- Hugh Dickson of Grant Thornton Specialist Services (Cayman) Limited and Stephen Akers and Mark Byers of Grant Thornton U.K. L.L.P -- are in the midst of a lengthy and complex liquidation process based in the Cayman Islands for which they are the sole persons authorized to act on SICL's behalf. SICL's multibillion-dollar liquidation is international in scale and has been in progress for almost six years. The Cayman Island Proceeding involves over $9.7 billion in assets and about $3.754 billion in liabilities, stemming from holdings and obligations located in multiple jurisdictions in the Caribbean, Europe, Australia, and Middle East. Accordingly, in carrying out their duties, the JOLs have already sought and received recognition of the Cayman Islands Proceeding as a foreign main proceeding in multiple jurisdictions, including in England and Australia, and brought various legal proceedings to recover SICL's assets on behalf of creditors. To date, they have recovered over $450 million in assets. The JOLs seek recognition of the Cayman Islands Proceeding to efficiently administer SICL's assets and investigate SICL's affairs in the United States. $9 Billion in Assets at its Peak SICL, incorporated in the Cayman Islands, was formed by Maan Al-Sanea of Saudi Arabia, to manage his non-Saudi Arabian assets, including a portfolio consisting of equities, funds, interest bearing securities, and real estate. According to its internal accounting records, SICL held about an estimated $9 billion in assets and $4.5 billion in liabilities. SICL's interests are spread across the globe, including in the Caribbean, Australia, Europe, and the Middle East. Around May 28, 2009, the Saudi Arabian Monetary Authority ("SAMA") froze Al-Sanea's assets. The freeze was reported globally and triggered the withdrawal by Moody's of the credit rating of SICL's debt in early June 2009 Prior to the freeze, SICL entered into a Credit Facility Agreement with a syndicate of banks. The banks made available to SICL a syndicated unsecured revolving credit facility in the amount of US$2.815 billion (the "Credit Facility Agreement"). As a result of the removal of SICL's credit rating, individual banks issued default notices under the Credit Facility Agreement and other bilateral agreements between those banks and SICL and began selling collateral shortly after the SAMA asset freeze. During this time, the Saad Group contemplated an out-of-court restructuring with creditor agreement. A director of the Saad Group sent a letter to SICL's lenders notifying them of the proposed restructuring to "resolve the funding problems with a proper process." In late June 2009, SICL sent a notice to its lenders containing details of a meeting it proposed to be held in early July informing creditors of its restructuring proposals. The meeting never materialized. Instead, on July 30, 2009, Barclays Bank PLC, CALYON, and The Royal Bank of Scotland (the "Petitioning Creditors") -- each a lender under the Credit Facility Agreement -- filed a petition for the winding up of SICL. Following the petition, on August 5, 2009, the Cayman Islands Grand Court appointed Hugh Dickson of Grant Thornton Specialist Services (Cayman) Limited and Stephen Akers and Mark Byers of Grant Thornton U.K. L.L.P as Joint Provisional Liquidators of SICL. On Sept. 18, 2009, Messrs Dickson, Akers and Byers were appointed Joint Official Liquidators of SICL. Related Entities One or more of the JOLs were also appointed as joint official liquidators over various other entities within the Saad Group that were connected to SICL: Liquidation process Date of Group company and jurisdiction Liquidation ------------- ---------------- ----------- Lombard Atlantic Bank N.V. Voluntary 4 Sept. 2009 Liquidation, Curacao Singularis Holdings Limited Court Supervised 18 Sept. 2009 Liquidation, Cayman Islands LA Investments Limited Members' Voluntary 21 Sept. 2009 Liquidation, UK Saad Inv. Finance Co. Ltd. Court Supervised 26 Oct. 2009 Liquidation, Cayman Islands Saad Inv. Finance Co. (No. 2) Court Supervised 26 Oct. 2009 Liquidation, Cayman Islands Saad Inv. Finance Co. (No. 3) Court Supervised 26 Oct. 2009 Liquidation, Cayman Islands Saad Inv. Finance Co. (No. 8) Court Supervised 26 Oct. 2009 Liquidation, Cayman Islands Saad Inv. Finance Co. (No. 9) Court Supervised 26 Oct. 2009 Liquidation, Cayman Islands Saad Inv. Finance Co (No. 10) Court Supervised 26 Oct. 2009 Liquidation, Cayman Islands Ringmore Limited Summary Winding 25 Nov. 2009 up, Jersey Saad Cayman Limited Court Supervised 4 Dec. 2009 Liquidation, Cayman Islands Saad Financial Advisory Services Ltd. Official Liquid. 22 Feb. 2010 in Dubai International Financial Centre There are multiple foreign proceedings related to the Cayman Islands Proceeding that have already received recognition as foreign main proceedings in U.S. court. First is Saad Investments Finance Company (No. 5) Limited, which is a wholly owned subsidiary of SICL and also in official liquidation in the Cayman Islands. Due to a conflict, Petitioners were not appointed as Joint Official Liquidators of Saad Investments Finance Company (No. 5) Limited; instead Mark Longbottom and Nicholas Paul Matthews of Kinetic Partners were appointed as the entity's Joint Official Liquidators. Saad Investments Finance Company (No. 5) Limited's Cayman Islands insolvency proceeding was recognized as a foreign main proceeding by order of the Bankruptcy Court for the District of Delaware, Case No. 09-13985-KG, Docket No. 39, Dec. 4, 2009. The second related proceeding is Awal Bank, BSC, which is a foreign banking corporation incorporated in the Kingdom of Bahrain. SICL is a 48% shareholder of Awal Bank. On July 30, 2009, the Central Bank of Bahrain placed Awal Bank into administration and appointed Charles Russell, a British law firm with a Bahrain office, as External Administrator. Awal Bank's Bahrain insolvency proceeding was recognized as a foreign main proceeding by order of the Bankruptcy Court for the Southern District of New York, Case No. 09-15923 (ALG), Docket No. 18, October 28, 2009. Subsequently, Awal Bank filed a voluntary petition under chapter 11 of the Bankruptcy Code also in the Bankruptcy Court for the Southern District of New York, Case No. 10-15518 (ALG). Finally, there is a third set of proceedings for seven of Awal Bank's subsidiaries -- Awal Master Fund, Awal Finance Company Limited, Awal Feeder 1 Fund Limited, Awal Finance Company (No. 2) Limited, Awal Finance Company (No. 3) Limited, Awal Finance Company (No. 4) Limited, and Awal Finance Company (No. 5) Limited (collectively, the "Awal Subsidiaries"). Each of the Awal Subsidiaries has liquidation proceedings in the Cayman Islands. Chris Johnson, Russell Homer, Bruce Alexander MacKay, and Geoffrey Lambert Carton-Kelly were appointed as the Joint Official Liquidators of the Awal Subsidiaries. The Awal Subsidiaries' Cayman Islands proceedings were recognized by order of the Bankruptcy Court for the Southern District of New York, Case No. 15-10652 (MEW), Docket No. 15, May 5, 2015. About Saad Investments Saad Investments Company Limited is the main holding company of a group of Saad entities. The Saad Group's Chairman and SICL's beneficial owner is Maan Al-Sanea of Saudi Arabia. According to Forbes magazine, Al-Sanea's net worth was once $7 billion, ranking him as the world's 62nd richest person. SICL's stated purpose was to hold and manage Al-Sanea's non-Saudi Arabian assets, including a portfolio consisting of equities, funds, interest bearing securities, and real estate. The joint official liquidators of SICL filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No. 15-11440) in Manhattan in the United States on May 29, 2015, to seek recognition of SICL's winding up proceedings in the Cayman Islands. The U.S. case is assigned to Judge