/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/150825.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, August 25, 2015, Vol. 19, No. 237 Headlines 99 CENTS: Bank Debt Trades at 5% Off ALLIANCE ONE: May Issue 560,000 Shares Under Incentive Plan ALLONHILL LLC: Files Ch. 11 Plan Following Sale of Assets AMERICAN APPAREL: Standard General Reports 0.9% Equity Stake AMERICAN EAGLE ENERGY: Panel, Others Object to Proposed Asset Sale AMERICAN LIBERTY: Dismissal of Chapter 11 Case Sought AMERICAN MEDIA: Reports First Quarter Fiscal Year 2016 Results AMSCO STEEL: Section 341 Meeting Scheduled for October 9 ANACOR PHARMACEUTICALS: Petitions Filed to Invalidate Patents ARCH COAL INC: Bank Debt Trades at 43% Off ARMETTA LLC: Files for Chapter 11 Bankruptcy Protection ARRAY BIOPHARMA: May Issue 600,000 Common Shares Under Stock Plan ARRAY BIOPHARMA: Posts $9.4 Million Net Income for Fiscal 2015 ATLANTIC & PACIFIC: Judge Approves Sale of Pharmacy Assets BBB INDUSTRIES: S&P Assigns 'B' Corp. Credit Rating, Outlook Stable BG MEDICINE: Empery Asset Reports 9.5% Equity Stake BOOMERANG SYSTEMS: Delays Q2 Form 10-Q for Review BR ENTERPRISES: Wants Plan Exclusivity Period Extended to Nov. 25 BRAND ENERGY: Bank Debt Trades at 4% Off CAESARS ENT: Enters Into Bank Restructuring Support Agreement CAESARS ENTERTAINMENT INC: 2017 Bank Debt Trades at 14% Off CAESARS ENTERTAINMENT INC: 2020 Bank Debt Trades at 5% Off CAESARS ENTERTAINMENT: General Counsel Gets $200K Retention Bonus CAESARS ENTERTAINMENT: Plan for Unit Has Top Lender Support CAESARS ENTERTAINMENT: Pushes Ch. 11 Plan Ahead with Lender Support CANCER GENETICS: Finalizes APA with Response Genetics CATASYS INC: Reports Second Quarter 2015 Financial Results CLIFFS NATURAL: May Issue 10 Million Shares Under 2015 Stock Plan COATES INTERNATIONAL: Signs Conv. Note Facility with Investor CONTINENTAL BUILDING: Moody's Raises CFR to B1, Outlook Positive CORINTHIAN COLLEGES: ED Wants Investigation Deadline Extended CORINTHIAN COLLEGES: Panel Investigation Termination Date Extended DOMARK INTERNATIONAL: Announces Change of Control DOMARK INTERNATIONAL: Terminates Form S-8 Prospectus DUNE ENERGY: Sept. 17 Hearing on Plan and Disclosure Statement ENERGY FUTURE: Dec. 14 Asbestos Claims Bar Date Set ERF WIRELESS: Accepts Resignation of Interim CFO ESTERLINA VINEYARDS: Section 341 Meeting Set for Sept. 18 FILMED ENTERTAINMENT: Gets Court Approval to Hire Prime Clerk FILMED ENTERTAINMENT: Has Until Sept. 8 to File Schedules FILMED ENTERTAINMENT: Obtains Court Order Enforcing Automatic Stay FINANCIAL HOLDINGS: Gets Final Approval to Obtain $70K Loan FLOATEL INTERNATIONAL: Bank Debt Trades at 25% Off FORTESCUE METALS: Bank Debt Trades at 18% Off FRAC TECH: Bank Debt Trades at 33% Off FRANK NAZAR: Shuts Down Gino's Surf Banquet Hall & Luna Kai Bar FRESH PRODUCE: Has Until August 24 to Decide on 7 Leases FRONTIER COMMUNICATIONS: Moody's Rates Sr. Secured Term Loan Ba2 GELTECH SOLUTIONS: Issues $200,000 Convertible Note to Mr. Reger GENERAL STEEL: Posts $1 Billion Net Loss for Second Quarter GENIUS BRANDS: Files Preliminary Form S-1 Prospectus with SEC GLYECO INC: Elects Varengo's Charles Trapp as Director GLYECO INC: Reports Fiscal Second Quarter Financial Results GT ADVANCED: Aristeia, Latigo, New Generation Among DIP Lenders GT ADVANCED: Shareholders Fail to Show Panel Necessary, UST Says GUIDED THERAPEUTICS: Advances LuViva PMA Application with FDA GUIDED THERAPEUTICS: Submits Plan to Boost Cancer Screening Rates GULFMARK OFFSHORE: S&P Cuts Corp. Credit Rating to 'B-' HILLVIEW, KY: S&P Lowers Rating on GO Debt to 'B-' IMH FINANCIAL: Reports Second Quarter 2015 Results INSITE VISION: Considers Unsolicited Purchase Proposal Superior IRONSTONE GROUP: Incurs $66,000 Net Loss in Second Quarter ISTAR FINANCIAL: Changes Name to "iStar Inc." ITUS CORPORATION: Incurs $1.6 Million Net Loss in June 30 Qtr. J. CREW: Bank Debt Trades at 18% Off KATANGIAN INVESTMENT: Voluntary Chapter 11 Case Summary KB HOME: Fitch Affirms 'B+' IDR & Sr. Unsecured Rating KU6 MEDIA: Fails to Comply with Nasdaq's Minimum Bid Price Rule LIME ENERGY: May Issue 178,575 Common Shares Under Incentive Plan LUCA INTERNATIONAL: Gets Approval to Hire CRO, Financial Adviser M. JULIA HOOK: 10th Circ. Affirms Dismissal of Tax Suit MCCLATCHY CO: Announces Stock Repurchase Program MEDICURE INC: Elliott International Reports 10.4% Equity Stake MIDSTATES PETROLEUM: Fails to Comply with NYSE Listing Standard N&H INVESTMENTS: 2 Suits on Hold Pending Dismissal Bid Ruling NET TALK.COM: Amends Second Quarterly Form 10-Q NET TALK.COM: Incurs $1 Million Net Loss in Second Quarter NIRVANA INC: Harris Beach Files Rule 2019 Statement OPTIM ENERGY: Proposes Sept. 9 Disclosure Statement Hearing OXYSURE SYSTEMS: Incurs $1.2 Million Net Loss in Second Quarter PATRIOT COAL: Tavenner & Beran Okayed as Committee's Local Counsel PEABODY ENERGY: Bank Debt Trades at 24% Off PHOTOMEDEX INC: No!No! Hair Breaks Sales Record in UK PRESCOTT VALLEY EVENTS: Section 341 Meeting Set for Sept. 22 PRESSURE BIOSCIENCES: Transfers 1MM Restricted Shares to Everest QUALITY DISTRIBUTION: Trustee Releases Liens Securing Notes RELATIVITY FASHION: Has Interim OK to Pay Prepetition Residuals RETROPHIN INC: May Issue 4.2 Million Shares Under Incentive Plan SAINT MICHAEL'S MEDICAL: Gets Court Approval to Hire Prime Clerk SAINT MICHAEL'S MEDICAL: Judge Orders Appointment of Ombudsman SALADWORKS LLC: Plan Filing Exclusivity Extended to Sept. 17 SANDY CREEK: Bank Debt Trades at 2% Off SANDY CREEK: Moody's Affirms Ba3 Sr. Sec. Rating, Outlook Negative SANTA CLARA CITY: Moody's Affirms Ba1 Rating on 2006 Revenue Bonds SEADRILL LTD: Bank Debt Trades at 27% Off SEITEL INC: S&P Cuts Corp. Credit Rating to 'B-', Outlook Negative SERVICEMASTER CO: S&P Raises Corp. Credit Rating to 'B+' SIDEWINDER DRILLING: Moody's Lowers CFR to Caa3, Outlook Negative SIGNAL INT'L: EJC, Bayard File Rule 2019 Statement SIGNAL INT'L: Gets Approval to Borrow $4-Mil. from Pension Funds SIGNAL INT'L: Latham, Bayard File Rule 2019 Statement SIGNAL INT'L: Manatt, Bayard File Rule 2019 Statement SIGNAL INT'L: Wants Authority to Assume Plan Support Agreement SKYMALL LLC: Obtains Court Confirmation of Liquidation Plan STEARNS HOLDINGS: S&P Puts 'B+' Issuer Credit Rating on Watch Neg TECHNOLOGY GROUP: "Jegen" Suit Remanded to Bankruptcy Court TERVITA CORP: Bank Debt Trades at 11% Off THORNTON & CO: Section 341 Meeting Scheduled for Sept. 4 TN-K ENERGY: Incurs $77,000 Net Loss in March 31 Quarter TRANS-LUX CORP: Amends Preliminary Prospectus with SEC TRANSGENOMIC INC: Files Amendment 2 to 2014 Annual Report TRONOX INC: Bank Debt Trades at 4% Off VERSO PAPER: Extends Exchange Offers Expiration Date VERSO PAPER: Facility Closure to Strain Liquidity, Moody's Says VERTICAL COMPUTER: Posts $961,000 Net Loss for Second Quarter VIRTUAL PIGGY: Issues $100,100 Promissory Note VISANT HOLDING: S&P Revises Outlook to Neg. & Affirms 'B' CCR VISUALANT INC: Issues 22,980 Common Shares VUZIX CORP: Provides Business Update and Q2 2015 Operating Results WESCO AIRCRAFT: S&P Lowers Corp Credit Rating to B+, Outlook Stable WEST COAST: Wants Authority to Use Cash Until August 31 WPCS INTERNATIONAL: Completes Sale of Interest in China Operations ZUCKER GOLDBERG: Gets Approval to Hire BMC as Balloting Agent ZUCKER GOLDBERG: May Make Payments to Corelogic [^] Large Companies with Insolvent Balance Sheet ********* 99 CENTS: Bank Debt Trades at 5% Off ------------------------------------ Participations in a syndicated loan under which 99 Cents Only Store is a borrower traded in the secondary market at 94.94 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents a decrease of 0.42 percentage points from the previous week, The Journal relates. 99 Cents pays 350 basis points above LIBOR to borrow under the facility. The bank loan matures on January 13, 2019. Moody's rates the loan 'B2' and Standard & Poor's gave a 'B' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. ALLIANCE ONE: May Issue 560,000 Shares Under Incentive Plan ----------------------------------------------------------- Alliance One International, Inc., filed with the Securities and Exchange Commission a Form S-8 registration statement for the purpose of registering 560,000 additional shares of common stock of the Company issuable under its Amended and Restated 2007 Incentive Plan. The proposed maximum aggregate offering price is $11.8 million. A copy of the prospectus is available for free at: http://is.gd/GilBnD About Alliance One Alliance One International is a leading global independent leaf merchant. Visit the Company's Web site at http://www.aointl.com/ Alliance One reported a net loss of $15.6 million on $2.10 billion of sales and other operating revenues for the year ended March 31, 2015, compared to a net loss of $87 million on $2.3 billion of sales and other operating revenues for the year ended March 31, 2014. As of June 30, 2015, the Company had $1.8 billion in total assets, $1.6 billion in total liabilities and $217.6 million in total equity. * * * As reported by the TCR on Feb. 12, 2015, Moody's Investor Service downgraded the Corporate Family Rating of Alliance One International, Inc. (AOI) to Caa1 from B3. The downgrade of AOI's CFR to Caa1 reflects Moody's expectation that credit metrics will remain weak over the next 12 - 18 months. The TCR reported on April 13, 2015, that Standard & Poor's Ratings Services lowered its corporate credit rating on Morrisville, N.C.-based Alliance One International Inc. to 'CCC+' from 'B-'. ALLONHILL LLC: Files Ch. 11 Plan Following Sale of Assets --------------------------------------------------------- Allonhill, LLC, filed with the U.S. Bankruptcy Court for the District of Delaware a Chapter 11 Plan of Reorganization and accompanying disclosure statement following the sale of substantially all of its assets to Stewart Lender Services, Inc. The Plan contemplates reorganization of the Debtor as the Reorganized Debtor, the cancellation of existing Class A membership interests in the Debtor and reissuance of common interests by the Reorganized Debtor to the Debtor's Class A members. Class C membership interests in the Debtor will be cancelled and the holders thereof are entitled under the Plan to payment of the value of their interests in pro rata proportion, subject to the priorities provided for in the Plan; more specifically, after satisfaction in full of the Claims of Creditors of all prior Classes and subject to and in accordance with the Debtor's Operating Agreement. The funds necessary for execution of the Plan will be provided by the liquidation of the remaining assets of the Debtor, including the successful prosecution of any Causes of Action, which will be preserved by the Plan and held, investigated and prosecuted by the Reorganized Debtor, by the release of the SLS Escrow and by Contributions to be made by the Debtor's Principals. A hearing will be held on Sept. 24, 2015, at 3:00 p.m., prevailing Eastern Time, to consider entry of an order finding that the Disclosure Statement contains "adequate information" within the meaning contained in Section 1125 of the Bankruptcy Code. Responses or objections to the approval of the Disclosure Statement must be filed on or before Sept. 17. If no objection or other response to the Disclosure Statement is timely filed, the Court may enter an order approving the Disclosure Statement without further notice or a hearing. A full-text copy of the Disclosure Statement is available at http://bankrupt.com/misc/ALLONHILLds0817.pdf About Allonhill LLC Allonhill LLC, a professional services firm based in Denver, Colorado, that previously provided loan due diligence and credit risk management services for institutions that invest in, sell, securitize or service mortgage loans, sought protection under Chapter 11 of the Bankruptcy Code on March 26, 2014. The case is In re Allonhill, LLC, Case No. 14-bk-10663 (Bankr. D. Del.). The Debtor's General Counsel is HOGAN LOVELLS US LLP. The Debtor's Local Counsel is Neil B. Glassman, Esq., Justin R. Alberto, Esq., and Evan T. Miller, Esq., at BAYARD, P.A., in Wilmington, Delaware. Upshot Services LLC serves as the Debtor's Claims and Noticing Agent. The Debtor disclosed $19,205,062 in assets and $32,918,294 in liabilities as of the Chapter 11 filing. Roberta A. DeAngelis, U.S. Trustee for Region 3, notified the Bankruptcy Court that she was unable to appoint an official committee of unsecured creditors in the case of Allonhill, LLC. The U.S. Trustee said there were insufficient response to the communication/contact for service on the committee. AMERICAN APPAREL: Standard General Reports 0.9% Equity Stake ------------------------------------------------------------ In an amended Schedule 13D filed with the Securities and Exchange Commission, Standard General L.P. that as of Aug. 17, 2015, it beneficially owned 1,540,000 shares of common stock of American Apparel, Inc., which represents 0.9 percent of the shares outstanding. On Aug. 17, 2015, Capital One Business Credit Corp. assigned its rights and obligations as a lender under the Company's $50 million asset-backed credit facility with Capital One to a syndicate of lenders that included certain of the Company's existing creditors, including Reporting Persons. Wilmington Trust, National Association also replaced Capital One as administrative agent. Additionally, on Aug. 17, 2015, the Capital One Credit Facility was amended by the Company, the new syndicate of lenders (including Reporting Persons) and Wilmington Trust. The Company, on Aug. 17, 2015, entered into Amendment No. 3 to the Credit Agreement, dated as of May 22, 2013, among the Company and the Master Fund as lender. Amendment No. 3 amends certain provisions of the Standard General Loan Agreement to permit transactions contemplated by the Wilmington Trust Credit Facility and provides for the payment of consent fees and certain releases and equity registration rights in favor of the Reporting Persons. A full-text copy of the regulatory filing is available at: http://is.gd/6YXKIK About American Apparel American Apparel is a vertically-integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. As of Sept. 30, 2014, American Apparel had approximately 10,000 employees and operated 245 retail stores in 20 countries including the United States and Canada. American Apparel also operates a global e-commerce site that serves over 60 countries worldwide at http://www.americanapparel.com. In addition, American Apparel operates a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. Amid liquidity problems and declining sales, American Apparel in early 2011 reportedly tapped law firm Skadden, Arps, Slate, Meagher & Flom and investment bank Rothschild Inc. for advice on a restructuring. In April 2011, American Apparel said it raised $14.9 million in rescue financing from a group of investors led by Canadian financier Michael Serruya and private equity firm Delavaco Capital Corp., allowing the casual clothing retailer to meet obligations to its lenders for the time being. Under the deal, the investors were buying 15.8 million shares of common stock at 90 cents apiece. The deal allows the investors to purchase additional 27.4 million shares at the same price. American Apparel reported a net loss of $68.8 million in 2014, a net loss of $106 million in 2013 and a net loss of $37.3 million in 2012. As of March 31, 2015, the Company had $271 million in total assets, $416 million in total liabilities and a $144 million total stockholders' deficit. * * * Troubled Company Reporter , Aug 14, 2015 ( Source: TCR) Moody's Investors Service downgraded ratings of American Apparel, Inc., including the Corporate Family rating, which was downgraded to Caa3 from Caa2, and left the ratings on review for further downgrade. The TCR reported on Nov. 21, 2013, that Moody's Investors Service downgraded American Apparel Inc.'s corporate family rating to Caa2. The clothing retailer's probability of default was also lowered one level and the outlook is negative. As reported by the TCR on Sept. 2, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Los Angeles-based American Apparel Inc. to 'CCC-' from 'CCC'. The outlook is negative. AMERICAN EAGLE ENERGY: Panel, Others Object to Proposed Asset Sale ------------------------------------------------------------------ BankruptcyData reports that multiple parties -- including the Office of Natural Resources Revenue, Miller Oil Company, Halliburton Energy Services, Jacam Chemical, the official committee of unsecured creditors, Murex Petroleum Corporation, Crescent Point Energy U.S. and Power Crude Transport -- filed with the U.S. Bankruptcy Court separate objections to American Eagle Energy's motion for entry of order approving the sale of assets and granting related relief. According to the report, the official committee of unsecured creditors asserts, "It is clear that this case was filed in order to enable the Noteholders to use this Court as a vehicle to conduct a private foreclose sale on the Debtors' assets that would otherwise have to be accomplished through compliance with the technical and due process requirements of a North Dakota judicial foreclosure Proceeding, subject to the attendant delay and uncertainty of all contested litigation. . . . In other words, the Noteholders must provide some meaningful premium in order to use the bankruptcy court as a substitute mechanism to obtain the Debtors' assets compared to the requirements that would otherwise be afforded to creditors under state law in order to accomplish the same objective. . . . The Noteholder Response is clearly a slap in the face to the Committee and to this Court. The Noteholder Response contemplates only that unsecured creditors sue themselves for preferences and divide the net proceeds (in which proceeds the Noteholders do not have a security interest) that will mostly inure to the benefit of the Noteholders under Ad Hoc Group's proposed sharing arrangement. . . . The fact that the Noteholders have belatedly realized the bid chilling effect of their unlimited credit bid rights at the end stage of the sale process is too little too late in terms of attracting bidders to invest the necessary due diligence to prepare and submit a competing bid by the September 2, 2015 bid deadline. Moreover, the Noteholders still refuse to cap their credit bid and retain the ability to increase their now-reduced opening bid up to the full amount of the Noteholders' alleged claim. This will likely have the same chilling effects on the Debtors' flawed sale process in terms of attracting competing offers to ascertain the fair market value of the Debtors' assets, and only serves to increase the amount of any deficiency claim." As reported by the Troubled Company Reporter on Aug. 19, 2015, the Bankruptcy Court in Colorado has authorized American Eagle Energy to enter into a stalking horse purchase agreement with an ad hoc group of bondholders, approved bidding and auction procedures in connection with the sale of the assets, and established a sale hearing date, which is currently set for Sept. 10, 2015. In July 2015, less than three months after the Petition Date, American Eagle Energy agreed to terms with four bondholders, who collectively own or manage in excess of 50% of the par value of the Bonds to enter into an agreement related to the proposed sale of substantially all of the Company's oil and gas properties and related assets for $70 million. On July 23, 2015, the Bankruptcy Court approved the order authorizing the entry into the Stalking Horse Purchase Agreement, approved the bidding and auction procedures in connection with the sale of the assets, and established the sale hearing date. Upon the entry by the Bankruptcy Court of such order, the parties contemporaneously entered into the Stalking Horse Purchase Agreement. "With the assistance of our financial advisors, we will solicit additional qualified bids for these assets, consistent with the bidding and auction procedures approved by the Bankruptcy Court. A qualified bid is one that is not less than $250,000 in excess of the $70 million stalking horse bid. The deadline for submitting qualifying bids is September 2, 2015," the Company said. About American Eagle Energy Littleton, Colorado-based American Eagle Energy Corporation is engaged in the acquisition, exploration and development of oil and gas properties. The Company is primarily focused on extracting proved oil reserves from those properties. American Eagle Energy Corporation and its wholly-owned subsidiary, AMZG, Inc., filed on May 8, 2015, voluntary petitions (Bankr. D. Colo., Case No. 15-15073). The case is assigned to Judge Howard R. Tallman. On May 13, 2015, Judge Tallman granted the Debtors' request for joint administration. On May 11, 2015, the Company received notice from the NYSE MKT LLC that the NYSE MKT had suspended the Company's common stock from trading immediately and determined to commence proceedings to delist the Company's common stock. Prior to being delisted, the Company's common stock traded on the NYSE MKT under the trading symbol "AMZG." On May 12, the Company's common stock commenced trading over-the-counter on the OTC Markets Group Inc.'s OTC Pink(R) marketplace, under the trading symbol "AMZGQ". The Debtors are represented by Elizabeth A. Green, Esq., at Baker & Hostetler LLP, in Orlando, Florida. The U.S. Trustee has appointed an official committee of unsecured creditors. AMERICAN LIBERTY: Dismissal of Chapter 11 Case Sought ----------------------------------------------------- One of the Wynne brothers who formed the general partner of American Liberty Oil Company LP asked a federal judge to dismiss the company's Chapter 11 case. In his motion, James Wynne asked U.S. Bankruptcy Judge Stacey Jernigan to dismiss the case, saying it was filed by an "alleged manager" of American Liberty Oil Company, LLC who did not have authority to file the case. Mr. Wynne also said the company "has no likelihood of rehabilitation because the chief goal of the bankruptcy is to incur debt." "The filing of the current bankruptcy was done in bad faith in attempt by debtor to obtain an alternative forum for pending state court lawsuits and proceedings to debtor's benefit," Mr. Wynne further said in the court filing. About American Liberty Kaufman, Texas-based American Liberty Oil Company, LP filed a Chapter 11 bankruptcy petition (Bankr. N.D. Tex. Case No. 15-32019) on May 6, 2015. The petition was signed by Wreno S. Wynne, Jr., as managing partner of ALOC LLC. The Hon. Stacey G. Jernigan presides over the case. Quilling, Selander, Lownds, Winslett & Moser, P.C., serves as the Debtor's counsel. AMERICAN MEDIA: Reports First Quarter Fiscal Year 2016 Results -------------------------------------------------------------- American Media, Inc., disclosed that: * Company posted revenues of $56.1 million and Adjusted EBITDA of $17.2 million for the first quarter of FY 2016. * True cash EBITDA is $15.2 million for the first quarter of FY 2016, which is $5.1 million, or 50%, higher than the prior year period. * Investment highlights are no future digital investments required after spending $48 million over the last 7 years. * Newsstand unit sales have stabilized for the celebrity market over the last 48 consecutive weeks. * Chairman, President and CEO David Pecker reconfirmed Full Fiscal Year 2016 guidance of $230 to $235 million of Revenue and $80 to $85 million of Adjusted EBITDA resulting in $25 to $30 million of free cash flow. Mr. Pecker said, "Our first quarter results show how successful we have been in extending our brands and content across multiple platforms. Our six point strategy for digital growth, the stable sales our celebrity titles are experiencing on the newsstand and the outstanding performance of Men's Fitness all provide a solid foundation for AMI's future." Traffic growth has been the driving force behind AMI's digital advertising revenue of $3.4 million for the three months ended June 30, 2015, which is up $1.4 million, or 70%, over the prior year period. In July 2015, AMI generated 50 million unique visitors and 348 million page views across its 14 sites and their platforms, up 43% and 30%, respectively, over the prior year. Men's Fitness continued its strong performance through the first quarter of fiscal Year 2016, with advertising revenue of $4 million, up $600,000, or 17%, over the prior year period. Star and OK! generated $5.0 million of print ad revenue, which was up 6% over the prior year. RadarOnline's strong operational performance continued during the quarter ended June 30, 2015, with digital advertising revenue of $2.0 million, up 4% versus the prior year period. AMI fully implemented its $22 million Management Action Plan for Fiscal Year 2016. Over the previous seven years, AMI has reduced its total expenses by $180 million. About American Media Based in New York, American Media, Inc., publishes celebrity journalism and health and fitness magazines in the U.S. These include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health, and The National Enquirer. In addition to print properties, AMI manages 14 different Web sites. The company also owns Distribution Services, Inc., an in-store magazine merchandising company. American Media, Inc., and 15 units, including American Media Operations, Inc., filed for Chapter 11 protection in Manhattan (Bankr. S.D.N.Y. Case No. 10-16140) on Nov. 17, 2010, with a prepackaged plan. The Debtors emerged from Chapter 11 reorganization in December 2010, handing ownership to former bondholders. The new owners include hedge funds Avenue Capital Group and Angelo Gordon & Co. American Media reported a net loss of $54.3 million on $344 million of total operating revenues for the fiscal year ended March 31, 2014, following a net loss of $56.2 million on $349 million of total operating revenues for the year ended March 31, 2013. * * * As reported in the Jan. 9, 2015 edition of the TCR, American Media carries a 'Caa1' corporate family rating from Moody's. American Media's Caa1 CFR reflects the company's elevated total debt to EBITDA leverage that Moody's expect will rise to the 8-9x range (Moody's adjusted) over the rating horizon from about 7x as of Sept. 30, 2014 as a result of lower EBITDA performance that stems from a reduction in circulation sales associated with the bankruptcy filing of AMI's second largest publications wholesaler, Source Interlink Distribution ("Source"). The rating also captures AMI's weak liquidity profile and deteriorating EBITDA cushion under the revolver's first-lien leverage covenant resulting from the lower circulation revenue aggravated by the Source bankruptcy, which required temporary covenant relief through an amendment to the credit facility. As reported in the Jan. 14, 2015 edition of the TCR, Standard & Poor's Ratings Services said that its ratings on U.S. magazine publisher American Media Inc., including the 'CCC' corporate credit rating, are not affected by the company's announcement that it is exchanging $32 million of its first-lien 11.5% notes due 2017 for $39 million in new second-lien 7% notes due 2020. The negative rating outlook remains unchanged. AMSCO STEEL: Section 341 Meeting Scheduled for October 9 -------------------------------------------------------- A meeting of creditors in the bankruptcy case of AMSCO Steel Company, LLC will be held on Oct. 9, 2015, at 9:30 a.m. at FTW 341 Rm 7A24. Proofs of claim are due by Jan. 7, 2016. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. AMSCO Steel Company, LLC and Pyndus Steel & Aluminum Co., Inc. filed Chapter 11 petitions (Bankr. N.D. Tex. Case Nos. 15-43239 and 15-43240, respectively) on Aug. 10, 2015. The petitions were signed by Stephen Sikes as member. The Debtors estimated assets and debts of $10 million to $50 million. Forshey & Prostok, LLP has been tapped as the Debtors' counsel. Hon. Russell F. Nelms presides over the cases. ANACOR PHARMACEUTICALS: Petitions Filed to Invalidate Patents ------------------------------------------------------------- A hedge fund, acting with affiliated parties and proceeding under the name of the Coalition for Affordable Drugs X LLC, filed petitions with the Patent Trial and Appeal Board of the U.S. Patent and Trademark Office seeking to institute inter partes review proceedings to invalidate Anacor Pharmaceuticals, Inc.'s Orange Book-listed U.S. Patents Nos. 7,582,621 and 7,767,657 covering KERYDIN (tavaborole) topical solution, 5%. If one or more of CFAD's IPR petitions are accepted by the PTAB, the Company will have three months to file its preliminary responses. Upon receipt of the Company's preliminary responses, the PTAB will have another three months in which to institute or deny the IPR proceedings. If the IPR proceedings are instituted by the PTAB, CFAD will have an opportunity to challenge the validity of some or all of the claims in the Kerydin Orange Book Patents before the PTAB. The Company is currently reviewing CFAD's IPR petitions and intends to vigorously oppose the institution of the IPR proceedings and, if the IPR proceedings are instituted, to vigorously defend the Kerydin Orange Book Patents. 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 June 30, 2015, the Company had $195.7 million in total assets, $125.5 million in total liabilities, $4.9 million in redeemable common stock and $65.2 million in total stockholders' equity. ARCH COAL INC: Bank Debt Trades at 43% Off ------------------------------------------ Participations in a syndicated loan under which Arch Coal Inc. is a borrower traded in the secondary market at 57.46 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents an increase of 1.52 percentage points from the previous week, The Journal relates. Arch Coal Inc. pays 500 basis points above LIBOR to borrow under the facility. The bank loan matures on May 17, 2018. Moody's rates the loan 'Caa1' and Standard & Poor's gave a 'B-' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. ARMETTA LLC: Files for Chapter 11 Bankruptcy Protection ------------------------------------------------------- Armetta, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Conn. Case No. 15-31399) on Aug. 19, 2015, estimating its assets at up to $50,000 and its debts at between $1 million and $10 million. The petition was signed by Antonia Armetta, managing member. Ambar Espinoza, writing for RIPR.org, reports that the Company has shut down. "Earlier this week the property owner sought to place Armetta in receivership in state court, and a temporary receiver was appointed. We also recently learned that Armetta filed a Chapter 11 petition in U.S. bankruptcy in Connecticut," RIPR.org quoted Interim Westerly Town Manager Amy Grzybowski as saying. According to the report, Ms. Grzybowski said that the bankruptcy filing may have an impact on the state receivership. RIPR.org relates that the town wants to ensure the property owner continues to meet a consent agreement that includes measures for controlling dust from migrating off the property. The report recalls that the Company agreed to settle a fine in 2014 for violating federal environmental standards. Judge Julie A. Manning presides over the case. Ronald Chorches, Esq., at the Law Offices of Ronald I. Chorches, LLC, serves as the Company's bankruptcy counsel. About Armetta Armetta, LLC -- fdba Copar Industries, LLC, Copar Quarries of Westerly, LLC, Copar Trucking, LLC, Copar Quarries of RI, LLC, Copar Quarries of Lisbon, LLC -- is headquartered in Middletown, Connecticut. It operates a quarry in Westerly. ARRAY BIOPHARMA: May Issue 600,000 Common Shares Under Stock Plan ----------------------------------------------------------------- Array BioPharma Inc. filed with the Securities and Exchange Commission a Form S-8 registration statement to register 600,000 shares of common stock issuable under the Company's Employee Stock Purchase Plan for a proposed maximum aggregate offering price of $3.25. A copy of the prospectus is available for free at: http://is.gd/ziiJ0J About Array Biopharma Boulder, Colo.-based Array BioPharma Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small-molecule drugs to treat patients afflicted with cancer and inflammatory diseases. Array has four core proprietary clinical programs: ARRY-614 for myelodysplastic syndromes, ARRY-520 for multiple myeloma, ARRY-797 for pain and ARRY-502 for asthma. In addition, Array has 10 partner-funded clinical programs including two MEK inhibitors in Phase 2: selumetinib with AstraZeneca and MEK162 with Novartis. As of June 30, 2015, the Company had $198.2 million in total assets, $155.55 million in total liabilities and $42.65 million in total stockholders' equity. ARRAY BIOPHARMA: Posts $9.4 Million Net Income for Fiscal 2015 -------------------------------------------------------------- Array BioPharma Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing net income of $9.4 million on $51.9 million of total revenue for the year ended June 30, 2015, compared to a net loss of $85.25 million on $42.07 million of total revenue for the year ended June 30, 2014. As of June 30, 2015, the Company had $198.2 million in total assets, $155.55 million in total liabilities and $42.65 million in total stockholders' equity. A full-text copy of the Form 10-K is available for free at: http://is.gd/Cx8xFx About Array Biopharma Boulder, Colo.-based Array BioPharma Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small-molecule drugs to treat patients afflicted with cancer and inflammatory diseases. Array has four core proprietary clinical programs: ARRY-614 for myelodysplastic syndromes, ARRY-520 for multiple myeloma, ARRY-797 for pain and ARRY-502 for asthma. In addition, Array has 10 partner-funded clinical programs including two MEK inhibitors in Phase 2: selumetinib with AstraZeneca and MEK162 with Novartis. ATLANTIC & PACIFIC: Judge Approves Sale of Pharmacy Assets ---------------------------------------------------------- Joseph Checkler, writing for Dow Jones' Daily Bankruptcy Review, reported that Judge Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York authorized Great Atlantic & Pacific Tea Co. to sell pharmacy assets at 12 of its in-store pharmacies to Rite Aid Corp. for $8.1 million. According to the report, Judge Drain's approval means the closings of the pharmacies will begin Aug. 25 and last through the beginning weeks of September. About Atlantic & Pacific Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea Company, Inc., and its affiliates are one of the nation's oldest leading supermarket and food retailers, operating approximately 300 supermarkets, beer, wine, and liquor stores, combination food and drug stores, and limited assortment food stores across six Northeastern states. The primary retail operations consist of supermarkets operated under a variety of well known trade names, or "banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food Basics, The Food Emporium, Best Cellars, and A&P Liquors. The Company employs approximately 28,500 employees, over 90% of whom are members of one of twelve local unions whose members are employed by the Debtors under the authority of 35 separate collective bargaining agreements. Then with 429 stores, A&P and its affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010, and in 2012 emerged from Chapter 11 bankruptcy as a privately held company with 320 supermarkets. On July 19, 2015, with 300 stores, A&P and 20 affiliated debtors each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching deals for the going concern sales of 120 stores. The Debtors are seeking joint administration under Case No. 15-23007. As of Feb. 28, 2015, the Debtors reported total assets of $1.6 billion and liabilities of $2.3 billion. The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore Group L.L.C., as investment banker, FTI Consulting, Inc., as financial advisor, Hilco Real Estate, LLC, as real estate advisor, and Prime Clerk LLC, as claims and noticing agent. The U.S. Trustee for Region 2 appointed seven creditors of The Great Atlantic & Pacific Tea Co. to serve on the official committee of unsecured creditors. BBB INDUSTRIES: S&P Assigns 'B' Corp. Credit Rating, Outlook Stable ------------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Alabama-based BBB Industries US Holdings Inc. The outlook is stable. At the same time, S&P withdrew its 'B' corporate credit rating on BBB Industries Lux Holdings S.ar.l., which is the guarantor of BBB Industries US Holdings Inc.'s debt. Additionally, S&P withdrew all of its ratings on BBB Industries LLC, including S&P's 'B' corporate credit rating, which was acquired by Pamplona Capital Management LLP in November 2014. "The rating reflects our view of the company's highly leveraged capital structure and its relatively small position in the intensely competitive automotive aftermarket," said Standard & Poor's credit analyst Naomi Dsouza. BBB Industries' business is mostly concentrated in North America, and the company has been working to improve its customer diversity. However, its top three customers (primarily warehouse distributors, independent retailers, and big box retailers) contributed over 50% of its total revenues in 2014. The company has taken steps to diversify its revenue stream away from rotating electrical products by entering the steering and caliper markets. Still, BBB Industries currently relies on its rotating electrical (primarily starters and alternators) segment for over 50% of its sales. S&P will continue to evaluate the company's ability to expand into adjacent markets going forward. The stable outlook reflects S&P's expectation that the company's debt-to-EBITDA metric will remain greater than 5x and that its free operating cash flow generation will at least break even over the next 12 months. S&P could lower its ratings on BBB Industries if the company's EBITDA declines by more than S&P expects in 2015 -- because of competitive or operational difficulties -- causing the company's leverage to increase substantially above 5x, or if its free operating cash flow remains negative on a sustained basis. S&P could raise its ratings on BBB Industries if the company's leverage falls below 5x and its free operating cash flow-to-debt ratio remains above 5% on a sustained basis. However, S&P would not likely raise its corporate credit rating on the company above 'B+', given its private-equity ownership and the potential that it could be recapitalized or eventually sold to another financial sponsor. BG MEDICINE: Empery Asset Reports 9.5% Equity Stake --------------------------------------------------- In a Schedule 13G filed with the Securities and Exchange Commission, Empery Asset Management, LP, Ryan M. Lane and Martin D. Hoe disclosed that as of Aug. 13, 2015, they beneficially owned: * 1,050,000 shares of common stock; * 184,346 shares of common stock issuable upon exercise of Prefunded Warrants; and * 617,173 shares of Common Stock issuable upon exercise of Warrants of BG Medicine, inc., representing 9.5 percent of the shares outstanding. Pursuant to the terms of the Reported Warrants, the Reporting Persons cannot exercise the Reported Warrants to the extent the Reporting Persons would beneficially own, after any such exercise, more than 4.99% of the outstanding shares of Common Stock, and the percentage for each Reporting Person gives effect to the Blockers. Consequently, the Reporting Persons were not able to exercise all of the Reported Warrants due to the Blockers. A copy of the regulatory filing is available for free at: http://is.gd/yYJffV About BG Medicine Waltham, Mass.