/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/151228.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, December 28, 2015, Vol. 19, No. 362 Headlines 30DC INC: Enters Into Services and Consulting Agreements ACTIVECARE INC: Needs More Time to File Fiscal 2015 Form 10-K ADAMS MILL: Case Summary & 20 Largest Unsecured Creditors AMERICAN APPAREL: Former Oak NYC Store Owners Buying Back Chain ARCH COAL: S&P Lowers CCR to 'SD' on Missed Interest Payment ARCHDIOCESE OF ST. PAUL: Court Denies Bid for Future Claims Rep. AVON PRODUCTS: Fitch Affirms 'B+' Long-term Issuer Default Rating BACK9NETWORK INC: Case Summary & 20 Largest Unsecured Creditors BACK9NETWORK INC: Files for Chapter 11, Working on Plan BACK9NETWORK INC: Obtains $2-Mil. DIP Commitment From GolfWorks BACK9NETWORK INC: Seeks Joint Administration of Cases BACK9NETWORK INC: Wants to Employ Hinckley Allen as Counsel BANESCO USA: Fitch Affirms IDRs 'B+' LT Issuer Default Rating BERNARD L. MADOFF: Altegrity Unit to Pay $24M to Settle Claims BG MEDICINE: Withdraws BGM Galectin-3 Premarket Notification BRADLEY S. KIDWELL: Voluntary Chapter 11 Case Summary C COMPANY HYDROVAC: Case Summary & 20 Largest Unsecured Creditors CAMBRIDGE ACADEMY: Fitch Affirms 'BB-' Rating on Revenue Bonds CAPELLA HEALTHCARE: S&P Affirms Then Withdraws 'B' CCR CARSON CIVIC CENTER: Case Summary & 3 Top Unsecured Creditors CEQUEL COMMUNICATIONS: Moody's Lowers CFR to B3, Outlook Stable CHESAPEAKE ENERGY: S&P Cuts CCR to 'B' on Revised Risk Assessment CLOUDEEVA INC: Nisivoccia LLP Okayed as Ch. 11 Trustee's Accountant COYNE INTERNATIONAL: SSG Served as Investment Banker in Asset Sale CTI BIOPHARMA: Approves Compensatory Arrangements of Officers DF SERVICING: Case Summary & 20 Largest Unsecured Creditors DF SERVICING: Hires Carrasquillo as Financial Consultant DF SERVICING: Seeks to Employ Cuprill as Legal Counsel DISH NETWORK: Moody's Affirms Ba3 Corporate Family Rating DORAL FINANCIAL: Creditors Say $889 Million PR Tax Deal Is Valid ELEPHANT TALK: Gets $768,700 From Units Offering EMPIRE RESORTS: To Effect 1-for-5 Reverse Stock Split ENERGY FUTURE: Bid to Sell Oncor Minority Stake Kept Alive EQUA MANAGEMENT: Case Summary & 20 Largest Unsecured Creditors FANNIE MAE & FREDDIE MAC: Updated Conservatorship Litigation Chart FILMED ENTERTAINMENT: To Relaunch Vinyl Album Subscription Service FOUR OAKS: Ayden Lee Resigns as Executive Chairman FPL ENERGY: S&P Affirms B- Rating on $100MM Sec. Notes, Outlook Neg GIBSON BRANDS: Moody's Lowers CFR to B3, On Review for Downgrade GOLDEN COUNTY FOODS: Court OKs Kurtzman Carson as Admin. Advisor GOODMAN NETWORKS: S&P Lowers CCR to 'CCC+' on Weak Performance GREEN AUTOMOTIVE: CFO Alan Bailey Resigns GREEN AUTOMOTIVE: To Challenge Typenex Default Arbitration Award ITUS CORP: Incurs $1.37 Million Net Loss in Fiscal 2015 KAP ENTERPRISES: Plan Complies with Bankruptcy Code Provisions KNAPP MEDICAL: S&P Lowers ICR to 'BB+', Outlook Stable LAS VEGAS SANDS: Moody's Lowers CFR to Ba1, Outlook Stable LKQ CORP: Moody's to Retain Ba1 CFR on Planned Acquisition LKQ CORP: S&P Puts 'BB+' CCR on CreditWatch Negative LONESTAR GENERATION: S&P Lowers Rating on $675MM Loan to 'B+' MAGNETATION LLC: Pact With AK Steel Must Be Honored, Court Says MAGNETATION LLC: Taps PJT Partners as Investment Banker MAGNETATION LLC: Unit to Assume AK Steel Ore Pellet Agreement MERCANTIL COMMERCEBANK: Fitch Affirms BB/B Issuer Default Ratings MF GLOBAL: Corzine, CFTC Duel Over Collapse MILLENNIUM LAB: Judge Silverstein Won't Halt Chapter 11 Plan MILLENNIUM LAB: Reorganization Plan Declared Effective NAKED BRAND: Successfully Completes $7.5 Million Public Offering NELSON SERVICE: Case Summary & 20 Largest Unsecured Creditors NORTHERN FRONTIER: Obtains Temporary Financial Covenant Waiver NORTHWEST MANAGEMENT: Case Summary & 8 Top Unsecured Creditors OAKFABCO INC: Asbestos Panel Wants Insurance Professional Services OAS SA: Gets Creditor Support for $339M Sale of Invepar Stake OPPENHEIMER HOLDINGS: Moody's Affirms B2 CFR, Alters Outlook to Pos P2 LOWER: Moody's Affirms B2 CFR & Changes Outlook to Stable PACIFIC EXPLORATION: Fitch Cuts LT Issuer Default Ratings to 'CCC' PACIFIC THOMAS: Can Recover $22K from Darrow Family PEABODY ENERGY: Moody's Lowers CFR to Caa3, Outlook Negative PRESSURE BIOSCIENCES: Stockholders Elect Two Class I Directors QUEST VENTURES: Voluntary Chapter 11 Case Summary RDIO INC: Selects Pandora's $75M Bid as Best in Chapter 11 Sale SAFE & SECURE: Court Dismisses Chapter 11 Bankruptcy Case SAMUEL E. WYLY: To Fight $2-Bil. Tax Bill at January Trial SAN BERNARDINO, CA: Judge Rejects City's Bankruptcy Proposal SELECT MEDICAL: Moody's Affirms B1 CFR, Outlook Stable SHORELINE ENERGY: Files Bankruptcy Petition, Jan. 20 Meeting Set SIGA TECHNOLOGIES: Del. Supreme Court Affirms PharmAthene Damages SIMON WORLDWIDE: Board Approves Company Dissolution STANDARD REGISTER: Plan of Liquidation Declared Effective TAMARA MELLON: Has Court's Nod to Obtain $10M Financing From NEA TRANS-LUX CORP: Completed Exchange Agreements with Noteholders WESTMORELAND COAL: Targets Jan. 31 San Juan Acquisition Date WET SEAL: Seal123 Deregisters Unsold Shares WRIGHTWOOD GUEST RANCH: Hires Drummond & Assoc as Special Counsel WRIGHTWOOD GUEST RANCH: Reid & Hellyer Okayed as Panel's Counsel ZLOOP INC: Hires Keen-Summit as Real Estate Consultant & Advisor [*] Court Won't Sink Defamation Claims vs. Porzio Attorney [*] Huron Bags M&A's 2015 Restructuring Deal of the Year Award [*] Lender Discrimination May Be Hurting Black Churches, Study Says [*] New York Judge Axes Scarinci Hollenbeck Malpractice Suit [^] BOND PRICING: For the Week from December 21 to 25, 2015 ********* 30DC INC: Enters Into Services and Consulting Agreements -------------------------------------------------------- 30DC, Inc., entered into an agreement with Henry Pinskier, the Company's interim chief executive officer, for consideration of 2,000,000 shares of the Company's common stock. The agreement has zero cash consideration and covers the time Mr. Pinskier began serving as interim chief executive officer through the end of the Company's current fiscal year, June 30, 2016. Mr. Pinskier is also chairman of the Company's board of directors. On Dec. 22, 2015, the Company entered into a one-year agreement with Theodore A. Greenberg, the Company's chief financial officer for which part of the consideration was 500,000 shares of the Company's common stock. Cash consideration under the agreement is $5,000 per month but may be adjusted after six months based upon the Company's performance and financial position. Mr. Greenberg is also a member of the Company's board of directors. On Dec. 22, 2015, the Company entered into a one-year agreement with 21st Century Digital Media, Inc., whose President, Gregory H. Laborde, is a Director of 30DC, for business development services for which part of the consideration was 300,000 shares of the Company's common stock. Cash consideration under the agreement is $3,000 per month and the agreement includes incentive compensation of up to 1,700,000 shares of the Company's stock which can be earned by achieving certain milestones during the term of the agreement. About 30DC Inc. New York-based 30DC, Inc., provides Internet marketing services and related training to help Internet companies in operating their businesses. It operates in two divisions, 30 Day Challenge and Immediate Edge. 30DC reported a net loss of $1.59 million on $738,000 of total revenue for the year ended June 30, 2015, compared to net income of $58,918 on $2.35 million of total revenue for the year ended June 30, 2014. As of June 30, 2015, the Company had $1.46 million in total assets, $2.32 million in total liabilities and a total stockholders' deficit of $865,000. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, citing that the Company has accumulated losses from operations since inception and has a working capital deficit as of June 30, 2015. These conditions raise substantial doubt about the Company's ability to continue as a going concern. ACTIVECARE INC: Needs More Time to File Fiscal 2015 Form 10-K ------------------------------------------------------------- ActiveCare, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the year ended Sept. 30, 2015. The Company said it needs additional time to complete the presentation of its financial statements and the analysis thereof. About ActiveCare South West Valley City, Utah-based ActiveCare, Inc., is organized into three business segments based primarily on the nature of the Company's products. The Stains and Reagents segment is engaged in the business of manufacturing and marketing medical diagnostic stains, solutions and related equipment to hospitals and medical testing labs. The CareServices segment is engaged in the business of developing, distributing and marketing mobile health monitoring and concierge services to distributors and customers. The Chronic Illness Monitoring segment is primarily engaged in the monitoring of diabetic patients on a real time basis. The Company's business plan is to develop and market products for monitoring the health of and providing assistance to mobile and homebound seniors and the chronically ill, including those who may require a personal assistant to check on them during the day to ensure their safety and well being. ActiveCare reported a net loss attributable to common stockholders of $16.4 million for the year ended Sept. 30, 2014, compared to a net loss attributable to common stockholders of $27.5 million for the year ended Sept. 30, 2013. As of June 30, 2015, the Company had $3.96 million in total assets, $11.9 million in total liabilities and total stockholders' deficit of $7.94 million. Tanner LLC, in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2014. The independent auditors noted that the Company has recurring losses, negative cash flows from operating activities, negative working capital, negative total equity, and certain debt that is in default. These conditions, the auditors said, among others, raise substantial doubt about the Company's ability to continue as a going concern. ADAMS MILL: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Adams Mill Enterprises LLC 1400 Old Musket Lane Fort Washington, MD 20744-4178 Case No.: 15-00673 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: December 23, 2015 Court: United States Bankruptcy Court for the District of Columbia (Washington, D.C.) Judge: Hon. Martin S. Teel, Jr. Debtor's Counsel: Brent C. Strickland, Esq. WHITEFORD, TAYLOR, & PRESTON L.L.P. Seven Saint Paul Street Baltimore, MD 21202-3324 Tel: (410) 347-8700 Email: bstrickland@wtplaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Purcell G. Conway, manager. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/dcb15-00673.pdf AMERICAN APPAREL: Former Oak NYC Store Owners Buying Back Chain --------------------------------------------------------------- Deborah Belgum at California Apparel News reports that Jeff Madalena and Louis Terline have reached an agreement to buy back from American Apparel their Oak NYC retail chain of two stores in Los Angeles and two stores in the New York area. The U.S. Bankruptcy Court for the District of Delaware has set a hearing for Jan. 20, 2015, to consider the deal, Apparel News states. Apparel News relates that Messrs. Madalena and Terline offered $600,000 and then $1.1 million. The final offer, according to the report, hasn't been disclosed. About American Apparel American Apparel, Inc., American Apparel (USA), LLC, American Apparel Retail, Inc., American Apparel Dyeing & Finishing, Inc., KCL Knitting, LLC and Fresh Air Freight, Inc. sought Chapter 11 bankruptcy protection (Bankr. D. Del. Proposed Lead Case No. 15-12055) on Oct. 5, 2015. The petition was signed by Hassan Natha as chief financial officer. The Debtors reported total assets of $199,360,934 and total liabilities of $397,576,744. The Debtors and their non-debtor affiliates operate a vertically integrated manufacturing, distribution, and retail business focused on branded fashion-basic apparel, employing approximately 8,500 employees across six manufacturing facilities and approximately 230 retail stores in the United States and 17 other countries worldwide. The Debtors have engaged Jones Day as restructuring counsel, Pachulski Stang Ziehl & Jones LLP as local counsel, Moelis & Company as investment banker, FTI Consulting, Inc., as financial advisor, DJM Real Estate as real estate consultant and Garden City Group, LLC, as claims and noticing agent. ARCH COAL: S&P Lowers CCR to 'SD' on Missed Interest Payment ------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered its corporate credit rating on St. Louis-based Arch Coal Inc. to 'SD' from 'CC'. At the same time, S&P lowered its issue-level ratings on the company's senior unsecured notes to 'D' from 'CC'. The recovery rating on the notes remains '6', which continues to reflect S&P's expectation for negligible (0%-10%) recovery in the event of a conventional default. S&P also lowered its issue-level rating on the company's first-lien secured debt to 'CCC' from 'B-'. The recovery rating is unchanged at '2', indicating S&P's expectation for substantial recovery (70%-90%; upper half of the range) in the event of a payment default. In addition, S&P lowered its issue-level rating on the company's second-lien secured debt to 'C' from 'CCC-'. The recovery rating is unchanged at '6', indicating S&P's expectation or negligible recovery (0%-10%) in the event of a payment default. "If Arch makes the interest payment within the grace period, we will likely revise the issuer credit rating to 'CCC-'," said Standard & Poor's credit analyst Chiza Vitta. "If the payment is not made, we will consider the likelihood of other interest payments being paid and revise the ratings accordingly." ARCHDIOCESE OF ST. PAUL: Court Denies Bid for Future Claims Rep. ---------------------------------------------------------------- The Hon. Robert J. Kressel of the U.S. Bankruptcy Court for the District of Minnesota denied the motion of The Archdiocese of Saint Paul and Minneapolis to designate a legal representative for the interests of future abuse claimants, including minors, and appointing the initial representative. According to the order, the constituency represented by the creditors committee includes and extends to, among others, those individuals who, on the confirmation date under any plan of reorganization in the case, (a) had a claim for sexual abuse against the Debtor; (b) were under a disability recognized by Minn. Stat. Section 541.15; and (c) did not file a claim or have a claim filed on their behalf. In an amended memorandum in support of the motion, the Debtor sought approval of John Esposito, managing director -- restructuring and transaction advisory of BRG Capstone, as the future claims representative. According to the Debtor, the appointment of a future (or unknown) claims representative originally came before the Court on a motion filed by the Official Committee of Unsecured Creditors. The Debtor did not oppose the representative suggested by the UCC in its original motion. Mr. Esposito has agreed to take a number of steps to minimize its fees and expenses in the case. In the original motion, Mr. Esposito and BRG said that they had provided the parties-in-interest in the case with a fee estimate in the amount of $150,000. BRG has agreed that, in the event BRG Capstone determines that its total fees will exceed the $150,000 estimate, BRG Capstone will promptly notify the Archdiocese and all committees appointed in the case. Several parties responded to the motion. The Debtor, in its response, stated that the representative should confirm the fee estimate. London Market Insurers said that if the Court enters an order appointing a unknown claim representative, such representative will represent only those persons who were sexually abused, who were under a disability recognized by Minn. Stat. Section 541.15, and who did not have a claim filed on their behalf, all before the confirmation date. About the Archdiocese of St. Paul The Archdiocese of Saint Paul and Minneapolis was originally established by the Vatican in 1850 and serves a geographical area consisting of 12 greater Twin Cities metro-area counties in Minnesota, including Ramsey, Hennepin, Anoka, Carver, Chisago, Dakota, Goodhue, Le Sueur, Rice, Scott, Washington, and Wright counties. There are 187 parishes and approximately 825,000 Catholic individuals in the region. These individuals and parishes are served by 3999 priests and 173 deacons. The Archdiocese of St. Paul and Minneapolis filed for Chapter 11 protection (Bankr. D. Minn. Case No. 15-30125) in Minnesota on Jan. 16, 2015, saying it has large and growing liabilities related to child sexual abuse and that its pension obligations are underfunded. The Debtor disclosed $45,203,010 in assets and $15,890,460 in liabilities as of the Chapter 11 filing. The Debtor has tapped Briggs and Morgan, P.A., as Chapter 11 counsel; BGA Management LLC d/b/a Alliance Management as financial advisor; Lindquist & Vennum LLP as attorney. Eleven other dioceses have commenced Chapter 11 bankruptcy cases in the United States to settle claims from current and former parishioners who say they were sexually molested by priests. U.S. Trustee for Region 12 appointed five creditors to serve on the official committee of unsecured creditors. The U.S. Trustee appointed five creditors to serve on the Committee of Parish Creditors. Ginny Dwyer appointed as the acting chairperson of the committee until such time as the members can meet and officially elect their own person. * * * The Debtor's exclusive period for filing a Chapter 11 plan and disclosure statement ends on Nov. 30, 2015. AVON PRODUCTS: Fitch Affirms 'B+' Long-term Issuer Default Rating ----------------------------------------------------------------- Fitch Ratings affirms Avon Products, Inc.'s Long term Issuer Default Rating (IDR) of 'B+' with a Negative Outlook upon the announcement that Cerberus Capital Management (Cerberus) will (i) make a $435 million 5% convertible preferred equity investment in Avon, which represents 16.6% of diluted shares outstanding on an as-converted basis, and (ii) invest $170 million for an 80% ownership in Avon North America, which will be separated into a privately held entity. These transactions are expected to close in spring 2016. In addition, Avon will suspend its dividend of approximately $108 million annually effective the first quarter of 2016. KEY RATING DRIVERS Fitch views the announcements positively in that the North American business separation -- which had LTM sales of $731 million and estimated EBITDA of $4 million -- removes a drag on both operating trends and on management's time, and the cash infusion and dividend suspension will provide a meaningful boost to Avon's liquidity. However, as Fitch had factored in minimal contribution from the North American business, the credit story has not materially changed. Avon's key international markets remain under considerable pressure as reflected in flattish-to-slightly negative organic growth trends. Stabilizing the Outlook depends on Avon's ability to articulate and begin to execute a credible turnaround plan to stabilize volume and representative growth and stem EBITDA declines at its January 2016 Analyst Day. Of note, two key markets, Brazil and Russia, have seen increasing levels of competition in the past several years and are in recession. Argentina, a smaller market, appears headed for a recession next year. As a result, Avon's Latin America region, which generated almost 50% of revenues (moderately more post-separation) and 70% of adjusted operating profit for the nine months ended Sept. 30, 2015, has recorded negative volumes and rep count declines. These are likely to continue given the economic outlook and the lack of a plan to reverse the tide. Negative F/X translation and transaction are having an outsized impact on Avon's recent financial performance, with a strong orientation toward the emerging markets of Brazil and Russia. The company absorbed $315 million of F/X translation and transaction costs in 2014. The run-rate year-to-date is higher at around $350 million. KEY ASSUMPTIONS -- The proposed transactions close as anticipated in spring 2016; -- Organic revenue growth up around 1% in 2015, with negative volume trends being offset somewhat by high pricing. Positive organic growth of 2% in 2016 excluding North America; -- Currencies hold at current levels negatively affecting revenues by about 19% in 2015 year, in line with management's November 2015 guidance; -- EBITDA of approximately $575 million in 2015 and $525 million to $550 million in 2016; -- Free cash flow negative in the $150 million range in 2015. Preliminary FCF expected to be positive in 2016, north of $125 million with the dividend suspension as well as lower pension payments and royalty stream from Avon North America to Avon. RATING SENSITIVITIES Positive Future developments that may, individually or collectively, lead to a positive rating action: -- Stabilizing the Outlook is dependent on Avon's ability to articulate and begin to execute a credible turnaround plan at its January 2016 Analyst Day. Negative: Future developments that may, individually or collectively, lead to a negative rating action: -- Continued sales declines, which would be exemplified by active representative and volume declines accelerating toward and being sustained in the mid-single-digits range; -- Significant EBITDA contraction to a level below $500 million. -- Negative FCF past 2015 which would occur if the organization has not been rightsized for what appears to be a less than $7 billion-revenue company which would eat into liquidity; -- Sustained increases in leverage over 5x. LIQUIDITY Avon's liquidity should improve with the dividend suspension and the receipt of a net $505 million from Cerberus in 2016. The $505 million is net of $100 million that Avon will contribute to Avon North America to partially offset the approximately $230 million in pension and other liabilities. Avon intends to apply $250 million of proceeds towards repaying a portion of the $850 million of debt maturing over 2018 and 2019. At present, cash balances are unrestricted and available for debt repayment but had declined to $587 million at the end of September 2015 from $1.2 billion in 2013. Including full availability on its $400 million revolver that matures in 2020, total liquidity was approximately $1 billion. Fitch expects FCF (operating cash flow less capital expenditures and dividends) be in the negative $150 million range in 2015. Preliminary FCF is expected to be positive in 2016, north of $125 million with the dividend suspension as well as lower pension payments.. Depending on how the $435 million preferred equity is structured, the instrument could have an equity credit component. Fitch may assign that component after documentation review. In the interim, if viewed solely as debt, pro forma leverage as of the last 12 months ended Sept. 30, 2015 would increase modestly to 3.7x from 3.4x. FULL LIST OF RATING ACTIONS Fitch has affirmed the followng ratings: -- IDR at 'B+'; -- Senior unsecured notes at 'B+/RR4'; -- Short-term IDR at 'B'. The Rating Outlook is Negative. BACK9NETWORK INC: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Back9Network Inc. 15-22192 80 Statehouse Square #158 Hartford, CT 06123 Swing by Swing Golf, Inc. 15-22193 80 State House Square #158 Hartford, CT 06123 Type of Business: The Debtors' primary businesses consist of developing and selling media content and information over the internet. Chapter 11 Petition Date: December 23, 2015 Court: United States Bankruptcy Court District of Connecticut (Hartford) Judge: Hon. Ann M. Nevins Debtor's Counsel: Thomas J. Farrell, Esq. HINCKLEY, ALLEN & SNYDER LLP 20 Church Street Hartford, CT 06103 Tel: 860-725-6200 Fax: 860-278-3802 Email: tfarrell@haslaw.com - and - William S. Fish, Esq. HINCKLEY, ALLEN & SNYDER LLP 20 Church Street Hartford, CT 06103 Tel: 860-331-2700 Fax: 860-278-3802 Email: wfish@hinckleyallen.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Charles Cox, chief executive officer. List of Back9Network's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Associated Construction Construction $388,617 1010 Wetgersfield Ave Improvements Suite 304 Hartford, CT 06114 Banc of California Equipment Lease $110,754 P.O. Box 2149 Gig Harbor, WA 98335 Cheri Sundae Productions Content $217,000 Acquisition Constitution Plaza Holdings Lease $179,524 Day Pitney Legal Services $267,069 PO Box 416234 Boston MA DirecTV Corporate Marketing $100,000 Edge Technology Services Employment $309,964 100 Roscommon Drive Services Suite 120 Middletown, CT 06457 Encompass Digital Media, Inc. Services $114,894 Forum Financial Services Leased $830,375 275 West Campbell Rd. Equipment Suite 320 Richardson, TX 75080 Getty Images GPS, LLP Photo Rights $212,421 Grass Valley Equipment $684,971 2255 N. Ontario Lease Stree, Suite 170 Burbank, CA 91504 HB Communications, Inc. Equipment $121,696 Lease IMG Productions Content $780,000 432 W. 45th St. Acquisition New York, NY 10036 Legacy Distribution, LLC Content $100,366 Syndication M2 Lease Funds Lease $114,451 Property Phoenicia Sport & Entertainment Sales Team $533,320 P.O Bo.x 95 Contract Vendor Center Valley, PA 18034 Phoenix Life Insurance Company Landlord $110,551 Proskauer Rose LLP Legal Services $133,580 Troutman Sanders LLP Attorneys $176,541 VertitechIT Leased Equipment $117,789 BACK9NETWORK INC: Files for Chapter 11, Working on Plan ------------------------------------------------------- Back9Network Inc. and Swing by Swing Golf, Inc., engaged in the business of developing and selling media content and information over the internet, filed Chapter 11 bankruptcy petitions (Bankr. D. Conn. Case Nos. 15-22192 and 15-22193, respectively) on Dec. 23, 2015. Back9 was founded and incorporated in July, 2010, by a small group of golf industry executives for the purpose of building a premier golf lifestyle and entertainment 24/7-television network and digital media company. Back9 located its headquarters and operations in Hartford, Connecticut because of the State of Connecticut's attractive media tax credit programs and the local availability of qualified and talented employees for its television network. Swing by Swing was acquired to promote and develop the mobile application business of the same name in conjunction with marketing and driving audience awareness of Back9's content. According to a document filed with the Court, despite intense efforts to generate additional advertising revenue, raise long term capital, and secure additional television distribution, Back9 ultimately was forced to discontinue its television operations on Feb. 23, 2015. "Due to the increasing consolidation within the U.S. pay television distribution industry and the deceleration of U.S. pay television household growth, Back9 was not able to attract the long-term financing needed to grow and operate a 24/7 U.S. cable network," said William S. Fish, Jr., Esq., at Hinckley, Allen & Snyder LLP, counsel to the Debtors. Contemporaneously with the cessation of Back9's television operations, Back9 was forced to layoff all of its employees, with the exception of a small group of senior executives who remained and took no salaries for an extended period of time as they worked on restructuring the Debtors. As of the Petition Date, Back9 has only two remaining senior executives, each of whom has been paid only $80,000 over the past 13 months as they worked to restructure the Debtors. As part of this restructuring effort, beginning in March, 2015, Cardinal Advisors, LLC, the Debtors' financial advisor, reached out to over 90 financial and strategic investors to explore a revamp of the Debtors' businesses. In April, 2015, Back9's board of directors signed a letter of intent with a California-based private equity firm, which proposed to purchase the Debtors' assets and restructure the Debtors' liabilities outside of a bankruptcy process. In July, 2015, the State of Connecticut Department of Economic and Community Development -- the Debtors' only pre-petition secured creditor -- determined that in order to best protect its interests, it could not accept this letter of intent because it believed that any restructuring of the Debtors needed to be pursued through a Chapter 11 bankruptcy process. As a result, between July and September, 2015, Cardinal again reached out to numerous financial and strategic investors to explore interest in investing in the Debtors' businesses through a Chapter 11 bankruptcy process. The Debtors intend to file a plan of reorganization based on significant negotiations that have taken place pre-petition. The proposed plan will be based on the digital platform that the Debtors have developed. Specifically, despite failing to create a profitable television network, the Debtors have succeeded in forming a compelling online platform consisting of widely-used online websites, the Golf Application and an email newsletter with a subscriber base of 1.7 million users. The Debtors said that the Digital Platform will leverage and grow the digital media assets and the audience built by Back9 and Swing by Swing. The petitions were signed by Charles Cox, the chief executive officer. The Debtors estimated assets and liabilities of $10 million to $50 million. The Debtors have engaged Hinckley, Allen & Snyder LLP as counsel. Judge Ann M. Nevins has been assigned the cases. BACK9NETWORK INC: Obtains $2-Mil. DIP Commitment From GolfWorks --------------------------------------------------------------- Back9Network Inc. and Swing by Swing Golf, Inc., seek authority from the Bankruptcy Court to obtain $2 million post-petition senior secured financing from GolfWorks LLC. The DIP Loan will be used to fund the Debtors' working capital needs consistent with the budget and interim budget approved by the DIP Lender and the State of Connecticut Department of Economic and Community Development. A significant portion of the proceeds of the DIP Loan are also expected to be used to fund the Debtors' proposed plan of reorganization. The DIP Loan will mature on March 31, 2016. Interest under the DIP Loan is 6 percent per annum, with default interest of an additional 6 percent per annum. "Without securing a post-petition source of capital, the Debtors will be unable to continue to operate, maintain, and promote the Digital Platform and will be unable to execute the intended expansion and restructuring," says William S. Fish, Jr., Esq., at Hinckley, Allen & Snyder LLP, counsel to the Debtors. DECD, the Debtors' only pre-petition secured creditor, has consented to the DIP Loan and will receive as adequate protection a lien on all presently owned and hereafter acquired assets of the Debtors as adequate protection. The Debtors intend to use the initial proceeds of the DIP Loan to expand the Digital Platform by hiring additional employees and by increasing sales and marketing efforts, all with the goal of having an improved and expanded Digital Platform when the golf season begins again next spring. The Debtors intend to pursue these growth objectives while retaining its principal place of business in Connecticut. Moreover, the Debtors propose to use the cash collateral of DECD. As of the Petition Date, the amount of cash collateral was below $30,000 and DECD has consented to the use of cash collateral. About Back9Network Back9Network Inc. and Swing by Swing Golf, Inc., engaged in the business of developing and selling media content and information over the internet, filed Chapter 11 bankruptcy petitions (Bankr. D. Conn. Case Nos. 15-22192 and 15-22193, respectively) on Dec. 23, 2015. The petitions were signed by Charles Cox, the chief executive officer. The Debtors estimated assets and liabilities of $10 million to $50 million. The Debtors have engaged Hinckley, Allen & Snyder LLP as counsel. Judge Ann M. Nevins has been assigned the