James L. Garrity Jr. Randall Adam Swick, Esq., at Reid Collins & Tsai LLP, serves as counsel in the U.S. case. SEADRILL LTD: 2021 Bank Debt Trades at 23% Off ---------------------------------------------- Participations in a syndicated loan under which Seadrill Ltd. is a borrower traded in the secondary market at 77.22 cents-on-the- dollar during the week ended Friday, June 26, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the June 30, 2015, edition of The Wall Street Journal. This represents a decrease of 1.32 percentage points from the previous week, The Journal relates. Seadrill Ltd. pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on February 17, 2021, and carries Moody's Ba3 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 260 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. SEARS HOLDINGS: ESL Investments Reports 55.2% Equity Stake ---------------------------------------------------------- In an amended Schedule 13D filed with the Securities and Exchange Commission, ESL Investments, Inc. disclosed that as of June 26, 2015, it beneficially owned 61,515,999 common shares of Sears Holdings Corporation, which represents 55.2 percent of the shares outstanding. On June 26, 2015, in connection with the Seritage Rights Offering, ESL and Edward S. Lampert (the "Participants") entered into an exchange agreement with Seritage Growth Properties, L.P., and Seritage. Pursuant to the Exchange Agreement, each Participant has agreed to exchange cash and subscription rights received pursuant to the Seritage Rights Offering that, if exercised, would result in the Participants receiving in excess of 3.2% of the Seritage common shares, for Operating Partnership units and Class B non-economic shares of beneficial interest, par value $0.01 per share, of Seritage. The Class B Shares will have, in the aggregate, 6.6% of the voting power of Seritage at the closing of the rights offering by Seritage but will not be entitled to dividends or distributions. The Exchange Agreement allows the Participants to participate in the over-subscription privilege with respect to subscription rights they exchange to the same extent as if they had exercised those rights. In addition, the Participants have agreed that upon any sale or other transfer to a non-affiliate of any of the OP Units received pursuant to the Exchange Agreement, they will surrender to Seritage a pro rata portion of the Class B Shares that they hold, whereupon the surrendered shares will be cancelled and the aggregate voting power of the Participants in Seritage will be reduced. A copy of the regulatory filing is available for free at: http://is.gd/AiplMS 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 May 2, 2015, Sears Holdings had $13.3 billion in total assets, $14.5 billion in total liabilities, and a $1.20 billion 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. SELECTBUILD ILLINOIS: Bid to Enforce Permanent Injunction Denied ---------------------------------------------------------------- Bankruptcy Judge Kevin J. Carey denied the reorganized debtors' Motion to Enforce the Permanent Injunction against the Ryland Group, Inc. in the case captioned In re: SELECTBUILD ILLINOIS, LLC, et al., CHAPTER 11, Reorganized Debtors, CASE NO. 09-12085 (KJC) (Bankr. D. Del.). Ryland sought to obtain indemnification from ACE American Insurance Company for personal injury claims brought by former employees of debtor SelectBuild Illinois, LLC against Ryland in Illinois state court. The Reorganized Debtors filed a Motion to Enforce the Permanent Injunction against Ryland, arguing that Ryland's efforts would violate the discharge injunction provided by their confirmed plan because it could trigger SelectBuild's obligation to pay $1.9 million deductible under its policy with ACE. Ryland contended that it should be allowed to seek indemnification from ACE because, for among other reasons, Ryland is an additional insured on the policy. Judge Carey denied the relief requested by the Reorganized Debtors and Ryland was not enjoined from seeking indemnification as an additional insured from ACE. A copy of the May 28, 2015 memorandum is available at http://is.gd/G330pxfrom Leagle.com. About Building Materials and SelectBuild Illinois Building Materials Holding Corporation -- http://www.bmhc.com/-- is one of the largest providers of building materials and residential construction services in the United States. BMHC serves the homebuilding industry through two recognized brands: as BMC West, it distributes building materials and manufacture building components for professional builders and contractors in the western and southern states; as SelectBuild, it provides construction services to high-volume production homebuilders in key markets across the country. BMHC and its 11 affiliates, including SelectBuild Illinois, LLC, filed for bankruptcy on June 16, 2009 (Bankr. D. Del. Lead Case No. 09-12074). Judge Kevin J. Carey presided over the cases. Michael A. Rosenthal, Esq., and Matthew K. Kelsey, Esq., at Gibson, Dunn & Crutcher LLP; and Sean M. Beach, Esq., at Young Conaway Stargatt & Taylor, LLP, served as bankruptcy counsel. Paul Croci, at Peter J. Solomon Company, served as financial advisor. Joseph Spano at Alvarez & Marsal North America, LLC, served as restructuring advisor. The Debtors' tax consultant was KPMG LLP; tax advisor was PricewaterhouseCoopers LLP; and claims and notice agent was The Garden City Group, Inc. As of March 31, 2009, the Debtors had total assets of $480,148,000 and total debts of $481,314,000. On December 17, 2009, the court entered an Order confirming the debtors' joint plan of reorganization. SONY CORP: Moody's Affirms Ba1 Rating on Sr. Unsecured Bonds ------------------------------------------------------------ Moody's Japan K.K. has changed Sony Corporation's ratings outlook to positive from stable. At the same time, Moody's has affirmed Sony's Ba1 issuer and long-term senior unsecured bond ratings. Moody's has also affirmed Not Prime short-term rating of its supported subsidiary, Sony Global Treasury Services Plc. RATINGS RATIONALE "The change in Sony's ratings outlook to positive from stable principally reflects the company's efforts in effectively lowering its financial leverage over the past year as well as our view that steady progress in the company's restructuring efforts will help sustain its operating performance over the next 12-18 months," says Takashi Akimoto, a Moody's Analyst. "The change in Sony's ratings outlook also reflects the alleviation of our concerns over a potential deterioration in its financial leverage, following Sony's announcement today that its recently expanded capex program would be funded by new equity offerings," says Akimoto who is also the Lead Analyst for Sony. "The company's now lower leverage combined with the benefit of additional equity has provided a more meaningful cushion within its rating to absorb potential volatility in its operating environment and earnings", adds Akimoto. On June 30, 2015, Sony announced an approximate JPY320 billion issuance of new shares together with a secondary offering of shares and a JPY120 billion issuance of new convertible bonds. Proceeds from the share and bond issuance will be mainly used to expand the company's production capacity and to enhance research and development activities for its image sensors business. In addition, JPY69 billion out of JPY120 billion issuance of convertible bonds will be used for existing debt repayment. Sony announced in April 2015 that it would more than double its capex for FYE3/2016 to JPY501.0 billion from the JPY243.9 billion notified at FYE3/2015. Sony's reported total debt for its non-financial services businesses fell by JPY360.8 billion for FYE3/2015 to JPY886.3 billion from JPY1.25 trillion at FYE3/2014. A recovery in the