-based BG Medicine is a diagnostics company focused on the development and commercialization of novel cardiovascular diagnostic tests to address significant unmet medical needs, improve patient outcomes and contain healthcare costs. The Company is currently commercializing two diagnostic tests, the first of which is the BGM Galectin-3 test, a novel assay for measuring galectin-3 levels in blood plasma or serum for use as an aid in assessing the prognosis of patients diagnosed with heart failure. The Company's second diagnostic test is the CardioSCORE test, which is designed to identify individuals at high risk for near-term, significant cardiovascular events, such as heart attack and stroke. BG Medicine reported a net loss of $8.06 million in 2014, a net loss of $15.8 million in 2013 and a net loss of $23.8 million in 2012. Deloitte & Touche LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's recurring losses from operations, recurring cash used in operating activities and accumulated deficit raise substantial doubt about its ability to continue as a going concern. BOOMERANG SYSTEMS: Delays Q2 Form 10-Q for Review ------------------------------------------------- Boomerang Systems, Inc., was unable to file its quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2015, within the prescribed period because of a delay in completing the required review of the financial information for this period as a result of management requiring additional time to compile and verify the data required to be included in the report. The Company expects to file within the extension period. The Company estimates that its results of operations for the fiscal quarter ended June 30, 2015, as reflected in its consolidated statements of operations to be included in its Form 10-Q for the fiscal year ended June 30, 2015, will reflect the following changes: For the three months ended June 30, 2015, the Company expects to report revenues of approximately $1.37 million compared to revenues of approximately $1.50 million for the three months ended June 30, 2014. For the three months ended June 30, 2015, the Registrant expects to report that it incurred a net loss of approximately $4.15 million, compared to a net loss of approximately $4.05 million for the three months year ended June 30, 2014. For the nine months ended June 30, 2015, the Company expects to report revenues and a net loss of approximately $3.72 million and $19.3 million, respectively, compared to revenues and net income of approximately $4.84 million and $1.24 million, respectively, for the nine months ended June 30, 2014. About Boomerang Systems Headquartered in Morristown, New Jersey, Boomerang Systems, Inc. (Pink Sheets: BMER) through its wholly owned subsidiary, Boomerang Utah, is engaged in the design, development, and marketing of automated racking and retrieval systems for automobile parking and automated racking and retrieval of containerized self-storage units. Boomerang Systems reported a net loss of $2.66 million for the fiscal year ended Sept. 30, 2014, a net loss of $11.2 million for the year ended Sept. 30, 2013 and a net loss of $17.4 million for the year ended Sept. 30, 2012. As of March 31, 2015, the Company had $6 million in total assets, $19.5 million in total liabilities, and a $13.5 million total stockholders' deficit. BR ENTERPRISES: Wants Plan Exclusivity Period Extended to Nov. 25 ----------------------------------------------------------------- BR Enterprises asks the United States Bankruptcy Court for Eastern District of California, Sacramento Division, for an extension of its exclusive period to confirm of a plan of reorganization to November 25, 2015. The Debtor explains that its estate is not an insubstantial one, involving the management of the 3,100 acre Ranch in addition to other assets, and partial liquidation thereof. A significant asset -- the $4.2 million receivable (enough to pay all Debtor's estimated liabilities in full) -- is tied up in the Shasta Enterprises bankruptcy, in which no plan has yet been proposed, causing uncertainty when it came to projecting cash flow. According to the Debtor, the new protocols and cost-saving measures had to be evaluated and implemented which resulted in some necessary delays in formulating a reorganization plan, but also in the positive cash flow referenced in the latest monthly operating report. The Debtor's new management required extra time to observe and evaluate Debtor's operations, along with the Shasta Enterprises liquidation before it could formulate its own plan -- eventually assuming for purposes of cash flow analysis that there would be no dividend paid by the Shasta Enterprises Trustee during the sixty month "Plan Term" proposed by Debtor. The Debtor tells the Court that its case is still in its infancy. The Debtor is paying all post-petition obligations as they come due and has substantial net funds on deposit to fund the plan. The Debtor has been reluctant to negotiate with creditors unless and until a Disclosure Statement has been approved. The Debtor is current on all operating reports and other disclosure required under the Bankruptcy Code and has been working cooperatively with its creditors on operational matters. The Debtor assures the Court that it is not seeking the extension to pressure creditors to submit to any demands. Rather, the goal is to minimize expenses to the estate and to streamline the confirmation process. BR Enterprises is represented by: George C. Hollister, Esq. HOLLISTER LAW CORPORATION 655 University Avenue, Suite 200 Sacramento, CA 95825 Telefax: (916) 488-3400 Email: hollisterlaw@earthlink.net About BR Enterprises BR Enterprises, a California Partnership, owns 20.17 acres of undeveloped ranch located at East of Interstate 5 and South of Lake California Drive, 2600 acres of undeveloped ranch property located in Cottonwood California in Tehama County; and 278 acres of contiguous parcels along HWY I-5. The Company sought Chapter 11 protection (Bankr. E.D. Cal. Case No. 15-21575) on Feb. 27, 2015. A related entity, Shasta Enterprises, sought bankruptcy protection (Case No. 14-30833) on Oct. 31, 2014. The Debtor disclosed $14,422,236 in assets and $6,961,492 in liabilities as of the Chapter 11 filing. Judge Michael S. McManus presides over the case. George C. Hollister, Esq., at Hollister Law Corporation, represents the Debtor in its restructuring effort. According to the docket, the deadline for filing claims by governmental entities is Aug. 26, 2015. BRAND ENERGY: Bank Debt Trades at 4% Off ---------------------------------------- Participations in a syndicated loan under which Brand Energy & Infrastructure Services is a borrower traded in the secondary market at 95.75 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents a decrease of 0.50 percentage points from the previous week, The Journal relates. Brand Energy & Infrastructure Services pays 375 basis points above LIBOR to borrow under the facility. The bank loan matures on November 12, 2020. Moody's rates the loan 'B1' and Standard & Poor's gave a 'B' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. CAESARS ENT: Enters Into Bank Restructuring Support Agreement ------------------------------------------------------------- Caesars Entertainment Corporation and Caesars Entertainment Operating Company, Inc. have entered into a Bank Restructuring Support Agreement. The agreement, which is effective immediately, secures the support of CEOC's largest and most senior creditor constituencies and represents a key milestone in Caesars Entertainment and CEOC's efforts to implement a consensual restructuring of CEOC. CEOC's restructuring is now supported by CEOC's First Lien Bank Lenders and First Lien Bondholders, which represent the most senior $12 billion of CEOC's capital structure. Caesars Entertainment and CEOC continue to engage in discussions with junior creditors to build additional support for the previously announced Second Lien Restructuring Agreement in an effort to complete the restructuring consensually. However, the senior creditors' support of today's agreement paves the way toward a confirmable plan for the restructuring of CEOC. The Bank RSA is substantially similar to the previously announced Bond RSA. The Bank RSA and a summary of the transaction are available in the Media Resources section of the CEOC Restructuring Web site at http://www.ceocrestructuring.com/media-resources/ About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc., is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. In January 2015, Caesars Entertainment and subsidiary Caesars Entertainment Operating Company, Inc., announced that holders of more than 60% of claims in respect of CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior secured notes due 2020 and CEOC's 9% senior secured notes due 2020 have signed the Amended and Restated Restructuring Support and Forbearance Agreement, dated as of Dec. 31, 2014, among Caesars Entertainment, CEOC and the Consenting Creditors. As a result, The RSA became effective pursuant to its terms as of Jan. 9, 2015. Appaloosa Investment Limited, et al., owed $41 million on account of 10% second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. The bondholders are represented by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, LLP. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Delaware Bankruptcy Judge Kevin Gross entered a ruling that the bankruptcy proceedings will proceed in the U.S. Bankruptcy Court for the Northern District of Illinois. Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. The U.S. Trustee has appointed seven noteholders to serve in the Official Committee of Second Priority Noteholders and nine members to serve in the Official Unsecured Creditors' Committee. The U.S. Trustee appointed Richard S. Davis as Chapter 11 examiner. CAESARS ENTERTAINMENT INC: 2017 Bank Debt Trades at 14% Off ----------------------------------------------------------- Participations in a syndicated loan under which Caesars Entertainment Inc is a borrower traded in the secondary market at 86.38 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents an increase of 0.63 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. Moody's rates the loan 'WR' and Standard & Poor's gave a 'D' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. CAESARS ENTERTAINMENT INC: 2020 Bank Debt Trades at 5% Off ---------------------------------------------------------- Participations in a syndicated loan under which Caesars Entertainment Inc. is a borrower traded in the secondary market at 94.70 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents an increase 1.58 percentage points from the previous week, The Journal relates. Caesars Entertainment Inc pays 600 basis points above LIBOR to borrow under the facility. The bank loan matures on September 24, 2020. Moody's rates the loan 'B2' and Standard & Poor's gave a 'CCC+' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. CAESARS ENTERTAINMENT: General Counsel Gets $200K Retention Bonus ----------------------------------------------------------------- In order to help retain Timothy Donovan, executive vice president, general counsel and chief regulatory and compliance officer of Caesars Entertainment Corporation, Mr. Donovan was awarded a special one-time retention bonus with a value of up to $200,000 in accordance with the terms set forth in a letter agreement, according to a regulatory filing with the Securities and Exchange Commission. The Retention Bonus is payable in two equal installments of $100,000 on each final regular payroll day of calendar year 2015 and calendar year 2016. If Mr. Donovan's employment is terminated for any reason prior to either payment date, he will forfeit any portion of the Retention Bonus that has not yet been paid as of such termination date. The Retention Letter does not modify or amend Mr. Donovan's employment agreement, dated April 2, 2009, which remains in effect. Meanwhile, on Aug. 19, 2015, CEC and Caesars Entertainment Operating Company, Inc., a majority owned subsidiary of CEC, announced that they extended for 30 days, from Aug. 19, 2015, to Sept. 18, 2015, the date by which the conditions to effectiveness must be satisfied for the Restructuring Support and Forbearance Agreement, dated as of July 20, 2015, among CEC, CEOC and certain holders of claims in respect of CEOC's 12.75% Second-Priority Senior Secured Notes due 2018, 10.00% Second-Priority Senior Secured Notes due 2018 and 10.00% Second-Priority Senior Secured Notes due 2015. As a result of the Extension, creditors holding Second Lien Bond Claims have until Sept. 18, 2015, to sign the Second Lien Bond RSA, which will become effective upon the signing of the Second Lien Bond RSA by creditors holding at least 50.1% of the Second Lien Bond Claims. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc., is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. In January 2015, Caesars Entertainment and subsidiary Caesars Entertainment Operating Company, Inc., announced that holders of more than 60% of claims in respect of CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior secured notes due 2020 and CEOC's 9% senior secured notes due 2020 have signed the Amended and Restated Restructuring Support and Forbearance Agreement, dated as of Dec. 31, 2014, among Caesars Entertainment, CEOC and the Consenting Creditors. As a result, The RSA became effective pursuant to its terms as of Jan. 9, 2015. Appaloosa Investment Limited, et al., owed $41 million on account of 10% second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. The bondholders are represented by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Delaware Bankruptcy Judge Kevin Gross entered a ruling that the bankruptcy proceedings will proceed in the U.S. Bankruptcy Court for the Northern District of Illinois. Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. The U.S. Trustee has appointed seven noteholders to serve in the Official Committee of Second Priority Noteholders and nine members to serve in the Official Unsecured Creditors' Committee. The U.S. Trustee appointed Richard S. Davis as Chapter 11 examiner. * * * The Troubled Company Reporter, on April 27, 2015, reported that Fitch Ratings has affirmed and withdrawn the Issuer Default Ratings (IDR) and issue ratings of Caesars Entertainment Operating Company (CEOC). These actions follow CEOC's Chapter 11 filing on Jan. 15, 2015. Accordingly, Fitch will no longer provide ratings or analytical coverage for CEOC. In addition, Fitch has affirmed the IDR and issue rating of Chester Downs and Marina LLC (Chester Downs) and the ratings have been simultaneously withdrawn for business reasons. CAESARS ENTERTAINMENT: Plan for Unit Has Top Lender Support ----------------------------------------------------------- Luna J. Keller at Bloomberg Business reports that Caesars Entertainment Corp. said top lenders to its bankrupt unit Caesars Entertainment Operating Co. have agreed to support the Company's plan to turn the unit into a real estate investment trust. Caesars Entertainment and CEOC have entered into a bank restructuring support agreement. The agreement, which is effective immediately, secures the support of CEOC's largest and most senior creditor constituencies and represents a key milestone in Caesars Entertainment and CEOC's efforts to implement a consensual restructuring of CEOC. CEOC's restructuring is now supported by CEOC's first lien bank lenders and first lien bondholders, which represent the most senior $12 billion of CEOC's capital structure. The Bank RSA is substantially similar to the previously announced Bond RSA. The Bank RSA and a summary of the transaction are available in the Media Resources section of the CEOC Restructuring Web site at http://www.ceocrestructuring.com/media-resources/. Caesars Entertainment and CEOC continue to engage in discussions with junior creditors to build additional support for the previously announced second lien restructuring agreement in an effort to complete the restructuring consensually. However, the senior creditors' support of the agreement paves the way toward a confirmable plan for the restructuring of CEOC. Bloomberg Business relates that the agreement reached would allow the Company to focus on getting support from the last major group holding out on its restructuring plan. According to the report, the plan would cut the unit's $19.9 billion of obligations almost in half and create a complex web of new companies, each holding new debt. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc., is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. In January 2015, Caesars Entertainment and subsidiary Caesars Entertainment Operating Company, Inc., announced that holders of more than 60% of claims in respect of CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior secured notes due 2020 and CEOC's 9% senior secured notes due 2020 have signed the Amended and Restated Restructuring Support and Forbearance Agreement, dated as of Dec. 31, 2014, among Caesars Entertainment, CEOC and the Consenting Creditors. As a result, The RSA became effective pursuant to its terms as of Jan. 9, 2015. Appaloosa Investment Limited, et al., owed $41 million on account of 10% second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. The bondholders are represented by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Delaware Bankruptcy Judge Kevin Gross entered a ruling that the bankruptcy proceedings will proceed in the U.S. Bankruptcy Court for the Northern District of Illinois. Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. The U.S. Trustee has appointed seven noteholders to serve in the Official Committee of Second Priority Noteholders and nine members to serve in the Official Unsecured Creditors' Committee. The U.S. Trustee appointed Richard S. Davis as Chapter 11 examiner. * * * The Troubled Company Reporter, on April 27, 2015, reported that Fitch Ratings has affirmed and withdrawn the Issuer Default Ratings (IDR) and issue ratings of Caesars Entertainment Operating Company (CEOC). These actions follow CEOC's Chapter 11 filing on Jan. 15, 2015. Accordingly, Fitch will no longer provide ratings or analytical coverage for CEOC. In addition, Fitch has affirmed the IDR and issue rating of Chester Downs and Marina LLC (Chester Downs) and the ratings have been simultaneously withdrawn for business reasons. CAESARS ENTERTAINMENT: Pushes Ch. 11 Plan Ahead with Lender Support ------------------------------------------------------------------- Laura J Keller, writing for Bloomberg News, reported that Caesars Entertainment Corp. said it reached a deal with the most-senior lenders to its bankrupt unit, allowing the casino operator to focus on getting support from the last major group holding out on its restructuring plan. According to the report, the agreement, announced on Aug. 21, requires the lenders to approve Caesars' plan to reorganize its main operating subsidiary, the bankrupt Caesars Entertainment Operating Co. The pact is effective immediately, meaning a majority of the loan holders have signed it, the report said. Caesars' plan would cut the unit's $19.9 billion of obligations almost in half and create a complex web of new companies, each holding new debt, the report related. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc., is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. In January 2015, Caesars Entertainment and subsidiary Caesars Entertainment Operating Company, Inc., announced that holders of more than 60% of claims in respect of CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior secured notes due 2020 and CEOC's 9% senior secured notes due 2020 have signed the Amended and Restated Restructuring Support and Forbearance Agreement, dated as of Dec. 31, 2014, among Caesars Entertainment, CEOC and the Consenting Creditors. As a result, The RSA became effective pursuant to its terms as of Jan. 9, 2015. Appaloosa Investment Limited, et al., owed $41 million on account of 10% second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. The bondholders are represented by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Delaware Bankruptcy Judge Kevin Gross entered a ruling that the bankruptcy proceedings will proceed in the U.S. Bankruptcy Court for the Northern District of Illinois. Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. The U.S. Trustee has appointed seven noteholders to serve in the Official Committee of Second Priority Noteholders and nine members to serve in the Official Unsecured Creditors' Committee. The U.S. Trustee appointed Richard S. Davis as Chapter 11 examiner. * * * The Troubled Company Reporter, on April 27, 2015, reported that Fitch Ratings has affirmed and withdrawn the Issuer Default Ratings (IDR) and issue ratings of Caesars Entertainment Operating Company (CEOC). These actions follow CEOC's Chapter 11 filing on Jan. 15, 2015. Accordingly, Fitch will no longer provide ratings or analytical coverage for CEOC. In addition, Fitch has affirmed the IDR and issue rating of Chester Downs and Marina LLC (Chester Downs) and the ratings have been simultaneously withdrawn for business reasons. CANCER GENETICS: Finalizes APA with Response Genetics ----------------------------------------------------- Cancer Genetics, Inc., previously announced that it had entered into an agreement, in principle, dated Aug. 9, 2015, to act as the "stalking horse bidder" in connection with its purchase of substantially all the assets and assumption of certain liabilities of Response Genetics, Inc. in connection with Response's filing of a chapter 11 petition for bankruptcy in the Delaware Bankruptcy Court. The agreement, in principle, was subject to finalization of the schedules and exhibits to the agreement. On Aug. 20, 2015, the parties agreed that the schedules and exhibits to the agreement were now final and the agreement was fully binding. The Agreement was amended and restated on Aug. 14, 2015, and then further amended on August 17 to extend the date for finalization to August 20. The Amended and Restated Asset Purchase Agreement does not change any of the material terms of the transaction. It still provides that the Company will purchase substantially all of Response's assets and assume certain liabilities of Response related to existing agreements with employees, customers, vendors, suppliers and trade creditors for an aggregate purchase price, subject to certain adjustments, of $14,000,000, comprised of a 50-50 split of $7,000,000 in cash and 788,584 shares of the Company's common stock, with the common stock being valued at $7,000,000 at the date of the original agreement, in principle. All shares of common stock included in the purchase price will be restricted shares issued directly to certain of Response's secured lenders. As the sale of the assets and assumption of liabilities is occurring in connection with a chapter 11 filing by Response in the Bankruptcy Court, the Company, as the "stalking horse," anticipates having the benefit of a bid protection order, once such bid protection order is adopted, but will also be subject to the bidding process set forth in any such bid protection order, so that the Company's proposal is subject to a higher and better offer. The agreement also remains subject to the satisfaction of certain closing conditions, including Bankruptcy Court approval and the absence of certain material adverse events. No assurance can be given that the proposed transaction with Response will be consummated at all or, if consummated, will be consummated on the terms and conditions set forth in the agreement. About Cancer Genetics Rutherford, N.J.-based Cancer Genetics, Inc., is an early-stage diagnostics company focused on developing and commercializing proprietary genomic tests and services to improve and personalize the diagnosis, prognosis and response to treatment (theranosis) of cancer. Cancer Genetics reported a net loss of $16.6 million in 2014, a net loss of $12.4 million in 2013 and a net loss of $6.66 million in 2012. As of June 30, 2015, the Company had $39.8 million in total assets, $13 million in total liabilities and $26.7 million in total stockholders' equity CATASYS INC: Reports Second Quarter 2015 Financial Results ---------------------------------------------------------- Catasys, Inc., reported second quarter financial results for the period ended June 30, 2015. For the second quarter ended June 30, 2015, total revenues increased by 51% to $472,000, compared to $312,000 for the second quarter 2014. The Company also reported $853,000 in deferred revenue, an increase of $338,000 or 65% compared to $515,000 for the first quarter of 2015. Depending on the customer, deferred revenue is either recognized over the course of the 52 week program when fees are received in advance, or annually when savings calculations are completed in cases where fees are subject to achieving savings at least equal to program fees. Catasys has been able to record its deferred revenue as actual revenue during the course of the business cycle, except for limited cases where members terminated from the program early. Total revenue increases were driven by an expansion of the Company's customer base and health plan populations covered under its program. The Company reported a net loss of $587,000, or ($0.02) per basic and diluted share for the second quarter ended June 30, 2015, compared to a net loss of $27.4 million, or ($1.27) per basic and diluted share, for the second quarter of the prior year. Total operating expenses for the second quarter 2015 were $2.98 million compared to $2.0 million for same quarter last year, primarily due to the higher cost of healthcare services based on increasing enrollment and non-cash general and administrative expenses. General and administrative expense increased to $2.4 million for the three months ended June 30, 2015, compared to $1.7 million during the same period in 2014. This was primarily due to non-cash compensation expense for stock option grants to the members of the board of directors. Rick Anderson, president and COO said, "Our second quarter continued to generate top line growth, showing a 51% increase year-over-year. We are also pleased to report 102% sequential growth in enrollment in the second quarter of 2015 over our first quarter of 2015. Enrollment growth is anticipated to translate to increased revenue and deferred revenue in future quarters as the Company receives monthly fees or fee-for-service payments for these members throughout their term of enrollment. This was a result of expanding our OnTrak program into Illinois with a new health insurer, enrolling members suffering from anxiety disorder into our OnTrak program in Kansas and growth in enrollment for customers launched within the last year. During the quarter, we released results from a one-year retrospective cohort study in which we collaborated with Humana. The study found that our integrated substance abuse treatment program led to higher enrollment, fewer ER visits and inpatient hospitalizations and lower health care costs. Lastly, with the announcement of our warrant exchange, we eliminated an associated liability of approximately $38 million associated with those warrants. This represents an important step in moving the Company towards our goal of meeting the stockholders' equity test for listing on a national exchange. We look forward to keeping our shareholders updated on this progress." About Catasys Inc. Based in Los Angeles, California, Hythiam, Inc., n/k/a Catasys, Inc., is a healthcare services management company, providing through its Catasys(R) subsidiary specialized behavioral health management services for substance abuse to health plans. Catasys reported a loss of $27.3 million on $2.03 million of healthcare services revenues for the 12 months ended Dec. 31, 2014, compared to a loss of $4.67 million on $754,000 of healthcare services revenues for the 12 months ended Dec. 31, 2013. As of March 31, 2015, the Company had $1.33 million in total assets, $41.8 million in total liabilities and a $40.4 million total stockholders' deficit. Rose, Snyder & Jacobs LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has continued to incur significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2014. These conditions raise substantial doubt about the Company's ability to continue as a going concern. CLIFFS NATURAL: May Issue 10 Million Shares Under 2015 Stock Plan ----------------------------------------------------------------- Cliffs Natural Resources Inc. filed a Form S-8 prospectus with the Securities and Exchange Commission relating to the registration of 10,000,000 shares of common stock of the Company issuable under the Company's 2015 Employee Stock Purchase Plan. The proposed maximum aggregate offering price is $35.6 million. A copy of the registration statement is available at http://is.gd/alJIvc About Cliffs Natural Resources Cliffs Natural Resources Inc. -- http://www.cliffsnaturalresources.com/-- is a mining and natural resources company. The Company is a major supplier of iron ore pellets to the U.S. steel industry from its mines and pellet plants located in Michigan and Minnesota. Cliffs also produces low-volatile metallurgical coal in the U.S. from its mines located in West Virginia and Alabama. Additionally, Cliffs operates an iron ore mining complex in Western Australia and owns two non-operating iron ore mines in Eastern Canada. Driven by the core values of social, environmental and capital stewardship, Cliffs' employees endeavor to provide all stakeholders operating and financial transparency. On Jan. 27, 2015, Bloom Lake General Partner Limited and certain of its affiliates, including Cliffs Quebec Iron Mining ULC commenced restructuring proceedings in Montreal, Quebec, under the Companies' Creditors Arrangement Act (Canada). The initial CCAA order will address the Bloom Lake Group's immediate liquidity issues and permit the Bloom Lake Group to preserve and protect its assets for the benefit of all stakeholders while restructuring and sale options are explored. The Company reported a net loss of $8.31 billion in 2014 following net income of $362 million in 2013. As of June 30, 2015, the Company had $2.60 billion in total assets, $4.30 billion in total liabilities and a $1.70 billion total deficit. * * * As reported by the TCR on Feb. 3, 2015, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Cliffs Natural Resources Inc. to 'B' from 'BB-'. The downgrade of Cleveland-based Cliffs Natural Resources is driven by a revision of the company's financial risk profile to "highly leveraged" from "aggressive" as a result of S&P's lowered iron ore price assumptions. The 24% cut to $65 per metric ton marked the third downward revision since early 2014, when S&P's forecast prices were more than $100 per metric ton. The TCR reported in March 2015 that Moody's Investors Service downgraded Cliffs Natural Resources Inc. Corporate Family Rating and Probability of Default Rating to 'B1' and 'B1-PD' respectively. "The downgrade in the CFR to 'B1' reflects expectations for a weaker performance in the Asia Pacific iron ore (APIO) segment, which has a greater exposure to the movement of iron ore prices in the seaborne market," said Carol Cowan, Moody's senior vice president. COATES INTERNATIONAL: Signs Conv. Note Facility with Investor ------------------------------------------------------------- Coates International, Ltd., entered into a 9.75% convertible note facility agreement with an investor on Aug. 14, 2015, according to a regulatory filing with the Securities and Exchange Commission. The Agreement provides that the investor will fund up to $631,500, including an initial tranche of $211,500, which was funded at the closing of the Agreement and eight additional tranches of $52,500 each. All tranches mature 18 months after the date of the Agreement. The Agreement provides that the entire outstanding balance under the Agreement, along with a required 25% prepayment penalty, may be paid to the investor at the option of the Company, in whole, at any time. The investor may convert the convertible notes at any time beginning six months after funding, into shares of the Company's common stock at a fixed rate of $0.045 per share. In addition, there are mandatory monthly conversions beginning 180 days after funding. Each monthly conversion amount will generally be equal to one-twelfth of the $631,500 amount of the note facility, plus accrued interest and any other fees or penalties assessed in accordance with the Agreement. The Company may, at its option, pay all or any portion of a mandatory note conversion in cash, or a combination of cash and conversion shares, without penalty, provided it makes a timely election to do so. The number of shares of common stock to be initially delivered upon conversion will be equal to the dollar amount being converted divided by the variable conversion price. The variable conversion price is the lesser of $0.045 per share, or 70% of the average of the three lowest daily volume weighted average prices over the 15 trading day period prior to the date of conversion. The number of shares of the Company's common stock required to be issued to the investor upon any mandatory conversion may be subsequently adjusted upward in the event that the recalculated variable conversion price on the 23rd trading day following the date of conversion is lower than the calculated variable conversion price on the date of conversion. In that case, the Company would be required to deliver the incremental number of shares to the investor, determined based on the recalculated variable conversion price. The Company has reserved 50 million shares of its unissued common stock for potential conversion of the convertible notes under this convertible note facility. The investor anticipates that upon any conversion, the shares of stock it receives from the Company will be freely tradable in compliance with Rule 144 of the U.S. Securities and Exchange Commission. About Coates Based in Wall Township, N.J., Coates International, Ltd. (OTC BB: COTE) -- http://www.coatesengine.com/-- was incorporated on August 31, 1988, for the purpose of researching, patenting and manufacturing technology associated with a spherical rotary valve system for internal combustion engines. This technology was developed over a period of 15 years by Mr. George J. Coates, who is the President and Chairman of the Board of the Company. The Coates Spherical Rotary Valve System (CSRV) represents a revolutionary departure from the conventional poppet valve. It changes the means of delivering the air and fuel mixture to the firing chamber of an internal combustion engine and of expelling the exhaust produced when the mixture ignites. As of June 30, 2015, the Company had $2.4 million in total assets, $7.5 million in total liabilities and a stockholders' deficit of $5.1 million. In its report on the consolidated financial statements for the year ended Dec. 31, 2014, Cowan, Gunteski & Co., P.A., expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company continues to have negative cash flows from operations, recurring losses from operations, and a stockholders' deficiency. CONTINENTAL BUILDING: Moody's Raises CFR to B1, Outlook Positive ---------------------------------------------------------------- Moody's Investors Service upgraded Continental Building Products LLC's Corporate Family Rating to B1 from B2 and revised its rating outlook to positive from stable, based on Moody's expectation that operating performance will continue to benefit from end market growth. In related rating actions, Moody's upgraded Continental's Probability of Default Rating to B1-PD from B3-PD and upgraded the ratings assigned to the company's first lien facility to B1 from B2. Moody's also changed Continental's Speculative Grade Liquidity Rating to SGL-1 from SGL-2, supported by solid free cash flow and availability under its revolving credit facility. These ratings were affected by this action: Corporate Family Rating upgraded to B1 from B2; Probability of Default Rating upgraded to B1-PD from B3-PD; Senior Secured Revolving Credit Facility upgraded to B1 (LGD4) from B2 (LGD3); Senior Secured Term Loan upgraded to B1 (LGD4) from B2 (LGD3), and; Speculative Grade Liquidity Rating revised to SGL-1 from SGL-2. RATINGS RATIONALE The upgrade of Continental's Corporate Family Rating to B1 from B2 and the rating outlook change to positive from stable reflect operating performance better than Moody's previously anticipated. Continental continues to delever its balance sheet with excess free cash flow, resulting in better key credit metrics. Moody's expects these debt payments to continue and now projects debt leverage to approach 2.0x by FYE16 from 3.2x at 2Q15, with free cash flow-to-debt projected to reach 34% over the same time horizon from 22.8% for LTM 2Q15 (all ratios incorporate Moody's standard adjustments). Earnings growth resulting from sustained strength in key end markets and operating margin expansion has also bolstered Continental's performance. Moody's estimates new housing starts will be in the 1.15 million range for 2015, a 15% increase from the 2014 total of about 1.0 million starts. The National Association of Home Builders Remodeling Market Index increased to 58.8 in 2Q15 from 56.6 in the previous quarter, supporting continued growth in the repair and remodeling market. Operating leverage from higher shipment volumes and favorable raw material costs both drive Continental's recent expansion in its EBITA margin, which Moody's projects to reach 18% through 2016 from about 17.25% for the twelve months through June 30, 2015. The revision of Continental's Speculative Grade Liquidity Rating to SGL-1 from SGL-2 reflects its improved liquidity profile, supported by free cash flow generation and availability under its revolving credit facility. Moody's projects Continental will generate close to $80 million in free cash flow over the next twelve months, which should allow the company to continue to reduce balance sheet debt. Continental's $50 million revolving credit facility, expected to remain undrawn, provides additional liquidity for a potential shortfall in cash flows. The upgrades of Continental's $50.0 million senior secured revolving credit facility and $330 million (originally $415 million) senior secured term loan to B1 from B2 both result directly from the higher Corporate Family Rating, a key driver in Moody's Loss Given Default analysis. A rating upgrade could take place if Continental continues to benefit from the strength in its key end markets, resulting in improved operating performance and a continued reduction in balance sheet debt that validates Moody's forecasts. Higher ratings could be considered if performance results in these credit metrics (ratios incorporate Moody's standard adjustments): -- Debt-to-EBITDA sustained near 2.0x (3.2x at 2Q15) -- EBITA-to-interest expense above 5.5x (2.9x at LTM 2Q15) Negative rating actions could occur if Continental's operating performance falls below Moody's expectations, resulting in these credit metrics (ratios incorporate Moody's standard adjustments) and characteristics: -- Debt-to-EBITDA remaining above 4.0x -- EBITA-to-interest sustained below 2.0x -- Deterioration in the company's liquidity profile Continental Building Products LLC, headquartered in Reston, VA, manufactures gypsum wallboard and related products for use in residential and commercial construction, as well as for repair and remodeling applications. It operates in the Eastern United States and Eastern Canada. Lone Star Funds, through its affiliates, is the largest shareholder of Continental. Revenues for the 12 months through June 30, 2015 totaled approximately $440 million. The principal methodology used in these ratings was Global Manufacturing Companies published in July 2014. CORINTHIAN COLLEGES: ED Wants Investigation Deadline Extended ------------------------------------------------------------- The United States Government, on behalf of the Department of Education, asks the United States Bankruptcy Court for the District of Delaware for an extension of the investigation termination date to the effective date of Corinthian Colleges, Inc., et al.'s second amended and modified combined disclosure statement and chapter 11 plan of liquidation plan or the effective date of any other modified or amended plan confirmed by the court. ED tells the Court that it is concerned that the Debtors' liquidation will be funded by federal student loan disbursements that are held in trust for the United States and are not part of the Debtors’ estate. ED says it needs additional time to trace those funds through the Debtors' numerous bank accounts to determine whether the Debtors' accounts still contain trust funds and, if so, how much. An extension of the deadline will enable ED with time to work with the Debtors and the Administrative Agent, Bank of America, N.A., to avoid costly litigation. Corinthian Colleges, Inc., Pegasus Education, Inc., and 23 affiliated entities Mark D. Collins, Esq. Michael J. Merchant, Esq. Marisa A. Terranova, Esq. Amanda R. Steele, Esq. RICHARDS, LAYTON & FINGER, P.A. 920 N. King Street Wilmington, DE 19801 Tel: (302) 651-7700 Fax: (302) 651-7701 Email: collins@rlf.com merchant@rlf.com terranova@rlf.com steele@rlf.com United States, on behalf of its Department of Education is represented by: Benjamin C. Mizer, Esq. Charles M. Oberly, III, Esq. Ellen Slights, Esq. Ruth A. Harvey, Esq. Tracy J. Whitaker, Esq. Llyod H. Randolph, Esq. John R. Kreese, Esq. Danielle A. Pham, Esq. U. S. DEPARTMENT OF JUSTICE Civil Division P. O. Box 875 Ben Franklin Station Washington, D.C. 20044-0875 Tel: (202) 307-0356 About Corinthian Colleges Corinthian Colleges, Inc., Pegasus Education, Inc., and 23 affiliated entities filed voluntary Chapter 11 petitions (Bankr. D. Del. Lead Case No. 15-10952) on May 4, 2015, to complete an orderly wind down of its operations. The cases are jointly administered Case No. 15-10952. Judge Kevin J. Carey presides over the case. Richards, Layton & Finger, P.A., represents the Debtors in their restructuring efforts; FTI Consulting, Inc., serves as restructuring advisors and Rust Consulting/Omni Bankruptcy serves as claims and noticing agent. Corinthian Colleges, Inc., disclosed $721,596,789 in assets and $2,929,448,278 in liabilities as of the Chapter 11 filing. The Debtor filed with the Court a first amended and modified combined disclosure statement and plan of liquidation. The Combined Plan incorporates a compromise between the Debtors, the Official Committee of Unsecured Creditors, the Student Committee and the Prepetition Secured Parties as to the Distribution of the Debtors' assets already liquidated or to be liquidated over time to the Holders of Allowed Claims in accordance with the terms of the Combined Plan and Disclosure Statement and the priority of claims provisions of the Bankruptcy Code. The U.S. Trustee for Region 3 appointed five creditors to serve on the official committee of unsecured creditors. Cooley LLP serves as its lead counsel, Foley & Mansfield, PLLP serves as its local counsel, and Province Inc. serves as its financial advisor. CORINTHIAN COLLEGES: Panel Investigation Termination Date Extended ------------------------------------------------------------------ Judge Kevin J. Carey of the United States Bankruptcy Court for the District of Delaware approved a stipulation entered into by and between The Official Committee of Unsecured Creditors appointed in the Chapter 11 cases of Corinthian Colleges, Inc., et al., and Bank of America, N.A., in its capacity as administrative agent for the prepetition first lien lenders, to further extend the investigation termination date relating to the prepetition liens and prepetitions secured obligations of the prepetition secured parties and other claims. Pursuant to the Stipulation, the investigation termination date and all of the rights of the Committee and the Prepetition Secured Parties of the CCO are extended and reserved until the effective date of the second modified plan, as may be further amended or modified with the consent of the administrative agent. In avoidance of doubt, if the second modified plan is not confirmed or is confirmed but does not become effective, the investigation termination date, and the right of a Chapter 7 trustee to file and prosecute challenges in the event that these cases are converted to chapter 7 of the Bankruptcy Code will not be deemed to have expired or been otherwise waived. Corinthian