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/raid1/www/Hosts/bankrupt/TCR_Public/160217.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, February 17, 2016, Vol. 20, No. 48 Headlines 2821 INVESTORS: Voluntary Chapter 11 Case Summary ALLIED NEVADA: Tuttle Files Brief in Support of Plan Appeal ALPHA NATURAL: Foundation PA Coal to Unload Rice Energy Stake ALPHA NATURAL: Unsecured Creditors Seek to Preserve Assets AMERICAN AXLE: Posts $236 Million Net Income for 2015 ATLANTIC CITY, NJ: Lawmakers Seek to Revive Rejected City ATNA RESOURCES: Creditors Have Until Feb. 29 to File Claims BERRY PLASTICS: Teachers Advisors Reports 1.5% Stake as of Dec. 31 CAESARS ENTERTAINMENT: Examiner to File Report by Month's End CARDIAC SCIENCE: Taps Patterson Thuente to Handle IP and Trademark CCNG ENERGY: Court OKs Stipulation Resolving Bids to Dismiss Case CCNG ENERGY: Files Schedules of Assets and Liabilities CCNG ENERGY: Raymond James to Evaluate Strategic Alternatives COLT DEFENSE: Fidelity Unit Invests $22 Million DETROIT PUBLIC SCHOOLS: Lawmakers Pledge Bailout Won't Hurt Others DEWEY & LEBOEUF: Prosecutors Have Deal with Zachary Warren DIOCESE OF DULUTH: Judge Zive to Serve as Mediator ESTATE FINANCIAL: Has Deal on Allocation of Dispute Proceeds FPMC FORT WORTH: Files Schedules of Assets and Liabilities FPMC SAN ANTONIO: Files Schedules of Assets and Liabilities FREEDOM COMMUNICATIONS: Proposes Bonus, Severance Plans FRESH & EASY: Creditors Investigate Ties to Yucaipa FUHU INC: Seeks to Extend Deadline to Remove Suits to July 5 FUTUREWORLD CORP: Admits Going Concern Doubt Amid Net Losses HAGGEN HOLDINGS: Closing Sales at Puyallup Store Approved HAGGEN HOLDINGS: Deadline to Auction Core Stores Moved to Feb. 22 HAGGEN HOLDINGS: Landlords to 9 Core Stores Want to Evaluate Buyer HANCOCK FABRICS: Fillmore Outlet to Close in April HASHFAST TECHNOLOGIES: Feb. 19 Hearing on Bitcoin as Currency HEALTH DIAGNOSTIC: Creditors to Vote on Liquidation Plan INDALEX INC: Kirkland Wants to Spike Trustee's Malpractice Suit INTERNATIONAL TECHNICAL: Judge Sets March 15, 2016 Claims Bar Date JOE'S JEANS: Carl Marks Acted as Investment Banker on Merger LIQUID HOLDINGS: Wants Case Converted to Chapter 7 Liquidation MAPLE BANK: Chapter 15 Case Summary MAPLE BANK: Seeking U.S. Recognition of German Proceeding MCCLATCHY CO: Contributes Real Estate to Benefit Pension Plan MEDIASHIFT INC: Has Until April 27 to Decide on Leases MISSION NEW ENERGY: To Release Shares From Voluntary Escrow MOLYCORP INC: Oaktree Blasts Threat to $514M Bankruptcy Claims NATIONAL CINEMEDIA: Stephens Inv. Holds 5% Stake as of Dec. 31 NEW BEGINNINGS: Jeffersonville Nursing Home to Close in March NORANDA ALUMINUM: Jamaica Unit Said to Be In Takeover Talks NORTH ALABAMA SCIENCE CENTER: Museum Misses 2 Lease Payments NORTHERN FRONTIER: Gets Extension of Temporary Waiver From Lenders OSAGE EXPLORATION: Feb. 25 Final Hearing on $1.4MM Apollo DIP Loan PARAGON OFFSHORE: Taps KCC as Claims and Noticing Agent PENNGOOD LLC: Case Summary & 16 Unsecured Creditors PHOTOMEDEX INC: Stonepine No Longer a Shareholder as of Dec. 31 PICO HOLDINGS: PICO Revises Revocation Solicitation PUERTO RICO: House of Reps Passes Bill to Restructure $9BB in Debt QUANTUM FUEL: Capital Ventures No Longer A Shareholder at Dec. 31 QUANTUM MATERIALS: Weaver and Tidwell Raises Going Concern Doubt SABINE OIL: BoNY Protests Kirkland's Impartiality in Claims Probe SAMSON RESOURCES: Kirkland Bid to Collect Fee Fight Costs Denied SCIO DIAMOND: Incurs $1.26 Million Net Loss in Third Quarter SFX ENTERTAINMENT: March 4 Final Hearing on DIP Financing Approval SIGA TECHNOLOGIES: Amended Plan Filed; April 5 Hearing Set STANDARD REGISTER: Court Spares Directors Over Ch. 11 Claims STELLAR BIOTECHNOLOGIES: Echavarria Reports 17% Stake as of Dec. 31 SUNDEVIL POWER: Proposes May 2 Auction for All Assets TGHI INC: Former Targus Parents File Prepackaged Liquidating Plan TGHI INC: To Seek Confirmation of Liquidating Plan on April 1 TRAVELPORT WORLDWIDE: Amalgamated Gadget Stake at 0.91% at Dec. 31 TRAVELPORT WORLDWIDE: FMR LLC Reports 14.9% Stake TRAVELPORT WORLDWIDE: Solus Reports 5.5% Stake as of Dec. 31 WAFERGEN BIO-SYSTEMS: CVI Investments Reports 