operating performance of its non-financial services businesses contributed to its improved financial leverage. Specifically, adjusted debt/EBITDA of 2.9x for FYE3/2015 improved materially from the 4.5x for FYE3/2014. Moody's expects that with the announcement of new equity issuance and taking into account its heightened capex plans, the company's financial profile should be more manageable within the rating. "Sony's debt reduction efforts and proposed equity issuance are credit positive and indicative of management's greater commitment to restoring its financial strength", adds Akimoto. The company's mid-range plan -- covering the periods from FYE3/2016 to FYE3/2018 -- aims to transform its operations by focusing on profitability rather than volume. In addition, all business segments — except for mobile communications — posted positive operating income at FYE 3/2015, supported by steady progress in the company's restructuring efforts to turn around its unprofitable businesses. Sony expects to report solid operating performance in FYE3/2016. In particular, the company expects to post operating income of JPY145.0 billion in FYE3/2016; excluding its financial segment. Sony's forecast for operating income in FYE3/2016 contrasts significantly from its operating loss of JPY124.8 billion in FYE3/2015. Moody's notes that the operating loss in FYE3/2015 includes non-recurring expenses, such as a JPY98.0 billion in restructuring charges and JPY176.0 billion in goodwill impairment charges related to its mobile communications segment. "Nevertheless, a level of uncertainty remains as to whether or not Sony can achieve sustainable operating performance over the longer term; especially in its consumer electronics-related businesses, where pricing pressures remain strong" Says Akimoto. For instance, Sony's mobile communications segment will likely incur an operating loss of JPY39.0 billion for FYE3/2016. Moody's will continue to monitor Sony's progress on its restructuring measures for this segment, and whether or not the segment's profitability recovers. Sony's Ba1 ratings reflect its diversified business portfolio, as seen by its broad range of products; strong brand recognition; large scale and geographically diversified earnings stream. The ratings also incorporate the challenges it faces in stabilizing its profitability. The positive outlook provides a potential pathway to ratings improvement should debt remain permanently lower and earnings stabilize further in its key operating segments. Sony's ratings could experience upgrade pressure if its non-financial services businesses maintain: 1) an adjusted debt/EBITDA of 4.0x-4.5x; and 2) an adjusted debt/capitalization below 55%. On the other hand, downward ratings pressure could emerge if profitability, cash flow, and leverage deteriorate further, and if Sony's non-financial services segments fail to maintain overall operating profit — excluding non-recurring gains and losses, and equity income — or if adjusted debt/EBITDA deteriorates to the 6x-7x range, or adjusted debt/capitalization deteriorates such that the ratio exceeds 65%. The principal methodology used in these ratings was Global Manufacturing Companies (Japanese) published in August 2014. Sony Corporation, headquartered in Tokyo, is one of the world's leading manufacturers of consumer electronics products. SS&C TECHNOLOGIES: Moody's Retains 'B1' CFR Over Notes Increase --------------------------------------------------------------- Moody's Investors Service said that SS&C Technologies Holdings, Inc.'s B1 Corporate Family Rating, the ratings for SS&C's proposed senior credit facilities and senior unsecured notes, as well as its positive ratings outlook are not affected by the company's plans to increase its senior notes offering by $100 million to $600 million. STEPHEN E. CREECH: Court Rules in Suit Against Ormond Oil --------------------------------------------------------- Bankruptcy Judge Stephani W. Humrickhouse issued an order in determination of an adversary proceeding and objection to claim in the case captioned STEPHEN E. CREECH, EDNA B. CREECH, Plaintiffs, v. ORMOND OIL & GAS CO., INC., Defendant, ADVERSARY PROCEEDING NO. 13-00124-8-SWH (E.D.N.C., Raleigh Div.). On November 13, 2012, Stephen E. Creech and Edna B. Creech executed a Future Advance Promissory Note to evidence their debt with defendant Ormond Oil & Gas Co., Inc., secured by a Deed of Trust (With Future Advance Clause). The deed of trust was recorded on November 16, 2012 at Book 4205, Page 885, Johnston County Registry. On July 29, 2013, the debtors filed a complaint seeking the avoidance of the deed of trust as a preferential transfer, and disallowance of the defendant's claim because it violates Chapter 75 of the North Carolina General Statutes. The defendant sought a determination that the debt is nondischargeable, alleging that the debtors obtained money, services, or an extension, renewal or refinancing of credit by false pretenses, a false representation, or actual fraud. After conducting a trial on the merits, Judge Humrickhouse allowed the debtors' request for avoidance of the deed of trust pursuant to Section 547(B). He found that the deed of trust fully satisfies the elements of Section 547 and the new value defense is not available to the defendant. Judge Humrickhouse, however, denied the debtors' claim pursuant to Chapter 75 of the North Carolina General Statutes. She held that the evidence presented by the debtors is insufficient to show that the actions of the defendant constituted an unfair trade practice. The debtors have also failed to show any evidence of actual injury as required by Chapter 75. Lastly, Judge Humrickhouse denied the defendant's counterclaim seeking a determination that its debt is nondischargeable pursuant Section 523. She found that the defendant failed to prove that the debtors made any false representations about their financial situation or that the debtors acted fraudulently by continuing to accept fuel from the defendant. A copy of the May 28, 2015 order is available at http://is.gd/1FNWRWfrom Leagle.com. About Stephen E. Creech and Edna B. Creech Stephen and Edna Creech filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No. 13-00817-8-SWH) on February 8, 2013. SUN PRODUCTS: S&P Affirms 'B-' CCR & Revises Outlook to Stable -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' corporate credit rating on Wilton, Conn.-based The Sun Products Corp. and revised its rating outlook to stable from negative. At the same time, S&P affirmed its 'B-' issue-level rating on the company's $1.155 billion secured bank credit facility. The recovery rating on this debt remains '3', indicating S&P's expectation that lenders could expect meaningful (50%-70%, at the upper half of the range) recovery in the event of a payment default or bankruptcy. S&P also affirmed its 'CCC' issue-level rating on the company's $575 million 7.75% senior unsecured notes due 2021. The recovery rating on this debt remains '6', indicating that lenders could expect negligible (0-10%) recovery in the event of a payment default or bankruptcy. Debt outstanding as of March 31, 2015, was about $1.86 billion, including preferred stock. "The outlook revision reflects our expectation that Sun Products will be able to generate modest free cash flow for debt repayment and sustain its improved, albeit still below-average, profitability," said Standard & Poor's credit analyst Gerald Phelan. "This should also enable the company to modestly strengthen its currently weak credit metrics." Standard & Poor's ratings on Sun Products reflect the intense competition it faces from several large rivals that have substantially greater resources, including Procter & Gamble Co., Church & Dwight Co. Inc., and Henkel AG & Co. KGaA; and the company's narrow focus