case. BACK9NETWORK INC: Seeks Joint Administration of Cases ----------------------------------------------------- Back9Network, Inc., and Swing by Swing Golf, Inc., ask the Bankruptcy Court to enter an order directing the joint administration of their cases. Federal Bankruptcy Rule 1015(b) provides, in relevant part, that if "two or more petitions are pending in the same court by or against. .. a debtor and an affiliate, the court may order a joint administration of the estates." Back9 is the parent company of Swing by Swing and owns 100% of its issued and outstanding stock. Although Swing by Swing has no creditors, it owns the highly popular golf course application that is part of the Debtors' "Digital Platform" that will be the focus of the Debtors' operations going forward. The Debtors maintain creditors will be best served by joint administration rather than monitoring and participating in two separate cases. Moreover, the Debtors said the resulting efficient and convenient administration of the Debtors' interrelated Chapter 11 cases will yield cost savings for both estates. The Debtors thus request that the Court maintain one docket file with a consolidated caption, use a single docket for administration matters, and allow and authorize them to file monthly operating reports on a single consolidated basis. About Back9Network Back9Network Inc. and Swing by Swing Golf, Inc., engaged in the business of developing and selling media content and information over the internet, filed Chapter 11 bankruptcy petitions (Bankr. D. Conn. Case Nos. 15-22192 and 15-22193, respectively) on Dec. 23, 2015. The petition was signed by Charles Cox, the chief executive officer. The Debtors estimated assets and liabilities of $10 million to $50 million. The Debtors have engaged Hinckley, Allen & Snyder LLP as counsel. Judge Ann M. Nevins has been assigned the cases. BACK9NETWORK INC: Wants to Employ Hinckley Allen as Counsel ----------------------------------------------------------- Back9Network Inc. and Swing by Swing Golf, Inc., seek permission from the Bankruptcy Court to employ Hinckley, Allen & Snyder LLP as their counsel to: (a) advise the Debtors of their rights, powers and duties as Debtors and Debtors-in-possession continuing to operate and manage their businesses and properties; (b) advise the Debtors concerning and assist in the negotiation and documentation of financing agreements, debt restructuring, cash collateral orders and related transactions; (c) review the nature and validity of liens asserted against the property of the Debtors and advise the Debtors concerning the enforceability of those liens; (d) advise the Debtors concerning the actions that it might take to collect and to recover property for the benefit of their estates; (e) prepare on behalf of the Debtors certain necessary and appropriate applications, motions, pleadings, draft orders, notices, schedules and other documents and review all financial and other reports to be filed in this Chapter 11 case; (f) advise the Debtors concerning, and prepare responses to, applications, motions, pleadings, notices and other papers which will be filed and served in this Chapter 11 case; (g) counsel the Debtors in connection with the formulation, negotiation and promulgation of a plan of reorganization and related documents; and (h) perform all other legal services for and on behalf of the Debtors that will be necessary or appropriate in the administration of the Chapter 11 case. HAS will charge the Debtors for its legal services on an hourly basis in accordance with its ordinary and customary rates: New Associates $235 Senior Partners $780 Legal Assistants $175-$385 HAS has received a prepetition retainer of $65,000 for legal services rendered in connection with the filing of the Chapter 11 petition. To the best of the Debtors' knowledge, HAS has no connection with them, their creditors or any other party-in-interest. About Back9Network Back9Network Inc. and Swing by Swing Golf, Inc., engaged in the business of developing and selling media content and information over the internet, filed Chapter 11 bankruptcy petitions (Bankr. D. Conn. Case Nos. 15-22192 and 15-22193, respectively) on Dec. 23, 2015. The petitions were signed by Charles Cox, the chief executive officer. The Debtors estimated assets and liabilities of $10 million to $50 million. The Debtors have engaged Hinckley, Allen & Snyder LLP as counsel. Judge Ann M. Nevins has been assigned the cases. BANESCO USA: Fitch Affirms IDRs 'B+' LT Issuer Default Rating ------------------------------------------------------------- Fitch Ratings has affirmed the Long-and Short-term Issuer Default Ratings (IDRs) of Banesco USA (BNSC) at 'B+ and 'B', respectively. The Rating Outlook is Stable. KEY RATING DRIVERS IDRS AND VIABILITY RATINGS BNSC's IDRs reflect the company's geographic and product concentration, mainly in South Florida commercial real estate (CRE), and a loan portfolio profile that includes exposure to economic conditions in Latin America, primarily Venezuela. Further, BNSC's ratings reflect a very limited franchise in South Florida, and historically weak earnings metrics which have been negatively affected by costs associated with remediating its ongoing consent order with the FDIC stemming from BSA/AML deficiencies. Fitch expects successful remediation of the consent order without material fines and/or negative findings by regulators. Fitch considers BNSC's asset quality profile to be in line with its rating level. The company's ratings are supported by its adequate capital levels and good liquidity profile. Although BNSC is affiliated with the Banesco Group and shares common ownership, BNSC does not incorporate a holding company structure and there is no direct ownership linkage to Banesco Banco Universal (BBU) in Venezuela. BNSC benefits from the 'Banesco' brand, its strong recognition in Latin America, and BBU's market leading position in Venezuela. BBU is Venezuela's largest privately held bank in terms of deposit and assets. In Fitch's opinion, contagion risk from BBU, which shares the same brand, is limited at this time. Fitch notes that there may be risks to BNSC's Venezuelan depositors seeking other U.S.-based banking institutions in which to deposit their monies in the event there is concern regarding BNSC or the Banesco Group. However, to date, BNSC has actually benefited from its association with the Banesco brand, despite volatility in Venezuela, as demonstrated by its relatively stable deposit base. Should a change in depositor behavior become evident, BNSC's ratings may be impacted. The company's good liquidity profile is driven by its large core deposit base, and benefits from a high volume of international deposits which make up 54% of total deposits. The majority of international funding is sourced from Venezuelan depositors who have turned to U.S. banks as a safe haven. These deposits typically have a very low attrition rate, limited rate sensitivity and provide a stable source of low-cost funding. In an effort to reduce reliance on Venezuelan funding, management has been working to grow domestic deposits in conjunction with loan growth. Fitch views the diversification of funding sources positively. Furthermore, BNSC maintains a high level of cash and liquid assets to support immediate liquidity needs. In Fitch's view, the lack of access to external capital is considered a rating constraint. That said, BNSC's capitalization is appropriate for the risk profile of the institution. As of Sept. 30, 2015, the company's Fitch core capital/risk weighted assets ratio was 11.85% and its tangible common equity/tangible assets ratio was 9.30%. Although Fitch considers the capital base sufficient to support risks within the business mix, further balance sheet growth coupled with limited profitability may impact capital ratios. BNSC's earnings measures tend to be weak when compared to other community banks and are considered a rating constraint. Fitch attributes this to historically higher efficiency ratios, even excluding costs associated with remediating the FDIC consent order, which have been partially offset by stronger margins. Net interest margins, however, have been historically supported by accretion income associated with credit impaired loans purchased from Security Bank as well as deposit cost advantages associated with its low-cost international deposits. Prospectively, we expect earnings to be constrained as the company focuses on diversifying its deposit mix by adding more domestically-sourced deposits, which are higher cost, and as accretion income declines. Further, earnings may be hindered given the ongoing focus on remediating its consent order, coupled with still-low interest rates. Fitch considers BNSC's asset quality profile to be reflective of the rating level. The company has exhibited strong growth in recent years, particularly in CRE and commercial credits. Moreover, Fitch also considers BNSC to be product and geographically concentrated, as CRE represents over 400% of capital and is concentrated in the Miami-Dade MSA. Additional credit risk considerations include the effects of sovereign risk in the international loan portfolio, which makes up approximately 14% of total loans. Over half of the international portfolio consists of exposure to borrowers in Venezuela and is mainly secured by residential, and, to a lesser extent, CRE properties in South Florida as well as cash deposits. Although economic instability remains a concern in Venezuela, credit risk is offset by the strong level of collateral protection and the company's prudent non-resident credit underwriting standards. Although credit performance has been solid over the past several quarters, and has dramatically improved since the financial crisis, asset quality indicators may be benefitting from recent rapid loan portfolio growth. SUPPORT RATING AND SUPPORT RATING FLOOR BNSC has a Support Rating of '5' and Support Rating Floor of 'NF'. In Fitch's view, BNSC is not systemically important and, therefore, the probability of support is unlikely. The IDRs and VRs do not incorporate any support. Historically, BNSC's principal shareholders have demonstrated a willingness to provide capital; however, Fitch's rating analysis does not assume capital support from the shareholders. LONG- AND SHORT-TERM DEPOSIT RATINGS BNSC's uninsured deposit ratings are rated one-notch higher than the company's IDR because U.S. uninsured deposits benefit from depositor preference. U.S. depositor preference gives deposit liabilities superior recovery prospects in the event of default. RATING SENSITIVITIES IDRS AND VRS Sustained and improved profitability combined with the maintenance of strong credit performance would be considered positive rating drivers. Given BNSC's ties to the Banesco Group and in particular the Venezuelan deposit base, material positive rating momentum may only occur following stabilization of the operating environment in Venezuela. Ratings could be negatively affected if BNSC experienced a declining trend in its depositor base and/or if unexpected adverse events affect Banesco Group. Fitch notes that there may be risks to BNSC's Venezuelan deposit base such as depositors seeking other U.S.-based banking institutions in which to deposit their monies given concerns with BBU and/or depositors withdrawing their funds to make routine operational purchases as inflation rises further in Venezuela. Banesco's recent growth in commercial and industrial (C&I) loans has outpaced peers. Credit performance has remained stable to date. However, should credit losses deteriorate materially, thereby impacting capital, negative rating action could ensue. SUPPORT RATING AND SUPPORT RATING FLOOR BNSC's Support Rating and Support Rating Floor are sensitive to Fitch's assumption around capacity to procure extraordinary support in case of need. Since BNSC's Support and Support Rating Floors are '5' and 'NF', respectively, there is limited likelihood that these ratings will change over the foreseeable future. LONG- AND SHORT-TERM DEPOSIT RATINGS The ratings of long- and short-term deposits issued by BNSC are primarily sensitive to any change in BNSC's long- and short-term IDRs. PROFILE Banesco USA was established in 2006 by the principal shareholders of the Banesco Group and provides traditional banking services, primarily real estate financing, to retail clients as well as to small-to-medium-sized companies. Services are offered via a total of six branches with three throughout Miami-Dade County, two in Broward County and one in San Juan, Puerto Rico. Banesco USA is based in Coral Gables, FL. Fitch has affirmed the following: Banesco USA (BNSC) -- Long-term IDR at 'B+'; Outlook Stable; -- Short-term IDR at 'B'; -- Long-term deposits at 'BB-'; -- Short-term deposits at 'B'; -- Viability Rating at 'b+'; -- Support at '5'; -- Support Floor at 'NF'. BERNARD L. MADOFF: Altegrity Unit to Pay $24M to Settle Claims -------------------------------------------------------------- Bryan Koenig at Bankruptcy Law360 reported that an Altegrity subsidiary asked the Delaware bankruptcy judge overseeing its parent's Chapter 11 proceeding on Dec. 17, 2015, to sign off on a $24 million settlement with claimants bilked in Robert Allen Stanford's $7 billion Ponzi scheme. Under the proposed settlement, Altegrity subsidiary Kroll LLC will pay the money in cash to the officially established committee of Stanford's bilked investors, well as the receiver appointed to take control of Stanford's assets, and others serving as liquidators of Stanford's various companies. 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. BG MEDICINE: Withdraws BGM Galectin-3 Premarket Notification ------------------------------------------------------------ BG Medicine, Inc., announced that it has submitted to the FDA a notice of withdrawal of its 510(k) premarket notification filing with the US Food and Drug Administration that was submitted in order to obtain regulatory clearance to market its BGM Galectin-3 Test for a potential new indication for use as an aid in the assessment of the near-term risk of fatal cardiovascular events in older adults who have no prior history of cardiovascular disease, cerebrovascular disease or vascular disease. As previously disclosed, on March 31, 2015, BG Medicine filed for 510(k) premarket notification with the FDA in order to obtain regulatory clearance for this new indication for the manual micro-titer formatted (manual version) BGM Galectin-3 Test. In August 2015, the Company received a request for additional information from the FDA, including information regarding the intended use of its test for this new indication, its clinical validation study and additional statistical analyses. The Company submitted its response to the FDA in November 2015. On Dec. 17, 2015, the Company conducted a follow up discussion with the FDA regarding its November 2015 response. On Dec. 18, 2015, following that additional dialogue with the FDA, the Company concluded that demonstrating the clinical utility of its test for this proposed new indication would require a broadening of the defined indication to include aiding in the assessment of the near-term risk of both fatal and non-fatal cardiovascular events in the Company's study population and, as a result, a new 510(k) submission. Accordingly, the Company submitted to the FDA a notice of withdrawal of the 510(k) notification that it submitted on March 31, 2015. The Company plans to evaluate what additional data, studies and analyses would be required to support a new submission and a broader indication for use. "We believe that the decision to withdraw this submission and to evaluate the possibility of pursuing the assessment of near-term risk for both fatal and non-fatal cardiovascular events among older adults, a more clinically useful indication for use, provides the best opportunity to create value from the work that we have completed to date," said Paul R. Sohmer, M.D., president and chief executive officer of BG Medicine, Inc. "That being said, our primary focus near term remains the U.S. market introduction of automated testing for galectin-3." The BGM Galectin-3 Test, a manual micro-titer based assay for galectin-3, was cleared by the FDA in November 2010 and is currently in use in both the U.S. and abroad as an aid for evaluating the risk of adverse events, including unplanned hospitalizations, and cardiovascular and other fatal events, in patients with chronic heart failure. Automated testing for galectin-3 in patients with chronic heart failure was cleared by the FDA in December 2014 and introduced in the U.S. in mid-2015. BG Medicine's primary focus has been to support the market introduction of automated testing for galectin-3 in patients with chronic heart failure since the first automated test for galectin-3 was introduced in the U.S. in mid-2015. "We continue to believe that the clinical and commercial value of testing for galectin-3 may extend beyond its current indication for use," said Dr. Sohmer. "As a result, subject to obtaining significant additional financing to support the clinical studies required for clearance, or approval, by regulatory bodies, such as the FDA, we expect to continue to pursue new indications for use and clinical claims that may expand the clinical utility and market opportunity for galectin-3 testing." About BG Medicine Waltham, Mass.-based BG Medicine is a diagnostics company focused on the development and commercialization of novel cardiovascular diagnostic tests to address significant unmet medical needs, improve patient outcomes and contain healthcare costs. The Company is currently commercializing two diagnostic tests, the first of which is the BGM Galectin-3 test, a novel assay for measuring galectin-3 levels in blood plasma or serum for use as an aid in assessing the prognosis of patients diagnosed with heart failure. The Company's second diagnostic test is the CardioSCORE test, which is designed to identify individuals at high risk for near-term, significant cardiovascular events, such as heart attack and stroke. BG Medicine reported a net loss of $8.06 million in 2014, a net loss of $15.8 million in 2013 and a net loss of $23.8 million in 2012. As of Sept. 30, 2015, the Company had $3.35 million in total assets, $2.03 million in total liabilities, $2.59 million in convertible preferred stock, and a total stockholders' deficit of $1.27 million. Deloitte & Touche LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's recurring losses from operations, recurring cash used in operating activities and accumulated deficit raise substantial doubt about its ability to continue as a going concern. BRADLEY S. KIDWELL: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Bradley S. Kidwell Family, LP dba McKinney Flour Mill 504 Bluebonnet Allen, TX 75002 Case No.: 15-42268 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: December 24, 2015 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Judge: Hon. Brenda T. Rhoades Debtor's Counsel: Reedy Macque Spigner, Esq. SPIGNER & ASSOCIATES, PC 555 Republic Drive, Suite 430 Plano, TX 75074 Tel: (972) 881-0581 Fax: (972) 424-1309 Email: spigner@glocktech.net Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Bradley Kidwell, president. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. C COMPANY HYDROVAC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: C Company General Contractors, LLC aka C Company aka C Company Hydrovac 506 2nd Street East P.O. Box 2739 Williston, ND 58802 Case No.: 15-30554 Chapter 11 Petition Date: December 23, 2015 Court: United States Bankruptcy Court District of North Dakota (Fargo) Judge: Hon. Shon Hastings Debtor's Counsel: Kip M. Kaler, Esq. KALER DOELING, PLLP 3429 Interstate Blvd. S. P.O. Box 9231 Fargo, ND 58106 Tel: 701-232-8757 Fax: 701-232-0624 Email: kip@kaler-doeling.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Seth Church, managing member. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ndb15-30554.pdf CAMBRIDGE ACADEMY: Fitch Affirms 'BB-' Rating on Revenue Bonds -------------------------------------------------------------- Fitch Ratings has affirmed the 'BB-' rating on the $7.2 million outstanding charter school revenue bonds, series 2010, issued by the Industrial Development Authority of the County of Pima, Arizona on behalf of Cambridge Academy East (CAE). The Rating Outlook is Stable. SECURITY The bonds are a general obligation of CAE, secured by a first mortgage on the financed facilities and a cash-funded debt service reserve sized to transaction maximum annual debt service (TMADS). There is an intercept mechanism in place directing state funding disbursements to the trustee to cover debt service on the bonds before monies are released to the school for operations. The Fitch rating does not incorporate the intercept mechanism. KEY RATING DRIVERS ADEQUATE FINANCIAL PERFORMANCE: CAE's operating margin weakened in fiscal 2015, following two consecutive years of improvement. While the margin was negative 2.2% on a GAAP basis, annual coverage was sufficient at 1.0x. The decline was attributable to lower state per pupil funding due to a decline in average daily membership and a one-time loss on investment property. CAE's very thin balance sheet and high debt burden remain rating concerns. ENROLLMENT VOLATILITY BUT STRONG ACADEMIC PERFORMANCE: CAE's Queen Creek campus continues to experience enrollment declines resulting in part from increased competition from neighboring charter and district schools. Student academic performance improved at both campuses in 2014, with both campuses receiving higher scores and overall ratings of 'A' by the Arizona State Board for Charter Schools (ASBCS or the board). WEAK FINANCIAL CUSHION: Characteristic of most charter schools rated by Fitch, CAE's balance sheet resources remain limited on both a nominal and ratio basis, providing minimal cushion relative to operating expenses and debt. HIGH DEBT BURDEN: CAE's debt burden remains high; TMADS was 20.8% of fiscal 2015 operating revenue. The debt to net income ratio, measuring the number of years of cash flow needed to repay outstanding principal was also high, at 10.7 years, an increase from 7.3 in fiscal 2014. The school was able to cover TMADS from operations for the past three fiscal years (1.0x in 2015, weaker than 1.6x in fiscal 2014), although debt manageability could be stressed going forward if enrollment declines persist. RATING SENSITIVITIES ABILITY TO STABILIZE ENROLLMENT: Given Cambridge Academy East's high reliance on per pupil funding for operating support, its inability to stabilize enrollment and improve operating margins would stress operations and cause negative rating pressure. CHARTER RELATED CONCERNS: A limited financial cushion; substantial reliance on enrollment-driven per pupil funding; and charter renewal risk are credit concerns common among all charter schools that, if pressured, could negatively impact the rating. CREDIT PROFILE Founded by a family of educators, CAE is a charter school serving grades K-8. Originally chartered in 2002, CAE is in year 13 of its initial 15-year charter. CAE has submitted their intent to renew under their charter to the ASBCS, the charter authorizer. ASBCS notes that CAE currently remains in compliance with all requirements under its charter. The school began operations in 1999 and currently operates two campuses, Mesa currently serving grades K-6 and Queen Creek currently serving grades K-8, both situated in Maricopa County, AZ. Fitch continues to view CAE's highly interconnected board and administrative structure as less than ideal. Close ties maintained between the board, senior management, and the founding family constitutes a governance structure inconsistent with the independence typically expected by Fitch. However, CAE's management team remains committed and effective, despite it and the board maintaining multiple inter-related business and family ties. VOLITILE OPERATING RESULTS Operating results remain volatile. Margins weakened in fiscal 2015 to negative 2.2%, following marked improvement to positive 5.7% in fiscal 2014 from negative 5.3% in fiscal 2013. Management reports that weak fiscal 2015 results were attributable to a one-time loss on investment property and lower state per pupil funding resulting from lower than projected average daily membership. CAE has a small revenue base, contributing to operating volatility, with just $3.2 million in operating revenue for fiscal 2015. Typical of most charter schools, revenue flexibility is very limited with about 90% of CAE's operating revenues derived from state funding. Favorably, the funding environment improved slightly in Arizona over the past two years. The fiscal 2015 base level was $3,373 per student with additional assistance of $1,708 for K-8, a 1.4% increase over the prior year. For fiscal 2016, the base level improved slightly (1.6%) to $3,427 with additional assistance of $1,735. Management estimates that state funding should increase by a minimum of 2% annually over the next few years. The school's fiscal 2016 budget shows a slight increase in revenues and expenditures of approximately 2% over the 2015 budget. As of the end of fiscal 2016 first quarter (Sept. 30), CAE recorded net income of $82,000 and management expects to end the fiscal year with slightly positive operations. INCREASED COMPETITION; ENROLLMENT VOLATILITY The Queens Creek campus is facing increased competition - three new charters opened this past year. Additionally, the campus has been plagued by administrative issues leading to several teacher resignations which has negatively impacted enrollment. Concerns, however, are partially offset by strong academic performance and management's success to date to manage expenses accordingly. For 2014, the Mesa campus retained its state accountability grade of 'A', with an overall score of 78 (up from 70 in 2013). The Queen Creek campus was upgraded to 'A' from 'B' following implementation of a turnaround plan, with its score improving to 87.5 from 68.8 in 2013. Both campuses met their annual measurable objectives, which are used to measure school performance. State academic performance measures are being revised so grades will be on hiatus for 2015 and 2016 and when available will not be comparable to 2014. Due to the competitive environment, CAE has experienced ongoing enrollment pressure in recent years. Average daily membership (ADM), which determines state per pupil funding, fell in fiscal 2016 to 426 as of the 40-day count compared to 438 and 544 in fiscal 2015 and 2014, respectively. For the 2015-2016 school year, 458 students are presently enrolled at CAE's two campuses; 220 at Mesa and 238 at Queen Creek compared to 463 for the 2014-2015 school year. While the Mesa campus gained 22 students, Queens Creek enrollment declined by 27 students. CAE's high state rating as measured by academic performance should help the campuses to maintain and/or restore some level of demand despite a competitive environment. Fitch will continue to monitor CAE's enrollment and demand trends, noting that further enrollment declines could stress operating performance and lead to negative rating action. WEAK LIQUIDITY AND HIGH DEBT BURDEN CAE's balance sheet liquidity remains limited and provides a very thin financial cushion relative to operating expense and debt. Available funds, or cash and cash equivalents not permanently restricted, decreased to $394,000 as of June 30, 2015 from $502,000 as of June 30, 2014, and only covered fiscal 2015 operating expenses ($3.2 million) and outstanding debt ($8.0 million) by a low 12.2% and 5.3%, respectively. The series 2010 bonds and a small capital lease (approximately $19,000) are the school's only debt outstanding. Its debt burden remains high and increased in fiscal 2015 with TMADS of about $660,000 representing 20.8% of fiscal 2015 operating revenues. Coverage of TMADS of 1.0x from 2015 operations was lower than the past two years - 1.1x and 1.6x in fiscal years 2013 and 2014, respectively - but still better than previous years (2011 and 2012 had below 1x coverage). Pro forma debt to net available income was high at 10.7x in fiscal 2015 and worse than in prior years as fiscal 2015 operating results were lower. CAE has no material capital needs or additional borrowing plans for either campus, which is viewed positively as Fitch does not believe CAE has any additional debt capacity. Rating stability will depend on CAE's ability to maintain breakeven to positive operating results, while stabilizing enrollment and controlling expenses. CAPELLA HEALTHCARE: S&P Affirms Then Withdraws 'B' CCR ------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Capella Healthcare Inc. and removed the rating from CreditWatch, where it was placed with positive implications on July 28, 2015. The outlook is stable. S&P is subsequently withdrawing all ratings, including all issue-level ratings, on Capella. "The rating actions follow the completion of MPT's acquisition of Capella's hospital properties and a minority stake in the company's operations for $900 million, and the retirement of all rated Capella debt," said Standard & Poor's credit analyst Shannan Murphy. While Capella's financial debt has been repaid, the company is incurring $300 million in preferred equity (which our criteria treat as debt) and a long-term lease obligation with respect to its hospitals. For this reason, S&P believes that credit quality is unchanged relative to the pre-acquisition capital structure. CARSON CIVIC CENTER: Case Summary & 3 Top Unsecured Creditors ------------------------------------------------------------- Debtor: Carson Civic Center Property, LLC 3815 Alonzo Avenue Encino, CA 91316 Case No.: 15-14138 Chapter 11 Petition Date: December 22, 2015 Court: United States Bankruptcy Court Central District of California (San Fernando Valley) Judge: Hon. Maureen Tighe Debtor's Counsel: Raymond H Aver, Esq. LAW OFFICES OF RAYMOND H AVER APC 1950 Sawtelle Blvd Ste 120 Los Angeles, CA 90025 Tel: 310-473-3511 Fax: 310-473-3512 Email: ray@averlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Benjamin Donel, manager. A list of the Debtor's three largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb15-14138.pdf CEQUEL COMMUNICATIONS: Moody's Lowers CFR to B3, Outlook Stable --------------------------------------------------------------- Moody's Investors Service has downgraded the Corporate Family Rating of Cequel Communications Holdings I, LLC two notches to B3 following the announcement by the Federal Communications Commission that it approved the acquisition of a majority equity interest in Cequel by Altice Luxembourg S.A and the transaction closed on Dec. 21, 2015. The original agreement was struck on May 20, 2015, and valued Cequel at $9.2 billion, or approximately 10x EBITDA. Moody's has downgraded Cequel's secured credit facility rating one notch to Ba3, as well Cequel's unsecured notes rating to Caa1, from B3. The outlook is stable. Altice had previously issued approximately $2.2 billion of new debt at various financing escrow entities, including the Ba3 senior secured debt at Altice US Finance I Corporation, and Caa1 senior unsecured debt at Altice Finance II Corporation. They have been assumed by Cequel Communications, LLC and Cequel Communications Holdings I, LLC, respectively at the closing of the transaction. The company's speculative-grade liquidity rating is maintained at SGL-2. Also, the B3 CFR, B3-PD and stable outlook at Altice US Holding I S.a.r.l. have been withdrawn. This rating action concludes the review for downgrade initiated on May 20, 2015. Summary of action: Downgrades: Issuer: Cequel Communications Holdings I, LLC Corporate Family Rating, Downgraded to B3 from B1 Probability of Default Rating, Downgraded to B3-PD from B1-PD Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1 (LGD5) from B3 (LGD5) Affirmations: Issuer: Cequel Communications Holdings I, LLC Speculative Grade Liquidity Rating, Affirmed SGL-2 Outlook