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/raid1/www/Hosts/bankrupt/TCR_Public/151026.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, October 26, 2015, Vol. 19, No. 299 Headlines AIX ENERGY: Case Summary & 20 Largest Unsecured Creditors AIX ENERGY: Hires Harvey Law Firm as Counsel ALEXZA PHARMACEUTICALS: May Issue 500,000 Under Stock Plan ALLY FINANCIAL: Declares Dividends on Preferred Stock ALPHA NATURAL: Group Objects to Deal Allowing Coal Permit Renewal AMERICAN POWER: Authorized Common Shares Hiked to 200 Million AOXING PHARMACEUTICAL: Releases Copy of Investor Presentation ARCH COAL: NY State Judge Declines to Protect Debt-Swap Deal ATLANTIC & PACIFIC: Estevez Buying Old Tappan Assets for $300K ATLANTIC & PACIFIC: PSK, 2 Others Selected as Winning Bidders ATLANTIC & PACIFIC: To Sell Assets to H Mart, 5 Others for $22.4M BERNARD L. MADOFF: Trustee Wants $1.5B Payout Approved BILTMORE INVESTMENTS: Confirmation Terminates Stay, 4th Circ. Says BLAND BUSINESS TRUST: Case Summary & 3 Top Unsecured Creditors BNB PROPERTIES: Case Summary & 3 Largest Unsecured Creditors CAESARS ENTERTAINMENT: Asks 7th Circ. to Save It from Litigation CAESARS ENTERTAINMENT: Wilmington Trust Sues Over Notes Guarantee CALMARE THERAPEUTICS: Shareholders Elect 7 Directors CARDIAC SCIENCE: Appointment of Chapter 11 Trustee Sought CARDIAC SCIENCE: Hires Garden City Group as Notice & Claims Agent CARDIAC SCIENCE: Parent, Former Directors Oppose Financing Motion CIT GROUP: Fitch Retains 'BB+' LT IDR Over CEO Retirement CIT GROUP: Moody's Affirms 'B1' Senior Unsecured Rating CLOUD PEAK: Moody's Cuts Probability of Default Rating to B1 COMMUNITY HOME: Pennymac Seeks Automatic Stay Relief COMSTOCK MINING: Incurs $7.95 Million Net Loss in Third Quarter COMSTOCK MINING: Reports Third Quarter 2015 Results CTI BIOPHARMA: John Bauer Resigns as Director CTP TRANSPORTATION: S&P Lowers CCR to 'B', Outlook Stable CW MINING: Hiawatha Coal Proceeds Not Property of Estate CYANCO INTERMEDIATE: S&P Affirms 'B' CCR, Outlook Stable DETROIT, MI: Governor Readies Legislation to Fix Public Schools DEWEY & LEBOEUF: Exes Still in Hot Water Despite Mistrial Verdict DURANGO GEORGIA: Equitable Subordination of PBGC's Claim Disallowed EHC LLC: Voluntary Chapter 11 Case Summary ELBIT IMAGING: Announces Series H and I Notes Buy-Back ELBIT IMAGING: InSightec Seeks FDA OK of Exablate Neuro Treatment ENDEAVOUR INTERNATIONAL: Has Approval for Structured Dismissal ENERGY FUTURE: Junior Noteholders Assert Make-Whole Payment Claim ENERGY XXI: Moody's Cuts Corporate Family Rating to Caa3 ENERGYSOLUTIONS INC: S&P Lowers CCR to 'B', Outlook Stable FIRST DATA: Citadel Reports Ownership of 9.56M Class A Shares FOURTH QUARTER PROPERTIES: MLIC Seeks Automatic Stay Relief FREE GOSPEL: Hires Capstar Commercial as Realtor GEOMET INC: Central Securities No Longer Owns Shares as of Sept. 29 GERTI MUHO: Files for Chapter 11 Protection in Florida GOE LIMA: SunTrust's Bid to Dismiss Smith-Boughan Suit Denied GOLDEN PARK ESTATES: Court OKs Interim Payment to Ch. 11 Trustee GT ADVANCED: $1.1M Sale of Hyperion Assets to Neutron Okayed HAGGEN HOLDINGS: "Carpenter" Suit Stayed by Bankruptcy Filing HERCULES OFFSHORE: Investors Appeal Exculpation Denial HORNED DORSET: Seeks 15-Day Ext. to File Monthly Operating Reports HOWREY LLP: Trustee and Creditors Want Case Converted to Chapter 7 HYDROCARB ENERGY: Closes $1.2 Million Secured Note Financing INVENTIV HEALTH: Q3 Conference Call Set for Nov. 16 J & S PROPERTIES: Court Dismisses Tenant's Suit vs. Ch. 7 Trustee LB STEEL LLC: Has Interim OK to Use MB Financial's Cash Collateral LB STEEL LLC: Seeks 30-Day Extension for Filing Schedules LEHMAN BROTHERS: Appeals Ruling on U.S.-U.K. Tax Treaty LG BENEDICT CANYON: Case Summary & Largest Unsecured Creditor MARINA BIOTECH: Stockholders Elect 5 Directors MF GLOBAL: Execs Ask for Errors and Omissions Coverage Extension N-VIRO INTERNATIONAL: Joseph Scheib Quits as Director NATIONAL CINEMEDIA: Signs Separation Agreement with CEO Kurt Hall OSAGE EXPLORATION: Suspending Filing of Reports with SEC PATRIOT COAL: Sues Parent Over $145M Retiree Payment Obligations PERFORMANCE SPORTS: S&P Lowers CCR to 'B', Outlook Stable POINT BLANK: Equity Committee Has Limited Objection to Plan PORTER BANCORP: Glenn Hogan Reports 11% Stake as of March 2 POSITIVEID CORP: To Acquire Thermomedics for $750,000 PRECISION OPTICS: Obtains $700,000 From Common Stock Offering RELATIVITY MEDIA: Resolves Objections to $125M Television Biz Sale ROUNDY'S SUPERMARKETS: S&P Cuts Rating on 2021 Term Loan to 'B-' SANTA FE GOLD: Stalking Horse PA with Waterton Global Approved SEAL123: Debtor Wants Until Jan. 11, 2016 to Remove Actions SEANERGY MARITIME: Announces Delivery of Two Vessels SHELLEY FOOD STORES: Voluntary Chapter 11 Case Summary SRT SOLUTIONS: Case Summary & 20 Largest Unsecured Creditors STUYVESANT TOWN-PETER: New Owners to Loan $141M to Preserve Unit TEMPLE UNIVERSITY: S&P Raises LongTerm Rating From 'BB+' TENET HEALTHCARE: Reaffirms Adjusted EBITDA Outlook for Q3 2015 TRANS-LUX CORP: Has Rights Offering of 51,063 Preferred Shares UNITED SUPPORT: Nov. 6 Meeting Set to Form Creditors' Panel VALLEY VIEW DOWNS: Trustee Can't Clawback $16MM from Merit Mngt. VERITEQ CORP: Gets Notice of Disposition of Collateral from Magna VIRGINIA BROADBAND: Allowance of Former CEO's Claims Affirmed WAFERGEN BIO-SYSTEMS: Empery Reports 5.2% Stake as of Oct. 16 WAFERGEN BIO-SYSTEMS: Files Series 2 Certificate of Designation WALTER ENERGY: Wants Plans Filing Exclusivity Until March WPCS INTERNATIONAL: Unit Has Change in Control Pact with President WRIGHTWOOD GUEST: Hires Hall & Company as Accountant WRIGHTWOOD GUEST: Taps Baker Manock as Special Counsel XINERGY CORP: OK'd to Reject Agreement with VP-Investor Relations XINERGY LTD: Jeffrey Wilson Okayed as Senior VP-Operations YUM! BRANDS: CDS Spikes Widest on Spinoff Plans, Fitch Says [*] Allan D. Reiss Joins Greenberg Traurig as Shareholder [*] Dentons Nabs Prosecutor for White Collar Work in Chicago [*] External Tailwinds Lead to Limited Credit Uplift, Fitch Says [*] M&A Risks Remain Even as LBO Deals Decline, Fitch Says [*] Moody's B3 Negative List Tops 220 on Oil & Gas Downgrades [*] Moody's: North American Covenant Quality Continues to Weaken [*] Supreme Court May Weigh In on Student Debt Battle [^] BOND PRICING: For the Week from October 19 to 23, 2015 ********* AIX ENERGY: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: AIX Energy, Inc. 8401 N. Central Expressway, Suite 840 Dallas, TX 75225 Case No.: 15-34245 Chapter 11 Petition Date: October 22, 2015 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Hon. Barbara J. Houser Debtor's Counsel: Keith William Harvey, Esq. THE HARVEY LAW FIRM, P.C. 6510 Abrams Road, Suite 280 Dallas, TX 75231 Tel: (972) 243-3960 Fax: (214) 241-3970 Email: harvey@keithharveylaw.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Robert A. Imel, president. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ AIX Energy Partners I, Inc. $4,417,139 641 Lexington Avenue 26th Floor New York, NY 10022 Angelina Tank & MFG. $112,428 B & N Contractors, Inc. $119,028 Baker Hughes $366,753 P.O. Box 301057 Dallas, TX 75303-1057 Basics Energy Services $740,892 P.O. Box 841903 Dallas, TX 75284-1903 C.C. Forbes, LLC $104,099 CDM Resource Management, LLC $102,126 Dependable Pump & Supply Inc. $80,569 Gladiator Energy Services, LLC $176,337 Globe Energy Services $857,172 P.O. Box 204676 Dallas, TX 75320-4676 Hunt Oil Company $105,856 Hydrostatic Oilfield Testing Inc. $82,475 John L. Robertson, Inc. $321,396 P.O. Box 1600 Jasper, TX 75951-1600 Louisiana Mineras, Ltd. $378,312 P.O. Box 1142 Houston, TX 77251 Petrotech Solutions LLC $110,444 Pinnergy Ltd $155,000 Red Rock Rentals, LLC $82,974 Schlumberger Technology Corp. $549,636 P.O. Box 732149 Dallas, TX 75373-2149 United States Department of Energy $101,953 Whiting Oil & Gas Corporation $429,467 1700 Broadway, Suite 2300 Denver, CO 80290-2300 AIX ENERGY: Hires Harvey Law Firm as Counsel -------------------------------------------- AIX Energy, Inc., seeks permission from the Bankruptcy Court to employ The Harvey Law Firm, P.C., as its counsel. THLF will: (a) give the Debtor legal advice with respect to its duties and powers; (b) assist the Debtor in its investigation of its assets, liabilities, and financial condition, business, and any other matter relevant to the bankruptcy case or to the formulation of a plan or plans of reorganization; (c) file schedules and statements of financial affairs and other other pleadings or document deemed necessary on behalf of the Debtor; (d) participate with the Debtor in the formulation of a plan or plans of reorganization, including, if necessary, attend and assist in negotiation sessions, discussions and meetings with its creditors; (e) assist the Debtor in the sale of its assets pursuant to Section 363 of the Bankruptcy Code; (f) assist the Debtor in requesting the appointment of professional persons; (g) represent the Debtor at all hearings, including but not limited to motions, trials, rejection and acceptance of executory contracts, disclosure statement and plan confirmation; and (h) perform other legal services as may be required and in the best interest of the Debtor and its estate, including, but not limited to, prosecution of appropriate adversary proceedings. The hourly billing rates for attorneys at THFL are: Keith Harvey $400 Daniel Chern $375 Paralegals $135 The Debtor will also reimburse the Firm for out-of-pocket expenses. Prior to the Petition Date, the Firm received payments from the Debtor in the amount of $28,273 for prepetition work. THFL also received a retainer of $10,000. To the best of the Debtor's knowledge, THLF is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About AIX Energy AIX Energy, Inc. sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 15-34245) on Oct. 22, 2015. The petition was signed by Robert A. Imel as president. The Debtor estimated both assets and liabilities in the range of $10 million to $50 million. The Harvey Law Firm, P.C. represents the Debtor as counsel. Judge Barbara J. Houser is assigned to the case. ALEXZA PHARMACEUTICALS: May Issue 500,000 Under Stock Plan ---------------------------------------------------------- Alexza Pharmaceuticals, Inc., filed a Form S-8 registration statement with the Securities and Exchange Commission to register 500,000 shares of common stock issuable under the Company's 2015 Employee Stock Purchase Plan. The proposed maximum aggregate offering price is $610,000. A copy of the prospectus is available for free at http://is.gd/7MrWUo About Alexza Mountain View, California-based Alexza Pharmaceuticals, Inc., was incorporated in the state of Delaware on Dec. 19, 2000, as FaxMed, Inc. In June 2001, the Company changed its name to Alexza Corporation and in December 2001 became Alexza Molecular Delivery Corporation. In July 2005, the Company changed its name to Alexza Pharmaceuticals, Inc. The Company is a pharmaceutical development company focused on the research, development, and commercialization of novel proprietary products for the acute treatment of central nervous system conditions. As of June 30, 2015, the Company had $32.6 million in total assets, $96.5 million in total liabilities, and a stockholders' deficit of $63.9 million. Alexza Pharmaceuticals reported a net loss of $36.7 million in 2014 compared to a net loss of $39.6 million in 2013. Ernst & Young LLP, in Redwood City, California, 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 and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. ALLY FINANCIAL: Declares Dividends on Preferred Stock ----------------------------------------------------- Ally Financial Inc. has declared quarterly dividend payments for certain outstanding preferred stock. Each of these dividends were declared by the board of directors on Oct. 21, 2015, and are payable on Nov. 16, 2015. A quarterly dividend payment was declared on Ally's Fixed Rate Cumulative Perpetual Preferred Stock, Series G, of approximately $22.3 million, or $17.31 per share, and is payable to shareholders of record as of Nov. 1, 2015. Additionally, a dividend payment was declared on Ally's Fixed Rate/Floating Rate Perpetual Preferred Stock, Series A, of approximately $14.8 million, or $0.53 per share, and is payable to shareholders of record as of Nov. 1, 2015. About Ally Financial Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/-- is one of the world's largest automotive financial services companies. The Company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3 percent stake. Private equity firm Cerberus Capital Management LP keeps 14.9 percent, while General Motors Co. owns 6.7 percent. As of June 30, 2015, the Company had $156.4 billion in total assets, $142.1 billion in total liabilities and $14.2 billion in total equity. * * * As reported by the TCR on Dec. 16, 2013, Standard & Poor's Ratings Services said it raised its issuer credit rating on Ally Financial Inc. to 'BB' from 'B+'. "The upgrade reflects the company's release from potential legal and financial liabilities stemming from its ownership of ResCap," said Standard & Poor's credit analyst Tom Connell. In the April 3, 2014, edition of the TCR, Fitch Ratings has upgraded Ally Financial Inc.'s long-term Issuer Default Rating (IDR) and senior unsecured debt rating to 'BB+' from 'BB'. The rating upgrade reflects increased clarity around Ally's ownership structure given Ally's recent announcement that it has launched an initial public offering those shares of its common stock held by the U.S. Treasury (the Treasury). As reported by the TCR on July 16, 2014, Moody's Investors Service affirmed the 'Ba3' corporate family and 'B1' senior unsecured ratings of Ally Financial, Inc. and revised the outlook for the ratings to positive from stable. Moody's affirmed Ally's ratings and revised its rating outlook to positive based on the company's progress toward sustained improvements in profitability and repayment of government assistance received during the financial crisis. ALPHA NATURAL: Group Objects to Deal Allowing Coal Permit Renewal ----------------------------------------------------------------- The Associated Press reported that an agreement that would enable a coal company seeking bankruptcy protection to renew a state mine permit despite not meeting pre-existing state bonding requirements ignores the law, the organizer of a landowner group said. According to AP, Shannon Anderson of the Powder River Basin Resource Council said the agreement falls short of enabling the state to secure the almost $200 million that would be needed to reclaim Alpha Natural Resources' Eagle Butte mine near Gillette, Wyoming. Peg Brickley, writing for Dow Jones' Daily Bankruptcy Review, reported that Alpha Natural is selling a collection of closed coal mines as it revamps its business in bankruptcy. At least 16 idled mines in West Virginia, Kentucky, Tennessee and Illinois are being put up for sale in Alpha's chapter 11 bankruptcy proceeding, which began in August, the DBR report said. About Alpha Natural Alpha Natural -- http://www.alphanr.com/-- is a coal supplier, ranked second largest among publicly traded U.S. coal producers as measured by 2014 consolidated revenues of $4.3 billion. Alpha Natural Resources, Inc. (Bankr. E.D. Va. Case No. 15-33896) and its affiliates filed separate Chapter 11 bankruptcy petitions on Aug. 3, 2015, listing $9.9 billion in total assets as of June 30, 2015, and $7.3 billion in total liabilities as of June 30, 2015. The petition was signed by Richard H. Verheij, executive vice president, general counsel and corporate secretary. Judge Kevin R. Huennekens presides over the case. David G. Heiman, Esq., Carl E. Black, Esq., and Thomas A. Wilson, Esq., at Jones Day serve as the Debtors' general counsel. Tyler P. Brown, Esq., J.R. Smith, Esq., Henry P. (Toby) Long, III, Esq., and Justin F. Paget, Esq., serve as the Debtors' local counsel. Rothschild Group is the Debtors' financial advisor. Alvarez & Marshal Holdings, LLC, is the Debtors' investment banker. Kurtzman Carson Consultants, LLC, is the Debtors' claims and noticing agent. The U.S. Trustee for Region 4 appointed seven creditors of Alpha Natural Resources Inc. to serve on the official committee of unsecured creditors. AMERICAN POWER: Authorized Common Shares Hiked to 200 Million ------------------------------------------------------------- American Power Group Corporation held a special meeting of stockholders on Oct. 21, 2015, at which the Company's stockholders approved (i) an amendment to the Certificate of Designation of Preferences, Rights and Limitations of the Company's 10% Convertible Preferred Stock, to exclude certain issuances of securities from triggering anti-dilution adjustments to the conversion ratio of such preferred stock, and (ii) an amendment to the Company's Restated Certificate of Incorporation, to increase the number of authorized shares of Common Stock from 150,000,000 to 200,000,000. On Oct. 21, 2015, upon the filing by the Company of a Certificate of Designation of Preferences, Rights and Limitations of Series C Convertible Preferred Stock with the Secretary of State of Delaware, the Company's Subordinated Contingent Convertible Promissory Notes in the aggregate principal amount $2,475,000, together with all accrued but unpaid interest thereon, automatically converted into 257.061 shares of the Company's Series C Convertible Preferred Stock at a conversion price of $10,000 per share. Each share of Series C Preferred Stock is convertible, at any time at the option of any holder, into 50,000 shares of the Company's Common Stock; i.e., at an initial conversion price of $0.20 per share. The conversion ratio of the Series C Preferred Stock is subject to adjustment in the event that, with certain exceptions, the Company issues shares of Common Stock or other securities convertible into or exchangeable for Common Stock at a price per share that is less than the then applicable conversion price of the Series C Preferred Stock. The Series C Preferred Stock does not bear dividends. The holders of the Series C Preferred Stock will vote with the holders of the Common Stock and the holders of the Company's 10% Convertible Preferred Stock and Series B 10% Convertible Preferred Stock on all matters presented to the holders of the Preferred Stock, on a Common Stock-equivalent basis. In addition to certain approval rights of the holders of the Series A Preferred Stock and/or the Series B Preferred Stock, the approval of the holders of at least 67% of the outstanding shares of Series C Preferred Stock will be required before the Company may take certain actions as described in the Certificate of Designation. The holders of the Series C Preferred Stock have priority in the event of a liquidation of the Company over the outstanding shares of Common Stock. Upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, before any distribution or payment is made to the holders of the Common Stock, the holders of the Preferred Stock will be entitled to be paid out of the assets of the Company an amount equal the stated value of the Preferred Stock, which is initially $10,000 per share, plus (in the case of the Series A Preferred Stock and the Series B Preferred Stock) any accrued, but unpaid, dividends. The Preferred Stock may be required to convert into shares of Common Stock at the Company's election if the trading price of the Common Stock meets certain thresholds as set forth in the Certificate of Designation. If the Company fails to meet certain obligations affecting the Preferred Stock, the holders of Preferred Stock may require the Company to redeem the Preferred Stock. The holders of the Series C Preferred Stock have other rights set forth in the Certificate of Designation. About American Power Group American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100 percent diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 80% of the normal diesel fuel consumption with the average displacement ranging from 40 percent to 65 percent. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. Additional information at http://www.americanpowergroupinc.com/ American Power reported a net loss available to common stockholders of $3.25 million on $6.28 million of net sales for the year ended Sept. 30, 2014, compared to a net loss available to common stockholders of $2.92 million on $7.01 million of net sales for the year ended Sept. 30, 2013. As of June 30, 2015, the Company had $8.9 million in total assets, $7.7 million in total liabilities and $1.1 million in total stockholders' equity. AOXING PHARMACEUTICAL: Releases Copy of Investor Presentation ------------------------------------------------------------- Aoxing Pharmaceutical Company, Inc., furnished a current report on Form 8-K with the Securities and Exchange Commission in connection with the disclosure of information, in the form of the textual information from a PowerPoint presentation, to be given at meetings with institutional investors or analysts. A copy of the slide presentation titled "Aoxing Pharmaceutical Company, Inc." is available for free at http://is.gd/rW8l2b About Aoxing Aoxing Pharmaceutical Company, Inc., has one operating subsidiary, Hebei Aoxing Pharmaceutical Co., Inc., which is organized under the laws of the People's Republic of China. Since 2002, Hebei Aoxing has been engaged in developing narcotics and pain management products. In 2008 Hebei Aoxing supplemented its product lines by acquiring Shijiazhuang Lerentang Pharmaceutical Company, Ltd., a specialty pharmaceutical company focusing on herbal pain related therapeutics. The Company owns 95% of the equity in Hebei Aoxing. Aoxing Pharmaceutical reported net income attributable to shareholders of the Company of $5.49 million on $25.48 million of sales for the year ended June 30, 2015, compared to a net loss attributable to shareholders of the Company of $8.21 million on $12.7 million of sales for the year ended June 30, 2014. As of June 30, 2015, the Company had $53.0 million in total assets, $42.97 million in total liabilities and $10.1 million in total equity. BDO China Shu Lun Pan Certified Public Accountants LLP, in Shanghai, People's Republic of China, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, stating that the Company accumulated a large deficit and a working capital deficit that raise substantial doubt about its ability to continue as a going concern. ARCH COAL: NY State Judge Declines to Protect Debt-Swap Deal ------------------------------------------------------------ Stephanie Gleason at The Wall Street Journal reported that a New York state judge has sided with a group of lenders that are blocking an Arch Coal Inc. debt-swap deal, effectively halting a transaction that advocates have said would keep the coal company out of bankruptcy. Judge Saliann Scarpulla of the New York State Supreme Court denied a request by an affiliate of GSO Capital Partners that she prevent a group of majority lenders from freezing the debt swap. The standard for granting such a request is that the judge must find that allowing the lenders to proceed would do "irreparable harm." She didn't find that to be the case. "Because I find that Plaintiff's alleged harm can be fully compensated by money damages by the Directing Defendants, Plaintiff's harm is not irreparable. Plaintiff argues that, if Arch enters bankruptcy, any claim for money damages against the Directing Defendants would be more complex to prove. This, however, is not sufficient to establish irreparable harm," she said in her ruling issued on Oct. 16. Arch Coal, one of the country's largest coal producers, is trying to get creditors to swap their debt in exchanges designed to improve Arch's balance sheet as the coal market faces continued weakness. The proposed exchange offer would reduce the company's $5 billion debt load, including $3.2 billion in bond debt, by as much as $990 million and lower its annual interest expense by $74 million. Bondholders can accept the offer until Oct. 26. However, a majority of lenders holding more than $1 billion of Arch Coal's $1.9 billion in senior loan debt have directed their agent, Wilmington Trust NA, not to execute the documents necessary to complete the deal, an action that will prevent the exchange from moving forward. The lenders say the deal benefits bondholders to the detriment of senior lenders and was negotiated without their input. The GSO unit, GSO Special Situations, filed its lawsuit last month, requesting that the court force Wilmington Trust to execute the documents. GSO argued in the lawsuit that the lenders' consent isn't necessary and that the deal is Arch's only hope of avoiding bankruptcy. It is a "near certainty" that Arch will land in bankruptcy if the debt exchange offer doesn't go through, GSO said in court papers, adding during a hearing late last month that the company has retained restructuring attorneys at Davis Polk & Wardwell LLP. GSO declined to comment on Judge Scarpulla's ruling. About Arch Coal Arch Coal, Inc.'s primary business is the production of thermal and metallurgical coal from surface and underground mines located throughout the United States, for sale to utility, industrial and steel producers both in the United States and around the world. The Company currently operates mining complexes in West Virginia, Maryland, Virginia, Illinois, Wyoming and Colorado. Arch Coal reported a net loss of $558 million in 2014, a net loss of $642 million in 2013 and a net loss of $684 million in 2012. As of June 30, 2015, the Company had $8 billion in total assets, $6.6 billion in total liabilities and $1.4 billion in total stockholders' equity. * * * The Troubled Company Reporter, on July 8, 2015, reported that Fitch Ratings has downgraded the Issuer Default Rating of Arch Coal, Inc. to 'C' from 'CCC'. The downgrade follows Arch Coal's announcements of exchange offers which Fitch considers Distressed Debt Exchanges in accordance with Fitch's Distressed Debt Exchange criteria. The TCR, on May 6, 2015, reported that Moody's Investors Service downgraded the corporate family rating of Arch Coal to 'Caa3' from 'Caa1' and the probability default rating to 'Caa3-PD' from 'Caa1-PD'. The downgrade follows the continued stress on the coal sector, and the resulting deterioration in the company's credit metrics. At the same time, Moody's downgraded the ratings on the senior secured term loan and bank revolving facility to 'Caa1' from 'B2', the second lien notes to Caa3 from Caa1, and all unsecured notes to 'Ca', from 'Caa2'. Moody's also affirmed the Speculative Grade Liquidity rating of SGL-3. The outlook is negative. As reported by the TCR on July 9, 2015, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Arch Coal to 'CC' from 'CCC+'. Standard & Poor's Ratings Services said it lowered its corporate credit rating on Arch Coal to 'CC' from 'CCC+'. The rating action reflects Arch Coal's July 3, 2015, announcement of a private debt exchange offer for its senior unsecured debt. ATLANTIC & PACIFIC: Estevez Buying Old Tappan Assets for $300K -------------------------------------------------------------- Great Atlantic & Pacific Tea Company Inc. has entered into an agreement with Estevez Markets Inc., which offered $300,000 to buy some of the assets used in operating its New Jersey store. Estevez Markets offered to purchase the assets used in operating the company's store located along Old Tappan Road, in Old Tappan, New Jersey. The companies signed the deal following a two-day auction held earlier this month where Estevez Markets emerged as the winning bidder. Estevez Markets beat out rival bidder Key Food Stores Co-Operative Inc. The deal is subject to approval by the U.S. Bankruptcy Court for the Southern District of New York, which oversees Great Atlantic's Chapter 11 case. 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. The Debtor disclosed total assets of $601,441,108 and total liabilities of $1,984,459,086 as of the Petition Date. 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 to serve on the official committee of unsecured creditors. Pachulski Stang Ziehl & Jones LLP serves as its counsel, and Zolfo Cooper, LLC serves as its financial advisors and bankruptcy consultants. Elise S. Frejka was appointed as consumer privacy ombudsman. ATLANTIC & PACIFIC: PSK, 2 Others Selected as Winning Bidders ------------------------------------------------------------- PSK Supermarkets Inc., Food Bazaar and Dave-Marion Corp. emerged as the winning bidders at a recently concluded auction for Great Atlantic & Pacific Tea Company Inc.'s assets. Great Atlantic selected an offer from Food Bazaar to acquire some of its assets, including leases for its stores located at 211 Elmora Avenue, Elizabeth, and at 425 Anderson Avenue, Fairview, in New Jersey. Food Bazaar beat out rival bidders Lemes Supermarkets LLC and Key Food Stores Co-Operative Inc., according to court filings. PSK Supermarkets won the auction for Great Atlantic's assets, including leases on its stores located at 300 West 145th Street, New York, and at 245 Route 25A, Rocky Point, in New York. The assets will be sold to Key Food, which was selected as the "back-up bidder," in case Great Atlantic's sale transaction with the winning bidder falls through. Meanwhile, Great Atlantic selected Dave-Marion Corp.'s bid for its assets, which include a lease on its store located at 460 County Line Road Route 520, in Marlboro, New Jersey. Key Food will be the back-up bidder for the assets, court filings show. 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. The Debtor disclosed total assets of $601,441,108 and total liabilities of $1,984,459,086 as of the Petition Date. 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 to serve on the official committee of unsecured creditors. Pachulski Stang Ziehl & Jones LLP serves as its counsel, and Zolfo Cooper, LLC serves as its financial advisors and bankruptcy consultants. Elise S. Frejka was appointed as consumer privacy ombudsman. ATLANTIC & PACIFIC: To Sell Assets to H Mart, 5 Others for $22.4M ----------------------------------------------------------------- An affiliate of Great Atlantic & Pacific Tea Company Inc. has entered into six separate agreements for the sale of its assets. The agreements call for the sale of A&P Real Property LLC's assets, including its leases on six stores in New York. The company will receive $22.38 million from the transactions. A&P received offers from 410 West 207th Acquisition LLC, H Mart Inc., Saxon Sunrise Realty LLC, Shanghai Enterprises LLC, Wakefern Food Corp., and Feil Whitestone LLC and East 11th Holding LLC. The companies signed the agreements with A&P following a two-day auction held earlier this month where they emerged as the winning bidders. The sale transactions are subject to approval by the U.S. Bankruptcy Court for the Southern District of New York, which oversees A&P's Chapter 11 case. 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. The Debtor disclosed total assets of $601,441,108 and total liabilities of $1,984,459,086 as of the Petition Date. 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 to serve on the official committee of unsecured creditors. Pachulski Stang Ziehl & Jones LLP serves as its counsel, and Zolfo Cooper, LLC serves as its financial advisors and bankruptcy consultants. Elise S. Frejka was appointed as consumer privacy ombudsman. BERNARD L. MADOFF: Trustee Wants $1.5B Payout Approved ------------------------------------------------------ Carmen Germaine at Bankruptcy Law360 reported that the liquidating trustee for Bernie Madoff's investment fund asked a New York bankruptcy judge on Oct. 19, 2015, for permission to distribute $1.5 billion to Madoff investors after a U.S. Supreme Court order earlier this month paved the way for the distribution. Irving H. Picard, the Securities Investor Protection Act trustee tasked with winding down Bernard L. Madoff Investment Securities LLC, renewed a request to make a sixth round of payments after the Supreme Court in early October declined to review a Second Circuit decision. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). From recoveries in lawsuits coupled with money advanced by SIPC, Mr. Picard has commenced distributions to victims. As of the end of May 2015, the SIPA Trustee has recovered more than $10.699 billion and has distributed approximately $7.576 billion. When additional settlements awaiting distribution are taken into account, the recovery in the Madoff liquidation proceeding totals $10.734 billion. BILTMORE INVESTMENTS: Confirmation Terminates Stay, 4th Circ. Says ------------------------------------------------------------------ The United States Court of Appeals for the Fourth Circuit vacated the district court's December 22, 2014, order which reversed the bankruptcy court's order, and concluded that the automatic stay bars TD Bank, N.A., from satisfying its state court judgment against Walter McGee by foreclosing on McGee's common stock in Biltmore Investments, Ltd. In July 2012, TD Bank obtained from a North Carolina state court a $2.5 million judgment against McGee, who owns all of Biltmore's common stock. After the confirmation of Biltmore's second amended plan of reorganization, TD Bank attempted to satisfy its judgment against McGee by executing on McGee's stock in Biltmore. TD Bank filed a motion in the bankruptcy court requesting a declaration that the automatic stay provided in 11 U.S.C. Section 362 did not bar TD Bank from executing on McGee's shares. The bankruptcy court granted TD Bank's motion, but was reversed by the district court which "stayed" TD Bank from "taking any action directed at Walter T. McGee, in state court or otherwise, to seize or sell his shares of stock in Biltmore." On appeal, the Fourth Circuit held that the confirmation of Biltmore's Plan terminated the automatic stay. Thus, the district court erred in extending it to McGee and in invoking the expired stay to enjoin TD Bank's efforts to collect on its judgment against McGee in state court. The case is BILTMORE INVESTMENTS, LTD., Debtor-Appellee, v. TD BANK, N.A., Creditor-Appellant, NO. 15-1076 (4th Cir.). A full-text copy of the 4th Circuit's October 1, 2015 opinion is available at http://is.gd/eRnXRSfrom Leagle.com. TD Bank, N.A. is represented by: Lance P. Martin, Esq. Norman J. Leonard II, Esq. WARD AND SMITH, P.A. 82 Patton Avenue Suite 300 Asheville, NC 28801 Tel: (828) 348-6070 Fax: (828) 348-6077 Email: lpm@wardandsmith.com njl@wardandsmith.com Biltmore Investments, Ltd. is represented by: Edward C. Hay, Jr., Esq. PITTS, HAY, HUGENSCHMIDT & DEVEREUX, P.A. 137 Biltmore Avenue Asheville, NC 28801 Tel: (828) 255-8085 Fax: (828) 251-2760 Email: ehay@phhlawfirm.com -- and -- T. Scott Tufts, Esq. TUFTS LAW FIRM, PLLC 111 S Maitland Ave, Ste 101 Maitland, FL 32751 Tel: (407) 647-8886 Fax: (407) 641-8082 About Biltmore Investments Biltmore Investments, LTD., based in Hendersonville, North Carolina, filed for Chapter 11 bankruptcy (Bankr. W.D.N.C. Case No. 11-10053) on Jan. 26, 2011. Judge George R. Hodges presides over the case. Edward C. Hay, Jr., Esq. -- ehay@phhlawfirm.com -- at Pitts, Hay & Hugenschmidt, P.A., serves as the Debtor's bankruptcy counsel. It scheduled assets of $2,091,502 and debts of $1,543,320. The petition was signed by Watter T. McGee, president. BLAND BUSINESS TRUST: Case Summary & 3 Top Unsecured Creditors -------------------------------------------------------------- Debtor: The Bland Business Trust PO Box 1525 Solomons, MD 20688 Case No.: 15-24674 Chapter 11 Petition Date: October 22, 2015 Court: United States Bankruptcy Court District of Maryland (Greenbelt) Judge: Hon. Thomas J. Catliota Debtor's Counsel: Tate Russack, Esq. RLC LAWYERS & CONSULTANTS 7999 N Federal Hwy, Ste 100 A Boca Raton, FL 33487 Tel: 561-571-9601 Fax: 800-883-5692 Email: tate@russack.net Estimated Assets: $1 million to $10 million Estimated Liabilities: $0 to $50,000 The petition was signed by James Bee Bland III, trustee. A list of the Debtor's three largest unsecured creditors is available for free at http://bankrupt.com/misc/mdb15-24674.pdf BNB PROPERTIES: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: BNB Properties Holdings, Inc. aka BNB Properties, LLC (PA) fka PennMont Benefits and Services, Inc. (FL) 15450 SW 143 Avenue, Suite 2 Miami, Fl 33177 Case No.: 15-28697 Chapter 11 Petition Date: October 22, 2015 Court: United States Bankruptcy Court Southern District of Florida (Miami) Judge: Hon. Robert A Mark Debtor's Counsel: Scott Alan Orth, Esq. LAW OFFICES OF SCOTT ALAN ORTH, P.A. 3860 Sheridan St., Suite A Hollywood, FL 33021 Tel: 305.757.3300 Fax: 305.757.0071 Email: scott@orthlawoffice.