in the laundry category, which is mature and has declined over the past few years owing to weak disposable incomes, the introduction of "unit-dose" products that have enabled consumer to reduce overall usage, and a price war triggered by the launch of a lower-priced brand extension from the dominant industry leader, P&G. Although S&P believes the highly competitive pricing environment has stabilized, it is possible renewed discounting could occur, especially since Henkel recently launched Persil, a higher-end laundry detergent that is already established in Europe and quickly gaining share in the U.S., into Wal-Mart stores. S&P believes Henkel will try to gain shelf space with other retailers. This could result in price competition across the pricing spectrum, including in the lower end, which is where Sun Products generally competes through its owned brands (primarily All, Wisk, and Snuggle) and its private-label store brands. S&P's business risk assessment also incorporates Sun Products' substantial customer concentration, particularly with Wal-Mart and Costco, which combined account for almost half of the company's sales. S&P's ratings assume Sun Products maintains its number two position in the industry and market share in the mid-to-high teens. S&P's ratings also reflect Sun Products highly leveraged capital structure and its majority ownership by a private equity financial sponsor. Most financial sponsors focus on generating investment returns over short-term horizons (less than five years), at times through acquisitions and dividend payouts. Therefore, S&P continues to believe the company will likely add leverage if it were able to meaningfully improve profitability to make acquisitions and/or distribute dividends to its shareholders. TECHPRECISION CORP: Incurs $3.6 Million Net Loss in FY 2015 ----------------------------------------------------------- TechPrecision Corporation filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $3.6 million on $18.2 million of net sales for the year ended March 31, 2015, compared to a net loss of $7.1 million on $21.1 million of net sales for the year ended March 31, 2014. For the three months ended March 31, 2015, the Company reported a net loss of $718,624 on $3.9 million of net sales compared to a net loss of $4.1 million on $3.6 million of net sales for the same period last year. As of March 31, 2015, the Company had $11.3 million in total assets, $11 million in total liabilities and $288,495 in total stockholders' equity. Marcum LLP, in Bala Cynwyd, Pennsylvania, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2015, citing that the Company has suffered recurring losses from operations, and the Company's liquidity may not be sufficient to meet its debt service requirements as they come due over the next twelve months. These circumstances raise substantial doubt about the Company's ability to continue as a going concern. "Recapping our turnaround activities in fiscal year 2015, we sharply focused on productivity initiatives, realignment of resources, and top line growth with key customers," stated Alexander Shen, TechPrecision's chief executive officer. "As a result, we have improved profitability on a sales volume that was 13% lower than last year. We ended fiscal year 2015 with a 26% year over year decrease in selling, general, and administrative expense, and a positive gross margin of 13% compared to a negative gross margin of 3.5% for the previous year. Also, we achieved a key milestone in successfully refinancing our legacy bank debt through two separate financing events with asset based lenders, enabling us to eliminate certain liquidity risks associated with defaults under our legacy bank covenants, giving us the time and flexibility to rebuild our business with a more optimal mix of customers and customer orders." "Moving forward, the key is to maintain the sharp focus that got us to this point of our recovery. We plan to increase our backlog and focus on new business contracts with our core customers which utilize our core competencies in custom, large scale, high precision fabrication and machining and leverage our established expertise, certifications, and qualifications in the defense, nuclear, energy, and precision industrial sectors. We must continue to execute and maintain operational run rate improvements to improve gross margins and increase the amount of cash generated from operations." At March 31, 2015, TechPrecision had negative working capital of $2.1 million compared with negative working capital of $2.0 million, at March 31, 2014. As of March 31, 2015, the Company had $1.3 million in cash and cash equivalents compared to $1.1 million at March 31, 2014. The Company's backlog at March 31, 2015, was $14.3 million compared to an adjusted backlog of $17.4 million, at March 31, 2014, that excludes orders cancelled by a customer that filed for bankruptcy subsequent to March 31, 2014. A full-text copy of the Form 10-K is available for free at: http://is.gd/mdkbbx About TechPrecision TechPrecision Corporation (OTC BB: TPCSE), through its wholly owned subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical Components Co., Ltd., globally manufactures large-scale, metal fabricated and machined precision components and equipment. TECHPRECISION CORP: Posts Net Loss of $3.6M in Fiscal Year 2015 --------------------------------------------------------------- TechPrecision Corporation, an industry leading global manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the defense, energy and precision industrial sectors, on June 29 reported financial results for the fourth quarter and full-year periods of fiscal year 2015, the periods ended March 31, 2015. Year-end Recap "Recapping our turnaround activities in fiscal year 2015, we sharply focused on productivity initiatives, realignment of resources, and top line growth with key customers," stated Alexander Shen, TechPrecision's Chief Executive Officer. "As a result, we have improved profitability on a sales volume that was 13% lower than last year. We ended fiscal year 2015 with a 26% year over year decrease in selling, general, and administrative expense, and a positive gross margin of 13% compared to a negative gross margin of 3.5% for the previous year. Also, we achieved a key milestone in successfully refinancing our legacy bank debt through two separate financing events with asset based lenders, enabling us to eliminate certain liquidity risks associated with defaults under our legacy bank covenants, giving us the time and flexibility to rebuild our business with a more optimal mix of customers and customer orders." "Moving forward, the key is to maintain the sharp focus that got us to this point of our recovery. We plan to increase our backlog and focus on new business contracts with our core customers which utilize our core competencies in custom, large scale, high precision fabrication and machining and leverage our established expertise, certifications, and qualifications in the defense, nuclear, energy, and precision industrial sectors. We must continue to execute and maintain operational run rate improvements to improve gross margins and increase the amount of cash generated from operations." Fourth Quarter Fiscal Year 2015 (Q4 FY15) Summary: Three Months Ended March 31, 2015 Net sales increased 9% to $3.9 million in Q4 FY15 compared to $3.6 million in Q4 FY14. Cost of sales decreased by $3.2 million in Q4 FY15 compared to Q4 FY14. The higher level of cost of sales in Q4 FY14 was primarily driven by $3.1 million of contract losses recorded during that quarter. Gross profit was $0.9 million or 22% of revenue for Q4 FY15 compared to a gross loss of $2.65 million or (74%) of revenue in Q4 FY14. Selling, general and administrative expenses decreased 9% to $1.3 million in Q4 FY15 compared