Colleges, Inc., Pegasus Education, Inc., and 23 affiliated entities Mark D. Collins, Esq. Michael J. Merchant, Esq. Marisa A. Terranova, Esq. Amanda R. Steele, Esq. RICHARDS, LAYTON & FINGER, P.A. 920 N. King Street Wilmington, DE 19801 Tel: (302) 651-7700 Fax: (302) 651-7701 Email: collins@rlf.com merchant@rlf.com terranova@rlf.com steele@rlf.com Official Committee of Unsecured Creditors is represented by: Frederick B. Rosner, Esq. Julia B. Klein, Esq. (DE 5198) THE ROSNER LAW GROUP LLC 824 Market Street, Suite 810 Wilmington, DE 19801 Tel: (302) 777-1111 Email: rosner@teamrosner.com klein@teamrosner.com -- and -- H. Jeffrey Schwartz, Esq. Bennett S. Silverberg, Esq. BROWN RUDNICK LLP Seven Times Square New York, NY 10036 Tel: (212) 209-4800 Email: jschwartz@brownrudnick.com bsilverberg@brownrudnick.com Bank of America, N.A. is represented by: Jeremy W. Ryan, Esq. POTTER ANDERSON & COROON LLP 1313 North Market Street, Sixth Floor P.O. Box 951 Wilmington, DE 19899-0951 Tel: (302) 984-6000 Email: jryan@potteranderson.com -- and -- Jennifer C. Hagle, Esq. Anna Gumport, Esq. SIDLEY AUSTIN LLP 555 West Fifth Street, Suite 4000 Los Angeles, CA 90013 Tel: (213) 896-6000 Email: jhagle@sidley.corn agumport@sidley.com About Corinthian Colleges Corinthian Colleges, Inc., Pegasus Education, Inc., and 23 affiliated entities filed voluntary Chapter 11 petitions (Bankr. D. Del. Lead Case No. 15-10952) on May 4, 2015, to complete an orderly wind down of its operations. The cases are jointly administered Case No. 15-10952. Judge Kevin J. Carey presides over the case. Richards, Layton & Finger, P.A., represents the Debtors in their restructuring efforts; FTI Consulting, Inc., serves as restructuring advisors and Rust Consulting/Omni Bankruptcy serves as claims and noticing agent. Corinthian Colleges, Inc., disclosed $721,596,789 in assets and $2,929,448,278 in liabilities as of the Chapter 11 filing. The Debtor filed with the Court a first amended and modified combined disclosure statement and plan of liquidation. The Combined Plan incorporates a compromise between the Debtors, the Official Committee of Unsecured Creditors, the Student Committee and the Prepetition Secured Parties as to the Distribution of the Debtors' assets already liquidated or to be liquidated over time to the Holders of Allowed Claims in accordance with the terms of the Combined Plan and Disclosure Statement and the priority of claims provisions of the Bankruptcy Code. The U.S. Trustee for Region 3 appointed five creditors to serve on the official committee of unsecured creditors. Cooley LLP serves as its lead counsel, Foley & Mansfield, PLLP serves as its local counsel, and Province Inc. serves as its financial advisor. DOMARK INTERNATIONAL: Announces Change of Control ------------------------------------------------- Domark International, Inc. issued to Andrew Ritchie, the Company's chief executive officer and sole director, and Thomas Crompton, the Company's chief financial officer, a total of 1,950,000 shares of its Series B Convertible Preferred Stock. The Company issued 1,170,000 shares of Series B Convertible Preferred Stock to Mr. Ritchie in full payment of $365,708 in accrued compensation owed to him and $70,000 in advances that Mr. Ritchie had made to the Company. The Company issued Mr. Crompton 780,000 shares of Series B Convertible Preferred Stock in full payment of $203,121 in accrued compensation and $30,732 in advances to the Company. Because of the majority voting rights afforded by the Series B Convertible Preferred Stock, the Board of Directors determined that a change of control occurred on Aug. 13, 2015, with control of the Company shifting from those shareholders holding a majority of the voting control of the Company to Mr. Ritchie and Mr. Crompton. Mr. Ritchie intends to vote all shares to which he is entitled to vote in favor of himself as a director at the Company's next meeting for the election of directors. As the Company's sole director, Mr. Ritchie also intends to maintain himself as chief executive officer of the Company. Unregistered Sale of Securities Beginning July 21, 2015, Domark International borrowed an additional $130,000 pursuant to convertible promissory notes previously entered into with several institutional investors. These monies are convertible into the Company's common stock at a discount to the stock's trading price. Amendments to Bylaws On Aug. 11, 2015, the Company filed two Certificates of Designation with the Secretary of State of Nevada creating two series of preferred stock: Class A Convertible Preferred Stock and Class B Convertible Preferred Stock. These designations were accepted by the Secretary of State of Nevada and became effective on Aug. 13, 2015. Class A Convertible Preferred Stock has voting rights of 1,000 per share of preferred stock and is convertible into 1,000 shares of common stock per share of preferred stock at the election of the holder. Class B Convertible Preferred Stock has voting rights equal to 51% of the voting power of the Company. Each share of Class B Convertible Preferred Stock is convertible into 8,000 shares of common stock at the election of the holder. About Domark International Based in Lake Mary, Florida, DoMark International, Inc., was incorporated under the laws of the State of Nevada on March 30, 2006. The Company was formed to engage in the acquisition and refinishing of aged furniture using exotic materials and then reselling it through interior decorators, high-end consignment shops and online sales. The Company abandoned its original business of exotic furniture sales in May of 2008 and pursued the acquisition of entities to best bring value to the company and its shareholders. For the nine months ended Feb. 28, 2015, the Company reported a net loss of $1.86 million on $0 of sales compared to a net loss of $2.34 million on $0 of sales for the same period a year ago. As of Feb. 28, 2015, the Company had $1.33 million in total assets, $3.53 million in total liabilties and a $2.19 million total stockholders' deficit. The Company said it has inadequate working capital to maintain or develop its operations, and is dependent upon funds from private investors, promissory notes from lenders, and the support of certain stockholders. These factors raise substantial doubt about the ability of the Company to continue as a going concern, according to the Company's quarterly report for the period ended Feb. 28, 2015. DOMARK INTERNATIONAL: Terminates Form S-8 Prospectus ---------------------------------------------------- Domark International, Inc., filed a post-effective amendment to its Form S-8 registration statement solely to deregister any and all securities previously registered under the Registration Statement with respect to the 2015 Stock Compensation Plan. The Company has not issued any shares pursuant to that plan and wishes to terminate the effectiveness of the Registration Statement. A copy of the prospectus is available at http://is.gd/LV1yaX About Domark International Based in Lake Mary, Florida, DoMark International, Inc., was incorporated under the laws of the State of Nevada on March 30, 2006. The Company was formed to engage in the acquisition and refinishing of aged furniture using exotic materials and then reselling it through interior decorators, high-end consignment shops and online sales. The Company abandoned its original business of exotic furniture sales in May of 2008 and pursued the acquisition of entities to best bring value to the company and its shareholders. For the nine months ended Feb. 28, 2015, the Company reported a net loss of $1.86 million on $0 of sales compared to a net loss of $2.34 million on $0 of sales for the same period a year ago. As of Feb. 28, 2015, the Company had $1.33 million in total assets, $3.53 million in total liabilties and a $2.19 million total stockholders' deficit. The Company said it has inadequate working capital to maintain or develop its operations, and is dependent upon funds from private investors, promissory notes from lenders, and the support of certain stockholders. These factors raise substantial doubt about the ability of the Company to continue as a going concern, according to the Company's quarterly report for the period ended Feb. 28, 2015. DUNE ENERGY: Sept. 17 Hearing on Plan and Disclosure Statement -------------------------------------------------------------- BankruptcyData reports that Dune Energy filed with the U.S. Bankruptcy Court a Chapter 11 Plan and related Disclosure Statement. According to the Disclosure Statement, "Except to the extent that the holder of a particular Administrative Claim has agreed to a different treatment of its Claim, the Plan provides that Administrative Claims shall be paid in full on the Effective Date;. . . With respect to holders of Priority Unsecured Non-Tax Claims, the Plan provides that, that absent agreement, holders of Allowed Priority Unsecured Non-Tax Claims shall receive Cash in the amount of their Priority Unsecured Non-Tax Claims. . . . With respect to a Secured Claim (including a Claim that that would otherwise be a Priority Unsecured Tax Claim, but for the secured status of the claim), the holder of that Claim will receive on account of such Claim either . . . a Distribution equal to 100% of its claim in cash on the Effective Date. . . . Confirmation of the Plan is not likely to be followed by the liquidation or the need for further financial reorganization of the Debtors or any successor to the Debtors under the Plan, unless such liquidation or reorganization is proposed in the Plan." The Disclosure Statement further notes, "Without the First Lien Lenders' agreement to allow the use of their Cash Collateral to fund the chapter 11 Bankruptcy Cases and the Plan, there is likely no source of funding to confirm the Plan, and the Debtors' Bankruptcy Cases might be converted to chapter 7 if no other funding sources are available. In such case, the Debtors believe it is highly unlikely that holders of General Unsecured Claims would receive any significant Distribution on their Claims because the First Lien Lenders and the Second Lien Noteholders hold claims totaling approximately $112.3 million and such Claimholders were granted security interests in and liens against substantially all of the Debtors' assets prepetition." The Court scheduled a September 17, 2015 to consider both the Disclosure Statement and Plan. About Dune Energy Dune Energy, Inc. (OTCMKTS: DUNR) is an independent energy company based in Houston, Texas. Since May 2004, the Company has been engaged in the exploration, development, acquisition and exploitation of natural gas and crude oil properties, with interests along the Louisiana/Texas Gulf Coast. The Company's properties cover over 90,000 gross acres across 27 producing oil and natural gas fields. Affiliates Dune Energy, Inc. (Bankr. W.D. Tex. Case No. 15-10336), Dune Operating Company (Bankr. W.D. Tex. Case No. 15-10337), and Dune Properties, Inc. (Bankr. W.D. Tex. Case No. 15-10338) filed separate Chapter 11 bankruptcy petitions on March 8, 2015. The petitions were signed by James A. Watt, president and chief executive officer. Judge Christopher H. Mott presides over the case. Charles A. Beckham, Jr., Esq., Kourtney P. Lyda, Esq., and Kelli M. Stephenson, Esq., at Haynes And Boone, LLP, serve as the Debtors' bankruptcy counsel. Deloitte Transactions And Business Analytics LLP is the Debtors' restructuring advisors. Parkman Whaling LLC is the Debtors' sale professionals. The Debtors listed $229 million in total assets and $144 million in total debts as of Sept. 30, 2014. In their schedules, Dune Energy Inc., et al., disclosed $263,337,172 in assets and $107,981,306 in liabilities. The U.S. trustee overseeing the Chapter 11 case of Dune Energy appointed three creditors to serve on the official committee of unsecured creditors. The Committee is represented by Hugh M. Ray, Esq., at McKool Smith, P.C. ENERGY FUTURE: Dec. 14 Asbestos Claims Bar Date Set --------------------------------------------------- UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE Power Plant Employees and Contractors If you or a family member ever worked at a power plant, you could have been exposed to asbestos. To keep your right to compensation if you become ill in the future (or have asbestos-related illness today), you must submit a claim by December 14, 2015, at 5:00 p.m., prevailing Eastern Time A bankruptcy has been filed by Energy Future Holding Corp., Ebasco Services, Inc. EECI, Inc. and certain subsidiaries ("EFH"). EFH owned, operated, maintained, or built power plants across the United States and in other countries where asbestos may have been present. Workers at these power plants (and family members and others who came into contact with these workers) may have been exposed to asbestos. Under the supervision of the Court, EFH is seeking a "clean start" by restructuring its debts. As part of this process, the Court has decided that anyone who has a claim today against EFH for asbestos-related illness or who may develop asbestos-related illness in the future, must submit a claim by December 14, 2015, at 5:00 p.m., prevailing Eastern Time to be eligible for compensation now or in the future (the "Asbestos Bar Date") Which power plants are included? Power plants related to EFH in which asbestos exposure may have occurred were located across the United States and in foreign countries. The list of included power plants is provided at the end of this notice. How could this affect me? You could have been exposed to asbestos if you or a family member worked at any of the included power plants as an employee, a contractor or in any other role. You also could have been exposed by coming in contact with another person who worked at a power plant (for example, if asbestos was brought home on your spouse or parent's clothing). You may also file a claim on behalf of a deceased family member. What are my options? If you believe that you or a family member may have been exposed to asbestos at an included plant, submit a claim by December 14, 2015, at 5:00 p.m., prevailing Eastern Time. Even if you have not been diagnosed with disease or experienced symptoms, you must make a claim to preserve your right to compensation if you develop asbestos-related illness in the future. You can submit a claim yourself or you can ask a lawyer to help you. If you do not submit a claim by December 14, 2015, at 5:00 p.m., prevailing Eastern Time and later develop asbestos-related disease, you will not be eligible for compensation. This notice explains your options regarding the Court's order related to asbestos claims ("Asbestos Bar Date Order"), how to submit an asbestos claim and the consequences of doing nothing. About Energy Future Holding Corp. Energy Future Holdings Corp., formerly known as TXU Corp., is A privately held diversified energy holding company with a Portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80 percent-owned entity within the EFH group, is the Largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. On April 29, 2014, Energy Future Holdings and 70 affiliated companies sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10979) after reaching a deal with some key financial stakeholders to keep its businesses operating whilereducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). The Debtors are seeking to have their cases jointly administered for procedural purposes. As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in book value and liabilities of $49.7 billion. The Debtors have $42 billion of funded indebtedness. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee for the second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee represents the interests of the unsecured creditors of ONLY of Energy Future Competitive Holdings Company LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings Company LLC; and EFH Corporate Services Company, and of no other debtors. The Committee has selected Morrison & Foerster LLP and Polsinelli PC for representation in this high-profile energy restructuring. The lawyers working on the case are James M. Peck, Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K. Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at Polsinelli PC. ERF WIRELESS: Accepts Resignation of Interim CFO ------------------------------------------------ ERF Wireless, Inc. received and accepted the resignation of Greg Smith as director, executive vice president, and interim chief financial officer in order to enable Mr. Smith to accept a consulting position with an independent restructuring team providing financial and restructuring advisory services to ERF Wireless and its subsidiaries. Mr. Smith has served in various executive officer positions with ERF Wireless including initial chief executive officer and chief financial officer, executive vice president over Mergers, Acquisitions, and Strategic Planning since Aug. 1, 2004. About ERF Wireless Based in League City, Texas, ERF Wireless, Inc., provides secure, high-capacity wireless products and services to a broad spectrum of customers in primarily underserved, rural and suburban parts of the United States. ERF Wireless reported a net loss attributable to the company of $7.26 million in 2013, a net loss of $4.81 million in 2012, and a net loss of $3.37 million in 2011. As of Sept. 30, 2014, the Company had $3.59 million in total assets, $10.4 million in liabilities, and a $6.84 million shareholders' deficit. ESTERLINA VINEYARDS: Section 341 Meeting Set for Sept. 18 --------------------------------------------------------- There's a meeting of creditors in the bankruptcy case of Esterlina Vineyards & Winery, LLC on Sept. 18, 2015, at 11:00 a.m. at Santa Rosa U.S. Trustee Office. Proofs of claim are due by Dec. 17, 2015. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Esterlina Vineyards & Winery, LLC filed a Chapter 11 bankruptcy petition (Bankr. N.D. Calif. Case No. 15-10841) on Aug. 12, 2015. Eric Sterling signed the petition as president. The Debtor estimated assets of $10 million to $50 million and liabilities of at least $1 million. The Law Offices of Provencher & Flatt LLP serves as the Debtor's counsel. The case is assigned to Judge Thomas E. Carlson. FILMED ENTERTAINMENT: Gets Court Approval to Hire Prime Clerk ------------------------------------------------------------- Filmed Entertainment Inc. received court approval to hire Prime Clerk LLC as its official claims and noticing agent effective as of Aug. 10, 2015. The order, issued by U.S. Bankruptcy Judge Shelley Chapman of the U.S. Bankruptcy Court for the Southern District of New York, authorized Prime Clerk to perform noticing services and to administer the proofs of claim filed in the company's bankruptcy case. Prime Clerk was also authorized to serve as the custodian of court records and was designated as the authorized repository for all proofs of claim. The firm is entitled to indemnification pursuant to its engagement agreement with Filmed Entertainment, according to the court filing. About Filmed Entertainment Filmed Entertainment Inc. owns and operates the "Columbia House DVD Club," a direct-to-customer distributor of movies and television series in the United States. FEI conducts its business through physical catalogues and through the http://www.columbiahouse.com/ Web site. FEI was historically active in the musical compact disc business, but exited the music business in 2010. Founded in 1955 as a division of CBS Inc. to sell vinyl records and cassette tapes, FEI is a unit of Pride Tree Holdings, Inc., which acquired FEI in December 2012. On Aug. 10, 2015 FEI filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Case No. 15-12244) in Manhattan, New York. The case is pending before the Honorable Shelley C. Chapman. The Debtor tapped Griffin Hamersky P.C. as counsel, and Prime Clerk LLC as claims and noticing agent. The Debtor estimated assets of $1 million to $10 million and debt of $50 million to $100 million. FILMED ENTERTAINMENT: Has Until Sept. 8 to File Schedules --------------------------------------------------------- Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York extended until Sept. 8, 2015, the time within which Filmed Entertainment, Inc., must file its schedules of assets and liabilities and statement of financial affairs. About Filmed Entertainment Filmed Entertainment Inc. owns and operates the "Columbia House DVD Club," a direct-to-customer distributor of movies and television series in the United States. FEI conducts its business through physical catalogues and through the http://www.columbiahouse.com/ Web site. FEI was historically active in the musical compact disc business, but exited the music business in 2010. Founded in 1955 as a division of CBS Inc. to sell vinyl records and cassette tapes, FEI is a unit of Pride Tree Holdings, Inc., which acquired FEI in December 2012. On Aug. 10, 2015 FEI filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Case No. 15-12244) in Manhattan, New York. The case is pending before the Honorable Shelley C. Chapman. The Debtor tapped Griffin Hamersky P.C. as counsel, and Prime Clerk LLC as claims and noticing agent. The Debtor estimated assets of $1 million to $10 million and debt of $50 million to $100 million. FILMED ENTERTAINMENT: Obtains Court Order Enforcing Automatic Stay ------------------------------------------------------------------ A federal judge granted Filmed Entertainment Inc.'s bid to enforce the so-called automatic stay to protect its assets. The order, issued by U.S. Bankruptcy Judge Shelley Chapman of the U.S. Bankruptcy Court for the Southern District of New York, enjoins creditors of Filmed Entertainment from taking or continuing any action against the company or its property. The court order also restrains anyone from terminating or modifying his contracts with Filmed Entertainment as a result of the company's bankruptcy filing. About Filmed Entertainment Filmed Entertainment Inc. owns and operates the "Columbia House DVD Club," a direct-to-customer distributor of movies and television series in the United States. FEI conducts its business through physical catalogues and through the http://www.columbiahouse.com/ Web site. FEI was historically active in the musical compact disc business, but exited the music business in 2010. Founded in 1955 as a division of CBS Inc. to sell vinyl records and cassette tapes, FEI is a unit of Pride Tree Holdings, Inc., which acquired FEI in December 2012. On Aug. 10, 2015 FEI filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Case No. 15-12244) in Manhattan, New York. The case is pending before the Honorable Shelley C. Chapman. The Debtor tapped Griffin Hamersky P.C. as counsel, and Prime Clerk LLC as claims and noticing agent. The Debtor estimated assets of $1 million to $10 million and debt of $50 million to $100 million. FINANCIAL HOLDINGS: Gets Final Approval to Obtain $70K Loan ----------------------------------------------------------- A federal judge approved a $70,000 financing to get Financial Holdings Inc. through bankruptcy. Judge Gregory Schaaf of U.S. Bankruptcy Court for the Eastern District of Kentucky gave final approval to the loan to be provided by WPBAFB, LLC. In exchange for the loan, WPBAFB will get an administrative expense claim. The loan will also be secured by Financial Holdings' shares of common stock in American Founders Bank Inc. The company, which obtained interim approval in June to get a loan from WPBAFB, did not receive objections to the financing, according to court filings. About Financial Holdings Financial Holdings, Inc., is a bank holding company, organized under the laws of the Commonwealth of Kentucky, that owns 100% of the common stock of two subsidiaries: (i) American Founders Bank, Inc. and (ii) American Founders Statutory Trust I. The Bank, in turn, owns 100% of the voting common stock of American Founders Loan Corporation. Financial Holdings sought Chapter 11 protection (Bankr. E.D. Ky. Case No. 15-51187) on June 16, 2015, in Lexington, Kentucky. The Bank, Statutory Trust, and AFLC, are not debtors in the Chapter 11 case. The Debtor disclosed total assets of $11.9 million and total liabilities of $40.6 million. The case is assigned to Judge Gregory R. Schaaf. The Debtor tapped Stoll Keenon Ogden, PLLC, as counsel, and Austin Associates, LLC, as financial advisors. Counsel to the proposed purchaser, WPB-AFB, LLC, are Michael G. Dailey, Esq., Uday Gorrepati, Esq., and Susan Zaunbrecher, Esq., at Dinsmore & Shohl, LLP, in Cincinnati, Ohio. FLOATEL INTERNATIONAL: Bank Debt Trades at 25% Off -------------------------------------------------- Participations in a syndicated loan under which Floatel International AB is a borrower traded in the secondary market at 74.70 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents a decrease of 0.35 percentage points from the previous week, The Journal relates. Floatel International AB pays 500 basis points above LIBOR to borrow under the facility. The bank loan matures on May 16, 2020. Moody's rates the loan 'B2' and Standard & Poor's gave a 'B' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. FORTESCUE METALS: Bank Debt Trades at 18% Off --------------------------------------------- Participations in a syndicated loan under which Fortescue Metals Group Ltd is a borrower traded in the secondary market at 82.47 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents an increase of 0.69 percentage points from the previous week, The Journal relates. Fortescue Metals Group Ltd pays 275 basis points above LIBOR to borrow under the facility. The bank loan matures on June 13, 2019. Moody's rates the loan 'Ba1 and Standard & Poor's gave a 'BB+' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. FRAC TECH: Bank Debt Trades at 33% Off -------------------------------------- Participations in a syndicated loan under which Frac Tech Services Ltd is a borrower traded in the secondary market at 67.40 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents a decrease of 2.67 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. Moody's rates the loan 'Caa2' and Standard & Poor's gave a 'CCC+' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. FRANK NAZAR: Shuts Down Gino's Surf Banquet Hall & Luna Kai Bar --------------------------------------------------------------- Frank Nazar and his son Frank Nazar Jr., which filed for Chapter 11 bankruptcy protection in May 2015, shut down their Gino's Surf banquet hall and adjoining Luna Kai tiki bar in Harrison Township, Michigan, this month, court records show. The owners, who listed up to 49 creditors and estimated liabilities of up to $50,000, said in a court filing, "Incurred large startup costs to open and stock the business to operate properly; collateral payments; sales tax." A court document filed on Friday shows that the businesses had operating losses of tens of thousands of dollars in June and July, totaling about $85,255. Mitch Hotts at The Macomb Daily reports that the Nazars are represented by Birmingham-based attorney, Elias Xenos, Esq. FRESH PRODUCE: Has Until August 24 to Decide on 7 Leases -------------------------------------------------------- Judge Michael E. Romero of the United States Bankruptcy Court for the District of Colorado, at the behest of Fresh Produce Holdings, LLC, et al., extended through and including August 24, 2015, the time for the Debtors to assume or reject leases for seven stores in various locations. On July 23, 2015, the Court entered an order permitting Tiger Capital Group, LLC, to conduct store-closing sales at certain of the Debtors' lease locations through August 15, 2015. The Debtors sought a brief extension of the deadline imposed by Section 365(d)(4)(A) of the Bankruptcy Code through the end of August 24, to conclude the store closing sales in accordance with the Court's May 22 Order, at which time they will be deemed rejected. The Debtors explained that they and the Purchasers are current on their lease obligations, and the extension requested is limited in time so that the Debtors and Purchaser may liquidate the inventory at those locations subject to the leases. None of the affected landlords oppose the requested extension. Once the Liquidators conclude the store closing sales on August 24, 2015, the Debtors will have completed their obligations under the Store Closing Orders. The Debtors have determined in their business judgment that continuing their performance under the leases past August 24 would be burdensome for the estate. Fresh Produce Holdings, LLC, et al. are represented by: Michael J. Pankow, Esq. Joshua M. Hantman, Esq. Rafael R. Garcia-Salgado, Esq. BROWNSTEIN HYATT FARBER SCHRECK, LLP 410 17th Street, Suite 2200 Denver, Colorado 80202 Tel: (303) 223-1100 Fax: (303) 223-1111 Email: mpankow@bhfs.com jhantman@bhfs.com rgarcia@bhfs.com About Fresh Produce Holdings Fresh Produce Holdings, LLC, and five separate entities filed Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Colorado on April 4, 2015. Fresh Produce Holdings, LLC is the parent company, and the various related or subsidiary entities include: Fresh Produce Retail, LLC, Fresh Produce Sportswear, LLC, Fresh Produce of St. Armands, LLC, FP Brogan-Sanibel Island, LLC, and Fresh Produce of Coconut Point, LLC. All of the cases are jointly administered under Case No. 15-13485. Headquartered in Boulder, Colorado Fresh Produce -- http://www.freshproduceclothes.com/-- designs, develops and markets women's apparel and accessories. The company says its collections of tops, pants, skirts and dresses feature a signature garment dye process with more than 80 percent produced in the United States. It says products are available in 26 company-owned boutiques located across the United States, as well as 400 independent retail locations. Fresh Produce Holdings disclosed $15,657,041 in assets and $13,320,303 in liabilities as of the Chapter 11 filing. The Debtors are represented by Michael J. Pankow, Esq., at Brownstein Hyatt Farber Schreck, in Denver. The bankruptcy cases are assigned to Judge Sidney B. Brooks. The Debtor's subsidiary earlier commenced bankruptcy cases on April 2, 2015: FP Brogan-Sanibel Island, LLC (Case No. 15-13420), Fresh Produce Coconut Point, LLC (Case No. 15-13421), Fresh Produce of St. Armands, LLC (Case No. 15-13417), Fresh Produce Retail, LLC (15-13415), and Fresh Produce Sportswear, LLC (15-13416). The U.S. Trustee for Region 19 amended the membership of the Official Committee of Unsecured Creditors. The Committee consists of four unsecured creditors. FRONTIER COMMUNICATIONS: Moody's Rates Sr. Secured Term Loan Ba2 ---------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to Frontier Communications Corporation's senior secured term loan A. Concurrently, Moody's affirmed Frontier's Ba3 Corporate Family Rating, Ba3-PD Probability of Default Rating, Ba3 senior unsecured notes rating and SGL-1 Speculative Grade Liquidity Rating. Frontier's outlook remains stable. Proceeds from the new term loan A will be used to help finance the purchase of Verizon Communications, Inc.'s local wireline assets in the states of Florida, Texas, and California. Ratings Assigned: Issuer: Frontier Communications Corporation Senior Secured Term Loan A, assigned Ba2, LGD3 Ratings Affirmed: Issuer: Frontier Communications Corporation Corporate Family Rating (Local Currency), Affirmed Ba3 Probability of Default Rating, Affirmed Ba3-PD Speculative Grade Liquidity Rating, Affirmed SGL-1 Senior Unsecured Notes, Affirmed Ba3, LGD4 Underlying Senior Unsecured Notes, Affirmed Ba3, LGD4 Issuer: New Communications Holdings Inc. (assumed by Frontier Communications Corporation) Backed Senior Unsecured Notes, Affirmed Ba3, LGD4 Outlook Actions: Issuer: Frontier Communications Corporation Outlook; Remains Stable RATINGS RATIONALE Frontier's Ba3 CFR reflects its large scale of operations, its strong and predictable cash flows and high margins. Following the acquisition of Verizon's assets in Florida, Texas and California, Frontier will dramatically improve its scale and acquire valuable assets that are strongly positioned versus the incumbent cable competitors. These factors are offset by the company's challenged competitive position versus cable operators in its legacy Frontier territories, its weak revenue trend and the possibility that the company may not have the discipline to continue to adequately invest in network modernization. Moody's projects Frontier's leverage to be around 4.1x (Moody's adjusted) at year end 2017 before falling further in 2018 due to expected debt repayment and synergy realization. Moody's anticipates approximately $2.75 billion of the $10 billion purchase price of these assets to be funded with previously raised equity capital, $1.5 billion funded with the new senior secured term loan A and the remaining $6 billion to be funded with to be issued unsecured debt. The acquisitions will double Frontier's size to over $11 billion in revenues, adding nearly 6.1 million additional households and about 2.2 million additional broadband connections. Moody's expects Frontier's consolidated revenue over the next several years to remain approximately flat as the growth within the acquired Verizon wireline properties offsets the low single digit percentage decline at the legacy Frontier business. The Verizon acquisition is positive to Frontier's cash flow profile given the high margins of the acquired wireline business and the high penetration of FiOS within the footprint resulting in favorable capital intensity. The ratings for the debt instruments reflect both the probability of default of Frontier, on which Moody's maintains a PDR of Ba3-PD, and individual loss given default assessments. The senior secured term loan is rated Ba2 (LGD3), one notch above the company's Ba3 CFR due to its enhanced collateral. The secured debt will benefit from a pledge of 100% of the stock of Frontier North, Inc. Approximately $700 million of existing unsecured debt and the company's $750 million revolving credit facility will be granted the same security as the new secured term loan, based on the terms governing these existing borrowings. In addition, Frontier North is the issuer of $200 million of unsecured notes, which will remain structurally senior to the collateral. Although it is likely that Frontier North will remain largely unencumbered due to the terms governing the new credit facility, Moody's assigns less value to an all-stock pledge relative to an all-assets pledge and does not consider Frontier's secured debt to be fully collateralized by this stock pledge. Moody's currently rates Frontier's senior unsecured debt at Ba3 (LGD4), in line with the CFR as the unsecured debt continues to represent the vast majority of the company's debt obligations. The ratings incorporate the pro forma capital structure, including Frontier's planned issuance of additional unsecured debt which will complete the financing required to purchase Verizon's CA, FL and TX assets. The stable outlook is based upon Moody's view that Frontier will successfully integrate the acquired assets, maintain stable margins and produce free cash flow after dividends of about 2-3% of total debt. The outlook also assumes that Frontier will repay debt at maturity with operating cash flows for the next two to three years. Moody's could raise Frontier's ratings if leverage were to be sustained comfortably below 3.75x (Moody's adjusted) and free cash flow to debt were in the mid-single digits percentage range. Moody's could lower Frontier's ratings if leverage were to exceed 4.25x (Moody's adjusted) or free cash flow turns negative, on a sustained basis. Also, the ratings could be lowered if the company's liquidity becomes strained or if capital spending is reduced below the level required to sustain the company's market position. Frontier Communications Corp. is an Incumbent Local Exchange Carrier ("ILEC") headquartered in Stamford, CT. For the last twelve month ended March 31, 2015, the company generated approximately $5 billion of revenue. The principal methodology used in these ratings was Global Telecommunications Industry 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. GELTECH SOLUTIONS: Issues $200,000 Convertible Note to Mr. Reger ---------------------------------------------------------------- GelTech Solutions, Inc., issued Mr. Reger a $200,000 7.5% secured convertible note in consideration for a $200,000 loan, according to a regulatory filing with the Securities and Exchange Commission. The note is convertible at $0.77 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 129,871 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 incurred a net loss of $7.1 million for the year ended June 30, 2014, compared to a net loss of $5.2 million for the year ended June 30, 2013. Salberg & Company, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2014, citing that the Company has a net loss and net cash used in operating activities in 2014 of $7,111,945 and $5,132,019 respectively and has an accumulated deficit and stockholders' deficit of $35,133,578 and $1,898,315, respectively, at June 30, 2014. These matters raise substantial doubt about the Company's ability to continue as a going concern. GENERAL STEEL: Posts $1 Billion Net Loss for Second Quarter ----------------------------------------------------------- General Steel Holdings, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.03 billion on $529 million of total sales for the three months ended June 30, 2015, compared to a net loss of $16.5 million on $588 million of total sales for the same period during the prior year. For the six months ended June 30, 2015, the Company reported a net loss of $1.11 billion on $857 million of total sales compared to a net loss of $86.1 million on $1.18 billion of total sales for the same period a year ago. As of June 30, 2015, the Company had $1.29 billion in total assets, $2.96 billion in total liabilities and total deficiency of $1.67 billion. As of June 30, 2015, the Company had cash and restricted cash aggregating $267 million, of which $230 million was restricted. "The steel business is capital intensive and as a normal industry practice in PRC, the Company is highly leveraged. Debt financing in the form of short term bank loans, loans from related parties, financing sales, bank acceptance notes, and capital leases have been utilized to finance the working capital requirements and the capital expenditures of the Company. As a result, the Company's debt to equity ratio as of June 30, 2015 and December 31, 2014 were (1.8) and (5.6), respectively. As June 30, 2015, the Company's current liabilities exceed current assets (excluding non-cash item) by $1.5 billion, which together with the gross loss from operations raises substantial doubt about its ability to continue as a going concern," according to the regulatory filing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/TdIF0Q About General Steel Holdings General Steel Holdings, Inc., headquartered in Beijing, China, produces a variety of steel products including rebar, high-speed wire and spiral-weld pipe. General Steel -- http://www.gshi-steel.com/-- has operations in China's Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality with seven million metric tons of crude steel production capacity under management. General Steel reported a net loss of $78.3 million on $1.9 billion of sales for the year ended Dec. 31, 2014, compared with a net loss of $42.6 million on $2 billion of sales for the year ended Dec. 31, 2013. Friedman LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has an accumulated deficit, has incurred a gross loss from operations, and has a working capital deficiency at Dec. 31, 2014. These conditions raise substantial doubt about the Company's ability to continue as a going concern. GENIUS BRANDS: Files Preliminary Form S-1 Prospectus with SEC ------------------------------------------------------------- Genius Brands International, Inc., filed with the Securities and Exchange Commission a Form S-1 registration statement relating to the offering of units, each Unit consisting of one share of common stock and one warrant to purchase one share of common stock. The Company's common stock is quoted on the OTCQB under the symbol "GNUS". On Aug. 20, 2015, the last reported sale price for the Company's common stock on the OTCQB was $2.08 per share. The Company intends to apply to list its common stock on the NASDAQ Capital Market under the symbol "___". No assurance can be given that its application will be approved. Each warrant is exercisable for one share of common stock. The warrants are immediately exercisable upon issuance in this public offering at an initial exercise price of ______ % of the public offering price of one Unit in this offering. The warrants will expire on the ___ year anniversary of the date of issuance. The shares of common stock issuable from time to time upon the exercise of the warrants are also being offered pursuant to this prospectus. A full-text copy of the Form S-1 is available for free at: http://is.gd/qWr4ix About Genius Brands Beverly Hills, Calif.-based Genius Brands International, Inc., creates and distributes music-based products which it believes are entertaining, educational and beneficial to the well-being of infants and young children under its brands, including Baby Genius and Little Genius. Genius Brands reported a net loss of $3.72 million in 2014, a net loss of $7.21 million in 2013, a net loss of $2.06 million in 2012 and a net loss of $1.37 million in 2011. As of March 31, 2015, the Company had $17.5 million in total assets, $4.44 million in total liabilities and $13.09 million in total equity. GLYECO INC: Elects Varengo's Charles Trapp as Director ------------------------------------------------------ The Board of Directors of GlyEco, Inc. appointed Charles F. Trapp to serve as a member of the Board, effective Aug. 17, 2015. Mr. Kneller, 57, is currently the chief operating officer of Verengo Solar, a leading residential solar installation business that was founded in 2008 and grew rapidly to be a top 5 installer by 2014. From 2010 to 2014, Mr. Kneller served as the vice president of Sales & Operations at Sears Holding Company, where he led sales and operations with full profit and loss responsibility of $1.3B, 740+ corporate stores, six franchise stores, multiple call centers, and over 12,000 associates. From 2007 to 2010, he served as the chief executive officer of Aquion Water Treatment Products, a $250M global manufacturer and marketer of water treatment equipment and water quality solutions, where he was selected by the board to lead the revitalization of the company and was responsible for a total reorganization of the business. Mr. Kneller will be compensated as a Board member in accordance with the Company's FY2015 Director Compensation Plan. About GlyEco, Inc. Phoenix, Ariz.