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $0 to $50,000 The petition was signed by John J. Koresko, Jr., director. A list of the Debtor's three largest unsecured creditors is available for free at http://bankrupt.com/misc/flsb15-28697.pdf CAESARS ENTERTAINMENT: Asks 7th Circ. to Save It from Litigation ---------------------------------------------------------------- Jessica Corso at Bankruptcy Law360 reported that Caesars Entertainment Operating Co. is asking the Seventh Circuit to hurry up and block billion-dollar litigation against its parent company in New York and Delaware, telling the appellate court on Oct. 18, 2015, that quick action is needed to stop junior creditors from getting their hands on money CEOC needs for a successful Chapter 11 reorganization. In two separate briefs filed with the Seventh Circuit, CEOC both appealed a recent district judge's decision refusing to stay the suits and asked that its appeal be heard soon as possible. 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 reason. CAESARS ENTERTAINMENT: Wilmington Trust Sues Over Notes Guarantee ----------------------------------------------------------------- Jonathan Randles at Bankruptcy Law360 reported that a trustee representing a prominent noteholder group of Caesars Entertainment's bankrupt operating unit filed a lawsuit on Oct. 19, in New York that accuses the casino operator of attempting to skirt a contractual guarantee to pay more than $51.4 million in interest arising from its subsidiaries' debt. The lawsuit was filed by the Wilmington Trust National Association, indenture trustee for holders of 10.75 notes issued by Caesars Entertainment Operating Company. The noteholder group represented in the complaint holds approximately $479 million in CEOC's outstanding debt obligations. In a separate report, Jessica Corso at Bankruptcy Law360 reported that casino operator has until March to lay out its Chapter 11 plan and until May to gather enough votes to make it a reality, winning an extension to its exclusive right to file a plan in Illinois bankruptcy court on Oct. 20. U.S. Bankruptcy Judge A. Benjamin Goldgar said it was in the estate's best interest that CEOC's Nov. 15 deadline to file a plan be pushed out, noting how complicated the case has gotten since the last time he granted an extension. 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 reason. CALMARE THERAPEUTICS: Shareholders Elect 7 Directors ---------------------------------------------------- At an annual meeting of shareholders of Calmare Therapeutics Incorporated held on Oct. 15, 2015, the shareholders: (a) elected Peter Brennan, VADM Robert T. Conway, Rustin R. Howard, Conrad Mir, Carl D. O'Connell, LCDR Steven Roehrich, and Stanley K. Yarbro, Ph. D. as directors to hold office until the next annual meeting of the Company's shareholders or until their successors have been elected and qualified; (b) ratified the selection of Mayer Hoffman McMann, CPAs as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2015; and (c) approved an amend the Certificate of Incorporation to increase the number of authorized shares of Common Stock from 40 million to 100 million. The Board of Directors of Calmare Therapeutics approved and adopted amendments to the by-laws of the Company, amending the number directors required to be on the Board to three or more, as fixed from time to time by resolution of the board of directors. Sept. 18, 2015, the Board fixed the number of directors to seven. A copy of a power point presentation used by the Company at the shareholder meeting held is available for free at: http://is.gd/ggIEDK About Calmare Therapeutics Calmare Therapeutics Incorporated, formerly known as Competitive Technologies, Inc., provides distribution, patent and technology transfer, sales and licensing services focused on the needs of its customers and matching those requirements with commercially viable product or technology solutions. Sales of the Company's Calmare(R) pain therapy medical device continue to be the major source of revenue for the Company. Calmare reported a net loss of $3.4 million on $1 million of product sales for the year ended Dec. 31, 2014, compared to a net loss of $2.6 million on $653,000 of product sales for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $4.34 million in total assets, $12.8 million in total liabilities, and a total shareholders' deficit of $8.40 million. Mayer Hoffman McCann CPAs, 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 operating losses since fiscal year 2006 and has a working capital and shareholders' deficiency at Dec. 31, 2014. These conditions raise substantial doubt about the Company's ability to continue as a going concern. CARDIAC SCIENCE: Appointment of Chapter 11 Trustee Sought --------------------------------------------------------- Former employees and current creditors Vinod Ramnani, Thomas Dietiker, Jayesh Patel, Arvind Manjegowda, Sridhar Thyagarajan, Nishita Patel, and Ashwin Khemani, who were terminated the day before the Petition Date, filed an opposition to all first day relief requested by Cardiac Science Corporation and seek an appointment of a "neutral" Chapter 11 trustee who will oversee the Debtor's Chapter 11 case. Contemporaneously with the bankruptcy petition, the Debtor filed a motion seeking authority to sell all of its assets through a supervised auction. The Debtor and CFS state they have already agreed with themselves to a credit bid and a debtor-in-possession financing facility with CFS pursuant to which CFS will act as a stalking horse purchaser of the Debtor's assets. The Debtor also wishes to enter into a loan agreement with CFS and give CFS a superpriority interest in all of its collateral and assets up to the amount of the loan, which will be a revolving loan facility in the total principal amount of $9,000,000 (of which $4,975,000 will be available during the Interim Period). Counsel to the Objectors, Stephen E. Kravit, Esq., at Kravit, Hovel & Krawczyk S.C., alleges that conflicts of interest is inherent in CSC 915 LLC/Aurora being the controller of the debtor-in-possession, DIP financier and stalking horse. Mr. Kravit also asks the Court to enter an order allowing expedited discovery to determine the truth and merits of Debtor's affidavit and filings in what he calls a "loan to own scheme." CFS purchased the largest secured debt (approximately $80 million) from Cardiac Science's lender, DBS Bank Ltd, Singapore, on Sept. 29, 2015. In late September, 2015, CFS 915 exercised its rights under the various Pre-Petition Loan Documents to remove the officers and directors of the Debtor. When the new officers and directors were appointed, the Debtor requested forbearance under the Pre-Petition Facility Agreement and the other Pre-Petition Loan Documents, which CFS granted and provided overadvance funding in the approximate amount of $3,750,000, according to documents filed with the Court. "As part of the CFS/Aurora plan to purchase Cardiac Science and its affiliate, Criticare Systems, Inc., without dealing with its owners, CFS/Aurora used the new board it placed in Cardiac Science to agree to make this bankruptcy Filing," Mr. Kravit alleges. He claims that there is no arm's length transaction between CFS and Cardiac Science's new board of directors and officers, who were hand selected by CFS and no good faith negotiations between CFS and Cardiac Science since December 2014. The Objectors assert that at a minimum, the Court should deny all motions on an expedited basis, allow as temporary a DIP financing as will last for a few weeks, and give the parties the right to conduct discovery. CFS is owned by a hedge/private investment fund known as Aurora Resurgence Management Partners LLC, which also may operate under other names such as "Aurora Holdings." Attorneys for Vinod Ramnani, Thomas Dietiker, Jayesh Patel, Arvind Manjegowda, Sridhar Thyagarjan, Nishita Patel, and Ashwin Khemani: Stephen E. Kravit, Esq. Benjamin R. Prinsen, Esq. KRAVIT, HOVEL & KRAWCZYK S.C. 825 North Jefferson - Fifth Floor Milwaukee, WI 53202 Tel: (414) 271-7100 Fax: (414) 271-8135 E-mail: kravit@kravitlaw.com brp@kravitlaw.com Co-Counsel: Paul G. Swanson, Esq. STEINHILBER, SWANSON, MARES, MARONE & MCDERMOTT 107 Church Avenue, P.O. Box 617 Oshkosh, WI 54903-0617 Tel: (920) 235-6690 Fax: (920) 426-5530 About Cardiac Science Headquartered in Waukesha, Wisconsin, Cardiac Science Corporation develops, manufactures and sells a variety of advanced diagnostic and therapeutic cardiology devices and systems, including automated external defibrillators, hospital defibrillators and related products and consumables. Cardiac Science filed Chapter 11 bankruptcy petition (Bankr. W.D. Wisc. Case No. 15-13766) on Oct. 20, 2015. The petition was signed by Michael Kang as chief restructuring officer. The Company currently employs approximately 200 people in two facilities located in Wisconsin, and another 93 part time "educators" around the country who educate the Debtor's customers on how to use its products. The Debtor has customers in more than 100 countries. The Company estimated assets in the range of $10 million to $50 million and liabilities of at least $100 million. Celestica Electronics (M) SDN BHD is the Debtor's largest unsecured creditor holding a claim of $2.5 million. The Debtor has engaged Whyte Hirschboeck Dudek S.C. as bankruptcy counsel, Livingstone Partners LLC as investment banker and Garden City Group, LLC as notice and claims agent. Judge Robert D. Martin presides over the case. CARDIAC SCIENCE: Hires Garden City Group as Notice & Claims Agent ----------------------------------------------------------------- Cardiac Science Corporation seeks authority from the Bankruptcy Court to employ Garden City Group, LLC as its notice, claims and balloting agent. The Debtor says that the sheer magnitude of its creditor body -- estimated at 1,700 potential creditors -- makes it impractical for the Clerk's Office to undertake these tasks. Thus, the Debtor asserts the most effective and efficient way to notice these creditors and interested parties and to transmit, receive, docket, maintain, photocopy and scan claims, is for it to engage an independent third party to act as notice and claims agent. The Company agrees to pay GCG its customary fees and reimburse GCC for all out-of-pocket expenses reasonably incurred by it in connection with the performance of the services. The parties have agreed that GCG's fees will be capped at $350,000, excluding out of pocket expenses. Under the Retention Agreement, the Debtor agreed to indemnify, defend, and hold harmless GCG and its directors, officers, employees, affiliates, and agents, except in circumstances resulting solely from GCG's gross negligence or willful misconduct. GCG represents that it is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code with respect to the matters upon which it is engaged. Prior to the Petition Date, the Debtor provided GCG with a retainer in the amount of $25,000 under the terms of the Retention Agreement. GCG will apply the retainer to all prepetition invoices, and thereafter, seeks to have the retainer replenished to the original retainer amount, and to hold the retainer under the Retention Agreement during the Chapter 11 case as security for the payment of fees and expenses incurred under the Retention Agreement. About Cardiac Science Headquartered in Waukesha, Wisconsin, Cardiac Science Corporation develops, manufactures and sells a variety of advanced diagnostic and therapeutic cardiology devices and systems, including automated external defibrillators, hospital defibrillators and related products and consumables. Cardiac Science filed Chapter 11 bankruptcy petition (Bankr. W.D. Wisc. Case No. 15-13766) on Oct. 20, 2015. The petition was signed by Michael Kang as chief restructuring officer. The Company currently employs approximately 200 people in two facilities located in Wisconsin, and another 93 part time "educators" around the country who educate the Debtor's customers on how to use its products. The Debtor has customers in more than 100 countries. The Company estimated assets in the range of $10 million to $50 million and liabilities of at least $100 million. Celestica Electronics (M) SDN BHD is the Debtor's largest unsecured creditor holding a claim of $2.5 million. The Debtor has engaged Whyte Hirschboeck Dudek S.C. as bankruptcy counsel, Livingstone Partners LLC as investment banker and Garden City Group, LLC as notice and claims agent. Judge Robert D. Martin presides over the case. CARDIAC SCIENCE: Parent, Former Directors Oppose Financing Motion ----------------------------------------------------------------- Opto Cardiac Care Limited, Cardiac Science Corporation's corporate parent, Opto Circuits (India) Limited, the Debtor's ultimate parent, and certain former officers and directors of the Debtor jointly object to the Debtor's motion for authority to obtain secured post-petition financing and use cash collateral. OCC is the holder of 100% of the common stock of Cardiac Science Corporation. OCI, an Indian publicly-traded company, is the parent of OCC and, therefore, the ultimate parent of the Debtor. Vinod Ramnani, Thomas Dietiker, Jayesh Patel, Arvind Manjegowda, Sridhar Thyagarjan, Nishita Patel, and Ashwin Khemani are former officers and directors, and current creditors of the Debtor. Cardiac Science previously filed a motion with the Bankruptcy Court seeking permission to enter into a debtor-in-possession loan agreement with CFS 915 LLC providing for post-petition funds in the form of revolving loans amounting to $9,000,000, of which $4,975,000 will be available during the interim period. Opto and the Officer/Director Creditors object to Finance Motion on the following grounds: (a) The Proposed Interim Order contains certain proposed Findings and Conclusions that are not adequately supported in the record. Chief among these is Finding and Conclusion P on page 10 (that the Lender has acted in good faith; that the financing arrangements described in the Finance Motion were negotiated at arm's length and in good faith; and that the financing provided pursuant to the terms of the Finance Motion will be provided in good faith). (b) Order paragraphs 8(a) and 8(b) on pages 17-19 of the Proposed Interim Order grant the Lender a lien (subject to entry of the final finance order) on proceeds of any avoidance actions belonging to the Debtor's estate and an allowed super-priority administrative expense claim, thus virtually ensuring that no funds will ever be available for distribution to general unsecured creditors or for a creditors committee to perform its functions, except as permitted by narrow "carve-out" and "use-of-funds" provisions. (c) Order paragraphs 20(a) and 20(b) on pages 31 and 32 of the Proposed Interim Order would appear to release the Lender from any claims of the Debtor, including claims that may be derivative of Opto's interest in the Debtor. The Objectors contend that those claims exist and are meritorious. (d) The short Maturity Date proposed for the loans the Lender is to provide (not later than Jan. 4, 2016) evidence the Lender's "loan to own" purpose and will preclude adequate marketing of the Debtor's assets. The Objectors contend that the Lender has instigated this Chapter 11 case and crafted the Financing Motion to facilitate its hostile takeover of the Debtor. The Objectors said they will produce evidence to support this contention at the hearing on the Debtors Sale Motion. "In the interim, the Court should not permit the Lender to insulate itself from liability, deprive a Creditors' Committee of unencumbered cash that may be needed to investigate the Lender, and establish by means of the Financing Motion a de facto timetable for a sale process designed to produce the Lender's desired result," the Objectors assert. Attorneys for Opto Circuits (India) Ltd. and Opto Cardiac Care Limited: Paul. A. Lucey, Esq. LEVERSON LUCEY & METZ S.C. 3030 W. Highland Blvd Milwaukee, WI 53208 Tel: (414) 539-4266 Fax: (414) 271-8504 E-mail: pal@levmetz.com Attorneys by special appearance for Vinod Ramnani, Thomas Dietiker, Jayesh Patel, Arvind Manjegowda, Sridhar Thyagarjan, Nishita Patel, and Ashwin Khemani: Stephen E. Kravit, Esq. Benjamin R. Prinsen, Esq. KRAVIT, HOVEL & KRAWCZYK S.C. 825 North Jefferson - Fifth Floor Milwaukee, WI 53202 Tel: (414) 271-7100 Fax: (414) 271-8135 E-mail: kravit@kravitlaw.com brp@kravitlaw.com About Cardiac Science Headquartered in Waukesha, Wisconsin, Cardiac Science Corporation develops, manufactures and sells a variety of advanced diagnostic and therapeutic cardiology devices and systems, including automated external defibrillators, hospital defibrillators and related products and consumables. Cardiac Science filed Chapter 11 bankruptcy petition (Bankr. W.D. Wisc. Case No. 15-13766) on Oct. 20, 2015. The petition was signed by Michael Kang as chief restructuring officer. The Company currently employs approximately 200 people in two facilities located in Wisconsin, and another 93 part time "educators" around the country who educate the Debtor's customers on how to use its products. The Debtor has customers in more than 100 countries. The Company estimated assets in the range of $10 million to $50 million and liabilities of at least $100 million. Celestica Electronics (M) SDN BHD is the Debtor's largest unsecured creditor holding a claim of $2.5 million. The Debtor has engaged Whyte Hirschboeck Dudek S.C. as bankruptcy counsel, Livingstone Partners LLC as investment banker and Garden City Group, LLC as notice and claims agent. Judge Robert D. Martin presides over the case. CIT GROUP: Fitch Retains 'BB+' LT IDR Over CEO Retirement --------------------------------------------------------- The announcement by CIT Group Inc. (CIT, long-term Issuer Default Rating [IDR] 'BB+'; Outlook Stable) that John A. Thain will retire as Chief Executive Officer (CEO) at the end of first-quarter 2016, following the announcement earlier that CIT's Chief Financial Officer (CFO) Scott T. Parker will depart the company in Nov. 2015, brings the strategic and financial policies of their successors to the forefront according to Fitch Ratings. CIT's ratings are unaffected at this time, but Fitch notes that execution risk is likely to be elevated for some time while CIT seeks to manage the transition of two of its senior most leaders, the continued integration of OneWest Bank N.A. and the potential sale of a meaningful portion of the existing business. Management Turnover in Evolving Business It is highly unusual for CEO and CFO changes to be announced the same week, particularly during a period when the company and the capital markets are not under material duress. In CIT's case, the timing is not ideal as the integration of OneWest remains on-going, but directionally, it follows Thain's execution of the post-bankruptcy restructuring and growth of CIT over the past five years. Fitch has viewed Thain as presenting CIT with incrementally higher key man risk relative to peers, given his significant influence on the firm's strategic direction and his strong reputation with market participants. That said, Fitch does not view his announced departure as posing imminent credit risk to the institution, largely because of the efforts he has already led to restructure and stabilize the company. Split of Chairman and CEO Roles Positive Thain will remain Chairman of the Board after his retirement as CEO, which is a positive from a corporate governance perspective as split Chairman and CEO roles provides a clearer delineation between board oversight and executive management roles. The fact that Thain will remain involved in a board capacity may also help to ensure a smoother management transition while preserving existing strategic goals and firm culture. Credible Succession In Fitch's opinion, CIT is enacting a credible senior management transition. Thain's successor (effective March 31, 2016), Ellen R. Alemany, and Parker's successor (effective Nov. 1, 2015), Carol Hayles, bring a combination of external perspectives and internal familiarity with CIT at the Board and management levels, respectively, to their new roles. Alemany has served on CIT's board since January 2014, and has considerable previous industry experience within RBS Citizens Financial Group, Inc. and Citigroup Inc. Hayles also has a long track record as Corporate Controller at CIT and in leadership roles at Citigroup Inc. Ensuring a smooth management change is particularly important in CIT's case given the on-going OneWest integration and the company's announced plan to explore strategic alternatives for its $10 billion Commercial Air business and certain CIT Canada and CIT China businesses. Successful execution on these initiatives would allow CIT to refine its position as commercial bank tailored primarily to U.S. small business and middle market customers. Financial Policies in Focus With CIT surveying strategic alternatives for the Commercial Air business and certain CIT Canada and CIT China businesses, portfolio refinement as opposed to expansion seems the more likely route near term, and Fitch will monitor whether there will be any changes in financial policy under the leadership of Alemany and Hayles and as the business repositioning is effectuated. Quick Take on Strategic Alternatives The potential divesture of the Commercial Air business coincides with a supportive market for aircraft lessors, as evidenced by Avolon Holdings Ltd.'s recently announced sale to Bohai Leasing Co. Ltd. for a 31% premium to its pre-announcement share price. It also follows acknowledgement by CIT earlier this year that it has previously had dialogue with certain activist investors. As CIT's bank has grown in size, synergies from the aircraft leasing business have become less meaningful for the overall business given limitations on how much of the aircraft leasing business can be funded with bank deposits and how much of CIT's net operating loss carryforward can be captured with gains in the aircraft leasing business. Nevertheless, an aircraft leasing divestiture would reduce overall earnings diversity by business line and geography and the questions related to use of proceeds remains unanswered. At June 30, 2015, pro forma for the OneWest transaction, financing and leasing assets from commercial airlines (including the commercial aerospace portfolio and additional financing and leasing assets) represented 14.8% of total assets. The potential sales of certain CIT Canada and CIT China businesses are viewed as less impactful, given their smaller size. At June 30, 2015, pro forma for the OneWest transaction, non-transportation-related businesses in Canada and China each represented approximately 1% of total assets. Fitch currently rates CIT Group Inc. as: -- Long-term IDR 'BB+'; -- Short-term IDR 'B'; -- Viability Rating 'bb+'; -- Revolving Credit Facility 'BB+'; -- Senior Unsecured Debt Rating 'BB+'; -- Support Rating '5'; -- Support Rating Floor 'NF'. The Rating Outlook is Stable. CIT GROUP: Moody's Affirms 'B1' Senior Unsecured Rating ------------------------------------------------------- Moody's Investors Service affirmed the B1 senior unsecured rating of CIT Group Inc. and changed the company's rating outlook to positive from stable. This follows CIT's announcement that it will exit certain non-bank businesses to further its transition to a US commercial bank. RATING RATIONALE Moody's revised CIT's rating outlook to positive to reflect the expected favorable effects on the company's funding profile and profitability resulting from its acquisition of OneWest Bank, planned sale of operations in Canada and China, and its possible exit from aircraft finance after concluding an internal review. The transactions advance CIT's transformation into a US commercial bank, increasing its deposit funding, reducing its investment in market-funded businesses, and lowering its funding costs. Integration and execution represent risks to CIT's performance, but the company's liquidity and capital positions provide reasonable cushion for unanticipated expenses. CIT's acquisition of OneWest accelerated what has been a gradual transition of CIT's operations to a bank-like operating and funding model, which is positive for its credit profile. The transaction nearly doubled the company's deposits to over $30 billion. On a pro forma basis, deposits have grown to represent over 60% of the CIT's funding, up from 51% at the end of June, further diversifying the company's funding sources and reducing its reliance on market funds. Because OneWest's deposits are lower cost than CIT's, the combined entity's cost of funds is expected to decline by over 60 basis points from CIT's quarter end ratio of 3.04%, which helps offset competitive pressure on asset yields. Should CIT exit its aircraft finance business, the company will significantly reduce asset impairment risk, airline industry concentration, and the liquidity risk associated with its nearly $11 billion aircraft purchase commitments. The sale could also reduce CIT's reliance on market funding if CIT uses some portion of the proceeds to reduce senior debt. However, the sale would reduce CIT's hallmark revenue diversification. Key aspects of CIT's strategy remain unclear, including growth plans, asset composition and risk appetite, further development of the company's bank deposit and origination platforms, as well as its funding strategy. As a condition of its approval of the OneWest acquisition, the Office of the Comptroller of the Currency requires that CIT submit a three-year strategic plan by December 2015. Moody's will assess the plan for its effects on CIT's credit profile, and this could lead to positive rating pressure. Legacy OneWest related credit concerns include uncertainty regarding the performance of the bank's residential real estate and commercial loan portfolios and the untested resilience of its deposit franchise, including to a change in interest rates or due to competitive pressures. Other CIT concerns include the high proportion of rate-sensitive online and brokered CDs in the company's deposit base and the risk profile of its earning assets, given its finance company heritage. CIT's ratings could be upgraded if: (1) the company makes strides toward successfully integrating OneWest Bank, leading to stronger prospects for net finance margin and profitability; and (2) the company's strategy becomes more transparent and reveals objectives that are consistent with lower liquidity and asset quality risks, as well as solid profitability and capital positions. CIT's ratings could be downgraded if: (1) the company's asset quality, business volumes or operating results weaken, undermining long-term competitiveness and credit strength; or (2) if the OneWest transaction increases CIT's operating and financial risks, including through exposure to high growth, asset concentrations, or deposit instability, in contrast to anticipated transaction benefits. CLOUD PEAK: Moody's Cuts Probability of Default Rating to B1 ------------------------------------------------------------ Moody's Investors Service downgraded the corporate family rating (CFR) and probability of default rating (PDR) of Cloud Peak Energy Resources LLC to B1 and B1-PD from Ba3 and Ba3-PD, respectively. The senior unsecured rating was also downgraded to B3 from B2. The speculative grade liquidity rating of SGL-2 was affirmed. The outlook is negative. This concludes the review for downgrade initiated on September 10, 2015. RATINGS RATIONALE The rating action reflects continuing deterioration of the coal industry, with long-term demand for Powder River Basin coal challenged by low natural gas prices and regulatory pressures, such as implementation of the Clean Power Plan. While we acknowledge the company's strong contracted position over the next eighteen months, the ratings incorporate the uncertainty over contracted volumes and prices beyond that time. The company has 51 million tons contracted for 2016 delivery at an average of $13.16 per ton. In 2015, we expect average realizations of roughly $12.80 and an average cash margin of over $2 per ton. Powder River Basin spot prices have persisted at around $11 per ton, due to competition from low-priced natural gas. If the current commodity price environment persists, the company will experience declining average realizations, and/or will have to curtail production to maintain them. Based on our expectation of limited commodity price recovery over the next 18 months, we expect the company's metrics to come under pressure, with Debt/EBITDA, as adjusted by Moody's, increasing above 5x. Absent price recovery, we expect the company to have roughly neutral cash flows in 2016. The B3 rating on senior unsecured debt reflects their effective subordination to the secured revolver with respect to claim on collateral. Cloud Peak's B1 CFR continues to be supported by its significant production platform in the PRB, efficient surface mining operations, solid customer base, good contracted position and low employee healthcare liabilities. However, the rating is constrained by the concentration of Cloud Peak's assets in one coal basin and the resultant exposure to price, transportation, production disruptions, and regulatory risks. The ratings are supported by the company's conservative balance sheet, ample cash and liquidity position, no near-term maturities and ability to scale operations and capital requirements to maintain positive free cash flows over the next eighteen months. The negative outlook reflects our expectation that credit metrics will continue to deteriorate as long as current pricing conditions persist. A rating upgrade is unlikely at this time, but the outlook could be stabilized if we see a sustainable price recovery in the Powder River Basin. The ratings could be downgraded if free cash flows are expected to be persistently negative and/or if debt-to-EBITDA stays persistently above 5x. A downgrade would also be considered if PRB spot prices persist at $11 or below for over six months and/or in the event of a significant increase in average cost of production. Cloud Peak, based in Gillette, Wyoming is the only pure play rated PRB coal producer. The company controls an estimated 1.2 billion tons of reserves and generated $1.2 billion in revenues over the twelve months ended June 30, 2015. COMMUNITY HOME: Pennymac Seeks Automatic Stay Relief ---------------------------------------------------- Pennymac Loan Trust asks the U.S. Bankruptcy Court for the Southern District of Mississippi, Jackson Division, for relief from the automatic stay in the Chapter 11 case of Community Home Financial Services, Inc. Pennymac is the holder of a Note in the amount of $89,100, which is signed by James L. Smith, and secured by a deed of trust, signed by James L. Smith and Stephany Smith. Debtor Community Home holds a junior deed of trust on the property affected by Pennymac's deed of trust. Micheal Jedynak, Esq., at Morris and Associates, in Monroe, Louisiana, tells the Court that as of Sept. 3, 2015, James L. Smith and Stephany Smith have defaulted on the repayment terms of their Deed of Trust, and Pennymac desires to proceed with its state law remedies including, but not limited to, foreclosure. Mr. Jedynak further tells the Court that James L. Smith and Stephany Smith currently owe Pennymac $17,270, which consists of overdue monthly payments, attorney fees and costs. Pennymac Loan Trust is represented by: Micheal Jedynak, Esq. MORRIS AND ASSOCIATES 2309 Oliver Road Monroe, Louisiana 71201 Telephone: (318)330-9020 E-mail: mjedynak@ms.creditorlawyers.com About Community Home Financial Community Home Financial Services, Inc., filed a Chapter 11 petition (Bankr. S.D. Miss. Case No. 12-01703) on May 23, 2012. The petition was signed by William D. Dickson, president. Community Home Financial is a specialty finance company located in Jackson, Mississippi, providing contractors with financing for their customers. CHFS operates from one central location providing financing through its dealer network throughout 25 states, Alabama, Delaware, and Tennessee. The Debtor scheduled $44.9 million in total assets and $30.3 million in total liabilities. Judge Edward Ellington presides over the case. The Debtor was first represented by Roy H. Liddell, Esq., and Jonathan Bissette, Esq., at Wells, Marble, & Hurst, PPLC as Chapter 11 counsel. Wells Marble was terminated Nov. 13, 2013. The Debtor is now being represented by Derek A. Henderson, Esq., in Jackson, Miss. In 2013, the Debtor sought to employ David Mullin, Esq., at Mullin Hoard & Brown LLP, as special counsel. On Jan. 9, 2014, Kristina M. Johnson was appointed as Chapter 11 Trustee for the Debtor. Jones Walker LLP serves as counsel to the Chapter 11 trustee, while Stephen Smith, C.P.A., acts as accountant. COMSTOCK MINING: Incurs $7.95 Million Net Loss in Third Quarter --------------------------------------------------------------- Comstock Mining Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss available to common shareholders of $7.95 million on $4.34 million of total revenues for the three months ended Sept. 30, 2015, compared to a net loss available to common shareholders of $1.98 million on $6.78 million of total revenues for the same period in 2014. For the nine months ended Sept. 30, 2015, the Company reported a net loss available to common shareholders of $9.98 million on $15.87 million of total revenues compared to a net loss available to common shareholders of $11.06 million on $18.76 million of total revenues for the same period last year. As of Sept. 30, 2015, the Company had $45.07 million in total assets, $26.30 million in total liabilities and $18.76 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/mo4alR About Comstock Mining Virginia City, Nev.-based Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the historic Comstock district. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a substantial portion of the Comstock district, secured permits, built an infrastructure and brought the exploration project into test mining production. The Company continues acquiring additional properties in the Comstock district, expanding its footprint and creating opportunities for exploration and mining. The goal of the Company's strategic plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces by 2013, and commencing commercial mining and processing operations by 2011, with annual production rates of 20,000 gold equivalent ounces. Comstock Mining reported a net loss available to common shareholders of $13.3 million in 2014, a net loss available to common shareholders of $25.4 million in 2013 and a net loss available to common shareholders of $35.1 million in 2011. COMSTOCK MINING: Reports Third Quarter 2015 Results --------------------------------------------------- Comstock Mining Inc. announced selected unaudited financial results for the fiscal quarter ended Sept. 30, 2015. Strategic Highlights * Restructured and simplified the overall capital structure, eliminating all preferred stock, special rights and PIK dividends and permanently reducing land obligations and royalties. * Permitted, commenced and advanced the Lucerne underground "Harris" portal and drilling. * Encountered significant high-grade gold and silver intercepts in the Dayton Drill Program. * Received the "Nevada Excellence in Mine Reclamation" for Keystone mine restoration. * Recognized, along with the Comstock Foundation for History & Culture for "Outstanding Rehabilitation of the Historic Upper Yellow Jacket Hoist Works." * Achieved year-over-year cost savings of $6.7 million for the nine months ended Sept. 30, 2015, and, coupled with the recently completed restructuring activities, remain on track to save $10 million for the full year 2015, as compared to full year 2014. * Partnered with American Mine and Tunneling LLC and American Drilling Corp, LLC to commence key underground development and drilling access to the PQ and Woodville structures. * Strengthened the balance sheet, raising $6 million for the drilling and development of the Lucerne underground program, and prerequisite planning for the next phase of Dayton drilling. Selected Financial Highlights - Nine-months Ended Sept. 30, 2015 * Mining revenue was $15.7 million for the nine months ended Septe. 