to $1.4 million in Q4 FY14. The Company continues a process to recover some of the contract losses recorded last year; however, this effort is now governed by a customer's Chapter 11 bankruptcy proceeding which adds uncertainty to both the timeframe and degree of recovery that might be ultimately achieved. Net loss was $0.7 million for Q4 FY15 compared to a net loss of $4.1 million in Q4 FY14. Fiscal Year 2015 (FY15) Summary: 12 Months Ended March 31, 2015 For FY15, net sales decreased 13% or $2.8 million to $18.2 million compared to $21.1 million in FY14. Gross margin was 13% for FY15 compared to a negative 3.5% gross margin in FY14. Selling, general and administrative expense decreased 26% to $4.5 million in FY15 compared to $6.1 million in FY14. Loss from operations was $2.2 million for FY15 compared to $6.8 million in FY14. Net loss was $3.6 million for FY15 compared to a net loss of $7.1 million in FY14. Balance Sheet Summary At March 31, 2015, TechPrecision had negative working capital of $2.1 million compared with negative working capital of $2.0 million, at March 31, 2014. As of March 31, 2015, the Company had $1.3 million in cash and cash equivalents compared to $1.1 million at March 31, 2014. The Company's backlog at March 31, 2015 was $14.3 million compared to an adjusted backlog of $17.4 million, at March 31, 2014, that excludes orders cancelled by a customer that filed for bankruptcy subsequent to March 31, 2014. About TechPrecision TechPrecision Corporation (OTC BB: TPCSE), through its wholly owned subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical Components Co., Ltd., globally manufactures large-scale, metal fabricated and machined precision components and equipment. TechPrecision reported a net loss of $7.09 million for the year ended March 31, 2014, as compared with a net loss of $2.41 million for the year ended March 31, 2013. As of Dec. 31, 2014, the Company had $14.4 million in total assets, $13.5 million in total liabilities and $937,000 in total stockholders' equity. KPMG LLP, in Philadelphia, Pennsylvania, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2013. The independent auditors noted that the Company was not in compliance with the fixed charges and interest coverage financial covenants under their credit facility, and the Bank has not agreed to waive the non-compliance with the covenants. Since the Company is in default, the Bank has the right to accelerate payment of the debt in full upon 60 days written notice. The Company has suffered recurring losses from operations, and the Company's liquidity may not be sufficient to meet its debt service requirements as they come due over the next twelve months. These circumstances raise substantial doubt about the Company's ability to continue as a going concern. TENSAR CORP: S&P Cuts Corp. Credit Rating to 'B-', Outlook Stable ----------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its corporate credit rating on Alpharetta, Ga.-based site-development solution provider The Tensar Corp. to 'B-' from 'B'. The outlook is stable. Concurrently, S&P lowered the issue-level ratings on the company's $30 million revolving credit facility due 2019 and $235 million first-lien term loan due 2021 to 'B' from 'B+'. The recovery rating remains '2', indicating S&P's expectation of substantial (70% to 90%; upper half of range) recovery in the event of a payment default. S&P also lowered the issue-level rating on the company's $78 million second-lien term loan due 2022 to 'CCC+' from 'B-'. The recovery rating remains '5', indicating S&P's expectation of modest (10% to 30%; lower half of range) recovery in the event of a payment default. "The stable outlook reflects our view that the company will demonstrate modest performance growth over the next year because of higher infrastructure spending and commercial construction," said Standard & Poor's credit analyst Maurice Austin. "We also believe that increased penetration of the company's products will provide incremental revenues gains. However, we forecast that credit protection measures will remain commensurate with a highly leveraged financial risk profile over the next year, with leverage remaining above 10x and interest coverage in excess of 1x." Although less likely in an improving business environment, S&P could lower the rating if liquidity deteriorates significantly such that availability on the first-lien revolving credit facility approaches $10 million, a level less than the company expects. This could occur if spending in the infrastructure and commercial equipment industries is meaningfully lower than S&P's forecast, the company fails to meet its sales targets, or a significant increase in raw material costs results in performance erosion for the company. Although S&P forecasts some modest performance gains, it do not believe an upgrade is likely within the next 12 months given its forecast for leverage to remain significantly above 5x. Any positive ratings momentum would be predicated on EBITDA growth in line with company projections, or a reduction in debt such that leverage would decline to the mid-5x area. Both scenarios would need to be in conjunction with our reassessment of liquidity as "adequate." TIERRA DEL REY: Apartment Complex Enters Ch. 11 with $5.54M Debt ---------------------------------------------------------------- Tierra Del Rey, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Cal. Case No. 15-04253) on June 29, 2015, disclosing assets of $10.8 million against $5.54 million in debt. The Debtor owns the Tierra Del Rey Apartments, an 80-unit multi-family apartment complex at 3675 King Street and 6975 Waite Street in La Mesa, California. The property is valued at $10.6 million and secures a debt of $4.21 million debt to Fannie Mae (1st trust deed) and a $1.27 million debt to AP Mortgage Company, Inc. (2nd trust deed). In its schedules of assets and liabilities, the company disclosed: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $10,600,000 B. Personal Property $217,100 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $5,484,514 E. Creditors Holding Unsecured Priority Claims $5,600 F. Creditors Holding Unsecured Non-priority Claims $48,613 ----------- ----------- TOTAL $10,817,100 $5,538,726 According to the statement of financial affairs, the apartment complex generated rental income of $864,000 in 2013, $882,000 in 2014, and $275,000 in January to June 2015. The Debtor disclosed that a receiver seized control of the apartment complex on June 19, 2015. The receiver so far has collected $211,000. The receiver, Trigild, Inc., was appointed at the behest of AP Mortgage, which commenced the suit styled, AP Mortgage Company, Inc. vs. Bay Vista Methodist Heights et al. 37-2015-00012044-CU-OR-CTL, SDSC Central Division. The Debtor tapped Craig E. Dwyer, Esq., in San Diego, California, as counsel. TWIN CITIES: S&P Assigns 'BB' Rating on $15.8MM Revenue Bonds ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' rating to the Housing and Redevelopment Authority of the City of St. Paul, Minn.'s $15.8 million series 2015A and series 2015B charter school lease revenue bonds, issued for Twin Cities Academy (TCA). The outlook is stable. "The rating reflects our assessment of TCA's long history of sustainable operations, good state support in Minnesota, growing enrollment with modest wait lists, adequate liquidity, and experienced management team," said Standard & Poor's credit analyst Jessica Wood. "Factors currently precluding a higher rating are TCA's planned addition of a significant amount of debt, slim pro forma debt service coverage at less than 1.0x, and high debt burden, as well as the risks associated with new construction, relocation, and the need to grow enrollment and for net income to exceed 1.0x maximum annual debt service coverage over