4.9% Stake at Dec. 31 WALTER ENERGY: Wants Formation, Funding of Retiree's VEBA Approved WARREN RESOURCES: Warns of Possible Bankruptcy If Deal Fails WORLD MARKETING: AFS Wants Associated Bank to Disgorge $600,000 WORLD MARKETING: Creditors Sue Associated Bank to Avoid Collateral ZUCKER GOLDBERG: Committee's Challenge Period Expires Feb. 26 ZUCKER GOLDBERG: Plan Exclusivity Extended to April 18 ZUCKER GOLDBERG: Plan Put on Hold After Examiner Named [*] Baker Donelson Evades Hedge Funds' Legal Fee Fraud Suit [*] Justice Department Reaches $470MM Settlement with HSBC [*] Tiger Capital, Liquidity Services Launch Partnership ********* 2821 INVESTORS: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: 2821 Investors, L.P. 2626 West Ridge Pike Norristown, PA 19403 Case No.: 16-10962 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: February 15, 2016 Court: United States Bankruptcy Court Eastern District of Pennsylvania (Philadelphia) Judge: Hon. Ashely M. Chan Debtor's Counsel: Demetrius J. Parrish, Esq. THE LAW OFFICES OF DEMETRIUS J. PARRISH 7715 Crittenden Street, #360 Philadelphia, PA 19118 Tel: (215) 735-3377 Email: djp711@aol.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $0 to $50,000 The petition was signed by Dean T. Cafiero, president. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. ALLIED NEVADA: Tuttle Files Brief in Support of Plan Appeal ----------------------------------------------------------- Brian Tuttle, along with Jordan Darga and Stoyan Tachev, all acting pro se, filed with the U.S. District Court for the District of Delaware on Feb. 5, 2016, a brief in connection with their appeal of the Bankruptcy Court's order confirming Allied Nevada Gold Corp.'s reorganization plan. Mr. Tuttle et al. will ask the District Court to review: I. Whether the Bankruptcy Court committed an error of law or abuse of discretion in finding the Debtors' Amended Chapter 11 Plan of Reorganization satisfied the requirements of Sec. 1129(b) of the Bankruptcy Code. Mr. Tuttle, among other things, claimed that the Bankruptcy Court overlooked evidence the appellee's long lived assets were recoverable and the impairments the 2nd Moelis evaluation relied upon were not in accordance with GAAP accounting standards. The Bankruptcy Court, according to Mr. Tuttle, abused its discretion by relying upon highly speculative financial suggestions, not in compliance with GAAP accounting standards, from a company whom repeatedly violated public law, to confirm a voluntarily filed Plan, that extinguished $600 million of reported equity. Such a departure prejudiced impaired and dissenting shareholders by extinguishing their legal rights and claims to property owned, Mr. Tuttle averred. II. Whether the Bankruptcy Court committed an error of law or abuse of discretion in finding the Debtors' Amended Plan satisfied the requirements of Sec. 1129(a)(11). According to Mr. Tuttle, the Bankruptcy Court overlooked evidence and arguments that the Plan was nothing more than a visionary scheme. At the Jan. 20 hearing on appellant Darga's reconsideration motion, the Court admitted that the Chapter 11 restructuring should have been a Chapter 7 liquidation. This candid admission, according to Mr. Tuttle, further evidence of the Court's departure from Sec. 1129(a)(11). Chapter 11 protection is not a catch 22, all evidence provided suggested the Plan was not feasible and the appellee will sell the company through a process never disclosed to the Court, Mr. Tuttle points out. III. Whether the Court committed an error of law or abuse of discretion in departing from the essential requirements of U.S.C. Sec. 1129(a)(5)(A) in its findings of fact and order confirming the Plan. U.S.C. Sec 1129)(a)(5)(A) explicably states a Court can only confirm a plan if the proponent of the plan has disclosed the identity and affiliates of any individual propose to serve as a director, officer or voting trustee, and the appointment to such office is consistent with the interests of creditors, equity security holders and public policy. According to Mr. Tuttle, due to the fact that board member Mike Freehan's identity and affiliation were not disclosed, it was impossible for the Bankruptcy