30, 2015, as compared to $18.1 million for the same period in 2014, a decrease of 13%, resulting from lower average price per ounce of gold realized and lower production. * Costs applicable to mining revenue were $10.4 million for the nine months ended Sept. 30, 2015, as compared to $14.6 million, net of silver credits, for the same period in 2014, a decrease of 29%, primarily due to mining cost reductions, resulting in a gross margin of 34%. * General and administrative expenses were $5.1 million for the nine months ended Sept. 30, 2015, as compared to $5.2 million for the same period in 2014, a decrease of 2%. * Net loss was $4.5 million, for the nine months ended Sept. 30, 2015, as compared to a net loss of $8.3 million, for the same period in 2014. The $3.7 million improvement resulted primarily from $4.0 million in lower mining and operating costs offset by higher exploration and development for Lucerne and Dayton, SR-342 realignment, severance and lower revenues. * Net cash generated by operating activities was $0.4 million for the nine months ended September 30, 2015, as compared to a net cash use of $2.6 million in 2014, a 117% improvement. * Excluding the road realignment cost of $1.7 million, net cash generated by operating activities was $2.1 million for the nine months ended Sept. 30, 2015. * Net cash used for investing was $4.8 million for the nine months ended Sept. 30, 2015, including $2.8 million for land and $1.9 million for property, primarily for leach pad expansions. * Debt and capital lease obligations totaled $15.8 million at Sept. 30, 2015, including $2.8 million outstanding on the revolving credit facility. * Cash and cash equivalents at Sept. 30, 2015 were $2.5 million. Selected Financial Highlights - Three-months Ended Sept. 30, 2015 * Mining revenue was $4.3 million in Q3 2015 as compared to $6.5 million in Q3 2014. The decrease resulted from lower average price per ounce of gold realized and lower production. * Costs applicable to mining revenue were $3.5 million in Q3 2015, as compared to $4.4 million, net of silver credits, in Q3 2014, a 21% decrease primarily due to mining cost reductions. * Mine claims and costs decreased by $0.4 million in Q3 2015, as compared to Q3 2014. * Exploration and mine development costs increased by approximately $0.7 million in Q3 2015, as compared to Q3 2014. The increase is for the underground drift-mining and drilling for the first geological target in Lucerne and for the recent Dayton drilling program. * Net loss was $4.3 million, for Q3 2015, as compared to a net loss of $1.0 million, for Q3 2014. The $3.3 million increase resulted from a $2.4 million decrease in revenue and a $0.7 million decrease in net other income, offset by a net increase in all other costs, including the SR-342 road realignment and Lucerne and Dayton exploration and development costs. * Net cash generated by operating activities was $0.1 million for Q3 2015. * Excluding the road realignment cost of $0.8 million, net operating cash generated for Q3 2015, was $0.9 million. Corrado De Gasperis, president & CEO, commented, "The achievements this year have been foundational, expanding our lands and all major permits, achieving low cost production by improving every major variable from grade to yields to strip ratios to fundamental cost and project management. We are well into the transition with the underground drift now reaching 500 feet and the fourth drill station under development and we are looking forward to testing some high-grade material on the leach pad as early as this (fourth) quarter." A full-text copy of the press release is available for free at: http://is.gd/jy9Km3 About Comstock Mining Virginia City, Nev.-based Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the historic Comstock district. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a substantial portion of the Comstock district, secured permits, built an infrastructure and brought the exploration project into test mining production. The Company continues acquiring additional properties in the Comstock district, expanding its footprint and creating opportunities for exploration and mining. The goal of the Company's strategic plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces by 2013, and commencing commercial mining and processing operations by 2011, with annual production rates of 20,000 gold equivalent ounces. Comstock Mining reported a net loss available to common shareholders of $13.3 million in 2014, a net loss available to common shareholders of $25.4 million in 2013 and a net loss available to common shareholders of $35.1 million in 2011. As of June 30, 2015, the Company had $48.8 million in total assets, $26.8 million in total liabilities and $22 million in total stockholders' equity. CTI BIOPHARMA: John Bauer Resigns as Director --------------------------------------------- John H. Bauer notified the Board of Directors of CTI BioPharma Corp. of his decision to resign from the Board, with that resignation to be effective Oct. 20, 2015. The decision of Mr. Bauer to resign was not the result of any disagreement with the Company on any matter relating to the Company's operations, policies or practices, according to a regulatory filing with the Securities and Exchange Commission. About CTI BioPharma CTI BioPharma Corp. (NASDAQ and MTA: CTIC) -- http://www.ctibiopharma.com/-- formerly known as Cell Therapeutics, Inc., is a biopharmaceutical company focused on the acquisition, development and commercialization of novel targeted therapies covering a spectrum of blood-related cancers that offer a unique benefit to patients and healthcare providers. The Company has a commercial presence in Europe and a late-stage development pipeline, including pacritinib, CTI's lead product candidate that is currently being studied in a Phase 3 program for the treatment of patients with myelofibrosis. CTI BioPharma is headquartered in Seattle, Washington, with offices in London and Milan under the name CTI Life Sciences Limited. CTI Biopharma reported a net loss attributable to common shareholders of $96 million in 2014, compared with a net loss attributable to common shareholders of $49.6 million in 2013. As of March 31, 2015, the Company had $63.1 million in total assets, $48.7 million in total liabilities, $240,000 in common stock purchase warrants, $14.1 million in total shareholders' equity. CTP TRANSPORTATION: S&P Lowers CCR to 'B', Outlook Stable --------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered its corporate credit rating on CTP Transportation Products Holdings LLC to 'B' from 'B+' and removed S&P's ratings on the company from CreditWatch, where it had placed them with negative implications on Aug. 7, 2015. The outlook is stable. At the same time, S&P lowered its issue-level rating on CTP subsidiaries Carlstar Group LLC and Carlstar Finance Inc.'s $250 million senior secured credit notes to 'B' from 'B+'. The '4' recovery rating on the debt is unchanged, indicating S&P's expectation for average (30%-50%; upper half of the range) recovery in a default scenario. "The downgrade reflects our expectation that the company's debt-to-EBITDA metric will surpass 6x in 2015 before gradually declining to less than 6x over the next 12-18 months," said Standard & Poor's credit analyst Jaissy Lorenzo. CTP's power transmission belts business contributed about 18% of its revenues and one-third of its EBITDA before the divestiture. These lost earnings coupled with the weakness in the company's key end markets, such as agriculture and outdoor power equipment, are the principal drivers behind S&P's expectation that its leverage will increase. While the company used a portion of the proceeds from the divestiture to repay the outstanding balance on its asset-based revolving credit facility, S&P do not expect that CTP will use the remaining proceeds to reduce its debt. As a result, S&P has revised its assessment of CTP's financial risk profile to "highly leveraged" from "aggressive". S&P has also revised its assessment of the company's financial policy to "FS-6" from "FS-5" given the company's aggressive financial policies stemming from its private-equity ownership and our expectation that its credit measures will deteriorate. The stable outlook reflects S&P's expectation that CTP's leverage levels will gradually decline below 6x in 2016 as its end markets stabilize. The stable outlook on CTP reflects S&P's expectation that the weakness in the company's agricultural, outdoor power equipment, and other key end markets, coupled with the recent sale of its power transmission belts business, will increase the company's debt-to-EBITDA metric to 6.0x-6.5x in 2015. S&P expects that the company's leverage will gradually decline to the 5x-6x range over the next 12-18 months as its end markets and profitability stabilize. S&P could lower its ratings on CTP if a softer operating performance causes the company's leverage to increase above 6.5x for an extended period. S&P could also lower the rating if the company's liquidity becomes constrained. Although unlikely in the next 12 to 18 months, S&P could raise its rating on CTP if the company improves its credit measures such that its leverage decreases to the 4x-5x range and S&P expects that it will remain at that level. For an upgrade to occur, S&P would also need to believe that CTP and its equity sponsor would adhere to a financial policy that will allow the company to maintain its improved credit metrics. CW MINING: Hiawatha Coal Proceeds Not Property of Estate -------------------------------------------------------- Judge Tena Campbell of the United States District Court for the District of Utah, Central Division, affirmed the bankruptcy court's decision holding that the "Hiawatha Coal Proceeds" are not part of the bankruptcy estate of C.W. Mining Company. In June 2008, C.W. Mining sold its assets in the Bear Canyon coal mine to Hiawatha Coal Company. In late 2008, Chapter 11 Trustee Gary E. Jubber and creditor Aquila, Inc., filed an adversary proceeding under Section 549 of the Bankruptcy Code asking the bankruptcy court to avoid CWM's postpetition transfer of the mine to Hiawatha. The bankruptcy court granted the request and set aside the transfer. The Trustee elected to take back the mine and, in a separate adversary proceeding, sought to recover the Hiawatha Coal proceeds from the coal purchasers and other parties related to CWM. The bankruptcy court found that the Trustee was not entitled to the Hiawatha Coal proceeds. Judge Campbell held that the bankruptcy court correctly determined, in light of the circumstances raised by the Trustee, that the estate's contingent interest to the severed coal did not mature into the property right the Trustee claims. Judge Campbell also agreed with the bankruptcy court's conclusion that the Trustee is barred by Section 550 from recovering the severed coal proceeds, holding that even if the Trustee's incorporeal hereditament somehow translated into a right to the severed coal, the Trustee elected his remedies under Section 550 and so is foreclosed from recovering the severed coal or the coal proceeds at this point. The district court case is GARY E. JUBBER, Chapter 11 Trustee, and AQUILA, INC., Appellants, v. DEFENDANTS RE: HIAWATHA COAL PROCEEDS, Appellees, CASE NO. 2:14-CV-500-TC, (D. Utah). The bankruptcy case is In re C.W. MINING COMPANY, Debtor, BANKRUPTCY CASE NO. 08-20105 (Bankr. D. Utah). A full-text copy of Judge Campbell's October 1, 2015 memorandum decision and order is available at http://is.gd/La3AXvfrom Leagle.com. Gary E. Jubber and Aquila are represented by: Brent D. Wride, Esq. RAY QUINNEY & NEBEKER 36 South State Street Suite 1400 Salt Lake City, UT 84111 Tel: (801) 532-1500 Fax: (801) 532-7543 Email: bwride@rqn.com -- and -- Peter W. Billings, Esq. FABIAN VAN COTT 215 South State Street, Suite 1200 Salt Lake City, UT 84111-2323 Tel: (801) 531-8900 Fax: (801) 596 2814 Email: pbillings@fabianvancott.com ABM, Standard Industries, Fidelity Funding, Security Funding Inc, World Enterprises, and COP Coal Development are represented by: P. Matthew Cox, Esq. David L. Pinkston, Esq. SNOW CHRISTENSEN & MARTINEAU 10 Exchange Place, 11th Floor Salt Lake City, UT 84111 Tel: (801) 521-9000 Fax: (801) 363-0400 Email: pmc@scmlaw.com dlp@scmlaw.com World Enterprises Utah, World Enterprises Nevada, and Mountain Coin Machine Distributors are represented by: P. Matthew Cox, Esq. SNOW CHRISTENSEN & MARTINEAU 10 Exchange Place, 11th Floor Salt Lake City, UT 84111 Tel: (801) 521-9000 Fax: (801) 363-0400 Email: pmc@scmlaw.com Hiawatha Coal Company is represented by: Peter W. Guyon, Esq. 614 Newhouse Building Salt Lake City, UT 84111 ANR, A-Fab Engineering, NWR Limited Partnership, NUR, National Business Management, and Ruth Brown are represented by: David E. Kingston, Esq. 3212 S State St. Salt Lake City, UT 84115 Tel: (801) 484-9081 Paul Kingston, Joseph O. Kingston, Railco, Latter Day Church of Christ, Attco Trucking, Ninth Street Development, Ninth Street Inc, Rachel Young, James Young, Jessica Young, Carl E. Kingston, Coalt, Four Corners Precision Manufacturing, DU Company, L.A. Miller, and CTC Trucking are represented by: Carl E. Kingston, Esq. 3212 South State St. Salt Lake City, UT 84115 Charles Reynolds, and Mark Reynolds are represented by: Russell S. Walker, Esq. WOODBURY & KESLER PC 525 E 100 S Suite 300 Salt Lake City, UT 84102 Tel: (801) 364-1100 Fax: (801) 359-2320 Email: rwalker@wklawpc.com Intermountain Power Agency is represented by: Mark W. Dykes, Esq. PARSONS BEHLE & LATIMER 201 South Main Street, Suite 1800 Salt Lake City, UT 84111 Tel: (801) 532-1234 Email: mdykes@parsonsbehle.com Commonwealth Coal Services is represented by: Robert H. Scott, Esq. AKERMAN SENTERFITT LLP 170 South Main Street Suite 950 Salt Lake City, UT 84101 Email: robert.scott@akerman.com Tennessee Valley Authority is represented by: Edward C. Meade, Esq. TENNESSEE VALLEY AUTHORITY 400 West Summit Hill Drive Knoxville, TN 37902 Tel: (865) 632-2101 -- and -- Robert H. Scott, Esq. AKERMAN SENTERFITT LLP 170 South Main Street Suite 950 Salt Lake City, UT 84101 Email: robert.scott@akerman.com Golden West Industries is represented by: Steven C. Strong, Esq. COHNE KINGHORN PC 111 E. Broadway Eleventh Floor Salt Lake City, UT 84111 Tel: (801) 363-4300 Fax: (801) 363-4378 Email: sstrong@cohnekinghorn.com SMC Electrical Products and Becker Mining America are represented by: Jeffrey L. Shields, Esq. CALLISTER NEBEKER & MCCULLOUGH Zions Bank Building 10 East South Temple, Suite 900 Salt Lake City, UT 84133 Tel: (801) 530-7300 Fax: (801) 364-9127 Email: jlshields@cnmlaw.com Graymount Western US is represented by: Danny C. Kelly, Esq. STOEL RIVES 201 South Main Street, Suite 1100 Salt Lake City, UT 84111 Tel: (801) 328-3131 Fax: (801) 578-6999 Email: danny.kelly@stoel.com Trimac Transportation Central is represented by: Adelaide Maudsley, Esq. KIRTON MCCONKIE Kirton McConkie Building 50 East South Temple Suite 400 Salt Lake City, UT 84111 Tel: (801) 328-3600 Fax: (801) 321-4893 Email: amaudsley@kmclaw.com About C.W. Mining Company C.W. Mining Company ("CWM") was the former owner of a coal mine in Utah. Based in Salt Lake City, Utah, C.W. Mining Co. dba Co-Op Mining Company operated the Bear Canyon Mine in Emery County, Utah, under the terms of a lease with C.O.P. Coal Development Company, which owns the mine. Aquila Inc., Owell Precast, LLC, and House of Pumps, Inc., filed an involuntary Chapter 11 petition (Bankr. D. Utah Case No. 08-20105) on Jan. 8, 2008. In November 2008, the Chapter 11 case was converted to a Chapter 7 liquidation proceeding. Kenneth A. Rushton serves as the Chapter 7 Trustee, and is represented by Brent D. Wride, Esq., at Ray Quinney & Nebeker, in Salt Lake City. Gary E. Jubber later substituted Mr. Rushton as Chapter 7 Trustee. CYANCO INTERMEDIATE: S&P Affirms 'B' CCR, Outlook Stable -------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on Texas-based Cyanco Intermediate Corp. to stable from negative. At the same time, S&P affirmed all ratings, including its 'B' corporate credit rating, on the company. S&P also affirmed its 'B+' issue-level rating on Cyanco's senior secured debt. The recovery rating on this debt remains '2', indicating S&P's expectation of substantial (lower half of the 70%-90% range) recovery in the event of a default. "The outlook revision reflects Cyanco's strengthened liquidity position resulting from improving 2015 EBITDA and moderate free operating cash flow, which the company has used to reduce debt over the past few quarters," said Standard & Poor's credit analyst Daniel Krauss. Through the first half of 2015, volumes have increased moderately and the benefits from cost-reduction initiatives have led to improved earnings and EBITDA margins. S&P expects that the company will be able to maintain "adequate" liquidity levels, including sufficient cushion under its net leverage covenant over the next 12 to 24 months. S&P views Cyanco's business risk profile as "weak," reflecting its narrow focus as a producer of sodium cyanide used by the gold mining industry, high customer concentration, dependence on Ascend Performance Materials LLC (Ascend) as a key raw material supplier, and reliance on two manufacturing sites. S&P's assessment of Cyanco's financial risk profile as highly leveraged reflects the company's high debt leverage and our view of the financial policy risks associated with the company's ownership by a financial sponsor. S&P considers Cyanco's liquidity as "adequate." The stable outlook reflects S&P's view that Cyanco will continue to generate solid EBITDA margins and maintain credit measures appropriate for the current rating. Under S&P's current assessment, it expects the company to maintain FFO/debt at about 12% and debt to EBITDA of about 5x, as the company prioritizes the use of free cash flow generation to reduce debt. The reduction in debt should help ensure that the company will comply with its net leverage covenant by improving its existing EBITDA cushion. S&P could lower the ratings if there is a significant drop-off in operating performance or if S&P thinks that compliance with covenants could become an issue. In S&P's downside scenario, a 10% decrease in 2016 revenue growth combined with a 5% or more drop in EBITDA margins from current projections would lead to leverage increasing above 6x and FFO to debt dropping into the high-single-digit percentage range. A loss of one of Cyanco's three key customers, which together generate approximately 40% of the company's revenue, or major disruptions at one of the company's two production facilities, could produce such a scenario. S&P could raise the rating by one notch if the company continues to bolster its credit measures by consistently paying down debt and maintaining an "adequate" liquidity level. Specifically, S&P could consider a higher rating if the company is able to improve FFO to debt consistently above 12%, with the expectation that the company would maintain this ratio at this level even after factoring in future financial policy decisions. DETROIT, MI: Governor Readies Legislation to Fix Public Schools --------------------------------------------------------------- ABI.org reported that Michigan Governor Rick Snyder said on Oct. 18, 2015, that Detroit's public schools should be split between a new community school district and the current district to raise academic performance. About Detroit, Michigan The City of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit estimated more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The City's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension-related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. A nine-member official committee of retired workers appointed in the case is represented by Dentons US LLP. Lazard Freres & Co. LLC serves as the Retiree Committee's financial advisor. Detroit filed a notice that the effective date of its bankruptcy-exit plan occurred on Dec. 10, 2014. Judge Steven Rhodes on Nov. 12, 2014, entered an order confirming the Eighth Amended Plan for the Adjustment of Debts of the City of Detroit. Thomas Tucker, a federal bankruptcy judge since 2003, took over Detroit's landmark bankruptcy case following the retirement of Judge Rhodes. DEWEY & LEBOEUF: Exes Still in Hot Water Despite Mistrial Verdict ----------------------------------------------------------------- Lisa Ryan at Bankruptcy Law360 reported that the embattled ex-Dewey & LeBoeuf LLP executives are still in hot water despite Oct. 18, 2015's mistrial verdict, unable to shake the fraud charges quite yet because of a potential retrial looming in the distance. Two partial jury verdicts cleared former Dewey Chairman Steven Davis, Executive Director Stephen DiCarmine and Chief Financial Officer Joel Sanders of 58 total counts of falsifying business records, but because the jury deadlocked on the 93 remaining charges, New York Supreme Court Judge Robert Stolz declared a mistrial. Four-and-A-Half Month Trial Stewart Bishop at Bankruptcy Law360 reported that the Manhattan District Attorney's Office took a hit on Oct. 19, when jurors in the trial of the former leaders of Dewey & LeBoeuf deadlocked on most of the counts in a case experts say was plagued by a litany of charges, a lack of expert testimony and mediocre cooperators. After a four-and-a-half-month trial, a jury of seven women and five men told New York Supreme Court Judge Robert Stolz three times they were unable to reach a unanimous verdict on most of the charges. No Clean Sweep According to Bankruptcy Law360, the closely watched case over the collapse of Dewey & LeBoeuf ended in a jury deadlock and mistrial. But over the course of nearly five months of testimony and drawn-out deliberations, the trial laid bare the dirty laundry of a BigLaw firm in turmoil. The defendants' attorneys said they were disappointed the jury didn't deliver a "clean sweep." Witnesses in the Dewey & LeBoeuf accounting fraud trial ran the gamut of emotions over the course of three months of testimony in Manhattan criminal court, providing a behind-the-scenes account of the megafirm's spectacular rise and fall. Stewart Bishop at Bankruptcy Law360 reported that after the mistrial in the fraud case against the former top executives of Dewey & LeBoeuf, prosecutors wasted no time in saying they were considering a retrial, and experts predict the Manhattan District Attorney's office will regroup and try the case again. In another report by Mr. Bishop and Stan Parker, after a 76-day trial and five weeks of deliberations, attorneys for former Dewey & LeBoeuf LLP executives Stephen DiCarmine and Steven Davis told Law360 on on Oct. 18, they were disappointed the jury didn't deliver a "clean sweep" and criticized Manhattan District Attorney Cyrus R. Vance Jr. for trying an "absolutely inappropriate" criminal case. About Dewey & LeBoeuf Dewey & LeBoeuf LLP sought Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 12-12321) to complete the wind-down of its operations. The firm had struggled with high debt and partner defections. Dewey disclosed debt of $245 million and assets of $193 million in its chapter 11 filing late evening on May 29, 2012. Dewey & LeBoeuf LLP operated as a prestigious, New York City- based, law firm that traced its roots to the 2007 merger of Dewey Ballantine LLP -- originally founded in 1909 as Root, Clark & Bird -- and LeBoeuf, Lamb, Green & MacCrae LLP -- originally founded in 1929. In recent years, more than 1,400 lawyers worked at the firm in numerous domestic and foreign offices. At its peak, Dewey employed about 2,000 people with 1,300 lawyers in 25 offices across the globe. When it filed for bankruptcy, only 150 employees were left to complete the wind-down of the business. Dewey's offices in Hong Kong and Beijing are being wound down. The partners of the separate partnership in England are in process of winding down the business in London and Paris, and administration proceedings in England were commenced May 28. All lawyers in the Madrid and Brussels offices have departed. Nearly all of the lawyers and staff of the Frankfurt office have departed, and the remaining personnel are preparing for the closure. The firm's office in Sao Paulo, Brazil, is being prepared for closure and the liquidation of the firm's local affiliate. The partners of the firm in the Johannesburg office, South Africa, are planning to wind down the practice. The firm's ownership interest in its practice in Warsaw, Poland, was sold to the firm of Greenberg Traurig PA on May 11 for $6 million. The Pension Benefit Guaranty Corp. took $2 million of the proceeds as part of a settlement. Judge Martin Glenn oversees the case. Albert Togut, Esq., at Togut, Segal & Segal LLP, represents the Debtor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The petition was signed by Jonathan A. Mitchell, chief restructuring officer. JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the lenders under the Revolver Agreement, hired Kramer Levin Naftalis & Frankel LLP. JPMorgan, as Collateral Agent for the Revolver Lenders and the Noteholders, hired FTI Consulting and Gulf Atlantic Capital, as financial advisors. The Noteholders hired Bingham McCutchen LLP as counsel. The U.S. Trustee formed two committees -- one to represent unsecured creditors and the second to represent former Dewey partners. The creditors committee hired Brown Rudnick LLP led by Edward S. Weisfelner, Esq., as counsel. The Former Partners hired Tracy L. Klestadt, Esq., and Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel. FTI Consulting, Inc. was appointed secured lender trustee for the Secured Lender Trust. Alan Jacobs of AMJ Advisors LLC, was named Dewey's liquidation trustee. Scott E. Ratner, Esq., Frank A. Oswald, Esq., David A. Paul, Esq., Steven S. Flores, Esq., at Togut, Segal & Segal LLP, serve as counsel to the Liquidation Trustee. Dewey's liquidating Chapter 11 plan was approved by the bankruptcy court in February 2013 and implemented in March. The plan created a trust to collect and distribute remaining assets. The firm estimated that midpoint recoveries for secured and unsecured creditors under the plan would be 58.4 percent and 9.1 percent, respectively. DURANGO GEORGIA: Equitable Subordination of PBGC's Claim Disallowed ------------------------------------------------------------------- Judge John S. Dalis of the United States Bankruptcy Court for the Southern District of Georgia, Brunswick Division, dismissed, with prejudice, the complaint for equitable subordination of Pension Benefit Guaranty Corporation's claim. An adversary proceeding was filed seeking equitable subordination of PBGC's claim for the total amount of unfunded benefit liabilities under 29 U.S.C. Section 1362(b). The complaint asserted that the PBGC not only had every opportunity but also was requested numerous times to intervene in the Liquidating Trustee's nearly eleven-year adversary proceeding seeking to recover the amount of the Termination Liability from the previous owners of the paper mill in St. Marys, Georgia. The Liquidating Trustee asserted that the PBGC's refusal to intervene or bring its own action was inequitable conduct that injured the remaining creditors, requiring equitable subordination of the PBGC's claim for the Termination Liability. In granting PBGC's motion to dismiss, Judge Dalis held that the complaint failed to state a claim. Judge Dalis found that PBGC's claim may not be equitably subordinated in the absence of inequitable conduct, the PBGC is not an "insider" for the purpose of establishing inequitable conduct, and PBGC's decision not to intervene or to file its own action was not inequitable. Further, Judge Dalis also concluded that the Liquidating Trustee has not shown a causal connection between the PBGC's decision not to pursue an action against the paper mill's previous owners and the alleged injury to the other unsecured creditors. The case is IN RE: DURANGO GEORGIA PAPER COMPANY, DURANGO GEORGIA CONVERTING CORPORATION, and DURANGO GEORGIA CONVERTING LLC, CHAPTER 11, Debtors. DURANGO GEORGIA PAPER COMPANY, DURANGO GEORGIA CONVERTING CORPORATION, and DURANGO GEORGIA CONVERTING LLC Plaintiffs, v. PENSION BENEFIT GUARANTY CORPORATION Defendant, CASE NO. 02-21669, ADVERSARY PROCEEDING NO. 15-02009 (Bankr. S.D. Ga.). A full-text copy of Judge Dalis' October 5, 2015 opinion and order is available at http://is.gd/nxsENufrom Leagle.com. About Durango Georgia Based in St. Mary's, Georgia, Durango Georgia Paper Company -- http://www.durangopaper.com/-- was a nationally recognized bleached board and kraft paper producer in the U.S. offering coast-to-coast and international service. On Oct. 29. 2002, creditors filed an involuntary chapter 7 petition against Durango. The Company filed for chapter 11 relief on Nov. 20, 2002 (Bankr. S.D. Ga. Case No. 02-21669). George H. Mccallum, Esq., at Stone & Baxter, LLP, Kate D. Strain, Esq., at Hunter, Maclean, Exley & Dunn, PC, and Neil P. Olack, Esq., at Duane Morris LLP, represent the Debtor in its restructuring efforts. Bridge Associates, LLC, was appointed as Liquidating Trustee under the terms of a Plan of Liquidation approved by creditors and confirmed by the Bankruptcy Court in June 2004. EHC LLC: Voluntary Chapter 11 Case Summary ------------------------------------------ Debtor: EHC LLC 36 W Randolph Chicago, IL 60602 Case No.: 15-35952 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: October 22, 2015 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Hon. Jacqueline P. Cox Debtor's Counsel: Nikola Duric, Esq. DURIC LAW OFFICES 810 Busse Highway Park Ridge, IL 60068 Tel: (847) 656-5410 Email: duriclaw@att.net Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The Debtor did not include a list of its largest unsecured creditors when it filed the petition. ELBIT IMAGING: Announces Series H and I Notes Buy-Back ------------------------------------------------------ Elbit Imaging Ltd. announced that in connection with the Board of Directors' resolution to approve a notes' Buy-Back plan of the Company's series H and I Notes which are traded on the Tel Aviv Stock Exchange, the repurchases of the following Notes was executed since the Oct. 12, 2015: Note: Series H Acquiring Elbit Imaging Ltd. Corporation: Quantity 8,515,818 Purchased (Par value): Weighted 87.43 average price: Total amount 7,445,810 paid(NIS): About Elbit Imaging Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) holds investments in real estate and medical companies. The Company, through its subsidiaries, also develops shopping and entertainment centers in Central Europe and invests in and manages hotels. Since February 2013, Elbit has intensively endeavored to come to an arrangement with its creditors. Elbit has said it has been hanging by a thread for more than five months. It has encountered cash flow difficulties and this burdens its day to day activities, and it certainly cannot make the necessary investments to improve its assets. In light of the arrangement proceedings, and according to the demands of most of the bondholders, as well as an agreement that was signed on March 19, 2013, between Elbit and the Trustees of six out of eight series of bonds, Elbit is prohibited, inter alia, from paying off its debts to the financial creditors -- and as a result a petition to liquidate Elbit was filed, and Bank Hapoalim has declared its debts immediately payable, threatening to realize pledges that were given to the Bank on material assets of the Company -- and Elbit undertook not to sell material assets of the Company and not to perform any transaction that is not during its ordinary course of business without giving an advance notice to the trustees. Accountant Rony Elroy has been appointed as expert for examining the debt arrangement in the Company. In July 2013, Elbit Imaging's controlling shareholders, Europe- Israel MMS Ltd. and Mr. Mordechay Zisser, notified the Company that the Tel Aviv District Court has appointed Adv. Giroa Erdinast as a receiver with regards to the ordinary shares of the Company held by Europe Israel securing Europe Israel's obligations under its loan agreement with Bank Hapoalim B.M. The judgment stated that the Receiver is not authorized to sell the Company's shares at this stage. Following a request of Europe-Israel, the Court also delayed any action to be taken with regards to the sale of those shares for a period of 60 days. Europe Israel and Mr. Zisser have also notified the Company that they utterly reject the Bank's claims and intend to appeal the Court's ruling. As of June 30, 2015, the Company had NIS 2.8 billion in total assets, NIS 2.5 billion in total liabilities and NIS 338.3 million in shareholders' equity. ELBIT IMAGING: InSightec Seeks FDA OK of Exablate Neuro Treatment ----------------------------------------------------------------- Elbit Imaging Ltd. announced that it was informed by InSightec Ltd., that InSightec has submitted a premarket approval application to the U.S. Food and Drug Administration for its Exablate Neuro treatment of Essential Tremor. Exablate Neuro uses high intensity focused ultrasound to thermally ablate the target tissue and continuous MRI to visualize the anatomy, plan treatment and monitor treatment outcomes. In the brain, MRgFUS is used to perform a non-invasive thalamotomy through intact skull to relieve tremor in patients with Essential Tremor. The Company holds approximately 82.7% of the share capital of Elbit Medical Technologies Ltd. (on a fully diluted basis) which, in turn, holds approximately 29.6% of the share capital in InSightec (on a fully diluted basis). About Elbit Imaging Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) holds investments in real estate and medical companies. The Company, through its subsidiaries, also develops shopping and entertainment centers in Central Europe and invests in and manages hotels. Since February 2013, Elbit has intensively endeavored to come to an arrangement with its creditors. Elbit has said it has been hanging by a thread for more than five months. It has encountered cash flow difficulties and this burdens its day to day activities, and it certainly cannot make the necessary investments to improve its assets. In light of the arrangement proceedings, and according to the demands of most of the bondholders, as well as an agreement that was signed on March 19, 2013, between Elbit and the Trustees of six out of eight series of bonds, Elbit is prohibited, inter alia, from paying off its debts to the financial creditors -- and as a result a petition to liquidate Elbit was filed, and Bank Hapoalim has declared its debts immediately payable, threatening to realize pledges that were given to the Bank on material assets of the Company -- and Elbit undertook not to sell material assets of the Company and not to perform any transaction that is not during its ordinary course of business without giving an advance notice to the trustees. Accountant Rony Elroy has been appointed as expert for examining the debt arrangement in the Company. In July 2013, Elbit Imaging's controlling