-based GlyEco, Inc., is a green chemistry company formed to roll-out its proprietary and patent pending glycol recycling technology that transforms waste glycols, a hazardous material, into profitable green products. As of March 31, 2015, the Company had $16.6 million in total assets, $2.48 million in total liabilities and $14.09 million in total stockholders' equity. Glyeco reported a net loss attributable to common shareholders of $8.73 million on $5.89 million of net sales for the year ended Dec. 31, 2014, compared with a net loss of $4 million on $5.53 million of net sales for the year ended Dec. 31, 2013. Semple, Marchal & Cooper, LLP, in Phoenix, Arizona, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has yet to achieve profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. GLYECO INC: Reports Fiscal Second Quarter Financial Results ----------------------------------------------------------- GlyeCo, Inc., reported a net loss of $1.1 million on $2.04 million of net sales for the three months ended June 30, 2015, compared to a net loss of $1.11 million on $1.6 million of net sales for the same period during the prior year. For the six months ended June 30, 2015, the Company reported a net loss of $2.05 million on $3.38 million of net sales compared to a net loss of $2.3 million on $3.26 million of net sales for the same period in 2014. As of June 30, 2015, the Company had $15.9 million in total assets, $2.59 million in total liabilities and total stockholders' equity of $13.3 million. "We continue to make progress in our operations and our revenues in the second quarter are consistent with our expectations for growth as we add retail customers and refine our processes to deliver our concentrated and blended products. We have reduced the expenses related to corporate and are becoming more efficient on our field operations. In our New Jersey, South Carolina, and Florida facilities, we have experienced healthy revenue gains while showing our growing pains related to meeting the volume demands of our new customers. We anticipate that we will settle down these higher expenses related to this expansion in our business along with our satellite sales and delivery development, which began in the second quarter through the southern portions of the country. We have a lot of work to do, however, we are reducing the costs associated with running our business and as we move forward we believe the costs to operate and manage our growing business will fall in line with our profit expectations. Two of our facilities generated greater than 20% EBITDA margins, and we believe our footprint will meet these goals as we refine our new processes," said Mr. David Ide, GlyEco chief executive officer and president. "Our team worked exceptionally well to book and board new business through the first six months of 2015, as we updated and deployed our industry leading Quality Control and Assurance Program, deployed our initial field operations technology, and expanded into new markets. Our team is focused on continued growth and profitability." About GlyEco, Inc. Phoenix, Ariz.-based GlyEco, Inc., is a green chemistry company formed to roll-out its proprietary and patent pending glycol recycling technology that transforms waste glycols, a hazardous material, into profitable green products. Glyeco reported a net loss attributable to common shareholders of $8.73 million on $5.89 million of net sales for the year ended Dec. 31, 2014, compared with a net loss of $4 million on $5.53 million of net sales for the year ended Dec. 31, 2013. Semple, Marchal & Cooper, LLP, in Phoenix, Arizona, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has yet to achieve profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. GT ADVANCED: Aristeia, Latigo, New Generation Among DIP Lenders --------------------------------------------------------------- Akin Gump Strauss Hauer & Feld LLP and Drummond Woodsum filed with the Bankruptcy Court a fourth amended verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that both firms represent certain unaffiliated holders of obligations arising from: (a) 3% Convertible Senior Notes due 2017 issued pursuant to (i) the Indenture dated as of September 28, 2012 -- Base Indenture -- among GT Advanced Technologies Inc., as issuer, and U.S. Bank National Association, as trustee, and (ii) the First Supplemental Indenture to the Base Indenture, dated as of September 28, 2012, among GTAT, as issuer, and the Trustee, with respect to the 2017 Notes, and (b) 3% Convertible Senior Notes due 2020 issued pursuant to (i) the Base Indenture and (ii) the Second Supplemental Indenture to the Base Indenture, dated as of December 10, 2013, among GTAT, as issuer, and the Trustee, with respect to the 2020 Notes. Specifically, Akin Gump and Drummond represent certain of the Noteholders as lenders that provided the Debtors with a postpetition financing facility pursuant to the Senior Secured Superpriority Debtor-In-Possession Credit Agreement, dated as of July 27, 2015. Drummond also represented Fidelity Convertible Securities Investment Trust as local counsel on a limited matter that has now been concluded. Akin Gump and Drummond do not represent the Noteholders as a "committee" (as such term is employed in the Bankruptcy Code and Bankruptcy Rules) and do not undertake to represent the interests of, and are not fiduciaries for, any creditor, party in interest, or entities other than the Noteholders. In addition, the Noteholders do not represent or purport to represent any other entities in connection with the chapter 11 cases. The lenders and the nature and amount of their disclosable economic interest are: * Advantage Capital Management 1221 Brickell Ave., Unit 2660 Miami, FL 33131 $2,621,000.00 of 2017 Notes $1,120,000.00 of 2020 Notes $180,981.97 of DIP Loans * AQR Capital Management, LLC as investment manager on behalf of the funds and accounts it manages Two Greenwich Plaza, 3rd Floor Greenwich, CT 06830 $6,705,000.00 of 2017 Notes $3,505,797.23 of DIP Loans * Aristeia Capital, LLC 136 Madison Avenue, 3rd Floor New York, NY 10016 $12,367,000.00 of 2017 Notes $23,175,000.00 of 2020 Notes $16,029,493.67 of DIP Loans * BNP Paribas Securities Corp. 787 Seventh Avenue, 8th Floor New York, NY 10019 $4,220,000.00 of 2017 Notes $11,275,000.00 of 2020 Notes Short position of 298,529 shares of common stock * Castle Creek Arbitrage LLC 227 W. Monroe, Suite 3550 Chicago, IL 60606 $2,750,000.00 of 2017 Notes $3,500,000.00 of 2020 Notes * CNH Partners, LLC as investment manager on behalf of the funds and accounts it manages Two Greenwich Plaza, 3rd Floor Greenwich, CT 06830 $1,215,000.00 of 2017 Notes * Jefferies LLC 520 Madison Ave New York, NY 10022 $2,000,000.00 of 2017 Notes $7,500,000.00 of 2020 Notes $5,227,810.03 of DIP Loans * Latigo Partners, L.P. 450 Park Avenue, 12th Floor New York, NY 10022 $9,000,000.00 of 2017 Notes $16,265,000.00 of 2020 Notes $4,524,549.36 of DIP Loans 600,000 shares of common stock * New Generation Advisors, LLC 49 Union St. Manchester, MA 01944 $25,550,000.00 of 2017 Notes $11,400,000.00 of 2020 Notes $11,161,217.66 of DIP Loans * Pine River Capital Management L.P. on behalf of the funds and accounts it manages 601 Carlson Parkway, Suite 330 Minnetonka, MN 55305 $11,848,000.00 of 2017 Notes $6,500,00.00 of 2020 Notes $6,953,684.94 of DIP Loans * Privet Fund Management LLC 79 West Paces Ferry Road, 2nd Floor Atlanta, GA 30305 $17,176,000.00 of 2017 Notes $10,938,000.00 of 2020 Notes $4,378,670.45 of DIP Loans * Putnam Investment Management, LLC The Putnam Advisory Company, LLC One Post Office Square Boston MA 02109 $3,880,00.00 of 2020 Notes * Quantum Partners LP 888 Seventh Avenue, 33rd Fl. New York, NY 10106 $3,750,000.00 of 2017 Notes $17,738,000.00 of 2020 Notes $9,122,027.04 of DIP Loans 889,120 shares of common stock Unsecured claims totaling $5,000,000 * Scoggin Capital Management LLC 660 Madison Avenue, 20th Floor New York, NY 10065 $12,000,000.00 of 2017 Notes $4,350,000.00 of 2020 Notes Unsecured claims totaling $3,000,000.00 * Whitebox Advisors LLC 3033 Excelsior Boulevard, Suite 300 Minneapolis, MN 55416 $1,049,000.00 of 2020 Notes $13,633,136.04 of DIP Loans Unsecured claims totaling $3,406,024.39 * Wilfrid Aubrey LLC 405 Lexington Avenue, Suite 3503 New York, NY 10174 $3,000,000.00 of 2017 Notes $4,000,000.00 of 2020 Notes $750,135.42 of DIP Loans * Wolverine Flagship Fund Trading Limited c/o Wolverine Asset Management, LLC 175 W. Jackson Blvd., Suite 340 Chicago, IL 60604 $30,400,000.00 of 2017 Notes $11,730,215.38 of DIP Loans Short position of 317,616 shares of common stock, long position in 3,553 put option contracts, net short position in 2,327 call option contracts The firms may be reached at: Benjamin E. Marcus, Esq. Jeremy R. Fischer, Esq. DRUMMOND WOODSUM 1001 Elm Street, #303 Manchester, NH 03101 Telephone: (603) 716-2895 E-mail: bmarcus@dwmlaw.com jfischer@dwmlaw.com - and - Michael S. Stamer, Esq. Brad M. Kahn, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP One Bryant Park New York, NY 10036 Telephone: (212) 872-1000 E-mail: bkahn@akingump.com About GT Advanced Headquartered in Merrimack, New Hampshire, GT Advanced Technologies Inc. -- http://www.gtat.com/-- produces materials and equipment for the electronics industry. On Nov. 4, 2013, GTAT announced a multiyear supply deal with Apple Inc. to produce sapphire glass material for use in consumer electronics products. Under the deal, Apple would provide GTAT with a prepayment of approximately $578 million paid in four installments and, starting in 2015, GTAT would reimburse Apple for the prepayment over a five-year period. GT is a publicly held corporation whose stock was traded on NASDAQ under the ticker symbol "GTAT." GTAT was de-listed from the NASDAQ stock exchange in October 2014. As of June 28, 2014, the GTAT Group's unaudited and consolidated financial statements reflected assets totaling $1.5 billion and liabilities totaling $1.3 billion. As of Sept. 29, 2014, GTAT had $85 million in cash, $84 million of which is unencumbered. On Oct. 6, 2014, GT Advanced Technologies and eight affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.H. Lead Case No. 14-11916). GT says that it has sought bankruptcy protection due to a severe liquidity crisis brought about by its issues with Apple. The Debtors have tapped Nixon Peabody LLP and Paul Hastings LLP as attorneys and Kurtzman Carson Consultants LLC as claims and noticing agent. The U.S. Trustee has named seven members to the Official Committee of Unsecured Creditors. The Committee' professionals are Kelley Drye as its bankruptcy counsel; Devine, Millimet & Branch, Professional Association as local counsel; EisnerAmper LLP as financial advisors; and Houlihan Lokey Capital, Inc. as investment banker. GTAT has reached a settlement with Apple. The settlement gives Apple an approved claim for $439 million secured by more than 2,000 sapphire furnaces that GT Advanced owns and has four years to sell, with proceeds going to Apple. In addition, Apple gets royalty-free, non-exclusive licenses for GTAT's technology. The bankruptcy case is assigned to Judge Henry J. Boroff. An ad hoc group of equity holders has sought appointment of an official equity holders committee. The group is represented by Jason A. Manekas, Esq., at BERNKOPF GOODMAN LLP; and David Barrack, Esq., and Christopher A. Ward, Esq., at POLSINELLI PC. GT ADVANCED: Shareholders Fail to Show Panel Necessary, UST Says ---------------------------------------------------------------- The United States Trustee told Judge Henry Boroff on Thursday that an ad hoc group of equity holders in GT Advanced Technologies Inc. failed to meet its burden of demonstrating under 11 U.S.C. Sec. 1102(a)(2) that a committee is necessary to assure adequate representation of equity security holders' interests at this time. The U.S. Trustee reminded the Court that appointment of an equity security holders' committee is an extraordinary remedy. To meet its burden under 11 U.S.C. Sec. 1102(a)(2), the U.S. Trustee said, the ad hoc group must demonstrate: (i) that there is a substantial likelihood that equity holders will receive a meaningful distribution in the case under a strict application of the absolute priority rule, and (ii) that equity holders are unable to represent their interests in the bankruptcy case without an official committee. There's an Aug. 27 hearing (10:00 a.m.) to consider the appointment request. As reported by the Troubled Company Reporter on Aug. 3, 2015, the Ad Hoc Committee of Equity Interest Holders in the Chapter 11 case of GT Advanced Technologies Inc., et al., asked the U.S. Bankruptcy Court for the District of New Hampshire to direct the appointment of an official committee of equity security holders. According to the Ad Hoc Committee, the Debtors have enjoyed the protection of the Bankruptcy Code for over nine months but have failed to make any material progress toward a reorganization or plan of liquidation. Jason A. Manekas, Esq., at Bernkopf Goodman LLP, in Boston, said there is significant evidence that the Debtors have undervalued certain material assets by a substantial amount. Using the reasonable assumptions in the Equity Valuation, the Ad Hoc Committee estimates that the midpoint of the fair market value of the GTAT Group assets is $1.548 billion with liabilities in the amount of $1.003 billion, with an approximate equity valuation of $545 million. Mr. Manekas explained that based on the absence of any progress in these cases and the proposed DIP financing, there is clearly no party protecting the interests of existing equity holders. The equity holders should be represented in these cases, which are currently being run solely for the benefit of the professionals and the existing Noteholders, he added. The Ad Hoc Committee is represented by: Jason A. Manekas, Esq. BERNKOPF GOODMAN LLP 2 Seaport Lane, 9th Floor Boston, Massachusetts 02210 Tel: (617) 790-3000 Fax: (617) 790-3300 Email: jmanekas@bg-llp.com -- and -- David Barrack, Esq. POLSINELLI PC 900 Third Avenue, 21st Floor New York, NY 10022 Tel: (212) 684-0199 Fax: (212) 684-0197 Email: dbarrack@polsinelli.com -- and -- Christopher A. Ward, Esq. POLSINELLI PC 222 Delaware Avenue, Suite 1101 Wilmington, Delaware 19801 Tel: (302) 252-0920 Fax: (302) 252-0921 Email:cward@polsinelli.com About GT Advanced Headquartered in Merrimack, New Hampshire, GT Advanced Technologies Inc. -- http://www.gtat.com/-- produces materials and equipment for the electronics industry. On Nov. 4, 2013, GTAT announced a multiyear supply deal with Apple Inc. to produce sapphire glass material for use in consumer electronics products. Under the deal, Apple would provide GTAT with a prepayment of approximately $578 million paid in four installments and, starting in 2015, GTAT would reimburse Apple for the prepayment over a five-year period. GT is a publicly held corporation whose stock was traded on NASDAQ under the ticker symbol "GTAT." GTAT was de-listed from the NASDAQ stock exchange in October 2014. As of June 28, 2014, the GTAT Group's unaudited and consolidated financial statements reflected assets totaling $1.5 billion and liabilities totaling $1.3 billion. As of Sept. 29, 2014, GTAT had $85 million in cash, $84 million of which is unencumbered. On Oct. 6, 2014, GT Advanced Technologies and eight affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.H. Lead Case No. 14-11916). GT says that it has sought bankruptcy protection due to a severe liquidity crisis brought about by its issues with Apple. The Debtors have tapped Nixon Peabody LLP and Paul Hastings LLP as attorneys and Kurtzman Carson Consultants LLC as claims and noticing agent. The U.S. Trustee has named seven members to the Official Committee of Unsecured Creditors. The Committee' professionals are Kelley Drye as its bankruptcy counsel; Devine, Millimet & Branch, Professional Association as local counsel; EisnerAmper LLP as financial advisors; and Houlihan Lokey Capital, Inc. as investment banker. GTAT has reached a settlement with Apple. The settlement gives Apple an approved claim for $439 million secured by more than 2,000 sapphire furnaces that GT Advanced owns and has four years to sell, with proceeds going to Apple. In addition, Apple gets royalty-free, non-exclusive licenses for GTAT's technology. The bankruptcy case is assigned to Judge Henry J. Boroff. GUIDED THERAPEUTICS: Advances LuViva PMA Application with FDA ------------------------------------------------------------- Guided Therapeutics, Inc., has presented the U.S. Food and Drug Administration with a plan for advancing the pre-market approval application for the LuViva Advanced Cervical Scan. In its "pre-submission" letter, the Company also requested a meeting with the agency to finalize the plan. At the suggestion of the FDA, the Company plans to collect additional scans on patients within the context of new cervical cancer screening guidelines recently published by the American Cancer Society, the American Society for Colposcopy and Cervical Pathology, and the American Society for Clinical Pathology. The letter provides a proposal for a confirmatory study to supplement data previously provided to the agency. In the meeting, the company hopes to gain agreement from the FDA on the study design. "As we finalize our plan for working with the FDA towards approval and entry into the U.S. market, our major corporate focus has been to grow international sales in markets where LuViva can be used as the primary screening test," said Gene Cartwright, chief executive officer of Guided Therapeutics. "For example, we recently achieved a major milestone with the announcement of a $10 million order for the Turkish Ministry of Health, and we continue to work with other governments to include LuViva in their national cervical cancer screening programs." "In the meantime, we will continue to pursue FDA approval and believe that the plan we put forth to the FDA is solid, addresses the agency's additional questions and will lead to approval," Mr. Cartwright said. The Company currently has regulatory approval to sell LuViva in Europe with the Edition 3 CE mark, and has marketing approvals from COFEPRIS in Mexico, Health Canada and the Singapore Health Sciences Authority, among others. Additionally, expansion efforts are ongoing in the Middle East, Asia and Latin America. About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. For the year ended Dec. 31, 2014, the Company reported a net loss attributable to common stockholders of $10.03 million on $65,000 of contract and grant revenue compared to a net loss attributable to common stockholders of $10.39 million on $820,000 of contract and grant revenue in 2013. As of June 30, 2015, the Company had $4 million in total assets, $6.7 million in total liabilities and a stockholders' deficit of $2.7 million. GUIDED THERAPEUTICS: Submits Plan to Boost Cancer Screening Rates ----------------------------------------------------------------- Guided Therapeutics, Inc., in cooperation with its distributor, Stem World Enterprises, is working with the Kenyan National Ministry of Health to help achieve First Lady Margret Kenyatta's Beyond Zero program goal of screening up to 12,000,000 Kenyan women for cervical cancer. President Uhuru Kenyatta himself has set a target of screening half the female population for cervical cancer each year. The proposal to help achieve the national target, if adopted, is to place approximately 100 LuViva Advanced Scans at all Level 4 and 5 hospitals, as described in an article in Kenya's Daily Nation. The plan is to screen more than 1,000,000 women in the first year, and expand the program in years two, three and four. Additionally, several counties that maintain their own hospitals would implement a complementary screening program with LuViva. The first county to implement the program, if accepted, would be Nairobi County Health Services Sector, which has plans to screen approximately 10,800 women per month. The Company is awaiting the final response from the government regarding the proposal. "We are pleased to have made the proposal to the Ministry of Health, Beyond Zero and the counties to bring the latest in early cervical cancer detection technology to the women of Kenya," said Gene Cartwright, CEO and president of Guided Therapeutics. "President Kenyatta's goal of screening fifty percent of Kenyan women annually will have a highly positive effect that will result in a significant reduction in the rate of cervical cancer." "This proposal is a real opportunity to bring new, impactful technology that produces an instant result, while avoiding the logistics issues that plague lab tests, so treatment can occur immediately, if necessary," said Alphonce Omondi, CEO of Stem World. "The President's goal and First Lady's determination to eradicate cervical cancer is something we are pleased to be a part of and support." Cervical cancer is the leading cause of cancer deaths among women in Kenya, according to the MOH. According to the World Health Organization, there are 10.32 million women in Kenya at risk of developing cervical cancer. Every year, approximately 2,454 women are diagnosed with cervical cancer and 1,676 die; the largest proportion of deaths is concentrated in Nairobi County. It is estimated that there are 15 new cases of cervical cancer diagnosed each week in Nairobi alone. These statistics mean that an estimated 12.7 women out of every 100,000 are affected. About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. For the year ended Dec. 31, 2014, the Company reported a net loss attributable to common stockholders of $10.03 million on $65,000 of contract and grant revenue compared to a net loss attributable to common stockholders of $10.39 million on $820,000 of contract and grant revenue in 2013. As of June 30, 2015, the Company had $4 million in total assets, $6.7 million in total liabilities and a stockholders' deficit of $2.7 million. GULFMARK OFFSHORE: S&P Cuts Corp. Credit Rating to 'B-' ------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Houston-based GulfMark Offshore Inc. to 'B-' from 'B+'. The outlook is stable. At the same time, S&P lowered the issue-level ratings on the company's unsecured notes to 'B' (one notch above the corporate credit rating) from 'B+'. S&P revised the recovery rating on the company's unsecured notes to '2' from '3', indicating its expectation of substantial (high end of the 70% to 90% range) recovery in the event of payment default. "The downgrade on Gulfmark reflects our expectation that the company's utilization and dayrates will remain very weak through at least 2016 due to a global oversupply of offshore support vessels as well as weaker demand for the vessels due to decreased offshore drilling given the rapid decline in oil prices," said Standard & Poor's credit analyst Stephen Scovotti. As a result, S&P expects the company's credit measures in 2015 and 2016 to materially deteriorate in comparison to 2014. The revision of S&P's recovery ratings to '2' from '3' is a result of a reduction in secured debt in front of unsecured debt in S&P's default scenario, given the company's recent amendment to its credit facility. S&P considers GulfMark's business risk profile to be "fair" and its financial risk profile to be "highly leveraged." S&P views liquidity as "adequate." The stable outlook reflects S&P's expectation that although industry conditions will remain weak through at least 2016, S&P expects the company to maintain what it considers to be "adequate" liquidity. S&P could lower the ratings if it viewed liquidity as "less than adequate" or S&P viewed the company's leverage as unsustainable, such that S&P expected FFO to debt to remain well below 12% for an extended period. This could occur if dayrates and utilization for the company's OSV's weaken beyond S&P's expectations. S&P could raise the ratings if the company's leverage improves such that S&P expects FFO to debt to be about 12%. This could occur if industry conditions improve, causing day rates and utilization to improve. HILLVIEW, KY: S&P Lowers Rating on GO Debt to 'B-' -------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its rating on Hillview, Ky.'s general obligation (GO) debt five notches to 'B-' from 'BB+' and placed the rating on CreditWatch with negative implications. "The downgrade and CreditWatch placement follow the city's move to file for Chapter 9 bankruptcy on Aug. 20, 2015," said Standard & Poor's credit analyst Scott Nees. Hillview's Chapter 9 filing stems from mounting costs related to an adverse egal judgment against the city regarding a land sale to Truck America Training. In 2012, a Bullitt County Circuit Court jury sided with Truck America and assessed damages against the city of $11.4 million plus interest, a decision affirmed by the Kentucky Court of Appeals in March 2014. The city subsequently filed a motion for discretionary appeal with the state supreme court. The court elected not to hear the case in March 2015, leaving the city with no further legal recourse and precipitating the Chapter 9 filing. The original $11.4 million settlement had been accruing interest at a 12% annual rate, and S&P understands that the amount the city owes has risen to approximately $15 million. Carrying charges on Hillview's outstanding GO debt total 6% of the city's annual budget of approximately $2.6 million. "The CreditWatch with negative implications reflects our view of the situation as Hillview waits for the bankruptcy court to either approve or deny the bankruptcy petition," said Mr. Nees. If it approves the petition, S&P will lower the rating as it would likely increase the probability of default. If the court does not approve the petition, S&P will review the city's options for the liability and take rating action as needed. Standard & Poor's will continue to monitor developments and take rating action as needed. While Hillview's financial and economic position remain largely the same as in S&P's last review in February 2015, given the changes that have transpired with the bankruptcy filing, S&P considers the city's access to the capital markets weaker, bringing its liquidity score down to weak from adequate. IMH FINANCIAL: Reports Second Quarter 2015 Results -------------------------------------------------- IMH Financial Corporation has filed its quarterly report on Form 10-Q for the period ended June 30, 2015, with the Securities and Exchange Commission on Aug. 13, 2015. Adjusted EBITDA for the three months ended June 30, 2015, was $7.5 million or $0.49 per basic common share and $0.27 per diluted common share, compared to adjusted EBITDA of $4.4 million or $0.28 per common share for the same period in 2014. "The Company had a strong second quarter," said Lawrence Bain, CEO and Chairman of IMH, "exceeding both budget and prior year results. While our hotel assets continue to contribute the bulk of our operating revenues, we expect that the extensive renovation project at our Sedona properties, which we scheduled to undertake during the third quarter - typically the slowest season for those hotels -- will adversely affect our revenues in that quarter. The Company's second quarter results also reflect our successful efforts to achieve significant recoveries from various loan guarantors. We are very pleased to recognize the fruits of our enforcement and recovery efforts and are working to maximize the monetization of these assets. Finally, we have made substantial progress in the development of our multifamily project in Minnesota and are on track to complete construction and begin leasing by the middle of the third quarter of 2015." Net income attributable to common shareholders for the three months ended June 30, 2015, was $3.5 million compared to a net loss attributable to common shareholders of $1.5 million for the same period in 2014. As of June 30, 2015, the Company had $205.91 million in total assets, $112.83 million in total liabilities, $28.46 million in redeemable convertible preferred stock, and $64.62 million in total stockholders' equity. About IMH Financial Scottsdale, Ariz.-based IMH Financial Corporation was formed from the conversion of IMH Secured Loan Fund, LLC, or the Fund, a Delaware limited liability company, on June 18, 2010. The conversion was effected following a consent solicitation process pursuant to which approval was obtained from a majority of the members of the Fund to effect the Conversion Transactions and involved (i) the conversion of the Fund from a Delaware limited liability company into a Delaware corporation named IMH Financial Corporation, and (ii) the acquisition by the Company of all of the outstanding shares of the manager of the Fund Investors Mortgage Holdings Inc., or the Manager, as well as all of the outstanding membership interests of a related entity, IMH Holdings LLC, or Holdings on June 18, 2010. IMH Financial reported a net loss attributable to common shareholders of $39.5 million in 2014, a net loss attributable to common shareholders of $26.2 million in 2013 and a net loss attributable to common shareholders of $32.2 million in 2012. INSITE VISION: Considers Unsolicited Purchase Proposal Superior --------------------------------------------------------------- InSite Vision Inc. announced that its Board of Directors determined that the previously announced unsolicited offer from a multi-national pharmaceutical company to acquire InSite for $0.25 per share in an all-cash transaction constitutes a "Company Superior Proposal" as defined in InSite's previously announced definitive agreement with QLT Inc. dated as of June 8, 2015, as amended. Under the terms of the QLT merger agreement, QLT would acquire InSite in an all-stock transaction in which shareholders of InSite will receive 0.048 QLT shares for each InSite share they hold. At a special meeting on August 20, in good faith and after consultation with its independent financial and legal advisors, the InSite Board of Directors determined that the Bidder's unsolicited offer of $0.25 per share was a Company Superior Proposal as defined in the QLT merger agreement. The Bidder supplemented its proposal with a definitive merger agreement and definitive loan documents that the Bidder has indicated it is prepared to execute upon InSite's termination of the QLT merger agreement. Under the loan documents, the Bidder would lend InSite sufficient funds for InSite to pay off its existing loan from QLT and to operate InSite's business through the end date of the definitive merger agreement. InSite has notified QLT of the Board of Directors' determination, and pursuant to the QLT merger agreement, QLT has the option until 5:00 p.m. PDT, on Wednesday, Aug. 26, 2015, to negotiate a possible amendment of that agreement to match or exceed the Bidder's offer. InSite is required, and intends to, negotiate in good faith with QLT during the Negotiation Period. InSite is not permitted to enter into the Bidder's merger agreement or to change its recommendation in favor of the QLT transaction unless, at the end of the Negotiation Period, the InSite Board of Directors has determined that the Bidder's offer continues to be a “Company Superior Proposal." The Bidder has stated that its offer will remain outstanding until the expiration of the Negotiation Period and any additional days thereafter necessary for the Bidder and InSite to enter into the definitive agreements provided by the Bidder. Under the QLT merger agreement, InSite would be required to pay a $1,170,000 termination fee to QLT if the InSite Board of Directors terminates the QLT merger agreement in favor of an agreement with the Bidder. The Bidder has agreed to pay the termination fee to QLT on InSite's behalf in that event. InSite would be required to repay the Bidder for the QLT termination fee under certain circumstances in which InSite would be required to pay a termination fee to the Bidder in connection with a termination of the Bidder's merger agreement. At this time, InSite remains subject to the QLT merger agreement and the InSite Board of Directors has not changed its recommendation in support of the QLT transaction, the existing QLT merger agreement, or its recommendation that InSite's stockholders adopt the QLT merger agreement. There can be no assurance that a transaction with the Bidder will result from the Bidder's offer, or that any other transaction will be consummated. There can be no assurance that QLT will seek to negotiate with InSite or will make a revised offer. InSite Vision Based in Alameda, California, InSite Vision Incorporated (OTCBB: INSV) -- http://www.insitevision.com/-- is committed to advancing new and superior ophthalmologic products for unmet eye care needs. The company's product portfolio utilizes InSite Vision's proven DuraSite(R) bioadhesive polymer core technology, a platform that extends the duration of drug retention on the surface of the eye, thereby reducing frequency of treatment and improving the efficacy of topically delivered drugs. Burr Pilger Mayer, Inc., in E. Palo Alto, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's recurring losses from operations, available cash balance and accumulated deficit raise substantial doubt about its ability to continue as a going concern. Insite Vision reported net income of $26.8 million in 2014 compared to net income of $5.7 million in 2013. As of June 30, 2015, the Company had $4.6 million in total assets, $19.2 million in total liabilities and a $14.6 million total stockholders' deficit. IRONSTONE GROUP: Incurs $66,000 Net Loss in Second Quarter ---------------------------------------------------------- Ironstone Group, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $66,161 for the three months ended June 30, 2015, compared to a net loss of $74,451 for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $142,930 compared to a net loss of $133,975 for the same period during the prior year. As of June 30, 2015, the Company had $2.98 million in total assets, $1.86 million in total liabilities and $1.12 million in total stockholders' equity. "[T]he Company has net losses and has a negative cash flow from operations. If necessary, the Company may seek to sell additional debt or equity securities, or enter into new credit facilities. The Company cannot make assurances that it will be able to complete any financing or liquidity transaction, that such financing or liquidity transaction will be adequate for the Company’s needs, or that a financing or liquidity transaction will be completed in a timely manner. Furthermore, the Company may seek to sell its marketable securities to meet its operating needs. However, the fair value of these marketable securities fluctuates and may not be adequate for the Company's needs. Management also believes it will be able to renew its line of credit with the lender with similar terms to the recently expired line of credit. If the line of credit is not renewed, management may liquidate securities to satisfy its obligations," according to the filing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/DX5r5K About Ironstone Group San Francisco, Calif.-based Ironstone Group, Inc., and subsidiaries have no operations but are seeking appropriate business combination opportunities. Ironstone reported a net loss of $259,000 for the year ended Dec. 31, 2014, compared to a net loss of $170,000 for the year ended Dec. 31, 2013. Burr Pilger Mayer, Inc., in San Francisco, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has recurring net losses and negative cash flows from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. ISTAR FINANCIAL: Changes Name to "iStar Inc." --------------------------------------------- The company amended its charter on Aug. 17, 2015, to change its name from iStar Financial Inc. to iStar Inc., according to a regulatory filing with the Securities and Exchange Commission. About iStar Financial New York-based iStar Financial Inc. (NYSE: SFI) provides custom- tailored investment capital to high-end private and corporate owners of real estate, including senior and mezzanine real estate debt, senior and mezzanine corporate capital, as well as corporate net lease financing and equity. The Company, which is taxed as a real estate investment trust, provides innovative and value added financing solutions to its customers. iStar Financial reported a net loss allocable to common shareholders of $33.72 million in 2014, a net loss allocable to common shareholders of $155.76 million in 2013 and a net loss allocable to common shareholders of $272.99 million in 2012. As of June 30, 2015, iStar Financial had $5.6 billion in total assets, $4.4 billion in total liabilities, $12.6 million in redeemable noncontrolling interests, and $1.1 billion in total equity. * * * As reported by the TCR on June 26, 2014, Fitch Ratings had affirmed the Issuer Default Rating (IDR) of iStar Financial at 'B'. The 'B' IDR is driven by improvements in the company's leverage, continued demonstrated access to the capital markets and new sources of growth capital and material reductions in non- performing loans (NPLs). As reported by the TCR on Oct. 5, 2012, Standard & Poor's Ratings Services affirmed its 'B+' long-term issuer credit rating on iStar Financial. In October 2012, Moody's Investors Service upgraded the corporate family rating to 'B2' from 'B3'. The current rating reflects the REIT's success in extending near term debt maturities and improving fundamentals in commercial real estate. The ratings on the October 2012 senior secured credit facility takes into account the asset coverage, the size and quality of the collateral pool, and the term of facility. ITUS CORPORATION: Incurs $1.6 Million Net Loss in June 30 Qtr. -------------------------------------------------------------- ITUS Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.60 million on $95,000 of total revenue for the three months ended July 31, 2015, compared to net income of $411,001 on $1.18 million of total revenue for the same period a year ago. For the nine months ended July 31, 2015, the Company reported a net loss of $86,630 on $9.25 million of total revenue compared to a net loss of $6.45 million on $2.29 million of total revenue for the same period during the prior year. As of July 31, 2015, the Company had $10.27 million in total assets, $4.28 million in total liabilities and $5.99 million in total stockholders' equity. "Based on currently available information as of August 18, 2015, we believe that our existing cash, cash equivalents, short-term investments and expected cash flows from licensing and other potential sources of cash flows will be sufficient to enable us to continue our business activities for at least 12 months. However, our projections of future cash needs and cash flows may differ from actual results. If current cash on hand, cash equivalents, short term investments and cash that may be generated from our business operations are insufficient to satisfy our liquidity requirements or if we elect to purchase assets or a business for cash, we may seek to sell equity securities or obtain loans from various financial institutions where possible. The sale of additional equity securities or convertible debt could result in dilution to our stockholders. "We can give no assurance that we will generate sufficient cash flows in the future to satisfy our liquidity requirements or sustain future operations, or that other sources of funding, such as sales of equity or debt, would be available, if needed, on favorable terms or at all. If we cannot obtain such funding if needed or if we cannot sufficiently reduce operating expenses, we would need to curtail or cease some or all of our operations," the Company stated in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/QZegBI About ITUS Corporation ITUS Corp. -- http://www.ITUScorp.com/-- develops and acquires patented technologies for the purposes of patent monetization and patent assertion. The company currently has 10 patent portfolios in the areas of Key Based Web Conferencing Encryption, Encrypted Cellular Communications, E-Paper(R) Electrophoretic Display, Nano Field Emission Display ("nFED"), Micro Electro Mechanical Systems Display ("MEMS"), Loyalty Conversion Systems, J-Channel Window Frame Construction, VPN Multicast Communications, Internet Telephonic Gateway, and Enhanced Auction Technologies. CopyTele changed its name to "ITUS Corporation" on Sept. 2, 2014, to reflect the Company's change in its business operations. ITUS Corporation reported a net loss of $9.60 million on $3.66 million of total revenue for the year ended Oct. 31, 2014, compared to a net loss of $10.08 million on $389,000 of total revenue for the year ended Oct. 31, 2013. The Company also reported a net loss of $4.25 million for the year ended Oct. 31, 2012, and a net loss of $7.37 million for the year ended Oct. 31, 2011. J. CREW: Bank Debt Trades at 18% Off ------------------------------------ Participations in a syndicated loan under which J. Crew is a borrower traded in the secondary market at 82.19 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents an increase of 0.28 percentage points from the previous week, The Journal relates. J. Crew pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on February 27, 2021. Moody's rates the loan 'B2' and Standard & Poor's gave a 'B-' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. KATANGIAN INVESTMENT: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Katangian Investment Properties, LLC 1141 S. Taylor Avenue Montebello, CA 90640 Case No.: 15-23046 Chapter 11 Petition Date: August 19, 2015 Court: United States Bankruptcy Court Central District of California (Los Angeles) Debtor's Counsel: Eric S Pezold, Esq. SNELL & WILMER L.L.P. 600 Anton Blvd Ste 1400 Costa Mesa, CA 92626 Tel: 714-427-7000 Fax: 714-427-7799 Email: epezold@swlaw.com Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million The petition was signed by John Katangian, managing member. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. KB HOME: Fitch Affirms 'B+' IDR & Sr. Unsecured Rating ------------------------------------------------------ Fitch Ratings has affirmed KB Home's (NYSE: KBH) Issuer Default Rating (IDR) at 'B+' and senior unsecured rating at 'B+/RR4'. The Rating Outlook is Stable. KEY RATING DRIVERS The ratings for KBH are based on the company's geographic diversity, customer and product focus, conservative building practices and effective utilization of return on invested capital criteria as a key element of its operating model. The company did a good job in reducing its inventory exposure and generating positive operating cash flow during the severe industry downturn. Since its peak in the third quarter of 2006 (3Q06), homebuilding debt has been reduced from $7.89 billion to $2.82 billion. Early in the recovery KBH was somewhat conservative in committing to incremental land purchases. It has accelerated its spending more recently but should not become stressed so long as it maintains its minimum return parameters for real estate that it purchases. If the economy and housing were to experience a downturn in 2015 or 2016, KBH has access to the liquidity to sustain itself, primarily using its current cash position and revolving credit facility (RCF). The ratings and Outlook also reflect the following events: The housing recovery has continued into 2015 and should persist through the balance of this year and at least 2016; KBH is successfully mining the trade-up market and more affluent first-time buyers (note the 6.7% increase in average sales price so far in 2015); the South Edge legal issues and liabilities have been dealt with; operating comparisons so far in 2015 are improved (especially deliveries, ASP and unit dollar backlog); and perhaps most important the company has been successful in refinancing or paying off the $1 billion of debt that was scheduled to mature in 2014 and 2015. Despite the slow start to 2015, financial results should gain considerable strength in the second half of the fiscal year leading to improvement in profitability and leverage for the full year. Nevertheless, the company does continue to lag its peers in certain operational and financial categories. The ratings reflect KBH's business model and marketing prowess. The ratings also take into account its leadership role in constructing energy-efficient homes, its reemphasis of the value-engineered Open Series of home designs, its conservative building practices, its capital structure and the cyclicality of the U.S. housing market. THE INDUSTRY Housing metrics increased in 2014 due to more robust economic growth during the last three quarters of the year (prompted by improved household net worth, industrial production and consumer spending), and consequently acceleration in job growth (as unemployment rates decreased to 6.2% for 2014 from an average of 7.4% in 2013), despite modestly higher interest rates, as well as more measured home price inflation. A combination of tax increases and spending cuts in 2013 shaved about 1.5pp off annual economic growth, according to the Congressional Budget Office. Many forecasters estimate the fiscal drag in 2014 was only about 0.25%. Single-family starts in 2014 improved 4.8% to 648,000 as multifamily volume grew 15.6% to 355,000. Thus, total starts in 2014 were 1.003 million. New home sales were up a modest 1.6% to 436,000, while existing home volume was off 2.9% to 4.940 million largely due to fewer distressed homes for sale and limited inventory. New home price inflation moderated in 2014, at least partially because of higher interest rates and buyer resistance. Average new home prices, as measured by the Census Bureau, rose 6.4% in 2014, while median home prices advanced approximately 5.4%. Housing activity is likely to ratchet up more sharply in 2015 with the support of a steadily growing economy throughout the balance of the year. Considerably lower oil prices should restrain inflation and leave American consumers with more money to spend. The unemployment rate should continue to move lower (average 5.3% in 2015). Credit standards should steadily, moderately ease throughout 2015. Demographics should be more of a positive catalyst. More of those younger adults who have been living at home should find jobs and these 25-35-year-olds should provide some incremental elevation to the rental and starter home markets. Single-family starts are forecast to rise about 12.5% to 729,000 in 2015 as multifamily volume expands 7.3% to 381,000. Total starts would be in excess of 1.1 million. New home sales are projected to increase 20% to 523,000. Existing home volume is expected to approximate 5.152 million, up 4.3%. New home price inflation should further taper off with higher interest rates and the mix of sales shifting more to first-time homebuyer product. Average and median home prices should increase 3.0%-3.5%. Challenges remain, including the potential for higher interest rates and restrictive credit qualification standards. SLOW START TO 2015 KBH's total revenues expanded 18.4% to $1.203 billion in 1H15. Homebuilding revenues increased 18.6% to $1.199 billion as home deliveries rose 5.8% to 3,380 and the average selling price increased 6.7% to $334,200. Homebuilding gross profit margins (excluding land option charges) dropped 312 basis points (bps) to 15.25% during 2015. The sharp year-over-year (YOY) decline in the housing gross profit margin was primarily due to higher land and construction costs, increased pricing pressure in certain markets, start-up field costs associated with new community openings, and an increase in the amortization of previously capitalized interest. SG&A expense as a percentage of homebuilding sales declined from 13.14% to 12.48% for the first six months of 2015. The company reported homebuilding operating income, before real estate charges, of $33.2 million in 2015, which compares to a profit of $52.8 million for the first two quarters of 2014. Corporate pretax income (before charges) was $24.2 million for 1H15 vs. a profit of $38.5 million during the same period in 2014. Leverage (debt-to-LTM EBITDA) rose to 11.2x at May 31, 2015 from 10x at Nov. 30, 2014. Interest coverage at the end of 2Q15 was 1.4x, down from 1.5x at year-end 2014. LIQUIDITY AND CAPITAL ISSUES The company ended 2Q15 with $439.92 million in unrestricted cash and equivalents and $27.21 million in restricted cash. As of May 31, 2015, the company had a $200 million senior unsecured RCF that was to mature on Mach 12, 2016. The credit facility contained an uncommitted accordion feature under which its aggregate principal amount could be increased up to $300 million under certain conditions and the availability of additional bank commitments, as well as a sublimit of $100 million for the issuance of letters of credit (LOC), which may be used in combination with or to replace KBH's LOC facilities. As of May 31, 2015, there were no cash borrowings. LOCs outstanding under the credit facility was $0.2 million. KBH had $199.8 million available for cash borrowings, and up to $100 million of that amount available for the issuance of LOCs. On Aug. 7, 2015, KBH entered into an amended and restated revolving loan agreement that increased the commitment under the unsecured RCF from $200 million to $275 million and extended its maturity from March 2016 to August 7, 2019. The amended facility contains an accordion feature under which the aggregate principal amount of available loans may be increased to up to $450 million under certain circumstances, so long as additional lender commitments are obtained. The amended credit facility includes a $137.5 million sublimit for LOCs. At the closing, KBH had approximately $2.6 million in LOCs and no loans outstanding under the existing credit facility. KBH maintains LOC facilities with various financial institutions to obtain LOCs in the ordinary course of operating KBH's business. As of May 31, 2015, the company had $26.8 million outstanding under the LOC facilities. KBH had $2.82 billion of debt outstanding as of May 31, 2015. The company's debt maturities are well-laddered, with about 20% of its senior notes (as of May 31, 2015) maturing through 2018. Shareholders' equity totaled $1.62 billion at the end of 2Q15. The company regularly accesses the capital markets and on Feb. 17, 2015 KBH completed a public issuance of $250 million in aggregate principal amount of 7.625% senior notes due 2023. The company used a portion of the net proceeds of approximately $247 million from this issuance to retire the remaining $199.9 million in aggregate principal amount of its 6.25% senior notes due 2015 at their maturity on June 15, 2015. KBH also did a public issuance of 7,986,111 shares of common stock for net cash proceeds of $137 million during the May 2014 quarter. Proceeds from these offerings were used for general corporate purposes, including land acquisition and land development. HOMEBUILDING KBH is primarily a single-family homebuilder, and ranked as the fifth largest homebuilder in the U.S. in 2008 through 2013, based on home closings. It ranked sixth in 2014. KBH operates in four regions comprising 10 states serving 40 major markets. The company delivered its first homes in California in 1963, Nevada in 1993, Colorado in 1994, Texas in 1996, Arizona in 1998, Florida in 2001, North Carolina in 2003, and greater Washington D.C. (Maryland/Virginia) in 2005. At present, the company is most heavily weighted to the California and Texas markets. KBH has typically focused on entry-level homebuyers and, to a lesser extent, on first-step move-up buyers in the U.S. In 2014 and so far in 2015, trade-up buyers and more affluent first-time buyers dominated the sales mix; 56% of buyers were first time in 2Q15. The 1H15 average price was $334,200 for 3,380 homes delivered. The average price varies considerably by market, ranging from $237,900 in the Central region to $565,500 on the West Coast (California) during 1H15. KBH employs what it calls its KBnxt operational business model. This strategy includes regular detailed product preference surveys, primarily acquiring partially or fully developed and entitled land in markets with high growth potential. Construction is generally begun only after a purchase contract has been signed, establishing an even flow of production, pricing homes to compete with existing homes and using design centers to customize homes to the preferences of homebuyers. KBH strives to be among the top five builders or, in very large markets, top 10 homebuilders, in order to have access to the best land and subcontractors. REAL ESTATE At the end of 2Q15, KBH controlled 49,905 lots, down 13% from the end of 2Q14 and a 74.7% drop from a peak of 197,000 lots at the end of 1Q06 (February 2006). Based on latest 12 month (LTM) closings, the company controlled 6.7 years of land (up from 5.1 years at the end of 2005); KBH has 5.6 years of owned land. The current options share of total lots controlled (17.5%) is down sharply from the peak of 53.7% (4Q05). The company is expected to maintain substantial land spending this year. KBH spent $454.7 million on land and development for the first six months of the year, down from $859.6 million spent the year earlier. For the full year Fitch estimates that the company will expend approximately $1.1 billion - $1.2 billion on real estate and development activities. KBH invested $1.46 billion in land and development activities in 2014, $1.14 billion in 2013, and $564.9 million in 2012. Unlike most other builders within its coverage, Fitch expects KBH could be cash flow positive in 2015. The company was negative CFFO by $48.9 million in the May 2015 quarter and on an LTM basis was CFFO negative by $212.1 million. In 2014, 2013, 2011 and 2010, the company was negative CFFO by $630.6 million, $443.4 million, $347.5 million and $134 million, respectively. KBH reported positive CFFO of $34.6 million in 2012. Fitch currently expects the company will be CFFO neutral to positive $50 million in 2015. Although KBH will again spend heavily on land and development activities this year, expenditures could decline about $300 million vs. 2014 levels. In the years ahead, KBH may again step-up its spending as the up-cycle in housing persists. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Industry single-family housing starts improve 12.5%, while new and existing home sales grow 20% and 4.3%, respectively, in 2015; -- KB Home's homebuilding revenues increase in excess of 25%. Although homebuilding EBITDA margins erode 125 bps - 150 bps this year due to higher expenses (especially land costs) and lesser home price inflation, nevertheless EBITDA increases 10.5% - 12.0%; -- The company's debt/EBITDA approximates 9.2x and interest coverage reaches about 1.6x by year-end 2015; -- KBH spends approximately $1.1 billion-$1.2 billion on land acquisitions and development activities this year; -- The company maintains an adequate liquidity position (above $500 million) with a combination of unrestricted cash and revolver availability. RATING SENSITIVITIES Future ratings and Outlooks will be influenced by broad housing market trends as well as company-specific activity, such as trends in land and development spending, general inventory levels, speculative inventory activity (including the impact of high cancellation rates on such activity), gross and net new order activity, debt levels, free cash flow trends and uses, and the company's cash position. KBH's ratings are constrained in the intermediate term because of relatively high leverage metrics. However, a positive rating action may be considered if the recovery in housing is meaningfully better than Fitch's current outlook, KBH shows continuous improvement in credit metrics, and maintains a healthy liquidity position (combination of cash and equivalents and availability on the credit facility). In particular, debt-to-EBITDA would need to approach 4x, debt-to-capitalization should approximate 55%, and interest coverage would need to exceed 4x in order to take a positive rating action. Negative rating actions could be triggered if the industry recovery dissipates or if there is a meaningful shortfall in KBH's financials (revenues, profitability) and the company maintains an overly aggressive land and development spending program that meaningfully diminishes its liquidity position (i.e. to below $300 million). FULL LIST OF RATINGS ACTIONS Fitch has affirmed the following ratings for KB Home (NYSE: KBH): -- Long-term IDR at 'B+'; -- Senior unsecured debt 'B+/RR4'. The Rating Outlook is Stable. RECOVERY RATING The Recovery Rating (RR) of 'RR4' on KBH's senior unsecured notes indicates average recovery prospects for holders of these debt issues. KBH's exposure to claims made pursuant to performance bonds and joint venture debt and the possibility that part of these contingent liabilities would have a claim against the company's assets were considered in determining the recovery for the unsecured debtholders. Fitch applied a going concern valuation analysis for this RR. KU6 MEDIA: Fails to Comply with Nasdaq's Minimum Bid Price Rule --------------------------------------------------------------- Ku6 Media Co., Ltd., disclosed that on Aug. 18, 2015, the Company received a letter from The NASDAQ Stock Market LLC notifying it that for the prior 30 consecutive business days, the Company's listed securities failed to maintain a minimum bid price of US$1 per share. Consequently, the Company failed to comply with the requirement for continued listing pursuant to NASDAQ Listing Rule 5450(a)(1). NASDAQ further stated that in accordance with NASDAQ Listing Rule 5810(c)(3)(A), the Company will be provided 180 calendar days, or until Feb. 16, 2016, to regain compliance with the MBP Rule. NASDAQ will deem the Company to have regained compliance under the MBP Rule if at any time before Feb. 16, 2016, the closing bid price for the Company's securities is at least US$1 for a minimum of ten consecutive business days. As previously disclosed by the Company, on Aug. 13, 2015, the Company received a letter from NASDAQ notifying it that for the prior 30 consecutive business days, the Company's listed securities failed to maintain a minimum market value of US$50,000,000, and the Company's publicly held securities failed to maintain a minimum market value of US$15,000,000, respectively. Consequently, deficiencies exist with regard to the requirements for continued listing pursuant to NASDAQ Listing Rule 5450(b)(2)(A) and NASDAQ Listing Rule 5450(b)(2)(C). NASDAQ further stated that in accordance with NASDAQ Listing Rules 5810(c)(3)(C) and 5810(c)(3)(D), the Company will be provided 180 calendar days, or until Feb. 9, 2016, to regain compliance with the MVLS Rule and the MVPHS Rule. NASDAQ will deem the Company to have regained compliance under the MVLS Rule if at any time before Feb. 9, 2016, the market value of the Company's listed securities closes at US$50,000,000 or more for a minimum of ten consecutive business days. NASDAQ will deem the Company to have regained compliance under the MVPHS Rule if at any time before Feb. 9, 2016, the market value of the Company's publicly held securities closes at US$15,000,000 or more for a minimum of ten consecutive business days. These notifications do not impact the listing and trading of the Company's securities at this time. However, the NASDAQ letters also state that, if the Company does not regain compliance with the MBP Rule by Feb. 16, 2016, or the MVLS Rule or the MVPHS Rule by Feb. 9, 2016, the Company will receive written notification from NASDAQ that the Company's securities are subject to delisting. The Company is reviewing its options for regaining compliance with the MBP Rule, the MVLS Rule and MVPHS Rule. There can be no assurance that the Company will be able to regain compliance with the MBP Rule, the MVLS Rule, MVPHS Rule or any other Nasdaq continued listing requirements in a timely fashion. About Ku6 Media Co., Ltd. Ku6 Media Co., Ltd. -- http://ir.ku6.com/-- is an Internet video company in China focused on User-Generated Content. Through its premier online brand and online video Web site, http://www.ku6.com/,Ku6 Media provides online video uploading and sharing service, video reports, information and entertainment in China.Through its premier online brand and online video website, www.ku6.com, Ku6 Media provides online video uploading and sharing service, video reports, information and entertainment in China. Ku6 Media reported a net loss of $10.7 million in 2014 following a net loss of $34.4 million in 2013. As of March 31, 2015, the Company had US$8.6 million in total assets, US$13.5 million in total liabilities and a US$4.9 million total shareholders' deficit. PricewaterhouseCoopers Zhong Tian LLP, in Shanghai, the People's Republic of China, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's recurring losses, negative working capital, net cash outflows, and uncertainties associated with significant changes made, or planned to be made, in respect of the Company's business model, raise substantial doubt about the Company's ability to continue as a going concern. LIME ENERGY: May Issue 178,575 Common Shares Under Incentive Plan ----------------------------------------------------------------- Lime Energy Co. filed a Form S-8 registration statement with the Securities and Exchange Commission for the purpose of registering an additional 178,575 shares of common stock, $0.0001 par value, of the Company that may be offered pursuant to the Company's 2008 Long-Term Incentive Plan. The proposed maximum aggregate offering price is $617,869. A copy of the prospectus is available at: http://is.gd/85NmLO 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. LUCA INTERNATIONAL: Gets Approval to Hire CRO, Financial Adviser ---------------------------------------------------------------- Luca Intemational Group, LLC, received court approval to hire a chief restructuring officer and financial adviser. The order, issued by U.S. Bankruptcy Judge David Jones of the U.S. Bankruptcy Court for the Southern District of Texas, authorized Luca Intemational to hire Loretta Cross of Stout Sirius Ross in connection with the Chapter 11 cases of the company and its affiliated debtors. As CRO and financial adviser, Ms. Cross is tasked to: (1) Act as the companies' sole manager; (2) Be the sole signatory on the companies' debtor-in- possession payroll account and operating accounts; (3) Take control of all passwords for any electronic banking of the companies; (4) Exercise sole authority to manage the business affairs of the companies to the exclusion of any control being exercised by the sole member, manager, and president Bingqing Yang, including, without limitation: * To make all decisions regarding the hiring and firing of personnel; * To make all decisions regarding the expenses incurred by the companies and the terms of disbursements made by the companies for same; * To issue joint interest billings to working interest owners and to collect same; * To authorize the repairs and maintenance of estate assets; * To issue Authorization for Expenditures for the purpose of conducting workovers or drilling new wells. (5) Consult all secured creditors, unsecured creditors, parties-in-interest, the U.S. trustee, the Securities Exchange Commission, any committee of creditors appointed by the court; (6) Present to the U.S. trustee all information required for the initial conference; (7) Assist bankruptcy counsel in preparing and filing schedules, statements of financial affairs and monthly operating reports; (8) Investigate and pursue all available chapter 5 causes of action and non-chapter 5 causes of action against creditors, whether they be insiders or non-insiders, members and other potential defendants; (9) Cause the companies to pay all quarterly fees of the U.S. trustee; and (10) Assist bankruptcy counsel in preparing and filing the companies' plan and disclosure statement. Luca Intemational will pay the CRO $495 per hour for her services. Ms. Cross will be assisted by SRR personnel John Baumgartner and Andrew Masotta. Mr. Baumgartner will receive $395 per hour for his services while the other personnel will receive $225 per hour, according to court filings. About Luca International Luca International Group LLC and Luca Operation, LLC, and their affiliates are engaged in the exploration and production of natural gas, petroleum and related hydrocarbons. The primary assets are located in Iberville and Ascension Parishes in Louisiana. These assets include 3 operating oil and gas wells -- Belle Grove 1, Dugas & Leblanc 1 and Jumonville 2. In addition, the assets include a water disposal well, Acosta 1, and a shut-in-oil and gas well, Jumonville 1. The Luca entities also own oil and gas leases in Texas and working interests in various locations. The Luca entities are owned by Bingqing Yang. Luca International Group and 11 related entities sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 15-34221) in Houston, Texas, on Aug. 6, 2015. The cases are assigned to Judge David R Jones. The Debtors tapped Hoover Slovacek, LLP, and BMC Group, Inc. Luca International estimated $50 million to $100 million in assets and debt. The petitions were signed by Loretta R. Cross, the CRO. M. JULIA HOOK: 10th Circ. Affirms Dismissal of Tax Suit ------------------------------------------------------- The United States Court of Appeals for the Tenth Circuit, in an order and judgment dated August 19, 2015, affirmed a district court's dismissal of an action M. Julia Hook and her husband, David L. Smith, brought to challenge their federal income tax liabilities. The case is M. JULIA HOOK, Plaintiff-Appellant, and DAVID L. SMITH, Plaintiff, v. UNITED STATES OF AMERICA, Defendant-Appellee, NO. 15-1022 (10th Circ.). A full-text copy of the Decision is available at http://is.gd/zrDukbfrom Leagle.com. MCCLATCHY CO: Announces Stock Repurchase Program ------------------------------------------------ The McClatchy Company's board of directors approved a share repurchase program that authorizes the Company to purchase up to $15 million of the Company's Class A common stock through Dec. 31, 2016. This authorization replaces a limited repurchase program of $7 million, which was announced on April 24, 2015, and covered the same time period. The stock purchases may be made from time to time in the open market or in privately negotiated transactions, in compliance with applicable state and federal securities laws. The timing and amounts of any purchases will be based on market conditions and other factors including price, regulatory requirements and capital availability. The program does not require the purchase of any minimum number of shares and may be suspended, modified or discontinued at any time without prior notice. Pat Talamantes, McClatchy's president and chief executive officer, said, "As we have reviewed our strategies for investing in digital ventures, our stock price presents us with an attractive opportunity to invest in our growth markets and digital operations through a stock buyback program. At McClatchy we have strategies to move our company forward in this ever-changing media environment and have faith in our future as a leading local digital media company in 28 strong markets across the nation. We are excited about our ability to purchase McClatchy shares at attractive prices and return value to existing shareholders." The Company also announced that on Aug. 17, 2015, it received a notice from the New York Stock Exchange that the Company's common stock is not in compliance with the NYSE's continued listing standard which requires that the average closing price of a listed company's common stock remain above $1.00 per share, calculated over a period of consecutive 30 trading-days. The NYSE notification does not affect the Company's business operations or its Securities and Exchange Commission reporting requirements and does not conflict with or cause an event of default under any of the Company's material debt agreements. Under the NYSE standards, the Company can regain compliance if, during the six-month period following receipt of the NYSE notice, on the last trading-day of any calendar month, the Company's common stock has a closing price per share and a 30 trading-day average closing share price of at least $1.00. Further, if the Company determines that it will take a curative action that requires shareholder approval, the six-month period described above will extend to shortly after such annual meeting. The Company intends to cure the price deficiency and return to compliance with the NYSE continued listing requirement within the applicable cure period. As required by the NYSE, the Company will notify the NYSE of its intent to cure. During this period, the Company's common stock will continue to be traded on the NYSE, subject to compliance with other continued NYSE listing requirements. About The McClatchy Company Sacramento, Cal.-based The McClatchy Company (NYSE: MNI) -- http://www.mcclatchy.com/-- is a media company that provides both print and digital news and advertising services. Its operations include 30 daily newspapers, community newspapers, websites, mobile news and advertising, niche publications, direct marketing and direct mail services. Its owned newspapers include, among others, the (Fort Worth) Star-Telegram, The Sacramento Bee, The Kansas City Star, the Miami Herald, The Charlotte Observer, and The (Raleigh) News & Observer. The Company holds interest in digital assets which include CareerBuilder, LLC, Classified Ventures, LLC, HomeFinder, LLC, and Wanderful Media. McClatchy Co reported net income of $374 million on $1.14 billion of net revenues for the year ended Dec. 28, 2014, compared with net income of $18.8 million on $1.21 billion of net revenues for the year ended Dec. 29, 2013. As of June 28, 2015, the Company had $1.9 billion in total assets, $1.7 billion in total liabilities and $201.9 million in stockholders' equity. * * * McClatchy carries a 'Caa1' corporate family rating from Moody's Investors Service. In May 2011, Moody's changed the rating outlook from stable to positive following the company's announcement that it closed on the sale of land in Miami for $236 million. The outlook change reflects Moody's expectation that McClatchy will utilize the net proceeds to reduce debt, including its underfunded pension position, which will reduce leverage by approximately half a turn and lower required contributions to the pension plan over the next few years. As reported by the TCR on April 2, 2014, Standard & Poor's Ratings Services affirmed all ratings on U.S. newspaper company The McClatchy Co., including the 'B-' corporate credit rating, and revised the rating outlook to stable from positive. The outlook revision to stable reflects S&P's expectation that the timeframe for a potential upgrade lies beyond the next 12 months, and could also depend on the company realizing value from its digital minority interests. MEDICURE INC: Elliott International Reports 10.4% Equity Stake -------------------------------------------------------------- Elliott International, L.P. and Elliott International Capital Advisors Inc. disclosed in a Schedule 13G filed with the Securities and Exchange Commission on Aug. 19, 2015, that they beneficially owned 1,492,669 common shares of Medicure, Inc., which represents 10.4 percent based upon 14,355,025 shares of Common Stock outstanding as of June 30, 2015. A copy of the regulatory filing is available at http://is.gd/X9AsOJ About Medicure Inc. Medicure -- http://www.medicure.com/-- is a specialty pharmaceutical company focused on the development and commercialization of therapeutics for the U.S. hospital market. The primary focus of the Company and its subsidiaries is the marketing and distribution of AGGRASTAT (tirofiban HCl) for non-ST elevation acute coronary syndrome in the United States, where it is sold through the Company's U.S. subsidiary, Medicure Pharma, Inc. Ernst & Young LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has experienced losses and has accumulated a deficit of C$127 million since incorporation and has a working capital deficiency of C$503,000 as at Dec. 31, 2014. The Company reported net income of C$1.2 million on C$5.26 million in revenue for the year ended Dec. 31, 2014. As of June 30, 2015, the Company had C$12 million in total assets, C$10.2 million in total liabilities and C$1.7 million in total equity. MIDSTATES PETROLEUM: Fails to Comply with NYSE Listing Standard --------------------------------------------------------------- Midstates Petroleum Company, Inc., received notice from the New York Stock Exchange on Aug. 13, 2015, that the Company's market capitalization and last reported stockholders equity had fallen below the NYSE's continued listing standards. The NYSE requires that a listed company's total market capitalization not be less than $50 million for a period of over 30 consecutive trading days and that its last reported stockholder equity not be less than $50 million. In accordance with NYSE procedures, the Company has 45 days from its receipt of the notice to submit a business plan to the NYSE demonstrating how it intends to regain compliance with the NYSE's continued listing standards within 18 months. The Company intends to develop and submit a business plan to bring it into compliance with the listing standards within the required timeframe. The Listings and Compliance Committee of the NYSE will then review the business plan for final disposition. In the event the Committee accepts the plan, the Company will be subject to quarterly monitoring for compliance with the business plan and the Company's compliance with other NYSE continued listing requirements. In the event the Committee does not accept the business plan, the Company will be subject to delisting procedures and suspension by the NYSE. The NYSE notification does not affect the Company's business operations or its SEC reporting requirements and does not conflict with or cause an event of default under any of the Company's material debt or other agreements. About Midstates Petroleum Company Midstates Petroleum Company, Inc. -- http://www.midstatespetroleum.com/-- is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore U.S. Midstates' drilling and completion efforts are currently focused in the Mississippian Lime oil play in Oklahoma and Anadarko Basin in Texas and Oklahoma. The Company's operations also include the upper Gulf Coast tertiary trend in central Louisiana. Midstates reported net income of $117 million on $794 million of total revenues for the year ended Dec. 31, 2014, compared to a net loss of $344 million on $470 million of total revenues for the year ended Dec. 31, 2013. As of Dec. 31, 2014, the Company had $2.47 billion in total assets, $2 billion in total liabilities and $466 million in total stockholders' equity. The Company's independent auditor, Deloittee & Touche LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that Midstates' projected debt covenant violation and resulting lack of liquidity raise substantial doubt about its ability to continue as a going concern. * * * Midstates Petroleum carries a 'B' corporate credit rating from Standard & Poor's Ratings Services. As reported by the TCR on April 8, 2013, Moody's Investors Service affirmed Midstates Petroleum's 'B3' Corporate Family Rating. N&H INVESTMENTS: 2 Suits on Hold Pending Dismissal Bid Ruling ------------------------------------------------------------- Judge William J. Lafferty III of the United States Bankruptcy Court for the Norther District of California, Oakland Division, recommended that the District Court delay any hearings on or determinations of the motions to withdraw reference currently before it with respect to two adversary proceedings pending the bankruptcy judge's decision on the motion to dismiss N&H Investments LLC's Chapter 11 case. The first adversary proceeding is Hung Nguyen, N&H Investments, LLC, Plaintiffs, v. John Richard Till, et al., Defendants, ADV. PRO. NO. 15-05050 (Bank. N.D. Calif.). A full-text copy of Judge Lafferty's Decision with respect to this adversary proceeding is available at http://is.gd/KIWuE4from Leagle.com. The second adversary proceeding is Mimi Nguyen, et al., Plaintiffs, v. Hung Nguyen, et al., Defendants, ADV. PRO. NO. 15-05058 (Bankr. N.D. Calif.). A full-text copy of Judge Lafferty's Decision with respect to this adversary proceeding is available at http://is.gd/RKaITefrom Leagle.com. The bankruptcy case is In re N&H Investments LLC, Chapter 11, Debtor, NO. 15-51552 (Bankr. N.D. Calif.). NET TALK.COM: Amends Second Quarterly Form 10-Q ----------------------------------------------- Net Talk.Com, Inc., has amended its quarterly report on Form 10-Q for the period ended June 30, 2015, which was originally filed with the Securities and Exchange Commission on Aug. 19, 2015, to: (i) amend the statements of cash flows in the financial statements; (ii) amend note 13 to the financial statements; (iii) update the status of the MagicJack Vocaltec Ltd. litigation in the legal proceedings section and note 14 to the financial statements; and (iv) amend the XBRL exhibits. A copy of the Amended Form 10-Q is available for free at: http://is.gd/CGOwI1 About Net Talk.com Based in Miami, Fla., Net Talk.com, Inc., is a telephone company, that provides, sells and supplies commercial and residential telecommunication services, including services utilizing voice over internet protocol technology, session initiation protocol technology, wireless fidelity technology, wireless maximum technology, marine satellite services technology and other similar type technologies. Net Talk.Com reported a net loss of $2.84 million on $5.06 million of net revenues for the year ended Dec. 31, 2014, compared to a net loss of $4.78 million on $6.02 million of net revenues for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $4.13 million in total assets, $13.6 million in total liabilities and a $9.51 million total stockholders' deficit. Zachary Salum Auditors P.A., in South Miami, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred significant recurring losses from operations, its total liabilities exceeds its total assets, and is dependent on outside sources of funding for continuation of its operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. NET TALK.COM: Incurs $1 Million Net Loss in Second Quarter ---------------------------------------------------------- Net Talk.com, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.02 million on $1.09 million of net revenues for the three months ended June 30, 2015, compared to a net loss of $379,960 on $1.27 million of net revenues for the same period during the prior year. For the six months ended June 30, 2015, the Company reported a net loss of $1.57 million on $2.26 million of net revenues compared to a net loss of $991,011 on $2.45 million of net revenues for the same period in 2014. As of June 30, 2015, the Company had $3.7 million in total assets, $13.9 million in total liabilities and stockholders' deficit of $10.2 million. "We have never sustained profits and our losses could continue. Without sufficient additional capital to repay our indebtedness as it matures, we may be required to significantly scale back our operations, significantly reduce our headcount, seek protection under the provisions of the U.S. Bankruptcy Code, and or discontinue many of our activities which could negatively affect our business and prospects. Our current efforts to raise capital may not be successful on terms satisfactory to the Company, or at all," the Company said in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/pyIVZS About Net Talk.com Based in Miami, Fla., Net Talk.com, Inc., is a telephone company, that provides, sells and supplies commercial and residential telecommunication services, including services utilizing voice over internet protocol technology, session initiation protocol technology, wireless fidelity technology, wireless maximum technology, marine satellite services technology and other similar type technologies. Net Talk.Com reported a net loss of $2.84 million on $5.06 million of net revenues for the year ended Dec. 31, 2014, compared to a net loss of $4.78 million on $6.02 million of net revenues for the year ended Dec. 31, 2013. Zachary Salum Auditors P.A., in South Miami, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred significant recurring losses from operations, its total liabilities exceeds its total assets, and is dependent on outside sources of funding for continuation of its operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. NIRVANA INC: Harris Beach Files Rule 2019 Statement --------------------------------------------------- Harris Beach PLLC disclosed in a court filing that it represents Comsource Inc. and Excellus Health Plan Inc. in the Chapter 11 cases of Nirvana Inc. and its affiliated debtors. Comsource is a secured creditor of Nirvana while Excellus is a possible creditor of the company or one of its affiliated debtors, according to the New York-based law firm. Harris Beach further disclosed that it does not represent any indenture trustee or committee in Nirvana's bankruptcy case. The firm made the disclosure pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure. Harris Beach can be reached at: Lee E. Woodard, Esq. Wendy A. Kinsella, Esq. Harris Beach PLLC 333 W. Washington St., Ste. 200 Syracuse, NY 13202 Telephone: (315) 423-7100 Facsimile: (315) 422-9331 Email: lwoodard@harrisbeach.com wkinsella@harrisbeach.com bkemail@harrisbeach.com About Nirvana Inc. Nirvana Inc. is a manufacturer and bottler of spring water that is captured from four natural springs on 1,600 acres of property located in the foothills of the Adirondack Mountains at Forestport, New York. Nirvana says its water is exceptionally pure and flows naturally to the surface at a temperature of 42 degrees Fahrenheit. Nirvana is a closely-held New York corporation with a principal office located at One Nirvana Plaza, Forestport, New York. Nirvana was formed on June 2, 1995 by Mozafar Rafizadeh and his brother, Mansur Rafizadeh. Nirvana, Inc., and three affiliates -- Nirvana Transport, Inc., Nirvana Warehousing, Inc. and Millers Wood Development Corp. -- sought Chapter 11 bankruptcy protection (Bankr. N.D.N.Y. Lead Case No. 15-60823) in Utica, New York, on June 3, 2015. The cases are assigned to Judge Diane Davis. The Debtor disclosed $12,498,533 in assets and $35,518,829 in liabilities as of the Chapter 11 filing. According to the docket, the Debtors' Chapter 11 plan and disclosure statement are due Oct. 1, 2015. The deadline for filing claims by governmental units is Nov. 30, 2015. The Debtors tapped Bond, Schoeneck & King, PLLC, as general counsel, and Teitelbaum & Baskin, LLC, as special counsel. OPTIM ENERGY: Proposes Sept. 9 Disclosure Statement Hearing ----------------------------------------------------------- Optim Energy, LLC, et al., asked the U.S. Bankruptcy Court for the District of Delaware to convene a hearing on Sept. 9, 2015, at 10:30 a.m. (ET), to consider approval of the disclosure statement explaining the First Amended Chapter 11 Joint Plan of Liquidation for Optim Energy, LLC and Optim Energy Twin Oaks, LP, OEM 1, LLC, Optim Energy Marketing, LLC, Optim Energy Generation, LLC, and Optim Energy Twin Oaks GP, LLC. The Debtors also propose the following plan confirmation schedule: Disclosure Statement Objection Deadline September 2, 2015 Reply in Support of Disclosure Statement September 4, 2015 Disclosure Statement Hearing September 9, 2015 Voting Record Date September 9, 2015 Plan Supplement Filing Deadline September 30, 2015 Voting Deadline October 7, 2015 Plan Objection Deadline October 7, 2015 Deadline to File Confirmation Brief October 9, 2015 Deadline to File Voting Report October 9, 2015 Confirmation Hearing October 14, 2015 The Plan incorporates a plan support agreement entered into among the Debtors, Cascade Investment, L.L.C. and ECJV Holdings, LLC, Black Walnut Mining, LLC, Lonestar Generation LLC, Major Oak Power, LLC, The Blackstone Group L.P., and Walnut Creek Mining Company. The PSA, among other things, contemplates giving Blackstone (i) a Cash payment of $3,121,899 in full satisfaction of the WC 503(b)(9) Claim; and (ii) an Allowed General Unsecured Claim in the amount of $3,932,376 for which it will receive a total Cash payment of $1,478,101 in full satisfaction of the Blackstone General Unsecured Claims. Under the PSA, Blackstone's $190 million WC Rejection Damages Claim will receive no recovery, and will be discharged under the terms of the Plan. Blackstone's Appeals will be held in abeyance pending confirmation and consummation of the Third Amended Plan and the new Plan contemplated by the PSA. Once the Plan is effective, the Appeals will be dismissed with prejudice. A full-text copy of the First Amended Disclosure Statement dated Aug. 21, 2015, is available at http://is.gd/LQn9Xi About Optim Energy Optim Energy, LLC, and its affiliates are power plant owners principally engaged in the production of energy in Texas's deregulated energy market. Optim owns and operates three power plants in eastern Texas: the Twin Oaks plant in Robertson County, Texas, the Altura Cogen plant in Harris County, Texas and the Cedar Bayou plant in Chambers County, Texas. The Altura and Cedar Bayou plants are fueled by natural gas, and the third is coal-fired. Optim Energy and its affiliates sought Chapter 11 protection from creditors (Bankr. D. Del. Lead Case No. 14-10262) on Feb. 12, 2014. The Debtors have tapped Bracewell & Giuliani LLP and Morris, Nichols, Arsht & Tunnell LLP as attorneys; Protiviti Inc. as restructuring advisors; and Prime Clerk LLC as claims agent. The Debtors' attorneys can be reahed at: MORRIS, NICHOLS, ARSHT & TUNNELL LLP Robert J. Dehney, Esq. Eric D. Schwartz, Esq. Erin R. Fay, Esq. 1201 North Market Street, 16th Floor P.O. Box 1347 Wilmington, DE 19899 Tel: (302) 658-9200 Fax: (302) 658-3989 E-mail: rdehney@mnat.com eschwartz@mnat.com efay@mnat.com Optim Energy, LLC scheduled $6.95 million in assets and $717 million in liabilities. Optim Energy Cedar Bayou 4, LLC, disclosed $184 million in assets and $718 million in liabilities as of the Chapter 11 filing. The Debtors have $713 million of outstanding principal indebtedness. The U.S. Trustee for Region 3 was unable to appoint an official committee of unsecured creditors in the Debtors' cases. Walnut Creek is represented by Michael W. Yurkewicz, Esq., at Klehr Harrisison Harvey Branzburg LLP, in Wilmington, Delaware; Paul M. Basta, P.C., Esq., Joshua A. Sussberg, P.C., Esq., and Matthew Kapitanyan, Esq., at Kirkland & Ellis LLP, in New York; and James A. Stempel, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois. Cascade Investment, L.L.C., and ECJV Holdings are represented by Margaret Whiteman Greecher, Esq., Pauline K. Morgan, Esq., and Patrick A. Jackson, Esq., at Young Conaway Stargatt & Taylor LLP, in Wilmington, Delaware; and Lindsee P. Granfield, Esq., and Jane VanLare, Esq., at Cleary Gottlieb Steen & Hamilton LLP, in New York. * * * Judge Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware on July 30, 2015, issued a findings of fact, conclusions of law and order confirming the Third Amended Joint Plan of Reorganization of Optim Energy Altura Cogen, LLC, and Optim Energy Cedar Bayou 4, LLC. The Reorganizing Debtors owned interests in and operated, in whole or in part, three power plants in eastern Texas -- one coal-fired power plant (the Twin Oaks Plant) and two gas-fired power plants (the Altura Cogen Plant and the Cedar Bayou Plant). Judge Shannon, on May 19, approved the Disclosure Statement explaining the Reorganization Plan, which provides that holders of Allowed General Unsecured Claims are being offered Cash equal to 75% of their Allowed Claims if the Class of Claims accepts the applicable Subplan, and an additional 20% in Cash for any holders that do not opt out of the release contained in Section 10.03 of the Third Amended Plan. The potential for 25% impairment cannot be characterized as artificial. There are approximately 60 to 70 holders of General Unsecured Claims against Altura Cogen (totaling approximately $800,000 to $900,000) and two holders of General Unsecured Claims against Cedar Bayou (totaling approximately $400,000 to $500,000). Each Estate has non-insider creditor classes. OXYSURE SYSTEMS: Incurs $1.2 Million Net Loss in Second Quarter --------------------------------------------------------------- Oxysure Systems, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.25 million on $1.04 million of net revenues for the three months ended June 30, 2015, compared to a net loss of $319,508 on $678,111 of net revenues for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $2.59 million on $1.67 million of net revenues compared to a net loss of $695,828 on $1.03 million of net revenues for the same period during the prior year. As of June 30, 2015, the Company had $5.28 milllion in total assets, $2.28 million in total liabilities and $2.99 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/12t89G About OxySure Systems Frisco, Tex.