Court to make a determination that the undisclosed director's appointment was consistent with the interests of creditors, equity security holders or public policy. IV. Whether the Bankruptcy Court committed an error of law or abuse of discretion in departing from the essential requirements of U.S.C. Sec. 1129(a)(3) by finding that the Plan was proposed in "good faith". The Bankruptcy Court, according to Mr. Tuttle, overlooked evidence the appellee abused the bankruptcy process by submitting disclosures that were either incomplete or inaccurate. The appellee fraudulently impaired assets to conceal their worth, while omitting the name and/or affiliations of Mike Freehan. V. Whether the Bankruptcy Court committed an error of law or abuse of discretion in denying Appellant Tuttle's motion to appoint an examiner with access to and authority to disclose privileged materials. Mr. Tuttle and other members of the Ad Hoc Committee proffered evidence in support of the need for an examiner to investigate allegations of the trading of the appellee's assets by insiders in several motions and pleadings. At the Sept. 11 hearing, the Court abused its discretion by entering in to evidence the declarations of Jason Hempel, Jacob Mercer, and Mr. Techard who were not present at the Sept. 11 hearing and therefore unavailable for cross examination. According to Mr. Tuttle, the Court overlooked evidence of Sarbanes Oxley violations, impairments not in accordance with GAAP financing standards, evidence of insider trading, and the sale of Exploration Properties to creditors. A copy of Mr. Tuttle's brief in support of its appeal of the Plan Confirmation Order is available for free at: http://bankrupt.com/misc/Allied_N_1398_Tuttle_Plan_Appeal.pdf Plan Approval Order Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware, on Oct. 8, 2015, issued findings of fact, conclusions of law and order confirming Allied Nevada Gold Corp., et al.'s Amended Joint Chapter 11 Plan of Reorganization. The Debtors' Plan is a plan of reorganization for each of the Debtors; however, the Plan provides that for purposes of distributions, the Debtors will be substantively consolidated. The Plan provides that a holder of an allowed unsecured claim will receive either: (i) its pro rata share of 100% of the new common stock, subject to dilution on account of: (a) the conversion of the New Second Lien Convertible Notes and (b) the exercise of the New Warrants; or (ii) its pro rata share of the convenience claim distribution, which is equal to $2,750,000, if a holder of an allowed unsecured claim (1) holds a claim that is equal to or less than $500,000 or (2) elects to reduce its Claim to an amount equal to or less than $500,000. The existing equity interests will be cancelled and the equity holders will receive new warrants to purchase shares. A full-text copy of Judge Walrath's Plan Confirmation Order is available at http://bankrupt.com/misc/ANGplanord1008.pdf About Allied Nevada Allied Nevada Gold Corp. ("ANV"), a Delaware corporation, is a publicly traded U.S.-based gold and silver producer engaged in mining, developing and exploring properties in the State of Nevada. ANV was spun off from Vista Gold Corp. in 2006 and began Operations in May 2007. Nevada-based mining properties acquired from Vista include the Hycroft Mine, an open-pit heap leach operation located 54 miles west of Winnemucca, Nevada. ANV controls 75 exploration properties throughout Nevada as of Dec. 31, 2014. On March 10, 2015, ANV and 13 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The cases are jointly administered under Lead Case No. 15-10503. The cases are assigned to Judge Mary F. Walrath. The Debtors have tapped Blank Rome LLP and Akin Gump Strauss Hauer & Feld LLP as attorneys; FTI Consulting Inc. as financial advisor; Moelis & Company as financial advisor; and Prime Clerk LLC as claims and noticing agent. ANV disclosed $941 million in total assets and $664 million in total debt as of Dec. 31, 2014. * * * Judge Walrath on Oct. 8, 2015, entered an order confirming Allied Nevada's Amended Plan of Reorganization, and the Plan later became effective. As a result of the financial restructuring, the Company eliminated