shareholders, Europe- Israel MMS Ltd. and Mr. Mordechay Zisser, notified the Company that the Tel Aviv District Court has appointed Adv. Giroa Erdinast as a receiver with regards to the ordinary shares of the Company held by Europe Israel securing Europe Israel's obligations under its loan agreement with Bank Hapoalim B.M. The judgment stated that the Receiver is not authorized to sell the Company's shares at this stage. Following a request of Europe-Israel, the Court also delayed any action to be taken with regards to the sale of those shares for a period of 60 days. Europe Israel and Mr. Zisser have also notified the Company that they utterly reject the Bank's claims and intend to appeal the Court's ruling. As of June 30, 2015, the Company had NIS 2.8 billion in total assets, NIS 2.5 billion in total liabilities and NIS 338.3 million in shareholders' equity. ENDEAVOUR INTERNATIONAL: Has Approval for Structured Dismissal -------------------------------------------------------------- BankruptcyData reported that the U.S. Bankruptcy Court approved Endeavour International's motion to dismiss its Chapter 11 proceedings. According to the order, "EOC is authorized to make distributions totaling $3.2 million in cash, the settlement payment, in full and final satisfaction of certain allowed unsecured claims including (i) to Kurtzman Carson Consultants, in an amount of $53,659.40…; (ii) to holders of guarantee claims against Debtors on account of $135 million in principal amount of 5.5% convertible notes due 2016 in the amount of $1,362,508.66; (iii) to holders of guarantee claims on account of $17.5 million in principal amount of 6.5% convertible notes due 2017 in the aggregate amount of $178,449 and (iv) to Wilmington Trust, in its capacity as indenture trustee for distribution to holders of the $150 million in principal amount of 12% notes due 2018, in the amount of $1,605,382..." As previously reported, the Company sold all of its U.S. oil and gas assets and, as part of a credit bit transaction, sold the equity in its U.K. subsidiaries. Following consummation of the sales, EOC had no business left to reorganize and nothing of value left in its estates. EOC explains, "Through dismissal, the Debtors seek to minimize the accrual of additional administrative expenses. The Debtors believe that the alternative to dismissal -- conversion of the Chapter 11 cases to Chapter 7 of the Bankruptcy Code -- is unwarranted because such conversion would create additional administrative expenses, unnecessarily reducing the recoveries of creditors." The independent oil and gas provider filed for Chapter 11 protection on Oct. 10, 2014, listing $1.5 billion million in prepetition assets. ABI.org reported that on Oct. 16, won approval for its debt-for-equity swap with bondholders, the latest company to use a structured dismissal. Matt Chiappardi at Bankruptcy Law360 reported that a Delaware bankruptcy judge on Oct. 16, 2015, agreed to allow Endeavour Operating Corp. to go ahead with a so-called structured dismissal of its Chapter 11 case after the oil company struck a deal with unsecured creditors who opposed the move and months since it ditched a prearranged exit strategy. During a hearing in Wilmington, U.S. Bankruptcy Judge Kevin J. Carey learned that Endeavour had struck a deal that allowed unsecured creditors to recover $3.2 million from the estate. About Endeavour International Houston, Texas-based Endeavour International Corporation (OTC: ENDRQ) (LSE: ENDV) is an oil and gas exploration and production company focused on the acquisition, exploration and development of energy reserves in the North Sea and the United States. On Oct. 10, 2014, Endeavour International and five affiliates filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 14-12308, Endeavour Operating Corp.). The Hon. Kevin J. Carey presides over the cases. As of June 30, 2014, the Company had $1.55 billion in total assets, $1.55 billion in total liabilities, $43.7 million in Series C convertible preferred stock, and a $41.5 million stockholders' deficit. Endeavour Operating Corporation, in its schedules, disclosed $808,358,297 in assets and $1,242,480,297 in liabilities as of the Chapter 11 filing. The Debtors have tapped Weil, Gotshal & Manges LLP as counsel; Richards, Layton & Finger, P.A., as co-counsel; The Blackstone Group L.P., as financial advisor; AlixPartners, LLP, as restructuring advisor; and Kurtzman Carson Consultants LLC, as claims and noticing agent. The U.S. Trustee for Region 3 has appointed three members to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Endeavour Operating Corporation and its debtor affiliates. The Committee is represented by David M. Bennett, Esq., Cassandra Sepanik Shoemaker, Esq., and Demetra L. Liggins, Esq., at Thompson & Knight LLP, and Neil B. Glassman, Esq., Scott D. Cousins, Esq., and Evan T. Miller, Esq., at Bayard, P.A. Alvarez & Marsal North America, LLC, serves as financial advisors to the Committee, while UpShot Services LLC serves as website administrator. * * * U.S. Bankruptcy Judge Kevin J. Carey in of Delaware, on Dec. 22, 2014, approved the disclosure statement explaining Endeavour Operating Corporation, et al.'s joint plan of reorganization. The Amended Plan, dated Dec. 19, 2014, provides that it is supported by creditors who collectively hold 82.99% of the March 2018 Notes Claims (Class 3), 70.88% of the June 2018 Notes Claims (Class 4), 99.75% of the 7.5% Convertible Bonds Claims (Class 5), and 69.08% of the Convertible Notes Claims (Class 6). The Amended Plan also provides that holders of general unsecured claims will recover an estimated 15% of the total claims amount, which is estimated to be $6,000,000. The hearing to consider confirmation of the Amended Joint Plan of Reorganization, dated Dec. 23, 2014, of Endeavour Operating Corporation and its affiliated debtors, including Endeavour International Corporation, has been adjourned to a date to be determined. On April 29, 2015, the Debtor announced that, as a result of recent declines in oil and gas prices, the Company withdrew the proposed Plan. ENERGY FUTURE: Junior Noteholders Assert Make-Whole Payment Claim ----------------------------------------------------------------- Matt Chiappardi at Bankruptcy Law360 reported that holders of nearly $2.2 billion worth of an Energy Future Holdings Corp. unit's second-lien notes told a Delaware bankruptcy judge on Oct. 19, 2015, that they are due up to more than $400 million in make-whole payments despite the court's decision months ago denying such premiums in a similar situation. During a hearing in Wilmington, Computershare Trust Co. -- indenture trustee for $2.16 billion in second-lien notes issued by EFH subsidiary Energy Future Intermediate Holding Co. LLC -- argued the court. Jonathan Randles, in a separate report, related that the Debtor on Oct. 18, 2015, filed a lawsuit in Delaware that would force an investment company to relinquish its minority ownership stake in EFH's prized Oncor Electric Delivery business in order to facilitate a key component of the bankrupt company's $13 billion reorganization strategy. EFH's plan to sell its 80 percent stake in Oncor, which operates the largest electric distribution and transmission system in Texas, to a group led by Hunt Consolidated Inc. is serving as the linchpin of the Debtor's proposed Chapter 11 plan. 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 while reducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). The Debtors are seeking to have their cases Jointly administered for procedural purposes. As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in book value and liabilities of $49.7 billion. The Debtors have $42 billion of funded indebtedness. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee for the second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee represents the interests of the unsecured creditors of ONLY of Energy Future Competitive Holdings Company LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings Company LLC; and EFH Corporate Services Company, and of no other debtors. The Committee has selected Morrison & Foerster LLP and Polsinelli PC for representation in this high-profile energy restructuring. The lawyers working on the case are James M. Peck, Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K. Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at Polsinelli PC. ENERGY XXI: Moody's Cuts Corporate Family Rating to Caa3 -------------------------------------------------------- Moody's Investors Service downgraded Energy XXI Gulf Coast, Inc.'s (EXXI) Corporate Family Rating (CFR) to Caa3 from Caa2, its Probability of Default Rating to Caa3-PD/LD from Caa2-PD, its second lien secured notes rating to Caa1 from B2, and its senior unsecured notes rating to Ca from Caa3. EPL Oil & Gas, Inc. is EXXI's wholly-owned subsidiary, and its senior unsecured notes were also downgraded from Caa3 to Ca. Moody's also lowered EXXI's Speculative Grade Liquidity Rating to SGL-4 from SGL-3. The ratings outlook is negative. EXXI has repurchased some of its unsecured notes in the market, and as of September 25, 2015, the company had retired over $425 million in face value of bonds. Moody's considers EXXI's repurchase of unsecured debt at a discount to par as a distressed exchange for its senior unsecured debt, which Moody's views as a default. As noted above, Moody's appended the Caa3-PD PDR with an "/LD" designation indicating limited default, which will be removed three business days thereafter. Rating Actions: Issuer: Energy XXI Gulf Coast, Inc. -- Corporate Family Rating, Downgraded to Caa3 from Caa2 -- Probability of Default Rating, Downgraded to Caa3-PD/LD from Caa2-PD -- Speculative Grade Liquidity Rating, Lowered to SGL-4 from SGL-3 -- Senior secured second lien notes to Caa1 (LGD2) from B2 (LGD2) -- Senior unsecured notes to Ca (LGD5) from Caa3 (LGD4) EPL Oil & Gas, Inc. -- Senior unsecured notes to Ca (LGD5) from Caa3 (LGD4) Outlook Actions: Energy XXI Gulf Coast Inc. Outlook: Changed to Negative from Stable EPL Oil & Gas, Inc. Outlook: Changed to Negative from Stable RATINGS RATIONALE EXXI's Caa3 CFR reflects high risk for the company's business profile because of elevated leverage and limited financial flexibility in a weak commodity price environment. EXXI's rating also reflects the high risk that EXXI will not have the ability to grow out of its weak leverage metrics as reduced capital expenditures and expected low commodity prices impact its production and EBITDA, while its high interest expense and abandonment costs limit cash flow. EXXI's SGL-4 Speculative Grade Liquidity Rating reflects its weak liquidity profile through 2016. As of September 25, 2015 and including the effect of over $425 million in face value of bond purchases, EXXI had available liquidity of roughly $600 million, including $124 million available under its $500 million borrowing base revolving credit facility. The credit facility matures in April 2018. However, EXXI could make additional bond repurchases using its cash balances. As EXXI continues to outspend its cash flow, EXXI's liquidity will shrink through 2016. Further, as EBITDA contracts, we expect EXXI to have difficulty in complying with its financial covenants and will need to seek covenant relief from its lenders. EXXI's and EPL's notes are rated Ca, which is one notch below EXXI's Caa3 CFR. This notching reflects the priority claim given to the senior secured credit facility and second lien notes. The second lien notes are rated two notches above the company's CFR reflecting its priority claim over EXXI's unsecured notes. The company's negative ratings outlook reflects its still highly levered capital structure and the likely need to re-negotiate its financial covenants. The outlook could return to stable if the company makes sufficient progress in fixing its still untenable capital structure. A downgrade is possible if liquidity deteriorates and falls below $200 million, or the company is unable to re-negotiate its financial covenants. An upgrade will not be considered until retained cash flow to debt exceeds 5% and the company continues to maintain adequate liquidity. Energy XXI Gulf Coast, Inc. (EXXI) is an indirect wholly-owned subsidiary of publicly listed Energy XXI Limited and is engaged in the exploration and production of oil, natural gas liquids and natural gas in the shallow and deepwater of the US Gulf of Mexico. EPL Oil & Gas, Inc. is a wholly-owned subsidiary of EXXI. ENERGYSOLUTIONS INC: S&P Lowers CCR to 'B', Outlook Stable ---------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered its corporate credit rating on EnergySolutions Inc. to 'B' from 'B+'. The outlook is stable. At the same time, S&P lowered its issue-level rating on the company's senior secured credit facilities to 'B+' from 'BB-'. The '2' recovery rating is unchanged, indicating S&P's expectation of substantial (70%-90%; lower half of the range) recovery in a payment default scenario. "The downgrade reflects our view that EnergySolutions' credit measures will deteriorate to the extent that we will no longer be justified in applying our "positive" comparable rating analysis modifier to our rating on the company," said Standard & Poor's credit analyst James Siahaan. EnergySolutions' second-quarter operating performance was quite weak because the volume of radioactive waste available for logistics, processing, and disposal service companies eroded meaningfully while the firm was also beset by litigation-related expenses. While the company has benefitted from lower interest costs following its 2014 refinancing, this savings has been more than offset by the company's weaker-than-expected earnings and cash flow generation. As of June 30, 2015, the company's adjusted total debt-to-EBITDA ratio exceeded 7x. While S&P do believes that this measure will improve during the second half of 2015 as the environment for government projects in the U.K. improves, S&P nonetheless believes that this ratio will likely remain at the high end of its typical 5x-6x range for issuers that S&P rates in the 'B' category. Consequently, S&P has revised its comparable rating analysis assessment on EnergySolutions to "neutral" from "positive", leading S&P to lower its rating on the company. The stable outlook on EnergySolutions Inc. reflects S&P's view that, while the company has been beset by muted volumes and higher costs in 2015, its participation in the highly regulated LLRW industry and its operational improvements will allow it to generate satisfactory EBITDA margins and good free cash flow over the next 12 months. S&P believes that the lower interest costs following the company's 2014 refinancing and prudent financial policies supported by the company's management and ownership will support its credit quality, allowing it to continue to deleverage to the point that its adjusted debt-to-EBITDA ratio falls below 6x over the next 12 months. S&P could lower its rating on EnergySolutions if the company were to face significant and protracted operating challenges, or if it incurs additional debt such that its adjusted debt-to-EBITDA ratio will likely remain above 6.5x without material prospects for improvement. While the company's adjusted leverage metric exceeded this figure as of June 30, 2015, S&P anticipates that this ratio will improve to below 6x as the anticipated repayment of some of the company's revolving debt and additional earnings contributions in the third and fourth quarters are realized. For EnergySolutions' adjusted leverage ratio to again exceed 6.5x, it would require the company's EBITDA margins to decline by 200 basis points from S&P's projections. Although unlikely, S&P could raise its rating on EnergySolutions if the company's waste volumes, operating efficiency, cost management, and profitability all improve significantly, causing its adjusted debt-to-EBITDA ratio to decline to less than 5x and remain there for more than two consecutive quarters. An upgrade would also be predicated on management commitment to follow more conservative financial policies while maintaining adequate liquidity. S&P's analysis does not factor in any potential remuneration to EnergySolutions from a legal settlement with the U.K.'s Nuclear Decommissioning Authority pertaining to its procedures associated with awarding the Magnox decommissioning contract. If the company receives an award of significant size and applies the proceeds to debt reduction, it would also support S&P's rationale for a positive rating action. FIRST DATA: Citadel Reports Ownership of 9.56M Class A Shares ------------------------------------------------------------- In a Schedule 13G filed with the Securities and Exchange Commission, Citadel Advisors LLC, et al., disclosed that as of Oct. 15, 2015, they beneficially owned 9,562,877 shares shares of Class A common stock, par value $0.01 per share, of First Data Corporation, representing 6 percent of the shares outstanding. A copy of the regulatory filing is available at: http://is.gd/fRpD4K About First Data Based in Atlanta, Georgia, First Data Corporation provides commerce and payment solutions for financial institutions, merchants, and other organizations worldwide. First Data reported a net loss attributable to the Corporation of $458 million on $11.2 billion of total revenues for the year ended Dec. 31, 2014, compared with a net loss attributable to the Corporation of $869 million on $10.8 billion of total revenues during the prior year. As of June 30, 2015, the Company had $34.5 billion in total assets, $32.1 billion in total liabilities and $2.3 billion in total equity. * * * The Company carries a 'B3' corporate family rating, with a stable outlook, from Moody's Investors Service, a 'B' corporate credit rating, with stable outlook, from Standard & Poor's, and a 'B' long-term issuer default rating from Fitch Ratings. FOURTH QUARTER PROPERTIES: MLIC Seeks Automatic Stay Relief ----------------------------------------------------------- MLIC Asset Holdings, LLC, and MLIC CB Holdings, LLC ("MLIC") ask the U.S. Bankruptcy Court for the Northern District of Georgia, Newnan Division, for relief from the automatic stay or to convert the case to Chapter 7. Metropolitan Life Insurance Company ("MetLife") is the holder of a First Mortgage Note and Loan Agreement executed by the Debtor and Stanley E. Thomas on the original principal amount of $30,000,000. To secure the indebtedness owed to MetLife pursuant to the Note, the Debtor executed a First Mortgage and Security Agreement granting to MetLife a security interest in, among other things, certain real property located in Sublette County, Wyoming. The Debtor failed to remit payments to MetLife and the Note was declared in default and accelerated by MetLife on Jan. 23, 2013. The Note, the Loan Agreement, the First Mortgage and Security Agreement and all related loan documents were assigned by MetLife to MLIC. MLIC relates that it filed suit against the Debtor, Thomas and John D. Phillips in the District Court for the Ninth Judicial District, County of Sublette, State of Wyoming and the District Court entered an Order Granting Summary Judgment and Decree of Foreclosure in favor of MLIC and against the Debtor, Mr. Thomas and Mr. Phillips ("Pre-Petition Wyoming Judgment"). MLIC further relates that the Pre-Petition Wyoming Judgment was never appealed and is a final, enforceable judgment in all respects. MLIC notes that the total amount due under the Pre-Petition Wyoming Judgment as of Petition Date was $27,925,104 ("Indebtedness"). MLIC further notes that the Indebtedness continues to accrue interest in the amount of $9,144 per day, and that since the Petition Date, through Sept. 8, 2015, an additional $2,094,015 of interest has accrued increasing the Indebtedness, exclusive of fees, interests and other costs that MLIC may be entitled to pursuant to 11 U.S.C. Sec. 506(b), to $30,019,119. MLIC contends that as of the Petition Date, the Indebtedness had not been satisfied and remained outstanding. MLIC tells the Court that sufficient cause exists to grant stay relief and permit MLIC to enforce the Pre-Petition Wyoming Judgment and foreclose on the Property, as the Debtor filed its Chapter 11 case in bad faith and MLIC's collateral interest in the Property is not adequately protected. MLIC further tells the Court that the Indebtedness as of Sept. 8, 2015 is $30,019,119 and the current appraised value of the Property is $25,600,000. MLIC adds that it requests the conversion of the case to Chapter 7 if the Court determines that relief from the automatic stay is not appropriate and the Debtor cannot provide adequate protection to MLIC. MLIC Asset Holdings and MLIC CB Holdings are represented by: Gary A. Barnes, Esq. Ron C. Bingham, II, Esq. Madeleine G. Kvalheim, Esq. BAKER, DONELSON, BEARMAN, CALDWELL & BERKOWITZ, P.C. Monarch Plaza, Suite 1600 3414 Peachtree Road, N.E. Atlanta, Georgia 30326 Telephone: (404)577-6000 Facsimile: (404)221-6501 E-mail: gbarnes@bakerdonelson.com rbingham@bakerdonelson.com mkvalheim@bakerdonelson.com About Fourth Quarter Properties 86 Fourth Quarter Properties 86, LLC, sought Chapter 11 protection (Bankr. N.D. Ga. Case No. 15-10135) in Newnan, Georgia, on Jan. 22, 2015. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due May 22, 2015. Little Suwanee Holdings, LLC, owns 95 percent of the membership interests in the Debtor while J. Bruce Williams, Jr., holds the remaining 5 percent. The Debtor is represented by Ward Stone, Jr., Esq., at Stone & Baxter LLP, in Macon, Georgia. The Debtor disclosed $49,124,608 in assets and $75,377,946 in liabilities in its schedules. FREE GOSPEL: Hires Capstar Commercial as Realtor ------------------------------------------------ The Free Gospel Church of the Apostles' Doctrines seeks authorization from the U.S. Bankruptcy Court for the District of Maryland to employ John Lin and Capstar Commercial Realty as realtor to sell a parcel of land located at 3631 Largo Road, Upper Marlboro, MD 20772. The initial listing price of the property will be $4,000,000. Mr. Lin may revise from time to time as the Owner may deem necessary. Mr. Lin will receive commission of 6% of the gross sale or exchange value price if sold at private sale as result of his effort. The rate of commission requested is customary for the sale of real property. Mr. Lin, president and founder of Capstar Commercial, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Capstar Commercial can be reached at: John Lin CAPSTAR COMMERCIAL REALTY 438 N. Frederick Avenue #450 Gaithersburg, MD 20877 Tel: (301) 738-7777 The Free Gospel of the Apostles' Doctrine filed a Chapter 11 bankruptcy petition (Bankr. D. Md. Case No. 15-18209) on June 9, 2015. The petition was signed by Antoinette Green-Snow as executive administrator. The Debtor estimated assets of $10 million to $50 million and debts of $1 million to $10 million. Frank Morris, II, Esq., at Law Office of Frank Morris II, serves as the Debtor's counsel. GEOMET INC: Central Securities No Longer Owns Shares as of Sept. 29 ------------------------------------------------------------------- In an amended Schedule 13G filed with the Securities and Exchange Commission, Central Securities Corporation disclosed that as of Sept. 29, 2015, it does not beneficially own common stock / Series A Convertible Redeemable Preferred Stock of GeoMet, Inc. A copy of the regulatory filing is available at http://is.gd/05Kxfg About Geomet Inc. Houston, Texas-based GeoMet, Inc., is an independent energy company primarily engaged in the exploration for and development and production of natural gas from coal seams (coalbed methane) and non-conventional shallow gas. Its principal operations and producing properties are located in the Cahaba and Black Warrior Basins in Alabama and the central Appalachian Basin in Virginia and West Virginia. It also owns additional coalbed methane and oil and gas development rights, principally in Alabama, Virginia, West Virginia, and British Columbia. As of March 31, 2012, it owns a total of 192,000 net acres of coalbed methane and oil and gas development rights. As reported by the TCR on Feb. 20, 2015, GeoMet said it has no operations and minimal assets, which raises substantial doubt about its ability to return any additional value to its stockholders. The Company added it may file a plan of dissolution if it cannot consummate a corporate transaction/merger prior to the third quarter of 2015. As of June 30, 2015, the Company had $21.6 million in total assets, $262,075 in total liabilities, $51.7 million in series A convertible redeemable preferred stock, and a $30.3 million total stockholders' deficit. GERTI MUHO: Files for Chapter 11 Protection in Florida ------------------------------------------------------ Cara Salvatore at Bankruptcy Law360 reported that asset manager Gerti Muho filed for Chapter 11 bankruptcy in Florida federal court on on Oct. 16, 2015, saying assets and claims worth $1 billion are under threat from a former business partner with whom he is embroiled in litigation. Muho's Chapter 11 petition seeks to cut off what he says are unjustified asset seizures by the former partner, Alphonse Fletcher Jr., which are also at the center of litigation he undertook this spring against firms including Jones Day and Morrison Foerster, who he says worked with Fletcher. GOE LIMA: SunTrust's Bid to Dismiss Smith-Boughan Suit Denied ------------------------------------------------------------- Judge Mary Ann Whipple of the United States Bankruptcy Court for the Northern District of Ohio, Western Division, denied SunTrust Bank's Motion for Summary Judgment. On June 30, 2009, Smith-Boughan, Inc., commenced an adversary proceeding by filing an eleven-count complaint and naming as defendants GOE Lima, LLC, and SunTrust Bank, individually and as agent for GOE's prepetition secured lenders. SunTrust Bank sought dismissal of all claims against it, based upon the claim preclusive effect of an award in an arbitration proceeding between Smith-Boughan and PEA (LIT), LLC, the assignee of certain construction claims against Smith-Boughan. According to SunTrust, pursuant to the arbitration award, the panel conclusively determined that Smith-Boughan does not have a valid claim against GOE's estate, thus precluding Smith-Boughan's assertion of such a claim. Judge Whipple, however, found that SunTrust has failed to show that the arbitration panel actually determined Smith-Boughan's claims against GOE's estate. Judge Whipple thus concluded that the arbitration award does not preclude Smith-Boughan's assertion that it has such claims. The case is In Re: GOE Lima, LLC, Chapter 11 Debtor. Smith-Boughan, Inc., Plaintiff, v. SunTrust Bank, et al., Defendants, CASE NO. 08-35508, ADV. PRO. NO. 09-3020 (Bankr. N.D. Ohio). A full-text copy of Judge Whipple's October 7, 2015 memorandum of decision and order is available at http://is.gd/Mksca1from Leagle.com. Smith-Boughan, Inc. is represented by: Timothy P. Nackowicz, Esq. ALLOTTA FARLEY CO., L.P.A. 2222 Centennial Road Toledo, OH 43617 Tel: (419) 535-0075 Fax: (419) 535-1935 -- and -- H. Buswell Roberts, Esq. 2001 South Main St. Unit 206-A Blacksburg, VA 24060 Tel: (540) 641-2840 Fax: (540) 951-8357 SunTrust Bank is represented by: Patricia B. Fugee, Esq. One SeaGate, Suite 1700 Toledo, OH 43604 Tel: (419) 254-5261 Fax: (419) 242-0316 Email: pfugee@ralaw.com GEO Lima, LLC is represented by: Timothy J. Hurley, Esq. Raymond W. Lembke, Esq. Earl K. Messer, Esq. TAFT, STETTINIUS & HOLLISTER LLP 425 Walnut Street Suite 1800 Cincinnati, OH 45202-3957 Tel: (513) 381-2838 Fax: (513) 381-0205 Email: hurley@taftlaw.com messer@taftlaw.com PEA (LIT), LLC is represented by: Kenneth R. Cookson, Esq. 65 East State Street, Suite 1800 Columbus, OH 43215 Tel: (614) 462-5445 Fax: (614) 464-2634 Email: kcookson@keglerbrown.com About GOE Lima Headquartered in Lima, Ohio, GOE Lima LLC -- http://www.go-ethanol.com/-- operated an ethanol production facility. The company filed for protection on Oct. 14, 2008 (Bankr. N.D. Ohio Case No. 08-35508). Taft Stettinius & Hollister LLP served as the Debtor's proposed bankruptcy counsel. In its Chapter 11 petition, the Debtor estimated assets and debts between $100 million to $500 million. Greater Ohio Ethanol was authorized by the Bankruptcy Court to sell its ethanol facility to Paladin Ethanol Acquisition LLC for $5.75 million cash and a note for $15.05 million the buyer may repurchase for as little as $2.5 million. Bloomberg News notes the plant cost $117 million to build. There were no acceptable bids by the original Dec. 15, 2008 deadline set by the Bankruptcy Court. On July 8, 2010, the Court entered an order confirming the Debtor's First Amended Joint Plan of Liquidation. GOLDEN PARK ESTATES: Court OKs Interim Payment to Ch. 11 Trustee ---------------------------------------------------------------- Judge David T. Thuma of the United States Bankruptcy Court for the District of New Mexico granted the Chapter 11 Trustee's motion to authorize monthly payments of 75% of his Trustee fees earned in the prior month. Mr. Craig Dill, the Chapter 11 trustee, sought interim payments equal to 75% of the commissions earned on disbursements during the previous month, pursuant to the commission schedule in 11 U.S.C. Section 326(a), and reimbursement of 100% of the expenses he incurs each month. After considering Sections 326 and 330, the creditors' interests, and the fact that the Chapter 11 Trustee is also employed as an accountant, Judge Thuma concluded that it is reasonable to allow the trustee to be paid interim compensation of 75% of the trustee fees earned from the prior months disbursements. Judge Thuma also authorized reimbursement of expenses to the extent set forth in a cash collateral order entered in October 1, 2015. The case is In re: GOLDEN PARK ESTATES, LLC, Debtor, CASE NO. 14-12253-T11 (Bankr. D.N.M.). A full-text copy of Judge Thuma's October 2, 2015 memorandum opinion is available at http://is.gd/Dk4gY8from Leagle.com. GOLDEN PARK ESTATES, LLC is represented by: Michelle Ostrye, Esq. ASKEW & MAZEL, LLC 320 Gold Avenue S.W. Suite 300A Albuquerque, NM 87102 Tel: (505) 433-3097 Fax: (505) 717-1494 Email: mostrye@askewmazelfirm.com Craig H Dill is represented by: James A. Askew, Esq. Daniel Andrew White, Esq. ASKEW & MAZEL, LLC 320 Gold Avenue S.W. Suite 300A Albuquerque, NM 87102 Tel: (505) 433-3097 Fax: (505) 717-1494 Email: jaskew@askewmazelfirm.com dwhite@askewmazelfirm.com -- and -- Jacqueline Ortiz, Esq. SUTIN THAYER & BROWNE Two Park Square Suite 1000 6565 Americas Parkway NE Albuquerque, NM 87110 Tel: (505) 883-2500 Fax: (505) 888-6565 Email: jno@sutinfirm.com United States Trustee is represented by: Alice Nystel Page, Esq. OFFICE OF THE U.S. TRUSTEE 421 Gold Avenue SE, Rm 112 Albuquerque, NM 87103-0608 Tel: (505) 248-6550 About Golden Park Estates Skillman, New Jersey-based Golden Park Estates, LLC, sought protection under Chapter 11 of the Bankruptcy Code on July 25, 2014 (Bankr. D.N.M., Case No. 14-12253). The case is assigned to Judge David T. Thuma. The Debtor's counsel is Chris W Pierce, Esq., at Albuquerque, New Mexico. GT ADVANCED: $1.1M Sale of Hyperion Assets to Neutron Okayed ------------------------------------------------------------ BankruptcyData reported that the U.S. Bankruptcy Court approved GT Advanced Technologies' motion for an order approving the sale of its Hyperion assets to Neutron Therapeutics free and clear of all liens, claims, encumbrances and interests. As previously reported, after several weeks of soliciting expressions of interest and facilitating due diligence by interested parties, Neutron emerged as the only party that was willing to provide a binding bid for the purchased assets, which consist of the tangible assets, intellectual property and other assets related to the Hyperion business. Accordingly, GTAT sought Court approval of the sale of the purchased assets to buyer for a cash purchase price of $1,100,000, subject to the terms and conditions of the asset purchase agreement and subject to any higher or otherwise better offers that GTAT may receive prior to the hearing on the motion. Neutron will also make offers of employment to all seventeen employees of GTAT who currently work in the Hyperion business, thus preserving jobs and minimizing potential employee claims that could otherwise result from the sale. 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 United States Bankruptcy Code (Bankr. D.N.H. Lead Case No. 4-11916). 