Actions: Issuer: Cequel Communications Holdings I, LLC Outlook, Changed To Stable From Rating Under Review Issuer: Cequel Communications, LLC Senior Secured Bank Credit Facilities, Downgraded to Ba3 (LGD2) from Ba2 (LGD2) Outlook Actions: Issuer: Cequel Communications, LLC Outlook, Changed To Stable From Rating Under Review Withdrawals: Issuer: Altice US Holding I S.a.r.l. Probability of Default Rating, Withdrawn , previously rated B3-PD Corporate Family Rating, Withdrawn , previously rated B3 Outlook Actions: Issuer: Altice US Holding I S.a.r.l. Outlook, Changed To Rating Withdrawn From Stable RATINGS RATIONALE The B3 CFR reflects the company's very high leverage, its limited free cash flow and the parent company's aggressive financial policy. Pro forma for the transaction and excluding any proposed synergies, Cequel's total consolidated leverage will be approximately 8x debt to EBITDA (Moody's adjusted, and including seller notes), which creates risk for a company in a capital intensive, competitive industry. Offsetting these limiting factors are Cequel's stable market position with a strong base of network assets and limited competition within its footprint other than telco DSL. Notwithstanding the maturity of the core video product, the relative stability of the subscription business provides steady cash flow, and the high quality of Cequel's network positions it well to achieve growth in its residential and commercial businesses despite escalating competition. The company's penetration lags behind industry averages, but Moody's expects its high speed data and phone growth to continue to exceed most peers and views the planned infrastructure upgrade investment as a credit positive use of cash that will help Cequel maintain if not grow market share. Altice plans to aggressively cut costs at Cequel, with targeted productivity improvements and headcount reductions which aim to produce substantial headcount-related cost savings. Moody's believes that the cost reductions are possible, but that the company may risk its market position if service quality deteriorates. In general, Moody's believes that Cequel has been a well-run cable company and that the opportunity to dramatically reduce operating expense may be difficult or result in operational disruption. However, Cequel's end markets are less competitive relative to the overall US cable industry, which may insulate Altice from market share erosion in the near term. Over a longer time frame, Moody's believes that aggressive cost reductions will lead to a weakened competitive position or could invite regulatory scrutiny. Altice's ability to dramatically improve profitability in such a short timeframe is unproven in this environment. This results in credit weakness, especially when combined with very high financial risk. Moody's would consider an upgrade of Cequel's CFR if leverage were to be sustained below 6.5x, improving market share and good liquidity. Moody's could downgrade Cequel if market share or liquidity deteriorates or if leverage rises meaningfully. Headquartered in St. Louis, Missouri, and doing business as Suddenlink Communications, Cequel Communications Holdings I, LLC (Cequel) serves approximately 1.1 million video subscribers, 1.3 million internet subscribers, and 600 thousand telephony subscribers. The company generated revenues of approximately $2.4 billion for the twelve months ended September 30. BC Partners, CPP Investment Board and certain members of Cequel's executive management acquired Cequel in November 2012. The principal methodology used in these ratings was Global Pay Television - Cable and Direct-to-Home Satellite Operators published in April 2013. Altice Luxembourg S.A. is a Luxembourg-based holding company, which through its subsidiaries Numericable-SFR S.A. and Altice International S.a.r.l operates a multinational telecommunications and cable business. Numericable-SFR operates in France while Altice International currently has a presence in four regions—Dominican Republic, Israel, Western Europe and the French Overseas Territories. Altice S.A. is controlled indirectly by French entrepreneur Patrick Drahi. CHESAPEAKE ENERGY: S&P Cuts CCR to 'B' on Revised Risk Assessment ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Oklahoma City-based exploration and production company Chesapeake Energy Corp. to 'B' from 'BB-'. The outlook is negative. At the same time, S&P removed the senior unsecured debt rating from CreditWatch with negative implications and lowered it to 'CCC+' from 'BB-' and revised the recovery rating to '6' from '4'. The '6' recovery rating indicates S&P's expectation for negligible recovery (0% to 10%). In addition, S&P lowered the rating on the company's senior secured debt to 'BB-' from 'BB+'. The recovery rating on the secured debt remains '1', indicating S&P's expectation for very high recovery (90%-100%). S&P also lowered its rating on the company's preferred stock to 'CCC' from 'B-'. "We have reassessed Chesapeake's business risk and have revised our assessment lower to fair from satisfactory, said Standard & Poor's credit analyst Paul Harvey. "We expect profitability to continue to suffer due to low natural gas and crude oil prices, compounded by very high costs related to its gathering and processing contracts," he added. This offsets otherwise good operating costs and the benefits of scale typically provided for a company of this size. The downgrade also reflects S&P's assessment of the risk that the current market conditions could make it more difficult to make large asset sales on favorable terms. Asset sales are an important contributor to available cash to support long-term liquidity. Although based on preliminary results of Chesapeake's exchange offer, outstanding debt should fall by about $1.5 billion, S&P's financial risk profile assessment remains highly leveraged. Moreover, the tendered offer failed to significantly ease the upcoming need to address about $2.5 billion of debt maturities or puts through 2017. The lowering of the senior unsecured debt rating reflects both the lower corporate credit rating, as well as lower recovery prospects following the increase in permitted junior-lien debt; up to $4 billion. S&P assess Chesapeake's business risk profile as fair. S&P considers Chesapeake's financial risk profile to remain highly leveraged, pro forma for the company's exchange offer. S&P currently assess Chesapeake's liquidity as adequate. The negative outlook reflects S&P's expectation that liquidity could significantly weaken during the next 12 months due to high negative free cash flows and potential negative borrowing base redeterminations. Chesapeake will face challenging industry conditions exacerbated by its high debt levels. Additionally, given uncertainty in natural gas and crude oil prices combined with weaker capital markets for the sector, S&P believes achieving large asset sales will be challenging. Finally, S&P expects financial measures to remain weak despite the expected reduction in debt following Chesapeake's recent exchange offer. FFO to debt will be below 8% and debt to EBITDA about 8x under S&P's base-case assumptions. S&P could lower ratings if it assessed liquidity as less than adequate, or inadequate to address 2017's maturities and puts. This could occur if negative free cash flow exceeds S&P's base case forecast, or if the borrowing base is substantially lowered at the upcoming April 2016 redetermination. Given the need to address its 2017 maturities and putable debt, there is a heightened risk of additional exchanges. S&P could also lower ratings if Chesapeake pursued exchanges S&P assessed as distressed. Finally, S&P could lower ratings if it expected debt to EBITDA to be sustained above 9x, most likely if S&P expected natural gas prices to be sustained below $2.50/mmbtu. S&P could return the rating outlook to stable if Chesapeake can address upcoming maturities and putable debt such that it is expected to preserve adequate liquidity while addressing 2017's refinancing needs. This could be in conjunction with a material asset sale, or a sustained improvement in natural gas and crude oil prices that reduce negative free cash flow. At the same time, S&P would expect financial measures to improve on a sustained basis such that FFO to debt was 8% or better and debt/EBITDA was below 7x. Both events are most likely to occur in conjunction with natural gas prices exceeding $2.75/mmbtu. CLOUDEEVA INC: Nisivoccia LLP Okayed as Ch. 11 Trustee's Accountant ------------------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey authorized Richard B. Honig, successor Chapter 11 trustee for Cloudeeva, Inc., et al., to employ Nisivoccia LLP as his accountants. Nisivoccia is expected to review the Debtors' books and records in connection with its 401(k) Plan and to prepare an audit of the financial statements of the 401(k) Plan as of Dec. 31, 2014, and any necessary related documents in order to comply with reporting requirements under the Employee Retirement Income Security Act of 1975. The firm will be paid a fee estimated between $10,000 to $12,000 and will be paid a retainer on account of said fee in the amount of $6,000. Fees will be based upon time expended at these hourly rates: Staff $100 - $135 Supervisors and managers $160 - $230 Partners $345 To the best of trustee's knowledge, the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Cloudeeva, Inc. Cloudeeva, Inc., a public company previously known as Systems America, Inc., is a global cloud services and technology solutions company specializing in cloud, big data and mobility solutions and services. The company provides information technology staffing services to major clients and third party vendors in the United States and India. The company headquarters are in East Windsor, New Jersey, with regional offices in California, Illinois and international offices in India. Cloudeeva, Inc., and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-24874) in Trenton, New Jersey, on July 21, 2014. The cases are assigned to Judge Kathryn C. Ferguson. Cloudeeva disclosed $4,989,375 in assets and $6,528,910 in liabilities as of the Chapter 11 filing. The company said only $209,000 is owing to its lender Prestige Capital Corp. and more than $5.2 million is owed for trade vendor payables. The Debtors originally tapped Lowenstein Sandler LLP as counsel. However, they later sought approval of Trenk, DiPasquale, Della Fera & Sodono, P.C., to replace Lowenstein Sandler, who retention was not formally approved by order of the Court. The Debtors also tapped Cole, Schotz, Meisel, Forman & Leonard, P.A. as appellate counsel. Kurtzman Carson Consultants LLC serves as claims and noticing agent. * * * On Aug. 22, 2014, Judge Ferguson entered an order dismissing the Debtors' Chapter 11 cases at the behest of Bartronics Asia PTE Ltd. BAPL asserted that the cases were not filed in good faith. The Debtors subsequently filed an appeal challenging the dismissal of their cases. Since then, District Judge Joel A. Pisano for the District of New Jersey entered an order staying the Case Dismissal Order pending further proceedings. Simultaneously, Judge Pisano reinstated the Debtors' bankruptcy cases and authorized the Debtors to be in possession of their assets and the management of their business as debtors-in-possession, subject to the continuing jurisdiction of the Bankruptcy Court and any further orders of the Bankruptcy Court or the District Court. The Debtor filed a Plan of Reorganization and Disclosure Statement on Oct. 7, 2014. The Plan will be funded by cash on-hand on the Effective Date, cash revenues derived from the Debtors' continued operations, and investment of $1.15 million from Cloudeeva India Private Limited or their designee, along with their guarantee of all payments to be made under Plan, in exchange for the equity of the Reorganized Debtors, as agreed in the parties' Plan Support Agreement. That Plan was withdrawn in February 2015. The Court approved the appointment of Stephen Gray as Chapter 11 trustee for the Debtors' estate. The trustee was represented by Saul Ewing LLP. Richard B. Honig was later appointed as the Chapter 11 successor trustee for Cloudeeva Inc. COYNE INTERNATIONAL: SSG Served as Investment Banker in Asset Sale ------------------------------------------------------------------ SSG Capital Advisors, LLC acted as the investment banker to Coyne International Enterprises Corp. in the sale of substantially all of its assets to Cintas Corporation No. 2, Prudential Overall Supply, Inc., Clean Rentals, Inc. and Pendera Holdings, LLC. The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the Northern District of New York and closed in December 2015. Coyne operated for more than 80 years and grew into one of the largest privately-owned industrial laundry companies in the United States. The large majority of the Company's recurring route-based revenue is derived from its garment rental business. The Company offers an extensive portfolio of products and services: Coyne rents, leases, sells, and launders textile products including workplace uniforms, career apparel, protective garments, shop towels, reusable absorbent socks and pads, floor mats, treated dust mops and wet mops. The Company also provides linens, mats, towels, and restroom hygiene products including restroom towels, sanitizers, deodorizers, and soaps. In 2013, Coyne experienced a decline in revenue and profitability due to the loss of certain key customers. In response, management implemented personnel and operational initiatives focused on increasing revenue, reducing costs and improving efficiencies throughout the organization and subsequently retained SSG to evaluate strategic alternatives. SSG conducted a comprehensive marketing process which resulted in a wide range of interest from potential strategic and financial parties. The process resulted in eight qualified bids for the assets in whole and/or in part. To best maximize value, SSG and Coyne's professionals selected four buyers to form a combined bid for substantially all of Coyne's assets. Cintas Corporation purchased the routes and certain other assets associated with the Company's Bristol, TN; Buffalo, NY; Cleveland, OH; London, KY; Syracuse, NY and York, PA locations. Clean Rentals, Inc., purchased the routes of the Company's New Bedford, MA location. Prudential Overall Supply, Inc., purchased the routes and real estate of the Company's Richmond, VA location in addition to the routes of the Greenville, SC location. Pendera Holdings, LLC purchased the real estate of the Buffalo, NY location. SSG's experience in identifying buyers and running a thorough sale process created a competitive auction environment and yielded final bids in excess of the stalking horse bids. The value created by the auction maximized recovery for key stakeholders. Other professionals who worked on the transaction include: * Mark Samson, CEO, Coyne International Enterprises Corp.; * Bill Henrich of Getzler, Henrich & Associates, LLC, Chairman of the Board; * Stephen B. Selbst, Robert L. Rattet, Joel Wagman, Hanh Huynh and Vivian Wang of Herrick Feinstein, LLP, counsel to Coyne International Enterprises Corp.; * Bernard A. Katz and Joseph C. Baum of CohnReznick, LLP, financial advisors to Coyne International Enterprises Corp.; * Randall L. Klein and Prisca Kim of Goldberg, Kohn, Bell, Black, Rosenbloom & Moritz Ltd., counsel to NXT Capital, LLC; * Paul Andrews and Vladimir Kasparov of Andrews Advisory Group, LLC, financial advisors to NXT Capital, LLC; * Thomas R. Califano and Harriet Lipkin of DLA Piper US, LLP, counsel to Medley Capital Corporation; * Lee Woodard and Wendy Kinsella of Harris Beach PLLC, Bankruptcy Examiner; * Jeffery A. Dove of Menter, Rudin & Trivelpiece, P.C. and Ericka F. Johnson and Matthew P. Ward of Womble, Carlyle, Sandridge & Rice, LLP, counsel to the Official Committee of Unsecured Creditors; * D. Brock Denton, Robert E. Coletti, Robert G. Sanker, Julie Muething, Ross J. Bextermueller and Andrew J. Kaminski of Keating, Muething & Klekamp, PLL, counsel to Cintas Corporation; * David A. Rosenzweig and Rebecca J. Winthrop of Norton Rose Fulbright, LLP and John Tishbi of Pearlman & Tishbi, counsel to Prudential Overall Supply, Inc.; * Paul Plourde of Plourde, Bogue, Moylan & Marino, LLP, counsel to Clean Rentals, Inc.; and * Mark J. Schlant of Zdarsky, Sawicki & Agostinelli, LLP, counsel to Pendera Holdings, LLC. About SSG Capital Advisors, LLC SSG Capital Advisors is an independent boutique investment bank that assists middle-market companies and their stakeholders in completing special situation transactions. It provide its clients with comprehensive investment banking services in the areas of mergers and acquisitions, private placements, financial restructurings, valuations, litigation and strategic advisory. SSG has a proven track record of closing over 300 transactions in North America and Europe and is a leader in the industry. SSG Capital Advisors, LLC (Member FINRA, SIPC) is a wholly owned broker dealer of SSG Holdings, LLC. SSG is a registered trademark for SSG Capital Advisors, LLC. SSG provides investment banking, restructuring advisory, merger, acquisition and divestiture services, private placement services and valuation opinions. About Coyne International Coyne International Enterprises Corp. filed a Chapter 11 Bankruptcy petition (Bankr. N.D.N.Y. Case No. 15-31160) on July 31, 2015. The petition was signed by Mark Samson as CEO. Herrick Feinstein LLP serves as the Debtor's general counsel. Phillips Lytle LLP acts as the Debtor's local bankruptcy counsel. Cohnreznick LLP is the Debtor's financial advisor. SSG Capital Advisors LLC is the Debtor's investment banker. Rust Omni serves the Debtor as claims and administrative agent. Raab, Sturm & Ganchrow, LLP acts as labor counsel to the Debtor. Harbridge Consulting Group, LLC serves as the Debtor's pension consultant. Beveridge & Diamond PC is the Debtor's environmental counsel. GZA Geoenvironmental, Inc. serves as the Debtor's environmental consultant. CTI BIOPHARMA: Approves Compensatory Arrangements of Officers ------------------------------------------------------------- The Compensation Committee of the Board of Directors of CTI BioPharma Corp. approved the following: * Grant of Stock Options. The Company's grant of stock options on Dec. 23, 2015, under the Company's 2015 Equity Incentive Plan to each of the Company's executive officers to acquire the following number of shares of the Company's common stock: Dr. James A. Bianco (chief executive officer and president) - 6,000,000 shares; Louis A. Bianco (executive vice president, finance and administration) - 1,600,000 shares; Dr. Jack W. Singer (executive vice president, chief scientific officer, interim chief medical officer and global head of Translational Medicine) - 1,900,000 shares; Dr. Matthew Plunkett (executive vice president, chief business officer) - 1,400,000 shares; and Bruce J. Seeley (executive vice president, chief commercial officer) - 1,100,000 shares. Each option has a per share exercise price equal to the closing price of the Company's common stock on the grant date and is scheduled to vest in semi-annual installments over a four-year period following the grant date. * Modification of LTIP Awards. The Company has previously granted long-term incentive plan awards to each of the Company's executive officers identified above that would vest if certain performance goals established by the Committee are achieved by Dec. 31, 2016. If a particular performance goal is timely achieved, the number of underlying shares subject to an LTIP Award that vest on attainment of the goal will be determined by multiplying (i) the award percentage for that award corresponding to that particular performance goal by (ii) the total number of outstanding shares of the Company's common stock as of the vesting date (determined on a non-fully diluted basis), subject to the applicable share limits of the Company's equity incentive plan then in effect. For some executives, the LTIP Award consisted entirely of performance- based restricted stock units, while for other executives, a portion of the award consisted of performance-based restricted stock (with the number of shares retained by the executive if the goal is achieved being subject to adjustment to the extent the number of shares determined under the formula above is different from the number of restricted shares held by the executive that relate to the particular performance goal). Under the revised program, each of the LTIP Awards have been modified so that as to any particular performance goal that is achieved after Dec. 23, 2015, and on or before Dec. 31, 2016, the executive will be granted a stock option with respect to the number of shares determined under the formula described above (as opposed to receiving or retaining such number of fully-vested shares). Each option will have an exercise price equal to the closing price of the Company's common stock on the grant date (which will be the date the Committee certifies the performance goal is achieved) and will be scheduled to vest in semi-annual installments over a three-year period following the grant date. To the extent the executives have been issued any restricted shares pursuant to their LTIP Awards as described above that have not yet vested, they have agreed to forfeit those shares to the Company. In addition, the LTIP Awards have been modified so that provisions for accelerated vesting of the award in connection with a termination of the executive's employment or a change in control of the Company will apply only to the portion of the award that relates to the Company's obtaining approval of a new drug application or a marketing authorization application for pacritinib and not to any of the other performance goals for the award. * Base Salary Increase and Elimination of Executive Perquisites. The Committee also approved an increase in Dr. Bianco's annual base salary from $650,000 to $750,000 and the elimination of most perquisites provided to the Company's executives, in each case effective Jan. 1, 2016, and approved amendments to Dr. Bianco's employment agreement with the Company to reflect these changes. The Company will continue to pay reasonable and necessary costs to maintain executives' medical licenses and to provide certain life and disability insurance benefits to Dr. Bianco pursuant to his employment agreement. 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 Sept. 30, 2015, the Company had $63.13 million in total assets, $90.64 million in total liabilities and a $27.51 million total shareholders' deficit. DF SERVICING: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- DF Servicing, LLC 15-10253 PO Box 363685 San Juan, PR 00936 DF Tier I, LLC 15-10256 PO Box 363685 San Juan, PR 00936 DF Investments, LLC 15-10254 DF Holdings LLC 15-10255 Type of Business: Purchase and Sale of Construction Projects Chapter 11 Petition Date: December 24, 2015 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtors' Counsel: Charles Alfred Cuprill, Esq. CHARLES A CUPRILL, PSC LAW OFFICE 356 Calle Fortaleza, Second Floor San Juan, PR 00901 Tel: 787 977-0515 Email: ccuprill@cuprill.com Total Total Assets Liabilities ---------- ------------ DF Tier I LLC $0 $99.94MM DF Servicing LLC $0 $159.79MM The petition was signed by Mark Mashburn, president. List of DF Tier I LLC's Four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bautista Cayman Asset Company Loan $74,533,449 345 California Street Suite 3300 San Francisco, CA 94104 Bautista Cayman Asset Company Loan $16,126,888 345 California Street Suite 3300 San Francisco, CA 94104 Bautista Cayman Asset Company Loan $9,288,626 345 California Street Suite 3300 San Francisco, CA 94104 List of DF Servicing's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Amado Santini Defects Claim $1,655 ASOC Residentes Terra Fees $33,033 Senorial Inc. Autoridad De Acueductos Y Water and $3,088 Alcantarillado Sewer Services PO Box 70101 San Juan, PR 00936-8101 Bautista Cayman Asset Company Loans $9,288,626 345 California Street Suite 3300 San Francisco, CA 94104 Bautista Cayman Asset Company Loans $74,533,449 345 California Street Suite 3300 San Francisco, CA 94104 Bautista Cayman Asset Company Loans $16,126,888 345 California Street Suite 3300 San Francisco, CA 94104 Capital Title Services Inc. Services $2,905 33 Resolucion Street, Suite 302 San Juan, PR 00920-2727 Costa Bonita Beach Resort Inc. Counterclaim $9,500,000 PO Box 1788 Sabana Seca, PR 00952 Elizabeth Ortiz Irizarry Defects Claim $7,450 Hillview Condominium Corp. Defects Claim $24,020,000 Cupey Professional Mal Bldg 359 San Claudio Avenue San Juan, PR 00926 Miriam Soto Santiago Defects Claim $2,830 Municipality of Ponce Services $84,000 New Garden Design Inc. Landscaping $11,075 O Neill & Borges Legal Services $11,065 Plaza 844 Inc. Defects Claim $26,000,000 PO Box 323138 Winston Churcill San Juan, PR 00926-6023 PR Electric Power Services $68,685 Terra Senorial Inc. Business $48,126 Thyssenkrupp Elevator Maintenance $5,904 US Security Associates Inc. Services $28,802 US Security Associates Inc. Services $3,764 DF SERVICING: Hires Carrasquillo as Financial Consultant -------------------------------------------------------- DF Servicing, LLC, seeks permission from the Bankruptcy Court to appoint CPA Luis R. Carrasquillo & Co, P.S.C. as financial consultant to assist it in the management of financial restructuring of its affairs by providing advice in strategic planning and the preparation of the Debtor's plan of reorganization, disclosure statement and business plan, and participating in the Debtor's negotiations with its creditors. The Debtor has retained Carrasquillo on the basis of a $10,000 advance retainer, against which Carrrasquillo will bill as per its hourly billing rates: Professional Position Rate ------------ -------- ---------- CPA Luis R. Carrasquillo Partner $175 CPA Marcelo Gutierrez Senior CPA $125 Other CPA's $90-$125 Lionel Rodríguez Perez Senior Accountant $90 Carmen Callejas Echevarria Senior Accountant $85 Alfredo J. Segarra Senior Accountant $80 Janet Marrero Administrative $45 and Support Iris L. Franqui Administrative $45 and Support Carrasquillo represented that it is a disinterested person as defined in Section 101(14) of the Bankruptcy Code. Carrasquillo disclosed that it has no prior connections with the Debtor, its officers, directors and insiders, any other creditor, or other party-in-interest, the United States Trustee or any person employed in the office of the United States Trustee, except that it acted as financial consultant in the case of Costa Bonita Beach Resort, Inc., a counter-claimant in this case. About DF Servicing Engaged in the business of purchase and sale of construction projects, DF Servicing, LLC, DF Tier I, LLC, DF Investments, LLC and DF Holdings LLC filed Chapter 11 bankruptcy petitions (Bankr. D.P.R. Case Nos. 15-10253 to 15-10256) on Dec. 24, 2015. The petitions were signed by Mark Mashburn, the president. Charles A Cuprill, PSC Law Office, serves as counsel to the Debtors. DF SERVICING: Seeks to Employ Cuprill as Legal Counsel ------------------------------------------------------ DF Servicing, LLC, is asking permission from the Bankruptcy Court to employ Charles A. Cuprill, P.S.C., Law Offices, as its legal counsel. The Debtor has retained Cuprill on the basis of a $60,000 retainer against which the law firm will bill on the basiss of $350 per hour for work performed or to be performed by Charles A. Cuprill-Hernandez, Esq.; $250 per hour for any associate and $85 for paralegals. To the best of the Debtor's knowledge, Cuprill is a disinterested entity as defined in Section 101(14) of the Bankruptcy Code. With the exception that Cuprill acted as counsel for Costa Bonita Beach Resort, Inc., a counterclaimaint in this case, neither Cuprill nor its members have other prior connections with the Debtor or any insidier, any creditor, or other party-in-interest, their respective attorneys and accountants, the United States Trustee or any person employed in the office of the United States Trustee. About DF Servicing Engaged in the business of purchase and sale of construction projects, DF Servicing, LLC, DF Tier I, LLC, DF Investments, LLC and DF Holdings LLC filed Chapter 11 bankruptcy petitions (Bankr. D.P.R. Case Nos. 15-10253 to 15-10256) on Dec. 24, 2015. The petitions were signed by Mark Mashburn, the president. Charles A Cuprill, PSC Law Office, serves as counsel to the Debtors. CPA Luis R. Carrasquillo & Co, P.S.C., is the financial consultant. DISH NETWORK: Moody's Affirms Ba3 Corporate Family Rating --------------------------------------------------------- Moody's Investors Service affirmed DISH Network Corporation's ("DISH") wholly owned subsidiary, DISH DBS Corporation's ("DISH DBS") Ba3 corporate family rating (CFR), and Ba2-PD probability of default rating (PDR). Moody's has changed DISH DBS' speculative grade liquidity rating (SGL) to SGL-3 from SGL-1. Moody's has also changed DISH's outlook to stable from negative. The stable rating outlook reflects the unlikelihood that the company will increase debt leverage over the near to intermediate-term, and an expectation that DISH's core video business is relatively stable over the near-term. We expect DISH to be able to sustain its rating despite the potential for more debt financed spectrum investment outside of DISH DBS; however, the structure of any such debt issuance and expected source of debt service will dictate the impact on the credit ratings. Although DISH will likely continue in its pursuit of a nationwide wireless broadband strategy, we believe the credit metrics will not be impacted in the next 12-18 months from any related actions. The change in the company's SGL is driven by the sharp reduction in cash resulting from the AWS auction and fine levied by the FCC for the give back of some of its spectrum won in that auction, and the $1.5 billion maturity in February 2016. Moody's believes that the maturity will either utilize most of DISH DBS's and Dish Network's liquidity resources (cash and derivative investments) to repay it in full, unless the company accesses the debt markets to refinance some or all of it. Affirmations: Issuer: Dish Network Corporation Corporate Family Rating, Affirmed Ba3 Probability of Default Rating, Affirmed Ba2-PD Lowered: Issuer: Dish Network Corporation Speculative Grade Liquidity Rating, Lowered to SGL-3 from SGL-1 Outlook Actions: Issuer: Dish Network Corporation Outlook, Changed To Stable From Negative Affirmations: Issuer: Dish DBS Corporation Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 (LGD4) Gtd Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 (LGD4) Outlook Actions: Issuer: Dish DBS Corporation Outlook, Changed To Stable From Negative RATING RATIONALE DISH DBS's Ba3 Corporate Family Rating ("CFR") reflects high gross debt-to-EBITDA leverage of 4.3x as of 9/30/2015 (incorporating Moody's standard adjustments), resulting from an increase in the company's debt level, which has more than doubled since 2010. Notably, leverage is slightly higher at the parent company and DISH DBS is its primary source of cash flows to service expenses and investments. The rating continues to reflect our concern that competition from cable and telecommunication companies, who offer multiple products (video, voice, and data), will pressure margins and cash flow generation as the costs to grow and retain subscribers will continue to escalate. The ratings continue to be supported by DISH's sizeable subscriber base and continued rollout of technologically advanced products that have been embraced by consumers, such as the Hopper and Joey set top boxes and its over-the-top service, Sling TV. The company's parent has been beefing up its wireless spectrum base aiming to strengthen its wireless broadband potential capacity in order to enter the wireless space and withstand market saturation. In 2014, DISH made a significant investment to