approximately $447.7 million of debt and related interest payments from its balance sheet. ALPHA NATURAL: Foundation PA Coal to Unload Rice Energy Stake ------------------------------------------------------------- Judge Kevin R. Huennekens entered in December 2015 an order approving debtor Foundation PA Coal Company, LLC's motion for an order establishing procedures for the potential sale of shares of Rice Energy, Inc. Under the Stock Disposition Procedures, all sales will be market transactions with unrelated third party buyers for cash consideration. No sales will be made for less than the then-current trading price on the NYSE; provided that, any block sale of the remainder of the Rice Shares may include a negotiated discount typical in such transactions to account for market volatility risk. Five business days prior to each calendar quarter or as soon thereafter as is practicable, Foundation Coal will serve a notice describing the parameters for potential sales of the Rice Shares for the quarter by email to: (a) Davis Polk & Wardwell LLP and McGuireWoods LLP, as co-counsel to Citibank, N.A. and Citicorp North America, Inc, as administrative and collateral agents under the DIP Financing and the Prepetition Credit Agreement; (b) Kirkland & Ellis LLP and Kutak Rock LLP, as co-counsel to the Second Lien Noteholder Group; (c) Stroock & Stroock & Lavan LLP, as counsel to the indenture trustee under the Second Lien Notes Indentures; and (d) Milbank, Tweed, Hadley & McCloy LLP and Sands Anderson PC as co-counsel to the Creditors' Committee. The initial Quarterly Notice may be issued immediately and shall cover the remainder of December 2015 in addition to the first quarter of 2016. During the course of any calendar quarter, Foundation Coal may modify the Sale Parameters by serving an amended Quarterly Notice on the Interested Parties, including the same information and subject to the same objection procedures as a Quarterly Notice. The Interested Parties will have four business days after the date of service of the Quarterly Notice or an Amended Notice, to object to the Sale Parameters. If an Objection to a Quarterly Notice or an Amended Notice is properly and timely delivered, the Debtors may not proceed with any Proposed Sale absent (a) withdrawal of the Objection by written notice to the Debtors' counsel (including by email) or (b) the entry of an order of the Court. A copy of the Dec. 22, 2015 Order Approving the Stock Disposition Procedures is available for free at: http://bankrupt.com/misc/Alpha_N_1157_RE_Sales_Ord.pdf 39% Stake by Debtors As reported in the Jan. 12 edition of the TCR, Alpha Natural Resources, on behalf of itself and its indirect wholly owned subsidiary, Foundation PA Coal Company, filed with the Securities and Exchange Commission a Schedule 13D/A (Amendment No. 7) on Jan. 7, 2016, to disclose that the Alpha Entities may be deemed to beneficially own 53,322,756 shares of Common Stock of Rice Energy, Inc., which constitutes approximately 39.1% of the outstanding Common Stock of Rice Energy, as of Dec. 21, 2015. Alpha said Foundation directly holds 4,016,146 shares of the Rice Energy Common Stock. Because of Alpha's relationship to Foundation, Alpha is deemed to beneficially own 4,016,146 shares of Common Stock of Rice Energy. Alpha also disclosed that Foundation has sold 2,392,839 shares of the Common Stock through open-market transactions. In 2010, Foundation entered into a 50/50 joint venture with Rice Drilling C LLC, a wholly owned subsidiary of Rice Drilling B LLC, in order to develop a portion of Alpha's Marcellus Shale natural gas holdings in southwest Pennsylvania. On December 6, 2013, Foundation, Rice Drilling C LLC and Rice Energy entered into a transaction agreement. Pursuant to the Transaction Agreement, Foundation agreed to transfer its 50% interest in the Alpha Shale JV to Rice Energy in exchange for total consideration of $300 million, consisting of $100 million of cash and the issuance by Rice Energy to Foundation of 9,523,810 shares of Common Stock concurrently with, and contingent upon, the consummation of Rice Energy's initial public offering. About Alpha Natural Alpha Natural -- http://www.alphanr.com/-- is