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. HAGGEN HOLDINGS: "Carpenter" Suit Stayed by Bankruptcy Filing ------------------------------------------------------------- Haggen Opco North has filed a Suggestion of Bankruptcy to inform the United States District Court for the District of Oregon, Medford Division, that it has initiated Chapter 11 proceedings. Pursuant to 11 U.S.C. Section 362, an automatic stay has been placed on the action styled DAVID M. CARPENTER, Plaintiff, v. HAGGEN OPCO NORTH, d.b.a. HAGGEN #2083, a Delaware limited liability company, Defendant, CASE NO. 1:15-CV-1569-CL (D. Ore.). A full-text copy of the Oct. 9, 2015, Order signed by Magistrate Mark D. Clarke is available at http://is.gd/MKnFr0from Leagle.com. David M. Carpenter, Plaintiff, Pro Se. Haggen OPCO North, dba, Haggen #2083, Defendant, represented by Alexander M. Tinker, Esq. -- alex.tinker@tonkon.com -- Tonkon Torp LLP. Haggen OPCO North, dba, Haggen #2083, Defendant, represented by Steven D. Olson, Esq. -- steven.olson@tonkon.com -- Tonkon Torp LLP. About Haggen Holdings Headquartered in Bellingham, Washington, Haggen was founded in 1933 as a single grocery store. From 1933 to 2014, Haggen grew into a 30 store family-run grocery chain, with stores located in the northwestern United States. From 2011 to 2014, Haggen reduced its store base to 18, including a stand-alone pharmacy location. Haggen rapidly expanded in 2014 and 2015, and, as of the Petition Date, Haggen owned and operated 164 stores through three operating companies: Haggen, Inc., Haggen Opco North, LLC and Haggen Opco South, LLC. Haggen Holdings, LLC, and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 15-11874 to 15-11879) on Sept. 8, 2015, with the intention of reorganizing, or selling as a going concern, their stores for the benefit of their creditors. The petitions were signed by Blake Barnett, the chief financial officer. The Debtors estimated assets of $50 million to $100 million and estimated liabilities of $10 million to $50 million. Young, Conaway, Stargatt & Taylor, LLP, is serving as the Debtors' local counsel. Stroock & Stroock & Lavan LLP serves as the Debtors' general counsel. Alvarez & Marsal North America, LLC, acts as the Debtors' financial advisor. Kurtzman Carson Consultants LLC serves as the Debtors' claims and noticing agent. HERCULES OFFSHORE: Investors Appeal Exculpation Denial ------------------------------------------------------ Peg Brickley, writing for Dow Jones' Daily Bankruptcy Review, reported that investors that backed Hercules Offshore Inc.'s pre-packed chapter 11 have appealed a ruling that says they're not entitled to exculpation in future legal trouble over their work on the bankruptcy of the distressed oil-and-gas operator. According to the report, the Houston-based company filed for bankruptcy protection in August with a "prepackaged" exit plan. Judge Kevin Carey confirmed Hercules' plan about six weeks later but sided with U.S. Trustee Andrew Vara on the question of the reach of exculpation provisions immunizing those involved in the bankruptcy from lawsuits, the report noted. Investors have asked a federal judge in Delaware to take a look at the exculpation issue, one of high interest to distressed debt investors, the report said. About Hercules Offshore Headquartered in Houston, Hercules Offshore, Inc. -- http://www.herculesoffshore.com/-- operates a fleet of 27 jackup rigs, including one rig under construction, and 21 liftboats. The Company offers a range of services to oil and gas producers to meet their needs during drilling, well service, platform inspection, maintenance, and decommissioning operations in several key shallow water provinces around the world. On Aug. 13, 2015 Hercules Offshore and 14 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 15-11685) in the U.S. Bankruptcy Court for the District of Delaware. The cases are pending before the Honorable Kevin J. Carey. The Debtors tapped Baker Botts LLP as counsel; Morris, Nichols, Arsht & Tunnell, as local counsel; Andrews Kurth LLP, as general corporate counsel; Lazard Freres & Co. LLC, as investment banker, Alvarez & Marsal, as restructuring advisor; and Prime Clerk, LLC, as claims and noticing agent. The Steering Group of Holders of Senior Notes is represented by Akin Gump Strauss Hauer & Feld LLP's Arik Preis, Esq., and Michael S. Stamer, Esq. HERO disclosed $546 million in assets and $1.306 billion in debt as of Aug. 11, 2015. * * * Judge Kevin J. Carey, on Sept. 24, 2015, confirmed Hercules Offshore, Inc., et al.'s Joint Prepackaged Plan of Reorganization and approved the disclosure statement explaining the Plan. The Plan provides, among other things, that the Debtors will convert approximately $1.2 billion of debt into equity, raise $450 million of new capital and provide an opportunity for existing equity holders to receive a distribution if they do not opt out of the releases under the Plan. The Debtors on the Petition Date filed a prepackaged Chapter 11 plan that would convert $1.2 billion of outstanding senior notes to 96.9% of new common equity. HORNED DORSET: Seeks 15-Day Ext. to File Monthly Operating Reports ------------------------------------------------------------------ The Horned Dorset Primavera, Inc., asks the U.S. Bankruptcy Court for a 15-day extension to file its monthly reports for the months of May and June. The Debtor contends that it needs additional time to complete the reconciliation of the Bank account (pre and post filing) and file the required Reports. The Horned Dorset Primavera is represented by: Isabel M. Fullana, Esq. GARCIA-ARREGUI & FULLANA PSC 252 Ponce de Leon Ave. Ste 1101 Citibank Towers San Juan, PR 00918 Telephone: (787)766-2530 Facsimile: (787)756-7800 E-mail: isabelfullana@gmail.com About The Horned Dorset Primavera The Horned Dorset Primavera Inc. operates the Horned Dorset Primavera, a small luxury hotel located in northwestern Puerto Rico, two miles from the town of Rincon. The hotel -- http://www.horneddorset.net/-- is set among rolling hills at the edge of the beautiful Caribbean Sea and is known for reserved European service executed in an atmosphere unique in Puerto Rico and the award-winning Restaurant Aaron. The hotel is a member of Relais & Chateaux. The Horned Dorset Primavera Inc. commenced a Chapter 11 bankruptcy case (Bankr. D.P.R. Case No. 15-03837) in Old San Juan, Puerto Rico on May 22, 2015. According to the docket, the Debtor's Chapter 11 plan is due Nov. 18, 2015. The Debtor has tapped Isabel M. Fullana, Esq., at Garcia Arregui & Fullana PSC, as counsel. HOWREY LLP: Trustee and Creditors Want Case Converted to Chapter 7 ------------------------------------------------------------------ Cara Salvatore at Bankruptcy Law360 reported that Howrey LLP's bankruptcy trustee and unsecured creditors pressed a California bankruptcy judge on Oct. 18, 2015, to turn the failed law firm's Chapter 11 case into a Chapter 7 liquidation, saying former landlords' priority rent claims have proven an "insurmountable hurdle" in plan negotiations. Despite many successful negotiations with creditors and the recovery already of $80 million, the estate of the firm has reached a hurdle that it can't break through, according to an Oct. 18 motion. About Howrey LLP Three creditors filed an involuntary Chapter 7 petition (Bankr. N.D. Cal. Case No. 11-31376) on April 11, 2011, against the remnants of the Washington-based law firm Howrey LLP. The filing was in San Francisco, where the firm had an office. The firm previously was known as Howrey & Simon and Howrey Simon Arnold & White LLP. The firm at one time had more than 700 lawyers in 17 offices. The partners voted to dissolve in March 2011. The firm specialized in antitrust and intellectual-property matters. The three creditors filing the involuntary petition together have $36,600 in claims, according to their petition. The involuntary chapter 7 petition was converted to a chapter 11 case in June 2011 at the request of the firm. In its schedules filed in July, the Debtor disclosed assets of $138.7 million and liabilities of $107.0 million. Representing Citibank, the firm's largest creditor, is Kelley Cornish, Esq., a partner at Paul, Weiss, Rifkind, Wharton & Garrison. Representing Howrey is H. Jason Gold, Esq., a partner at Wiley Rein. The Official Committee of Unsecured Creditors is represented in the case by Bradford F. Englander, Esq., at Whiteford, Taylor And Preston LLP. In September 2011, Citibank sought conversion of the Debtor's case to Chapter 7 or, in the alternative, appointment of a Chapter 11 Trustee. The Court entered an order appointing a Chapter 11 Trustee. In October 2011, Allan B. Diamond was named as Trustee. He is represented by Andrew Baxter Ryan, Esq., and Stephen Todd Loden, Esq., at Diamond McCarthy LLP as counsel. HYDROCARB ENERGY: Closes $1.2 Million Secured Note Financing ------------------------------------------------------------ Hydrocarb Energy Corporation announced in a Form 8-K filed with the Securities and Exchange Commission the Company's updated business summary dated Oct. 11, 2015. Additionally the company disclosed the closing of a secured note financing including $1.25 million which is being used to help ensure that all variable conversion rate notes are paid off and which the Company believes sets the stage for a new financing plan. A copy of the Report is available at http://is.gd/8acVk5 When asked to comment, Kent P. Watts the Company's chief executive officer stated, "As a major impetus for financing required to fully develop our proved reserves going forward, on a non-discounted basis, our most current reserve report estimates that there is approximately $95 million of estimated future net income, potentially available to us, from all of our proved reserve categories." Mr. Watts went on to say, "this does not include any additional upside that could exist in our probable or possible reserve categories. We are working diligently in order to put the required financing in place to fully develop our producing assets for the benefit of our shareholders." The Company received a report, dated Sept. 11, 2015, entitled, Hydrocarb Energy Corporation Estimated Future Reserves and Income as of July 31, 2015, prepared by Ralph E Davis Associates, Inc., which includes an evaluation of the oil, natural gas, and natural gas liquid reserves on leaseholds in which the Company has interests as of July 31, 2015. The purpose of the report is to present a summary of the proved developed producing, proved developed behind pipe, proved shut-in, and proved undeveloped reserves that in the opinion of Davis, meet the criteria for proved reserve volumes in keeping with the directives of the Securities and Exchange Commission as detailed in the report. A copy of the report is available for free at: http://is.gd/EHhVBR The Company gave a presentation to members of the investment community beginning on or around Oct. 21, 2015. A copy of the Presentation is available at http://is.gd/IUI4uY About Hydrocarb Energy Hydrocarb Energy, formerly known as Duma Energy Corp, is a publicly-traded Domestic and International energy exploration and production company targeting major under-explored oil and gas projects in emerging, highly prospective regions of the world. With exploration concessions in Africa, production in Galveston Bay and Oil Field Services in the United Arab Emirates, the Company maintain offices in Houston, Texas, Abu Dhabi, UAE and Windhoek, Namibia. Hydrocarb Energy reported a net loss of $6.55 million on $5.06 million of revenues for the year ended July 31, 2014, compared to a net loss of $37.5 million on $7.07 million of revenues for the year ended July 31, 2013. As of April 30, 2015, the Company had $27.6 million in total assets, $24.2 million in total liabilities and $3.4 million in total equity. "A decline in the price of our common stock could result in a reduction in the liquidity of our common stock and a reduction in our ability to raise additional capital for our operations. Because our operations to date have been largely financed through the sale of equity securities, a decline in the price of our common stock could have an adverse effect upon our liquidity and our continued operations. A reduction in our ability to raise equity capital in the future could have a material adverse effect upon our business plan and operations, including our ability to continue our current operations," the Company stated in its annual report for the year ended July 31, 2014. INVENTIV HEALTH: Q3 Conference Call Set for Nov. 16 --------------------------------------------------- inVentiv Health, Inc., will hold a conference call at 3:00 p.m. Eastern Time on Nov. 16, 2015, during which it will discuss the Company's financial results for the third quarter of 2015. The U.S. dial-in for the call is (866) 953-6858 ((617) 399-3482 for non-U.S. callers) and the passcode is 67738076. A replay of the conference call will be available until Nov. 23, 2015, by dialing (888) 286-8010 ((617) 801-6888 for non-U.S. callers) and the passcode is 84897798. About inVentiv Health inVentiv Health, Inc., is privately owned by inVentiv Group Holdings, Inc., an organization sponsored by affiliates of Thomas H. Lee Partners, L.P., Liberty Lane Partners and members of the inVentiv Health management team. inVentiv Health is a top-tier professional services organization that accelerates the clinical and commercial success of biopharmaceutical companies worldwide. The Company's combined Clinical Research Organization and Contract Commercial Organization helps clients improve their performance to deliver much-needed therapies to market. With 13,000 employees providing services to clients in 70 countries, inVentiv Health designs best practices, processes and systems to enable clients to successfully navigate an increasingly complex environment. - See more at: http://www.inventivhealth.com/our-company/investors#sthash.Oi040G6G.dpuf As of June 30, 2015, the Company had $2.1 billion in total assets, $2.8 billion in total liabilities and a stockholders' deficit of $689.9 million. * * * As reported by the TCR on May 22, 2015, Moody's Investors Service affirmed the Caa1 Corporate Family Rating and Caa1-PD Probability of Default Rating of inVentiv Health, Inc. as well as all of the instrument ratings. The Caa1 rating reflects inVentiv's very high leverage, history of negative free cash flow and significant interest burden which will make a default event likely if the company does not significantly improve its EBITDA performance well ahead of 2018, when all of the company's debt matures. The TCR reported on Dec. 12, 2012, that Standard & Poor's Ratings Services affirmed its 'B-' corporate credit rating on Burlington, Mass.-based contract research organization (CRO) inVentiv Health Inc. J & S PROPERTIES: Court Dismisses Tenant's Suit vs. Ch. 7 Trustee ----------------------------------------------------------------- Judge Jefferey A. Deller of the United States Bankruptcy Court for the Western District of Pennsylvania found that Lisa M. Swope, Chapter 7 Trustee for J&S Properties, LLC, is protected by the doctrine of immunity and dismissal of the complaint filed by Phoenician Mediterranean Villa, LLC, is appropriate under the facts and circumstances of the case. Phoenician commenced an adversary proceeding, alleging that the Chapter 7 Trustee, acting in concert with J & S and its principal, James Focht, wrongfully evicted Phoenician from its leasehold located at 1302-08 Logan Boulevard, in Altoona, Pennsylvania. On April 7, 2015, Swope filed her Motion to Dismiss Complaint Against Trustee, seeking to have the Complaint dismissed on the grounds of quasi-judicial immunity. Judge Deller concluded that Swope acted as a reasonable Chapter 7 trustee would act under the circumstances, and she is protected against suit by qualified immunity. The judge found that Swope acted in furtherance of her statutory duty to administer and preserve the estate and did not violate any fiduciary duty owing to a beneficiary of the estate. Judge Deller also did not find evidence that Swope acted with malice or ulterior motive. The case is IN RE: J & S PROPERTIES, LLC, Chapter 7, Debtor. PHOENICIAN MEDITERRANEAN VILLA, LLC, Plaintiff, v. LISA M. SWOPE, TRUSTEE OF THE BANKRUPTCY ESTATE OF J & S PROPERTIES, LLC, JAMES FOCHT, and J & S PROPERTIES, LLC, Defendants, BANKRUPTCY NO. 13-70512-JAD, ADVERSARY NO. 14-07004-JAD (Bankr. W.D. Pa.). A full-text copy of Judge Deller's October 5, 2015 memorandum opinion is available at http://is.gd/Gve85ifrom Leagle.com. Phoenician Mediterranean Villa, LLC is represented by: Mary Bower Sheats, Esq. FRANK, GALE, BAILS, MURCKO & POCRASS, P.C. The Gulf Tower 707 Grant Street, Suite 3300 Pittsburgh, PA 15219 Tel: (412) 471-3000 Fax: (412) 471-7351 James Focht is represented by: James R. Huff II, Esq. SULLIVAN FORR STOKAN & HUFF 1701 Fifth Avenue Altoona, PA 16602 Tel: ((814) 946-4316 Fax: (814) 946-9426 LB STEEL LLC: Has Interim OK to Use MB Financial's Cash Collateral ------------------------------------------------------------------ LB Steel, LLC, sought and obtained the Bankruptcy Court's permission to use cash collateral of MB Financial Bank, N.A. through Oct. 30, 2015, to pay operating expenses of the Debtor's business, including its employees, postpetition vendors, insurance, taxes and bankruptcy-related expenses. The Debtor said it will need the Cash Collateral to operate as a going concern until it completes a sale of substantially all of its assets or confirms a plan of reorganization. "Absent the use of cash collateral, the Debtor will be forced to close its business, in which case its assets and its bankruptcy estate will be irreparably harmed to the detriment of the Debtor and all of its creditors, and will result in significant job losses," Daniel A. Zazove, Esq., at Perkins Coie LLP, counsel to the Debtor, told the Court. The Debtor obtained two loans from MB Financial Bank in June, 2014: (a) a $2,400,000 term loan maturing on June 15, 2018; and (b) a $15,000,000 revolving loan. As partial adequate protection for the use of Cash Collateral during the Interim Period, the Debtor will continue operating its business and using Cash Collateral to pay operating expenses. As additional adequate protection, the Lender is granted valid, binding, enforceable, and duly perfected security interests in and liens in the Debtor's post-petition assets, with such replacement liens having the same validity, extent and priority as the Lender's prepetition liens and security interests immediately preceding the Petition Date. A continued interim hearing on the Debtor's use of the Lender's Cash Collateral will be held on Oct. 27, 2015, at 10:30 a.m. A copy of the Interim Cash Collateral Order is available at: http://bankrupt.com/misc/35_LBSTEEL_InterimOrdCashcoll.pdf About LB Steel LB Steel, LLC, provider of outsourced machining, fabrication, burning, and assembly services, sought Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 15-35358) on Oct. 18, 2015. Michael Goich signed the petition as president. The Debtor estimated assets in the range of $10 million to $50 million and debts of more than $50 million. The Debtor has engaged Perkins Coie LLP as counsel. Judge Janet S. Baer is assigned to the case. LB STEEL LLC: Seeks 30-Day Extension for Filing Schedules --------------------------------------------------------- LB Steel, LLC, requests a 30-day extension of the time to file its schedules of assets and liabilities, statement of financial affairs and statement of executory contracts and unexpired leases. Pursuant to Section 521 of the Bankruptcy Code and Rule 1007 of the Federal Rules of Bankruptcy Procedure, a debtor is required to file the Schedules and Statements within 14 days from the date of filing its chapter 11 petition. The Debtor believes that the 14-day deadline will be insufficient. "In preparing to file this Chapter 11 Case, the Debtor's principals have been actively engaged in preparations to conduct a sale of the Debtor's business pursuant to Section 363 of the Bankruptcy Code," says Daniel A. Zazove, Esq., at Perkins Coie LLP, counsel to the Debtor. As a result, the Debtor's principals and counsel have not had an opportunity to gather all of the information necessary to prepare and file the Debtor's Schedules and Statements, he adds. Although the Debtor did not file the Schedules and Statement on the Petition Date, annexed to the Debtor's chapter 11 petition is a list of 20 largest unsecured creditors. In addition, the Debtor submitted a list of all of its known creditors to the Court. About LB Steel LB Steel, LLC, provider of outsourced machining, fabrication, burning, and assembly services, sought Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 15-35358) on Oct. 18, 2015. Michael Goich signed the petition as president. The Debtor estimated assets in the range of $10 million to $50 million and debts of more than $50 million. The Debtor has engaged Perkins Coie LLP as counsel. Judge Janet S. Baer is assigned to the case. LEHMAN BROTHERS: Appeals Ruling on U.S.-U.K. Tax Treaty ------------------------------------------------------- Caroline Simson at Bankruptcy Law360 reported that Lehman Brothers Holdings Inc. told the Second Circuit on Oct. 16, 2015, that a federal judge who denied its bankruptcy administrators $67 million in foreign tax credits incorrectly interpreted a treaty with the U.K., saying stock loan transaction payments from Lehman's U.K. wing can't be considered dividends for U.S. tax purposes. The long-bankrupt investment bank is asking the appeals court to reverse U.S. District Judge Richard M. Berman's May ruling that it cannot offset U.S. tax payments on its 1999 and 2000 returns based on U.K. levies. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. * * * In October 2015, Lehman made its eighth distribution to creditors, bringing Lehman's total distributions to unsecured creditors to approximately $105.4 billion including (1) $77.2 billion of payments on account of third-party claims, which includes non-controlled affiliate claims and (2) $28.2 billion of payments among the Lehman Debtors and their controlled affiliates. As of September 2015, the trustee in charge of LBI has returned around $7.65 billion to the defunct brokerage's unsecured creditors, a recovery of about 35 cents on the dollar. LG BENEDICT CANYON: Case Summary & Largest Unsecured Creditor ------------------------------------------------------------- Debtor: LG Benedict Canyon, LLC 3123 N. Hancock Avenue Colorado Springs, CO 80907 Case No.: 15-26244 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: October 22, 2015 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Hon. Julia W. Brand Debtor's Counsel: Stephen R Wade, Esq. THE LAW OFFICES OF STEPHEN R WADE 350 W Fourth St Claremont, CA 91711 Tel: 909-985-6500 Fax: 909-399-9900 Email: srw@srwadelaw.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Andrea Trout, vice president of The Legacy Group Inc., managing member. The Debtor listed Hallmark Communities 401k as its largest unsecured creditor holding a claim of $1,500,000. A copy of the petition is available for free at: http://bankrupt.com/misc/cacb15-26244.pdf MARINA BIOTECH: Stockholders Elect 5 Directors ---------------------------------------------- At the 2015 annual meeting of stockholders of Marina Biotech, Inc. held on Oct. 16, 2015, the stockholders elected Michael French, Stefan Loren, Ph.D., Joseph W. Ramelli, Philip C. Ranker and Donald A. Williams as directors, each to serve until the 2016 Annual Meeting of Stockholders. The Company's stockholders also ratified the appointment by the Company of Wolf & Company, P.C. as independent registered public accounting firm for the fiscal year ending Dec. 31, 2015, and approved, in a non-binding advisory vote, the compensation of the Company's named executive officers. About Marina Biotech Marina Biotech, Inc., headquartered in Bothell, Washington, is a biotechnology company focused on the discovery, development and commercialization of nucleic acid-based therapies utilizing gene silencing approaches such as RNA interference ("RNAi") and blocking messenger RNA ("mRNA") translation. The Company's goal is to improve human health through the development, either through its own efforts or those of its collaboration partners and licensees, of these nucleic acid-based therapeutics as well as the delivery technologies that together provide superior treatment options for patients. The Company has multiple proprietary technologies integrated into a broad nucleic acid-based drug discovery platform, with the capability to deliver novel nucleic acid-based therapeutics via systemic, local and oral administration to target a wide range of human diseases, based on the unique characteristics of the cells and organs involved in each disease. On June 1, 2012, the Company announced that, due to its financial condition, it had implemented a furlough of approximately 90% of its employees and ceased substantially all day-to-day operations. Since that time substantially all of the furloughed employees have been terminated. As of Sept. 30, 2012, the Company had approximately 11 remaining employees, including all of its executive officers, all of whom are either furloughed or working on reduced salary. As a result, since June 1, 2012, its internal research and development efforts have been minimal, pending receipt of adequate funding. Marina Biotech reported a net loss of $6.47 million on $500,000 of license and other revenue for the year ended Dec. 31, 2014, compared to a net loss of $1.57 million on $2.11 million of license and other revenue in 2013. As of June 30, 2015, the Company had $7.5 million in total assets, $10 million in total liabilities and a $2.5 million total stockholders' deficit. Wolf & Company, P.C., in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing the Company has suffered recurring losses from operations, has a significant accumulated deficit and has been unable to raise sufficient capital to fund its operations through the end of 2015. This raises substantial doubt about the Company's ability to continue as a going concern, the auditors noted. MF GLOBAL: Execs Ask for Errors and Omissions Coverage Extension ---------------------------------------------------------------- Steven Trader at Bankruptcy Law360 reported that executives of bankrupt MF Global Inc. on Oct. 18, 2015, once again asked a New York bankruptcy judge for access to what remains of $7.5 million worth of errors and omissions insurance coverage as the legal bills for lawsuits connected to their involvement in the company's downfall continue to mount. In a letter to U.S. Bankruptcy Judge Martin Glenn, the individual insureds of the company -- including former New Jersey Gov. Jon Corzine, who was the company's CEO -- asked the court to revisit its December decision. About MF Global New York-based MF Global -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058), after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. On Nov. 7, 2011, the United States Trustee appointed the statutory creditors' committee in the Debtors' cases. At the behest of the Statutory Creditor's Committee, the Court directed the U.S. Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy Court entered an order approving the appointment of Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC, as Chapter 11 trustee. On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On Dec. 27, the Court entered an order installing Mr. Freeh as Chapter 11 Trustee of the New Debtors. On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr. Freeh also was installed as its Chapter 11 Trustee. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. The Official Committee of Unsecured Creditors has retained Capstone Advisory Group LLC as financial advisor, while lawyers at Proskauer Rose LLP serve as counsel. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. In April 2013, the Bankruptcy Court approved MF Global Holdings' plan to liquidate its assets. Bloomberg News reported that the court-approved disclosure statement initially told creditors with $1.134 billion in unsecured claims against the parent holding company why they could expect a recovery of 13.4% to 39.1% from the plan. As a consequence of a settlement with JPMorgan, supplemental materials informed unsecured creditors their recovery was reduced to the range of 11.4% to 34.4%. Bank lenders will have the same recovery on their $1.174 billion claim against the holding company. As a consequence of the settlement, the predicted recovery became 18% to 41.5% for holders of $1.19 billion in unsecured claims against the finance subsidiary, one of the companies under the umbrella of the holding company trustee. Previously, the predicted recovery was 14.7% to 34% on bank lenders' claims against the finance subsidiary. N-VIRO INTERNATIONAL: Joseph Scheib Quits as Director ----------------------------------------------------- Joseph H. Scheib, a member of N-Viro International Corporation's Board of Directors, submitted his resignation to the Board effective after the conclusion of a regular board meeting and ceased to be a director of the Company. His resignation was not the result of any dispute or disagreement with the Company, according to a regulatory filing with the Securities and Exchange Commission. Mr. Scheib was a Class I director and was the Chairman of the Audit and Nominating Committees as well as a member of the Finance Committee. Mr. Scheib had served as a director since November 2004. As of Oct. 22, 2015, the Company has not nominated his replacement to the Board. After this resignation, the Board consists of five Directors -- two Class I and three Class II Directors. About N-Viro International Toledo, Ohio-based N-Viro International Corporation owns and sometimes licenses various N-Viro processes and patented technologies to treat and recycle wastewater and other bio-organic wastes, utilizing certain alkaline and mineral by-products produced by the cement, lime, electrical generation and other industries. N-Viro International reported a net loss of $1.76 million on $1.33 million of revenues for the year ended Dec. 31, 2014, compared to a net loss of $1.64 million on $3.37 million of revenues for the year ended Dec. 31, 2013. As of June 30, 2015, the Company had $1.42 million in total assets, $2.26 million in total liabilities and a total stockholders' deficit of $835,948. UHY LLP, in Farmington Hills, Michigan, 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 cash flow from operations and net working capital deficiency raise substantial doubt about its ability to continue as a going concern. NATIONAL CINEMEDIA: Signs Separation Agreement with CEO Kurt Hall ----------------------------------------------------------------- National CineMedia, Inc., entered into a separation agreement and a consulting agreement with Kurt C. Hall and, amended his current 10b5-1 plan. As noted in National CineMedia, Inc.'s Form 8-K filed on Aug. 7, 2015, Mr. Hall, president, chief executive officer, chairman of the Board and a director of the Company will resign from all positions he holds at the Company and National CineMedia, LLC once a new CEO is hired. Mr. Hall will continue in all of his current roles until a successor chief executive Officer is named. Mr. Hall's decision to resign was not a result of any disagreement with the Company on any matters relating to the Company's operations, policies or practices. On Aug. 6, 2015, the Company announced that it would initiate its Chairman and chief executive officer succession plan. The Company has retained executive search firm Heidrick & Struggles to initiate a search for a new chief executive officer. Upon the appointment of a new chief executive officer, Scott N. Schneider, currently the Company's lead director, will succeed Mr. Hall as Chairman. Mr. Hall will continue in a consulting role as an advisor to the Board and successor CEO through Jan. 31, 2018, or a twenty-four month period if such period is after Jan. 31, 2018, to facilitate a seamless transition and consult on other business matters. Separation and General Release Agreements The Separation Agreement provides that on the start date of his CEO successor, Mr. Hall will resign from all offices, positions, directorships, chairmanships and fiduciary responsibilities of the Company and NCM LLC. Upon such resignation, Mr. Hall will be entitled to a cash severance of $2,388,126, which is equal to two times Mr. Hall's 2015 base salary plus his 2015 target bonus, less any required taxes, deductions or withholdings. Mr. Hall will also be entitled to a bonus payment equal to Mr. Hall's actual bonus for 2015, including a stretch bonus (if applicable), which will be calculated as if Mr. Hall had been employed for all of 2015. If Mr. Hall's resignation takes effect in 2016, the Company will continue to pay Mr. Hall his base salary at the 2015 rate through his resignation date and Mr. Hall will also be entitled to a target bonus, including a stretch bonus (if applicable), prorated by the number of days in 2016 Mr. Hall is employed by the Company as president, CEO, Chairman of the Board and Director, less any required taxes, deductions or withholdings. Within 30 days of his resignation date, the Company will pay Mr. Hall an amount that reflects the post-tax amount that the Company would have paid (i) to the providers of the Company's current medical, health and life insurance plans in respect of Mr. Hall's coverage and (ii) on his behalf to the Company 401(k) plan for the 24 month period immediately following his resignation date. Consulting Agreement On Oct. 18, 2015, the Company also entered into a Consulting Agreement with Mr. Hall, pursuant to which Mr. Hall will, as directed by the Board or the successor chief executive officer, provide transitional services for a period of the later of twenty-four months commencing on the date of Mr. Hall's resignation or Jan. 31, 2018. In exchange for these services, in addition to the consideration provided in the Separation Agreement, Mr. Hall will receive a monthly consulting fee equal to $41,677 for the first twelve months of his consultancy and $25,000 for the second twelve months of his consultancy; provided, that if the term of the Consulting Agreement is for 25 months, the monthly fee for the final 13 months shall be $23,077. Mr. Hall will also be entitled to reimbursement for his reasonable, documented out-of-pocket business expenses incurred in connection with the services to be provided by him under his Consulting Agreement. Under the Consulting Agreement, Mr. Hall's incentive awards will continue to vest during the consulting period in accordance with their terms and conditions under the Company's 2007 Equity Incentive Plan. However, the Company's Compensation Committee and the Board will amend Mr. Hall's equity grants as follows: (i) 37.5% of Mr. Hall's 2013 performance-based awards will be converted to time-based awards and will vest on Jan. 16, 2016; (ii) 100% of Mr. Hall's 2014 and 2015 performance-based awards will be converted to time-based awards and will vest in 1/3 increments on each of the first three anniversaries of the applicable original grant date (resulting in 67% of Mr. Hall's total original 2014 restricted share performance-based award grant being vested on Jan. 15, 2016, and 33% of Mr. Hall's total original 2015 restricted share performance-based award grant being vested on Jan. 21, 2016); and (iii) Mr. Hall will be permitted to exercise any vested stock options granted in 2006, 2010, 2011 and 2012 through their expiration date, irrespective of Mr. Hall's status as a director, officer or consultant of the Company. Additionally, the Compensation Committee and the Board will amend the terms of Mr. Hall's incentive awards to provide that Mr. Hall's resignation shall not be considered a termination of service under such incentive awards and, therefore, his unvested incentive awards shall continue to vest under the terms and conditions of the Company's 2007 Equity Incentive Plan as if Mr. Hall were as a Service Provider thereunder. "Service Provider" means an employee, officer or director of the Company or an affiliate of the Company, or a consultant or adviser currently providing services to the Company or an affiliate of the Company. Pursuant to the Consulting Agreement, Mr. Hall is also subject to customary non-competition, non-solicitation and non-disparagement restrictions for the term of the Consulting Agreement and for one year following the expiration or termination of the Consulting Agreement. During the Non-Compete Period, Mr. Hall will be prohibited from, among other things, directly or indirectly, working for, providing services to or serving as a director of a company that provides cinema advertising services in the United States or any affiliate of such company. The Consulting Agreement also includes a general release in favor of the Company. As consideration for such release, Mr. Hall will receive a payment of $25,000. Stock Trading Plan On Aug. 15, 2015, Mr. Hall, amended his pre-arranged stock trading plan that would have expired on Dec. 31, 2015, and replaced it with a new stock trading plan. The New Plan that is effective Nov. 16, 2015, through Dec. 30, 2016, will allow Mr. Hall to sell shares of the Company's common stock for personal financial management purposes in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and the Company's insider trading policies regarding stock transactions. Consistent with Mr. Hall's previous selling plan, the new Plan provides for the sale of up to 125,000 shares, provided certain new limit prices set forth in the Plan (and shown below) are met. The total number of shares covered by the Plan represents approximately 29% of the Company shares held by Mr. Hall in brokerage accounts and approximately 7% of the shares currently held by Mr. Hall in brokerage accounts plus those shares that could vest or be exercised in the future, comprised of Mr. Hall's unvested restricted shares and vested stock options. About National CineMedia National CineMedia, Inc., is the holding company of National CineMedia, LLC. NCM LLC operates the largest digital in-theatre network in North America, allowing NCM to distribute advertising, Fathom entertainment programming events and corporate events under long-term exhibitor services agreements with American Multi-Cinema Inc., a wholly owned subsidiary of AMC Entertainment Inc.; Regal Cinemas, Inc., a wholly owned subsidiary of Regal Entertainment Group; and Cinemark USA, Inc., a wholly owned subsidiary of Cinemark Holdings, Inc. NCM LLC also provides such services to certain third-party theater circuits under "network affiliate" agreements, which expire at various dates. As of July 2, 2015, the Company had $1 billion in total assets, $1.2 billion in total liabilities and a $221.6 million total deficit. * * * As reported by the TCR on March 24, 2011, Standard & Poor's Ratings Services raised its corporate credit ratings on Centennial, Colorado-based National CineMedia Inc. and operating subsidiary National CineMedia LLC (which S&P analyzes on a consolidated basis) to 'BB-' from 'B+'. "The 'BB-' corporate credit rating reflects S&P's expectation that NCM's EBITDA growth will enable the company to continue to de-lever over the intermediate term despite its aggressive dividend policy," said Standard & Poor's credit analyst Jeanne Shoesmith. OSAGE EXPLORATION: Suspending Filing of Reports with SEC -------------------------------------------------------- Osage Exploration and Development, Inc., has suspended its reporting obligations under Section 15(d) of the Securities Exchange Act of 1934, as amended, by filing a Form 15 with the Securities and Exchange Commission on Oct. 23, 2015. About Osage Exploration Based in San Diego, California with production offices in Oklahoma City, Oklahoma, and executive offices in Bogota, Colombia, Osage Exploration and Development, Inc. (OTC BB: OEDV) -- http://www.osageexploration.com/-- is an independent exploration and production company with interests in oil and gas wells and prospects in the US and Colombia. The Company incurred a net loss of $34.5 million on $12.7 million of total operating revenues for the year ended Dec. 31, 2014, compared with net income of $3.85 million on $8.02 million of total operating revenues for the year ended Dec. 31, 2013. Mayer Hoffman McCann P.C., in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred recurring losses from operations and, as of Dec. 31, 2014, has current liabilities significantly in excess of current assets. These conditions, among others, raise substantial doubt about its ability to continue as a going concern, the auditors said. As of June 30, 2015, the Company had $25.07 million in total assets, $39.72 million in total liabilities and a stockholders' deficit of $14.64 million. Bankruptcy Warning "The Company's operating plans require additional funds which may take the form of debt or equity financings. The Company's ability to continue as a going concern is dependent upon achieving profitable operations and obtaining additional financing. Our cash flows and results of operations depend to a great extent on the prevailing prices for oil and gas. Prolonged or substantial declines in oil / and/or gas prices may materially and adversely affect our liquidity, the amount of cash flows we have available for our capital expenditures and other operating expenses, our ability to access credit and capital markets and our results of operations. There is no assurance additional funds will be available on acceptable terms or at all. In the event the Company is unable to continue as a going concern, management may elect or be required to seek protection from creditors by filing a voluntary petition in bankruptcy or may be subject to an involuntary petition in bankruptcy," the Company said in its quarterly report for the period ended June 30, 2015. PATRIOT COAL: Sues Parent Over $145M Retiree Payment Obligations ---------------------------------------------------------------- Jonathan Randles at Bankruptcy Law360 reported that Patriot Coal and its union filed a lawsuit on Oct. 18, 2015, in Virginia bankruptcy court that accuses its former parent company, Peabody Energy Corp., of attempting to skirt approximately $145 million in retiree payment obligations. The lawsuit seeks a judgment that Peabody must make two $75 million payments in 2016 and 2017 to satisfy its obligations to retirees under a collective bargaining agreement with the United Mine Workers of America. The retiree payments played a substantial role in Patriot Coal's previous bankruptcy in 2012. 