-based OxySure Systems, Inc. (OTC QB: OXYS) is a medical technology company that focuses on the design, manufacture and distribution of specialty respiratory and emergency medical solutions. The company pioneered a safe and easy to use solution to produce medically pure (USP) oxygen from inert powders. The Company owns nine issued patents and patents pending on this technology which makes the provision of emergency oxygen safer, more accessible and easier to use than traditional oxygen provision systems. Oxysure Systems reported a net loss of $2.75 million in 2014 following a net loss of $712,000 in 2013. Sadler, Gibb & Associates, LLC, in Salt Lake City, UT, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company had accumulated losses of $18.0 million as of Dec. 31, 2014 which raises substantial doubt about its ability to continue as a going concern. PATRIOT COAL: Tavenner & Beran Okayed as Committee's Local Counsel ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Virginia authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Patriot Coal Corporation, et al., to retain Tavenner & Beran, PLC, as its local counsel. Tavenner & Beran is expected to, among other things: a) assist, advise and represent the Committee in analyzing the Debtors' assets and liabilities, investigating the extent and validity of liens and participating in and reviewing any proposed asset sales, any asset dispositions, financing arrangements and cash collateral stipulations or proceedings; b) assist, advise and represent the Committee in any manner relevant to reviewing and determining the Debtors' rights and obligations under leases and other executory contracts; c) assist, advise and represent the Committee in investigating the acts, conduct, assets, liabilities and financial condition of the Debtors, the Debtors' operations and the desirability of the continuance of any portion of those operations, and any other matters relevant to these cases or to the formulation of a plan. The Committee has been advised that the rates of Tavenner & Beran for the services rendered in the cases will be at the same rates charged to its clients for non-bankruptcy work. The firm's services will be provided at rates in the range of $395 and $410 per hour for partners and $100 to $105 for paralegals. For this engagement, the matter will be handled primarily by: Lynn L. Tavenner $410 Paula S. Beran $395 Tavenner & Beran also will seek reimbursement of all out-of-pocket disbursements. To the best of the Committee's knowledge, Tavenner & Beran is a "disinterested person" as that term is defined in Section 101(14 of the Bankruptcy Code. The firm can be reached at: Lynn L. Tavenner, Esq. Paula S. Beran, Esq. TAVENNER & BERAN, PLC 20 North Eighth Street, Second Floor Richmond, VA 23219 Tel: (804)783-8300 Fax: (804) 783-0178 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. Patriot Coal estimated more than $1 billion in assets and debt. 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. The Committee is represented by Morrison & Foerster LLP as its counsel, and Tavenner & beran, PLC, as its local counsel. Jefferies LLC serves as its investment banker. The directed the U.S. Trustee to form an official committee of retirees at the behest of Patriot Coal Non-Union Retiree VEBA. * * * The deadline to file bids for the Debtors' assets is Sept. 4, 2015, at 5:00 p.m. An auction will take place on Sept. 9, at 10:00 a.m. Patriot Coal 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. 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: Bank Debt Trades at 24% Off ------------------------------------------- Participations in a syndicated loan under which Peabody Energy Power Corp is a borrower traded in the secondary market at 76.18 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents an increase of 0.48 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. Moody's rates the loan 'B1' and Standard & Poor's gave a 'BB-' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. PHOTOMEDEX INC: No!No! Hair Breaks Sales Record in UK ----------------------------------------------------- PhotoMedex, Inc., announced that no!no! continues to break sales records with the launch of the MICRO no!no!, the latest innovation. These sales records continue to be broken even after seven years on UK home shopping. On August 16, home shopping consumers in the UK purchased more than 10,000 pieces of the latest generation of no!no! hair removal technology, generating over GBP 1.1 million and representing a record for no!no! as the fastest selling unit, and selling out in only one and a half hours of live air time. The Company notes that the UK market is only 20% of the size of the U.S. market, making these results even more impressive. "August is traditionally a quiet period for home shopping sales, and this sales achievement demonstrates continued awareness and enthusiasm for the global brand," said Dr. Dolev Rafaeli, chief executive officer of PhotoMedex and president of Radiancy, Inc. "Live TV home shopping has been an incredibly important part of the marketing and sales platform for the no!no! brand. Our strategy to focus on the unique benefits of no!no!, compared with other home hair removal treatments proved to be a success. We are very pleased that eight years and hundreds of thousands of units later, the brand is still generating strong sales," Dr. Rafaeli added. As part of the one-day event, no!no! UK consumers were introduced to a brand new, edition of the popular hair removal device. The MICRO, offered in three colors -- lipstick red, midnight black and pure white -- is the latest and smallest offering in portable and simplified home-use professional hair removal technology. To date, nearly half a million no!no! Hair hair removal units have been sold through this TV shopping channel in both the UK and U.S. combined, and more than six million units have been sold worldwide. About PhotoMedex PhotoMedex, Inc., is a global health products and services company providing integrated disease management and aesthetic solutions to dermatologists, professional aestheticians, ophthalmologists, optometrists, consumers and patients. The Company provides proprietary products and services that address skin conditions including psoriasis, vitiligo, acne, actinic keratosis, photo damage and unwanted hair, as well as fixed-site laser vision correction services at our LasikPlus(R) vision centers. PhotoMedex and its subsidiaries has entered into a second amended and restated forbearance agreement with the lenders that are parties to the credit agreement dated May 12, 2014, and with JP Morgan Chase, as administrative agent for the Lenders pursuant to which the Lender have agreed to forbear from exercising their rights and remedies with respect to certain events of default from Aug. 25, 2014, until April 1, 2016, or earlier if an event of default occurs, according to a document filed with the Securities and Exchange Commission in March 2015. As of June 30, 2015, the Company had $67.7 million in total assets, $23.9 million in total liabilities and $43.8 million in total stockholders' equity. Bankruptcy Warning "If, in the future, PhotoMedex is required to obtain similar forbearance agreements as a result of our inability to meet the terms of the credit agreement, there can be no assurance that those forbearance agreements will be available on commercially reasonable terms or at all. If, as or when required, we are unable to repay, refinance or restructure our indebtedness under those credit facilities, or amend the covenants contained therein, the lenders could elect to terminate their commitments under the credit facilities and institute foreclosure proceedings against our assets. Under such circumstances, we could be forced into bankruptcy or liquidation. In addition, any additional events of default or declaration of acceleration under one of those facilities or the forbearance agreement could also result in an event of default under one or more of these agreements. Such a declaration would have a material adverse impact on our liquidity, financial position and results of operations," the Company stated in its 2014 annual report. PRESCOTT VALLEY EVENTS: Section 341 Meeting Set for Sept. 22 ------------------------------------------------------------ There's a meeting of creditors in the bankruptcy case of Prescott Valley Events Center, LLC on Sept. 22, 2015, at 9:00 a.m. at US Trustee Meeting Room, 230 N. First Avenue, Suite 102, in Phoenix, Arizona. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Prescott Valley Events Center Prescott Valley Events Center, LLC, was formed in 2005 to construct and operate a multi-purpose sports and entertainment arena known as the Prescott Valley Events Center in Prescott Valley, Arizona. The Center opened in 2006 and plays host to concerts, community events, trades shows, and sporting events, including several high school championships. Until 2014, the Center served as the home of the Arizona Sundogs (CHL) ice hockey team. The Center's seating capacity is 6,200 for concerts, 4,810 for hockey, and 5,100 for basketball. The original members of PVEC were Prescott Valley Signature Entertainment, LLC, and Global Entertainment Corporation, which each owned 50 percent of the membership interests in PVEC. PVEC sought Chapter 11 protection in Prescott, Arizona (Bankr. D. Ariz. Case No. 15-10356) on Aug. 14, 2015. The case is assigned to Judge Madeleine C. Wanslee. The Debtor tapped Carolyn J. Johnsen, Esq., and William Novotny, Esq., at Dickinson Wright PLLC, in Phoenix, as counsel. The Debtor estimated $10 million to $50 million in assets and $50 million to $100 million in debt. PRESSURE BIOSCIENCES: Transfers 1MM Restricted Shares to Everest ---------------------------------------------------------------- Pressure BioSciences Inc. closed its stock exchange agreement with Everest Investments Holdings, S.A., according to a document filed with the Securities and Exchange Commission. Pursuant to the Exchange Agreement, on Aug. 12, 2015, the Company transferred and delivered to Everest 1,000,000 restricted shares of its common stock and Everest transferred and delivered to the Company 601,500 shares of Everest Investments Holdings, S.A. valued at $500,000 based on the last sale price on the Warsaw Stock Exchange on the day prior to that transfer and delivery. The Closing Date was deemed to be Aug. 12, 2015, when the shares were transferred and delivered to the respective parties. Under the Exchange Agreement, the Company and Everest are subject to mutual lock-up provisions which provide that, for the 12 month period beginning on the date of the Exchange Agreement, each party (i) will not transfer or agree to transfer the other party's shares, (ii) will take all action reasonably necessary to prevent creditors in respect of any pledge of shares from exercising their rights under such pledge, and (iii) will not take any action that would make any representations or warranties made under the Exchange Agreement untrue or incorrect or prevent the respective party from performing any material obligations under the Exchange Agreement. About Pressure Biosciences Pressure BioSciences, Inc., headquartered in South Easton, Massachusetts, holds 14 United States and 10 foreign patents covering multiple applications of pressure cycling technology in the life sciences field. Pressure Biosciences reported a net loss applicable to common shareholders of $6.25 million on $1.37 million of revenue for the year ended Dec. 31, 2014, compared to a net loss applicable to common shareholders of $5.24 million on $1.5 million of total revenue for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $1.5 million in total assets, $4.72 million in total liabilities and a $3.22 million total stockholders' deficit. Marcum LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, noting that the Company has had recurring net losses and continues to experience negative cash flows from operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. QUALITY DISTRIBUTION: Trustee Releases Liens Securing Notes ----------------------------------------------------------- Quality Distribution, LLC, and QD Capital Corporation, each wholly owned subsidiaries of Quality Distribution, Inc., deposited with The Bank of New York Mellon Trust Company, N.A., as Trustee and as Collateral Agent, an amount equal to the outstanding principal amount of their 9.875% Second-Priority Senior Secured Notes due 2018, at a redemption price equal to 102.469%, together with accrued and unpaid interest, if any, up to Nov. 1, 2015. The Notes were issued pursuant to that certain Indenture, dated Nov. 3, 2010, by and among QD LLC, QD Capital, the Subsidiary Guarantors from time to time party thereto and The Bank of New York Mellon. Upon the receipt of the Redemption Payment on Aug. 18, 2015, (i) the Trustee acknowledged the satisfaction and discharge of the Indenture whereby any remaining restrictive covenants and events of default in the Indenture cease to have effect and (ii) the Collateral Agent released all liens securing the Notes under the Indenture. Terminates Form S-8 Prospectus On Aug. 18, 2015, Quality Distribution completed its merger with Gruden Merger Sub, Inc. ("Merger Sub"), a wholly-owned subsidiary of Gruden Acquisition, Inc. ("Parent"), pursuant to an Agreement and Plan of Merger dated as of May 6, 2015, by and among the Company, Merger Sub, and Parent. As a result of the Merger, Merger Sub merged with and into the Company, with the Company continuing as the surviving corporation in the Merger, and the Company has been acquired by and has become a wholly-owned subsidiary of Parent. The Merger became effective on Aug. 18, 2015. In connection with the Merger, the Company terminated all offers and sales of its securities registered pursuant to these Registration Statements: 1. Registration No. 333-182552, filed with the Securities and Exchange Commission on July 5, 2012, registering securities issuable pursuant Quality Distribution, Inc. 2012 Equity Incentive Plan; 2. Registration No. 333-133408, filed with the Commission on April 19, 2006, registering Common Stock issuable pursuant to the MTL, Inc. 1998 Stock Option Plan, Quality Distribution, Inc. 2003 Stock Option Plan and Quality Distribution, Inc. 2003 Restricted Stock Incentive Plan; and 3. Registration No. 333-31483, filed with the Commission on July 17, 1997, registering Common Stock issuable pursuant to the 1994 Incentive and Non-Statutory Stock Option Plan. The Company removes from registration any and all securities registered but unsold under the Registration Statements as of Aug. 18, 2015. About Quality Distribution Quality Distribution, LLC, and its parent holding company, Quality Distribution, Inc., are headquartered in Tampa, Florida. The company is a transporter of bulk liquid and dry bulk chemicals. The company's 2010 revenues are approximately $686 million. Apollo Management, L.P., owns roughly 30 percent of the common stock of Quality Distribution, Inc. As of June 30, 2015, the Company had $413 million in total assets, $436 million in total liabilities and a $22.9 million total shareholders' deficit. Bankruptcy Warning "We have substantial indebtedness and may not be able to make required payments on our indebtedness. We had consolidated indebtedness and capital lease obligations, including current maturities of $351.3 million, as of December 31, 2014. We must make regular payments under the ABL Facility, including the Term Loan, thereunder, and our capital leases and semi-annual interest payments under our 2018 Notes. The ABL will mature at the earlier of November 2019 and the date that is 91 days prior to the maturity of the Company's currently outstanding 2018 Notes or any replacement notes if the outstanding amount of such debt is above a certain threshold. The Term Loan matures on November 3, 2017 but we are subject to mandatory prepayment of the principal amount of the Term Loan in equal quarterly payments beginning as early as November 2015. The maturity date of the ABL Facility, including the Term Loan, may be accelerated if we default on our obligations. If the maturity of the ABL Facility and/or such other debt is accelerated, we may not have sufficient cash on hand to repay the ABL Facility and/or such other debt or be able to refinance the ABL Facility and/or such other debt on acceptable terms, or at all. The failure to repay or refinance the ABL Facility and/or such other debt at maturity would have a material adverse effect on our business and financial condition, would cause substantial liquidity problems and may result in the bankruptcy of us and/or our subsidiaries. Any actual or potential bankruptcy or liquidity crisis may materially harm our relationships with our customers, suppliers and independent affiliates," the Company states in its 2014 annual report. * * * As reported in the TCR on June 28, 2013, Moody's Investors Service upgraded Quality Distribution, LLC's Corporate Family Rating to 'B2' from 'B3' and Probability of Default Rating to 'B2-PD' from 'B3-PD'. The upgrade of Quality's CFR to 'B2' was largely driven by the expectation that credit metrics will improve over the next twelve to eighteen months, through a combination of EBITDA growth and debt paydowns, to levels consistent with the 'B2' rating level. The company is in the process of integrating the bolt-on acquisitions made in its Energy Logistics business sector since 2011. As reported by the TCR on July 17, 2015, Standard & Poor's Ratings Services said that it has lowered its corporate credit rating on Tampa-based transportation and logistics provider Quality Distribution Inc. to 'B-' from 'B' and removed the ratings from CreditWatch, where S&P had placed them with negative implications on May 8, 2015. "The downgrade reflects Quality Distribution's higher debt-leverage pro forma for its acquisition by Apax Partners," said Standard & Poor's credit analyst Michael Durand. RELATIVITY FASHION: Has Interim OK to Pay Prepetition Residuals --------------------------------------------------------------- The Hon. Michael E. Wiles of the U.S. Bankruptcy Court for the District of Southern New York issued an interim order authorizing Relativity Fashion, LLC, et al.'s payment of prepetition residuals and participations in the ordinary course of business. The Court authorized the Debtors to make, in the ordinary course of business, any and all residuals and participations payments, notwithstanding that the residuals and participations payments may be, in whole or in part, on account of prepetition claims, provided that no payment will be made on account of prepetition residuals and participations until a separate court order is entered authorizing the use of cash collateral for this purpose. All banks are authorized and directed to (a) receive, process, honor, and pay any and all Debits, regardless of whether the debits were issued before the Petition Date, and (b) rely on the interim court Order and on the Debtors' representations as to which debits are authorized to be honored. Any payment to be made will also be subject to the terms, conditions, requirements and budgets imposed on the Debtors under the Debtors' postpetition financing agreements, any order governing the Debtors' use of cash collateral and entry into the DIP documents, and any other order entered by the Court concerning payment of residuals or participations. The final hearing on the Debtors' motion will be held on Aug. 25, 2015, at 11:00 a.m. (Prevailing Eastern Time). About Relativity Fashion Based in New York, Relativity Fashion LLC dba M3 Relativity -- http://relativitymedia.com/-- is a privately-held entertainment company with an integrated and diversified global media platform that provides, among other things, film and television financing, production and distribution. Relativity was founded in 2004 by Ryan Kavanaugh as a films late cofinancier partnering with major studios such as Sony and Universal. In addition, the Company engages in content production and distribution, including movies, television, fashion, sports, digital and music. The Company and its affiliates filed for Chapter 11 protection on July 30, 2015 (Bankr. S.D. N.Y. Lead case No. 15-11989). Judge Michael E. Wiles presides over the Debtors' Chapter 11 cases. Craig A. Wolfe, Esq., Malani J. Cademartori, Esq., and Blanka K. Wolfe, Esq., at SHEPPARD MULLIN RICHTER & HAMPTON LLP, and Richard L. Wynne, Esq., Bennett L. Spiegel, Esq., and Lori Sinanyan, Esq., at JONES DAY, represent the Debtors in the bankruptcy cases. The Debtors reported total assets of $559.9 million, and total debts: $1.1 billion as of Dec. 31, 2014. RETROPHIN INC: May Issue 4.2 Million Shares Under Incentive Plan ---------------------------------------------------------------- Retrophin, Inc. filed a Form S-8 registration statement with the Securities and Exchange Commission for the purpose of registering 4,207,736 shares of common stock (par value $0.0001 per share), of the Company issuable under its 2015 Equity Incentive Plan. The proposed maximum aggregate offering price is $117.7 million. A full-text copy of the prospectus is available at: http://is.gd/ttBjlk About Retrophin Retrophin, Inc., develops, acquires and commercializes therapies for the treatment of serious, catastrophic or rare diseases. The Company offers Chenodal(R), a treatment for gallstones; Vecamyl(R), a treatment for moderately severe to severe essential hypertension and uncomplicated cases of malignant hypertension; and Thiola, for the prevention of kidney stone formation in patients with severe homozygous cystinuria. Retrophin reported a net loss of $111 million in 2014 following a net loss of $34.6 million in 2013. As of June 30, 2015, the Company had $425.1 million in total assets, $274.3 million in total liabilities and $150.7 million in total stockholders' equity. BDO USA, LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014. The accounting firm noted that the Company has suffered recurring losses from operations, used significant amounts of cash in its operations, and expects continuing future losses. In addition, at Dec. 31, 2014, the Company had deficiencies in working capital and net assets of $70.2 million and $37.3 million, respectively. Finally, while the Company was in compliance with its debt covenants at Dec. 31, 2014, it expects to not be in compliance with these covenants in 2015. These matters raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. SAINT MICHAEL'S MEDICAL: Gets Court Approval to Hire Prime Clerk ---------------------------------------------------------------- Saint Michael's Medical Center Inc. received court approval to hire Prime Clerk LLC as its official claims and noticing agent effective as of Aug. 10, 2015. The order, issued by U.S. Bankruptcy Judge Vincent Papalia of the U.S. Bankruptcy Court for the District of New Jersey, authorized Prime Clerk to perform noticing services and to administer the proofs of claim filed in the Chapter 11 cases of Saint Michael's and its affiliated debtors. Prime Clerk was also authorized to serve as the custodian of court records and was designated as the authorized repository for all proofs of claim. The firm is entitled to indemnification pursuant to its services agreement with Saint Michael's, according to the court filing. About Saint Michael's Medical Center Saint Michael's Medical Center, Inc., was incorporated in 2008 to acquire St. Michael's Medical Center and 2 other now defunct hospitals (Saint James Hospital and Columbus Hospital) was acquired from Cathedral Healthcare System Inc., a New Jersey nonprofit. SMMC is a second tier subsidiary of Trinity Health Corporation. The immediate sole corporate member of SMMC is Maxis Health System, a Pennsylvania not-for-profit corporation. Established by the Franciscan Sisters of the Poor in 1867, St. Michael's Medical Center is a 357- bed licensed regional tertiary-care, teaching, and research center in the heart of Newark, New Jersey's business and educational district and is accredited by The Joint Commission. On Aug. 10, 2015, SMMC Inc. and three affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey. The cases are pending before the Honorable Vincent F. Papalia, and the Debtors have requested that their cases be jointly administered under Case No. 15-24999. The Debtors tapped Cole Schotz P.C. as bankruptcy counsel; EisnerAmper LLP as financial advisor; and Prime Clerk LLC as claims and noticing agent. SMMC estimated $100 million to $500 million in assets and debt. SAINT MICHAEL'S MEDICAL: Judge Orders Appointment of Ombudsman -------------------------------------------------------------- U.S. Bankruptcy Judge Vincent Papalia of the U.S. Bankruptcy Court for the District of New Jersey ordered the U.S. trustee overseeing the Chapter 11 cases of Saint Michael's Medical Center Inc. and its affiliated debtors to appoint a patient care ombudsman. The bankruptcy judge also designated the companies' bankruptcy cases as "health care business cases" within the meaning of Section 101 (27A) of the Bankruptcy Code. About Saint Michael's Medical Center Saint Michael's Medical Center, Inc., was incorporated in 2008 to acquire St. Michael's Medical Center and 2 other now defunct hospitals (Saint James Hospital and Columbus Hospital) was acquired from Cathedral Healthcare System Inc., a New Jersey nonprofit. SMMC is a second tier subsidiary of Trinity Health Corporation. The immediate sole corporate member of SMMC is Maxis Health System, a Pennsylvania not-for-profit corporation. Established by the Franciscan Sisters of the Poor in 1867, St. Michael's Medical Center is a 357- bed licensed regional tertiary-care, teaching, and research center in the heart of Newark, New Jersey's business and educational district and is accredited by The Joint Commission. On Aug. 10, 2015, SMMC Inc. and three affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey. The cases are pending before the Honorable Vincent F. Papalia, and the Debtors have requested that their cases be jointly administered under Case No. 15-24999. The Debtors tapped Cole Schotz P.C. as bankruptcy counsel; EisnerAmper LLP as financial advisor; and Prime Clerk LLC as claims and noticing agent. SMMC estimated $100 million to $500 million in assets and debt. SALADWORKS LLC: Plan Filing Exclusivity Extended to Sept. 17 ------------------------------------------------------------ Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for the District of Delaware extended SW Liquidation, LLC's exclusive plan filing period through and including Sept. 17, 2015, and its exclusive solicitation period through and including Nov. 13, 2015. Judge Silverstein ruled that if the Court enters a final order denying confirmation of the Debtor's Chapter 11 Plan of Liquidation and the Debtor seeks to further extend the Exclusive Periods, the Official Committee of Unsecured Creditors may either (i) seek to terminate any further extended Exclusive Periods or (ii) object to any request to further extend the Exclusive Periods, as applicable, and have that motion or objection heard on a shortened notice. About Saladworks, LLC Developed in 1986, Saladworks, LLC, is the first and largest fresh-salad franchise concept in the United States. From its beginning in the Cherry Hill Mall, Saladworks quickly expanded to 12 additional locations in area malls and soon thereafter began franchising. The company has franchise agreements with 162 different franchisees. The equity owners are J Scar Holdings, Inc., (70%) and JVSW LLC (30%). Saladworks, LLC, sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 15-10327) on Feb. 17, 2015. The case assigned to Judge Laurie Selber Silverstein. The Debtor has tapped Landis Rath & Cobb LLP as counsel; SSG Advisors, LLC, as investment banker; EisnerAmper LLP, as financial advisor; and Upshot Services LLC, as claims and noticing agent. Saladworks, LLC, disclosed $2,303,632 in assets and $14,220,722 in liabilities as of the Chapter 11 filing. * * * The Debtor, on Aug. 3, 2015, revised its Plan of Liquidation and Disclosure Statement to resolve the formal and informal comments. A blacklined version of the Amended Disclosure Statement is available at http://bankrupt.com/misc/SWds0803.pdf SANDY CREEK: Bank Debt Trades at 2% Off --------------------------------------- Participations in a syndicated loan under which Sandy Creek Energy Associates is a borrower traded in the secondary market at 97.83 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents a decrease of 0.63 percentage points from the previous week, The Journal relates. Sandy Creek Energy Associates pays 400 basis points above LIBOR to borrow under the facility. The bank loan matures on November 6, 2020. Moody's rates the loan 'Ba3' and Standard & Poor's gave a 'B+' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. SANDY CREEK: Moody's Affirms Ba3 Sr. Sec. Rating, Outlook Negative ------------------------------------------------------------------ Moody's Investors Service has affirmed the Ba3 senior secured rating of Sandy Creek Energy Associates, L.P. (SCEA). Concurrent with this rating action, Moody's revises the rating outlook for SCEA to negative from stable. The senior secured credit facilities are comprised of a $1,025 million term loan due 2020 (approx. $958.4 million outstanding), a $102 million letter of credit facility due 2020 to backstop Tax-Exempt Variable Rate Notes, and a $75 million working capital facility due 2020. SCEA owns 64% of the Sandy Creek Energy Station, a 945 MW single unit, once-through super-critical cycle, pulverized coal-fired power generating facility in Riesel, Texas. SCEA is a bankruptcy-remote entity owned by affiliates of LS Power (Sponsor). RATINGS RATIONALE The change in outlook to negative reflects the project's exposure to weak merchant power prices and Moody's expectations of weaker financial performance relative to Moody's base case projections at the time of the initial rating (October 2013) due to the deterioration in the wholesale energy markets in ERCOT. Lower gas and power prices are expected to severely depress SCEA merchant energy margins. This is likely to result in substantially lower credit metrics and the possibility that cash flow could be insufficient to fully cover debt service at some point in the future, in the absence of some mitigating development. In addition, the lower merchant cash flows will result in less excess cash flow that can be swept to de-lever the project, resulting in higher refinancing risk when the debt matures in 2020. The Ba3 rating affirmation and outlook change recognizes that a substantial portion of the cash flows are contracted under long-term (30 years) power purchase agreements (PPAs) with Brazos Electric Power Cooperative (Brazos, unrated) and Lower Colorado River Authority (LCRA, A2 stable), two Texas-based public power entities, but that SCEA is also exposed to the weak ERCOT North merchant energy market. The rating acknowledges Brazos' 25% ownership interest and LCRA's 11% ownership interest in Sandy Creek, which supports credit quality for SCEA as interests of the counterparties and the owners are better aligned. SCEA also currently benefits from additional power and gas hedges with highly rated counterparties that provide for incremental hedged cash flow through the end of 2015. The rating also recognizes the solid operational performance of the plant since reaching commercial operation in June 2013. Sandy Creek is an efficient coal plant with the latest, commercially available environmental controls, and can pass through fixed and variable costs associated with its PPAs to the offtakers, including carbon emissions costs. The rating further recognizes the high degree of leverage that exists at SCEA along with refinancing risk. SCEA's historical results have been solid to date with strong debt service coverage (DSCR). In 2014, the DSCR was still a strong 2.06x. This was due to cash flows that benefitted from contracts and hedges, as well as relatively stronger merchant power prices in ERCOT. Even in the 1st quarter of 2015, when the impact of weaker merchant power prices started to present themselves, the coverage ratio was 1.98x. For all of 2015, the DSCR according to Moody's calculation is expected to measure approximately 1.50x. However, most of the existing hedges roll off at the end of 2015, and SCEA will be even more exposed to weaker ERCOT North power prices. Moody's calculates that SCEA could struggle to meet debt service at some point in the future in the absence of some mitigating development -- such as an improvement in wholesale markets, SCEA entering into additional hedges, cost reductions, support from the Sponsor and/or some other supporting development. The weaker metrics also reduces the amount of cushion should there be an unexpected outage. Moody's understands that SCEA is currently in discussions with potential hedge counterparties to enter into new hedging arrangements for 2016. Moody's also notes that Sandy has a high capacity factor (around 80%), which suggests that it is running even as a "merchant coal" plant in a market where gas is on the margin. Therefore, it should capture some merchant sales, especially during peak pricing periods in the all-important 3rd quarter of each year when temperatures in Texas are at their highest. If merchant margins are high enough, SCEA should be able to cover the costs associated with that merchant power, including the fixed costs of the plant that are not covered under the PPAs. Moody's notes, however, that there is a lot of uncertainty and volatility associated with merchant power prices in ERCOT. Moody's intends to use the period of the negative outlook (6-12 months) to monitor the project's financial progress for the remainder of 2015 and into 2016 to see if SCEA does enter into new hedges, takes steps to reduce costs and/or takes other measures to ensure that it can comfortably cover debt service going forward with recovering financial metrics. To the extent there is no improvement in SCEA's prospects, and financial performance continues to weaken, then SCEA's rating could come under downward pressure by one or more notches. In light of the negative outlook, limited prospects exist for the rating to be upgraded in the short-run. The rating outlook could stabilize if power prices recover in ERCOT and/or financial hedges are entered into such that Sandy Creek's metrics return to the levels expected at the time of the rating in October 2013. The rating could be downgraded if financial metrics do not improve or Sandy Creek faces other challenges, including operating problems. The last rating action on Sandy Creek was on October 18, 2013, when Moody's assigned a Ba3 rating. The principal methodology used in these ratings was Power Generation Projects published in December 2012. Sandy Creek Energy Station is a greenfield nominal 945 MW single unit super-critical coal-fired base load electric generating station located near Riesel, Texas. Ownership of the Project is held 63.87% by Sandy Creek Energy Associates, LP (SCEA), a 25% interest by Brazos Sandy Creek Electric Cooperative, Inc. (Brazos), and an 11.13% interest by Lower Colorado River Authority (LCRA: A2, Stable). SANTA CLARA CITY: Moody's Affirms Ba1 Rating on 2006 Revenue Bonds ------------------------------------------------------------------ Moody's Investors Service has affirmed the Ba1 rating on the City of Santa Clara, UT's Electric Revenue Bonds, Series 2006. The rating action affects $3.6 million in debt outstanding. SUMMARY RATING RATIONALE The rating affirmation primarily reflects the enterprise's improved liquidity and debt service coverage to satisfactory levels in recent years. The rating also incorporates the continued reliance on impact fees and other non-recurring resources. OUTLOOK Outlooks are usually not assigned to local government credits with this amount of debt outstanding. WHAT COULD MAKE THE RATING GO UP -- Sustained coverage increase with reduced impact fee dependency -- Improved timeliness of rate increases -- Significant growth in service area demand WHAT COULD MAKE THE RATING GO DOWN -- Deteriorating coverage or liquidity -- Slowdown in