time." Management plans to use the net proceeds of the series 2015 bonds to acquire land and construct a new building (approximately 1.5 miles from its current site) to provide classroom space for its current sixth to 12th grade students, as well as to accommodate growth over the next few years, to 600 students from 450. Proceeds will also be used to fund capitalized interest, to fund a debt service reserve fund, and to pay costs associated with the issuance of the series 2015 bonds. TXU CORP: 2014 Bank Debt Trades at 42% Off ------------------------------------------ Participations in a syndicated loan under which TXU Corp. is a borrower traded in the secondary market at 57.40 cents-on-the- dollar during the week ended Friday, June 26, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the June 30, 2015, edition of The Wall Street Journal. This represents an increase of 0.15 percentage points from the previous week, The Journal relates. TXU Corp. pays 350 basis points above LIBOR to borrow under the facility. The bank loan was scheduled to mature on Oct. 10, 2014 and Moody's withdraws ratings and Standard & Poor did not give any rating. The loan is one of the biggest gainers and losers among 260 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. TXU CORP: 2017 Bank Debt Trades at 42% Off ------------------------------------------ Participations in a syndicated loan under which TXU Corp. is a borrower traded in the secondary market at 58.43 cents-on-the- dollar during the week ended Friday, June 26, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the June 30, 2015, edition of The Wall Street Journal. This represents an increase of 1.11 percentage points from the previous week, The Journal relates. TXU Corp. pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 10, 2017 and Moody's withdraws ratings and Standard & Poor did not give any rating. The loan is one of the biggest gainers and losers among 260 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. U.S. FOODS: S&P Affirms 'B' Corp. Credit Rating, Off CreditWatch ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed all of its long-term ratings on Rosemont, Ill.-based US Foods Inc. (USF), including its 'B' corporate credit rating. At the same time, S&P removed its ratings on the company from CreditWatch, where it placed them with positive implications on Dec. 9, 2013. The rating outlook is stable. The affirmation and CreditWatch action follow the termination of the company's merger agreement with Sysco after a federal judge's decision to grant the FTC's request for a preliminary injunction to block the proposed merger. Standard & Poor's ratings on USF reflect its number two position as a stand-alone entity in the highly competitive and fragmented foodservice distribution industry, and its low, albeit stable, margins. "While we believe the high degree of uncertainty since the proposed merger was announced has caused some customer and employee defections, we don't believe this has had a significant impact on the company's market share," said Standard & Poor's credit analyst Brennan Clark. S&P's ratings also reflect the company's weak credit ratios and financial sponsor ownership. In S&P's opinion, financial policy will favor shareholder returns over meaningful permanent debt reduction, keeping leverage high, despite anticipated EBITDA growth. S&P's stable outlook reflects its expectation that USF will grow revenues modestly and generate stable free cash flow while maintaining adequate liquidity. S&P believes this will enable the company to improve credit ratios modestly, including leverage in the high-6x area and FFO to debt in the high-single digits over the next year. While the company has likely lost some customers over the last year and a half since the proposed merger with Sysco was announced, S&P don't believe this has resulted in a significant loss of market share. S&P could lower the ratings if USF's credit metrics deteriorate, including leverage in the mid-8x area. While unlikely over the next 12 months, S&P could raise the ratings if the company continues to increase scale and realize cost savings from its business transformation program. Alternatively, S&P could raise the ratings if USF improves credit ratios, including leverage in the mid-5x area, and adopts a more conservative financial policy with a clear indication that the financial sponsors are reducing control. UNITED BANCSHARES: Incurs $343,000 Net Loss in 2014 --------------------------------------------------- United Bancshares, Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $343,000 on $2.90 million of total interest income for the year ended Dec. 31, 2014, compared with a net loss of $669,000 on $2.90 million of total interest income for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $60.5 million in total assets, $57.3 million in total liabilities and $3.2 million in total shareholders' equity. McGladrey LLP, in Blue Bell, Pennsylvania, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, noting that the Company's regulatory capital amounts and ratios are below the required levels stipulated with Consent Orders between the Company and its regulators under the regulatory framework for prompt corrective action. Failure to meet the capital requirements exposes the Company to regulatory sanctions that may include restrictions on operations and growth, mandatory asset disposition, and seizure of the Company. These matters raise substantial doubt about the ability of the Company to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/w5VtNO About United Bancshares Located in Philadelphia, Pennsylvania, United Bancshares, Inc., is an African American controlled and managed bank holding company for United Bank of Philadelphia, a commercial bank chartered in 1992 by the Commonwealth of Pennsylvania, Department of Banking. VIGGLE INC: President and COO Resigns ------------------------------------- Gregory Consiglio, Viggle Inc.'s president and chief operating officer, notified the Company that he is resigning from that position effective June 30, 2015, according to a document filed with the Securities and Exchange Commission. The Nominating Committee of the Company's Board of Directors intends to nominate Mr. Consiglio to become a member of the Company's Board of Directors at the Company's next annual stockholders meeting. As previously disclosed by the Company in a Form 8-K filed on June 12, 2015, Sillerman Investment Company IV, LLC., an affiliate of , Robert F.X. Sillerman, the Company's executive chairman and chief executive officer, agreed to provide a Line of Credit to the Company of up to $10,000,000, at which time an advance of $1,000,000 was made. On June 24, 2015, the Company borrowed an additional $2,000,000 so that $3,000,000 is now outstanding. Special Committee Formed The Company disclosed with the SEC that it has formed a special committee of independent directors to review strategic alternatives. Peter Horan, Michael Meyer and Birame Sock, each considered by the Board of Directors to be an independent director, have agreed to serve on that committee. These alternatives could include, among others, possible joint ventures, strategic partnerships, marketing alliances, sale of the Company, or other possible transactions. The Special Committee will evaluate, negotiate and, if the Special Committee so determines in its sole discretion, recommend to the Company's full Board of Directors, any transaction suggested as a result of those negotiations. The Special Committee was formed because Mr. Sillerman and his affiliates are significant stockholders of the Company. Mr. Sillerman has proposed for consideration a transaction involving a purchase of the Wetpaint related assets owned by the Company and he has indicated he may otherwise propose an alternative