purchase certain H Block wireless spectrum licenses and earlier this year, DISH, through its bidding partners in which it owns an interest, acquired AWS-3 licenses worth approximately $11 billion (net of a 25% bidding credit). In August, the company confirmed that the FCC denied the $3.3 billion bidding discount to DISH's two affiliates that won the AWS-3 licenses in January 2015. Dish has elected to appeal this court order and withhold payment-in-full, allowing the FCC to retain the AWS-3 licenses. Dish has made interim payments to the FCC as to not be considered a defaulter and as such remains eligible to participate in a re-auction of the assets. In the event that the winning price at re-auction is less than the bid provided by the affiliates of DISH, DISH will be required to pay the difference of the two bids. While this event would be financially unfavorable, DISH was able to put itself in a position to mitigate its losses on this transaction. Ongoing uncertainty surrounding financing of potential costs associated with AWS-3 license discounts and event risks from the company's future strategies to deploy wireless spectrum amassed over the years, together weigh heavily on the credit profile. Moody's cautions that the company's ratings could come under pressure if the financial impact from these events is unfavorable for DISH DBS's bondholders and leads to a deterioration in its balance sheet. Moody's remains concerned over the legal credit structure supporting DISH DBS bonds, which possess only minimal protections against leverage and up-streaming cash to its parent, DISH. Further, the company's creditors have no recourse to assets held outside of DISH DBS. The rating also considers the company's controlling shareholder structure. The controlling shareholder and Chairman, Charles Ergen, has until recently, maintained a conservative balance sheet, but has demonstrated the willingness to be highly acquisitive. In addition, lack of transparency on fiscal policies and financial guidance from the company's management, and flexible indenture covenants also moderately constrain the CFR. DISH may be downgraded if it engages in acquisitions and investments such that leverage is sustained over 5.5x. However, DISH could also be downgraded if leverage is sustained over 4.5x and we expect it to up-stream its cash to fund a high risk business that doesn't generate free cash flow and to which DISH's creditors have no recourse. In addition, material subscriber losses, multiple satellite failures that cannot be mitigated with backup transponders or capacity constraints that affect the company's ability to provide a competitive service could also have negative rating implications. Upward rating movement could occur should DISH's leverage be sustained below 4.0x. Additionally, for an upgrade to occur, there would need to be increased transparency into the company's next strategic steps with regard to its wireless strategy, how it plans to use its cash balance, and if its creditors have recourse to its current and future wireless assets. DISH is the third largest pay television provider in the United States, operating satellite services with approximately 13.9 million subscribers as of Sept. 30, 2015. DORAL FINANCIAL: Creditors Say $889 Million PR Tax Deal Is Valid ---------------------------------------------------------------- Hannah Sheehan at Bankruptcy Law360 reported that bankrupt Doral Financial Corp. and its creditors sued Puerto Rico's Treasury secretary on Dec. 17, 2015, seeking a declaration that an $889 million tax agreement between the company and the commonwealth from 2006 is valid after an appellate court struck down a similar deal from 2012. In an adversary complaint filed as part of Puerto Rico-based Doral's ongoing bankruptcy proceeding, the company and its creditors asked the court to determine that it is entitled to the $889 million tax credit under a 2006 closing agreement. About Doral Financial Doral Financial Corporation is a holding company whose primary operating asset was equity in Doral Bank. DFC maintains offices in New York City, Coral Gables, Florida and San Juan, Puerto Rico. DFC has three wholly-owned subsidiaries: (i) Doral Properties, Inc., (ii) Doral Insurance Agency, LLC ("Doral Insurance"), and (iii) Doral Recovery, Inc. On Feb. 27, 2015, regulators placed Doral Bank into receivership and named the Federal Deposit Insurance Corp. as receiver. Doral Bank served customers through 26 branches located in New York, Florida, and Puerto Rico. DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10573) in Manhattan on March 11, 2015. The case is assigned to Judge Shelley C. Chapman. DFC estimated $50 million to $100 million in assets and $100 million to $500 million in debt as of the bankruptcy filing. The Debtor tapped Ropes & Gray LLP as counsel. The U.S. trustee overseeing the Chapter 11 case of Doral Financial Corp. appointed five creditors of the company to serve on the official committee of unsecured creditors. The Committee is represented by Brian D. Pfeiffer, Esq., and Taejin Kim, Esq., at Schulte Roth & Zabel LLP. On Nov. 25, 2015, Doral Properties filed a voluntary petition with the Court for relief under Chapter 11 of the Bankruptcy Code. ELEPHANT TALK: Gets $768,700 From Units Offering ------------------------------------------------ Elephant Talk Communications Corp. consummated an initial closing of its private placement offering of Units to "accredited investors". The Initial Closing is part of a "best efforts" private placement offering of up to $4,200,000 consisting of up to 140 units, each Unit consisting of: (i) one 9% unsecured subordinated convertible promissory note in the principal amount of $30,000, which is convertible into shares of Common Stock of the Company, $.00001 par value, at the option of the holder at a conversion price of $.30 per share, subject to certain exceptions; and (ii) a five-year warrant to purchase 100,000 shares of Common Stock at an exercise price of $.45 per share, subject to certain exceptions. The Units were offered and sold pursuant to an exemption from registration under Section 4(2) and Regulation D of the Securities Act. At the Initial Closing, the Company sold an aggregate of $920,000 principal amount of Notes and delivered Warrants to purchase an aggregate of 3,166,666 shares of Common Stock. The Warrants entitle the holders to purchase shares of Common Stock reserved for issuance thereunder for a period of five years from the date of issuance and contain certain anti-dilution rights on terms specified in the Warrants. The Note Shares and Warrant Shares will be subject to full ratchet anti-dilution protection for the first 24 months following the issuance date and weighted average anti-dilution protection for the 12 months period after the first 24 months following the issuance date. The Company is obligated to file a registration statement registering the Note Shares and Warrant Shares within 45 days of the final closing of the Offering. In connection with the Private Placement Offering, the Company retained a registered FINRA broker dealer to act as the placement agent. For acting as the placement agent, the Company agreed to pay the Placement Agent, subject to certain exceptions: (i) a cash fee equal to seven percent (7%) of the aggregate gross proceeds raised by the Placement Agent in the Offering, (ii) a non-accountable expense allowance of up to one percent (1%) of the aggregate gross proceeds raised by the Placement Agent in the Offering, and (iii) at the final Closing one five-year warrant to purchase such number of shares equal to 7% of the shares underlying the Notes sold in this Offering at an exercise price of $.30 and one five-year warrant to purchase such number of shares equal to 7% of the shares underlying the Warrants sold in this Offering at an exercise price of $.45. At the Initial Closing, the Company received net proceeds of $768,700 after payment of commission of $73,600 to the Placement Agent and expenses of $77,700. The Company intends to use the net proceeds from the Offering primarily for working capital. About Elephant Talk Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK) -- http://www.elephanttalk.com/-- is an international provider of business software and services to the telecommunications and financial services industry. Elephant Talk reported a net loss of $21.9 million in 2014, a net loss of $25.5 million in 2013 and a net loss of $23.1 million in 2012. As of Sept. 30, 2015, the Company had $30.7 million in total assets, $14.3 million in total liabilities and $16.4 million in total stockholders' equity. EMPIRE RESORTS: To Effect 1-for-5 Reverse Stock Split ----------------------------------------------------- Empire Resorts, Inc., filed a Certificate of Amendment to the Company's Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a 1-for-5 reverse stock split of all outstanding shares of common stock of the Company, par value $.01 per share, effective as of 12:01 a.m. on Dec. 23, 2015. The filing of the Certificate of Amendment was made pursuant to the authorization provided by the stockholders of the Company by written consent on Oct. 5, 2015, which authorized the Board of Directors of the Company to effect a reverse stock split of all outstanding shares of Common Stock at a specific ratio within a range from 1-for-2 to 1-for-5 at any time before Dec. 31, 2016. The 1-for-5 reverse stock split ratio was subsequently determined at a meeting of the Company's Board of Directors on Dec. 7, 2015. As a result of the reverse stock split, each five shares of outstanding common stock will be combined into one new share, with no change in authorized shares or par value per share. The number of outstanding shares of Common Stock will be reduced from approximately 47.792 million to approximately 9.550 million. Proportional adjustments also will be made to the exercise prices of the Company's outstanding warrants and stock options, and to the number of shares issued and issuable under the Company's stock incentive plans. The reverse stock split will not affect any stockholder's ownership percentage of Common Stock, except to the limited extent that the reverse stock split would result in any stockholder owning a fractional share. The Company will not issue fractional certificates for post-reverse stock split shares in connection with the reverse stock split; rather, the Company will issue an additional share to all holders of fractional shares. The Company's trading symbol of "NYNY" will not change as a result of the reverse stock split. The Common Stock will trade under a new CUSIP number 292052305 effective as of Dec. 23, 2015. About Empire Resorts Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY) -- http://www.empireresorts.com/-- owns and operates Monticello Casino & Raceway, a video gaming machine and harness racing track and casino located in Monticello, New York, 90 miles northwest of New York City. Empire Resorts reported a net loss applicable to common shares of $24.1 million on $65.2 million of net revenues for the year ended Dec. 31, 2014, compared to a net loss applicable to common shares of $27.05 million on $70.96 million of net revenues in 2013. As of Sept. 30, 2015, the Company had $73.4 million in total assets, $63.4 million in total liabilities and $10 million in total stockholders' equity. ENERGY FUTURE: Bid to Sell Oncor Minority Stake Kept Alive ---------------------------------------------------------- Matt Chiappardi at Bankruptcy Law360 reported that a Delaware bankruptcy judge on Dec. 18, 2015, kept alive Energy Future Holdings Corp.'s bid to force the minority stakeholder in non-debtor Oncor Electric Delivery Co. LLC to give up its stake in the electric delivery business, a deal for which is at the center of its confirmed Chapter 11 plan. During a hearing in Wilmington, U.S. Bankruptcy Judge Christopher S. Sontchi ruled that the contract EFH claims Oncor minority owner Texas Transmission Investment is breaching, by not agreeing to go along with a sale. About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a Portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80 percent-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. On April 29, 2014, Energy Future Holdings and 70 affiliated companies sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10979) after reaching a deal with some key financial stakeholders to keep its businesses operating while reducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). The Debtors are seeking to have their cases Jointly administered for procedural purposes. As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in book value and liabilities of $49.7 billion. The Debtors have $42 billion of funded indebtedness. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring Agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee for the second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee represents the interests of the unsecured creditors of ONLY of Energy Future Competitive Holdings Company LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings Company LLC; and EFH Corporate Services Company, and of no other debtors. The Committee has selected Morrison & Foerster LLP and Polsinelli PC for representation in this high-profile energy restructuring. The lawyers working on the case are James M. Peck, Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K. Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at Polsinelli PC. EQUA MANAGEMENT: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Equa Management, Inc. Carr. #1, KM. 32.7 Bo. Bairoa Caguas, PR 00725 Case No.: 15-10189 Chapter 11 Petition Date: December 23, 2015 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Judge: Hon. Mildred Caban Flores Debtor's Counsel: Alexis Fuentes Hernandez, Esq. FUENTES LAW OFFICES, LLC PO Box 9022726 San Juan, PR 00902-2726 Tel: (787) 722-5216 Fax: (787) 722-5206 Email: alex@fuentes-law.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by William Casteline, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/prb15-10189.pdf FANNIE MAE & FREDDIE MAC: Updated Conservatorship Litigation Chart ------------------------------------------------------------------ At http://bankrupt.com/gselitigationsummary201512.pdfeditors of the Troubled Company Reporter and Class Action Reporter have posted a chart, updated on Dec. 24, 2015, organizing information about the 27 lawsuits complaining about how the Department of the Treasury and the Federal Housing Finance Administration are handling Fannie Mae and Freddie Mac's conservatorship proceedings. Unaltered, this chart may be freely shared with anyone for any purpose, notwithstanding that it is copyrighted by Bankruptcy Creditors' Service, Inc., and Beard Group, Inc., and all rights are reserved by the publishers. For additional information, contact Peter A. Chapman at peter@beard.com by e-mail or (215) 945-7000 by telephone. Last week, FHFA and Treasury filed their Briefs in Perry v. Lew, No. 14-5243 (D.C. Cir.), arguing that the appellate tribunal should uphold Judge Lamberth's dismissal of lawsuits filed in the U.S. District Court for the District of Columbia. Reply briefs are to be filed in the D.C. Circuit by Feb. 2, 2016, and final briefs are to be filed in the D.C. Circuit by Mar. 8, 2016. The plaintiffs in Saxton v. FHFA, Case No. 15-cv-00047 (N.D. Iowa), and Robinson v. FHFA, Case No. 15-109 (E.D. Ky.), have moved to amend their complaints to incorporate confidential discovery materials obtained by plaintiffs in Fairholme Funds v. U.S., Case No. 13-465 (Ct. Fed. Cl.). Those amended complaints are under seal because they make reference to materials that are subject to a protective order entered in the Court of Federal Claims. Investors Unite has requested permission to file an amicus brief in Saxton v. FHFA. Investors Unite, represented by Michael H. Krimminger, Esq. -- mkrimminger@cgsh.com -- at Cleary Gottlieb Steen & Hamilton LLP, explains that HERA, the statute governing the GSEs' conservatorship proceedings that he helped author, was modeled on FDIC legislation. Mr. Krimminger argues that the Third Amendment implemented in 2012 is wholly inconsistent with more than 1,000 bank and thrift resolutions and the Net Worth Sweep does not reflect what was intended when HERA was drafted. Jurisdictional discovery was scheduled to be completed in Fairholme v. U.S. by Dec. 31, 2015. But Fairholme filed a motion to compel the government to produce certain documents withheld based on privilege claims, and the government doesn't being able to respond to that motion until Jan. 21, 2016, so jurisdictional discovery will continue into 2016. The plaintiffs in Jacobs v. FHFA, Case No. 15-708 (D. Del.), are scheduled to file their response to FHFA and Treasury's motions to dismiss on Jan. 16, 2016. In all of the lawsuits challenging the Third Amendment and Net Worth Sweep, the government principally argue that GSE shareholders are barred from complaining about anything FHFA does in its role as the GSEs' conservator and the Judicial Branch is prohibited from doing anything that would restrain the conservator from doing what it thinks is best. FILMED ENTERTAINMENT: To Relaunch Vinyl Album Subscription Service ------------------------------------------------------------------ Marie Lodi at Jezebel.com reports that Columbia House is relaunching its mail order business, offering vinyl records instead of tapes and CDs. According to Jezebel.com, the Company is capitalizing on the trend and will return to one of the very first products they sold, but will most likely not offer its famous old-school pricing. Citing the Recording Industry Association of America, Jezebel.com relates that vinyl album sales increased 52% in the first half of this year. About Filmed Entertainment Filmed Entertainment Inc. owns and operates the "Columbia House DVD Club," a direct-to-customer distributor of movies and television series in the United States. FEI conducts its business through physical catalogues and through the -- http://www.columbiahouse.com/Web site. FEI was historically active in the musical compact disc business, but exited the music business in 2010. Founded in 1955 as a division of CBS Inc. to sell vinyl records and cassette tapes, FEI is a unit of Pride Tree Holdings, Inc., which acquired FEI in December 2012. On Aug. 10, 2015 FEI filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Case No. 15-12244) in Manhattan, New York. The case is pending before the Honorable Shelley C. Chapman. The Debtor tapped Griffin Hamersky P.C. as counsel, and Prime Clerk LLC as claims and noticing agent. The Debtor estimated assets of $1 million to $10 million and debt of $50 million to $100 million. The U.S. Trustee for Region 2 appointed five creditors of Filmed Entertainment Inc. to serve on the official committee of unsecured creditors. FOUR OAKS: Ayden Lee Resigns as Executive Chairman -------------------------------------------------- Ayden R. Lee, Jr., executive chairman of Four Oaks Fincorp, Inc. and its wholly-owned subsidiary Four Oaks Bank & Trust Company, notified the Company of his intention to resign from his positions with the Company and the Bank, effective Dec. 31, 2015. Mr. Lee will continue to serve as Chairman and a member of the Boards of Directors of the Company and the Bank. In addition to the amounts owed to Mr. Lee under his executive employment agreement with the Bank, the Board of Directors of the Company also approved certain benefits for Mr. Lee in connection with his resignation in recognition of his many years of dedicated service to the Company and the Bank, including, among other things, that Mr. Lee may keep the automobile that the Bank currently provides to him and that the Bank will reimburse him for certain expenses related to the automobile for the 12-month period immediately following the Effective Date. The Board of Directors of the Company also approved a change to the director compensation policy such that Mr. Lee, as Chairman of the Board of Directors, will receive monthly and per meeting fees equivalent to that of the Lead Independent Director. About Four Oaks Four Oaks Fincorp, Inc., through its wholly-owned subsidiary, Four Oaks Bank & Trust Company, offers a broad range of financial services through its sixteen offices in Four Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Harrells, Zebulon, Dunn, Raleigh (LPO), Apex (LPO) and Southern Pines (LPO), North Carolina. Four Oaks Fincorp, Inc. trades through its market makers under the symbol of FOFN. Four Oaks Fincorp reported a net loss of $4.18 million in 2014, a net loss of $350,000 in 2013, a net loss of $6.96 million in 2012 and a net loss of $9.09 million in 2011. As of Sept. 30, 2015, the Company had $714.50 million in total assets, $654.28 million in total liabilities and $60.21 million in total shareholders' equity. FPL ENERGY: S&P Affirms B- Rating on $100MM Sec. Notes, Outlook Neg ------------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'B-' issue-level rating on project finance entity FPL Energy National Wind Portfolio LLC's (National Wind Portfolio) $100 million senior secured notes due 2019. At the same time, S&P revised the outlook to negative from stable. The recovery rating on National Wind Portfolio's senior secured bonds is '2', indicating S&P's expectation of a substantial (70% to 90%) recovery in a default scenario. S&P's recovery expectations are in the higher end of the 70% to 90% range. "The negative outlook on National Wind Portfolio reflects our view of the uncertainty in timing of when wind speeds will return to historical averages," said Standard & Poor's credit analyst Trevor D'Olier-Lees. S&P's rating action stems from the significant drop in wind resource at National Wind and the uncertainty of when wind speeds will return to historical averages. National Wind Portfolio repays debt from distributions it receives from National Wind, which generates cash flow from a portfolio of eight U.S. wind projects totaling 389.6 megawatts (MW). This year, wind speeds were significantly reduced due to the persistent El Nino conditions that have affected many parts of the U.S. This wind phenomenon is currently considered to be a 1-in-39 year occurrence by industry experts. Through year-end 2015, S&P expects a debt service coverage ratio (DSCR) at National Wind to be around 1.04x, driven by 10% slower wind speeds, lower availability of about 90% (versus 96% expectation), and higher operating and maintenance costs due to gearbox and generator repairs at two of the sites and structural repairs at another site. Because of lower debt service coverage at National Wind, distributions were trapped beginning in September 2015 and under S&P's base case financial forecast it don't expect distributions to flow up to National Wind Portfolio until September 2017. S&P's current expectation is that the wind will return to historical averages, and so its long-term base case forecast remains unchanged from its last review. However, if wind resources in the first half of 2016 don't revert to more normal levels, S&P could revise its generation assumptions for the project level, which could result in a cash trap to prevail for longer than S&P is assuming currently. GIBSON BRANDS: Moody's Lowers CFR to B3, On Review for Downgrade ---------------------------------------------------------------- Moody's Investors Services downgraded Gibson Brands ratings following the company's very weak quarterly results, pushing credit metrics below Moody's expectation and putting stress on Gibson's liquidity profile. The ratings are on review for possible further downgrade. "The downgrade reflects Gibson's weak liquidity position and soft credit metrics," said Kevin Cassidy, a Moody's Senior Credit Officer. The company has around $15 million available on its revolving credit facilities. The company has $75 million of cash, but $30 million is trapped in Argentina. The company also required a waiver for the covenants in its European revolving credit facility. RATINGS RATIONALE The rationale for the review for downgrade is the uncertainty about the company's ability to improve its operating performance and stabilize its liquidity position. "We had expected debt/EBITDA, excluding FX, to range between 5 times and 6 times, but it is now over 9 times,"" said Cassidy. Moody's rating review will focus on Gibson's plan to improve its operating performance and strengthen its liquidity position. Ratings downgraded and on review for possible further downgrade: Corporate Family Rating to B3 from B2: Probability of Default Rating to B3-PD from B2-PD $375 million senior secured 2nd lien notes due 2018, to Caa1 (LGD 4) from B3 (LGD 4) The principal methodology used in this rating was the Consumer Durables Industry published in September 2014. Headquartered in Nashville, Tennessee, Gibson Brands Inc. designs, manufactures, markets, and globally distributes premium musical instruments, consumer and professional audio and video products, information products, and related accessories. The company's product offerings are marketed under a portfolio of brands including Gibson, Philips, Epiphone, Kramer, Baldwin, Onkyo, KRK, and Stanton. Revenues approximated $1.8 billion for the twelve months ended September 30, 2015. GOLDEN COUNTY FOODS: Court OKs Kurtzman Carson as Admin. Advisor ---------------------------------------------------------------- Plover Appetizer Co. fka Golden County Foods, Inc. and its debtor-affiliates sought and obtained permission from the Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware to employ Kurtzman Carson Consultants LLC as administrative advisor. The Debtors require Kurtzman Carson to: (a) assist with, among other things, solicitation, balloting and tabulation of votes, and prepare any related reports, as required in support of confirmation of a chapter 11 plan, and in connection with such services, process requests for documents from parties in interest, including, if applicable, brokerage firms, bank back-offices and institutional holders; (b) prepare an official ballot certification and, if necessary, testify in support of the ballot tabulation results; (c) assist with the preparation of the Debtors' schedules of assets and liabilities and statements of financial affairs and gather data in conjunction therewith; (d) manage and coordinate any distributions pursuant to a chapter 11 plan; (e) preparing fee applications for Professional Services in accordance with any required procedures approved by the Court; and (f) provide such other processing, solicitation, balloting and other administrative services described in the Engagement Agreement, but not included in the scope of the Section 156(c) Order, as may be requested from time to time by the Debtors, the Court or the Office of the Clerk of the Bankruptcy Court. Kurtzman Carson will be paid at these hourly rates: Executive Vice President Waived Director/Senior Managing Consultant $175 Consultant/Senior Consultant $70-$160 Project Specialist $50-$100 Technology/Programming Consultant $45-$85 Clerical $25-$50 Kurtzman Carson will also be reimbursed for reasonable out-of-pocket expenses incurred. Drake Foster, general counsel of Kurtzman Carson, 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. Kurtzman Carson can be reached at: Drake D. Foster, Esq. KURTZMAN CARSON CONSULTANTS, LLC 2335 Alaska Ave. El Segundo, CA 90245 Tel: (310) 823-9000 Fax: (310) 823-9133 E-mail: dfoster@kccllc.com About Golden County Foods Golden County and its affiliates GCF Franchisee, Inc., and GCF Holdings II, Inc., filed separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 15-11062 to 15-11064) on May 15, 2015. Mark D. Collins, Esq., and Tyler D. Semmelman, Esq., at Richards, Layton & Finger, P.A., represent the Debtor in their restructuring effort. The Debtors also hired Neligan Foley LLP as local counsel. The Debtors estimated assets and debts at $10 million to $50 million. The U.S. Trustee for Region 3 appointed seven creditors to serve on the Official Committee of Unsecured Creditors. The Committee selected Lowenstein Sandler LLP and Gellert Scali Busenkell & Brown, LLC, to serve as its co-counsel, and GlassRatner Advisory & Capital Group to serve as its financial advisor. GOODMAN NETWORKS: S&P Lowers CCR to 'CCC+' on Weak Performance -------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its corporate credit rating on Plano, Texas-based Goodman Networks Inc. to 'CCC+' from 'B-'. The outlook is negative. At the same time, S&P lowered its issue-level rating on the company's senior secured notes to 'CCC+' from 'B-'. The recovery rating remains '4', indicating S&P's expectation for average (30%-50%; higher end of the range) recovery in the event of a default. "The ratings downgrade is based on Goodman's weak operating and financial performance over the past nine months, and our view that the company's capital structure may be unsustainable longer term, leading to a potential restructuring or distressed debt exchange over the next couple of years if the company does not substantially improve its EBITDA from 2015 levels," said Standard & Poor's credit analyst Scott Tan. Although near-term liquidity should cover uses in 2016 and S&P expects the company to improve its EBITDA in 2016 from 2015, absent meaningful improvement in business performance, S&P believes the company may be challenged to make its interest payments in future years if financial results do not improve and, ultimately, refinance its upcoming $325 million of senior secured notes due 2018. Moreover, the company's adjusted leverage ratio is very high, at over 20x as of Sept. 30, 2015, compared to S&P's previous base-case forecast of 7x area for year-end 2015. Goodman's EBITDA interest coverage ratio is also thin at less than 1x. S&P expects both adjusted leverage and EBITDA interest coverage ratios to improve to around 8x and above 1x in 2016, respectively, as result of EBITDA growth. The outlook is negative and reflects S&P's expectation that there is a greater risk of default over the next few years if business conditions do not improve meaningfully in 2016. S&P could lower the rating if Goodman's operating and financial performance do not improve substantially in 2016, which would pressure liquidity. S&P could also lower the rating if financial results do not improve and S&P believes the company would pursue a restructuring or distressed debt exchange. S&P could raise the rating if the company's operating performance tracks ahead of S&P's expectation, resulting in improved liquidity and the company is able to demonstrate a viable plan to refinance its debt maturities. GREEN AUTOMOTIVE: CFO Alan Bailey Resigns ----------------------------------------- Alan J. Bailey resigned as chief financial officer of Green Automotive Company on Nov. 2, 2015. Mr. Bailey was appointed as chief financial officer on Oct. 8, 2014. About Green Automotive Company Green Automotive Company is a vehicle design, engineering, manufacturing and distribution company. The Company also provides after sales program. It possesses a portfolio of businesses and is active in three main market segments: Cutting edge technology development, engineering and design with a focus on zero and low emission vehicle solutions; Manufacturing and customization of vehicles for markets with the potential to be converted into low emission or electric vehicles, such as shuttle buses, taxis, commercial vehicles, and After sales services for electric or low emission vehicles, including servicing and repair. The Company's balance sheet at June 30, 2014, showed $1.47 million in total assets, $17.9 million in total liabilities, and a stockholders' deficit of $16.5 million. The Company has sustained recurring operating losses and past due payables. These conditions, among others, give rise to substantial doubt about its ability to continue as a going concern, according to the Company's Form 10-Q for the period ended June 30, 2014. GREEN AUTOMOTIVE: To Challenge Typenex Default Arbitration