service base growth OBLIGOR PROFILE The enterprise provides power services to its primarily residential customer base within the city limits of Santa Clara, UT. LEGAL SECURITY The bonds are secured by the net revenues of the power system. SEADRILL LTD: Bank Debt Trades at 27% Off ----------------------------------------- Participations in a syndicated loan under which Seadrill Ltd is a borrower traded in the secondary market at 72.96 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents a decrease of 1.60 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. Moody's rates the loan 'Ba3' and Standard & Poor's gave a 'BB-' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. SEITEL INC: S&P Cuts Corp. Credit Rating to 'B-', Outlook Negative ------------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered its corporate credit rating on Houston-based Seitel Inc. to 'B-' from 'B'. The outlook is negative. At the same time, S&P lowered its issue-level ratings on the company's senior unsecured notes to 'B-' from 'B'. There is no change to the '3' recovery rating on the unsecured notes, indicating that creditors could expect meaningful (50% to 70%; at the upper half of the range) recovery in the event of payment default. "The negative outlook reflects our view that Seitel's credit measures could materially weaken if market conditions deteriorate beyond our current expectations," said Standard & Poor's credit analyst John Rogers. Activity in the U.S. oil and natural gas exploration and production (E&P) industry has sharply deteriorated in response to low oil prices. For year-end 2015, S&P estimates that E&P capital spending for companies S&P rates will decline about $72 billion to $167 billion, or 30%, from actual spending of $239 billion in 2014. As a result, S&P now expects Seitel's credit measures to weaken due to the bleak outlook for seismic data demand for the remainder of the year and into 2016. S&P now expects cash resales to decline by approximately 60% to 65%, resulting in debt/EBITDA above 7x and FFO/debt below 12%. Seitel's "vulnerable" business profile reflects S&P's assessment of its participation in the highly competitive and volatile multi-client seismic subsector of the oilfield services industry, limited product diversification, and smaller scale relative to its key competitors. S&P views Seitel's financial risk as "highly leveraged" and liquidity as "adequate." The negative outlook reflects S&P's expectation that Seitel's debt to EBITDA will exceed 7x and FFO to debt will be well below 12% over the next two years. S&P expects the company to maintain "adequate" liquidity while prudently managing the reduction in seismic activity as a result of significant declines in E&P capital spending programs. S&P could lower the rating if it expected liquidity to deteriorate, which would likely occur if seismic activity declined beyond S&P's current expectations or it viewed debt leverage as unsustainable. S&P could revise the outlook to stable if market conditions improve such that S&P expects debt leverage to average less than 5x and FFO/debt to be around 12% on a sustained basis. SERVICEMASTER CO: S&P Raises Corp. Credit Rating to 'B+' -------------------------------------------------------- Standard & Poor's Ratings Services said it raised its corporate credit rating on Memphis-based The ServiceMaster Co. LLC to 'B+' from 'B'. The outlook is stable. At the same time, S&P raised its issue-level rating on the company's first-lien credit facilities to 'BB-' from 'B+'. The recovery rating on this debt remains '2', but recovery expectations now fall at the lower half of the substantial (70% to 90%) recovery range. S&P also raised its issue-level ratings on the company's unsecured notes to 'B+' from 'B-' and revised the recovery rating on this debt to '4' from '5'. The '4' recovery rating indicates S&P's expectation for average (30% to 50%; lower half of the range) recovery in the event of a payment default. "The upgrade reflects the company's improving financial condition from ongoing debt repayments," said Standard & Poor's credit analyst Peter Deluca. S&P's ratings on ServiceMaster incorporate its participation in fragmented and highly competitive business segments and its narrow business focus. They also reflect the company's good market position, diversified client base, and good client retention experience. S&P expects credit measures will improve over the next 12 months since the company will continue to reduce debt while improving operational efficiency to drive EBITDA growth. S&P's business risk assessment of "weak" reflects the company's solid profitability, strong marketing and sales efforts, and solid customer retention rates. S&P views ServiceMaster's financial risk as "aggressive" and liquidity as "strong," as defined in S&P's criteria. The stable outlook reflects S&P's view that ServiceMaster's operating performance will continue to improve and that credit measures will also improve as a result of EBITDA growth and permanent debt reduction. S&P forecasts leverage will decline to about 5x during the next year. S&P could raise our ratings if the company's operating performance or debt reductions result in leverage sustained below 4x. For this to occur, debt would need to decrease by about $850 million (assuming current EBITDA levels) or if EBITDA improves 33%. S&P could lower its ratings if it believes leverage will be sustained above 5.5x, which could occur if there is poor execution in the Terminix and American Home Shield businesses. This could also occur if the company's financial policy unexpectedly becomes more aggressive than S&P currently expects, including debt increasing by more than $75 million (assuming current levels of EBITDA) or EBITDA falling 5%. SIDEWINDER DRILLING: Moody's Lowers CFR to Caa3, Outlook Negative ----------------------------------------------------------------- Moody's Investors Service downgraded Sidewinder Drilling Inc.'s Corporate Family Rating (CFR) to Caa3 from B3, Probability of Default Rating (PDR) to Caa3-PD from B3-PD, and senior unsecured notes to Ca from Caa1. In addition, the Speculative Grade Liquidity (SGL) Rating was lowered to SGL-4 from SGL-3 and the outlook remains negative. Sidewinder provides contract land drilling services to upstream oil and gas companies. "Sidewinder's rating downgrades were driven by the sharp decline in its 2015 earnings and the high likelihood of material deterioration in its credit metrics due to the subdued North American drilling activity," said Sreedhar Kona, Moody's Senior Analyst. "The negative outlook reflects our expectation of reduced availability under the revolving credit facility through 2016 and weakening Sidewinder's ability to service its debt." Issuer: Sidewinder Drilling Inc. Corporate Family Rating, Downgraded to Caa3 from B3 Probability of Default Rating, Downgraded to Caa3-PD from B3-PD Senior Unsecured Notes due 2019, Downgraded to Ca (LGD4) from Caa1 (LGD4) Speculative Grade Liquidity (SGL) Rating, Lowered to SGL-4 from SGL-3 Outlook Negative RATINGS RATIONALE The downgrade of Sidewinder's Corporate Family Rating (CFR) to Caa3 from B3 is primarily driven by the expected sharp decline in EBITDA and cash flow generation due to poor demand for drilling services at least through 2016. With no immediate signs of a commodity price recovery or a meaningful increase in 2016 upstream capital budgets, per Moody's projections, Sidewinder's debt to EBITDA ratio will increase to 9x by yearend 2015 and to over 15x by yearend 2016, from 4.7x as of June 30, 2015. The ratings also reflect Sidewinder's limited operating history, small scale relative to other rated peers, and an eroding backlog with customer and geographic concentration risks. The Ca rating on the $250 million 9.75% senior unsecured notes due 2019 reflects their subordinate position in the capital structure relative to the potential senior secured claims, which results in the notes being rated one notch below the Caa3 CFR. The company has a $100 million secured revolving credit facility that has a first-lien claim to substantially all of Sidewinder's assets. The SGL-4 rating reflects Moody's expectation for Sidewinder's weak liquidity at least through 2016. As of June 30, 2015 the company had $9 million of cash and $57 million available under its $100 million revolving credit facility commitment that expires in July 2019 ($39 million of borrowings outstanding and $4 million of letters of credit). Revolver borrowings will increase in 2016 as EBITDA generated will not be sufficient to fund $25 million-$27 million interest expense, capital expenditure needs and other working capital swings. Importantly, the credit facility is an asset based lending facility that has no financial maintenance covenants as long as revolver borrowings do not exceed $80 million. In that event, the company would have to maintain a fixed charge coverage ratio of 1.1x (as defined in the credit agreement). The company's borrowings are likely to remain under the $80 million threshold through 2016, however the availability under the credit facility may be reduced if the liquidation value of the rigs continues to worsen or the size of the receivables amount reduces, both of which govern the advances on the ABL facility. The credit facility has a first-lien on substantially all of Sidewinder's assets; any asset sales are likely to repay revolver borrowings and therefore won't be a source of cash. The negative outlook reflects Moody's expectations for reduced availability under the revolving credit facility and the potential for a missed interest payment in the second half of 2016 due to lack of liquidity. If available borrowing capacity on the revolver were to decline below $30 million, ratings could be downgraded. An upgrade is unlikely absent a meaningfully more supportive commodity price environment and outlook for onshore drilling activity. To be considered for an upgrade to Caa2, Sidewinder will need to demonstrate consistent operational performance resulting in EBITDA to interest sustained above 1x. In addition, the company should maintain adequate liquidity for a ratings upgrade. The principal methodology used in these ratings was Global Oilfield Services Industry Rating Methodology published in December 2014. SIGNAL INT'L: EJC, Bayard File Rule 2019 Statement -------------------------------------------------- Equal Justice Center and Bayard P.A. disclosed that they represent a group of claimants in the Chapter 11 cases of Signal International Inc. and its affiliated debtors. The group in August 2013 filed a lawsuit styled Kambala v. Signal International, L.L.C. over an alleged scheme to traffic the claimants into the United States to provide labor for the companies, according to the filing. Beginning in early 2013, EJC has represented the claimants in connection with the lawsuit. On or about July 8, 2015, Bayard agreed to serve as local counsel for the group in Signal International's bankruptcy cases. EJC and Bayard made the disclosure pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure. Bayard can be reached at: Evan T. Miller (No. 5364) 222 Delaware Avenue Suite 900 P.O. Box 25130 Wilmington, Delaware 19899 Telephone: (302) 429-4227 Facsimile: (302) 658-6395 E-mail: EMiller@bayardlaw.com EJC can be reached at: Christopher J. Willett, Esq. 510 S. Congress Ave., Ste. 206 Austin, TX 78704 Telephone: (512) 474-0007 Facsimile: (512) 474-0008 E-mail: cwillett@equaljusticecenter.org About Signal International Signal International Inc. -- http://www.signalint.com/-- primarily engages in the business of offshore drilling rig overhaul, repair, upgrade, and conversion, as well as new shipbuilding construction. Additionally, Signal provides services to the general marine and heavy fabrication markets for barges, power plants, and modular construction. Signal International, LLC ("SI LLC"), was organized on Dec. 6, 2002, as a limited liability company after acquiring the assets of the Offshore Division of Friede Goldman Halter from bankruptcy. SI Inc. was incorporated on Oct. 12, 2007, and began operations with offshore fabrication and repair in Mississippi. Today, Signal's corporate headquarters are in Mobile, Alabama, with operations in Alabama and Mississippi, and a sales office in Texas. On Oct. 3, 2014, Signal International Texas, L.P., sold substantially all of its assets to Westport Orange Shipyard, LLC, in a partially seller-financed transaction for a total purchase price of $35,900,000. As part of the transaction, Westport provided a down payment of $7,000,000 and delivered a promissory note in the principal amount of $28,900,000 to SI Texas due on or before Oct. 3, 2019 (the "Texas Note"). On July 12, 2015, SI Inc. and its direct and indirect wholly owned subsidiaries, including SI LLC, commenced cases under chapter 11 of title 11 of the United States Code (Bankr. D. Del. Lead Case No. 15-11498). The Debtors tapped Young Conaway Stargatt & Taylor LLP as bankruptcy counsel, Hogan Lovells US LLP as general corporate counsel, GGG Partners, LLC, as financial and restructuring advisors, and Kurtzman Carson Consultants LLC as claims and noticing agent. Signal International Inc. estimated $10 million to $50 million in assets and $50 million to $100 million in debt. SIGNAL INT'L: Gets Approval to Borrow $4-Mil. from Pension Funds ---------------------------------------------------------------- Signal International, Inc. got court approval to borrow up to $4 million from Alabama's employee pension funds to support its operations. The order, issued by U.S. Bankruptcy Judge Mary Walrath, allowed the company to get an initial $4 million loan from the Teachers' Retirement System of Alabama and the Employees' Retirement System of Alabama until it gets final approval for its proposed $90 million loan. An earlier ruling issued by the bankruptcy judge only allowed the company to borrow up to $2.5 million. Signal International will be in default under its loan agreement with the pension funds if it fails to get final approval by August 31, according to the court filing. A copy of the final loan agreement is available for free at http://is.gd/NhWV9s About Signal International Signal International Inc. -- http://www.signalint.com/-- primarily engages in the business of offshore drilling rig overhaul, repair, upgrade, and conversion, as well as new shipbuilding construction. Additionally, Signal provides services to the general marine and heavy fabrication markets for barges, power plants, and modular construction. Signal International, LLC ("SI LLC"), was organized on Dec. 6, 2002, as a limited liability company after acquiring the assets of the Offshore Division of Friede Goldman Halter from bankruptcy. SI Inc. was incorporated on Oct. 12, 2007, and began operations with offshore fabrication and repair in Mississippi. Today, Signal's corporate headquarters are in Mobile, Alabama, with operations in Alabama and Mississippi, and a sales office in Texas. On Oct. 3, 2014, Signal International Texas, L.P., sold substantially all of its assets to Westport Orange Shipyard, LLC, in a partially seller-financed transaction for a total purchase price of $35,900,000. As part of the transaction, Westport provided a down payment of $7,000,000 and delivered a promissory note in the principal amount of $28,900,000 to SI Texas due on or before Oct. 3, 2019 (the "Texas Note"). On July 12, 2015, SI Inc. and its direct and indirect wholly owned subsidiaries, including SI LLC, commenced cases under chapter 11 of title 11 of the United States Code (Bankr. D. Del. Lead Case No. 15-11498). The Debtors tapped Young Conaway Stargatt & Taylor LLP as bankruptcy counsel, Hogan Lovells US LLP as general corporate counsel, GGG Partners, LLC, as financial and restructuring advisors, and Kurtzman Carson Consultants LLC as claims and noticing agent. Signal International Inc. estimated $10 million to $50 million in assets and $50 million to $100 million in debt. SIGNAL INT'L: Latham, Bayard File Rule 2019 Statement ----------------------------------------------------- The law firms of Latham & Watkins LLP and Bayard P.A. disclosed in a court filing that they represent a group of claimants in the Chapter 11 cases of Signal International Inc. and its affiliated debtors. The claimants in May 2014 filed a lawsuit styled Achari v. Signal International, L.L.C. over an alleged scheme to traffic them into the United States to provide labor for the companies, according to the filing. Latham has represented the claimants in connection with the lawsuit since 2012. Meanwhile, Bayard agreed to serve as local counsel for the claimants in the bankruptcy cases on or about July 7 this year. The law firms made the disclosure pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure. Bayard can be reached at: Evan T. Miller, Esq. 222 Delaware Avenue Suite 900 P.O. Box 25130 Wilmington, Delaware 19899 Telephone: (302) 429-4227 Facsimile: (302) 658-6395 E-mail: EMiller@bayardlaw.com Latham can be reached at: Mark Broude, Esq. Christopher Harris, Esq. Daniel Adams, Esq. David McElhoe, Esq. 885 Third Avenue New York, NY, 10022 Telephone: (212) 906-1200 Facsimile: (212) 751-4864 E-mail: mark.broude@lw.com christopher.harris@lw.com daniel.adams@lw.com david.mcelhoe@lw.com About Signal International Signal International Inc. -- http://www.signalint.com/-- primarily engages in the business of offshore drilling rig overhaul, repair, upgrade, and conversion, as well as new shipbuilding construction. Additionally, Signal provides services to the general marine and heavy fabrication markets for barges, power plants, and modular construction. Signal International, LLC ("SI LLC"), was organized on Dec. 6, 2002, as a limited liability company after acquiring the assets of the Offshore Division of Friede Goldman Halter from bankruptcy. SI Inc. was incorporated on Oct. 12, 2007, and began operations with offshore fabrication and repair in Mississippi. Today, Signal's corporate headquarters are in Mobile, Alabama, with operations in Alabama and Mississippi, and a sales office in Texas. On Oct. 3, 2014, Signal International Texas, L.P., sold substantially all of its assets to Westport Orange Shipyard, LLC, in a partially seller-financed transaction for a total purchase price of $35,900,000. As part of the transaction, Westport provided a down payment of $7,000,000 and delivered a promissory note in the principal amount of $28,900,000 to SI Texas due on or before Oct. 3, 2019 (the "Texas Note"). On July 12, 2015, SI Inc. and its direct and indirect wholly owned subsidiaries, including SI LLC, commenced cases under chapter 11 of title 11 of the United States Code (Bankr. D. Del. Lead Case No. 15-11498). The Debtors tapped Young Conaway Stargatt & Taylor LLP as bankruptcy counsel, Hogan Lovells US LLP as general corporate counsel, GGG Partners, LLC, as financial and restructuring advisors, and Kurtzman Carson Consultants LLC as claims and noticing agent. Signal International Inc. estimated $10 million to $50 million in assets and $50 million to $100 million in debt. SIGNAL INT'L: Manatt, Bayard File Rule 2019 Statement ----------------------------------------------------- Manatt, Phelps & Phillips, LLP and Bayard P.A. disclosed that they represent a group of claimants in the Chapter 11 cases of Signal International Inc. and its affiliated debtors. The group in October 2013 sued Signal International and its two affiliates over an alleged scheme to traffic the claimants into the United States to provide labor for the companies, according to the filing. The lawsuit is styled Devassy v. Signal International, L.L.C. Beginning in early 2013, Manatt has represented the claimants in connection with the lawsuit. Meanwhile, Bayard agreed to serve as local counsel for the group in Signal International's bankruptcy cases on or about July 8 this year. The law firms made the disclosure pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure. Bayard can be reached at: Evan T. Miller (No. 5364) 222 Delaware Avenue Suite 900 P.O. Box 25130 Wilmington, Delaware 19899 Telephone: (302) 429-4227 Facsimile: (302) 658-6395 E-mail: EMiller@bayardlaw.com Manatt can be reached at: Stephen Raptis, Esq. Manatt, Phelps & Phillips, LLP 1050 Connecticut Avenue, N.W., Suite 600 Washington, D.C. 20036 Telephone: (202) 585-6500 Facsimile: (202) 585-6600 E-mail: SRaptis@manatt.com - and - Anthony Staltari, Esq. Andrew C. Case, Esq. Manatt, Phelps & Phillips, LLP 7 Times Square New York, New York 10036 Telephone: (212) 790-4500 Facsimile: (212) 790-4545 E-mail: astaltari@Manatt.com ACase@Manatt.com About Signal International Signal International Inc. -- http://www.signalint.com/-- primarily engages in the business of offshore drilling rig overhaul, repair, upgrade, and conversion, as well as new shipbuilding construction. Additionally, Signal provides services to the general marine and heavy fabrication markets for barges, power plants, and modular construction. Signal International, LLC ("SI LLC"), was organized on Dec. 6, 2002, as a limited liability company after acquiring the assets of the Offshore Division of Friede Goldman Halter from bankruptcy. SI Inc. was incorporated on Oct. 12, 2007, and began operations with offshore fabrication and repair in Mississippi. Today, Signal's corporate headquarters are in Mobile, Alabama, with operations in Alabama and Mississippi, and a sales office in Texas. On Oct. 3, 2014, Signal International Texas, L.P., sold substantially all of its assets to Westport Orange Shipyard, LLC, in a partially seller-financed transaction for a total purchase price of $35,900,000. As part of the transaction, Westport provided a down payment of $7,000,000 and delivered a promissory note in the principal amount of $28,900,000 to SI Texas due on or before Oct. 3, 2019 (the "Texas Note"). On July 12, 2015, SI Inc. and its direct and indirect wholly owned subsidiaries, including SI LLC, commenced cases under chapter 11 of title 11 of the United States Code (Bankr. D. Del. Lead Case No. 15-11498). The Debtors tapped Young Conaway Stargatt & Taylor LLP as bankruptcy counsel, Hogan Lovells US LLP as general corporate counsel, GGG Partners, LLC, as financial and restructuring advisors, and Kurtzman Carson Consultants LLC as claims and noticing agent. Signal International Inc. estimated $10 million to $50 million in assets and $50 million to $100 million in debt. SIGNAL INT'L: Wants Authority to Assume Plan Support Agreement -------------------------------------------------------------- Signal International, Inc., et al., seek authority from the United States Bankruptcy Court for the District of Delaware to assume a plan support agreement they entered into with certain of their creditors and potential creditors. The Debtors tell the Court that the PSA enjoys broad support from their major creditor constituencies. According to the Debtors, the PSA provides a well-defined path towards approval of a disclosure statement, solicitation of a Chapter 11 plan, the sale of their assets, and confirmation of a Chapter 11 plan. The twin goals of the PSA are to (i) effectuate a sale of substantially all of the Debtors' assets to the highest and/or otherwise best bidder to permit the business to continue as a going concern, and (ii) consummate a Chapter 11 plan that provides for a meaningful distribution to the Debtors' unsecured creditors. The Debtors relate that they entered into the PSA after vigorous negotiations and a robust process that included input and direction from their experienced restructuring professionals. The Debtors believe that the restructuring contemplated by the PSA is the best possible outcome under the circumstances. Importantly, however, the PSA provides that, subject to providing a Fiduciary Out Notice to the Supporting Parties, the Debtors may take any action, or to refrain from taking any action, to the extent that taking that action or refraining from taking that action would be inconsistent with their fiduciary obligations under applicable law, the Debtors tell the Court. Signal International Inc., et al. are represented by: M. Blake Cleary, Esq. Kenneth J. Enos, Esq. Jaime Luton Chapman, Esq. Travis G. Buchanan, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, DE 19801 Tel: (302) 571-6600 Fax: (302) 571-1253 Email: mbcleary@ycst.com kenos@ycst.com jchapman@ycst.com tbuchanan@ycst.com About Signal International Signal International Inc. -- http://www.signalint.com/-- primarily engages in the business of offshore drilling rig overhaul, repair, upgrade, and conversion, as well as new shipbuilding construction. Additionally, Signal provides services to the general marine and heavy fabrication markets for barges, power plants, and modular construction. Signal International, LLC ("SI LLC"), was organized on Dec. 6, 2002, as a limited liability company after acquiring the assets of the Offshore Division of Friede Goldman Halter from bankruptcy. SI Inc. was incorporated on Oct. 12, 2007, and began operations with offshore fabrication and repair in Mississippi. Today, Signal's corporate headquarters are in Mobile, Alabama, with operations in Alabama and Mississippi, and a sales office in Texas. On Oct. 3, 2014, Signal International Texas, L.P., sold substantially all of its assets to Westport Orange Shipyard, LLC, in a partially seller-financed transaction for a total purchase price of $35,900,000. As part of the transaction, Westport provided a down payment of $7,000,000 and delivered a promissory note in the principal amount of $28,900,000 to SI Texas due on or before Oct. 3, 2019 (the "Texas Note"). On July 12, 2015, SI Inc. and its direct and indirect wholly owned subsidiaries, including SI LLC, commenced cases under chapter 11 of title 11 of the United States Code (Bankr. D. Del. Lead Case No. 15-11498). The Debtors tapped Young Conaway Stargatt & Taylor LLP as bankruptcy counsel, Hogan Lovells US LLP as general corporate counsel, GGG Partners, LLC, as financial and restructuring advisors, and Kurtzman Carson Consultants LLC as claims and noticing agent. Signal International Inc. estimated $10 million to $50 million in assets and $50 million to $100 million in debt. SKYMALL LLC: Obtains Court Confirmation of Liquidation Plan ----------------------------------------------------------- Tom Corrigan, writing for Dow Jones' Daily Bankruptcy Review, reported that SkyMall LLC, which sold quirky products through its in-flight catalogs for 25 years before filing for bankruptcy in January, won final court approval of its plan to repay creditors, exit chapter 11 and ultimately dissolve. According to the report, following a hearing on Aug. 21, Judge Brenda Martin of the U.S. Bankruptcy Court in Phoenix said she would approve the company's liquidation plan, after an objection from a government watchdog delayed her decision by several weeks. As previously reported by The Troubled Company Reporter, Judge Martin, in June, authorized SkyMall LLC to begin soliciting votes on its plan to liquidate its assets and to distribute the proceeds to creditors. The Bankruptcy Court approved on March 27, 2015, the $1.9 million sale of SkyMall LLC to C&A Marketing Inc., which, along with $1 million in cash, issued a promissory note for $900,000. About SkyMall LLC Headquartered in Phoenix, Arizona, SkyMall, LLC, is the company behind the ubiquitous in-flight catalogs known for kitschy items that include Bigfoot Garden Yeti statues, night glow toilet seats and cat litter robots. Affiliates SkyMall, LLC, fka SkyMall, Inc. (Bankr. D. Ariz. Case No. 15-00679), Xhibit Corp., fka NB Manufacturing, Inc. (Bankr. D. Ariz. Case No. 15-00680), Xhibit Interactive, LLC, fka Xhibit, LLC (Bankr. D. Ariz. Case No. 15-00682), FlyReply Corp. (Bankr. D. Ariz. Case No. 15-00684), SHC Parent Corp. (Bankr. D. Ariz. Case No. 15-00685), SpyFire Interactive, LLC (Bankr. D. Ariz. Case No. 15-00686), Stacked Digital, LLC (Bankr. D. Ariz. Case No. 15-00687), and SkyMall Interests, LLC (Bankr. D. Ariz. Case No. 15-00688) filed separate Chapter 11 bankruptcy petitions on Jan. 22, 2014. The petitions were signed by Scott Wiley, authorized signatory. Judge Brenda K. Martin presides over SkyMall, LLC's case, while Judge Madeleine C. Wanslee presides over Xhibit Corp.'s and SHC Parent Corp.'s cases. John A. Harris, Esq., at Quarles & Brady LLP serves as the Debtors' bankruptcy counsel. Cohnreznick Capital Market Securities, LLC, is the Debtors' financial advisor. SkyMall, LLC, estimated its assets at between $1 million and $10 million, and its liabilities at between $10 million and $50 million. Xhibit Corp. estimates its assets and liabilities at between $100,000 and $500,000 each. Xhibit Interactive, LLC, estimates its assets and liabilities at up to $50,000 each. SHC Parent Corp. estimates its assets and liabilities at up to $50,000 each. STEARNS HOLDINGS: S&P Puts 'B+' Issuer Credit Rating on Watch Neg ----------------------------------------------------------------- Standard & Poor's Ratings Services said it placed its 'B+' issuer credit and senior secured debt ratings on Stearns Holdings LLC on CreditWatch with negative implications. The CreditWatch placements follow the announcement that Stearns reached an agreement with Blackstone Group L.P. to sell 70% of the company to the financial sponsor. "We view Stearns’ plan to be controlled by a financial sponsor as a negative rating factor," said Standard & Poor's credit analyst Stephen Lynch. S&P's pessimistic view is based on the intrinsic characteristics and aggressive nature of a financial sponsor's strategies, which generally include short-term holding periods and the use of debt to maximize shareholder returns. Although Stearns' current indentures limit additional indebtedness to a degree, S&P believes that, over time, Blackstone could refinance the debt and increase the firm's leverage. The CreditWatch negative reflects the possibility that S&P could lower its issuer credit and senior secured ratings on Stearns by up to one notch once the transaction closes. Since Stearns is now planning to be controlled by Blackstone, S&P believes the company could pursue a more aggressive financial posture than what the current leverage might indicate. At the same time, S&P will also assess Stearns' recent earnings, which have generally exceeded S&P's expectations and lowered the company's leverage over the past year. S&P could therefore leave the rating unchanged if it believes the current 'B+' rating fairly reflects the firm's creditworthiness relative to similarly rated peers. S&P will look to resolve its CreditWatch listings following the close of the acquisition, which S&P expects will occur by December 2015. TECHNOLOGY GROUP: "Jegen" Suit Remanded to Bankruptcy Court ----------------------------------------------------------- Judge Richard G. Andrews of the United States District Court for the District of Delaware, in a memorandum order dated Aug. 3, 2015, remanded to the bankruptcy court the class action lawsuit captioned Leo Jegen, Vincent M. Monnier, Shih Leng Tan, and Len C. Villacres, Appellants, v. Liquidation Trustee of the ZCO Trust, Appellee, CIVIL ACTION NO. 14-1448-RGA (D. Del.), with instructions to vacate the November 10, 2014 Order, and dismiss the Trustee's Motion to Enforce the Stay. The bankruptcy case is In re: ZCO Liquidating Corporation (f/k/a/ Technology Group, Inc.), BANKRUPTCY CASE NO. 13-13126-LSS (D. Del.). A full-text copy of Judge Andrews' Decision is available at http://is.gd/WfW0rkfrom Leagle.com. Leo Jegen, Appellant, represented by Brian E. Farnan, Esq. -- bfarnan@farnanlaw.com -- Farnan LLP, Nicholas I. Porritt, Esq., & Rosemary Jean Piergiovanni, Esq. -- rpiergiovanni@farnanlaw.com -- Farnan LLP. Vincent M. Monnier, Appellant, represented by Brian E. Farnan, Farnan LLP & Rosemary Jean Piergiovanni, Farnan LLP. Shih Leng Tan, Appellant, represented by Brian E. Farnan, Farnan LLP & Rosemary Jean Piergiovanni, Farnan LLP. Len C. Villacres, Appellant, represented by Brian E. Farnan, Farnan LLP & Rosemary Jean Piergiovanni, Farnan LLP. Liquidation Trustee of the ZCO Trust, Appellee, represented by Dennis Anthony Meloro, Esq. -- melorod@gtlaw.com -- Greenberg Traurig, LLP. TERVITA CORP: Bank Debt Trades at 11% Off ----------------------------------------- Participations in a syndicated loan under which Tervita Corp is a borrower traded in the secondary market at 88.60 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents a decrease of 0.90 percentage points from the previous week, The Journal relates. Tervita Corp pays 500 basis points above LIBOR to borrow under the facility. The bank loan matures on January 24, 2018. Moody's rates the loan 'B3' and Standard & Poor's gave a 'B-' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. THORNTON & CO: Section 341 Meeting Scheduled for Sept. 4 -------------------------------------------------------- A meeting of creditors in the bankruptcy case of Thornton & Co., Inc. has been set for Sept. 4, 2015, at 11:00 a.m. at Office of the UST. Creditors have until Dec. 3, 2015, to file their proofs of claim. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Thornton & Co. Thornton & Co., Inc. is an international distributor, trader and wholesaler of plastic resins, providing a full offering of polyethylene and polypropylene products. J. Paul Thornton, Jr. founded TCI in 1994. As of Aug. 1, 2015, TCI had 20 employees, consisting of 12 people at its Southington, Connecticut headquarters, and 8 sales representatives who work in various locations. Thornton & Co. sought Chapter 11 protection (Bankr. D. Conn. Case No. 15-21416) on Aug. 10, 2015, in Hartford, Connecticut. Judge Ann M. Nevins presides over the case. The Debtor estimated $10 million to $50 million in assets and debt. The Debtor has tapped Green & Sklarz LLC as counsel, and Gordian Group as financial advisor. TN-K ENERGY: Incurs $77,000 Net Loss in March 31 Quarter -------------------------------------------------------- TN-K Energy Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $77,329 on $117,575 of total revenue for the three months ended March 31, 2015, compared to a net loss of $98,852 on $12,886 of total revenue for the same period during the prior year. As of March 31, 2015, the Company had $1.8 million in total assets, $3.9 million in total liabilities and a total stockholders' deficit of $2.1 million. At March 31, 2015, the Company had a working capital deficit of $3,502,246 as compared to a working capital deficit of $3,433,981 at Dec. 31, 2014. "We do not have any external sources of liquidity. Our working capital is not sufficient to fund our operations and pay our obligations, many of which are past due, and may impede our ability to further grow our company. Although we need to raise additional working capital, we do not have any commitments for capital from third parties. Given the small size of our company, the quotation of our stock in the over-the-counter market and the significant liabilities on our balance sheet, we expect to encounter significant obstacles in raising equity or debit capital. If we are unable to access capital as needed, our ability to grow our company is in jeopardy and absent a significant increase in our revenues we may be unable to continue as a going concern," the Company states in the regulatory filing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/VqdJNk About TN-K Energy Crossville, Tenn.-based TN-K Energy Group, Inc., an independent oil exploration and production company, engaged in acquiring oil leases and exploring and developing crude oil reserves and production in the Appalachian basin. TN-K Energy reported a net loss of $674,000 on $196,000 of total revenue for the year ended Dec. 31, 2014, compared with a net loss of $184,000 on $585,000 of total revenue for the year ended Dec. 31, 2013. Liggett, Vogt & Webb, P.A., in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred recurring operating losses and will have to obtain additional financing to sustain operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. TRANS-LUX CORP: Amends Preliminary Prospectus with SEC ------------------------------------------------------ Trans-Lux Corporation filed an amended Form S-1 registration statement with the Securities and Exchange Commission relating to the distribution, at no charge, to holders of the Company's common stock non-transferable subscription rights to purchase up to [*] shares of its Series B Convertible Preferred Stock, at a subscription price of $[*] per share. The Company amended the registration statement to delay its effective date. The Series B Preferred carries a 5.0% cumulative annual dividend on the Stated Value of $[*] per share and will be convertible into shares of the Company's common stock at an initial conversion price of $[*] per share, representing a conversion ratio of [approximately] [*] shares of common stock for each share of Series B Preferred held at the time of conversion, subject to adjustment. The subscription rights will expire if they are not exercised before 5:00 p.m., Eastern Time, on [*], 2015, the expiration date for the rights offering, unless the Company extends the rights offering period. The closing price of the Company's common stock on Aug. 17, 2015, was $3.04. The Company's common stock is quoted on the OTC Pink under the symbol "TNLX." The subscription rights issued in the rights offering will not be listed for trading on any stock exchange or market. A full-text copy of the Form S-1/A is available for free at: http://is.gd/DXvqH1 About Trans-Lux Corporation Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a designer and manufacturer of digital signage display solutions for the financial, sports and entertainment, gaming and leasing markets. Trans-Lux Corporation incurred a net loss of $4.62 million on $24.4 million of total revenues for the year ended Dec. 31, 2014, compared with a net loss of $1.86 million on $20.9 million of total revenues for the year ended Dec. 31, 2013. As of June 30, 2015, the Company had $15 million in total assets, $18.3 million in total liabilities and a $3.2 million total stockholders' deficit. BDO USA, LLP, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has suffered recurring losses from operations and has a significant working capital deficiency that raise substantial doubt about its ability to continue as a going concern. Further, the auditors said, the Company is in default of the indenture agreements governing its outstanding 9 1/2% Subordinated debentures which were due in 2012 and its 8 1/4% Limited convertible senior subordinated notes which were due in 2012 so that the trustees or holders of 25% of the outstanding Debentures and Notes have the right to demand payment immediately. Additionally, the Company has a significant amount due to their pension plan over the next 12 months. TRANSGENOMIC INC: Files Amendment 2 to 2014 Annual Report --------------------------------------------------------- Transgenomic, Inc., filed a second amendment to its annual report on Form 10-K for the fiscal year ended Dec. 31, 2014, for the purpose of updating the biographical information for Paul Kinnon. Mr. Kinnon, age 51, has served as the Company's president and chief executive officer and a director since September 2013 and as the Company's interim chief financial officer since October 2014. Mr. Kinnon has more than 20 years of global leadership experience in innovative life science and diagnostics companies. From January through August 2013, he provided consulting services to the life science sector as a Partner at Arch Global Research. During a portion of this time, Mr. Kinnon provided consulting services to the Company. From January 2007 to December 2012, Mr. Kinnon was president, chief executive officer and a director of ZyGEM Corporation Limited, a biotechnology company, where he transformed the company from a regional enzyme provider into a leader in integrated microfluidic technologies for forensic and clinical diagnostic applications. From May 2006 to June 2007, Mr. Kinnon was vice president & general manager Environmental Diagnostics (later expanded to Applied Markets) at Invitrogen Corporation (now Life Technologies), a high growth life sciences and diagnostics firm, and from October 2004 until April 2006, he was vice president, Global Strategic Alliances at Invitrogen. Previously, Mr. Kinnon also held business, sales and marketing roles of increasing responsibility at Guava Technologies, Inc., Cellomics, Inc. and other life science companies. Mr. Kinnon earned his Bachelor of Sciences degree in Applied Chemistry at Coventry University in the United Kingdom and holds a Diploma of Marketing. A petition in bankruptcy was filed against ZyGEM Corporation Limited in April 2013. A full-text copy of the Form 10-K/A is available for free at: http://is.gd/7JTFVO About Transgenomic Transgenomic, Inc. -- http://www.transgenomic.com/-- is a global biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases through its proprietary molecular technologies and world-class clinical and research services. The Company is a global leader in cardiac genetic testing with a family of innovative products, including its C-GAAP test, designed to detect gene mutations which indicate cardiac disorders, or which can lead to serious adverse events. Transgenomic has three complementary business divisions: Transgenomic Clinical Laboratories, which specializes in molecular diagnostics for cardiology, oncology, neurology, and mitochondrial disorders; Transgenomic Pharmacogenomic Services, a contract research laboratory that specializes in supporting all phases of pre-clinical and clinical trials for oncology drugs in development; and Transgenomic Diagnostic Tools, which produces equipment, reagents, and other consumables that empower clinical and research applications in molecular testing and cytogenetics. Transgenomic believes there is significant opportunity for continued growth across all three businesses by leveraging their synergistic capabilities, technologies, and expertise. The Company actively develops and acquires new technology and other intellectual