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. * * * Patriot Coal on Sept. 22, 2015, announced that, following a competitive auction, it is proceeding with a transaction to sell a substantial majority of its operating assets to Blackhawk Mining, LLC. PERFORMANCE SPORTS: S&P Lowers CCR to 'B', Outlook Stable --------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Exeter, N.H.-based Performance Sports Group Ltd. to 'B' from 'B+'. The outlook is stable. At the same time, S&P also lowered the issue-level rating on PSG's $450 million term loan due 2021 to 'B' from 'B+'. The recovery rating remains unchanged at '3', indicating S&P's anticipation of meaningful (50% to 70%) recovery in the event of a payment default. S&P's recovery expectations are in the upper half of the 50% to 70% range. "The downgrade reflects our expectation that credit metrics will remain weak given our lower forecast for operating performance," said Standard & Poor's credit analyst Beverly Correa. "We revised our forecast downward as we believe that reported revenue growth and margins will continue to be pressured by the strong U.S. dollar relative to the Canadian dollar." S&P's ratings on PSG reflects the company's weak credit metrics, narrow business focus, its high amount of discretionary products, and its small size relative to competitors. S&P has also factored into its rating the company's global reach and leading market positions in the highly competitive and fragmented performance sports equipment industry. S&P forecasts that currency headwinds and product mix -- particularly in the hockey segment, and product mix in the baseball segment -- will hurt fiscal 2016 performance and cause margin erosion. S&P expects margins to be up in fiscal 2017 as the company benefits from management's cost-savings program, market share gains, and a smaller impact from foreign exchange. POINT BLANK: Equity Committee Has Limited Objection to Plan ----------------------------------------------------------- BankruptcyData reported that Point Blank Solutions' official committee of equity security holders filed with the U.S. Bankruptcy Court a limited objection to the Company's Plan. The Equity Committee asserts, "The Equity Committee reviewed the Recovery Trust Agreement and Amended by Laws and provided comments and proposed changes to the terms thereof to both the Debtors and the UCC. Upon belief, those changes have yet to be approved by either the Debtors or UCC. The Debtors agreed to extend the Equity Committee's deadline to object to the Plan until Oct. 19, 2015. No further extensions have been granted, and thus, the limited objection is filed to allow the Equity Committee, if necessary, to raise the objections with the Bankruptcy Court at the confirmation hearing.... The proposed changes are not controversial, instead merely ensuring that the Recovery Trust retains standing to be heard on issues greatly affecting distributions to its constituents, that assets and claims are properly administered at the correct entity, and that proper oversight and control is maintained throughout the process. The Equity Committee will continue to engage the Debtors and UCC regarding these proposed changes. However, should agreement not be reached, the Equity Committee will request that the Bankruptcy Court hear it at confirmation with respect to the proposed modifications, and if necessary, deny confirmation of the Plan." About Point Blank Headquartered in Pompano Beach, Florida, Point Blank Solutions, Inc. -- http://www.pointblanksolutionsinc.com/-- designs and produces body armor systems for the U.S. Military, Government and law enforcement agencies, as well as select international markets. The Company maintains facilities in Pompano Beach, Florida, and Jacksboro, Tennessee. The Company's former chief executive officer and chief operating officer were convicted in September 2010 of orchestrating a $185 million fraud. Point Blank Solutions, formerly DHB Industries, filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-11255) on April 14, 2010. Laura Davis Jones, Esq., Alan J. Kornfeld, Esq., David M. Bertenthal, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as bankruptcy counsel to the Debtor. Olshan Grundman Frome Rosenweig & Wolosky LLP serves as corporate counsel. Epiq Bankruptcy Solutions serves as claims and notice agent. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Equity Security Holders in the case. Ian Connor Bifferato, Esq., and Thomas F. Driscoll III, Esq., at Bifferato LLC; and Carmen H. Lonstein, Esq., Andrew P.R. McDermott, Esq., and Lawrence P. Vonckx, Esq., at Baker & McKenzie LLP, serve as counsel for the Official Committee of Equity Security Holders. Robert M. Hirsh, Esq., and George P. Angelich, Esq., at Arent Fox LLP, serve as counsel to the Creditors Committee, and Frederick B. Rosner, Esq., and Brian L. Arban, Esq., at the Rosner Law Group LLC, serve as co-counsel. In October 2011, the Debtors sold substantially all assets to Point Blank Enterprises, Inc. The lead debtor changed its name to SS Body Armor I, Inc., following the sale. PORTER BANCORP: Glenn Hogan Reports 11% Stake as of March 2 ----------------------------------------------------------- In a Schedule 13G filed with the Securities and Exchange Commission, Glenn W. Hogan disclosed that as of March 2, 2015, he beneficially owns 2,224,379 common shares of Porter Bancorp, Inc., representing 11.1 percent of the shares outstanding. A copy of the regulatory filing is available at http://is.gd/ieVR3h About Porter Bancorp Porter Bancorp, Inc., is a bank holding company headquartered in Louisville, Kentucky. Through its wholly-owned subsidiary PBI Bank, the Company operates 18 full-service banking offices in 12 counties in Kentucky. Porter Bancorp reported a net loss of $11.2 million in 2014, a net loss of $1.58 million in 2013 and a net loss of $32.93 million in 2012. As of June 30, 2015, the Company had $979.3 million in total assets, $949.2 million in total liabilities and $30 million in total stockholders' equity. Crowe Horwath, LLP, in Louisville, Kentucky, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred substantial losses in 2014, 2013 and 2012, largely as a result of asset impairments resulting from the re-evaluation of fair value and ongoing operating expenses related to the high volume of other real estate owned and non-performing loans. In addition, the Company's bank subsidiary is not in compliance with a regulatory enforcement order issued by its primary federal regulator requiring, among other things, increased minimum regulatory capital ratios as well as being involved in various legal proceedings in which the Company disputes material factual allegations against the Company. Additional losses, adverse outcomes from legal proceedings or the continued inability to comply with the regulatory enforcement order may result in additional adverse regulatory action. These events raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. POSITIVEID CORP: To Acquire Thermomedics for $750,000 ----------------------------------------------------- PositiveID Corporation has entered into an agreement to acquire the capital stock of Thermomedics, Inc., which manufactures and markets the FDA-cleared Caregiver non-contact clinical-grade thermometer. This acquisition is a part of PositiveID's overall growth strategy to add revenue-generating, complementary products with significant market penetration potential to its portfolio. PositiveID will continue to look at other opportunities to execute this growth strategy. As consideration, PositiveID will pay the Seller $750,000 in the form of $250,000 in cash and $500,000 in the form of 500 shares of Series J Convertible Preferred Stock of the Buyer, subject to adjustment of $29,000 for Thermomedics' working capital deficit and $25,000 for the legal fees of PositiveID as detailed in the Purchase Agreement. The Caregiver thermometer was developed by the inventors of tympanic thermometry and is the world's first non-contact device with TouchFree technology. Caregiver is a clinical-grade, infrared thermometer for measurement of forehead temperature in adults, children, and infants, without contact. Since there is no skin contact and Caregiver does not require probe cover supplies, it reduces the risk of cross-contamination and saves the healthcare facility the cost of covers (as much as $0.05 to $0.15 per temperature), storage space, as well as waste disposal costs. Due to its ability to provide TouchFree temperatures thereby helping to improve infection control efforts, Caregiver has been utilized recently by both government and commercial customers in the fight against the spread of Ebola. The established distribution and customer channels for Caregiver are expected to provide synergies to PositiveID as it continues the development and testing of its Firefly Dx real-time pathogen detection system and prepares for commercialization. Thermomedics currently has agreements with the world's leading healthcare product distributors. "We believe that once completed, the acquisition of Thermomedics will bring an exciting product and management team to our portfolio as we continue toward commercialization of Firefly Dx," stated William J. Caragol, Chairman and CEO of PositiveID. "Not only will Caregiver provide additional revenue for PositiveID, we believe it will also provide opportunities to fight against the spread of disease, while providing a pathway to customers and delivering proven manufacturing and FDA expertise." The global market for temperature monitoring devices is forecast to reach $1 billion by 2020, with infrared thermometers experiencing the fastest growth driven in part by concerns over the spread of highly infectious diseases like Ebola according to Global Industry Analysts, Inc. A copy of the Stock Purchase Agreement is available for free at: http://is.gd/rrgFNU About PositiveID Delray Beach, Fla.-based PositiveID Corporation has historically developed, marketed and sold RFID systems used for the identification of people in the healthcare market. Beginning in early 2011, the Company has focused its strategy on the growth of its HealthID business, including the continued development of its GlucoChip, its Easy Check breath glucose detection device, its iglucose wireless communication system, and potential strategic acquisition opportunities of businesses that are complementary to its HealthID business. PositiveID reported a net loss attributable to common stockholders of $8.22 million on $945,000 of revenue for the year ended Dec. 31, 2014, compared with a net loss attributable to common stockholders of $13.33 million on $0 of revenue for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $1.41 million in total assets, $11.8 million in total liabilities, and a $10.4 million total stockholders' deficit. Salberg & Company, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014. The accounting firm noted that the Company reported a net loss, and used cash for operating activities of approximately $8.61 million and $2.57 million respectively, in 2014. At Dec. 31, 2014, the Company had a working capital deficiency, stockholders' deficit and accumulated deficit of approximately $8.076 million, $8.45 million and $133 million, respectively. PRECISION OPTICS: Obtains $700,000 From Common Stock Offering ------------------------------------------------------------- Precision Optics Corporation, Inc., on Oct. 19, 2015, entered into agreements with accredited investors for the sale and purchase of 1,044,776 shares of its common stock, $0.01 par value at a purchase price of $0.67 per share. The Company received $700,000 in gross proceeds from the offering. The Company intends to use the net proceeds from this placement for general working capital purposes. In conjunction with the placement, the Company also entered into a registration rights agreement with the investors, whereby the Company is obligated to file a registration statement with the Securities Exchange Commission on or before 90 calendar days after Oct. 19, 2015, to register the resale by the investors of the 1,044,776 shares of its common stock purchased in the placement. In conjunction with the offering, certain anti-dilution provisions of the warrants issued in conjunction with our June 25, 2008, and Sept. 28, 2012, financing transactions were triggered. As a result, the number of existing June 25, 2008 warrants increased from 493,398 to 517,222 and the related exercise price of the warrants decreased from $1.03 to $0.98 per share. Also, as a result of the offering, the number of existing Sept. 28, 2012, warrants increased from 2,189,724 to 2,288,187 and 217,322 to 223,793, respectively, and the related exercise price decreased from $1.11 to $1.06 and from $0.85 to $0.83, respectively. About Precision Optics Headquartered in Gardner, Massachusetts, Precision Optics Corporation, Inc., has been a developer and manufacturer of advanced optical instruments since 1982. The Company designs and produces high-quality micro-optics, medical instruments and other advanced optical systems. The Company's medical instrumentation line includes laparoscopes, arthroscopes and endocouplers and a world-class product line of 3-D endoscopes for use in minimally invasive surgical procedures. Precision Optics reported a net loss of $1.17 million on $3.91 million of revenues for the year ended June 30, 2015, compared to a net loss of $1.16 million on $3.65 million of revenues for the year ended June 30, 2014. As of June 30, 2015, the Company had $2.04 million in total assets, $1.37 million in total liabilities, all current, and $666,888 in total stockholders' equity. Stowe & Degon LLC, in Westborough, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, citing that the Company has suffered recurring net losses and negative cash flows from operations, which raises substantial doubt about its ability to continue as a going concern. RELATIVITY MEDIA: Resolves Objections to $125M Television Biz Sale ------------------------------------------------------------------ Jonathan Randles at Bankruptcy Law360 reported that Relativity Media LLC said on Oct. 19, 2015, that a $125 million sale of the company's unscripted television business to a group of hedge funds has closed after attorneys told a New York bankruptcy judge earlier in the day that objections to the sale related to employment contracts have largely been resolved. The deal, which will see Relativity Chairman and CEO Ryan Kavanaugh maintain control of the reorganized company, is expected to be approved by the bankruptcy court later this week, a company spokesperson said. About Relativity Relativity -- http://relativitymedia.com/-- is a next-generation global media company engaged in multiple aspects of content production and distribution, including movies, television, sports, digital and music. More than just a collection of entertainment-related businesses, Relativity is a content engine with the ability to leverage each of these business units, independently and together, to create content across all mediums, giving consumers what they want, when they want it. Relativity Studios, the Company's largest division, has produced, distributed or structured financing for more than 200 motion pictures, generating more than $17 billion in worldwide box-office revenue and earning 60 Oscar nominations. Relativity's films include Oculus, Safe Haven, Act of Valor, Immortals, Limitless, and The Fighter. Relativity Media LLC and its affiliates sought protection under Chapter 11 of the Bankruptcy Code on July 30, 2015 (Bankr. S.D.N.Y., Case No. 15-11989). The case is assigned to Judge Michael E. Wiles. The Debtors are represented by Craig A. Wolfe, Esq., Malani J. Cademartori, Esq., and Blanka K. Wolfe, Esq., at Sheppard Mullin Richter & Hampton LLP, in New York; and Richard L. Wynne, Esq., Bennett L. Spiegel, Esq., and Lori Sinanyan, Esq., at Jones Day, in New York. Brian Kushner of FTI Consulting, Inc., serves as chief restructuring officer and crisis and turnaround manager. Luke Schaeffer of FTI Consulting, Inc., serves as deputy CRO. Blackstone Advisory Partners L.P. serves as the Debtors' investment banker. The team is led by Timothy Coleman, Senior Managing Director, CJ Brown, Senior Managing Director, Paul Sheaffer, Vice President, and Joseph Goldschmid, Associate. The Debtors' noticing and claims agent is Donlin, Recano & Company, Inc. ROUNDY'S SUPERMARKETS: S&P Cuts Rating on 2021 Term Loan to 'B-' ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its rating on Roundy's Supermarkets Inc.'s term loan due 2021 to 'B-' from 'B' and revised the recovery rating to '3' from '2'. The '3' recovery rating indicates S&P's expectation of a meaningful recovery (at the high end of the 50% to 70% range). The downgrade reflects S&P's current recovery valuation in a hypothetical bankruptcy and emergence scenario, as well as recent weaker operating performance. S&P has valued the company on a going-concern basis using a 5x multiple applied to its projected emergence-level EBITDA of around $110 million by our estimates. S&P believes the recovery prospects for the term loan holders would benefit from a first-priority lien on all tangible and intangible property and assets of the company, including all the capital stock of the parent and its subsidiaries, and a second lien on the collateral securing the asset-backed lending facility. The 'B-' corporate credit rating and stable outlook are unaffected. RATINGS LIST Roundy's Supermarkets Inc. Corporate credit rating B-/Stable/-- Issue Rating Lowered, Recovery Rating Revised To From Roundy's Supermarkets Inc. Senior secured B- B Recovery rating 3H 2L SANTA FE GOLD: Stalking Horse PA with Waterton Global Approved -------------------------------------------------------------- BankruptcyData reported that the U.S. Bankruptcy Court approved Santa Fe Gold's motion for entry of (a) an order (i) authorizing the Debtors' entry into a stalking horse purchase agreement with Waterton Global Value for the sale of the Debtors' properties and related assets; (ii) approving bidding procedures and expense reimbursement of $350,000; (iii) scheduling a hearing to consider approval of the sale of assets; (iv) approving form and manner of notice of the sale and (v) granting related relief and (b) an order (i) approving the sale of the Debtors' assets free and clear of liens, claims, interests and encumbrances; (ii) authorizing the assumption and assignment of certain executory contracts and unexpired leases and (iii) granting related relief. As previously reported, "The Acquired Assets, which are substantially all of the Debtors' assets, are the properties, related mineral rights, and equipment underlying and utilized in the Summit Project (including the copper exploration initiative at the Lordsburg Mill site), the Black Canyon Mica Project, and the Planet MIO Project...." The aggregate consideration will consist of: a credit bid in an amount equivalent to the obligations owed by the Sellers to Buyer under (x) the DIP Facility and (y) the Senior Secured Gold Stream Credit Agreement, dated Dec. 23, 2011, between the Sellers and Waterton Global Value, in its capacity as provider of the Senior Pre-Petition Indebtedness." About Santa Fe Gold Santa Fe Gold Corporation and three affiliated entities, a group of mining and mineral exploration companies headquartered in Lordsburg, New Mexico, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No. 15-11761) on Aug. 26, 2015, to pursue an expedited sale of their assets in order to maximize value for all stakeholders. The case is pending before the Honorable Mary F. Walrath. The cases are being jointly administered for procedural purposes. The Debtor continues to operate its business and manage its properties as a debtor-in-possession. The Debtors tapped Young Conaway Stargatt & Taylor, LLP, as counsel; Canaccord Genuity Group Inc., as financial advisor; and American Legal Claim Services, LLC, as notice, claims, and solicitation agent. Santa Fe Gold disclosed $19.1 million in assets and $29.9 million in debt as of March 31, 2015. SEAL123: Debtor Wants Until Jan. 11, 2016 to Remove Actions ----------------------------------------------------------- Seal123, Inc., and its affiliated debtors ask the U.S. Bankruptcy Court for the District of Delaware to extend the period within which they or the liquidation trust may remove actions through Jan. 11, 2016. The Debtors contend that they are parties to actions currently pending in the courts of certain states and federal district courts, and believe that it is prudent to seek an additional extension of the time to seek removal to protect the rights of the Debtors and their estates and the liquidation trust to remove these actions. The Debtors relate that in recent months, they and their advisors have had to devote a substantial amount of time, energy and resources toward a number of critical matters in these cases. The Debtors further relate that they and their professionals have been focused on prosecuting and obtaining confirmation of their Plan. The Debtors tell the Court that as a result of the foregoing efforts and various others, they have not had sufficient time to review the actions to determine if any should be removed pursuant to Bankruptcy Rule 9027(a). Given the impending dissolution of the Debtors on the effective date of the Plan, the Debtors submit that most, if not all, determinations over whether to remove actions are properly made by the Liquidation Trust. The Debtors' motion is scheduled for hearing on Oct. 30, 2015, at 2:00 p.m. Seal123, Inc. and its affiliated debtors are represented by: Michael R. Nestor, Esq. Margaret Whiteman Greecher, Esq. Travis G. Buchanan, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, DE 19801 Telephone: (302)571-6600 Facsimile: (302)571-1253 E-mail: mnestor@ycst.com mgreecher@ycst.com tbuchanan@ycst.com - and - Lee R. Bogdanoff, Esq. Michael L. Tuchin, Esq. David M. Guess, Esq. Jonathan M. Weiss, Esq. KLEE, TUCHIN, BOGDANOFF & STERN LLP 1999 Avenue of the Stars, 39th Floor Los Angeles, CA 90067 Telephone: (310)407-4022 Facsimile: (310)407-9090 E-mail: lbogdanoff@ktbslaw.com mtuchin@ktbslaw.com dguess@ktbslaw.com jweiss@ktbslaw.com About Seal123, Inc. The Wet Seal, Inc., and three affiliates The Wet Seal Retail, Inc., Wet Seal Catalog, Inc., and Wet Seal GC, LLC, filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 15-10081 to 15-10084) on Jan. 15, 2015. The Debtors are a national multi-channel retailer selling fashion apparel and accessory items designed for female customers aged 13 to 24 years old. The Wet Seal, Inc., disclosed $215,254,952 in assets and $60,598,968 in liabilities as of the Chapter 11 filing. The Hon. Christopher S. Sontchi presides over the jointly administered cases. Maris J. Kandestin, Esq., and Michael R. Nestor, Esq., at Young Conaway Stargatt & Taylor, LLP; Lee R. Bogdanoff, Esq., Michael L. Tuchin, Esq., David M. Guess, Esq., and Jonathan M. Weiss, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP; and Paul Hastings LLP, serve as the Debtors' Chapter 11 counsel. FTI Consulting serves as the Debtors' restructuring advisor. The Debtors' investment banker is Houlihan Lokey. The Debtors tapped Donlin, Recano & Co., Inc., as claims and noticing agent. The petitions were signed by Thomas R. Hillebrandt, interim chief financial officer. B. Riley, the original DIP lender and plan sponsor, is represented by Van C. Durrer, II, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP. Versa Capital Management, LLC, and its affiliate, Mador Lending, LLC, which was selected as the successful bidder at an auction, is being advised by Greenberg Traurig LLP, Klehr Harrison Harvey Branzburg LLP, and KPMG LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors. The Committee retained Pachulski Stang Ziehl & Jones LLP as its counsel and Province Inc. as its financial advisor. The Wet Seal, Inc., changed its name to "Seal123, Inc." on April 17, 2015, in accordance with the Asset Purchase Agreement with Mador Lending, LLC, an affiliate of Versa Capital Management, LLC as buyer. SEANERGY MARITIME: Announces Delivery of Two Vessels ---------------------------------------------------- Seanergy Maritime Holdings Corp. said it took delivery of a 170,057 dwt Capesize dry bulk vessel, which has been renamed to M/V Geniuship, and a 56,884 dwt Supramax dry bulk vessel, which has been renamed to M/V Guardianship. Both the M/V Geniuship, which was built in 2010 by Sungdong SB, and the M/V Guardianship, which was built in 2011 by CSC Jinling Shipyard, will be employed in the spot market. The acquisition cost of the M/V Geniuship and the M/V Guardianship has been funded by senior secured loan agreements with international financial institutions and by a funding arrangement with the Company's sponsor. As previously announced, the M/V Geniuship and the M/V Guardianship are the third and the fourth, respectively, of seven modern secondhand dry bulk vessels that the Company has agreed to acquire for a gross purchase price of approximately $183 million. The acquisition of the remaining three vessels is expected to be completed by Nov. 30, 2015. About Seanergy Athens, Greece-based Seanergy Maritime Holdings Corp. is an international company providing worldwide seaborne transportation of dry bulk commodities. The Company owns and operates a fleet of seven dry bulk vessels that consists of three Handysize, two Supramax and two Panamax vessels. Its fleet carries a variety of dry bulk commodities, including coal, iron ore, and grains, as well as bauxite, phosphate, fertilizer and steel products. Ernst & Young (Hellas) Certified Auditors-Accountants S.A., in Athens, Greece, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that following the disposal of the Company's entire fleet in early 2014 in the context of its restructuring plan, the Company was unable to generate sufficient cash flow to meet its obligations and sustain its continuing operations that raise substantial doubt about the Company's ability to continue as a going concern. The Company disclosed net income of $80.3 million on $2.01 million of net vessel revenue for the year ended Dec. 31, 2014, compared with net income of $10.9 million on $23.1 million of net vessel revenue for the year ended Dec. 31, 2013. As of June 30, 2015, the Company had $19.6 million in total assets, $10.2 million in total liabilities, and $9.42 million in stockholders' equity. SHELLEY FOOD STORES: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Shelley Food Stores, Inc. II dba Shelley's Foodservice 93 Albert Avenue Newark, NJ 07105 Case No.: 15-23535 Chapter 11 Petition Date: October 23, 2015 Court: United States Bankruptcy Court Southern District of New York (White Plains) Judge: Hon. Robert D. Drain Debtor's Counsel: Julie Cvek Curley, Esq. DELBELLO DONNELLAN WEINGARTEN WISE & WIEDERKEHR, LLP One North Lexington Avenue, 11th Floor White Plains, NY 10601 Tel: (914) 681-0200 Fax: (914) 684-0288 Email: jcurley@ddw-law.com - and - Jonathan S. Pasternak, Esq. DELBELLO DONNELLAN WEINGARTEN WISE & WIEDERKEHR, LLP One North Lexington Avenue White Plains, NY 10601 Tel: (914) 681-0200 Fax: (914) 684-0288 Email: jpasternak@ddw-law.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Scott Geller, president. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. SRT SOLUTIONS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: SRT Solutions, LLC 1100 NASA Parkway, Suite 650 Houston, TX 77058 Case No.: 15-35572 Chapter 11 Petition Date: October 22, 2015 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Hon. Letitia Z. Paul Debtor's Counsel: Leonard H. Simon, Esq. PENDERGRAFT & SIMON, LLP The Riviana Building 2777 Allen Parkway, Suite 800 Houston, TX 77019 Tel: 713-737-8207 Fax: 832-202-2810 Email: lsimon@pendergraftsimon.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Josh Bhatia, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb15-35572.pdf STUYVESANT TOWN-PETER: New Owners to Loan $141M to Preserve Unit ---------------------------------------------------------------- Natalie Rodriguez at Bankruptcy Law360 reported that Blackstone and Ivanhoe Cambridge's blockbuster, multibillion-dollar plan to take over Stuyvesant Town-Peter Cooper Village in Manhattan was reportedly a fast-moving transaction that came together in a matter of weeks, but the deal will likely have long-lasting reverberations for a number of players. According to the Associated Press, the new owners of Stuyvesant Town-Peter Cooper Village will get a loan of up to $141 million to help preserve the affordability of the units. In a separate report, Ms. Rodriguez related that Blackstone and Ivanhoe Cambridge, guided by Simpson Thacher & Bartlett LLP and Paul Hastings LLP, respectively, struck a deal on Oct. 19, 2015, to purchase the distressed Stuyvesant Town-Peter Cooper Village apartment complex in Manhattan from Venable LLP and Fried Frank Harris Shriver & Jacobson LLP-advised CWCapital, after inking an affordable housing deal with city officials. Per the announced deal with New York City Mayor Bill de Blasio's administration, the new owners have agreed to preserve the 11,241 unit complex's existing 5,000 units of affordable housing. Stuyvesant Town and Peter Cooper Village is home to more than 30,000 residents. MetLife Inc. built the property in the 1940s with city assistance to house returning World War II veterans. TEMPLE UNIVERSITY: S&P Raises LongTerm Rating From 'BB+' -------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term rating on Philadelphia Hospital & Higher Education Facilities Authority, Pa.'s $515 million series 2012A, 2012B, 2007A, and 2007B bonds issued for Temple University Health System (TUHS) to 'BBB-' from 'BB+'. The outlook is stable. "We raised the rating based on application of the U.S. Not-For-Profit Acute-Care Stand-Alone Hospital criteria published Dec. 15, 2014," said Standard & Poor's credit analyst Cynthia Keller. With this review S&P reclassified TUHS as a stand-alone hospital because TUHS does not meet the revised definition of a health system also published in the U.S. Not-For-Profit Acute-Care Stand-Alone Hospital criteria last year. "We assessed TUHS' enterprise profile as strong characterized by a solid market position in a large service area and a unified management team including a single executive leading TUHS and the Temple University School of Medicine including its related faculty practice plan. Although TUHS is in a large metropolitan market, local demographics are less favorable and the hospital is heavily reliant on Medicaid for almost one-third of its annual net patient service revenue. We assessed TUHS' financial profile as vulnerable with historically sizable operating losses until this year and limited balance sheet flexibility due largely to slim unrestricted reserves although debt levels are moderate. The assessment also reflects TUHS' reliance on disproportionate share and a variety of other special funding sources and while these funding sources have been largely stable and in certain cases have grown, most are dependent on annual budgetary appropriations. Positively effecting TUHS' financial profile is its financial dispersion with about 30% of system revenue derived from outside the flagship and employed physicians. Also contributing to the rating decision is TUHS' close relationship with 'A+' rated Temple University and in turn, the public University's strong relationship with the Commonwealth of Pennsylvania," S&P said. "The rating reflects our view of TUHS' group credit profile and the TUHS Obligated Group's core status. Because the obligated group contains a majority of system revenue and assets, we rate the bonds at the group credit profile level. Securing the bonds is a revenue pledge of the obligated group, which includes Temple University Hospital (TUH), Jeanes Hospital (Jeanes), a majority of the Fox Chase Cancer Center (Fox Chase) affiliates, Temple Physicians, Inc., a patient transport company, and the parent holding company," S&P said. Nonobligated entities include Episcopal Hospital, a captive insurance company, a foundation, and the Temple Center for Population Health. The stable outlook reflects TUHS' healthier financial performance driven largely by improvement at Jeanes and Fox Chase as TUH continues to post profits from operations. TUHS' weak unrestricted reserves, which S&P do not expect to grow in the near term, constrain the current rating. S&P also anticipates that the uncertainty regarding the level of special funding will be an ongoing credit risk. S&P could consider a positive outlook or higher rating during the next two years covered by its outlook period with generally breakeven financial performance sufficient to generate debt service coverage of at least 2.5x and improvement in unrestricted reserves to about 100 days' cash on hand and 1x outstanding debt. Positive action is also predicated on continued stability of special funding revenue. S&P could consider a negative outlook or lower rating if improved operating results are not sustained through the outlook period or if reserves materially decline. In addition, any material change in the relationship with Temple University or special funding sources could be a negative rating factor. Additional debt, while not anticipated beyond a limited amount of capital leases could be a negative rating factor if not accompanied by a commensurate increase in unrestricted reserves. TENET HEALTHCARE: Reaffirms Adjusted EBITDA Outlook for Q3 2015 --------------------------------------------------------------- In light of the extraordinary volatility of its shares in recent days, Tenet Healthcare Corporation is reaffirming its previously announced Adjusted EBITDA Outlook for the third quarter ended Sept. 30, 2015, in the range of $550 million to $600 million. As previously announced, the Company plans to report its results for the third quarter after the market close on Monday, Nov. 2, 2015. The company's financial results are subject to finalization of the company's quarterly financial and accounting procedures. The Company will host a conference call on Tuesday, Nov. 3, 2015, at 10:00 a.m. ET (9:00 a.m. CT) for management to discuss the results. A live audio webcast will be accessible through the Company's Web site at http://www.tenethealth.com/investors About Tenet Tenet Healthcare Corporation -- http://www.tenethealth.com/-- is a national, diversified healthcare services company with 110,000 employees united around a common mission: to help people live happier, healthier lives. The company operates 80 hospitals, 214 outpatient centers, six health plans and Conifer Health Solutions, a leading provider of healthcare business process services in the areas of revenue cycle management, value based care and patient communications. Tenet Healthcare reported net income attributable to the Company's shareholders of $12 million for the year ended Dec. 31, 2014, compared to a net loss attributable to the Company's shareholders of $134 million during the prior year. As of June 30, 2015, Tenet had $22.7 billion in total assets, $20.1 billion in total liabilities, $1.5 billion in redeemable non-controlling interests in equity of consolidated subsidiaries and $1 billion in total equity. * * * Tenet carries a 'B' IDR from Fitch Ratings, 'B' corporate credit rating from Standard & Poor's Ratings Services and 'B1' Corporate Family Rating from Moody's Investors Service. TRANS-LUX CORP: Has Rights Offering of 51,063 Preferred Shares -------------------------------------------------------------- Trans-Lux Corporation is distributing, at no charge, to holders of its common stock non-transferable subscription rights to purchase up to 51,063 shares of its Series B Convertible Preferred Stock, which the Company refers to as the Series B Preferred, at a subscription price of $200.00 per share. The Series B Preferred carries a 6.0% cumulative annual dividend on the Stated Value of $200.00 per share and will be convertible into shares of the Company's common stock at an initial conversion price of $10.00 per share, representing a conversion ratio of 20 shares of common stock for each share of Series B Preferred held at the time of conversion, subject to adjustment. Holders will receive one subscription right for each share of common stock owned at 5:00 p.m., Eastern Time, on Sept. 28, 2015, the record date for the rights offering. Thirty-three subscription rights will entitle holders to purchase one share of the Company's Series B Preferred at a subscription price of $200.00 per whole share, which the Company refers to as the basic subscription right. If all of the basic subscription rights are exercised, the total purchase price of the shares offered in the rights offering would be approximately $10.2 million. The subscription rights may not be sold, transferred or assigned. The subscription rights will expire if they are not exercised before 5:00 p.m., Eastern Time, on Oct. 21, 2015, the expiration date for the rights offering, unless we extend the rights offering period. The Company reserves the option to extend the rights offering and the period for exercising your subscription rights for a period not to exceed 30 days, although the Company does not presently intend to do so. The closing price of the Company's common stock on Sept. 14, 2015, was $3.15. 