Award ---------------------------------------------------------------- Green Automotive disclosed that on Nov. 4, 2015, it became aware of an arbitration award against it in the amount of $679,893 damages and 22% interest in favor of Typenex Co-Investment, LLC, a creditor of the Company. The Company never received notice of the arbitration proceedings because it had changed its address. The Company intends to challenge this default arbitration award for lack of proper notice and negotiate a settlement with Typenex Co-Investment, LLC. About Green Automotive Company Green Automotive Company is a vehicle design, engineering, manufacturing and distribution company. The Company also provides after sales program. It possesses a portfolio of businesses and is active in three main market segments: Cutting edge technology development, engineering and design with a focus on zero and low emission vehicle solutions; Manufacturing and customization of vehicles for markets with the potential to be converted into low emission or electric vehicles, such as shuttle buses, taxis, commercial vehicles, and After sales services for electric or low emission vehicles, including servicing and repair. The Company's balance sheet at June 30, 2014, showed $1.47 million in total assets, $17.9 million in total liabilities, and a stockholders' deficit of $16.5 million. The Company has sustained recurring operating losses and past due payables. These conditions, among others, give rise to substantial doubt about its ability to continue as a going concern, according to the Company's Form 10-Q for the period ended June 30, 2014. ITUS CORP: Incurs $1.37 Million Net Loss in Fiscal 2015 ------------------------------------------------------- ITUS Corporation filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $1.37 million on $9.25 million of total revenue for the year ended Oct. 31, 2015, compared to a net loss of $9.60 million on $3.66 million of total revenue for the year ended Oct. 31, 2014. As of Oct. 31, 2015, the Company had $9.33 million in total assets, $4.28 million in total liabilities and $5.05 million in total shareholders' equity. A full-text copy of the Form 10-K is available for free at: http://is.gd/ZUjd5H About ITUS Corporation ITUS Corp. -- http://www.ITUScorp.com/-- develops and acquires patented technologies for the purposes of patent monetization and patent assertion. The company currently has 10 patent portfolios in the areas of Key Based Web Conferencing Encryption, Encrypted Cellular Communications, E-Paper(R) Electrophoretic Display, Nano Field Emission Display ("nFED"), Micro Electro Mechanical Systems Display ("MEMS"), Loyalty Conversion Systems, J-Channel Window Frame Construction, VPN Multicast Communications, Internet Telephonic Gateway, and Enhanced Auction Technologies. CopyTele changed its name to "ITUS Corporation" on Sept. 2, 2014, to reflect the Company's change in its business operations. ITUS Corporation reported a net loss of $9.60 million on $3.66 million of total revenue for the year ended Oct. 31, 2014, compared to a net loss of $10.08 million on $389,000 of total revenue for the year ended Oct. 31, 2013. The Company also reported a net loss of $4.25 million for the year ended Oct. 31, 2012, and a net loss of $7.37 million for the year ended Oct. 31, 2011. KAP ENTERPRISES: Plan Complies with Bankruptcy Code Provisions -------------------------------------------------------------- Judge Robert Summerhays of the United States Bankruptcy Court for the Western District of Louisiana, Lafayette Division, entered findings of fact and conclusions of law in connection with the confirmation of the Plan of Reorganization of debtor K.A.P. Enterprises, L.L.C. A hearing was held on November 10, 2015, to consider the confirmation of the plan dated April 2, 2013, as amended and modified on September 2, 2015, and November 9, 2015. Judge Summerhays found that the Debtor has complied with applicable provisions of the Bankruptcy Code, except as otherwise provided or permitted by orders of the court. The judge also found that the plan was proposed in good faith and not by means forbidden by law, that the Debtor is capable of paying or otherwise performing the obligations assumed under the plan, and that the plan is feasible. The case is IN RE: K.A.P. ENTERPRISES, L.L.C. Chapter 11, DEBTOR, Case No. 12-81464 (Bankr. W.D. La.). A full-text copy of Judge Summerhays' December 14, 2015 findings of fact and conclusions of law is available at http://is.gd/HyrgBX from Leagle.com. Thomas R. Willson, Esq. P.O. Drawer 1630 Alexandria, LA 71309-1630 Tel: (318) 442-8658 Fax: (318) 442-9637 E-mail: rocky@rockywillsonlaw.com Reymond Meadaa, Harry Hawthorne, Jose Mathew, Navtej Rangi, Dinesh Shaw, Hulenci, LLC, and Naja Holdings, LLC are represented by: John S. Hodge, Esq. WIENER, WEISS & MADISON, A P.C. 333 Texas St #2350 Shreveport, LA 77101 Tel: (318) 226-9100 Fax: (318) 424-5128 Email: jhodge@wwmlaw.com Red River Bank is represented by: Stephen D. Wheelis, Esq. WHEELIS & ROZANSKI, APLC P.O. Box 13199 2312 South MacArthur Drive Alexandria, LA 71315-3199 Tel: (318) 445-5600 Fax: (318) 445-5710 Email: steve@wheelis-rozanski.com KNAPP MEDICAL: S&P Lowers ICR to 'BB+', Outlook Stable ------------------------------------------------------ Standard & Poor's Ratings Services lowered its issuer credit rating (ICR) on Knapp Medical Center, Texas to 'BB+' from 'BBB'. The outlook is stable. An ICR is a current opinion of an obligor's overall willingness and capacity to meet its financial obligations that is not specific to any particular debt instrument. "Despite an improvement in operating income levels through the first 10 months of fiscal 2015, based on unaudited data, unrestricted reserves to long-term debt remains below levels commensurate with the previous rating," said Standard & Poor's credit analyst Patrick Zagar. Standard & Poor's had a prior expectation that Knapp's unrestricted liquidity would improve since the last review; however, S&P's understanding of this transaction was incorrect. "The now persistent state of comparatively lower unrestricted reserves, combined with an only adequate operating margin in fiscal 2014 and the full incorporation of the 'U.S. Not-For-Profit Acute-Care Stand-Alone Hospitals' criteria, published on Dec. 15, 2014, resulted in the multi-notch downgrade," added Mr. Zagar. The stable outlook reflects S&P's view of Knapp's positive track record of maintaining profitability despite market challenges inherent to the hospital's primary service area, namely a sizable uninsured population. In addition, S&P expects the hospital will continue to leverage its membership within Prime Healthcare Foundation. While not expected, S&P could take a negative rating action in the one-year outlook period should the hospital's utilization and market share decline significantly, resulting in a material change to Knapp's enterprise profile. In addition, negative operating margins and a weakened balance sheet could also result in a lower rating. In S&P's view, a higher rating is unlikely within the near-term due to Knapp's soft volumes and constrained payor mix. However, S&P could raise the rating in the longer-term if the hospital can sustain more robust operating margins and improve its overall liquidity position, especially as it relates to contingent liabilities. LAS VEGAS SANDS: Moody's Lowers CFR to Ba1, Outlook Stable ---------------------------------------------------------- Moody's Investors Service upgraded Las Vegas Sands Corp. (LVSC) Corporate Family Rating and Probability of Default Rating one-notch to Ba1 and Ba1-PD, respectively. The rating on the company's Las Vegas subsidiary credit facility was also upgraded one-notch to Ba1. LVSC's SGL-1 Speculative Grade Liquidity rating did not change indicating very good liquidity. The rating outlook is stable. Las Vegas Sands Corp. ratings upgraded: Corporate Family Rating, to Ba1 from Ba2 Probability of Default Rating, to Ba1-PD from Ba2-PD Las Vegas Sands, LLC ratings upgraded: $1.25 billion senior secured revolver due 2018, to Ba1 (LGD4) from Ba2 (LGD4) $2.25 billion senior secured term loan B due 2020, to Ba1 (LGD4) from Ba2 (LGD4) "The upgrade considers Moody's view that LVSC's assets in Singapore and the US will provide the company with the ability to maintain its very strong credit and liquidity profile despite the expectation of continued weakness and increased competition in Macau, a considerable amount of planned capital expenditures, and a large amount of regular cash dividend payments," stated Keith Foley, a Senior Vice President at Moody's. Going forward, Moody's expects debt/EBITDA will remain at/below 3.0 times. This incorporates Moody's assumption of about $2.5 billion of capital spending in fiscal 2016 and 2017 combined, a significant portion of which is related to the company's Parisian Macau development. It also assumes LVSC will continue to pay regular cash dividends in next two years combined of somewhere near $5 billion, and still end up with about $1 billion of consolidated cash on its balance sheet by the end of 2017. The upgrade also considers Moody's view that, given the very strong outlook for LVSC's financial profile, any outcome related to ongoing litigation, should it occur at some point, will not materially impair the company's financial profile. Ongoing litigation has been a limiting factor with respect to ratings improvement in the past. RATING RATIONALE LVSC's Ba1 Corporate Family Rating reflects the company's strong consolidated performance, very strong credit metrics, and the quality, popularity, and favorable reputation of all its casino properties -- a factor that continues to distinguish the company from most other gaming operators. Also considered is the fact that LVSC owns and operates Marina Bay Sands, which is one of only two casino resorts authorized to operate in Singapore, and has property-level EBITDA margins in excess of 50%. Key credit concerns include Moody's expectation that LVSC will pursue further and significant global casino resort development opportunities that will likely be funded largely with debt. Additionally, Moody's expects that LVSC will continue to return large amounts in capital to shareholders in the form of dividends and share repurchases. LVSC's ratings reflect a consolidated rating approach, whereby we view all of the operations of LVSC as a single enterprise for analytic purposes, regardless of whether or not financings for subsidiaries are done on a stand-alone basis. The Ba1 rating on LVSC's US subsidiary's credit facility considers its senior secured status along with the fact that senior secured debt accounts for almost all of LVSC's consolidated debt capital structure. The stable rating outlook is supported by Moody's view that LVSC has both the ability and willingness to maintain its very strong financial and liquidity profile. There are no material near-term debt maturities and plenty of financial covenant cushion. Additionally, the company maintains a significant unrestricted cash balance. Further ratings improvement is limited at this time given the secured nature of the company's entire debt capital structure; a characteristic that Moody's do not believe is consistent with an investment grade rating. LVSC's ratings could be downgraded if, for any reason, it appears that the company's debt/EBITDA will rise above 3.5 times for an extended period of time. LVSC owns and operates hotel and casino integrated resort facilities in Las Vegas, NV, Bethlehem, PA, Macau, China and Singapore. The company reported consolidated net revenue of about $13.5 billion for the latest 12-month period ended Sept. 30, 2015. The principal methodology used in these ratings was Global Gaming Industry published in June 2014. LKQ CORP: Moody's to Retain Ba1 CFR on Planned Acquisition ---------------------------------------------------------- Moody's Investors Service said that LKQ Corporation's (Ba1, stable) plan to buy Italy-based, Rhiag Group from Apax partners for EUR1.0 billion ($1.1 billion) does not affect the ratings of either company, although it is a negative development for LKQ. Rhiag is a leading distributor of spare parts primarily for passenger cars as well as commercial vehicles in the independent Italian aftermarket and one of the largest players across Eastern Europe. LKQ Corporation, headquartered in Chicago, Illinois, is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. LKQ has operations in North America, the United Kingdom, the Netherlands, Belgium, France, Australia and Taiwan. The company offers its customers a broad range of replacement systems, components, equipment and parts to repair and accessorize automobiles, trucks, and recreational and performance vehicles. Revenues for the last twelve month period ended Sept. 30, 2015 totaled approximately $7.1 billion. LKQ CORP: S&P Puts 'BB+' CCR on CreditWatch Negative ---------------------------------------------------- Standard & Poor's Ratings Services said that it has placed all of its ratings on LKQ Corp., including S&P's 'BB+' corporate credit rating, on CreditWatch with negative implications. "The CreditWatch placement reflects our view that the acquisition will increase the likelihood that LKQ's credit measures will no longer be consistent with our expectations for an intermediate financial risk profile," said Standard & Poor's credit analyst Lawrence Orlowski. "We had previously expected the company to maintain a debt leverage metric of 2x-3x or lower and a funds from operations (FFO)-to-total debt ratio of at least 30%." Based on S&P's estimates pro forma for this transaction, it believes that the company's debt-to-EBITDA metric could reach 3.0x and that its cash flow metrics will also be worse than S&P had previously estimated. LKQ's track record of operational efficiency and successful acquisition integration since 2007 is solid, in S&P's opinion. Although this transaction, if completed successfully, could enhance LKQ's scale and diversity in Europe, S&P views it as somewhat more aggressive relative to the company's historical standards. The transaction has been approved by the boards of directors of both companies and is subject to customary closing conditions and regulatory approvals. LKQ expects that the transaction will close in the second quarter of 2016. The CreditWatch negative placement reflects S&P's expectation that the increased debt LKQ is assuming to fund the acquisition will weaken its financial risk profile relative to S&P's prior expectations. S&P expects to resolve the CreditWatch placement in the next 90 days after it reviews the impact of the transaction on LKQ's business and financial risk profiles, which will focus on the company's future capital structure and financial policy. S&P could lower its ratings on LKQ by up to one notch after S&P completes its review if it believes that its debt-to-EBITDA metric was likely to remain consistently at 3.0x or higher. LONESTAR GENERATION: S&P Lowers Rating on $675MM Loan to 'B+' ------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its rating on Lonestar Generation LLC's $675 million senior secured term loan B and $50 million senior secured revolving credit facility to 'B+' from 'BB-'. S&P also revised its recovery rating on the debt to '2' from '1'. The '2' recovery indicates substantial (70% to 90%) recovery under a default scenario. S&P expects recovery prospects at the higher end of the range. The downgrade follows significant financial underperformance of the portfolio in the Electric Reliability Council of Texas (ERCOT) market. Sharply lower power prices, and resulting gross margins, have resulted in Lonestar's projected DSCR for 2015 declining to about 1.2x from earlier average expectations of about 1.8x to 1.9x. The underperformance stemmed from a combination of diminished load and depressed natural gas prices. Unlike other regions, market heat rates in ERCOT have not expanded to mitigate the adverse effects of declining gas prices, resulting in a significant decline in net revenues for all ERCOT assets, including Lonestar's portfolio. Over the past year, deleveraging has lagged expectation -- it's already behind by about $42 million for year-end 2015 compared with expectations -- as the project has only repaid its mandatory amortization. "With this significant market volatility not likely to be resolved in the near term, our revised expectations of DSCR levels of about 1.05 to 1.2x for 2015 and 2016 do not support ratings in the 'BB' category," said Standard & Poor's credit analyst Aneesh Prabhu. S&P sees the largest change in cash flows contribution from the coal-fired Twin Oaks facility. S&P estimates that the roughly $50 million decline in Lonestar's ERCOT gross margin compared with estimates at the start of the year is because of lower gross margins at this asset. While S&P estimates a $13 million to $15 million pick up in margins from the dispatch of a portion (154 megawatts [MW]) of the Frontera combined-cycle gas turbine into Mexico from May 2015, the increase is not enough to fully offset the decline in credit quality. The outlook is stable. Despite additional volatility added to the portfolio from merchant coal-fired gross margins, most gross margins thorough 2016 now accrue from the toll. With coal-fired margins expected to be flat, S&P expects relatively stable performance compared with the decline in margins over the past 12-months, and that the project can meet its adjusted projected financial measures. The DSCR should be about 1.1x during the next 12 months. MAGNETATION LLC: Pact With AK Steel Must Be Honored, Court Says --------------------------------------------------------------- John Myers at Forum News Service reports that Judge Gregory Kishel granted on Dec. 22, 2015, Magnetation LLC's motion for an order requiring that the Company's contract with AK Steel must be honored. Forum News relates that the court order requires AK Steel, which had been moving to distance itself from the Company since April 2015, to continue to abide by the earlier accord to acquire the Company's pelletized iron ore processed in Plant 4 outside Grand Rapids. "This contract assumption was a key item to allow us to move forward through the process," Forum News quoted Matt Lehtinen, the Company's president, as saying. According to Forum News, the Company had hoped to emerge reorganized in the spring of 2016, but Mr. Lehtinen said that will now happen "later than previously communicated." Forum News states that of the Company's four Iron Range processing plants, only Plant 4 is expected to remain open into 2016. The report adds that two of the others are already closed down while Plant 2 is set to idle at the end of January 2016 due to the drop in iron ore price and demand from North American steelmakers that have been affected by cheaper, imported steel. About Magnetation LLC Magnetation LLC -- http://www.magnetation.com/-- is a joint venture between Magnetation, Inc. (50.1% owner) and AK Iron Resources, LLC, an affiliate of AK Steel Corporation (49.9% owner). Magnetation LLC recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Magnetation LLC owns iron ore concentrate plants located in Keewatin, MN, Bovey, MN and Grand Rapids, MN, and an iron ore pellet plant in Reynolds, IN. Magnetation LLC and four subsidiaries sought Chapter 11 bankruptcy protection (Bankr. D. Minn. Lead Case No. 15-50307) in Duluth, Minnesota, on May 5, 2015, after reaching a deal with secured noteholders on a balance sheet restructuring. The cases are assigned to Chief Judge Gregory F Kishel. The Debtors have tapped Davis Polk & Wardwell LLP and Lapp, Libra, Thomson, Stoebner & Pusch, Chtd., as attorneys; Blackstone Advisory Partners LP as financial advisor; and Donlin, Recano & Company, Inc., as the claims agent. The Debtor's exclusive period for filing a plan and disclosure statement ends Sept. 2, 2015. The U.S. Trustee for Region 12 appointed three creditors of Magnetation LLC to serve on an official committee of unsecured creditors. MAGNETATION LLC: Taps PJT Partners as Investment Banker ------------------------------------------------------- Magnetation LLC, et al. seek authorization from the Hon. Gregory F. Kishel of the U.S. Bankruptcy Court for the District of Minnesota to employ PJT Partners LP as investment banker, replacing Blackstone Advisory Partners L.P., nunc pro tunc to October 1, 2015. On October 7, 2014, the Board of Directors of Blackstone's general partner approved a plan to spin off its financial and strategic advisory services, restructuring and reorganization advisory services, and Park Hill fund placement businesses, and to combine these businesses with an independent financial advisory firm founded by Paul J. Taubman, to form an independent, publicly traded company called PJT Partners Inc. This spinoff was effected via a multi-step transaction. Upon the consummation of the Transaction on the Closing Date, Blackstone's restructuring and reorganization advisory group became a part of PJT and Blackstone's restructuring professionals became employees of PJT. The Assignment Agreement provides that, subject to the Bankruptcy Court's approval, PJT will assume and undertake to perform all of the obligations of Blackstone under the Engagement Letter and the Original Order, including rendering all of the services described in the Engagement Letter and the Original Application. The Assignment Agreement provides that PJT will benefit from all of the rights of Blackstone under the Engagement Letter and the Original Order, including the compensation and expense reimbursement arrangements and the indemnification rights. Mark Buschmann, partner of PJT Partners and Annah Kim-Rosen, chief compliance officer of PJT Partners, 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. PJT Partners can be reached at: Mark Buschmann PJT PARTNERS LP 280 Park Avenue New York, NY 10017 About Magnetation LLC Magnetation LLC -- http://www.magnetation.com/-- is a joint venture between Magnetation, Inc. (50.1% owner) and AK Iron Resources, LLC, an affiliate of AK Steel Corporation (49.9% owner). Magnetation LLC recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Magnetation LLC owns iron ore concentrate plants located in Keewatin, MN, Bovey, MN and Grand Rapids, MN, and an iron ore pellet plant in Reynolds, IN. Magnetation LLC and four subsidiaries sought Chapter 11 bankruptcy protection (Bankr. D. Minn. Lead Case No. 15-50307) in Duluth, Minnesota, on May 5, 2015, after reaching a deal with secured noteholders on a balance sheet restructuring. The cases are assigned to Chief Judge Gregory F Kishel. The Debtors have tapped Davis Polk & Wardwell LLP and Lapp, Libra, Thomson, Stoebner & Pusch, Chtd., as attorneys; Blackstone Advisory Partners LP as financial advisor; and Donlin, Recano & Company, Inc., as the claims agent. The U.S. Trustee for Region 12 appointed three creditors of Magnetation LLC to serve on an official committee of unsecured creditors. MAGNETATION LLC: Unit to Assume AK Steel Ore Pellet Agreement ------------------------------------------------------------- Magnetation LLC on Dec. 23 disclosed that its subsidiary Mag Pellet LLC has been authorized by the United States Bankruptcy Court for the District of Minnesota to assume its long-term iron ore pellet offtake agreement with AK Steel Corporation. The Company sought Bankruptcy Court approval to assume the contract in October 2015. The Bankruptcy Court granted the Company's motion following a hearing on the matter earlier this month. Magnetation is pleased with the Bankruptcy Court's ruling and is looking forward to continuing its focus on producing and shipping high-quality fluxed iron ore pellets. "This court decision is critical to Magnetation's success" said Larry Lehtinen, CEO of Magnetation. "With this behind us, we can continue forward with our goal of being the lowest cost iron ore pellet producer in North America." About Magnetation LLC Magnetation LLC -- http://www.magnetation.com/-- is a joint venture between Magnetation, Inc. (50.1% owner) and AK Iron Resources, LLC, an affiliate of AK Steel Corporation (49.9% owner). Magnetation LLC recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Magnetation LLC owns iron ore concentrate plants located in Keewatin, MN, Bovey, MN and Grand Rapids, MN, and an iron ore pellet plant in Reynolds, IN. Magnetation LLC and four subsidiaries sought Chapter 11 bankruptcy protection (Bankr. D. Minn. Lead Case No. 15-50307) in Duluth, Minnesota, on May 5, 2015, after reaching a deal with secured noteholders on a balance sheet restructuring. The cases are assigned to Chief Judge Gregory F Kishel. The Debtors have tapped Davis Polk & Wardwell LLP and Lapp, Libra, Thomson, Stoebner & Pusch, Chtd., as attorneys; Blackstone Advisory Partners LP as financial advisor; and Donlin, Recano & Company, Inc., as the claims agent. The Debtor's exclusive period for filing a plan and disclosure statement ends Sept. 2, 2015. The U.S. Trustee for Region 12 appointed three creditors of Magnetation LLC to serve on an official committee of unsecured creditors. MERCANTIL COMMERCEBANK: Fitch Affirms BB/B Issuer Default Ratings ----------------------------------------------------------------- Fitch Ratings has affirmed the Long- and Short-term Issuer Default Ratings (IDRs) of Mercantil Commercebank Florida Bancorp (MCFB) and its main subsidiary, Mercantil Commercebank, N.A. at 'BB/B' with a Stable Outlook. In addition, Fitch has assigned Long- and Short-term IDRs of 'BB/B' to Mercantil Commercebank Holding Corp. (MCH), the ultimate domestic U.S. holding company. Through MCH, the bank is beneficially owned by Mercantil Servicios Financieros (MSF), one of the largest financial institutions based in Venezuela. KEY RATING DRIVERS IDRS AND VRs MCFB's IDRs reflect its geographic concentration, mainly in South Florida, a risk profile that includes exposure to economic conditions in Latin America, a limited franchise, and modest earnings metrics. Offsetting this, the company's ratings are supported by its solid capital levels and good liquidity profile. Fitch believes the improved financial performance over the last few years is sustainable. In Fitch's view, MCFB's and MCH's ratings are not immediately affected by the deteriorating economic conditions in Venezuela and their impact on MSF. Although MCFB and MCH are part of the organizational structure of MSF, and the franchise could be affected by the financial performance of its parent company/and or affiliated companies in Venezuela and other countries, Fitch believes any impact on the Florida-based franchise, at this time, is limited. In Fitch's opinion, contagion risk to MCFB from the parent is limited at this time. MCFB's holding company structure isolates its assets and the strong local regulator can restrict transfers of capital and liquidity from the subsidiary to the parent. Further, to date, there is no evidence that MSF has withdrawn liquidity or capital. In general, subsidiary banks can be vulnerable to a sharp deterioration in the parent's credit profile. However, Fitch believes this is a rare case, where the subsidiary's Viability Rating (VR), and Long-Term IDR, can be higher than its parent's Long-Term IDR. The funding structure is largely core-deposit driven and benefits from a high volume of international deposits. The majority of international funding is sourced from Venezuelan depositors who have turned to U.S. banks as a safe haven. These deposits historically have a very low attrition rate, limited rate sensitivity and provide a stable source of low-cost funding. Overall, MCFB has exhibited a relatively stable deposit base, despite volatility in Venezuela over the last 10 years that has pressured MSF in its home market. To cushion potential volatility and improve diversification, the company is implementing a strategy to increase U.S. deposits through a branch-led expansion, primarily in the Houston area, which Fitch views favorably. Furthermore, Fitch also believes MCH's consolidated balance sheet has good liquidity with a combination of cash, cash equivalents and liquid investment securities representing about 28% of total assets as of Sept. 30, 2015 and a loan-to-deposit ratio of 87%. In Fitch's view, the lack of access to external capital is considered a rating constraint. That said, MCH's capital position is adequate and supports the risks inherent in the bank's business mix. MCH's TCE/TA ratio stood at 8.33% and tier 1 capital ratio stood at 11.94% at Sept. 30, 2015. Given projected loan growth, capital is expected to decline slightly, but should remain within our expectations for the rating level. The decline should also be manageable given the expectation of sustainable profitability. Credit trends have significantly improved from the peak of the crisis, as net charge-offs (NCOs), nonperforming assets (NPAs), and the inflows of criticized/classified assets have all returned to normalized levels. Overall, Fitch views the company's asset quality performance over time favorably. Fitch expects future credit costs to be manageable given the reduction in overall balances in riskier segments of the CRE market, including construction and development loans as well as tempered growth in commercial and industrial (C&I) loans. For third quarter 2015 (3Q15), NPAs, calculated by Fitch to include accruing troubled debt restructuring, were 1.31% compared to 1.08% the same period a year ago. NCOs declined to nil for 3Q15 compared to 3.9% at the peak of the crisis year-end 2009. MCH's earnings measures tend to be modest when compared to other community banks and are considered a rating constraint. Fitch attributes this to the company's asset mix, which is lower-yielding, as cash and investment securities averaged 29% of total assets over the past four quarters. Additionally, MCH's large correspondent banking business and short-term trade finance business are lower-yielding than other types of loans, which also constrains spread revenue and the margin. Other factors affecting recent performance include the extended period of low interest rates as well as increased expenses related to on-going growth efforts. The company has improved diversification in its loan mix by reducing real estate lending and growing its C&I portfolio. Although Fitch views the diversification in the loan mix as a positive, the industry in general has also been growing C&I loans and competition is fierce. As such, Fitch views the company's recent pullback in 2015 favorably. In general, Fitch is concerned with the potential for credit quality deterioration. Given MCFB's targeted, niche client base, which gives the company an opportunity to leverage its expertise in Latin America as well as in oil-related industries, there is some concern that asset quality could deviate from recent trends given the prolonged decline in energy and commodities prices. Additionally, the bank also engages in syndicated lending through participations in large lending arrangements to corporate borrowers. Although performance to date has been stable, Fitch believes a reversion in credit performance to normalized levels from historical lows may lead to credit deterioration in the syndicated loan book. SUPPORT RATING AND SUPPORT RATING FLOOR MCH and MCFB have a Support Rating of '5' and Support Rating Floor of 'NF'. In Fitch's view, MCH and MCFB are not systemically important and, therefore, the probability of support is unlikely. IDRs and VRs do not incorporate any support. LONG- AND SHORT-TERM DEPOSIT RATINGS Mercantil Commercebank, N.A.'s uninsured deposit ratings are rated one notch higher than its IDR and senior unsecured debt rating because U.S. uninsured deposits benefit from depositor preference. U.S. depositor preference gives deposit liabilities superior recovery prospects in the event of default. HOLDING COMPANY MCH has a bank holding company (BHC) structure with the bank as the main subsidiary. The subsidiary is considered core to the parent holding company, supporting equalized ratings between the bank subsidiary and the BHC. IDRs and VRs are equalized with those of MCH's operating company and bank reflecting its role as the BHC, which is mandated in the U.S. to act as a source of strength for its bank subsidiaries. RATING SENSITIVITIES IDRS AND VR Given MCFB's geographic concentration in South Florida, its IDRs are sensitive to market conditions within its regional footprint. Additionally, MCFB has a large component of international exposure (roughly 34% of its total loan book), which is also affected by economic conditions in Latin America. MCFB's ratings are on the high end of its near term rating potential. Although Fitch recognizes the company's improvements in asset quality and its strategy to diversify its deposit base, the company's ties to its parent company, MSF, and affiliated bank, Mercantil CA Banco Universal, are considered a rating constraint. Fitch notes that there may be risks to MCFB's Venezuelan deposit base as depositors may seek to withdraw their funds to make routine operational purchases. Factors that could trigger negative rating action would be a change in depositor behavior as evidenced by a declining trend in deposits. Although not anticipated, reputational risk is also a concern given that MCFB's ultimate parent is domiciled in Venezuela. Other factors that would be viewed negatively are a decline in capital or a material deterioration in credit performance. Fitch notes that MCH has, historically, experienced above-average C&I loan growth that is, as yet, unseasoned. SUPPORT RATING AND SUPPORT RATING FLOOR The Support Rating and Support Rating Floor are sensitive to Fitch's assumption around capacity to procure extraordinary support in case of need. LONG- AND SHORT-TERM DEPOSIT RATINGS The ratings of long- and short-term deposits issued by Mercantil Commercebank, N.A. are primarily sensitive to any change in the company's IDRs. This means that should a Long-term IDR be downgraded, deposit ratings could be similarly affected. HOLDING COMPANY If MCH or MCFB became undercapitalized or increased their double leverage significantly, there is potential that Fitch could notch the holding company IDR and VR from the ratings of the operating companies. PROFILE Established in 1979, Mercantil Commercebank, N.A. (MCB), based in Coral Gables, FL, is a privately held, FDIC insured, nationally chartered bank, regulated by the Office of the Comptroller of the Currency (OCC). The bank has 12 branches throughout Miami-Dade County, four in Broward County, one in Palm Beach County, one in New York, NY, and five in the Houston, TX area. The bank is ultimately beneficially owned by Mercantil Servicios Financerios (MSF), one of the largest financial groups based in Venezuela. Fitch has affirmed the following ratings: Mercantil Commercebank Florida BanCorp. -- Long-term IDR at 'BB'; Outlook Stable; -- Short-term IDR at 'B'; -- VR at 'bb'; -- Support at '5'; -- Support floor at 'NF'. Mercantil Commercebank, N.A. -- Long-term IDR at 'BB'; Outlook Stable; -- Long-term deposits t 'BB+'; -- Short-term IDR at 'B'; -- Short-term deposits at 'B'; -- VR at 'bb'; -- Support at '5'; -- Support Floor at 'NF'. Fitch has assigned the following ratings: Mercantil Commercebank Holding Corp. -- Long-term IDR of 'BB'; Outlook Stable; -- Short-term IDR of 'B'; -- VR of 'bb'; -- Support of '5'; -- Support floor of 'NF'. MF GLOBAL: Corzine, CFTC Duel Over Collapse ------------------------------------------- Peg Brickley, writing for Dow Jones' Daily Bankruptcy Review, reported that MF Global Holdings Ltd. collapsed more than four years ago, but former New Jersey Gov. Jon Corzine and the U.S. Commodity Futures Trading Commission are still sparring in federal court over who is to blame. According to the report, the brokerage firm collapsed in the fall of 2011 revealing a shortfall of more than $1 billion in customer accounts. In an exchange of court papers, lawyers for the CFTC and for Mr. Corzine argued whether Mr. Corzine is liable as the person in control when the brokerage tapped customer accounts to support its own proprietary operations, the report related. 