property that strengthens its leadership in personalized medicine. Transgenomic reported a net loss available to common stockholders of $15.1 million in 2014, a net loss available to common stockholders of $16.7 million in 2013 and a net loss available to common stockholders of $8.98 million in 2012. As of June 30, 2015, the Company had $31.4 million in total assets, $20.5 million in total liabilities and $10.9 million in stockholders' equity. Ernst & Young LLP, in Hartford, Connecticut, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has recurring losses from operations that raise substantial doubt about its ability to continue as a going concern. TRONOX INC: Bank Debt Trades at 4% Off -------------------------------------- Participations in a syndicated loan under which Tronox Inc is a borrower traded in the secondary market at 95.77 cents-on-the-dollar during the week ended Friday, August 7, 2015, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in the August 11, 2015, edition of The Wall Street Journal. This represents a decrease of 0.80 percentage points from the previous week, The Journal relates. Tronox Inc. pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on March 15, 2020. Moody's rates the loan 'Ba3' and Standard & Poor's gave a 'BBB-' rating to the loan. The loan is one of the biggest gainers and losers among 259 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday, August 7. VERSO PAPER: Extends Exchange Offers Expiration Date ---------------------------------------------------- Verso Paper Holdings LLC and Verso Paper Inc., wholly owned subsidiaries of Verso Corporation, announced that they have extended the expiration date for their exchange offers from 5:00 p.m., New York City time, on Thursday, Aug. 20, 2015, to 5:00 p.m., New York City time, on Tuesday, Aug. 25, 2015, unless further extended. All other terms, provisions and conditions of the exchange offers will remain in full force and effect. On July 22, 2015, the Issuers commenced their offers to exchange up to $180,767,777 aggregate principal amount of their Second Priority Adjustable Senior Secured Notes and related guarantees registered under the Securities Act of 1933 for any and all of the outstanding like principal amount of their Second Priority Adjustable Senior Secured Notes and related guarantees, and $65,026,237 aggregate principal amount of their Adjustable Senior Subordinated Notes and related guarantees registered under the Securities Act for any and all of the outstanding like principal amount of their Adjustable Senior Subordinated Notes and related guarantees. As of 5:00 p.m., New York City time, on Aug. 20, 2015, Wilmington Trust, National Association, the exchange agent for the exchange offers, has advised that $180,691,241 aggregate principal amount of the outstanding Original Second Priority Notes had been tendered for exchange, representing approximately 99.96% of those outstanding notes, and that $64,924,687 aggregate principal amount of the outstanding Original Subordinated Notes had been tendered for exchange, representing approximately 99.84% of those outstanding notes. On July 21, 2015, the Securities and Exchange Commission declared the Form S-4 registration statement filed by the Issuers regarding the exchange offers effective under the Securities Act. The expiration date for the exchange offers is being extended to provide time for the remaining outstanding Original Second Priority Notes and Original Subordinated Notes to be exchanged. About Verso Verso is a North American producer of coated papers, including coated groundwood and coated freesheet, and specialty products. Verso is headquartered in Memphis, Tennessee, and owns three paper mills located in Maine and Michigan. Verso's paper products are used primarily in media and marketing applications, including magazines, catalogs and commercial printing applications such as high-end advertising brochures, annual reports and direct-mail advertising. Additional information about Verso is available on its Web site at http://www.versopaper.com/ Verso Paper reported a net loss of $356 million on $1.29 billion of net sales for the year ended Dec. 31, 2014, compared with a net loss of $111 million on $1.38 billion of net sales in 2013. * * * As reported by the TCR on July 3, 2015, Standard & Poor's Ratings Services said it raised its corporate credit rating on Verso Paper Holdings LLC and its parent Verso Paper Finance Holdings LLC to 'B-' from 'SD'. The TCR reported on Jan. 16, 2015, that Moody's Investors Service upgraded Verso Paper Holdings LLC's corporate family rating (CFR) to B3 from Caa3 and changed the probability of default rating (PDR) to B3-PD/LD from Caa3-PD. Verso's B3 CFR primarily reflects Moody's expectation that initial proforma leverage of about 9 times can be brought down to mid-6 times through synergy cost savings and cost improvements following the acquisition of NewPage, despite a continuing structural decline in demand for coated paper. VERSO PAPER: Facility Closure to Strain Liquidity, Moody's Says --------------------------------------------------------------- Moody's Investors Service says Verso Paper Holdings LLC's (B3, stable) announcement that it will shut down a pulp dryer and coated paper machine and indefinitely idle a paper mill will further strain the company's already weak liquidity position and adds further uncertainty in the company's ability to achieve its synergy target. However, the optimization of the remaining capacity at the company's Androscoggin mill in Maine should led to a reduction in costs with the elimination of fixed charges and high cost peak power consumption. VERTICAL COMPUTER: Posts $961,000 Net Loss for Second Quarter ------------------------------------------------------------- Vertical Computer Systems, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss available to common stockholders of $961,064 on $1.15 million of total revenues for the three months ended June 30, 2015, compared to a net loss available to common stockholders of $187,265 on $2.94 million of total revenues for the same period during the prior year. For the six months ended June 30, 2015, the Company reported a net loss available to common stockholders of $1.78 million on $2.21 million of total revenues compared to a net loss available to common stockholders of $737,522 on $5.04 million of total revenues for the same period in 2014. As of June 30, 2015, the Company had $1.1 million in total assets, $18.4 million in total liabilities, $9.9 million in convertible cumulative preferred stock, and total stockholders' deficit of $27.2 million. At June 30, 2015, the Company had non-restricted cash-on-hand of $18,891 compared to $117,866 at Dec. 31, 2014. Net cash used in operating activities for the six months ended June 30, 2015, was $89,857 compared to net cash used in operating activities of $31,963 for the six months ended June 30, 2014. A full-text copy of the Form 10-Q is available for free at: http://is.gd/HmTjII About Vertical Computer Richardson, Tex.-based Vertical Computer Systems, Inc., is a multinational provider of Internet core technologies, application software, and software services through its distribution network with operations or sales in the United States, Canada and Brazil. Vertical Computer reported a net loss applicable to common stockholders of $2.07 million on $7.43 million of total revenues for the year ended Dec. 31, 2014, compared to a net loss applicable to common stockholders of $3.08 million on $6.05 million of total revenues for the year ended Dec. 31, 2013. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company suffered net losses and has a working capital deficiency, which raises substantial doubt about its ability to continue as a going concern. VIRTUAL PIGGY: Issues $100,100 Promissory Note ---------------------------------------------- Virtual Piggy, Inc. issued a $100,100 principal amount unsecured promissory note to an accredited investor pursuant to a Promissory Note Agreement. The Investor also received a two-year Warrant to purchase 20,000 shares of Company common stock at an exercise price of $0.90 per share. The Note bears interest at a rate of ten percent 10% per annum and matures on the six month anniversary of the issuance date, or on such earlier date that (i) the Company completes the closing of a specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of 10% Secured Convertible Promissory Notes. As an additional inducement, the Investor will receive, on the Maturity Date, a commitment fee equal to 7.5% of the original principal amount. About Oink (Virtual Piggy, Inc.) Virtual Piggy is the provider of Oink, a secure online and in-store teen wallet. Oink enables teens to manage and spend money within parental controls, while gaining valuable financial management skills. The technology company also delivers payment platforms designed for the Under 21 age group in the global market, and enables online businesses the ability to function in a manner consistent with the Children's Online Privacy Protection Act and similar international children's privacy laws. The company, based in Hermosa Beach, CA, is on the Web at: http://www.oink.com/and holds three technology patents, US Patent No. 8,762,230, 8,650,621 and 8,812,395. Virtual Piggy reported a net loss of $9.65 million in 2014, a net loss of $16 million in 2013 and a net loss of $12.03 million in 2012. As of June 30, 2015, the Company had $1.6 million in total assets, $5.2 million in total liabilities, all current, and a stockholders' deficit of $3.5 million. Morison Cogen LLP, in Bala Cynwyd, PA, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's losses from development stage activities raise substantial doubt about its ability to continue as a going concern. VISANT HOLDING: S&P Revises Outlook to Neg. & Affirms 'B' CCR ------------------------------------------------------------- Standard & Poor's Ratings Services said that it revised its rating outlook on Armonk, N.Y.-based Visant Holding Corp. to negative from stable and affirmed the 'B' corporate credit rating on the company. At the same time, S&P raised its issue-level rating on the company's 10% senior unsecured notes due 2017 to 'B-' from 'CCC+' and revised the recovery rating to '5' from '6'. The '5' recovery rating indicates S&P's expectation for modest recovery (10%-30%; lower half of the range) of principal in the event of a payment default. S&P also affirmed its 'BB-' issue-level rating and '1' recovery rating on the company's senior secured credit facility. The '1' recovery rating indicates S&P's expectation for very high recovery (90%-100%) of principal in the event of payment default. "The outlook revision reflects the risk that Visant may experience difficulty refinancing its debts that are due in 2017 if it does not have a credible plan to address those maturities by the second quarter of 2016," said Standard & Poor's credit analyst Thomas Hartman. "The company's $775 million term loan matures in 2021, but there is a July 2, 2017, springing maturity if more than $250 million of the company's existing $737 million senior secured notes remain outstanding on that date. In addition, the company's senior secured notes are due in October 2017." The 'B' corporate credit rating on Visant reflects S&P's expectation that the company's core business (which consists of its Scholastic and Memory Book segments) will generate flat to modest revenue and EBITDA growth in 2015 and 2016. S&P assess Visant's business risk profile as "weak," given the company's good competitive position, yet narrow product focus in a contracting market. S&P views Visant's financial risk profile as "highly leveraged" because of its weak credit metrics and aggressive financial policy. Visant publishes school yearbooks and manufactures and sells school class rings, as well as other graduation-related merchandise (collectively known as "school affinity products"). The school affinity product market has relatively high barriers to entry, and Visant has a strong competitive position in this niche business. A major portion of Visant's revenues and EBITDA are seasonal and highly dependent on the U.S. academic cycle. Because of the discretionary nature of purchases, Visant's operations are vulnerable to weakness in the economy and gold price volatility. Elevated gold prices have caused consumers to shift to lower-priced metals for jewelry and affinity products. Even with consumer spending moving to a more solid footing, S&P is not convinced that yearbooks and class rings have the same relevance to the current generation of students. However, S&P believes the company's strategy to focus on its core business, through winning larger yearbook accounts, introducing new products to its class ring market, and divesting noncore business segments could result in flat to modest revenue and EBITDA growth. The negative rating outlook reflects S&P's expectation that it will lower the rating on Visant one notch to 'B-' at the end of 2015 or in early 2016 if the company does not make meaningful progress towards addressing its 2017 maturities. S&P could also lower the rating if the company's operating performance weakens, causing EBITDA declines and discretionary cash flow to debt to remain below 2%. The company's leverage is currently at the high end of S&P's rating threshold for the 'B' credit rating. S&P could revise the outlook to stable if Visant addresses its 2017 maturities and if S&P expects leverage to improve to below 7x on a sustained basis. A stable outlook would also depend on S&P's expectation that the company can continue to maintain its EBITDA base in a declining market, and that discretionary cash flow to debt is sustainable at greater than 2%. VISUALANT INC: Issues 22,980 Common Shares ------------------------------------------ Visualant, Incorporated, issued a total of 22,980 shares of common stock related to the conversion of $64,000 of debt and interest of $2,560 pursuant to a Securities Purchase Agreement dated Jan. 27, 2015. The shares were issued at an average of $2.785 per share, with a low price of $2.50 per share. The Company previously issued warrants to investors and partners which contained a provision that would require an adjustment in the exercise price if the Company issues common stock, warrants or equity below the price that is reflected in the warrants. These warrants included the following: 1. Series A Warrants to purchase a total of 348,685 shares of common stock at an exercise price of $22.50 per share. 2. Series B Warrants to purchase a total of 348,685 shares of common stock at an exercise price of $30.00 per share. 3. A warrant issued to IDMC to purchase 97,169 shares of common stock at an exercise price of $30.00 per share. 4. Series C Warrants to purchase 23,334 shares of common stock at an exercise price of $30.00 per share. 5. Series D Warrants to purchase 23,334 shares of common stock at an exercise price of $45.00 per share. The conversion shares issued at $2.50 per share adjusted the exercise price of the warrants detailed above to $2.50 per share. About Visualant Inc. Seattle, Wash.-based Visualant, Inc., was incorporated under the laws of the State of Nevada on Oct. 8, 1998. The Company develops low-cost, high speed, light-based security and quality control solutions for use in homeland security, anti- counterfeiting, forgery/fraud prevention, brand protection and process control applications. Visualant reported a net loss of $1 million on $7.98 million of revenue for the year ended Sept. 30, 2014, compared to a net loss of $6.60 million on $8.57 million of revenue for the year ended Sept. 30, 2013. As of June 30, 2015, the Company had $2.6 million in total assets, $5.6 million in total liabilities, all current, and a $3 million total stockholders' deficit. PMB Helin Donovan, LLP, in Seattle, Washington, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2014. The independent auditors noted that the Company has sustained a net loss from operations and has an accumulated deficit since inception. These factors, according to the auditors, raise substantial doubt about the Company's ability to continue as a going concern. VUZIX CORP: Provides Business Update and Q2 2015 Operating Results ------------------------------------------------------------------ Vuzix Corporation provided an update on its business initiatives and reported its second quarter financial results for the period ended June 30, 2015. Vuzix CEO and President Paul J. Travers said, "We are excited about the many advances we made during the second quarter of 2015 that position us for strong growth over time. The decline in revenue in the second quarter masks real strides that the Company has made in driving recurring sales of Vuzix M100 Smart Glasses, which is our top priority." Mr. Travers continued, "The composition of our sales mix represents a significant improvement compared to 2014, when the majority of M100 sales were non-recurring and made to early adopters and developers. By comparison, now we have customers that are placing larger orders and we expect the majority of these will be recurring in nature as these customers expand their pilots to actual live-use programs. Because of the fixed cost nature of our business, once sales start to build, we should see a meaningful positive impact on our gross and operating margins, as well as our cash flow." For the three months ended June 30, 2015, the Company reported a net loss before preferred dividends of $2.40 million on $427,812 of total sales compared to net income before preferred dividends of $239,110 on $723,258 of total sales for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss before preferred dividends of $7.49 million on $1.2 million of total sales compared to net income before preferred dividends of $1.75 million on $1.52 million of total sales for the same period during the prior year. As of June 30, 2015, the Company had $24.3 million in total assets, $2.96 million in total liabilities and $21.36 million in total stockholders' equity. As of June 30, 2015, the Company had cash and short-term marketable securities totaling of $20,047,989. The Company had a positive working capital position of $21,005,450 on June 30, 2015, versus a negative working capital position of $1,427,139 as of Dec. 31, 2014. The Company has paid down its accounts payable and is now investing in inventory and components for the launch of its iWear Video Headphones this fall. A full-text copy of the press release is available at: http://is.gd/HmTjII About Vuzix Corporation Vuzix -- http://www.vuzix.com/-- is a supplier of Video Eyewear products in the consumer, commercial and entertainment markets. The Company's products, personal display devices that offer users a portable high quality viewing experience, provide solutions for mobility, wearable displays and virtual and augmented reality. Vuzix holds 33 patents and 15 additional patents pending and numerous IP licenses in the Video Eyewear field. Founded in 1997, Vuzix is a public company with offices in Rochester, NY, Oxford, UK and Tokyo, Japan. The net loss for the year 2014 was $7.87 million versus a net loss of $10.1 million in 2013. WESCO AIRCRAFT: S&P Lowers Corp Credit Rating to B+, Outlook Stable ------------------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered its corporate credit rating on Wesco Aircraft Holdings Inc. to 'B+' from 'BB-'. The outlook is stable. At the same time, S&P lowered its issue-level rating on Wesco Aircraft Hardware Corp.'s (a subsidiary of Wesco Aircraft Holdings Inc.) secured credit facility to 'B+' from 'BB-'. The '3' recovery rating on the facility is unchanged, reflecting S&P's expectation that lenders would receive meaningful recovery (50%-70%; lower half of the range) in a default scenario. "Our downgrade of Wesco reflects the company's very tight compliance with the leverage covenants on its revolving credit facility and term loan A because of its weak earnings, which have primarily declined due to increased costs and decreasing organic revenue," said Standard & Poor's credit analyst Christopher Denicolo. S&P expects Wesco's margins to improve as the company addresses its cost structure, increases its revenue, and repays some of its debt with excess cash flow; however, this will barely offset the leverage covenant step-downs over the next 12 months. S&P now expects the company to post a debt-to-EBITDA metric of 4.5x-5.0x, a funds from operations (FFO)-to-debt ratio of 11%-15%, and an operating cash flow (OCF)-to-debt ratio of 11%-15% in fiscal-year 2015 (ending Sept. 30, 2015) before improving somewhat in 2016. The stable outlook on Wesco reflects that, although the company's acquisition of Haas weakened some of its credit metrics, the strength in the commercial aerospace market, management's cost reduction efforts, and some debt repayment should cause Wesco's credit ratios to gradually improve over the next 12 months. S&P expects the company to remain in compliance with the covenants on its revolver and term loan A over the next year, although its cushion will be very limited. S&P could lower its rating on Wesco if the company is unable to reduce its costs and increase it earnings, or if a lower-than-expected level of debt repayment causes its FFO-to-debt ratio to fall below 12% or its OCF-to-debt ratio to decline to less than 10% for a sustained period. S&P could also lower the rating if the company violates the covenants on its debt and is unable to get a waiver from its banks, further reducing its liquidity. S&P could raise its rating on Wesco if better-than-expected earnings or debt reduction improves the company's covenant cushion to at least 15% while its EBITDA margins improve such that its FFO-to-debt and OCF-to-debt ratios both rise above 15%. WEST COAST: Wants Authority to Use Cash Until August 31 ------------------------------------------------------- West Coast Growers, Inc., Central Valley Community Bank, and various growers ask the United States Bankruptcy Court for the Eastern District of California, Fresno Division, to approve a stipulation extending the Debtor's cash collateral budget to August 31, 2015. The stipulation provides that the Debtor's costs of operation, not including professional fees and costs, claims entitled to priority under Section 503 (b)(9)claims and quarterly fees owed to the United States Trustee, do not exceed $0.235/lb. per processed pound. The Court prohibited the Debtor from paying George Salwasser, an insider from the Debtor's payroll, any compensation, nor provide him with any other employee-related benefits, unless subsequently approved by the Court. West Coast Growers, Inc. is represented by: Hagop T. Bedoyan, Esq. Jacob L. Eaton, Esq. Lisa A. Holder, Esq. KLEIN, DENATALE, GOLDNER, COOPER, ROSENLIEB & KIMBALL, LLP 5260 N. Palm Avenue, Suite 201 Fresno, CA 93704 Tel.: 559 438-4374 Fax: 559 432-1847 Email: hbedoyan@kleinlaw.com jeaton@kleinlaw.com lholder@kleinlaw.com Central Valley Community Bank is represented by: Kurt F. Vote, Esq. Micaela L. Neal, Esq. WANGER JONES HELSLEY PC 265 E. River Park Circle, Suite 310 Fresno, CA 93720 Tel: (559) 233-4800 Fax: (559) 233-9330 Email: kvote@wjhattorneys.com mneal@wjhattorneys.com Various Growers are represented by: Riley C. Walter, Esq. WALTER & WILHELM LAW GROUP The Tower 205 E. River Park Circle, Suite 410 Fresno, CA 93720 Tel: (559) 435-9800 Fax: (559) 435-9868 Email: rileywalter@w2lg.com About West Coast Growers West Coast Growers, Inc., a Kerman, California-based processor and distributor of California raisins, sought Chapter 11 bankruptcy protection (Bankr. E.D. Cal. Case No. 15-11079) on March 20, 2015, in Fresno, California. The case is assigned to Judge W. Richard Lee. Related entity Salwasser, Inc. (the 100% shareholder of WCG) also sought bankruptcy protection on March 20, 2015 (Case No. 15-11080). Charlotte Ellen Salwasser filed a Chapter 11 petition (Case No. 15-10705) on Feb. 26, 2015. Ms. Salwasser and husband George Salwasser are the principals and 50% shareholders of Salwasser, Inc. Mr. Salwasser is the president of WCG, and Ms. Salwasser is the vice president and secretary of WCG. West Coast Growers disclosed total assets of $10.1 million and total liabilities of $59.6 million. Hagop T. Bedoyan, Esq., Jacob L. Eaton, Esq., at Lisa A. Holder, Esq., at Klein, Denatale, Goldner, Cooper, Rosenlieb & Kimball, LLP, serve as West Coast Growers' attorneys. Peter L. Fear, Esq., at Fear Law Group, P.C., represents Salwasser as counsel. The U.S. Trustee for Region 17 appointed two creditors of West Coast Growers Inc. to serve on the official committee of unsecured creditors. The Committee retains Blakeley LLP as its counsel. WPCS INTERNATIONAL: Completes Sale of Interest in China Operations ------------------------------------------------------------------ WPCS International Incorporated announced that on Aug. 14, 2015, it closed on the sale of its 60% joint venture and profit interest in Tai'an AGS Pipeline Construction Co. Ltd., a contractual joint venture established in accordance with the laws of the People’s Republic of China, to Canada-based Halcyon Coast Investment Ltd. On Aug. 5, 2015, the Company had received the requisite approval from the Tai'an Bureau of Commerce and Industry, which enabled the parties to finalize the transaction. According to Interim CEO Sebastian Giordano, "Having recently completed a $1,575,000 equity financing and secured a $1,000,000 line of credit, the remaining $1,150,000 of net proceeds from this transaction improves our liquidity even further." On June 3, 2015, the Company had entered into an agreement with HCI to sell TAGS in an "as-is", all-cash transaction, for a total purchase price of $1,500,000 and received a $150,000 refundable deposit at signing. Upon closing, the Company received the remaining cash proceeds of $1,350,000, of which (i) it paid approximately $100,000 in a broker's fee and (ii) $100,000 will be held in escrow, for up to one year from the date of the closing, pending a final determination by the Chinese government with respect to any tax obligations arising from the transaction. Otherwise, the transaction is not subject to any further post-closing adjustments. "I am very pleased to announce that this divestiture represents the final step in the restructuring plan we initiated back in August 2013. With our profitable Suisun Operation and the recent announcement that we have retained WestPark Capital as the Company's investment banker, we will be concentrating exclusively on growing our business both organically and strategically, the goal of which is to increase shareholder value," Giordano concluded. About WPCS International Incorporated WPCS -- http://www.wpcs.com/-- operates in two business segments including: (1) providing communications infrastructure contracting services to the public services, healthcare, energy and corporate enterprise markets worldwide; and (2) developing a Bitcoin trading platform. WPCS reported a net loss attributable to the Company's common shareholders of $11.3 million on $24.4 million of revenue for the year ended April 30, 2015, compared with a net loss attributable to the Company's common shareholders of $11.2 million on $15.7 million of revenue for the year ended April 30, 2014. As of April 30, 2015, the Company had $15.1 million in total assets, $15.3 million in total liabilities and a $139,064 total deficit. ZUCKER GOLDBERG: Gets Approval to Hire BMC as Balloting Agent ------------------------------------------------------------- Zucker Goldberg & Ackerman LLC sought and obtained authority from the U.S. Bankruptcy Court for the District of New Jersey to hire BMC Group Inc. as noticing and balloting agent. As noticing and balloting agent, BMC will maintain the creditor matrix and the core and master service lists, and prepare, coordinate and serve miscellaneous notices and pleadings to all creditors and parties-in-interest. The company may pay BMC's fees without the need to file formal fee applications, according to the court order signed by U.S. Bankruptcy Judge Christine Gravelle. About Zucker Goldberg Zucker, Goldberg & Ackerman, LLC sought Chapter sought Chapter 11 bankruptcy for protection on Aug. 3, 2015 (Bankr. D. N.J., Case No. 15-24585). The petition was signed by Michael S. Ackerman as managing member. The Debtor reported total assets of $11.5 million and total liabilities of $53.3 million as of June 30, 2015. Wasserman, Jurista & Stolz, P.C. serves the Debtor as counsel. Brown, Moskowitz & Kallen, P.C. acts as the Debtor's litigation counsel. The Debtor's noticing and balloting agent is BMC Group, Inc. The case is assigned to Judge Christine M. Gravelle. ZUCKER GOLDBERG: May Make Payments to Corelogic ----------------------------------------------- The Hon. Christine M. Gravelle of the U.S. Bankruptcy Court for the District of New Jersey authorized Zucker Goldberg & Ackerman, LLC, to make payments to Corelogic Default Technology Group. CoreLogic provides access to a web-based portal through which the Debtor bills certain clients, including the Debtor's largest client, Wells Fargo Bank, NA. CoreLogic has indicated it will no longer provide access to the portal without payment on certain prepetition invoices. The Debtor asserts that without CoreLogic's portal, the Debtor will not be able to bill for its postpetition services, which will significantly impair the Debtor's cash flow and postpetition operations. Accordingly, the Debtor reached an agreement with CoreLogic providing for a structured payment of the outstanding balance. The official committee of unsecured creditors and the Office of the U.S. Trustee will have rights reserved through Aug. 31, 2015, to review and raise any issue with the payment. About Zucker Goldberg Zucker, Goldberg & Ackerman, LLC sought Chapter sought Chapter 11 bankruptcy for protection on Aug. 3, 2015 (Bankr. D. N.J., Case No. 15-24585). The petition was signed by Michael S. Ackerman as managing member. The Debtor reported total assets of $11.5 million and total liabilities of $53.3 million as of June 30, 2015. Wasserman, Jurista & Stolz, P.C. serves the Debtor as counsel. Brown, Moskowitz & Kallen, P.C. acts as the Debtor's litigation counsel. The Debtor's noticing and balloting agent is BMC Group, Inc. The case is assigned to Judge Christine M. Gravelle. [^] Large Companies with Insolvent Balance Sheet ------------------------------------------------ Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE OU1 GR 149.9 (13.1) (8.1) ABSOLUTE SOFTWRE ALSWF US 149.9 (13.1) (8.1) ABSOLUTE SOFTWRE ABT CN 149.9 (13.1) (8.1) ADV MICRO DEVICE AMD* MM 3,381.0 (141.0) 1,052.0 ADVANCED EMISSIO ADES US 106.4 (46.1) (15.3) ADVANCED EMISSIO OXQ1 GR 106.4 (46.1) (15.3) ADVENT SOFTWARE ADVS US 424.8 (50.1) (110.8) AEROJET ROCKETDY AJRD US 1,898.1 (95.6) 143.6 AEROJET ROCKETDY GCY TH 1,898.1 (95.6) 143.6 AEROJET ROCKETDY GCY GR 1,898.1 (95.6) 143.6 AIR CANADA AC CN 12,374.0 (388.0) (53.0) AIR CANADA ACEUR EU 12,374.0 (388.0) (53.0) AIR CANADA ADH2 TH 12,374.0 (388.0) (53.0) AIR CANADA ACDVF US 12,374.0 (388.0) (53.0) AIR CANADA ADH2 GR 12,374.0 (388.0) (53.0) AK STEEL HLDG AKS* MM 4,335.4 (463.0) 863.4 ALLIANCE HEALTHC AIQ US 566.4 (89.6) 50.1 AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2) AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0 ANGIE'S LIST INC 8AL TH 176.1 (21.6) (26.0) ANGIE'S LIST INC ANGI US 176.1 (21.6) (26.0) ANGIE'S LIST INC 8AL GR 176.1 (21.6) (26.0) ARCADIA BIOSCIEN RKDA US 19.4 (7.3) 0.3 ARCADIA BIOSCIEN 17D GR 19.4 (7.3) 0.3 ARIAD PHARM ARIAEUR EU 543.0 (13.8) 209.9 ARIAD PHARM APS GR 543.0 (13.8) 209.9 ARIAD PHARM ARIA US 543.0 (13.8) 209.9 ARIAD PHARM ARIACHF EU 543.0 (13.8) 209.9 ARIAD PHARM ARIA SW 543.0 (13.8) 209.9 ARIAD PHARM APS TH 543.0 (13.8) 209.9 ASPEN TECHNOLOGY AST GR 315.4 (48.5) (32.8) ASPEN TECHNOLOGY AZPN US 315.4 (48.5) (32.8) AUTOZONE INC AZO US 8,032.4 (1,643.2) (742.6) AUTOZONE INC AZOEUR EU 8,032.4 (1,643.2) (742.6) AUTOZONE INC AZ5 TH 8,032.4 (1,643.2) (742.6) AUTOZONE INC AZ5 GR 8,032.4 (1,643.2) (742.6) AVID TECHNOLOGY AVID US 276.2 (338.1) (147.2) AVID TECHNOLOGY AVD GR 276.2 (338.1) (147.2) AVINTIV SPECIALT POLGA US 1,991.4 (3.9) 322.1 BARRACUDA NETWOR CUDA US 400.4 (31.3) 36.9 BARRACUDA NETWOR 7BM GR 400.4 (31.3) 36.9 BARRACUDA NETWOR CUDAEUR EU 400.4 (31.3) 36.9 BERRY PLASTICS G BP0 GR 5,011.0 (74.0) 634.0 BERRY PLASTICS G BERY US 5,011.0 (74.0) 634.0 BLUE BUFFALO PET B6B TH 459.5 (33.7) 258.1 BLUE BUFFALO PET BUFF US 459.5 (33.7) 258.1 BLUE BUFFALO PET B6B GR 459.5 (33.7) 258.1 BRINKER INTL EAT US 1,435.9 (78.5) (228.8) BRINKER INTL BKJ GR 1,435.9 (78.5) (228.8) BURLINGTON STORE BUI GR 2,683.1 (30.4) 161.9 BURLINGTON STORE BURL US 2,683.1 (30.4) 161.9 BURLINGTON STORE BURL* MM 2,683.1 (30.4) 161.9 CABLEVISION SY-A CVY GR 6,712.1 (4,951.2) 61.0 CABLEVISION SY-A CVCEUR EU 6,712.1 (4,951.2) 61.0 CABLEVISION SY-A CVC US 6,712.1 (4,951.2) 61.0 CABLEVISION SY-A CVY TH 6,712.1 (4,951.2) 61.0 CABLEVISION-W/I CVC-W US 6,712.1 (4,951.2) 61.0 CABLEVISION-W/I 8441293Q US 6,712.1 (4,951.2) 61.0 CAMBIUM LEARNING ABCD US 156.6 (75.1) (16.2) CASELLA WASTE WA3 GR 657.5 (18.9) (1.2) CASELLA WASTE CWST US 657.5 (18.9) (1.2) CEDAR FAIR LP 7CF GR 2,076.3 (3.5) (89.1) CEDAR FAIR LP FUN US 2,076.3 (3.5) (89.1) CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CHARTER COM-A CKZA GR 17,319.0 (31.0) (1,180.0) CHARTER COM-A CKZA TH 17,319.0 (31.0) (1,180.0) CHARTER COM-A CHTR US 17,319.0 (31.0) (1,180.0) CHOICE HOTELS CHH US 702.6 (385.5) 195.9 CHOICE HOTELS CZH GR 702.6 (385.5) 195.9 CINCINNATI BELL CIB GR 1,509.6 (403.5) (0.2) CINCINNATI BELL CBB US 1,509.6 (403.5) (0.2) CLEAR CHANNEL-A CCO US 6,188.4 (263.3) 386.6 CLEAR CHANNEL-A C7C GR 6,188.4 (263.3) 386.6 CLIFFS NATURAL R CLF* MM 2,609.4 (1,740.2) 623.8 CLIFFS NATURAL R CLF US 2,609.4 (1,740.2) 623.8 COLLEGIUM PHARMA COLL US 5.1 (12.2) (5.9) COMVERSE INC CNSI US 577.9 (7.2) 59.9 COMVERSE INC CM1 GR 577.9 (7.2) 59.9 CORIUM INTERNATI CORI US 59.3 (5.4) 31.2 CORIUM INTERNATI 6CU GR 59.3 (5.4) 31.2 CYAN INC CYNI US 112.1 (18.4) 56.9 CYAN INC YCN GR 112.1 (18.4) 56.9 DELEK LOGISTICS D6L GR 352.0 (15.8) 5.5 DELEK LOGISTICS DKL US 352.0 (15.8) 5.5 DIRECTV DTV US 25,321.0 (3,463.0) 1,360.0 DIRECTV DIG1 GR 25,321.0 (3,463.0) 1,360.0 DIRECTV DTVEUR EU 25,321.0 (3,463.0) 1,360.0 DIRECTV DTV CI 25,321.0 (3,463.0) 1,360.0 DOMINO'S PIZZA DPZ US 597.9 (1,245.7) 135.3 DOMINO'S PIZZA EZV GR 597.9 (1,245.7) 135.3 DOMINO'S PIZZA EZV TH 597.9 (1,245.7) 135.3 DUN & BRADSTREET DB5 GR 2,092.7 (1,217.9) (412.7) DUN & BRADSTREET DNB1EUR EU 2,092.7 (1,217.9) (412.7) DUN & BRADSTREET DNB US 2,092.7 (1,217.9) (412.7) DUN & BRADSTREET DB5 TH 2,092.7 (1,217.9) (412.7) DUNKIN' BRANDS G 2DB GR 3,358.7 (87.9) 269.5 DUNKIN' BRANDS G 2DB TH 3,358.7 (87.9) 269.5 DUNKIN' BRANDS G DNKN US 3,358.7 (87.9) 269.5 DURATA THERAPEUT DTA GR 82.1 (16.1) 11.7 DURATA THERAPEUT DRTXEUR EU 82.1 (16.1) 11.7 DURATA THERAPEUT DRTX US 82.1 (16.1) 11.7 EDGEN GROUP INC EDG US 883.8 (0.8) 409.2 ENERGIZER HOLDIN ENR US 1,117.1 (296.9) 316.4 ENERGIZER HOLDIN ENR-WEUR EU 1,117.1 (296.9) 316.4 ENERGIZER HOLDIN EGG QT 1,117.1 (296.9) 316.4 EOS PETRO INC EOPT US 1.2 (28.0) (29.1) EXELIXIS INC EX9 TH 248.8 (188.2) 31.5 EXELIXIS INC EX9 GR 248.8 (188.2) 31.5 EXELIXIS INC EXELEUR EU 248.8 (188.2) 31.5 EXELIXIS INC EXEL US 248.8 (188.2) 31.5 EXTENDICARE INC EXETF US 2,167.5 (10.8) (47.7) EXTENDICARE INC EXE CN 2,167.5 (10.8) (47.7) FENIX PARTS INC 9FP GR 0.9 (1.9) (1.9) FENIX PARTS INC FENX US 0.9 (1.9) (1.9) FERRELLGAS-LP FEG GR 1,592.9 (103.4) 23.7 FERRELLGAS-LP FGP US 1,592.9 (103.4) 23.7 FREESCALE SEMICO FSL US 3,165.0 (3,173.0) 1,257.0 FREESCALE SEMICO FSLEUR EU 3,165.0 (3,173.0) 1,257.0 FREESCALE SEMICO 1FS GR 3,165.0 (3,173.0) 1,257.0 FREESCALE SEMICO 1FS TH 3,165.0 (3,173.0) 1,257.0 GAMING AND LEISU 2GL GR 2,516.0 (135.8) 5.9 GAMING AND LEISU GLPI US 2,516.0 (135.8) 5.9 GARDA WRLD -CL A GW CN 1,401.9 (325.2) 39.5 GARTNER INC GGRA GR 1,861.0 (170.2) (138.5) GARTNER INC IT US 1,861.0 (170.2) (138.5) GENESIS HEALTHCA SH11 GR 6,103.4 (244.5) 228.5 GENESIS HEALTHCA GEN US 6,103.4 (244.5) 228.5 GENTIVA HEALTH GTIV US 1,225.2 (285.2) 130.0 GENTIVA HEALTH GHT GR 1,225.2 (285.2) 130.0 GLAUKOS CORP GKOS US 28.3 (4.4) (4.9) GLAUKOS CORP 6GJ GR 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IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 JUST ENERGY GROU JE CN 1,229.2 (528.2) (6.6) JUST ENERGY GROU JE US 1,229.2 (528.2) (6.6) JUST ENERGY GROU 1JE GR 1,229.2 (528.2) (6.6) L BRANDS INC LTD QT 6,804.4 (646.2) 928.4 L BRANDS INC LB US 6,804.4 (646.2) 928.4 L BRANDS INC LTD TH 6,804.4 (646.2) 928.4 L BRANDS INC LTD GR 6,804.4 (646.2) 928.4 L BRANDS INC LB* MM 6,804.4 (646.2) 928.4 L BRANDS INC LBEUR EU 6,804.4 (646.2) 928.4 LANTHEUS HOLDING LNTH US 233.6 (195.6) 41.4 LANTHEUS HOLDING 0L8 GR 233.6 (195.6) 41.4 LEAP WIRELESS LWI TH 4,662.9 (125.1) 346.9 LEAP WIRELESS LEAP US 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI GR 4,662.9 (125.1) 346.9 LORILLARD INC LO US 4,154.0 (2,134.0) 1,135.0 LORILLARD INC LLV GR 4,154.0 (2,134.0) 1,135.0 LORILLARD INC LLV TH 4,154.0 (2,134.0) 1,135.0 MAJESCOR RESOURC MJXEUR EU 0.1 (3.2) (3.2) MANNKIND CORP MNKDEUR EU 352.6 (115.5) (196.4) MANNKIND CORP NNF1 TH 352.6 (115.5) (196.4) MANNKIND CORP NNF1 GR 352.6 (115.5) (196.4) 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MCO US 4,999.5 (103.4) 1,939.2 MOODY'S CORP DUT QT 4,999.5 (103.4) 1,939.2 MOODY'S CORP DUT TH 4,999.5 (103.4) 1,939.2 MOODY'S CORP MCOEUR EU 4,999.5 (103.4) 1,939.2 MORGANS HOTEL GR MHGC US 520.6 (251.8) 24.8 MPG OFFICE TRUST 1052394D US 1,280.0 (437.3) - NATIONAL CINEMED NCMI US 1,010.5 (221.6) 73.0 NATIONAL CINEMED XWM GR 1,010.5 (221.6) 73.0 NAVISTAR INTL IHR GR 6,925.0 (4,744.0) 770.0 NAVISTAR INTL IHR TH 6,925.0 (4,744.0) 770.0 NAVISTAR INTL NAV US 6,925.0 (4,744.0) 770.0 NEFF CORP-CL A NEFF US 668.9 (187.7) 10.4 NEW ENG RLTY-LP NEN US 175.7 (29.1) - NORTHWEST BIO NBYA GR 64.2 (76.2) (95.3) NORTHWEST BIO NWBO US 64.2 (76.2) (95.3) NTELOS HOLDINGS NTLS US 700.2 (14.3) 185.6 OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0) OOMA INC OOMA US 33.9 (8.3) (6.0) OREXIGEN THERAPE OREX US 191.2 (4.2) 152.7 PALM INC PALM US 1,007.2 (6.2) 141.7 PBF LOGISTICS LP 11P GR 417.8 (199.9) 18.7 PBF LOGISTICS LP PBFX US 417.8 (199.9) 18.7 PHILIP MORRIS IN 4I1 QT 32,713.0 (11,798.0) (1,614.0) PHILIP MORRIS 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SANCHEZ ENERGY C SN US 1,935.3 (53.1) 206.7 SANCHEZ ENERGY C SN* MM 1,935.3 (53.1) 206.7 SANCHEZ ENERGY C 13S GR 1,935.3 (53.1) 206.7 SBA COMM CORP-A SBAC US 7,751.9 (1,133.2) 30.4 SBA COMM CORP-A SBJ GR 7,751.9 (1,133.2) 30.4 SBA COMM CORP-A SBACEUR EU 7,751.9 (1,133.2) 30.4 SBA COMM CORP-A SBJ TH 7,751.9 (1,133.2) 30.4 SBA COMM CORP-A SBJ QT 7,751.9 (1,133.2) 30.4 SCIENTIFIC GAM-A SGMS US 9,486.5 (260.1) 741.2 SCIENTIFIC GAM-A TJW GR 9,486.5 (260.1) 741.2 SEARS HOLDINGS SEE TH 13,186.0 (906.0) 2,092.0 SEARS HOLDINGS SHLD US 13,186.0 (906.0) 2,092.0 SEARS HOLDINGS SEE GR 13,186.0 (906.0) 2,092.0 SILVER SPRING NE 9SI TH 517.9 (104.9) (38.1) SILVER SPRING NE 9SI GR 517.9 (104.9) (38.1) SILVER SPRING NE SSNI US 517.9 (104.9) (38.1) SIRIUS XM CANADA SIICF US 297.1 (132.8) (177.9) SIRIUS XM CANADA XSR CN 297.1 (132.8) (177.9) SPIN MASTER -SVC SP9 GR 280.5 (52.3) (156.7) SPIN MASTER -SVC TOY CN 280.5 (52.3) (156.7) SPORTSMAN'S WARE SPWH US 305.8 (32.8) 77.8 SPORTSMAN'S WARE 06S GR 305.8 (32.8) 77.8 STINGRAY - SUB V RAY/A CN 128.2 (17.8) (41.0) STINGRAY DIG-VSV RAY/B CN 128.2 (17.8) (41.0) SUPERVALU INC SJ1 TH 4,491.0 (561.0) (77.0) SUPERVALU INC SJ1 GR 4,491.0 (561.0) (77.0) SUPERVALU INC SVU US 4,491.0 (561.0) (77.0) SYNERGY PHARMACE SGYPEUR EU 164.8 (21.9) 147.2 SYNERGY PHARMACE S90 GR 164.8 (21.9) 147.2 SYNERGY PHARMACE SGYP US 164.8 (21.9) 147.2 THERAVANCE THRX US 462.1 (294.0) 231.7 THERAVANCE HVE GR 462.1 (294.0) 231.7 THRESHOLD PHARMA NZW1 GR 73.9 (26.3) 46.6 THRESHOLD PHARMA THLD US 73.9 (26.3) 46.6 TRANSDIGM GROUP TDG US 8,350.4 (1,169.0) 1,349.8 TRANSDIGM GROUP T7D GR 8,350.4 (1,169.0) 1,349.8 TRINET GROUP INC TNET US 1,557.0 (7.9) 50.7 TRINET GROUP INC TNETEUR EU 1,557.0 (7.9) 50.7 TRINET GROUP INC TN3 GR 1,557.0 (7.9) 50.7 TRINET GROUP INC TN3 TH 1,557.0 (7.9) 50.7 UNISYS CORP UISCHF EU 2,163.6 (1,455.9) 177.2 UNISYS CORP UISEUR EU 2,163.6 (1,455.9) 177.2 UNISYS CORP UIS1 SW 2,163.6 (1,455.9) 177.2 UNISYS CORP USY1 TH 2,163.6 (1,455.9) 177.2 UNISYS CORP USY1 GR 2,163.6 (1,455.9) 177.2 UNISYS CORP UIS US 2,163.6 (1,455.9) 177.2 VECTOR GROUP LTD VGR QT 1,462.8 (1.7) 514.4 VECTOR GROUP LTD VGR GR 1,462.8 (1.7) 514.4 VECTOR GROUP LTD VGR US 1,462.8 (1.7) 514.4 VENOCO INC VQ US 598.9 (151.0) 207.6 VERISIGN INC VRS TH 2,570.7 (994.3) (15.0) VERISIGN INC VRSN US 2,570.7 (994.3) (15.0) VERISIGN INC VRS GR 2,570.7 (994.3) (15.0) VERIZON TELEMATI HUTC US 110.2 (101.6) (113.8) VERSEON CORP VSN LN - - - VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WW6 TH 1,341.2 (1,347.5) (207.2) WEIGHT WATCHERS WW6 GR 1,341.2 (1,347.5) (207.2) WEIGHT WATCHERS WTWEUR EU 1,341.2 (1,347.5) (207.2) WEIGHT WATCHERS WTW US 1,341.2 (1,347.5) (207.2) WEST CORP WSTC US 3,549.9 (625.9) 265.3 WEST CORP WT2 GR 3,549.9 (625.9) 265.3 WESTERN REFINING WNRL US 441.6 (27.7) 66.8 WESTERN REFINING WR2 GR 441.6 (27.7) 66.8 WESTMORELAND COA WME GR 1,777.6 (422.8) 40.1 WESTMORELAND COA WLB US 1,777.6 (422.8) 40.1 WINGSTOP INC WING US 117.4 (17.4) 6.0 WINGSTOP INC EWG GR 117.4 (17.4) 6.0 WINMARK CORP GBZ GR 45.3 (41.5) 11.5 WINMARK CORP WINA US 45.3 (41.5) 11.5 WYNN RESORTS LTD WYNN US 9,283.0 (110.7) 860.6 WYNN RESORTS LTD WYNN SW 9,283.0 (110.7) 860.6 WYNN RESORTS LTD WYNNCHF EU 9,283.0 (110.7) 860.6 WYNN RESORTS LTD WYR GR 9,283.0 (110.7) 860.6 WYNN RESORTS LTD WYR TH 9,283.0 (110.7) 860.6 WYNN RESORTS LTD WYNN* MM 9,283.0 (110.7) 860.6 XACTLY CORP XTLY US 52.7 (25.4) (6.8) XACTLY CORP XT4Y GR 52.7 (25.4) (6.8) XERIUM TECHNOLOG TXRN GR 578.2 (95.4) 75.9 XERIUM TECHNOLOG XRM US 578.2 (95.4) 75.9 YRC WORLDWIDE IN YRCW US 1,968.6 (445.2) 200.4 YRC WORLDWIDE IN YEL1 GR 1,968.6 (445.2) 200.4 YRC WORLDWIDE IN YEL1 TH 1,968.6 (445.2) 200.4 ********* 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 ***