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. The Company intends to use the net proceeds from the rights offering for the repayment of certain debt and for payment of certain required contributions under our defined benefit pension plan. The Company intends to use the remainder of the net proceeds for general corporate purposes. About 1,685,085 shares of the Company's common stock and no shares of Series B Preferred were issued and outstanding on Sept. 14, 2015. Continental Stock Transfer & Trust Company serves as subscription agent and Morrow & Co., LLC serves as information agent. A copy of the Post-Effective Amendment No. 4 to the the Form S-1 registration statement is available at: http://is.gd/5RCrqI 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 revenue for the year ended Dec. 31, 2014, compared with a net loss of $1.86 million on $20.9 million of total revenue 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. UNITED SUPPORT: Nov. 6 Meeting Set to Form Creditors' Panel ----------------------------------------------------------- Andy Vara, Acting United States Trustee of Region 3, will hold an organizational meeting on Nov. 6, 2015, at 11:00 a.m. in the bankruptcy case of United Support Solutions, Inc. The meeting will be held at: United States Trustee's Office One Newark Center, 1085 Raymond Blvd. 21st Floor, Room 2106 Newark, NJ 07102 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' case. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. VALLEY VIEW DOWNS: Trustee Can't Clawback $16MM from Merit Mngt. ---------------------------------------------------------------- Judge Joan B. Gottschall of the United States District Court for the Northern District of Illinois, Eastern Division, granted the motion for judgment on the pleadings filed by Merit Management Group, LP. In an effort to develop a "racino" and strengthen its chances at securing a racing license, Valley View Downs decided to buy out the competition. On August 14, 2007, Valley View, Bedford Downs Management Corporation, and others entered into a settlement agreement which required Valley View to pay Bedford Downs $55 million in exchange for all of Bedford Down's stock. On September 4, the parties to the settlement agreement entered into an escrow agreement. Because Merit was a 30.07% owner of Bedford Downs, Valley View ultimately transferred $16,503,850 to it. Valley View made the transfers through Credit Suisse and Citizens Bank of Pennsylvania. The Pennsylvania State Harness Racing Commission granted Valley View's application for a harness-racing license. However, Valley View was unable to secure a gaming license. Valley View sought relief under Chapter 11 of the Bankruptcy Code and its Chapter 11 plan was ultimately confirmed by the bankruptcy court. The Centaur, LLC Litigation Trust was created pursuant to the confirmed plan, and FTI Consulting, Inc. was selected as the Litigation Trustee. FTI sued Merit in an attempt to avoid the allegedly fraudulent transfer of $16,503,850 to Merit. Judge Gottschall found that Merit is entitled to Section 546(3)'s safe harbor, which means that the Trustee cannot avoid the transfers. The judge explained that the transfers were "by or to" a financial institution because two financial institutions, Credit Suisse and Citizens Bank, transferred or received funds in connection with a "settlement payment" or "securities contract." The case is FTI CONSULTING, INC., Trustee of the Centaur, LLC Litigation Trust, Plaintiff, v. MERIT MANAGEMENT GROUP, LP., Defendant, CASE NO. 11 C 7670 (N.D. Ill.). A full-text copy of Judge Gottschall's October 2, 2015 memorandum opinion and order is available at http://is.gd/OCdEbdfrom Leagle.com. FTI Consulting, Inc. is represented by: Gregory Scott Schwegmann, Esq. Joshua J. Bruckerhoff, Esq. Paul T. Harle, Esq. REID COLLINS & TSAI LLP 1301 S. Capital of Texas Hwy Building C, Suite 300 Austin, TX 78746 Tel: (512) 647-6100 Fax: (512) 647-6129 Email: gschwegmann@rctlegal.com jbruckerhoff@rctlegal.com pharle@rctlegal.com -- and -- Jason M. Rosenthal, Esq. HONIGMAN MILLER SCHWARTZ AND COHN LLP One South Wacker Drive 28th Floor Chicago, IL 60606-4617 Tel: (312) 701-9300 Email: jrosenthal@honigman.com Merit Management Group, LP is represented by: Jason Jon DeJonker, Esq. Christopher James Harney, Esq. Jeffrey Phillip Swatzell, Esq. Michael Ryan Pinkston, Esq. SEYFARTH SHAW LLP 131 South Dearborn Street Suite 2400 Chicago, IL 60603-5577 Tel: (312) 460-5000 Fax: (312) 460-7000 Email: jdejonker@seyfarth.com charney@seyfarth.com rpinkston@seyfarth.com Indianapolis, Indiana-based Valley View Downs, LP, sought protection under Chapter 11 of the Bankruptcy Code on October 28, 2009 (Bankr. D. Del., Case No. 09-13761). The Debtor's counsel was Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, in Wilmington, Delaware. The petition was signed by Kurt E. Wilson, the company's executive vice president and chief financial officer. VERITEQ CORP: Gets Notice of Disposition of Collateral from Magna ----------------------------------------------------------------- VeriTeQ Corporation and certain institutional and accredited investors entered into a securities purchase agreement dated as of Nov. 13, 2013, pursuant to which the Company issued and sold to the Investors in the aggregate (i) approximately $1.8 million principal amount of senior secured convertible notes, and (ii) warrants to purchase shares of the Company's common stock. In connection with such sale of Senior Notes and Warrants, the Company and certain of its subsidiaries entered into, among other agreements, a security and pledge agreement dated as of Nov. 13, 2013, as amended, in favor of the collateral agent for the holders of the Senior Notes, and certain subsidiaries of the Company entered into a Guaranty dated as of Nov. 13, 2013, as amended, in favor of the collateral agent for the holders of the Senior Notes. The Senior Notes are secured by substantially all of the Company's assets, including, but not limited to, a pledge of the capital stock and assets of all of the Company's subsidiaries, but excluding the assets securing the Company's $3.3 million Non-Negotiable Secured Convertible Subordinated Promissory Notes dated Nov. 28, 2012, issued to SNC Holdings, Corp. The Company is in default on substantially all of its outstanding convertible promissory notes, including, but not limited to, the Senior Notes, the SNC Note and the New Magna Notes, due to its failure to file its quarterly report on Form 10-Q for the quarter ending June 30, 2015, and its failure to repay the approximately $1.0 million of outstanding principal of the Senior Notes, plus interest, at maturity. As of Oct. 19, 2015, the Company had approximately $3.6 million aggregate principal amount of convertible promissory notes, including the Senior Notes and the New Magna Notes, but excluding notes due to related parties and the SNC Note. The Company has been in discussions with Magna Equities I, LLC, the current collateral agent for the Investors. The Company and certain of its subsidiaries entered into a letter agreement with Magna on Oct. 19, 2015, pursuant to which the Company agreed to exchange approximately $1.3 million aggregate principal amount of outstanding unsecured convertible promissory notes held by Magna for an equal principal amount of new convertible promissory notes intended to be pari passu in rank and priority with the Senior Notes. On Oct. 19, 2015, the Company received a default notice from Magna, acting in its capacity as collateral agent under the Security Agreement. Magna is currently the holder of outstanding convertible promissory notes of the Company in the aggregate principal amount of approximately $1.6 million (excluding all accrued but unpaid interest), consisting of approximately $0.3 million of Senior Notes and $1.3 million of New Magna Notes, and has entered into agreements with holders of an additional $500,000 aggregate principal of Senior Notes to acquire such Senior Notes subject to the Company complying with and satisfying certain requirements relating to, among other items, Magna's rights to certain collateral, which as of Oct. 23, 2015, Magna believes the Company has not complied with and satisfied. Upon Magna's determination that the Company has complied with and satisfied such and related conditions, Magna intends to purchase such $500,000 of Senior Notes. The default notice demands repayment of the entire amount due under the Senior Notes (including the $500,000 of Senior Notes Magna has the right to acquire) and the New Magna Notes. The Company does not have the financial resources to repay this indebtedness. The default notice also advises the Company and its subsidiaries that Magna is exercising all of its rights and remedies under the Senior Notes it owns (including the $500,000 of Senior Notes Magna has the right to acquire) and the New Magna Notes and the Security Agreement. In conjunction with this default notice, the Company received from Magna a Notification of Disposition of Collateral. The NDC advises the Company that Magna intends to sell, lease or license the assets securing the Senior Notes and the New Magna Notes at a public auction to take place on Nov. 2, 2015. These assets constitute substantially all of the assets of the Company and its subsidiaries, except for those assets securing the SNC Note. The SNC Note is secured by all of the assets, consisting primarily of intellectual property and certain tangible property and equipment, acquired by the Company under the asset purchase agreement entered into by the Company and SNC Holdings Corp. on Nov. 30, 2012. Under the terms of the SNC Note, as amended, which was due on June 30, 2015, and has not been repaid, the holder of the SNC Note may look solely to the SNC Collateral to satisfy all obligations of the Company to it under the SNC Note and not any other assets of the Company and/or its subsidiaries. The Company has notified the holder of the SNC Note of its intent to return the SNC Collateral to the holder in satisfaction of the SNC Note but has not received any response from the holder. Completion of the proposed public auction by Magna and the return of the SNC Collateral will constitute a disposition of substantially all of the Company's assets. "If the foregoing transactions are successfully completed, and assuming a sale of the collateral equal to or above the total amount owed under the Magna Notes, then the Company believes that it will no longer have any secured indebtedness or Warrants outstanding, and that its outstanding unsecured convertible debt will be approximately $1.5 million, excluding related party indebtedness and accrued interest, all of which is convertible into shares of the Company's common stock," the Company said in a regulatory filing with the Securities and Exchange Commission. "Although the Company currently intends to attempt to acquire, merge or combine with and/or acquire operating assets of an operating business, no assurances can be given that the Company will be able to effect any such transaction or the terms thereof. The Company currently has no agreement, understanding and/or agreement in principal for any such transaction. Moreover, the Company currently has limited funds and no assurances can be given it will be able to raise any additional funds on terms acceptable to the Company, or at all, or that the Company will be able to continue as a going concern." About VeriTeQ VeriTeQ (formerly known as Digital Angel Corporation) develops innovative, proprietary RFID technologies for implantable medical device identification, and dosimeter technologies for use in radiation therapy treatment. VeriTeQ -- http://www.veriteqcorp.com/-- offers the world's first FDA cleared RFID microchip technology that can be used to identify implantable medical devices, in vivo, on demand, at the point of care. VeriTeQ's dosimeters provide patient safety mechanisms while measuring and recording the dose of radiation delivered to a patient in real time. Veriteq reported a net loss of $3.91 million on $151,000 of sales for the year ended Dec. 31, 2014, compared to a net loss of $18.2 million on $18,000 of sales for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $1.66 million in total assets, $9 million in total liabilities, $1.84 million in series D preferred stock, and a $9.18 million total stockholders' deficit. EisnerAmper LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred recurring net losses, and at Dec. 31, 2014, had negative working capital and a stockholders' deficit. These events and conditions raise substantial doubt about the Company's ability to continue as a going concern. VIRGINIA BROADBAND: Allowance of Former CEO's Claims Affirmed ------------------------------------------------------------- Judge Glen E. Conrad of the United States District Court for the Western District of Virginia, Charlottesville Division, affirmed the bankruptcy court's decision allowing three claims filed by Warren Manuel, former chief executive officer and board member of Virginia Broadband, LLC, and denying VABB's request for recharacterization or, in the alternative, equitable subordination of those claims. Mr. Manuel objected to the treatment of his claims in VABB's Second Amendment Plan of Reorganization under Chapter 11, which stated that Manuel "shall receive no payment on his claims or equity in exchange for his claims." In June 2014, VABB filed objections to Manuel's three proofs of claims namely Claims 24, 25 and 26. VABB's disclosure statement further objected to Manuel's treatment as an unsecured creditor, arguing that all of Manuel's claims should be equitably subordinated to the claims of other unsecured creditors, because Manuel caused "wide ranging damage" to VABB constituting a breach of Manuel's fiduciary duty to the company. On November 5, 2014, the bankruptcy court issued an opinion overruling VABB's objections with respect to Claim 24 and Claim 25, overruling in part and sustaining in part VABB's objections to Claim 26, and rejecting VABB's arguments for equitable subordination and recharacterization of Manuel's claims. VABB appealed the bankruptcy court's decision regarding the allowance of Claims 25 and 26, and its decision to not subordinate or recharacterize all three claims. It did not appeal the bankruptcy court's decision regarding the allowance of Claim 24. Judge Conrad found no clear error as to any of the bankruptcy court's factual determinations under Claims 25 and 26. The judge believed that the bankruptcy court's conclusions of law were correct in that VABB failed to rebut the presumed validity of Manuel's claims. Judge Conrad also believed that the bankruptcy court correctly held that VABB did not sustain its burden of showing that equitable subordination was warranted for Manuel's three claims. Finally, Judge Conrad held that the bankruptcy court correctly applied the Dornier Aviation test in determining not to recharacterize Manue's claims as equity. The case is VIRGINIA BROADBAND, LLC, Appellant, v. WARREN MANUEL, Appellee, CIVIL ACTION NO. 3:14-CV-00052 (W.D. Va). A full-text copy of Judge Conrad's September 15, 2015 memorandum opinion is available at http://is.gd/w2xzqcfrom Leagle.com. Virginia Broadband, LLC is represented by: Richard Clifford Maxwell, Esq. WOODS ROGERS PLC 10 South Jefferson Street Suite 1400 Roanoke, VA 24011 Tel: (540) 983-7600 Fax: (540) 983-7711 Email: rmaxwell@woodsrogers.com Warren Manuel is represented by: Ann Elizabeth Schmitt, Esq. CULBERT AND SCHMITT, PLC 30 Catoctin Cir SE, Ste C Leesburg, VA 20175 Tel: (703) 737-6377 About Virginia Broadband Virginia Broadband, LLC, in Culpeper, Virginia, filed for Chapter 11 bankruptcy (Bankr. W.D. Va. Case No. 12-62535) on Nov. 5, 2012, in Lynchburg. Judge William E. Anderson was first assigned to the case. Richard C. Maxwell, Esq. –- rmaxwell@woodsrogers.com -- at Woods Rogers PLC serves as counsel to the Debtor. In its petition, VABB estimated $1 million to $10 million in assets and debts. A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/vawb12-62535.pdf The petition was signed by Robert M. Sullivan, president. WAFERGEN BIO-SYSTEMS: Empery Reports 5.2% Stake as of Oct. 16 ------------------------------------------------------------- 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 Oct. 16, 2015, they beneficially owned 500,000 shares of common stock, 60,000 shares of common stock issuable upon exercise of Warrants with an exercise price of $5.00 and 500,000 shares of common stock issuable upon exercise of Warrants with an exercise price of $1.44, of WaferGen Bio-systems, Inc., representing 5.19 percent of the shares outstanding. A copy of the regulatory filing is available at http://is.gd/3G7GXv About WaferGen Bio-systems Fremont, California-based WaferGen Bio-systems, Inc., engages in the development of systems for gene expression quantification, genotyping and stem cell research. Since 2008, the Company's primary focus has been on the development, manufacture and marketing of its SmartChip System, a genetic analysis platform used for profiling and validating molecular biomarkers in the life sciences and pharmaceutical drug discovery industries. WaferGen Bio-systems reported a net loss of $10.7 million in 2014, a net loss of $16.3 million in 2013 and a net loss of $8.97 million in 2012. As of June 30, 2015, the Company had $13.2 million in total assets, $6.9 million in total liabilities and $6.3 million in total stockholders' equity. WAFERGEN BIO-SYSTEMS: Files Series 2 Certificate of Designation --------------------------------------------------------------- In connection with the closing of an underwritten offering of preferred stock, common stock and warrants, on Oct. 20, 2015, WaferGen Bio-systems, Inc. filed the Certificate of Designation for the Series 2 Convertible Preferred Stock with the Secretary of State of the State of Nevada. The Series 2 Certificate of Designation provides for the issuance of up to 1,108 shares of Series 2 Convertible Preferred Stock. Series 2 Preferred Shares rank on par with the shares of the Company's common stock, in each case, as to dividend rights and distributions of assets upon liquidation, dissolution or winding up of the Company. The Series 2 Certificate of Designation provides, among other things, that the Company shall not pay any dividends on shares of Common Stock (other than dividends in the form of Common Stock) unless and until such time as it pays dividends on each Series 2 Preferred Share on an as-converted basis. Other than as set forth in the previous sentence, the Series 2 Certificate of Designation provides that no other dividends shall be paid on Series 2 Preferred Shares and that the Company shall pay no dividends (other than dividends in the form of Common Stock) on shares of Common Stock unless it simultaneously complies with the previous sentence. With certain exceptions, the Series 2 Preferred Shares have no voting rights. However, as long as any shares of Series 2 Preferred Shares remain outstanding, the Series 2 Certificate of Designation provides that the Company shall not, without the affirmative vote of holders of not less than 67% of the then outstanding Series 2 Preferred Shares, (a) alter or change adversely the powers, preferences or rights given to the Series 2 Preferred Shares or alter or amend the Series 2 Certificate of Designation, (b) increase the number of authorized shares of Series 2 Preferred Shares, (c) effect a stock split or reverse stock split of the Series 2 Preferred Shares or any like event, or (d) enter into any agreement with respect to any of the foregoing. Each Series 2 Preferred Share is convertible at any time at the holder's option into a number of shares of Common Stock equal to $10,000 per share, plus an amount equal to any accrued (whether or not declared) or declared, but unpaid, dividends on such share, divided by the Conversion Price. The "Conversion Price" is initially $1.00, subject to adjustment for stock splits, stock dividends, distributions, subdivisions and combinations. Notwithstanding the foregoing, the Series 2 Certificate of Designation further provides that the Company shall not effect any conversion of Series 2 Preferred Shares, with certain exceptions, to the extent that, after giving effect to an attempted conversion, the holder of Series 2 Preferred Shares (together with such holder's affiliates, and any other person whose beneficial ownership of common stock would be aggregated with the holder's for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, and the applicable regulations thereunder, including any "group" of which the holder is a member) would beneficially own a number of shares of common stock in excess of 9.98% of the shares of Common Stock then outstanding. About WaferGen Bio-systems Fremont, California-based WaferGen Bio-systems, Inc., engages in the development of systems for gene expression quantification, genotyping and stem cell research. Since 2008, the Company's primary focus has been on the development, manufacture and marketing of its SmartChip System, a genetic analysis platform used for profiling and validating molecular biomarkers in the life sciences and pharmaceutical drug discovery industries. WaferGen Bio-systems reported a net loss of $10.7 million in 2014, a net loss of $16.3 million in 2013 and a net loss of $8.97 million in 2012. As of June 30, 2015, the Company had $13.2 million in total assets, $6.9 million in total liabilities and $6.3 million in total stockholders' equity. WALTER ENERGY: Wants Plans Filing Exclusivity Until March --------------------------------------------------------- BankruptcyData reported that Walter Energy filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof until March 11, 2016, and May 10, 2016, respectively. The motion explains, "The Debtors, along with their advisors, are currently negotiating a path forward with their stakeholders consistent with their restructuring objectives to maintain their businesses as a going concern, preserve jobs, and maximize stakeholder value. The extensions requested in the motion will provide the Debtors and their advisors the opportunity to fully develop and explore all strategic alternatives and negotiate the best way forward." The Court scheduled a Nov. 10, 2015 hearing to consider the extension motion. About Walter Energy Walter Energy -- http://www.walterenergy.com/-- is a publicly traded "pure-play" metallurgical coal producer for the global steel industry with strategic access to steel producers in Europe, Asia and South America. The Company also produces thermal coal, anthracite, metallurgical coke and coal bed methane gas. Walter Energy employs approximately 2,700 employees, with operations in the United States, Canada and the United Kingdom. For the year ended Dec. 31, 2014, the Company reported a net loss of $471 million following a net loss of $359 million in 2013. Walter Energy, Inc., and its affiliates sought Chapter 11 protection (Bankr. N.D. Ala. Lead Case No. 15-02741) in Birmingham, Alabama on July 15, 2015, after signing a restructuring support agreement with first-lien lenders. Walter Energy disclosed total assets of $5.2 billion and total debt of $5 billion as of March 31, 2015. The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison as counsel; Bradley Arant Boult Cummings LLP, as co-counsel; Ogletree Deakins LLP, as labor and employment counsel; Maynard, Cooper & Gale, P.C., as special counsel; Blackstone Advisory Services, L.P., as investment banker; AlixPartners, LLP, as financial advisor, and Kurtzman Carson Consultants LLC, as claims and noticing agent. The Bankruptcy Administrator for the Northern District of Alabama appointed an Official Committee of Unsecured Creditors and an Official Committee of Retirees. The Creditors Committee tapped Morrison & Foerster LLP and Christian & Small LLP as attorneys. The Retiree Committee retained Adams & Reese LLP and Jenner & Block LLP as attorneys. The informal group of certain unaffiliated First Lien Lenders and First Lien Noteholders (the "Steering Committee") retained Akin, Gump, Strauss, Hauer and Feld LLP as legal advisor, and Lazard Freres & Co. LLC as financial advisor. WPCS INTERNATIONAL: Unit Has Change in Control Pact with President ------------------------------------------------------------------ WPCS International Incorporated's subsidiary, WPCS International - Suisun City, Inc., entered into a change in control agreement with Robert Roller, president of the Suisun City Operations, according to a regulatory filing with the Securities and Exchange Commission. The Agreement has an initial term of two years and automatically extends for additional one-year periods at the expiration of the initial term and on each anniversary thereafter unless either party notifies the other party of non-renewal no later than 30 days prior to such anniversary. Upon a change in control of the Company or the Suisun City Operations, the Agreement will continue for a term of two years and then expire. Under the Agreement, Mr. Roller is entitled to a payment of $150,000 if he is terminated without cause or if he terminates for good reason within two years following a change in control of the Company or the Suisun City Operations. All payments under the Agreement are contingent upon Mr. Roller's execution and non-revocation of a general release of claims against the Suisun City Operations and its affiliates. The Agreement provides that, if necessary, payments will be reduced to the maximum amount payable without loss of a deduction under Section 280G of the Internal Revenue Code. The Agreement contains restrictive covenants prohibiting the unauthorized disclosure of confidential information of the Suisun City Operations or its affiliates by Mr. Roller during and after his employment, and prohibiting Mr. Roller from soliciting the employees or customers of the Suisun City Operations or its affiliates during employment and for 12 months after termination of employment for any reason. 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. WRIGHTWOOD GUEST: Hires Hall & Company as Accountant ---------------------------------------------------- Wrightwood Guest Ranch, LLC seeks authorization from the U.S. Bankruptcy Court for the Central District of California to employ Hall & Company as certified public accountant. The Debtor requires Hall & Company to: (a) prepare adjusting entries, working papers and depreciation calculations in connection with preparing, reporting on, or estimating financial statements, financial reports, federal income and state tax returns and tax liabilities, and federal income and state tax deposits, including monthly operating reports; (b) review correspondence received, preparation of correspondence in response to and representation services as needed in connection with federal, state and county taxing authorities; and (c) consult, and provide tax advice and litigation services as required by the Debtor. Hall & Company be paid at these hourly rates: Bradford Hall $395 Directors $325-$395 Managers $275-$325 Supervisors $200-$235 Senior Accountants $150-$185 Staff Accountants $100-$145 Administrative Assistants $85 Hall & Company will also be reimbursed for reasonable out-of-pocket expenses incurred. Bradford Hall, managing director of Hall & Company, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Hall & Company can be reached at: Bradford Hall HALL & COMPANY 111 Pacifica, Suite 320 Irvine, CA 92618 Tel: (949) 910-4255 Fax: (949) 910-4256 Masterpiece Marketing, Larry Rundle, and Snyder Dorenfeld, filed an involuntary petition against Wrightwood Guest Ranch LLC (Bankr. C.D. Calif., Case No. 15-17799) on Aug. 5, 2015. The case is assigned to Judge Scott C. Clarkson. The Petitioners' counsel is Douglas A Plazak, Esq., at Reid & Hellyer, APC, in Riverside, California. The Bankruptcy Court later granted Wrightwood Guest Ranch's request for relief under Chapter 11 and vacated the Involuntary Petition filed against the Debtor. WRIGHTWOOD GUEST: Taps Baker Manock as Special Counsel ------------------------------------------------------ Wrightwood Guest Ranch, LLC seeks authorization from the U.S. Bankruptcy Court for the Central District of California to employ Baker Manock & Jensen as special counsel. The Debtor requires Baker Manock to: (a) negotiate and document transactions involving Greenlake Real Estate Fund, LLC and other secured creditors; (b) document possible financing; and (c) transactional services. The rates for attorneys at Baker Manock range from $185 to $525. Mr. Peter Zeitler's hourly rate is $325. Baker Manock will also be reimbursed for reasonable out-of-pocket expenses incurred. The Debtor owed Baker Manock about $3,000 on the date of the Order for Relief. Peter Zeitler, member of Baker Manock, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Baker Manock can be reached at: Peter Zeitler, Esq. BAKER MANOCK & JENSEN 5260 N. Palm Ave., Suite 421 Fresno, CA 93704 Masterpiece Marketing, Larry Rundle, and Snyder Dorenfeld, filed an involuntary petition against Wrightwood Guest Ranch LLC (Bankr. C.D. Calif., Case No. 15-17799) on Aug. 5, 2015. The case is assigned to Judge Scott C. Clarkson. The Petitioners' counsel is Douglas A Plazak, Esq., at Reid & Hellyer, APC, in Riverside, California. The Bankruptcy Court later granted Wrightwood Guest Ranch's request for relief under Chapter 11 and vacated the Involuntary Petition filed against the Debtor. XINERGY CORP: OK'd to Reject Agreement with VP-Investor Relations ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Virginia authorized Xinergy Corp. to reject its employment agreement with Robert L. Gaylor retroactive to Aug. 18, 2015. Xinergy Corp. and Mr. Gaylor entered into the employment agreement on May 22, 2014. Under the employment agreement, Mr. Gaylor receives an annual salary of $240,000 plus certain other benefits for his employment as executive vice president, investor relations. The employment agreement has a two-year term commencing from the Effective Date. The Debtors decided to reject the employment agreement because they no longer require the services of an investor relations executive. The stock of the Debtors has been de-listed from the Toronto stock exchange. The Debtors had determined that continuing to employ Mr. Gaylor would be burdensome to the Debtors' estates and inconsistent with its strategic initiatives. Xinergy is a U.S. producer of metallurgical and thermal coal with mineral reserves, mining operations and coal properties located in the Central Appalachian ("CAPP") regions of West Virginia and Virginia. Xinergy's operations principally include two active mining complexes known as South Fork and Raven Crest located in Greenbrier and Boone Counties, West Virginia. Xinergy also leases or owns the mineral rights to properties located in Fayette, Nicholas and Greenbrier Counties, West Virginia and Wise County, Virginia. Collectively, Xinergy leases or owns mineral rights to approximately 72,000 acres with proven and probable coal reserves of approximately 77 million tons and additional estimated reserves of 40 million tons. Xinergy Ltd. and 25 subsidiaries commenced Chapter 11 bankruptcy cases (Bankr. W.D. Va. Lead Case No. 15-70444) on April 6, 2015. The cases have been assigned to Judge Paul M. Black. The cases are being jointly administered for procedural purposes. Xinergy Ltd. disclosed $36,968,445 in assets and $215,000,000 in liabilities as of the Chapter 11 filing. The Debtors tapped Hunton & Williams LLP as attorneys; Global Hunter Securities, as financial advisor, and American Legal Claims Services, LLC as claims, noticing and balloting agent. The Debtor's reorganization plan proposes to give 100% of the new common stock of the reorganized holding company to holders of senior secured notes owed $202 million. The U.S. Trustee appointed a two member official committee of unsecured creditors. The Committee tapped to retain McGuireWoods LLP as lead counsel, and Whiteford, Taylor & Preston, LLP as its local counsel. Xinergy and its subsidiaries filed a proposed Joint Plan of Reorganization on Sept. 16, 2015. XINERGY LTD: Jeffrey Wilson Okayed as Senior VP-Operations ---------------------------------------------------------- The Hon. Honorable Paul M. Black of the U.S. Bankruptcy Court for the Western District of Virginia authorized Xinergy Ltd., et al., to (i) employ Wilson Energy Advisors, LLC, to provide the Debtors interim management services; and (ii) designate Jeffrey A. Wilson as senior vice president-operations, effective as of Aug. 13, 2015. Mr. Wilson will provide management services related to the Debtors' mining operations and make recommendations and assist in implementing decisions prior to and upon an exit from Chapter 11, and other areas and issues as he may identify and which are customarily performed by a senior vice president-operations, in consultation with the Debtors' chief executive officer, and in the manner as he deems necessary or appropriate consistent with the business judgment rule. The compensation of WEA and Mr. Wilson will consist of: (a) WEA's fees for the services will be based on a monthly rate of $35,000. (b) WEA will be entitled to reimbursement of reasonable out-of-pocket expenses of WEA and Wilson, including, but not limited to, costs of travel (economy class or equivalent), reproduction, legal counsel (including legal counsel retained to review, negotiate, and enforce the services agreement), any applicable state sales or excise tax and other direct expenses. To the best of the Debtors' knowledge, WEA is a "disinterested person" as that term is defined by Section 101(14) of the Bankruptcy Code. The Debtors are represented by: Tyler P. Brown, Esq. Henry P. (Toby) Long, III, Esq. Justin F. Paget, Esq. HUNTON & WILLIAMS LLP Riverfront Plaza, East Tower 951 East Byrd Street Richmond, VA 23219 Tel: (804) 788-8200 Fax: (804) 788-8218 About Xinergy Ltd. Xinergy is a U.S. producer of metallurgical and thermal coal with mineral reserves, mining operations and coal properties located in the Central Appalachian ("CAPP") regions of West Virginia and Virginia. Xinergy's operations principally include two active mining complexes known as South Fork and Raven Crest located in Greenbrier and Boone Counties, West Virginia. Xinergy also leases or owns the mineral rights to properties located in Fayette, Nicholas and Greenbrier Counties, West Virginia and Wise County, Virginia. Collectively, Xinergy leases or owns mineral rights to approximately 72,000 acres with proven and probable coal reserves of approximately 77 million tons and additional estimated reserves of 40 million tons. Xinergy Ltd. and 25 subsidiaries commenced Chapter 11 bankruptcy cases (Bankr. W.D. Va. Lead Case No. 15-70444) on April 6, 2015. The cases have been assigned to Judge Paul M. Black. The cases are being jointly administered for procedural purposes. Xinergy Ltd. disclosed $36,968,445 in assets and $215,000,000 in liabilities as of the Chapter 11 filing. The Debtors tapped Hunton & Williams LLP as attorneys; Global Hunter Securities, as financial advisor, and American Legal Claims Services, LLC as claims, noticing and balloting agent. The Debtor's reorganization plan proposes to give 100% of the new common stock of the reorganized holding company to holders of senior secured notes owed $202 million. The U.S. Trustee appointed a two member official committee of unsecured creditors. The Committee tapped to retain McGuireWoods LLP as lead counsel, and Whiteford, Taylor & Preston, LLP as its local counsel. Xinergy and its subsidiaries filed a proposed Joint Plan of Reorganization on Sept. 16, 2015. YUM! BRANDS: CDS Spikes Widest on Spinoff Plans, Fitch Says ----------------------------------------------------------- Yum! Brands Inc.'s announced separation of its China operation into an independent publicly traded company has sent its credit default swap (CDS) spreads spiking to their widest levels ever, according to Fitch Solutions in its latest CDS Case Study Snapshot. Five-year CDS on Yum! have continued to gap out, 98% wider in just the past week, to price at all-time wide levels. Additionally, CDS are currently pricing deep in speculative grade territory, a stark contrast from the beginning of this year. 