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. MILLENNIUM LAB: Judge Silverstein Won't Halt Chapter 11 Plan ------------------------------------------------------------ Matt Chiappardi at Bankruptcy Law360 reported that a Delaware bankruptcy judge refused on Dec. 18, 2015, to halt Millennium Lab's Chapter 11 plan, which aims to resolve a $256 million False Claims Act deal with federal regulators, to wait for objecting creditors' attempt to appeal to the Third Circuit, agreeing with the Debtors that the wait could tank the company. Ruling from the bench in Wilmington, U.S. Bankruptcy Judge Laurie Selber Silverstein said that the balance of harms tipped well in favor of drug-testing company Millennium Labs, which maintained it had a hard deadline to pay. About Millennium Lab Millennium Lab Holdings II, LLC, Millennium Health, LLC and Rxante, LLC, providers of laboratory-based diagnostic testing focused on drugs of abuse and clinical medication monitoring, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 15-12284, 15-12285 and 15-12286, respectively) on Nov. 10, 2015. The Debtors estimated assets in the range of $100 million to $500 million and liabilities of more than $1 billion. The Debtors have engaged Skadden, Arps, Slate, Meagher & Flom LLP as counsel; Young Conaway Stargatt & Taylor, LLP as conflicts counsel; Lazard Freres & Co., LLC, as investment banker; Alvarez & Marsal as financial advisor; and Prime Clerk LLC as claims and noticing agent. Judge Laurie Selber Silverstein has been assigned the case. MILLENNIUM LAB: Reorganization Plan Declared Effective ------------------------------------------------------ BankruptcyData reported that Millennium Health's Amended Prepackaged Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. Chief executive officer Brock Hardaway comments, "We have officially completed our financial restructuring and we emerge as a stronger company with substantially less debt, new ownership, and a more efficient corporate structure. The restructuring provides a much improved balance sheet, greater liquidity and allows the company to put more of the cash it generates toward future growth and success of the business. There remains much uncertainty in our industry, but these changes will afford us the greatest opportunity to be a successful organization for years to come. The Court characterized this process as a 'fresh start' for Millennium, and we embrace that opportunity." This privately-held medical monitoring provider filed for Chapter 11 protection on Nov. 10, 2015, listing more than $100 million in prepetition assets. About Millennium Lab Millennium Lab Holdings II, LLC, Millennium Health, LLC and Rxante, LLC, providers of laboratory-based diagnostic testing focused on drugs of abuse and clinical medication monitoring, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 15-12284, 15-12285 and 15-12286, respectively) on Nov. 10, 2015. The Debtors estimated assets in the range of $100 million to $500 million and liabilities of more than $1 billion. The Debtors have engaged Skadden, Arps, Slate, Meagher & Flom LLP as counsel; Young Conaway Stargatt & Taylor, LLP as conflicts counsel; Lazard Freres & Co., LLC, as investment banker; Alvarez & Marsal as financial advisor; and Prime Clerk LLC as claims and noticing agent. Judge Laurie Selber Silverstein has been assigned the case. NAKED BRAND: Successfully Completes $7.5 Million Public Offering ---------------------------------------------------------------- Naked Brand Group Inc. has successfully completed its underwritten public offering of 1,875,000 shares of common stock at an offering price of $4.00 per share. The offering resulted in gross proceeds of $7.5 million and net proceeds of approximately $6.5 million, after underwriting discounts and estimated expenses of the offering. In connection with the offering, the shares began trading on the NASDAQ Capital Market under the symbol "NAKD" as of Dec. 18, 2015. Noble Financial Capital Markets and Dawson James Securities, Inc. acted as the underwriters in connection with the offering. Dawson James Securities, Inc. also acted as the "qualified independent underwriter" (as defined by applicable FINRA rules) for the offering. Duane Morris LLP, New York office, acted as counsel to the Company and Roetzel & Andress LPA acted as counsel to the underwriters. The offering was made pursuant to a prospectus filed as part of an effective registration statement that Naked filed with the Securities and Exchange Commission. About Naked Brand Naked Brand Group Inc. designs, manufactures, and sells men's innerwear and lounge apparel products in the United States and Canada. It offers various innerwear products, including trunks, briefs, boxer briefs, undershirts, T-shirts, and lounge pants under the Naked brand, as well as under the NKD sub-brand for men. The company sells its products to consumers and retailers through wholesale relationships and direct-to-consumer channel, which consists of an online e-commerce store, thenakedshop.com. Naked Brand Group Inc. is based in New York, New York. Naked Brand reported a net loss of $21.07 million for the year ended Jan. 31, 2015, compared to a net loss of $4.23 million for the year ended Jan. 31, 2014. BDO USA, LLP, in New York, NY, issued a "going concern" qualification on the consolidated financial statements for the year ended Jan. 31, 2015, citing that the Company incurred a net loss of $21,078,265 for the year ended Jan. 31, 2015, had a capital deficit of $2,224,180 at Jan. 31, 2015, and the Company expects to incur further losses in the development of its business. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of Oct. 31, 2015, the Company had $2.01 million in total assets, $2.46 million in total liabilities and a $444,074 total capital deficit. Going Concern "At October 31, 2015, we did not have sufficient working capital to implement our proposed business plan over the next 12 months, had not yet achieved profitable operations and expect to continue to incur significant losses from operations in the immediate future. These factors cast substantial doubt about our ability to continue as a going concern. To remain a going concern, we will be required to obtain the necessary financing to meet our obligations and repay our substantial existing liabilities as well as further liabilities arising from normal business operations as they come due. Management plans to obtain the necessary financing through the issuance of equity to existing stockholders. Should we be unable to obtain this financing, we may need to substantially scale back operations or cease business. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. There are no assurances that we will be able to obtain additional financing necessary to support our working capital requirements. To the extent that funds generated from operations are insufficient, we will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to us," the Company states in the Quarterly Report for the period ended Oct. 31, 2015. NELSON SERVICE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Nelson Service Group, Inc. 900 South Chestnut Street Florence, AL 35630 Case No.: 15-83453 Chapter 11 Petition Date: December 23, 2015 Court: United States Bankruptcy Court Northern District of Alabama (Decatur) Judge: Hon. Clifton R. Jessup Jr. Debtor's Counsel: Kevin D. Heard, Esq. HEARD, ARY & DAURO, LLC 303 Williams Avenue SW Park Plaza Suite 921 Huntsville, AL 35801 Tel: (256) 535-0817 Fax: (256) 535-0818 Email: kheard@heardlaw.com Total Assets: $1.49 million Total Liabilities: $750,415 The petition was signed by Alex Nelson, president and CEO. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/alnb15-83453.pdf NORTHERN FRONTIER: Obtains Temporary Financial Covenant Waiver -------------------------------------------------------------- Northern Frontier Corp. on Dec. 24 disclosed that is has received a temporary waiver from its senior lending syndicate of certain financial covenants under its senior credit facilities for the period ended December 31, 2015. Management believes that Northern Frontier may breach certain financial covenants under its senior credit facilities for the period ended December 31, 2015 and has negotiated a Waiver of the anticipated breaches from its Lenders. The Waiver terms are as follows: -- the Lenders waive compliance by Northern Frontier of the senior funded debt to EBITDA ratio covenant; -- the Lenders waive compliance by Northern Frontier of the fixed charge coverage ratio covenant; and -- the Waiver expires on February 15, 2016. The Waiver is conditional on, among other items, Northern Frontier entering into an amended and restated senior credit facilities on terms satisfactory to the Lenders on or before the expiration of the Waiver Period. The Waiver is a temporary solution to allow management and the Lenders adequate time to amend Northern Frontier's credit facilities. About Northern Frontier Corp. Northern Frontier's strategic objective is to create a large industrial and environmental services business through a buy and build growth strategy. Currently, the Corporation provides: civil construction, excavation, fabrication and maintenance services to the industrial industry, bulk water transfer logistic services and installs and dismantles remote workforce lodging and modular offices in western Canada. NORTHWEST MANAGEMENT: Case Summary & 8 Top Unsecured Creditors -------------------------------------------------------------- Debtor: Northwest Management, LLC 13601 - 80th Circle North, Suite 300 Maple Grove, MN 55369 Case No.: 15-44366 Chapter 11 Petition Date: December 23, 2015 Court: United States Bankruptcy Court District of Minnesota (Minneapolis) Judge: Hon. Katherine A. Constantine Debtor's Counsel: Steven B Nosek, Esq. STEVEN NOSEK, P.A. 2855 Anthony Ln S, Ste 201 St Anthony, MN 55418 Tel: 612-335-9171 Email: snosek@noseklawfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jerry Ritten, president. A list of the Debtor's eight largest unsecured creditors is available for free at http://bankrupt.com/misc/mnb15-44366.pdf OAKFABCO INC: Asbestos Panel Wants Insurance Professional Services ------------------------------------------------------------------ The Asbestos Claimants' Committee in the Chapter 11 case of Oakfabco, Inc., seeks authority from the U.S. Bankruptcy Court for the Northern District of Illinois to retain Henry Booth and Colin Gray to provide the insurance professional services. According to the Committee, on Sept. 11, 2015, the Debtor filed three motions seeking orders authorizing and approving certain settlement agreements that the Debtor entered into with certain insurers prior to the Petition Date. Among other things, the Insurance Settlement Agreements provide for payments totaling $17,333,079 in settlement of any remaining obligations of the Settling Insurers under policies that they issued to the Debtor. The Debtor intends to file a Chapter 11 plan of liquidation providing for the establishment of a liquidating trust, funded by the Settlement Proceeds, to resolve and pay existing asbestos claims against the Debtor. In this relation, the Asbestos Committee has determined that in order to properly evaluate the Insurance Settlement Motions, it needs the assistance of both an insurance archeologist and insurance erosion auditor. The Debtor has provided the Asbestos Committee with evidence of three missing excess liability insurance policies, aggregating $12 million in limits for asbestos bodily injury claims. However, the Debtor and the Settling Insurers have been unsuccessful in locating those policies. Mr. Booth will serve as insurance archaeologist to either locate the policies, or alternatively, reconstruct their terms, if possible. Mr. Booth will provide services at the reduced hourly rate of $300, plus out of pocket expenses. Mr. Booth's rate in the case represents a reduction of $100/hour from the rate that Mr. Booth customarily charges for expert consultation and testimony. In addition, Mr. Booth has agreed to cap his fees at $3,500. Mr. Gray will serve as insurance recoveries specialist, and insurance erosion auditor. Mr. Gray proposes to provide services at his regular hourly rate of $400. Mr. Gray estimates the cost of his services ranging from $8,000 to $20,000, plus out of pocket expenses. To the best of the Committee's knowledge, Messrs. Booth and Gray are "disinterested persons" as that term is defined in Section 101(14) of the Bankruptcy Code. The Asbestos Claimants' Committee is represented by: Frances Gecker, Esq. Joseph D. Frank, Esq. Micah R. Krohn, Esq. FRANKGECKER LLP 325 North LaSalle Street, Suite 625 Chicago, IL 60654 Tel: (312) 276-1400 Fax: (312) 276-0035 E-mail: mkrohn@fgllp.com About Oakfabco, Inc. Oakfabco, Inc, formerly known as Kewanee Boiler Corporation, has not manufactured boilers since 1988 when it sold its Kewanee boiler business in an 11 U.S.C. Section 363 sale to Coppus Engineering Corporation. In early 2009, it sold all of its remaining assets. The Debtor has no employees, and, Frederick W. Stein is the Debtor's sole officer and director. The Debtor's sole remaining asset is its insurance, and it has no known liabilities other than asbestos claims. In January 1970, Kewanee Boiler Corp, then a newly-formed Illinois Corporation, acquired the assets and debt of American Standard, Inc.'s commercial boiler manufacturing division known as "Kewanee Boiler." The boilers manufactured and sold by Kewanee Boiler were insulated with asbestos. Oakfabco sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 16-27062) on Aug. 7, 2015, to resolve its remaining asbestos claims. Reed Smith LLP serves as counsel to the Debtor. The Debtor estimated $10 million to $50 million in assets and debt. The U.S. Trustee for Region 11, appointed four members to the Asbestos Claimants' Committee in the Chapter 11 bankruptcy case of Oakfabco Inc. OAS SA: Gets Creditor Support for $339M Sale of Invepar Stake ------------------------------------------------------------- Jonathan Randles at Bankruptcy Law360 reported that Brazilian construction firm OAS SA said on Dec. 18, 2015, that it had reached a deal with creditors to reorganize the company, a plan that would include the sale of the firm's prized stake in airport and infrastructure manager Invepar for at least 1.35 billion reais ($339 million). OAS said it plans to sell the Invepar stake to global investment firm Brookfield Asset Management Inc., subject to court approval. Brookfield had been negotiating with OAS before the construction firm filed for bankruptcy in April. About OAS S.A. The OAS Group is among the largest and most experienced infrastructure companies in Brazil, focusing on heavy engineering and equity investments in infrastructure projects located in and outside Brazil and abroad for both public and private clients. The OAS Group provides services in 22 countries in Latin America, the Caribbean and Africa. Based in Sao Paulo, Brazil, OAS S.A. is the holding company at the apex of the OAS Group. Its share capital is divided between CMP Participacoes Ltda. (owned by Mr. Cesar de Araujo Mata Pires), which has a 90% stake, and LP Participacoes e Engenharia Ltd. (owned by Mr. Jose Adelmario Pinheiro Filho, which has a 10% stake. Amid an investigation into alleged corruption and money laundering, and missed interest payments, OAS S.A. and its affiliates Construtora OAS S.A., OAS Investments GmbH, and OAS Finance Limited on March 31, 2015, commenced judicial reorganization proceedings before the First Specialized Bankruptcy Court of Sao Paulo pursuant to Federal Law No. 11.101 of February 9, 2005 of the laws of the Federative Republic of Brazil. On April 15, 2015, OAS S.A., et al., filed Chapter 15 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 15-10937) in Manhattan, in the United States to seek U.S. recognition of the Brazilian proceedings. Renato Fermiano Tavares, as foreign representative, signed the petitions. The cases are assigned to Judge Stuart M. Bernstein. White & Case, LLP, serves as counsel in the U.S. cases. OAS S.A. listed at least US$1 billion in assets and liabilities. OPPENHEIMER HOLDINGS: Moody's Affirms B2 CFR, Alters Outlook to Pos ------------------------------------------------------------------- Moody's Investors Service affirmed Oppenheimer Holdings, Inc.'s B2 corporate family rating and B2 senior secured debt rating, and changed the rating outlook to positive from stable. RATINGS RATIONALE Moody's said the rating affirmation is driven by Oppenheimer's modestly profitable franchise and diversified revenue base, and its commitment towards maintaining sufficient investment in and attention to risk management and compliance functions that are at the appropriate level for the brokerage industry. In working to remediate various compliance challenges that arose after the onset of the financial crisis, Oppenheimer has not appeared to increase risk in other areas of its business in an attempt to boost returns, an important positive factor that supports its existing creditworthiness, said Moody's. The company's debt/EBITDA (adjusted to capitalize operating leases) was 4.3x for the trailing 12-months through September 2015, which is a reasonably healthy level for its existing rating, said Moody's. Moody's said the change to a positive outlook reflects the potential for Oppenheimer's credit strength to improve over the next year. Oppenheimer has invested substantial resources with the objective of improving its compliance function and financial advisor oversight, and, if successful, this would alter its post-crisis trend of compliance failures and incurrence of significant fines and penalties, said Moody's. Separately, said Moody's, Oppenheimer's earnings should benefit from increased short-term interest rates via higher cash sweep fees on client cash balances. Moody's added that Oppenheimer's ongoing consideration of creditors' interests in its operating and strategic decision-making priorities will remain a key factor in its assessment of Oppenheimer's creditworthiness. What Could Change the Rating -- UP Moody's said the demonstration of an improved risk and control framework could result in Oppenheimer's ratings being upgraded. A sustained improvement in profitability and debt leverage could also lead to an upgrade, said Moody's. What Could Change the Rating -- DOWN Moody's said that any significant new issues in risk control or litigation could pressure Oppenheimer's ratings. A broad slowdown in revenue generation leading to losses would also be viewed negatively, added Moody's. The principal methodology used in these ratings was Global Securities Industry Methodology published in May 2013. P2 LOWER: Moody's Affirms B2 CFR & Changes Outlook to Stable ------------------------------------------------------------ Moody's Investors Service changed the rating outlook of P2 Lower Acquisition, LLC (parent borrower of HELIOS) to stable from negative. At the same time, Moody's affirmed P2's existing ratings, including its B2 CFR. HELIOS provides pharmacy benefit management services for the workers' compensation market and is jointly owned by StoneRiver Group, LP and affiliates of Kelso & Company. Ratings affirmed with a stable outlook: P2 Lower Acquisition LLC Corporate Family Rating at B2 Probability of Default Rating at B2-PD First Lien Term Loan at B1 (LGD3) Revolving Credit Facility at B1 (LGD3) Second Lien Term Loan at Caa1 (LGD5) RATINGS RATIONALE The stable outlook reflects Moody's view that the company will maintain leverage at levels consistent with its B2 CFR and will refrain from any large debt-financed dividends and acquisitions over the next 12 to 18 months. Following a $210 million dividend recap in 2014, HELIOS has deleveraged to about 5.2 times for the LTM period ended Sept. 30, 2015. "HELIOS will benefit from ongoing growth in the business, which should help with further deleveraging after taking on debt to fund a large dividend," said Diana Lee, a Moody's Vice President and Senior Credit Officer. HELIOS's B2 CFR reflects its high financial leverage, its position as a niche PBM focused exclusively on the workers' compensation market and its relatively high customer concentration. The company is a leading player in this space, which has unique characteristics compared to group health insurance. But, HELIOS will continue to face competition from several standalone workers compensation PBMs as well as players with a large presence in the group health segment. New customer wins will be critical to future performance especially in light of only recent improvement in profitability. There is risk of acquisitions, especially in this consolidating sector. If the company engages in debt-financed acquisitions or additional dividends, such that debt/EBITDA is likely to be sustained above 5.5 times, the ratings could be downgraded. If the company is able to gain new clients, improve profitability and cash flow, and demonstrates a more conservative posture toward shareholder and acquisitions, the ratings could be upgraded. If the company sustains debt/EBITDA below 4.5 times, the ratings could be upgraded. The principal methodology used in this rating was the Distribution & Supply Chain Services Industry published in December 2015. P2 Lower Acquisition, LLC is the parent borrowing entity for HELIOS (formerly known as Progressive Solutions, LLC, which merged with PMSI in October 2013). Headquartered in Memphis, Tennessee, HELIOS is a workers' compensation pharmacy benefit manager and ancillary service provider. PACIFIC EXPLORATION: Fitch Cuts LT Issuer Default Ratings to 'CCC' ------------------------------------------------------------------ Fitch Ratings has downgraded Pacific Exploration and Production Corp. foreign and local Long-term Issuer Default Ratings (IDRs) to 'CCC' from 'B-'. Fitch has also downgraded to 'CCC/RR4' from ' B-/RR4' the long-term rating on Pacific's outstanding senior unsecured debt issuances totalling approximately USD4 billion with final maturities in 2019 through and 2025. The ratings were previously on Rating Watch Negative. KEY RATING DRIVERS The downgrade reflects Fitch's expectations that the company's capital structure could weaken to an unsustainable level over the near term as a result of slower oil price recovery expectations. The rating action also incorporates the company's delay in the sale of assets to bolster liquidity as well as delays in reaching an agreement with the company's syndicate of lenders under its USD1 billion revolving credit facility and other bank loans. Towards the end of September 2015, the company received a 90 days waiver, which expires at the end of December 2015, for some maintenance covenants included in these facilities. A key factor in Fitch's previous rating commentary was the delay in the sale of none-core assets to bolster liquidity and the company's ability to negotiate covenants with banks. The company is yet to announce a material divestiture and negotiation with its syndicate of bank with regards to the covenants are still ongoing. On Dec. 17, 2015, the company announced that the syndicate of lenders under the revolving credit agreement had formed a steering committee to negotiate the terms of a potential extension of covenant relief. Simultaneously, the company announced it had hired Lazard Freres & Co. LLC as its financial advisor in order to assist with the ongoing negotiations. Pacific credit metrics have been materially affected by the sharp decline in oil prices, as well as the company's debt increase during 2015. Total and net debt/EBITDA for the latest 12 months (LTM) ended September 2015 have increased to 4.3x and 3.9x, from 1.9x and 1.8x, as of year-end 2014. This was mostly due to due to the decline in global oil prices as well as Pacific's debt increase of more than USD600 million during first-half 2015. Positively, Pacific reported zero short-term debt as of September 2015. KEY ASSUMPTIONS -- Fitch's price deck for WTI oil prices of $50/bbl for 2015 and 2016, recovering to $60/bbl in 2017; -- Piriri-Rubiales field reverts to Ecopetrol in 2016; -- Production declines on a year-over-year basis in 2016 and 2017. RATING SENSITIVITIES A negative rating action would be triggered by any combination of the following events: -- A continuous deterioration of the company's capital structure and liquidity as a result of either a decrease in production as a result of capex curtailment or persistent low oil prices; -- A significant reduction in the reserve replacement ratio could affect Pacific's credit quality given the current proved reserve life of approximately 9 years when excluding Piriri- Rubiales production. A positive rating action is unlikely in the medium term. LIQUIDITY Adequate Liquidity Position: The company's liquidity position as of Sept. 30, 2015 was adequate, with Pacific reporting $489 million of cash on hand an zero short-term debt. The company's debt amortization schedule is spread between 2017 and 2025 with an average of $1 billion coming due every two years. Pacific's liquidity could remain relatively stable provided the company succeeds at running a balanced FCF over the next two years which would potentially stabilize the credit; break even FCF is possible with Fitch's new price deck if the majority of the company's capex is considered discretionary and is cut without further erosion of production. Liquidity could deteriorate significantly if the company fails to reach an agreement with its syndicate lenders. Fitch has downgraded the following ratings: Pacific Exploration and Production Corp. -- Foreign and local currency IDRs to 'CCC' from 'B-'; -- International senior unsecured bond ratings to 'CCC/RR4' from 'B-/RR4'. PACIFIC THOMAS: Can Recover $22K from Darrow Family --------------------------------------------------- Kyle Everett, Chapter 11 trustee of the bankruptcy estate of Pacific Thomas Corporation, brought the adversary proceeding to recover prepetition and postpetition transfers from the Debtor's estate, either directly or by Pacific Trading Ventures to Darrow Family Partners. At trial, the Plaintiff entered into evidence a spreadsheet that identified the Defendant as the initial transferee or entity for whose benefit the transfer was made. The Defendant stipulated to the admissibility of this evidence. Further, its admissions conclusively establish that the Defendant was the initial transferee or entity for whose benefit the transfer was made. The Defendant asserts that relief should be denied on the basis of res judicata or claim preclusion. The Defendant asserts claim preclusion and, more specifically, claim splitting by the Plaintiff. The Plaintiff established by the Defendant's admission that each Transfer was a transfer of an interest of the Debtor in property. The Defendant sought to rebut its own admission however the evidence presented is insufficient to overcome the Defendant's admission that each transfer was a transfer of an interest in the Debtor's property. Judge M. Elaine Hammond of the United States Bankruptcy Court for the Northern District of California entered judgment for the Plaintiff finding that the Plaintiff established that the Defendant received $22,024 in Transfers that are avoided and recoverable from the Defendant. The adversary proceeding is Kyle Everett, Plaintiff, v. Darrow Family Partners, Defendant, Adv. No. 14-5105 (Bankr. N.D. Calif.). The case is In re Pacific Thomas Corporation, Chapter 11, Debtor, Case No. 14-54232 MEH (Bankr. N.D. Calif.). A full-text copy of the Memorandum Decision dated December 8, 2015 is available http://is.gd/5CY7Srfrom Leagle.com. Kyle Everett, Plaintiff, represented by Robert E Izmirian, Esq. -- rizmirian@buchalter.com -- BUCHALTER, NEMER, FIELDS AND YOUNGER. Darrow Family Partners, Defendant, represented by Paul McCarthy, Esq. -- LAW OFFICES OF PAUL MCCARTHY. About Pacific Thomas Corp. Walnut Creek, California, Pacific Thomas