transaction in which he may have an interest, including, without limitation, an offer to acquire all of shares of the Company that he does not already own or an offer to purchase certain other assets or subsidiaries of the Company. However, the Company said, such expression of interest by Mr. Sillerman in making a proposal to the Company are very preliminary and there can be no assurance that any such proposal to the Company will be made, and Mr. Sillerman has not taken any substantial steps in furtherance thereof, according to a Form 8-K filed with the SEC. About Viggle New York City-based Viggle Inc. is a loyalty marketing company. The Company has developed a loyalty program for television that gives people real rewards for checking into the television shows they are watching on most mobile operating system. Viggle users can redeem their points in the app's rewards catalog for items such as movie tickets, music, or gift cards. Viggle reported a net loss of $68.4 million on $18 million of revenues for the year ended June 30, 2014, compared with a net loss of $91.4 million on $13.9 million of revenues for the year ended June 30, 2013. The Company's balance sheet at March 31, 2015, showed $70.9 million in total assets, $54.6 million in total liabilities, $11.4 million in series C convertible redeemable preferred stock, and stockholders' equity of $4.88 million. BDO USA, LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2014. The independent auditors noted that the Company has suffered recurring losses from operations and at June 30, 2014, has a deficiency in working capital that raises substantial doubt about its ability to continue as a going concern. WAUSAU PAPER: S&P Affirms 'B-' CCR & Revises Outlook to Positive ---------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed both its 'B-' corporate credit rating on Wausau Paper Corp. and its 'B' issue-level rating on the company's secured term loan. The recovery rating on the term loan is '2', indicating S&P's expectation for substantial recovery (70% to 90%; low end of the range) to creditors in the event of payment default. At the same time, S&P revised its rating outlook on the company to positive from stable. S&P's ratings affirmation and outlook revision reflect its expectation that the company's credit measures will continue to improve due to profitability enhancements and growing sales volume. Specifically, S&P forecasts the company's debt to EBITDA to fall closer to 4x by the end of fiscal 2015 and below 4x thereafter. "The positive outlook reflects our expectation that the company will continue to enhance profitability and improve its leverage profile such that adjusted debt to EBITDA falls to the low-4x area for fiscal 2015 and below 4x thereafter," said Standard & Poor's credit analyst Christopher Andrews. An upgrade may occur if the company continues to deliver on its strategic focus to improve profitability and gain market share, causing sales growth and margin improvement that decrease leverage to below 4x over the next 12 to 18 months, a level more consistent with a "significant" financial risk profile. An upgrade would also require the company to continue to maintain an adequate level of liquidity for its operational profile. S&P could stabilize the rating if volume growth or profitability improvements stall and S&P believes that debt to EBITDA will be sustained at more than 4x for the next few years. Although S&P views it as unlikely at this time, it would consider a downgrade if liquidity becomes materially constrained due to losses or diminished availability under its revolving credit facility. [*] Bankruptcy Lawyer Richard Fonfrias Provides Facts on Tax Liens ------------------------------------------------------------------ To help those in financial trouble and provide information on a host of important legal and financial topics including bankruptcy, foreclosure, and tax issues, financial rescue specialist and Chicago bankruptcy attorney Richard G. Fonfrias, J.D., managing partner of the Fonfrias Law Group, LLC, has added another article to his Chicago law practice's website -- www.chicagomoneylawyer.com The article, IRS Tax Liens: What Every Taxpayer Needs to Know, explains in plain language what a tax lien is, how it differs from a tax levy, and what happens when a federal tax lien is placed against a taxpayer's property. "As a financial rescue and bankruptcy lawyer, I can only imagine how difficult it must be for the average person to understand and decipher Federal Tax Law and State Tax Law. Liens are a very complex area of tax law. I wrote the IRS Tax Lien article for my website because I wanted to share some basic information. I hope it will give people a better understanding of what tax liens are and how a lien might affect them," says Mr. Fonfrias. A few points from the IRS Tax Liens article: -- An (IRS) lien is a Federal tax lien (FTL) placed against a property by the IRS. It is like a lien on a car or a mortgage on a home, except it is placed against everything the taxpayer owns, including, furniture, clothing and cash. It can also include future interests and property acquired after the lien has been placed. -- An IRS lien is non-consensual; it is placed on property without permission or consent and is dormant until the taxpayer tries to do something with the property or till the IRS starts court action to foreclose. -- An IRS lien differs from a levy; a levy is when the IRS seizes property, a lien is used to force taxpayers in arrears to pay taxes owing. -- An IRS lien remains on a property until all taxes are paid, or until the statute of limitations makes it legally unenforceable, usually ten years, however, there are several ways the statute can be extended. "The statue of limitations on an IRS lien can be extended by a waiver signed by the taxpayer when submitting an offer in compromise. The IRS can also sue the taxpayer in court to get a judgment that removes the statute of limitations so that the lien remains in force until it's paid. As well, the IRS can seize taxpayer assets, or serve notice of levy on a third party before the collection period expires. Even after the collection statute and the levy expire, the seized property can be sold, or the levy enforced against the third party," explains Mr. Fonfrias. "Through my website article, radio shows, and free seminars, I try providing the information that people need to know so that they can make the right decisions and protect their assets. As a Chicago bankruptcy lawyer, I'm often asked whether an IRS tax lien can be discharged in bankruptcy. It is a complicated issue, and the answer depends on the individual's specific circumstances. I would advise anyone concerned about a possible IRS lien to educate themselves as best they can, and then call a reputable lawyer," adds Mr. Fonfrias. About Fonfrias Law Group Chicago financial rescue expert and bankruptcy lawyer Richard Fonfrias of the Fonfrias Law Group -- http://www.chicagomoneylawyer.com-- has earned a solid reputation helping people with serious money problems. The Fonfrias Law Group is Chicago's experienced financial rescue and bankruptcy team, providing financial legal services that include bankruptcy, tax defense, debt consolidation, foreclosure defense, bad credit repair, debt management, loan and mortgage refinancing advice. Ready to assist consumers and businesses in serious financial trouble, Richard Fonfrias invites your questions about Illinois bankruptcy, foreclosure, credit card debt, loans, tax liens or other financial concerns. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re Neal Mitchell Jones and Amy Lu Jones Bankr. D. Ariz. Case No. 15-07635 Chapter 11 Petition filed June 19, 2015 In re Lockeford Ventures, LLC Bankr. E.D. Cal. Case No. 15-24941 Chapter 11 Petition filed June 19, 2015 See http://bankrupt.com/misc/caeb15-24941.pdf Filed Pro Se In re Round the Clock Repair Service, LLC Bankr. D. Conn. Case No. 15-21086 Chapter 11 Petition filed June 19, 2015 See http://bankrupt.com/misc/ctb15-21086.pdf represented by: Anthony S. Novak, Esq. NOVAK LAW OFFICE, P.C. E-mail: AnthonySNovak@aol.com In re Playcare Kids, Inc. Bankr. M.D. Fla. Case No. 15-06368 Chapter 11 Petition filed June 19, 2015 See http://bankrupt.com/misc/flmb15-06368.pdf represented by: David W. Steen, Esq. DAVID W. STEEN, P.A. E-mail: dwsteen@dsteenpa.com In re Sandra Nadeen Monger Bankr. D. Md. Case No. 15-18735 Chapter 11 Petition filed June 19, 2015 In re Taverna Ouzo Group, Inc. Bankr. D.N.J. Case No. 15-21509 Chapter 11 Petition filed June 19, 2015 See http://bankrupt.com/misc/njb15-21509.pdf represented by: Brian W. Hofmeister, Esq. LAW FIRM OF BRIAN W. HOFMEISTER E-mail: bwh@hofmeisterfirm.com In re Marullo Development Corp Bankr. D.P.R. Case No. 15-04658 Chapter 11 Petition filed June 19, 2015 See http://bankrupt.com/misc/prb15-04658.pdf represented by: Charles Alfred Cuprill, Esq. CHARLES A. CURPILL, PSC LAW OFFICE E-mail: cacuprill@cuprill.com In re Hudson Acquisitions, Inc. Bankr. E.D. Tex. Case No. 15-90157 Chapter 11 Petition filed June 19, 2015 See http://bankrupt.com/misc/txeb15-90157.pdf represented by: William Stephen Shires, Esq. METTAUER SHIRES & ADAMS E-mail: stephen@msalawyers.com In re James Clarence Morris, II Bankr. N.D. Tex. Case No. 15-32555 Chapter 11 Petition filed June 19, 2015 In re Lester Pokorne Bankr. M.D. Fla. Case No. 15-06395 Chapter 11 Petition filed June 21, 2015 In re Demitrius McKaye Anthony and Jasmine Eley Anthony Bankr. D. Md. Case No. 15-18773 Chapter 11 Petition filed June 21, 2015 In re Dennis D Windscheffel Bankr. C.D. Cal. Case No. 15-19933 Chapter 11 Petition filed June 22, 2015 In re Divine Dedication, Inc. Bankr. D. Colo. Case No. 15-16878 Chapter 11 Petition filed June 22, 2015 See http://bankrupt.com/misc/cob15-16878.pdf represented by: Steven T. Mulligan, Esq. JACKSON KELLY PLLC E-mail: smulligan@jacksonkelly.com In re Milanka V. Verdes Bankr. S.D. Fla. Case No. 15-21222 Chapter 11 Petition filed June 22, 2015 In re Kelly Lee Skeesick Bankr. W.D. La. Case No. 15-11101 Chapter 11 Petition filed June 22, 2015 In re Bar-Wala, Inc. Bankr. D.N.J. Case No. 15-21701 Chapter 11 Petition filed June 22, 2015 See http://bankrupt.com/misc/njb15-21701.pdf represented by: Laurent W. Metzler, Esq. METZLER & DESANTIS, LLP E-mail: LWM@metzlerdesantis.com In re Expert Web Services Incorporated Bankr. E.D.N.Y. Case No. 15-72654 Chapter 11 Petition filed June 22, 2015 See http://bankrupt.com/misc/nyeb15-72654.pdf represented by: Richard S. Feinsilver, Esq. E-mail: feinlawny@yahoo.com In re M Realty 1 LLC Bankr. E.D.N.Y. Case No. 15-72689 Chapter 11 Petition filed June 22, 2015 See http://bankrupt.com/misc/nyeb15-72689.pdf filed Pro Se In re Ida Mae Woods Bankr. C.D. Cal. Case No. 15-20029 Chapter 11 Petition filed June 23, 2015 represented by: Michael R Totaro, Esq. TOTARO & SHANAHAN E-mail: tsecfpacer@aol.com In re Farzaneh Nazerian Bankr. S.D. Cal. Case No. 15-04160 Chapter 11 Petition filed June 23, 2015 In re Johnson Family Restarant. LLC Bankr. D. Del. Case No. 15-11343 Chapter 11 Petition filed June 23, 2015 See http://bankrupt.com/misc/deb15-11343.pdf filed Pro Se In re Aracle Foods One, LLC Bankr. M.D. Fla. Case No. 15-06488 Chapter 11 Petition filed June 23, 2015 See http://bankrupt.com/misc/flmb15-06488.pdf represented by: James W Elliott, Esq. MCINTYRE THANASIDES BRINGGOLD ELLIOT, ET AL. E-mail: james@mcintyrefirm.com In re Giuliano Carrafelli Bankr. S.D. Fla. Case No. 15-21322 Chapter 11 Petition filed June 23, 2015 In re Michael P. Baratta Bankr. D. Md. Case No. 15-18855 Chapter 11 Petition filed June 23, 2015 In re Sandra Vera Bankr. D.N.J. Case No. 15-21795 Chapter 11 Petition filed June 23, 2015 In re TJ Realty Company Of Broome County LLC, Bankr. N.D.N.Y. Case No. 15-60943 Chapter 11 Petition filed June 23, 2015 See http://bankrupt.com/misc/nynb15-60943.pdf represented by: Peter Alan Orville, Esq. ORVILLE & MCDONALD LAW, PC E-mail: peteropc@gmail.com In re Donald S Kurilla Bankr. W.D. Pa. Case No. 15-22261 Chapter 11 Petition filed June 23, 2015 In re True Brew Enterprises, LLC Bankr. E.D. Tex. Case No. 15-41129 Chapter 11 Petition filed June 23, 2015 See http://bankrupt.com/misc/txeb15-41129.pdf represented by: Robert T. DeMarco, Esq. DEMARCO-MITCHELL, PLLC E-mail: robert@demarcomitchell.com In re Erick Danilo Portillo Bankr. E.D. Va. Case No. 15-12181 Chapter 11 Petition filed June 23, 2015 In re J L Leasing & Transportation, Inc. Bankr. W.D. Wash. Case No. 15-13813 Chapter 11 Petition filed June 23, 2015 See http://bankrupt.com/misc/wawb15-13813.pdf represented by: Danial D. Pharris, Esq. LASHER HOLZAPFEL SPERRY & EBBERSON PLLC E-mail: pharris@lasher.com In re Dennis Kolodin and Catherine Kolodin Bankr. D. Ariz. Case No. 15-07843 Chapter 11 Petition filed June 24, 2015 In re Jorge Klappenback Bankr. C.D. Cal. Case No. 15-13176 Chapter 11 Petition filed June 24, 2015 In re Alfonso De La Cruz Santos Bankr. C.D. Cal. Case No. 15-20139 Chapter 11 Petition filed June 24, 2015 In re Eurisko Development LLC Bankr. E.D. Cal. Case No. 15-25055 Chapter 11 Petition filed June 24, 2015 See http://bankrupt.com/misc/caeb15-25055.pdf filed Pro Se In re Feed Me Corp Bankr. S.D. Fla. Case No. 15-21399 Chapter 11 Petition filed June 24, 2015 See http://bankrupt.com/misc/flsb15-21399.pdf filed Pro Se In re Arnel Peralta Bankr. D. Md. Case No. 15-18960 Chapter 11 Petition filed June 24, 2015 In re Susan Waller Vogel Bankr. D. Md. Case No. 15-18961 Chapter 11 Petition filed June 24, 2015 In re Walter R. Summerford and Jamie Summerford Bankr. E.D.N.C. Case No. 15-11002 Chapter 11 Petition filed June 24, 2015 In re River Valley Forestry, LLC Bankr. E.D. Ark. Case No. 15-13174 Chapter 11 Petition filed June 26, 2015 See http://bankrupt.com/misc/areb15-13174.pdf represented by: Brian Christopher Wilson, Esq. E-mail: bcwlaw@yahoo.com In re El Tropico LLC Bankr. S.D. Fla. Case No. 15-21592 Chapter 11 Petition filed June 26, 2015 See http://bankrupt.com/misc/flsb15-21592.pdf represented by: Joel M. Aresty, Esq. E-mail: aresty@mac.com In re Murry Benjamin Sturkie and Loralei Suzanne Sturkie Bankr. D. Idaho Case No. 15-00853 Chapter 11 Petition filed June 26, 2015 In re Rudy Properties, LLC Bankr. W.D. Ky. Case No. 15-23104 Chapter 11 Petition filed June 26, 2015 See http://bankrupt.com/misc/kywb15-32104.pdf represented by: Michael W. McClain, Esq. MCCLAIN DEWEES, PLLC E-mail: mmcclain@mcclaindewees.com In re Mario Mendez Bankr. D. Nev. Case No. 15-13697 Chapter 11 Petition filed June 26, 2015 In re MGM Group Holdings LLC Bankr. W.D.N.C Case No. 15-50414 Chapter 11 Petition filed June 26, 2015 See http://bankrupt.com/misc/ncwb15-50414.pdf represented by: Richard S. Wright, Esq. MOON WRIGHT & HOUSTON, PLLC E-mail: rwright@mwhattorneys.com In re Jason Jay Smith Bankr. D. Or. Case No. 15-62179 Chapter 11 Petition filed June 26, 2015 In re Nicklas, LLC Bankr. M.D. Pa. Case No. 15-02742 Chapter 11 Petition filed June 26, 2015 See http://bankrupt.com/misc/pamb15-02742.pdf represented by: Robert E Chernicoff, Esq. CUNNINGHAM AND CHERNICOFF PC E-mail: rec@cclawpc.com In re Urban Transit Solutions, Inc. Bankr. D.P.R. Case No. 15-04814 Chapter 11 Petition filed June 26, 2015 See http://bankrupt.com/misc/prb15-04814.pdf represented by: Luis D Flores Gonzalez, Esq. E-mail: ldfglaw@coqui.net In re Felix R Roque Velazquez Bankr. D.P.R. Case No. 15-04840 Chapter 11 Petition filed June 26, 2015 In re Ralph Washington Pressley, Jr. Bankr. M.D. Fla. Case No. 15-02905 Chapter 11 Petition filed June 28, 2015 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2015. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***