'Spread widening for Yum! is being driven by the company's shift to a more aggressive financial strategy and investors' expectation that the company will lever up the company to return cash to shareholders,' said Diana Allmendinger. 'The spinoff means its leverage is likely to rise substantially.' In fact, the spinoff announcement sent CDS spreads another 45% wider. Fitch Solutions case studies build on data from its CDS Pricing Service and proprietary quantitative models, including CDS Implied Ratings. These credit risk indicators are designed to provide real-time, market-based views of creditworthiness. As such, they can and often do reflect more short term market views on factors such as currencies, seasonal market effects and short-term technical influences. This is in contrast to Fitch Ratings' Issuer Default Ratings (IDRs), which are based on forward-looking fundamental credit analysis over an extended period of time. [*] Allan D. Reiss Joins Greenberg Traurig as Shareholder --------------------------------------------------------- Carat men Germaine at Bankruptcy Law360 reported that Greenberg Traurig LLP has added a former Morgan Lewis & Bockius LLP partner in New York who has experience advising on securities offerings and restructurings in the energy industry, the firm announced on Oct. 19, 2015. Allan D. Reiss joins Greenberg as a shareholder, and he will work in the firm's corporate, energy and restructuring practices and advise a broad range of clients on corporate and securities transactions in the energy, shipping and renewables industries. [*] Dentons Nabs Prosecutor for White Collar Work in Chicago ------------------------------------------------------------ Rachel M. Cannon has joined as a partner in Dentons' Litigation and Dispute Resolution practice. Ms. Cannon will focus on serving clients in financial markets litigation and white-collar criminal defense and will be resident in the firm's Chicago office. Prior to joining Dentons, Ms. Cannon served as an Assistant United States Attorney in Chicago, where she supervised the bankruptcy fraud program at the US Attorney's Office. She also prosecuted a wide variety of fraud cases involving more than $100 million in losses and indicted corporations, executives, doctors, investment advisors, consultants, real estate developers, and public officials, among others. Ms. Cannon received a number of awards during her time as an AUSA, and served as a periodic trial advocacy instructor for the DOJ, SEC and CFTC. She has tried 19 jury trials, dozens of bench trials, and briefed and argued numerous cases in the US Court of Appeals. "We are extremely pleased to welcome Rachel to our litigation practice," said Dentons' US Managing Partner Mike McNamara. "Her experience investigating and trying financial markets cases coupled with her sophisticated trial skills will further strengthen and expand our litigation practice in Chicago and enhance our corporate internal investigation and criminal and regulatory defense capabilities." Ms. Cannon earned both her JD and BA from the University of Chicago. She earned her bachelor's degree with honors, and was a member of Phi Beta Kappa She was also named an Honorary Student Marshall, a presidential honor awarded to students in the top five percent of their graduating class. The National Law Journal named Dentons the 2014 Chicago Litigation Department of the Year for "its groundbreaking work." With more than 400 litigators in the United States, Dentons' prominent team of lawyers offers companies from all industries the talent and experience to resolve a wide array of complex issues. About Dentons Dentons -- http://www.dentons.com/-- is a law firm driven to provide a competitive edge in an increasingly complex and interconnected world. A top 20 firm on the Acritas 2015 Global Elite Brand Index, Dentons is committed to challenging the status quo in delivering consistent and uncompromising quality in new and inventive ways. Dentons' clients now benefit from 3,000 lawyers and professionals in more than 80 locations spanning 50-plus countries. With a legacy of legal experience that dates back to 1742 and builds on the strengths of our foundational firms—Salans, Fraser Milner Casgrain (FMC), SNR Denton and McKenna Long & Aldridge—the Firm serves the local, regional and global needs of private and public clients. [*] External Tailwinds Lead to Limited Credit Uplift, Fitch Says ---------------------------------------------------------------- External tailwinds are unlikely to lead to a significant uplift in Central America's creditworthiness, says Fitch Ratings in a new special report. While external finances and inflation across the region have benefited from the U.S. recovery and lower oil prices, the outlook for growth, public finances and structural issues is more mixed. Nonetheless, the new external backdrop could be a stabilizing factor in credit trends in the region, especially given the negative bias of ratings in recent years. Currently, only one country (Costa Rica) has a Negative Outlook. After a decade-long commodity boom that benefited Latin America's commodity exporters, low oil prices and stronger U.S. growth are now creating a more positive environment for oil importers in Central America and the Dominican Republic. As a result, Fitch expects regional growth of 4.3% in 2015-2017 to significantly outperform the Latin American average of 0.7% during that period. These tailwinds should support the dynamic economies of Panama and the Dominican Republic, although some growth moderation is expected on cooling domestic investment, while Costa Rica's economy is slowing on the closure of Intel's microchip plant. El Salvador and Guatemala could sustain higher growth rates than seen in the past decade, although structural bottlenecks from crime and human capital continue to restrain growth potential. 'Economic recovery in the U.S. could generate positive spillovers for the region due to strong linkages in terms of remittances, exports, tourism and foreign direct investment,' said Shelly Shetty, Head of Fitch's Latin America sovereign team. 'How countries use the tailwinds to re-build buffers and policy space and improve competitiveness through reforms will be key for credit trends in the region,' added Shetty. However, the Fed liftoff could tighten financing conditions and increase currency volatility. The greater reliance of sovereigns and banks on external funding has increased the sensitivity to adverse changes in external financing conditions in El Salvador and Costa Rica. The Dominican Republic could face challenges in the context of limited exchange rate flexibility given its weak external liquidity position. Lower oil prices are expected to narrow regional current account deficits to 3.2% in 2015-2017, from 5.2% in 2012-2014, and to reduce inflation to 2.1% from 3.8%. Cheaper energy could also support consumption and investment by boosting the disposable income of households and reducing production costs for firms, but the impact will depend on different degrees of pass-through to consumer prices and diversification of energy matrices. The fiscal impact of cheaper oil will be mixed due to varying energy subsidy and fuel tax schemes. Fitch projects deficits to be stable at an average 3.4% in 2015-2017 and debt to rise moderately in most countries during the same period. 'Energy subsidy savings in Panama and the Dominican Republic are creating fiscal space, although this may mostly be use to accommodate other spending plans rather than for deficit reduction' said Todd Martinez, Associate Director in Fitch's sovereign team. 'High deficits in Costa Rica and El Salvador could persist absent structural reforms,' added Martinez. A favorable external context for the region could improve conditions for advancing reforms, reversing the deterioration in credit metrics, but politics could get in the way. Fiscal reforms in Costa Rica and pension reform in El Salvador could face legislative hurdles, as could institutional reforms to electoral and public contracting laws in Guatemala and Panama. The Dominican government's legislative majority and broad popular support could favor reform momentum after the May 2016 election. [*] M&A Risks Remain Even as LBO Deals Decline, Fitch Says ---------------------------------------------------------- The current state of the mergers and acquisition (M&A) market poses some risks for U.S. companies, despite the shift away from leveraged buyout-driven (LBO) transactions, according to Fitch Ratings. Strategic M&A is a mixed bag in terms of risks and rating implications. The breakneck pace of strategic M&A activity continues to increase the risk that U.S. companies will overleverage balance sheets and/or miscalculate synergy prospects. Consolidation has led to stronger competitive positions in some cases (including operating synergies) while in others it has been a driver of top line growth for industries facing secular challenges and difficulty in growing revenues organically. Total M&A volume in the loan market came very close to setting a record high in 2014 ($457 billion versus $471 billion in 2007) and is on pace to post similar numbers in 2015. However, the composition of this M&A cycle is significantly different from the previous peak in 2007. Fitch believes the decline in the share of leveraged loan M&A issuance is primarily attributed to the drop in LBO volumes. LBO loan issuance of $95 billion in 2014 is less than one-half of the $207 billion in LBO volume recorded in 2007. September 2015 year-to-date LBO issuance of $57 billion is only a fraction of the volume seen in the previous cycle peak. Sector consolidations and strategic acquisitions have dominated the recent M&A scene. Companies have been able to successfully execute M&A transactions by using large cash positions, investment-grade financing, and their own equity. Generally rich valuations can make LBO returns unfavorable with the more limited leverage levels associated with the current regulatory environment. However, strategic buyers can justify paying the higher multiples needed to execute M&A transactions with their potentially greater ability to shed significant costs and/or realize revenue opportunities. Leveraged lending guidance has limited the amount of debt financial sponsors can use to execute transactions. Among the more explicit guidelines, regulators have noted leverage levels above 6.0x as one cause for concern. High valuations and these restrictions on highly leveraged deals have created more limited opportunities for financial sponsors to complete deals. Regulators appear to have made an impact in this regard as the average leverage on LBO deals completed through September 2015 is down to 6.1x from 7.1x in 2007. [*] Moody's B3 Negative List Tops 220 on Oil & Gas Downgrades ------------------------------------------------------------- The number of companies on the B3 Negative and Lower Corporate Ratings List rose 8% to 223 quarter over quarter and roughly 27% from a year ago, fueled primarily by downgrades of oil and gas companies whose credit profiles have been stressed by low commodity prices and volatility in the oil sector, says Moody's Investors Service. Currently, oil and gas companies comprise 23.8% of the list, up from 19.3% last quarter and from 8.5% a year ago. "Many of these oil and gas companies, particularly exploration and production companies, are under liquidity pressure and have seen their ratings downgraded," said Moody's analyst Julia Chursin. "With this pressure remaining, we expect the number of energy issuers on the list to keep growing." In addition, more companies left the list via defaults than upgrades for the third consecutive quarter. As with downgrades, these defaults relate mostly to independent exploration and production and oil field services companies under increasing cash flow and earnings pressure. Most of the energy defaults earlier this year were distressed exchanges, but as oil prices have slipped back in the last few months, Moody's is starting to see bankruptcies, including the recent filings by Samson Investment and Hercules Offshore. Excluding companies in the oil and gas sector, liquidity indicators remain stable and reflect mostly benign credit conditions, according to the report "Moody's B3 Negative and Lower Corporate Ratings List: Oil & Gas Downgrades Continue to Fuel an Expanding List." Although the list has continued to increase since Q1 2014 and has hit its highest reading since April 2010, it remains well shy of its record high of 291 in April 2009. Moody's notes that the drivers of the current uptick are fundamentally different from those that led to the 2009 high and do not reflect overall credit conditions among speculative-grade companies, but are currently exclusive to oil and gas. [*] Moody's: North American Covenant Quality Continues to Weaken ---------------------------------------------------------------- The covenant quality (CQ) of high-yield bonds in eight out of 11 North American non-financial corporate sectors deteriorated during the past year, says Moody's Investors Service. The average CQ score for high-yield bonds weakened to 4.29 from the 4.17 recorded for the 12 months ended 30 September 2014. Moody's measures bond covenant quality on a five-point scale, with 1.0 denoting the strongest investor protections and 5.0, the weakest. "Covenants weakened the most in the paper, packaging and forest products sector, followed by the technology sector, owing to a surge in the issuance of high-yield lite bonds as well as a corresponding decline in the overall CQ score for full-package bonds," said Moody's Associate Analyst Irina Brooklier. High-yield lite bonds automatically receive a score of 5.0 and so a rise in the percentage of such issuance weakens sector scores. Moody's notes that the paper, packaging and forest products sector issued the largest percentage of HY-lite covenant packages. According to the report, "Moody's Quarterly Covenant Quality Sector Report Protection Weakens Across Eight Sectors As Overall Quality Declines," bond covenants improved the most in the construction and homebuilding sector, followed by the telecommunications and healthcare sector. "The covenant quality improvement across these three sectors reflects the drop in the percentage of high-yield lite issuance here and, for telecommunications specifically, the strength of low-rated issuances from Consolidated Communications Finance II Co. and Cogent Communications Group, Inc.," said Moody's Vice President - Senior Covenant Officer Evan Friedman. [*] Supreme Court May Weigh In on Student Debt Battle ----------------------------------------------------- Natalie Kitroeff at Bloomberg Business reported that Mark Tetzlaff appealed his case to the Supreme Court. Mr. Tetzlaff has spent three years battling lawyers for the Department of Education over the right to have his student loans canceled in bankruptcy. Mr. Tetzlaff is a 57-year-old recovering alcoholic who has been convicted on misdemeanor victim intimidation and domestic abuse. He may also be the person with the best shot at upending the way U.S. courts treat student debt for bankrupt borrowers. If the nation's highest court takes the case on, it will be one of the rare occasions when it has addressed the $1.3 trillion pile of student debt held by 41 million Americans. Mr. Tezlaff also got a new attorney after representing himself for most of his case. The lawyer, Douglas Hallward-Driemeier, successfully argued part of the landmark June case that made same-sex marriage a legal right in all 50 states. Hallward-Driemeier and his team have asked the court to clarify 1970s-era rules that prevent borrowers from getting rid of education debt in bankruptcy, except in cases in which repaying it would constitute an "undue hardship." Lawmakers never fully defined "undue hardship," leaving it to the courts to define these special, and rare, circumstances in individual cases. Mr. Tetzlaff has said that the standard being applied to his case is unconstitutional. The Supreme Court may be tempted to consider the case partly because it would be able to resolve a split between federal courts in their interpretation of the law, according to court documents. Courts disagree mainly on which of two tests should be used to determine whether someone can erase his or her debt in bankruptcy. The so-called Brunner test is used in most federal courts and was applied in Tetzlaff's case. It is the strictest version of the standard because it requires debtors to prove that they have diligently tried to repay their loans, that making any payments would deprive them of a "minimal" standard of living, and that the hardship affecting them today will persist long into the future. Over the past two decades, lawyers arguing on behalf of the government have further pushed courts to take the most stringent view of each one of those components. Mr. Tezlaff's legal team has said the Supreme Court should instead apply a less harsh alternative to the Brunner test, known as the "totality of the circumstances" test, which has been gaining ground in courts across the country. That option does not require debtors to show that people have made "good faith" efforts to pay back their loans or that their lives will be characterized by unmitigated financial pain for the foreseeable future. A federal court in Chicago has said Tetzlaff needs to show his future will be characterized by a "certainty of hopelessness, not simply a present inability to fulfill financial commitment." Mr. Tetzlaff has argued that the standard applied must be whether he can reasonably expect his life to get better, not whether he is certain it will get worse. Forecasting someone's life prospects is never easy, but it is a particularly tricky exercise in Mr. Tetzlaff's case. The Wisconsinite accumulated $260,000 in student debt after getting an MBA at Marquette University; then attending, but not graduating from, law school at DePaul University; and finally finishing his law degree at the for-profit Florida Coastal School of Law. He failed the bar exam twice. He has been out of work since 2004 and says he cannot get employed anywhere because employers repeatedly reject him on the basis of his criminal record. He now lives with his 86-year-old mother, and the two survive on her Social Security income. Mr. Tetzlaff's lawyers say the courts have become increasingly imaginative in their interpretation of undue hardship. The criteria used to judge whether someone is worthy of bankruptcy have been transformed "into an unforgiving and strict requirement with no rational connection to the statutory text." [^] BOND PRICING: For the Week from October 19 to 23, 2015 ---------------------------------------------------------- Company Ticker Coupon Bid Price Maturity Date ------- ------ ------ --------- ------------- ACE Cash Express Inc AACE 11.000 35.000 2/1/2019 ACE Cash Express Inc AACE 11.000 37.650 2/1/2019 AM Castle & Co CAS 7.000 57.375 12/15/2017 Affinion Group Holdings Inc AFFINI 11.625 95.244 11/15/2015 Affinion Investments LLC AFFINI 13.500 37.000 8/15/2018 Alpha Appalachia Holdings Inc ANR 3.250 4.250 8/1/2015 Alpha Natural Resources Inc ANR 9.750 3.750 4/15/2018 Alpha Natural Resources Inc ANR 6.000 3.600 6/1/2019 Alpha Natural Resources Inc ANR 6.250 3.750 6/1/2021 Alpha Natural Resources Inc ANR 7.500 6.750 8/1/2020 Alpha Natural Resources Inc ANR 3.750 3.500 12/15/2017 Alpha Natural Resources Inc ANR 4.875 3.500 12/15/2020 Alpha Natural Resources Inc ANR 7.500 7.000 8/1/2020 Alpha Natural Resources Inc ANR 7.500 6.625 8/1/2020 American Eagle Energy Corp AMZG 11.000 19.375 9/1/2019 American Eagle Energy Corp AMZG 11.000 19.375 9/1/2019 Arch Coal Inc ACI 7.000 2.486 6/15/2019 Arch Coal Inc ACI 9.875 3.000 6/15/2019 Arch Coal Inc ACI 7.250 4.926 6/15/2021 Arch Coal Inc ACI 7.250 3.250 10/1/2020 Arch Coal Inc ACI 8.000 9.510 1/15/2019 Arch Coal Inc ACI 8.000 11.645 1/15/2019 BPZ Resources Inc BPZR 8.500 8.000 10/1/2017 BPZ Resources Inc BPZR 6.500 10.250 3/1/2015 BPZ Resources Inc BPZR 6.500 8.000 3/1/2049 Basic Energy Services Inc BAS 7.750 40.000 2/15/2019 Caesars Entertainment Operating Co Inc CZR 10.000 30.250 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.750 28.063 2/1/2016 Caesars Entertainment Operating Co Inc CZR 6.500 37.313 6/1/2016 Caesars Entertainment Operating Co Inc CZR 12.750 30.750 4/15/2018 Caesars Entertainment Operating Co Inc CZR 5.750 43.000 10/1/2017 Caesars Entertainment Operating Co Inc CZR 10.000 30.750 12/15/2018 Caesars Entertainment Operating Co Inc CZR 5.750 12.250 10/1/2017 Caesars Entertainment Operating Co Inc CZR 10.000 29.750 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.000 30.000 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.750 29.375 2/1/2016 Caesars Entertainment Operating Co Inc CZR 10.000 29.750 12/15/2018 Chaparral Energy Inc CHAPAR 9.875 37.500 10/1/2020 Chassix Holdings Inc CHASSX 10.000 8.000 12/15/2018 Chassix Holdings Inc CHASSX 10.000 8.000 12/15/2018 Claire's Stores Inc CLE 8.875 41.215 3/15/2019 Claire's Stores Inc CLE 7.750 31.500 6/1/2020 Claire's Stores Inc CLE 10.500 59.980 6/1/2017 Claire's Stores Inc CLE 7.750 31.500 6/1/2020 Cliffs Natural Resources Inc CLF 5.950 53.250 1/15/2018 Colt Defense LLC / Colt Finance Corp CLTDEF 8.750 9.000 11/15/2017 Colt Defense LLC / Colt Finance Corp CLTDEF 8.750 3.289 11/15/2017 Colt Defense LLC / Colt Finance Corp CLTDEF 8.750 3.289 11/15/2017 Community Choice Financial Inc CCFI 10.750 30.635 5/1/2019 Comstock Resources Inc CRK 7.750 26.622 4/1/2019 Comstock Resources Inc CRK 9.500 31.500 6/15/2020 Constellation Enterprises LLC CONENT 10.625 63.000 2/1/2016 Constellation Enterprises LLC CONENT 10.625 62.625 2/1/2016 Dendreon Corp DNDN 2.875 71.625 1/15/2016 Dex Media Inc DXM 12.000 3.100 1/29/2017 Dow Chemical Co/The DOW 2.350 100.000 5/15/2020 Dow Chemical Co/The DOW 3.550 99.900 5/15/2024 EPL Oil & Gas Inc EXXI 8.250 34.000 2/15/2018 EXCO Resources Inc XCO 7.500 33.180 9/15/2018 EXCO Resources Inc XCO 8.500 25.000 4/15/2022 Edgen Murray Corp EDG 8.750 107.188 11/1/2020 Emerald Oil Inc EOX 2.000 30.050 4/1/2019 Endeavour International Corp END 12.000 11.500 3/1/2018 Endeavour International Corp END 12.000 9.250 3/1/2018 Endeavour International Corp END 12.000 9.250 3/1/2018 Energy & Exploration Partners Inc ENEXPR 8.000 15.500 7/1/2019 Energy & Exploration Partners Inc ENEXPR 8.000 14.000 7/1/2019 Energy Conversion Devices Inc ENER 3.000 7.875 6/15/2013 Energy Future Holdings Corp TXU 9.750 32.625 10/15/2019 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 10.000 2.375 12/1/2020 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 10.000 2.186 12/1/2020 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 6.875 2.186 8/15/2017 Energy XXI Gulf Coast Inc EXXI 9.250 36.287 12/15/2017 Energy XXI Gulf Coast Inc EXXI 7.500 20.500 12/15/2021 Energy XXI Gulf Coast Inc EXXI 6.875 20.500 3/15/2024 Energy XXI Gulf Coast Inc EXXI 7.750 25.000 6/15/2019 Exide Technologies XIDE 8.625 2.000 2/1/2018 FBOP Corp FBOPCP 10.000 1.843 1/15/2009 FairPoint Communications Inc/Old FRP 13.125 1.879 4/2/2018 Federal Farm Credit Banks FFCB 0.640 99.628 11/29/2016 Federal Home Loan Banks FHLB 2.350 99.391 1/30/2023 Federal Home Loan Banks FHLB 2.350 99.589 1/30/2023 Fleetwood Enterprises Inc FLTW 14.000 3.557 12/15/2011 GT Advanced Technologies Inc GTAT 3.000 16.600 10/1/2017 GT Advanced Technologies Inc GTAT 3.000 15.750 12/15/2020 Getty Images Inc GYI 7.000 31.250 10/15/2020 Getty Images Inc GYI 7.000 31.200 10/15/2020 Goodman Networks Inc GOODNT 12.125 41.530 7/1/2018 Goodrich Petroleum Corp GDP 8.875 17.125 3/15/2019 Goodrich Petroleum Corp GDP 5.000 22.500 10/1/2032 Goodrich Petroleum Corp GDP 8.875 19.000 3/15/2019 Goodrich Petroleum Corp GDP 8.875 19.000 3/15/2019 Gymboree Corp/The GYMB 9.125 33.288 12/1/2018 Halcon Resources Corp HKUS 9.750 31.750 7/15/2020 Halcon Resources Corp HKUS 8.875 33.250 5/15/2021 Halcon Resources Corp HKUS 9.250 33.500 2/15/2022 Hercules Offshore Inc HERO 8.750 56.834 7/15/2021 Hercules Offshore Inc HERO 6.750 20.500 4/1/2022 Hercules Offshore Inc HERO 7.500 16.500 10/1/2021 Hercules Offshore Inc HERO 10.250 19.875 4/1/2019 Hercules Offshore Inc HERO 7.500 16.500 10/1/2021 Hercules Offshore Inc HERO 6.750 20.500 4/1/2022 Hercules Offshore Inc HERO 8.750 19.875 7/15/2021 Hercules Offshore Inc HERO 10.250 19.875 4/1/2019 Hewlett-Packard Co HPQ 2.600 101.808 9/15/2017 Hewlett-Packard Co HPQ 3.000 101.850 9/15/2016 Hewlett-Packard Co HPQ 5.500 109.493 3/1/2018 Hewlett-Packard Co HPQ 3.300 102.064 12/9/2016 Hewlett-Packard Co HPQ 5.400 105.212 3/1/2017 Horsehead Holding Corp ZINC 3.800 61.900 7/1/2017 Interactive Network Inc / FriendFinder Networks Inc FFNT 14.000 56.250 12/20/2018 Joy Global Inc JOY 6.000 104.528 11/15/2016 Key Energy Services Inc KEG 6.750 27.750 3/1/2021 Las Vegas Monorail Co LASVMC 5.500 5.000 7/15/2019 Lehman Brothers Holdings Inc LEH 4.000 6.125 4/30/2009 Lehman Brothers Holdings Inc LEH 5.000 6.125 2/7/2009 Lehman Brothers Inc LEH 7.500 6.000 8/1/2026 Linc USA GP / Linc Energy Finance USA Inc LNCAU 12.500 8.000 10/31/2017 Linn Energy LLC / Linn Energy Finance Corp LINE 8.625 28.250 4/15/2020 Linn Energy LLC / Linn Energy Finance Corp LINE 6.500 27.750 5/15/2019 Linn Energy LLC / Linn Energy Finance Corp LINE 7.750 27.000 2/1/2021 Linn Energy LLC / Linn Energy Finance Corp LINE 6.250 27.935 11/1/2019 Linn Energy LLC / Linn Energy Finance Corp LINE 6.500 25.000 9/15/2021 Linn Energy LLC / Linn Energy Finance Corp LINE 6.250 25.375 11/1/2019 Linn Energy LLC / Linn Energy Finance Corp LINE 6.250 25.375 11/1/2019 MF Global Holdings Ltd MF 6.250 12.000 8/8/2016 MF Global Holdings Ltd MF 3.375 12.000 8/1/2018 MF Global Holdings Ltd MF 9.000 12.000 6/20/2038 MModal Inc MODL 10.750 10.125 8/15/2020 Magnetation LLC / Mag Finance Corp MAGNTN 11.000 25.000 5/15/2018 Magnetation LLC / Mag Finance Corp MAGNTN 11.000 24.750 5/15/2018 Magnetation LLC / Mag Finance Corp MAGNTN 11.000 24.750 5/15/2018 Midstates Petroleum Co Inc / Midstates Petroleum Co LLC MPO 10.750 20.500 10/1/2020 Midstates Petroleum Co Inc / Midstates Petroleum Co LLC MPO 9.250 21.000 6/1/2021 Midstates Petroleum Co Inc / Midstates Petroleum Co LLC MPO 10.750 20.750 10/1/2020 Midstates Petroleum Co Inc / Midstates Petroleum Co LLC MPO 10.750 20.750 10/1/2020 Molycorp Inc MCP 10.000 5.250 6/1/2020 New Gulf Resources LLC/ NGR Finance Corp NGREFN 12.250 31.250 5/15/2019 New Gulf Resources LLC/ NGR Finance Corp NGREFN 12.250 31.000 5/15/2019 New Gulf Resources LLC/ NGR Finance Corp NGREFN 12.250 28.000 5/15/2019 Nine West Holdings Inc JNY 6.875 34.125 3/15/2019 Noranda Aluminum Acquisition Corp NOR 11.000 27.800 6/1/2019 Nuverra Environmental Solutions Inc NES 9.875 54.893 4/15/2018 OMX Timber Finance Investments II LLC OMX 5.540 12.800 1/29/2020 Peabody Energy Corp BTU 6.000 31.110 11/15/2018 Peabody Energy Corp BTU 6.500 22.980 9/15/2020 Peabody Energy Corp BTU 6.250 21.750 11/15/2021 Peabody Energy Corp BTU 7.875 21.096 11/1/2026 Peabody Energy Corp BTU 6.000 89.000 11/15/2018 Peabody Energy Corp BTU 6.000 30.125 11/15/2018 Peabody Energy Corp BTU 6.250 21.750 11/15/2021 Peabody Energy Corp BTU 6.250 21.750 11/15/2021 Penn Virginia Corp PVA 8.500 29.000 5/1/2020 Penn Virginia Corp PVA 7.250 26.000 4/15/2019 Permian Holdings Inc PRMIAN 10.500 41.250 1/15/2018 Permian Holdings Inc PRMIAN 10.500 40.875 1/15/2018 Powerwave Technologies Inc PWAV 2.750 0.274 7/15/2041 Powerwave Technologies Inc PWAV 3.875 0.250 10/1/2027 Powerwave Technologies Inc PWAV 3.875 0.250 10/1/2027 Powerwave Technologies Inc PWAV 1.875 0.250 11/15/2024 Powerwave Technologies Inc PWAV 1.875 0.250 11/15/2024 Prospect Holding Co LLC / Prospect Holding Finance Co PRSPCT 10.250 52.500 10/1/2018 Prospect Holding Co LLC / Prospect Holding Finance Co PRSPCT 10.250 38.060 10/1/2018 Quality Distribution LLC / QD Capital Corp QLTY 9.875 103.050 11/1/2018 Quantum Corp QTM 3.500 98.293 11/15/2015 Quicksilver Resources Inc KWKA 9.125 6.250 8/15/2019 Quicksilver Resources Inc KWKA 11.000 6.500 7/1/2021 Quiksilver Inc / QS Wholesale Inc ZQK 10.000 8.500 8/1/2020 RAAM Global Energy Co RAMGEN 12.500 6.000 10/1/2015 Rolta LLC RLTAIN 10.750 55.375 5/16/2018 Sabine Oil & Gas Corp SOGC 7.250 14.250 6/15/2019 Sabine Oil & Gas Corp SOGC 9.750 9.500 2/15/2017 Sabine Oil & Gas Corp SOGC 7.500 14.750 9/15/2020 Sabine Oil & Gas Corp SOGC 7.500 13.375 9/15/2020 Sabine Oil & Gas Corp SOGC 7.500 13.375 9/15/2020 Samson Investment Co SAIVST 9.750 1.500 2/15/2020 SandRidge Energy Inc SD 7.500 24.745 3/15/2021 SandRidge Energy Inc SD 8.125 24.500 10/15/2022 SandRidge Energy Inc SD 8.750 28.000 1/15/2020 SandRidge Energy Inc SD 7.500 22.750 2/15/2023 SandRidge Energy Inc SD 8.125 26.260 10/16/2022 SandRidge Energy Inc SD 7.500 25.320 2/16/2023 SandRidge Energy Inc SD 7.500 24.875 3/15/2021 SandRidge Energy Inc SD 7.500 24.875 3/15/2021 Savient Pharmaceuticals Inc SVNT 4.750 0.225 2/1/2018 Sequa Corp SQA 7.000 52.650 12/15/2017 Sequa Corp SQA 7.000 52.375 12/15/2017 SquareTwo Financial Corp SQRTW 11.625 64.300 4/1/2017 Swift Energy Co SFY 7.875 27.510 3/1/2022 Swift Energy Co SFY 7.125 27.060 6/1/2017 Swift Energy Co SFY 8.875 28.600 1/15/2020 TMST Inc THMR 8.000 14.750 5/15/2013 Talos Production LLC / Talos Production Finance Inc TALPRO 9.750 50.750 2/15/2018 Talos Production LLC / Talos Production Finance Inc TALPRO 9.750 51.000 2/15/2018 Terrestar Networks Inc TSTR 6.500 10.000 6/15/2014 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 11.500 36.250 10/1/2020 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15.000 9.625 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.500 9.500 11/1/2016 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 11.500 37.750 10/1/2020 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15.000 9.500 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.500 9.125 11/1/2016 Venoco Inc VQ 8.875 17.600 2/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.750 19.500 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.750 23.000 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.750 12.850 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.375 15.000 8/1/2016 Verso Paper Holdings LLC / Verso Paper Inc VRS 13.000 9.000 8/1/2020 Verso Paper Holdings LLC / Verso Paper Inc VRS 8.750 9.250 2/1/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 13.000 9.000 8/1/2020 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.750 23.375 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.750 13.500 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.750 13.500 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.750 23.375 1/15/2019 Walter Energy Inc WLTG 9.500 32.375 10/15/2019 Walter Energy Inc WLTG 11.000 2.500 4/1/2020 Walter Energy Inc WLTG 8.500 0.250 4/15/2021 Walter Energy Inc WLTG 9.500 32.250 10/15/2019 Walter Energy Inc WLTG 11.000 2.790 4/1/2020 Walter Energy Inc WLTG 9.500 32.250 10/15/2019 Walter Energy Inc WLTG 9.500 32.250 10/15/2019 Warren Resources Inc WRES 9.000 20.500 8/1/2022 Warren Resources Inc WRES 9.000 22.625 8/1/2022 Warren Resources Inc WRES 9.000 22.625 8/1/2022 iHeartCommunications Inc IHRT 10.000 54.750 1/15/2018 iHeartCommunications Inc IHRT 10.000 74.438 1/15/2018 iHeartCommunications Inc IHRT 10.000 54.250 1/15/2018 ********* 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. 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