Corporation filed a Chapter 11 petition (Bankr. N.D. Cal. Case No. 12-46534) in Oakland on Aug. 6, 2012, estimating in excess of $10 million in assets and liabilities. The Debtor is related to Pacific Thomas Capital, which specializes in real estate services, focusing on the investment, ownership and development of commercial real estate properties, according to http://www.pacificthomas.com/ Real estate activities has spanned throughout the Hawaiian Islands as well as U.S. West Coast locations in California, Nevada, Arizona and Utah. Hawaii based activities are managed under the name Thomas Capital Investments. Bankruptcy Judge M. Elaine Hammond presides over the case. Anne- Leith Matlock, Esq., at Matlock Law Group, P.C., serves as general counsel. The petition was signed by Jill V. Worsley, COO, secretary. Kyle Everett was named Chapter 11 trustee of the Debtor. Craig C. Chiang, Esq., at Buchalter Nemer, P.C., in San Francisco, Calif., represents the Chapter 11 trustee as counsel. In its schedules, the Debtor disclosed $19,960,679 in assets and $16,482,475 in liabilities as of the petition date. In January 2014, Judge Hammond entered an order holding that Pacific Thomas Corp.'s Fourth Amended Disclosure Statement, filed on Dec. 31, 2013, is not approved for the reasons stated on the record at the Jan. 16 hearing. Pursuant to the Plan, the Debtor proposes to avail of a loan from Thorofare Capital to pay off some secured claims. The new loan would be refinanced by the reorganized company before the loan terms expires. If the reorganized company fails to do so, the safe storage parcels of the Pacific Thomas properties will be sold. PEABODY ENERGY: Moody's Lowers CFR to Caa3, Outlook Negative ------------------------------------------------------------ Moody's Investors Service downgraded the ratings of Peabody Energy Corporation, including the corporate family rating to Caa3 from Caa1, probability of default rating to Caa3-PD from Caa1-PD, the ratings on the senior secured credit facility to B3 from B2, the ratings on second lien debt to Caa3 from Caa1, the ratings on senior unsecured notes to Ca from Caa2, and the junior subordinated debenture ratings to C from Caa3. The speculative grade liquidity rating of SGL-3 remains unchanged. The outlook is negative. This concludes the review for possible downgrade initiated on Aug. 27, 2015. Downgrades: Issuer: Peabody Energy Corporation Corporate Family Rating, Downgraded to Caa3 from Caa1 Probability of Default Rating, Downgraded to Caa3-PD from Caa1-PD Junior Subordinated Conv./Exch. Bond/Debenture, Downgraded to C (LGD6) from Caa3 (LGD6) Senior Secured Bank Credit Facilities, Downgraded to B3 (LGD2) from B2 (LGD2) Senior Secured Regular Bond/Debenture, Downgraded to Caa3 (LGD3) from Caa1 (LGD3) Senior Unsecured Regular Bond/Debenture, Downgraded to Ca (LGD5) from Caa2 (LGD5) Outlook Actions: Outlook, Changed To Negative From Rating Under Review RATINGS RATIONALE The downgrade reflects our expectation of continued deterioration in the company's credit metrics due to the ongoing decline in the seaborne metallurgical coal markets and weakness in the US and seaborne thermal coal markets, as well as our expectation that market recovery will be slower and more protracted than previously anticipated. As of Sept. 30, 2015, the company's Debt/ EBITDA, as adjusted stood at 8.7x, and over the preceding twelve months the company burned over $500 million in cash. Moody's expects the leverage to continue increasing and liquidity to continue deteriorating, absent market improvements or deleveraging actions. On Dec. 17, 2015, the company filed Form 8-K with the US Securities and Exchange Commission, stating that it continues to evaluate its options to reduce leverage and preserve liquidity, including potential debt exchanges and buybacks. The ratings reflect our expectation that if the company undertakes debt exchanges and/or other restructuring options, the debt holders will not recover the full amounts due as outlined in the original debt agreements, which would meet Moody's definition of default. The B3 rating on the secured facility, three notches above the Caa3 CFR, reflects the security provided by the collateral package, which includes a claim on certain US properties and various stock pledges. The Caa3 rating on the second lien notes, in line with the CFR, reflects their relative position in the capital structure with respect to claims on collateral, behind the senior secured credit facility but ahead of the Ca rated unsecured notes and C rated subordinated debentures. The speculative grade liquidity rating of SGL-3 reflects adequate liquidity, including cash and cash equivalents of $334 million, $1.4 billion available under $1.65 billion revolver and $48 million of available capacity under the accounts receivable securitization program as of Sept. 30, 2015. Moody's expects that absent a market recovery, the company may have limited headroom under covenants in 2016. Peabody has several alternatives for arranging back-door liquidity if necessary. Peabody's large number of mines and its operational diversity across the PRB and Illinois Basin give it the flexibility to sell non-core assets if necessary. A further downgrade will be considered if liquidity and/or leverage continue to deteriorate. While an upgrade is unlikely in the near term, it would be considered if Moody's expected Debt/ EBITDA, as adjusted, to be sustained below 6.5x while maintaining adequate liquidity. The principal methodology used in these ratings was Global Mining Industry published in August 2014. Peabody Energy Corporation is the world's largest private sector coal company with coal mining operations in the US and Australia and close to 8 billion tons of proven and probable reserves. For the twelve months ended Dec. 31, 2014, the company sold 249.8 million tons of coal and generated $6.8 billion in revenues, including 25 million tons of thermal coal sold from the Midwestern division, 166.4 million tons of thermal coal sold from the Powder River Basin and Colorado, 38.2 million of tons of thermal and metallurgical coal from Australia, and 20.2 million tons from trading and brokerage. For the twelve months ended Sept. 30, 2015, the company generated $6 billion in revenues. PRESSURE BIOSCIENCES: Stockholders Elect Two Class I Directors -------------------------------------------------------------- Pressure BioSciences, Inc., held a special meeting in lieu of the annual meeting of stockholders on Dec. 18, 2015. At the Meeting, the stockholders: (1) elected Jeffrey Peterson and Michael Urdea as class I directors to hold office until the 2018 Annual Meeting of Stockholders; (2) ratified the appointment of MaloneBailey LLP as the Company's independent auditors for fiscal year 2015; (3) approved an amendment to the Company's articles of organization to effect a reverse stock split of its Common Stock by a ratio of not less than one-for-two and not more than one-for-twenty at any time within twelve months following the Meeting for the purpose of assisting the Company in meeting the listing requirements of the Nasdaq Capital Market or another exchange, with the decision of whether or not to implement a reverse stock split and the exact ratio to be set at a whole number within this range to be made by the Company's Board of Directors in its sole discretion; and (4) approved an adjournment of the Meeting, if necessary or appropriate, to solicit additional proxies, in the event that there are not sufficient votes at the time of such adjournment to approve any of Proposal Nos. 1 through 3. About Pressure Biosciences Pressure BioSciences, Inc., headquartered in South Easton, Massachusetts, holds 14 United States and 10 foreign patents covering multiple applications of pressure cycling technology in the life sciences field. Pressure Biosciences reported a net loss applicable to common shareholders of $6.25 million on $1.37 million of revenue for the year ended Dec. 31, 2014, compared to a net loss applicable to common shareholders of $5.24 million on $1.5 million of total revenue for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $2.21 million in total assets, $6.70 million in total liabilities and a total stockholders' deficit of $4.49 million. Marcum LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, noting that the Company has had recurring net losses and continues to experience negative cash flows from operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. QUEST VENTURES: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Quest Ventures, Ltd. 98 Silas Carter Road Manorville, NY 11949 Case No.: 15-75499 Chapter 11 Petition Date: December 23, 2015 Court: United States Bankruptcy Court Eastern District of New York (Central Islip) Judge: Hon. Robert E. Grossman Debtor's Counsel: Steven G Pinks, Esq. PINKS, ARBEIT & NEMETH, ESQS. 140 Fell Court Hauppauge, NY 11788 Tel: (631) 234-4400 Fax: (631) 234-4445 Email: steven@pinksarbeit.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Salvatore Guerrera, president. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. RDIO INC: Selects Pandora's $75M Bid as Best in Chapter 11 Sale --------------------------------------------------------------- Daniel Siegal at Bankruptcy Law360 reported that defunct music streaming service Rdio has asked the California bankruptcy judge overseeing its Chapter 11 proceedings to sign off on its $75 million asset sale to rival streaming service Pandora, telling the judge that it couldn't find any better offers. On Dec. 16, 2015, Rdio Inc. filed a notice of successful bidder with U.S. Bankruptcy Judge Dennis Montali stating that it was canceling the auction it had planned for Dec. 18, because it could not find any prospective bidders who were willing to beat Pandora Media Inc. About Rdio, Inc. Rdio, Inc., was founded in 2008 as a digital music service. The business operations were launched in 2010 after Rdio secured all of the major record label rights. Since that time, Rdio has strived to grow into a world wide music service, and today is in approximately 86 countries. Rdio, Inc., filed Chapter 11 bankruptcy petition (Bankr. N.D. Calif. Case No. 15-31430) on Nov. 16, 2015, with a deal in place to sell the company to Pandora Media. The petition was signed by Elliott Peters as senior vice president. Judge Dennis Montali has been assigned the case. The Debtor estimated assets in the range of $50 million to $100 million and liabilities of more than $100 million. Levene, Neale, Bender, Yoo & Brill LLP serves as the Debtor's counsel. SAFE & SECURE: Court Dismisses Chapter 11 Bankruptcy Case --------------------------------------------------------- The U.S. Bankruptcy Court dismissed Safe & Secure Self Storage, L.L.C.'s Chapter 11 case on Dec. 7, 2015. Hugh R. Morley at NorthJersey.com reports that the case was dismissed as foreclosure advanced on behalf of Safe & Secure. NorthJersey.com relates that at issue in the case was the debt on a $25 million mortgage granted in 2003 to Central Bergen Properties, in connection with a 1.1 million-square-foot Lanza Avenue, Garfield warehouse that the company bought in 1983. The report says that the 2003 mortgage was secured by property leases and rental agreements, including one with Safe & Secure, which rented space from Central Bergen. Court papers show that the legal battle began when the mortgage went into default after its maturity date in January 2014 with $15 million remaining unpaid, which prompted the mortgage holder, Wells Fargo, to file the foreclosure action. NorthJersey.com states that a court-appointed receiver in that case filed suit against Safe & Secure, claiming that the company owed $9.5 million in back rent that should have gone to pay off the mortgage. About Safe & Secure Headquartered in Garfield, New Jersey, Safe & Secure Self Storage, L.L.C., filed for Chapter 11 bankruptcy protection (Bankr. D. N.J. Case No. 15-30154) on Oct. 27, 2015, estimating its assets at up to $50,000 and its liabilities at between $10 million and $50 million. The petition was signed by Anthony V. Pugliese, III, sole manager. Judge Stacey L. Meisel presides over the case. Paul R. DeFilippo, Esq., at Wollmuth Maher & Deutsch LLP serves as the Company's bankruptcy counsel. SAMUEL E. WYLY: To Fight $2-Bil. Tax Bill at January Trial ---------------------------------------------------------- Katy Stech, writing for Dow Jones' Daily Bankruptcy Review, reported that the battle between Texas ex-billionaire Sam Wyly and the Internal Revenue Service, which says he owes more than $2 billion in unpaid taxes and fraud penalties, will unfold at a trial next month in front of a bankruptcy judge who has the power to determine how much Mr. Wyly should pay. According to the report, lawyers for federal tax collectors argued in a 148-page brief that Mr. Wyly and his brother's wife shouldn't be able to dodge the majority of their tax debt using bankruptcy, arguing that their cases involve "one of the largest tax frauds in the history of the United States." About Sam Wyly Sam Wyly is a lifelong entrepreneur and author. His first book, 1,000 Dollars & An Idea, is a biography that tells his story of creating and building companies, including University Computing, Michaels Arts & Crafts, Sterling Software, and Bonanza Steakhouse. His second book, Texas Got It Right!, co-authored with his son, Andrew, was gifted to roughly 450,000 students and teachers, thought leaders, and readers, and continues to be a best-seller in its Amazon category. Samuel Wyly filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 14-35043) on Oct. 19, 2014, weeks after a judge ordered him to pay several hundred million dollars in a civil fraud case. In September 2014, a federal judge ordered Mr. Wyly and the estate of his deceased brother to pay more than $300 million in sanctions after they were found guilty of committing civil fraud to hide stock sales and nab millions of dollars in profits. About Caroline Wyly Caroline Wyly is the widow of business tycoon Charles Wyly. She and her brother-in-law Sam Wyly sought Chapter 11 bankruptcy protection as leverage to settle a looming tax bill and a $329 million claim from the Securities and Exchange Commission. Her bankruptcy is In re Caroline D. Wyly, 14-35074, in U.S. Bankruptcy Court, Northern District Texas (Dallas). SAN BERNARDINO, CA: Judge Rejects City's Bankruptcy Proposal ------------------------------------------------------------ Katy Stech, writing for Dow Jones' Daily Bankruptcy Review, reported that a federal judge said San Bernardino's leaders need to explain their plan to have the southern California city exit bankruptcy protection by repaying a fraction of its debts instead of raising taxes. According to the report, U.S. Bankruptcy Judge Meredith Jury on Dec. 23 rejected -- for a second time -- the city's proposal to cut debts, saying it didn't contain enough information for bondholders, retirees who face health-care cuts and others to vote on the proposal. She agreed to consider another draft of the plan at a March 9 hearing in U.S. Bankruptcy Court in Riverside, Calif., the report related. About San Bernardino San Bernardino, California, filed an emergency petition for municipal bankruptcy under Chapter 9 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 12-28006) on Aug. 1, 2012. San Bernardino, a city of about 210,000 residents roughly 65 miles (104 km) east of Los Angeles, estimated assets and debt of more than $1 billion in the bare-bones bankruptcy petition. The city council voted on July 10, 2012, to file for bankruptcy. The move lets San Bernardino bypass state-required mediation with creditors and proceed directly to U.S. Bankruptcy Court. The city is represented that Paul R. Glassman, Esq., at Stradling Yocca Carlson & Rauth. San Bernardino joined two other California cities in bankruptcy: Stockton, an agricultural center of 292,000 east of San Francisco, and Mammoth Lakes, a mountain resort town of 8,200 south of Yosemite National Park. The City was granted Chapter 9 protection on Aug. 28, 2013. The City filed on May 14, 2015, a Plan to exit court protection. The Plan proposes to some bondholders a penny on the dollar but maintains pension benefits for retired city workers. The Plan proposes to make full payments into the pension fund run by California Public Employees' Retirement System. SELECT MEDICAL: Moody's Affirms B1 CFR, Outlook Stable ------------------------------------------------------ Moody's Investors Service lowered the Speculative Grade Liquidity Rating of Select Medical Holdings Corporation to SGL-4 from SGL-3. Concurrently, Moody's affirmed the company's existing ratings, including the B1 Corporate Family Rating and B1-PD Probability of Default Rating. The rating outlook is stable. The lowering of Select's Speculative Grade Liquidity Rating to SGL-4 reflects Moody's view that the company's liquidity position has weakened due to the near term maturity of a portion of its term loans. Following a recent amendment to the company's credit agreement, Select will still face the maturity of $221 million of term loan in December 2016. Moody's believes that Select will have to rely on its revolver to fund a portion of the maturity if the term loan has not been refinanced by the maturity date. The affirmation of Select's B1 Corporate Family Rating reflects Moody's expectation that headwinds due to reimbursement changes to long term acute care hospitals (LTCHs) can be absorbed without significant detriment to Select's credit metrics. Mitigating some of the negative impact in Select's LTCH business line is the expectation of continued growth of the company's inpatient rehabilitation facility business and improvement in the margins of Concentra. The rating and stable outlook also reflect Moody's expectation that the company will refrain from material share repurchases or a return to dividend distributions prior to reducing leverage taken on to fund the acquisition of a controlling interest in Concentra. The following is a summary of Moody's rating actions: Ratings lowered: Speculative Grade Liquidity Rating to SGL-4 from SGL-3 Ratings affirmed: Select Medical Holdings Corporation: Corporate Family Rating at B1 Probability of Default Rating at B1-PD Select Medical Corporation: Senior secured debt at Ba2 (LGD-2) Senior unsecured debt at B3 (LGD-5) RATINGS RATIONALE Select's B1 Corporate Family Rating reflects Moody's view that the company will continue to focus on reducing its considerable leverage through margin expansion of the recently acquired Concentra business and the maturation of recently opened specialty hospitals. The rating also reflects risks associated with Select's continued concentration on the specialty hospital segment for the majority of its EBITDA, which relies predominantly on the Medicare program as a source of revenue. Supporting the rating is Moody's consideration of Select's significant scale and position as one of the largest LTCH operators and outpatient rehabilitation providers in the US. The stable rating outlook reflects Moody's expectation that Select can reduce leverage through EBITDA growth despite near term headwinds from the introduction of patient criteria that will impact volumes and revenue at the company's LTCHs. Moody's also anticipates that the company will remain disciplined on shareholder initiatives until leverage is reduced, including the continued suspension of dividends. The Speculative Grade Liquidity Rating of SGL-4 reflects Moody's expectation that the company will have weak liquidity over the next 12 to 18 months. Moody's does not expect that Select will generate sufficient free cash flow to fully fund the upcoming maturity of $221 million of term loan in December 2016. However, a combination of available cash and revolver should allow the company to address the maturing term loan if it is not refinanced. Further, a recent amendment relaxed the required leverage covenant, which will provide additional cushion as the company deals with reimbursement changes in the near term. The ratings could be upgraded if Moody's expects the company to maintain debt/EBITDA below 4.0 times either through debt repayment or EBITDA growth. Additionally, Moody's would have to be comfortable that the current operations could absorb negative regulatory developments at the higher rating level. The company would also have to improve its liquidity position. Moody's could downgrade the ratings if adverse developments in Medicare regulations or reimbursement result in significant deterioration in margins or cash flow coverage metrics. The ratings could also be downgraded if the company completes a material debt financed acquisition, shareholder distribution or share repurchase, such that debt to EBITDA is expected to be sustained above 5.0 times. The ratings could also be downgraded if the company's liquidity deteriorates or if the upcoming maturity of a portion of its term loan is not addressed. The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. Select Medical Holdings Corporation is the parent company of Select Medical Corporation. Headquartered in Mechanicsburg, PA, Select provides long-term acute care hospital services and inpatient acute rehabilitative care through its specialty hospital segment. The company also provides physical, occupational, and speech rehabilitation services through its outpatient rehabilitation segment. Through the joint venture partnership with affiliates of Welsh, Carson, Anderson & Stowe, the company is also a majority interest owner of MJ Acquisition Corporation, the direct parent of Concentra Inc. Concentra's services include workers' compensation injury care, physical exams and drug testing for employers, and wellness and preventative care in approximately 300 centers across the US and 174 clinics at employer locations. On a pro forma basis for the recently acquired business of Concentra, Select's consolidated revenue for the twelve months ended Sept. 30, 2015, was in excess of $4.0 billion. SHORELINE ENERGY: Files Bankruptcy Petition, Jan. 20 Meeting Set ---------------------------------------------------------------- Shoreline Energy Corp. disclosed that it has filed an assignment under section 49 of the Bankruptcy and Insolvency Act (Canada) on December 23. Pursuant to the Assignment, Grant Thornton Limited was appointed as the bankruptcy trustee. In addition, all of the directors and officers of the Company have resigned effective immediately. In accordance with the assignment the Trustee will to send to all creditors a notice of the bankruptcy within five days. In addition, when applicable, the Trustee will call in the prescribed manner a first meeting of creditors, to be held at January 20, 2016, 10:00 a.m., Main Floor, 833 - 4th Avenue SW, Calgary, Alberta, or at any other time and place that may be later requested by the official receiver. About Shoreline Energy Corp. Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas and is currently operating under the Companies' Creditors Arrangement Act (Canada). SIGA TECHNOLOGIES: Del. Supreme Court Affirms PharmAthene Damages ----------------------------------------------------------------- PharmAthene, Inc., on Dec. 24 disclosed that the Delaware Supreme Court affirmed the Delaware Court of Chancery's decision to award PharmAthene lump sum expectation damages for the value of PharmAthene's lost profits for SIGA's smallpox antiviral, Tecovirimat. The Delaware Court of Chancery awarded PharmAthene $113 million in expectation damages plus interest and other costs, which if calculated based on the original decision (and including post-judgment interest) would provide for an estimated total of approximately $205 million. PharmAthene's ability to collect a monetary judgment, including post-petition interest, from SIGA remains subject to further proceedings in the Federal Bankruptcy Court. SIGA has filed a reorganization plan with the Court that provides for among other things, the process by which PharmAthene's judgment may be satisfied, but that plan has not been approved by the Bankruptcy Court and remains subject to change, withdrawal or rejection by the Court. A copy of the Delaware Supreme Court decision is available at: http://courts.delaware.gov/opinions/download.aspx?ID=234170 About PharmAthene PharmAthene is a biodefense company engaged in the development of next generation medical countermeasures against biological and chemical threats. The Company's development portfolio includes two next generation Anthrax vaccines that are intended to improve protection while having favorable dosage and storage requirements compared other Anthrax vaccines. On January 15, 2015, the Delaware Court of Chancery issued its Final Order and Judgment in PharmAthene's litigation against SIGA. The Court of Chancery awarded to PharmAthene lump sum expectation damages for the value of PharmAthene's lost profits for SIGA's smallpox antiviral, Tecovirimat, also known as ST-246(R) (formerly referred to as "Arestvyr(TM)" and referred to by SIGA in its recent SEC filings as "Tecovirimat"). In addition, the Court of Chancery ordered SIGA to pay pre-judgment interest and varying percentages of PharmAthene's reasonable attorneys' and expert witness fees. About SIGA Technologies Publicly held SIGA Technologies, Inc., with headquarters in Madison Avenue, New York, is a biotech/pharmaceutical company that specializes in the development and commercialization of solutions for serious unmet medical needs and biothreats. SIGA's lead product is Tecovirimat, also known as ST-246, an orally administered antiviral drug that targets orthopoxviruses. SIGA sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 14-12623) on Sept. 16, 2014, in Manhattan. The case is assigned to Judge Sean H. Lane. The Debtor has tapped Weil, Gotshal & Manges LLP, as counsel, and Prime Clerk LLC as claims agent. The Debtor's Chapter 11 plan and disclosure statement are due May 14, 2015. The Debtor disclosed total assets of $131,669,746 and $7,954,645 in liabilities as of the Chapter 11 filing. The Statutory Creditors' Committee is represented by Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Ehud Barak, Esq., at Proskauer Rose LLP. The Committee tapped to retain Guggenheim Securities, LLC, as its financial advisor and investment banker. SIMON WORLDWIDE: Board Approves Company Dissolution --------------------------------------------------- At a meeting held on Dec. 22, 2015, the Board of Directors of Simon Worldwide, Inc. unanimously approved the following actions, and authorized and directed a special meeting of the Company's shareholders be held to approve these actions: * the transfer of all or substantially all of the Company's assets in accordance with, and the Company's execution and delivery of, a trust agreement and assignment for the benefit of creditors, that upon execution provides for the assignment of all of the Company's assets to a trust so the trustee/assignee may orderly liquidate the assets and distribute any proceeds therefrom to creditors of the Company; * a plan of dissolution of the Company, including the liquidation and dissolution of the Company contemplated thereby; and * a certificate of amendment to the Company's Restated Certificate of Incorporation to (i) eliminate the classified nature of the Board, reduce the minimum and maximum number of directors serving on the Board, and modify the requirements for electing, removing, or replacing a director and for filling any vacancy on the Board, (ii) remove the requirement that stockholder actions must be effected at a stockholder meeting and may not be effected by written consent, and (iii) repeal and remove certain provisions that have already terminated in accordance with their terms and that are no longer in effect. The Company expects to mail notices to its stockholders in the next few weeks containing the date, time and place of the special meeting (which will not be less than 20 days after the mailing of the notices), the record date for the meeting, and information regarding the proposals to be submitted to a vote of the stockholders at the meeting. Neither the Company nor the Board will solicit any proxies in connection with the special meeting or the proposals to be considered thereat. In a Schedule 13D/A filed with the Securities and Exchange Commission on Dec. 23, 2015, Overseas Toys, L.P., which holds approximately 87.6% of the outstanding shares of the Company's common stock, has indicated its intent to vote in favor of all of the foregoing actions to be submitted to a vote of the stockholders at the special meeting, which vote of the Majority Stockholder is required and sufficient to approve all such actions. The Company anticipates that the liquidation of its assets will not be sufficient to pay all creditor claims and the costs and expenses of liquidation and dissolution, and accordingly the Company does not anticipate that any distributions will be made to holders of its common stock in connection with the liquidation. Anthony Espiritu, chief financial officer of the Company, filed a Form 15 with the SEC to voluntarily deregister the Company's common stock under the Securities Exchange Act of 1934, as amended, and to suspend the Company's reporting obligations under Section 15(d) of the Exchange Act, effective immediately. The filing was authorized and directed by the Board unanimously at its Dec. 22, 2015, meeting. As a result of the Company's filing of a Form 15, the Company will no longer file quarterly and annual reports, proxy statements, information statements, or current reports with the SEC, and information regarding the Company will become less readily available. The Company expects that as a result of the filing, its common stock will cease to be listed on the OTC Markets Group's OTC Pink Current Information tier. About Simon Worldwide Based in Los Angeles, Simon Worldwide, Inc. (OTC: SWWI) no longer has any operating business. Prior to August 2001, the Company operated as a multi-national full-service promotional marketing company, specializing in the design and development of high-impact promotional products and sales promotions. At Dec. 31, 2009, the Company held an investment in Yucaipa AEC Associates, LLC, a limited liability company that is controlled by the Yucaipa Companies, a Los Angeles, California based investment firm. Yucaipa AEC in turn principally held an investment in the common stock of Source Interlink Companies, a direct-to-retail magazine distribution and fulfillment company in North America, and a provider of magazine information and front-end management services for retailers and a publisher of approximately 75 magazine titles. Yucaipa AEC held this investment in Source until April 28, 2009, when Source filed a pre-packaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. Simon Worldwide reported a net loss of $6.99 million on $0 of revenue for the year ended Dec. 31, 2014, compared to a net loss of $3.63 million on $0 of revenue for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $626,000 in total assets, $77,000 in total liabilities, all current and $549,000 in total stockholders' equity. STANDARD REGISTER: Plan of Liquidation Declared Effective --------------------------------------------------------- BankruptcyData reported that Standard Register's Second Amended Chapter 11 Plan of Liquidation (with technical modifications) became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on Nov. 19, 2015. The consolidated Plan contemplates the substantive consolidation of the Debtors for distribution purposes, liquidation of the remaining assets of the Debtors and distribution of such assets to the Debtors' creditors. As previously reported, "The Debtors will, (a) satisfy Claims in whole or in part by the transfer of all or any portion of the Assets securing Claims or (b) at the election of the Second Lien Agent made on or before the Effective Date and with the consent of the Debtors (i) reinstate such Claims in full...provided that the Committee's consent shall be required for such reinstatement if the Creditor has any Secured Claim against Liquidating SRC or the GUC Trust, (ii) pay such Claims in Cash up to the Allowed amount of such Claims, (iii) begin to make deferred Cash payments having a present value on the Effective Date equal to the Allowed amount of such Claims, or (iv) treat such Claims in a manner that would provide the 'indubitable equivalent' of such Claims; and, with respect to Other Secured Claims that are not Allowed as of the Effective Date, the collateral securing such Other Secured Claim, will be set aside on the Effective Date and Distributed in accordance with Section 3.3.2 of the Plan upon Allowance of such Claim." On July 31, 2015, Standard Register Company closed on the sale of substantially all of its assets to Taylor Corporation. This newspaper publisher filed for Chapter 11 protection on March 12, 2015, listing $481 million in prepetition assets. About Standard Register Standard Register provides market-specific insights and a compelling portfolio of workflow, content and analytics solutions to address the changing business landscape in healthcare, financial services, manufacturing and retail markets. The Company has operations in all U.S. states and Puerto Rico, and currently employs 3,500 full-time employees and 16 part-time employees. The Standard Register Company and 10 affiliated debtors sought Chapter 11 protection in Delaware on March 12, 2015, with plans to launch a sale process where its largest secured lender would serve as stalking horse bidder in an auction. The cases are pending before the Honorable Judge Brendan L. Shannon and are jointly administered under Case No. 15-10541. The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors; and Prime Clerk LLC as claims agent. The Official Committee of Unsecured Creditors tapped Lowenstein Sandler LLP as its counsel and Jefferies LLC as its exclusive investment banker. TAMARA MELLON: Has Court's Nod to Obtain $10M Financing From NEA ---------------------------------------------------------------- Maria Bobila, writing for Fashionista.com, reports that the Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware granted Tamara Mellon Brand, LLC, on Dec. 23, 2015, authorization to obtain financing. Luxurydaily.com states that the Company has partnered with venture firm New Enterprise Associates 15 LP, among other lenders, to reestablish the brand. According to Peter Evans at The Sunday Times, the Company has been thrown a $10 million lifeline by U.S. private equity firm NEA. Sunday Times explains that NEA will provide $10 million of a $14 million cash injection -- part of a proposed reorganization plan. The report adds that Tamara Mellon herself will invest $2 million and other existing and new investors will provide the remaining $2 million. Luxurydaily.com relates that New Enterprise will own 31.1% of the Company while Ms. Mellon will own slightly more than 16%, plus warrants and options. Luxurydaily.com says that the court order also allowed the Company to enter an accord with Hilldun Corporation. The Company wants to get back to business by Jan. 15, 2016, Fashionista.com relates, citing a spokesperson for the brand. Tamara Mellon Tamara Mellon Brand, LLC, is headquartered in New York, New York. Tamara Mellon is a Jimmy Choo co-founder. Ms. Mellon set up her eponymous label in 2013, after severing ties with Jimmy Choo. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 15-12420) on Dec. 2, 2015, estimating its assets and liabilities at $1 million and $10 million each. The petition was signed by Tamara Mellon, CEO. Derek C. Abbott, Esq., and Daniel B. Butz, Esq., at Morris, Nichols, Arsht & Tunnell LLP serve as the Company's bankruptcy counsel. TRANS-LUX CORP: Completed Exchange Agreements with Noteholders -------------------------------------------------------------- Trans-Lux Corporation consummated a transaction contemplated by Exchange Agreements dated as of Dec. 15, 2015. The Exchange Agreements were with 14 holders of the Company's 8 1/4% Limited Convertible Senior Series Subordinated Notes due 2012. The Exchange Agreements provided that an aggregate of $457,000 of principal under the Notes would be exchanged for an aggregate of $228,500 and an aggregate of 38,082 shares of the Company's Common Stock, $.001 par value per share. As part of the Exchange Agreements, all of the Company's remaining obligations under the Exchanged Notes, including the payment of interest, were terminated. The Exchange Agreements also provide the Note Holders with piggyback registration rights with respect to the resale of the shares of Common Stock that they received under the Exchange Agreements. The Company issued 38,082 shares of Common Stock in connection with the Exchange Agreements. Those shares were issued pursuant to the exemption provided under Section 4(2) promulgated under the Securities Act of 1933, as amended. 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 Sept. 30, 2015, the Company had $15.4 million in total assets, $18.6 million in total liabilities and a total stockholders' deficit of $3.24 million. 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. WESTMORELAND COAL: Targets Jan. 31 San Juan Acquisition Date ------------------------------------------------------------ Westmoreland Coal Company announced that the parties involved in the Company acquisition of all of the issued and outstanding capital stock of San Juan Coal Company and San Juan Transportation Corporation from BHP Billiton New Mexico Coal, Inc., are targeting Jan. 31, 2016, for the closing of the San Juan Acquisition, rather than the previously announced target closing date of Dec. 31, 2015. On Dec. 16, 2015, the New Mexico Public Regulation Commission issued the approval that was a condition to closing the San Juan Acquisition, allowing the parties to begin taking final measures required to consummate the San Juan Acquisition and transition the business. About Westmoreland Coal Colorado Springs, Colo.-based Westmoreland Coal Company (NYSE AMEX: WLB) -- http://www.westmoreland.com/-- is the oldest independent coal company in the United States. The Company's coal operations include coal mining in the Powder River Basin in Montana and lignite mining operations in Montana, North Dakota and Texas. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. Westmoreland Coal Company reported a net loss applicable to common shareholders of $173 million in 2014, a net loss applicable to common shareholders of $6.05 million in 2013 and a net loss applicable to common shareholders of $8.58 million in 2012. As of Sept. 30, 2015, the Company had $1.72 billion in total assets, $2.21 billion in total liabilities and a $489 million total deficit. * * * As reported by the TCR on Nov. 20, 2014, Standard & Poor's Rating Services raised its corporate credit rating on Westmoreland Coal Co. one-notch to 'B' from 'B-'. "The stable outlook is supported by Westmoreland's committed sales position over the next year, which should result in stable cash flows," said Standard & Poor's credit analyst Chiza Vitta. Moody's upgraded the corporate family rating (CFR) of Westmoreland Coal Company to 'B3' from 'Caa1', and assigned 'Caa1' rating to the company's proposed new $300 million First Lien Term Loan, the TCR reported on Nov. 20, 2014. The upgrade of the CFR reflects the company's successful integration of the Canadian mines acquired in April 2014, and Moody's expectation that the company's Debt/ EBITDA will track at around 5x in 2015 and 2016 and that the company will be break-even to modestly free cash flow positive over the same time period. WET SEAL: Seal123 Deregisters Unsold Shares ------------------------------------------- Seal123, Inc., formerly Wet Seal, Inc., filed with the U.S. Securities and Exchange Commission several Post-Effective Amendment No. 1 documents to remove from registration all shares of the Company's Class A Common Stock, par value $0.10 per share registered under these Registration Statements on Form S-3 and on Form S-8: -- Registration Statement on Form S-3 (File No. 333-195566) filed by the Company with the Securities and Exchange Commission (the "SEC") on April 29, 2014, registering 28,614,131 shares of Common Stock for issuance in connection with a private placement by the Company. -- Registration Statement on Form S-8 (File No. 333130007) filed by the Company with the Securities and Exchange Commission (the "SEC") on November 30, 2005 registering 12,500,000 shares of Common Stock for issuance under The Wet Seal, Inc. 2005 Stock Incentive Plan. -- Registration Statement on Form S-8 (File No. 33331813) filed by the Company with the Securities and Exchange Commission (the "SEC") on July 22, 1997, and as amended on March 17, 1999 and April 30, 1999, registering 1,650,000 shares of Common Stock for issuance under The Wet Seal, Inc. 1996 Long-Term Incentive Plan. -- Registration Statement on Form S-8 (File No. 333173253) filed by the Company with the Securities and Exchange Commission (the "SEC") on April 1, 2011 registering 5,000,000 shares of Common Stock for issuance under The Wet Seal, Inc. Amended and Restated 2005 Stock Incentive Plan. -- Registration Statement on Form S-8 (File No. 333153474) filed by the Company with the Securities and Exchange Commission (the "SEC") on September 12, 2008 registering 500,000 shares of Common Stock for issuance under the Performance Share and Restricted Share Award Agreement, dated as of October 8, 2007, by and between The Wet Seal, Inc. and Edmond S. Thomas. The Company received notification from the Listing Qualifications Staff (the "Staff") of The NASDAQ Stock Market LLC ("NASDAQ") indicating that the Company was not in compliance with certain of the requirements for continued listing on The NASDAQ Global Market. Thereafter, by letter dated January 27, 2015, the Staff notified the Company that the Staff's determination to delist the Company's securities from NASDAQ became final, because the Company did not appeal the Staff's initial determination. The delisting was effective with the open of business on March 9, 2015. Following delisting, the Common Stock traded on the OTC Markets' OTC Pink Tier under the ticker symbol "WTSL." Pursuant to the First Amended Joint Plan of Liquidation of Seal123, Inc. and Subsidiary Debtors and Their Official Committee of Unsecured Creditors of the Company and certain of its affiliates, which was filed pursuant to Chapter 11 of the Bankruptcy Code, and which, pursuant to Chapter 11 of the Bankruptcy Code, was confirmed by an order, entered October 30, 2015 by the United States Bankruptcy Court for the District of Delaware, all previously issued Common Stock of the Company will be discharged, cancelled, released and extinguished as of the December 31, 2015 effective date of the Plan. Effective upon the Effective Date of the Plan, the Company removed from registration all shares of Common Stock registered under the Registration Statements that remain unsold as of the Effective Date of the Plan. WRIGHTWOOD GUEST RANCH: Hires Drummond & Assoc as Special Counsel ----------------------------------------------------------------- Wrightwood Guest Ranch, LLC seeks authorization from the Hon. Scott C. Clarkson of the U.S. Bankruptcy Court for the Central District of California to employ Drummond & Associates as special counsel for the Greenlake Real Estate Fund, LLC litigation. Drummond & Associates will be paid at these hourly rates: Donald F. Drummond $425 Bridget B. Laurent $400 Drummond & Associates will also be reimbursed for reasonable out-of-pocket expenses incurred. Donald F. Drummond, attorney and owner of Drummond & Associates, 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. Drummond & Associates can be reached at: Donald F. Drummond, Esq. DRUMMOND & ASSOCIATES One California Street, Suite 300 San Francisco, CA 94111 Tel: (415) 433-2261 Fax: (415) 438-9819 E-mail: buldogdrum@drummondlaw.net 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 RANCH: Reid & Hellyer Okayed as Panel's Counsel ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of Wrightwood Guest Ranch, LLC sought and obtained permission from the Hon. Mark Houle of the U.S. Bankruptcy Court for the Central District of California to retain Reid & Hellyer as general counsel, retroactive to October 5, 2015. The Committee requires Reid & Hellyer to provide legal assistance concerning: (a) negotiation of, evaluation of and participation in the formulation of and if warranted, possible objections to the plan and disclosure statement of the Debtor; (b) evaluation of any offers to purchase assets of the Debtor; (c) consultation with the Debtor concerning the administration of the case; (d) investigation of the acts, conduct, assets, liabilities and financial condition of the Debtor and the desirability of the continuation of such operations and any other matter relevant to the case or the formulation of a plan; (e) investigation of claims of insiders and possible equity contributions and the filing of objections or motions to seek subordination if warranted; and (f) investigation of any transfers which might be avoidable as preferences or fraudulent transfer. Reid & Hellyer will be paid at these hourly rates: David G. Moore $425 James J. Manning $350 Michael G. Kerbs $350 Daniel E. Katz $375 Douglas A. Plazak $375 Mark C. Schnitzer $450 Thomas L. Miller $325 Stanley A. Harter $375 Scott Talkov $300 Alexander C. Payne $260 Shannon D. Duane $260 Pietro E. Canestrelli $300 Eric K. Dodd $260 Stacy M. Velasco $180 Michele L. Paplanus $180 Wendy M. Patrick $180 Lisa A. Martinez $180 Kathleen M. Bradford $75 Reid & Hellyer will also be reimbursed for reasonable out-of-pocket expenses incurred. Douglas A. Plazak, partner of Reid & Hellyer, 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. Reid & Hellyer can be reached at: Douglas A. Plazak, Esq. REID & HELLYER 3880 Lemon Street, 5th Floor, Riverside, CA 92501 Tel: (951) 682-1771 Fax: (951) 686-2415 E-mail: dplazak@rhlaw.com 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. ZLOOP INC: Hires Keen-Summit as Real Estate Consultant & Advisor ---------------------------------------------------------------- ZLOOP, Inc., et al., seek authorization from the U.S. Bankruptcy Court for the District of Delaware to employ Keen-Summit Capital Partners LLC as real estate consultant and advisor to the Debtors. They also ask the Court to modify a prior order authorizing them to employ Miller Industrial Properties, LLC as real estate broker. On September 17, 2015, the Court entered the Miller Order. To date and despite Miller's pre-petition and post-petition efforts, Miller's efforts have not resulted in the Debtors' receipt of any offers to purchase the Fernley, NV real estate. The Debtors have determined that Keen-Summit's services will substantially enhance their attempts to maximize the value of the sale of the Property, and in the future the Debtors may elect to have Keen perform services related to their other real estate assets. The Debtors require Keen-Summit to perform these services: (a) meeting with Debtors' representatives to ascertain the Debtors' goals, objectives and financial parameters; (b) negotiating the sale or other disposition of the Property, including preparing and implementing a marketing plan and assisting the Debtors at any auctions of the Property, if needed; (c) directing the activities of Miller; and (d) reporting periodically to the Debtors and Committee regarding the status of their marketing efforts and negotiations. The term of the Services Agreement shall be through the closing of all Transactions contemplated thereby or for a period of nine months, whichever comes first. Following the expiration of the term of the Services Agreement without the consummation of the sale of or other Transaction involving the Property, Keen-Summit will retain certain rights to a Fee, and Miller may regain its exclusive right to broker the Property, consistent with the terms of the Services Agreement. As and when the Debtor closes a Transaction, whether the Transaction is completed individually or as part of a package or as part of a sale of all or a portion of Debtor's business or as part of a plan of reorganization or as a stalking horse transaction or as part of a private sale or auction, or an investment into Company then Keen-Summit shall have earned compensation Transaction equal to 5.5% of Gross Proceeds, with Keen-Summit retaining 4% of such fee and Miller retaining 1.5% of such fee. Miller will also provide to Company and Keen-Summit one prior prospect that it has been working with. If the Prior Prospect closes a Transaction under this Agreement then Keen agrees to share 2.625% of its Transaction Fee with Miller. Keen-Summit will also be reimbursed for reasonable out-of-pocket expenses incurred. Matthew Bordwin, principal and managing director of Keen-Summit, 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. Keen-Summit can be reached at: Matthew Bordwin Keen-Summit Capital Partners LLC 1 Huntington Quad Ste 2C04 Melville, NY 11747-4424 Tel: (646) 381-9202 E-mail: mbordwin@keen-summit.com About ZLOOP, Inc. ZLOOP, Inc., and two affiliates sought Chapter 11 protection (Bankr. D. Del. Case No. 15-11660) on Aug. 9, 2015. ZLOOP operates a proprietary, state of the art, 100% landfill free eWaste recycling company headquartered in Hickory, North Carolina. The Debtors tapped DLA Piper LLP as counsel. As of the Petition Date, the Debtors' unaudited consolidated balance sheet reflect total assets of approximately $25 million, including the land and improvements, but excluding certain commodity inventories that are the output of eWaste recycling, and total liabilities of approximately $32 million. On Sept. 2, 2015, the U.S. trustee overseeing the Debtors' Chapter 11 cases appointed Recycling Equipment Inc., E Recycling Systems LLC and Carolina Metals Group to serve on the official committee of unsecured creditors. The committee is represented by Cole Schotz P.C. [*] Court Won't Sink Defamation Claims vs. Porzio Attorney ---------------------------------------------------------- Jeannie O'Sullivan at Bankruptcy Law360 reported that a New Jersey judge refused to sink a claim that a Porzio Bromberg & Newman PC attorney accused a former client of extortion in a drunken email copied to dozens of recipients, ruling that a dollar amount wasn't required to support a reputational harm accusation. In denying summary judgment to Porzio Bromberg and firm principal Warren Martin Jr. earlier this month, Bergen County Superior Court Judge Charles Powers Jr. cited case law debunking their arguments that the client couldn't prove special or general damages. [*] Huron Bags M&A's 2015 Restructuring Deal of the Year Award -------------------------------------------------------------- The M&A Advisor selected Huron Business Advisory as the 2015 Restructuring Deal of the Year Award ($25M - $50M) for Lee Steel Corporation. Lee Steel was a top-tier service center, providing a full range of flat rolled steel primarily to tier 1 and tier 2 automotive suppliers. The restructuring occurred via a chapter 11 process that involved a collaborative effort between Huron Business Advisory's restructuring and turnaround and investment banking teams. At filing, secured debt was approximately $50 million and Huron effectuated a full recovery for Huntington and administrative claimants through cash generated from operations resulting from cost reductions and working capital enhancements, coupled with the sale of the business which generated proceeds of $39.1 million. The awards will be presented at the 2016 M&A Advisor Distressed Investing Summit on Thursday, January 28th at the Colony Hotel, Palm Beach, FL. Huron congratulates its colleagues at Dickinson Wright, The Dragich Law Firm PLLC, EPIQ Systems, Inc., Hilco, Huntington National Bank, McDonald Hopkins LLC, Pepper Hamilton, PNC Bank, Stahl Cowen, Union Partners, Wolfson Bolton PLLC, and Huron employees Laura Marcero, Jamie Lisac, Matt Fisher, Matt Kazin, Ken Fontaine, and Breann Shrock-Kueber for making an impact and achieving this recognition. [*] Lender Discrimination May Be Hurting Black Churches, Study Says ------------------------------------------------------------------- Pittsburgh Post-Gazette reports that a paper by Pamela Foohey, an associate professor at the Indiana University Maurer School of Law, suggests that financial discrimination may be hurting black churches. The study, according to Post-Gazette, states that of the 654 religious congregations to file for Chapter 11 bankruptcy protection between 2006 and 2013, 60% had black pastors or predominantly black membership. Citing Ms. Foohey, Patrick Clark at Bloomberg News relates that the large number of reorganizations may be the result of black churches' paying higher rates for real estate loans, including "balloon, step increase, and other 'weird' mortgages -- the equivalent of subprime loans." The report adds that creditors may be less lenient with black churches, insisting on Chapter 11 to modify loans that other church borrowers might seek to modify through informal negotiations. [*] New York Judge Axes Scarinci Hollenbeck Malpractice Suit ------------------------------------------------------------ Stewart Bishop at Bankruptcy Law360 reported that a New York judge on Dec. 18, 2015, threw out a legal malpractice suit against Scarinci Hollenbeck LLC and another firm brought by a former client who claimed that the firms botched a bankruptcy court settlement with her former investment adviser, saying that the client knew the terms of the deal. The client, Marjatta Freeman, had hired the Northeast regional law firm Scarinci Hollenbeck, which in turn retained local Connecticut counsel Pullman & Comley LLC, to pursue claims in the Chapter 11 bankruptcy of her former financial adviser. [^] BOND PRICING: For the Week from December 21 to 25, 2015 ----------------------------------------------------------- Company Ticker Coupon Bid Price Maturity ------- ------ ------ --------- -------- 99 Cents Only Stores LLC NDN 11.00 41.00 12/15/2019 A. M. Castle & Co CAS 12.75 78.00 12/15/2016 A. M. Castle & Co CAS 7.00 52.02 12/15/2017 A. M. Castle & Co CAS 12.75 76.25 12/15/2016 A. M. Castle & Co CAS 12.75 76.25 12/15/2016 ACE Cash Express Inc AACE 11.00 36.00 2/1/2019 ACE Cash Express Inc AACE 11.00 33.00 2/1/2019 Affinion Investments LLC AFFINI 13.50 44.50 8/15/2018 Alpha Appalachia Holdings Inc ANR 3.25 3.00 8/1/2015 Alpha Natural Resources Inc ANR 6.00 0.20 6/1/2019 Alpha Natural Resources Inc ANR 9.75 0.50 4/15/2018 Alpha Natural Resources Inc ANR 6.25 0.20 6/1/2021 Alpha Natural Resources Inc ANR 7.50 1.00 8/1/2020 Alpha Natural Resources Inc ANR 4.88 0.50 12/15/2020 Alpha Natural Resources Inc ANR 3.75 0.50 12/15/2017 Alpha Natural Resources Inc ANR 7.50 0.87 8/1/2020 Alpha Natural Resources Inc ANR 7.50 0.87 8/1/2020 Alta Mesa Holdings LP / Alta Mesa Finance Services Corp ALTMES 9.63 35.75 10/15/2018 American Eagle Energy Corp AMZG 11.00 4.95 9/1/2019 American Eagle Energy Corp AMZG 11.00 5.25 9/1/2019 Apollo Investment Corp AINV 5.75 98.63 1/15/2016 Appvion Inc APPPAP 9.00 40.00 6/1/2020 Appvion Inc APPPAP 9.00 39.38 6/1/2020 Arch Coal Inc ACI 7.00 0.99 6/15/2019 Arch Coal Inc ACI 7.25 0.88 6/15/2021 Arch Coal Inc ACI 7.25 0.22 10/1/2020 Arch Coal Inc ACI 8.00 4.83 1/15/2019 Arch Coal Inc ACI 8.00 5.03 1/15/2019 Atlas Air 1998-1 Class B Pass Through Trust AAWW 7.68 100.00 1/2/2016 Atlas Energy Holdings Operating Co LLC / Atlas Resource Finance Corp ARP 7.75 21.67 1/15/2021 Atlas Energy Holdings Operating Co LLC / Atlas Resource Finance Corp ARP 9.25 25.56 8/15/2021 Avaya Inc AVYA 10.50 33.50 3/1/2021 Avaya Inc AVYA 10.50 37.00 3/1/2021 BPZ Resources Inc BPZR 8.50 7.00 10/1/2017 BPZ Resources Inc BPZR 6.50 8.00 3/1/2015 BPZ Resources Inc BPZR 6.50 5.88 3/1/2049 Basic Energy Services Inc BAS 7.75 31.00 2/15/2019 Berry Petroleum Co LLC LINE 6.38 23.75 9/15/2022 Berry Petroleum Co LLC LINE 6.75 22.00 11/1/2020 Black Elk Energy Offshore Operations LLC / Black Elk Finance Corp BLELK 13.75 7.00 12/1/2015 BreitBurn Energy Partners LP / BreitBurn Finance Corp BBEP 8.63 20.00 10/15/2020 BreitBurn Energy Partners LP / BreitBurn Finance Corp BBEP 7.88 20.05 4/15/2022 Caesars Entertainment Operating Co Inc CZR 10.00 28.88 12/15/2018 Caesars Entertainment Operating Co Inc CZR 6.50 30.25 6/1/2016 Caesars Entertainment Operating Co Inc CZR 12.75 32.00 4/15/2018 Caesars Entertainment Operating Co Inc CZR 10.00 28.25 12/15/2018 Caesars Entertainment Operating Co Inc CZR 5.75 43.00 10/1/2017 Caesars Entertainment Operating Co Inc CZR 10.00 10.00 12/15/2015 Caesars Entertainment Operating Co Inc CZR 10.00 28.63 12/15/2018 Caesars Entertainment Operating Co Inc CZR 5.75 12.25 10/1/2017 Caesars Entertainment Operating Co Inc CZR 10.00 27.88 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.00 28.63 12/15/2018 Chaparral Energy Inc CHAPAR 9.88 25.25 10/1/2020 Chaparral Energy Inc CHAPAR 8.25 24.00 9/1/2021 Chassix Holdings Inc CHASSX 10.00 8.00 12/15/2018 Chassix Holdings Inc CHASSX 10.00 8.00 12/15/2018 Checkers Drive-In Restaurants Inc CHKR 11.00 105.25 12/1/2017 Chesapeake Energy Corp CHK 6.50 48.01 8/15/2017 Chesapeake Energy Corp CHK 6.63 30.45 8/15/2020 Chesapeake Energy Corp CHK 3.57 29.51 4/15/2019 Chesapeake Energy Corp CHK 7.25 40.15 12/15/2018 Chesapeake Energy Corp CHK 6.13 30.00 2/15/2021 Chesapeake Energy Corp CHK 2.50 42.55 5/15/2037 Chesapeake Energy Corp CHK 6.88 27.50 11/15/2020 Chesapeake Energy Corp CHK 2.25 29.50 12/15/2038 Chesapeake Energy Corp CHK 2.50 42.50 5/15/2037 Citigroup Inc C 2.00 100.01 12/29/2015 Claire's Stores Inc CLE 7.75 12.88 6/1/2020 Claire's Stores Inc CLE 8.88 22.00 3/15/2019 Claire's Stores Inc CLE 10.50 54.10 6/1/2017 Claire's Stores Inc CLE 7.75 17.50 6/1/2020 Cliffs Natural Resources Inc CLF 5.95 26.26 1/15/2018 Cliffs Natural Resources Inc CLF 5.90 19.10 3/15/2020 Cliffs Natural Resources Inc CLF 4.88 15.93 4/1/2021 Cliffs Natural Resources Inc CLF 4.80 14.63 10/1/2020 Cliffs Natural Resources Inc CLF 6.25 16.00 10/1/2040 Cliffs Natural Resources Inc CLF 7.75 24.00 3/31/2020 Colt Defense LLC / Colt Finance Corp CLTDEF 8.75 4.28 11/15/2017 Colt Defense LLC / Colt 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8.00 7.25 7/1/2019 Energy Conversion Devices Inc ENER 3.00 7.88 6/15/2013 Energy Future Holdings Corp TXU 9.75 36.00 10/15/2019 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 10.00 2.88 12/1/2020 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 10.00 2.88 12/1/2020 Energy Future Intermediate Holding Co LLC / EFIH Finance Inc TXU 6.88 2.65 8/15/2017 Energy XXI Gulf Coast Inc EXXI 11.00 35.75 3/15/2020 Energy XXI Gulf Coast Inc EXXI 9.25 29.44 12/15/2017 Energy XXI Gulf Coast Inc EXXI 7.75 14.90 6/15/2019 Energy XXI Gulf Coast Inc EXXI 7.50 11.55 12/15/2021 Energy XXI Gulf Coast Inc EXXI 6.88 12.50 3/15/2024 FBOP Corp FBOPCP 10.00 1.84 1/15/2009 FairPoint Communications Inc/Old FRP 13.13 1.88 4/2/2018 Federal Home Loan Banks FHLB 2.18 100.00 12/29/2020 Fleetwood Enterprises Inc FLTW 14.00 3.56 12/15/2011 Forbes Energy Services Ltd FES 9.00 46.55 6/15/2019 GT Advanced Technologies Inc GTAT 3.00 0.55 10/1/2017 GT Advanced Technologies Inc GTAT 3.00 0.50 12/15/2020 Gastar Exploration Inc GST 8.63 52.70 5/15/2018 Genworth Holdings Inc GNW 8.63 104.21 12/15/2016 Getty Images Inc GYI 7.00 36.00 10/15/2020 Getty Images Inc GYI 7.00 31.20 10/15/2020 Goodman Networks Inc GOODNT 12.13 28.40 7/1/2018 Goodrich Petroleum Corp GDP 8.88 8.00 3/15/2019 Goodrich Petroleum Corp GDP 8.88 6.50 3/15/2018 Goodrich Petroleum Corp GDP 5.00 15.50 10/1/2032 Goodrich Petroleum Corp GDP 5.00 5.05 10/1/2029 Goodrich Petroleum Corp GDP 8.88 31.88 3/15/2018 Goodrich Petroleum Corp GDP 8.88 9.88 3/15/2019 Goodrich Petroleum Corp GDP 8.88 9.88 3/15/2019 Gymboree Corp/The GYMB 9.13 20.75 12/1/2018 Halcon Resources Corp HKUS 9.75 30.25 7/15/2020 Halcon Resources Corp HKUS 8.88 23.34 5/15/2021 Halcon Resources Corp HKUS 9.25 31.50 2/15/2022 Hexion Inc HXN 9.20 21.00 3/15/2021 Horsehead Holding Corp ZINC 3.80 24.38 7/1/2017 ION Geophysical Corp IO 8.13 39.98 5/15/2018 Interactive Network Inc / FriendFinder Networks Inc FFNT 14.00 56.25 12/20/2018 James River Coal Co 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Peabody Energy Corp BTU 6.25 13.25 11/15/2021 Penn Virginia Corp PVA 8.50 15.50 5/1/2020 Penn Virginia Corp PVA 7.25 11.94 4/15/2019 Permian Holdings Inc PRMIAN 10.50 39.00 1/15/2018 Permian Holdings Inc PRMIAN 10.50 38.75 1/15/2018 Prospect Holding Co LLC / Prospect Holding Finance Co PRSPCT 10.25 48.75 10/1/2018 Prospect Holding Co LLC / Prospect Holding Finance Co PRSPCT 10.25 54.50 10/1/2018 Quicksilver Resources Inc KWKA 9.13 3.00 8/15/2019 Quicksilver Resources Inc KWKA 11.00 6.75 7/1/2021 Quiksilver Inc / QS Wholesale Inc ZQK 10.00 3.66 8/1/2020 RAAM Global Energy Co RAMGEN 12.50 8.75 10/1/2015 RS Legacy Corp RSH 6.75 0.05 5/15/2019 Sabine Oil & Gas Corp SOGC 7.25 7.25 6/15/2019 Sabine Oil & Gas Corp SOGC 7.50 6.00 9/15/2020 Sabine Oil & Gas Corp SOGC 9.75 4.75 2/15/2017 Sabine Oil & Gas Corp SOGC 7.50 6.50 9/15/2020 Sabine Oil & Gas Corp SOGC 7.50 6.50 9/15/2020 SandRidge Energy Inc SD 8.75 29.50 6/1/2020 SandRidge Energy Inc SD 7.50 11.43 3/15/2021 SandRidge Energy Inc SD 8.75 9.13 1/15/2020 SandRidge Energy Inc SD 8.13 9.00 10/15/2022 SandRidge Energy Inc SD 7.50 9.96 2/15/2023 SandRidge Energy Inc SD 8.13 24.00 10/16/2022 SandRidge Energy Inc SD 7.50 25.32 2/16/2023 SandRidge Energy Inc SD 7.50 9.25 3/15/2021 SandRidge Energy Inc SD 7.50 9.25 3/15/2021 Sequa Corp SQA 7.00 32.00 12/15/2017 Sequa Corp SQA 7.00 32.00 12/15/2017 Seventy Seven Energy Inc SSE 6.50 16.90 7/15/2022 Seventy Seven Operating LLC SSE 6.63 35.00 11/15/2019 SquareTwo Financial Corp SQRTW 11.63 50.75 4/1/2017 Swift Energy Co SFY 7.88 6.90 3/1/2022 Swift Energy Co SFY 7.13 10.75 6/1/2017 Swift Energy Co SFY 8.88 8.92 1/15/2020 Syniverse Holdings Inc SVR 9.13 45.28 1/15/2019 TMST Inc THMR 8.00 15.25 5/15/2013 Talos Production LLC / Talos Production Finance Inc TALPRO 9.75 43.50 2/15/2018 Talos Production LLC / Talos Production Finance Inc TALPRO 9.75 44.00 2/15/2018 Terrestar Networks Inc TSTR 6.50 10.00 6/15/2014 TetraLogic Pharmaceuticals Corp TLOG 8.00 43.00 6/15/2019 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.25 7.63 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15.00 6.88 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 11.50 30.00 10/1/2020 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.50 10.25 11/1/2016 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.25 9.50 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 11.50 32.00 10/1/2020 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15.00 6.15 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.25 2.32 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.50 3.85 11/1/2016 Vanguard Natural Resources LLC / VNR Finance Corp VNR 7.88 26.88 4/1/2020 Venoco Inc VQ 8.88 15.35 2/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.75 14.42 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.75 18.50 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.75 2.01 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 13.00 1.35 8/1/2020 Verso Paper Holdings LLC / Verso Paper Inc VRS 8.75 0.01 2/1/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.75 18.13 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.75 0.74 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.75 0.74 1/15/2019 Verso Paper Holdings LLC / Verso Paper Inc VRS 11.75 18.13 1/15/2019 W&T Offshore Inc WTI 8.50 36.00 6/15/2019 Walter Energy Inc WLTG 9.50 25.75 10/15/2019 Walter Energy Inc WLTG 9.50 25.75 10/15/2019 Walter Energy Inc WLTG 9.50 25.75 10/15/2019 Walter Energy Inc WLTG 9.50 26.90 10/15/2019 Warren Resources Inc WRES 9.00 15.00 8/1/2022 Warren Resources Inc WRES 9.00 15.00 8/1/2022 Warren Resources Inc WRES 9.00 15.00 8/1/2022 iHeartCommunications Inc IHRT 10.00 40.00 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. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***