a coal supplier, ranked second largest among publicly traded U.S. coal producers as measured by 2014 consolidated revenues of $4.3 billion. Alpha Natural Resources, Inc. (Bankr. E.D. Va. Case No. 15-33896) and its affiliates filed separate Chapter 11 bankruptcy petitions on Aug. 3, 2015, listing $9.9 billion in total assets as of June 30, 2015, and $7.3 billion in total liabilities as of June 30, 2015. The petition was signed by Richard H. Verheij, executive vice president, general counsel and corporate secretary. Judge Kevin R. Huennekens presides over the case. David G. Heiman, Esq., Carl E. Black, Esq., and Thomas A. Wilson, Esq., at Jones Day serve as the Debtors' general counsel. Tyler P. Brown, Esq., J.R. Smith, Esq., Henry P. (Toby) Long, III, Esq., and Justin F. Paget, Esq., serve as the Debtors' local counsel. Rothschild Group is the Debtors' financial advisor. Alvarez & Marshal Holdings, LLC, is the Debtors' investment banker. Kurtzman Carson Consultants, LLC, is the Debtors' claims and noticing agent. The U.S. Trustee for Region 4 appointed seven creditors of Alpha Natural Resources Inc. to serve on the official committee of unsecured creditors. Dennis F. Dunne, Esq., Evan R. Fleck, Esq., and Eric K. Stodola, Esq., at Milbank, Tweed, Hadley & McCloy LLP; and William A. Gray, Esq., W. Ashley Burgess, Esq., and Roy M. Terry, Jr., Esq. at Sands Anderson PC, represent the Committee. ALPHA NATURAL: Unsecured Creditors Seek to Preserve Assets ---------------------------------------------------------- Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review, reported that Alpha Natural Resources Inc.'s unsecured creditors are embarking on a quest to unlock what they say is "hundreds of millions of dollars" of value in the coal mining company's bankruptcy case. According to the report, in court papers filed Feb. 15, the official committee representing Alpha's unsecured creditors notified Alpha and its lenders of its intent to assert its claim to a number of assets the committee says aren't currently tied up as collateral securing the lenders' claims. About Alpha Natural Alpha Natural -- http://www.alphanr.com/-- is a coal supplier, ranked second largest among publicly traded U.S. coal producers as measured by 2014 consolidated revenues of $4.3 billion. Alpha Natural Resources, Inc. (Bankr. E.D. Va. Case No. 15-33896) and its affiliates filed separate Chapter 11 bankruptcy petitions on Aug. 3, 2015, listing $9.9 billion in total assets as of June 30, 2015, and $7.3 billion in total liabilities as of June 30, 2015. The petition was signed by Richard H. Verheij, executive vice president, general counsel and corporate secretary. Judge Kevin R. Huennekens presides over the case. David G. Heiman, Esq., Carl E. Black, Esq., and Thomas A. Wilson, Esq., at Jones Day serve as the Debtors' general counsel. Tyler P. Brown, Esq., J.R. Smith, Esq., Henry P. (Toby) Long, III, Esq., and Justin F. Paget, Esq., serve as the Debtors' local counsel. Rothschild Group is the Debtors' financial advisor. Alvarez & Marshal Holdings, LLC, is the Debtors' investment banker. Kurtzman Carson Consultants, LLC, is the Debtors' claims and noticing agent. The U.S. Trustee for Region 4 appointed seven creditors of Alpha Natural Resources Inc. to serve on the official committee of unsecured creditors. Dennis F. Dunne, Esq., Evan R. Fleck, Esq., and Eric K. Stodola, Esq., at Milbank, Tweed, Hadley & McCloy LLP; and William A. Gray, Esq., W. Ashley Burgess, Esq., and Roy M. Terry, Jr., Esq. at Sands Anderson PC, represent the Committee. AMERICAN AXLE: Posts $236 Million Net Income for 2015 ----------------------------------------------------- American Axle & Manufacturing Holdings, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing net income of $235.6 million on $3.90 billion of net sales for the year ended Dec. 31, 2015, compared to net income of $143 million on $3.69 billion of net sales for the year ended Dec. 31, 2014. For the three months ended Dec. 31, 2015, the Company reported net income of $62.9 million on $958.4 million of net sales compared to net income of $13.2 million on $939.5 million of net sales for the same period in 2014. As of Dec. 31, 2015, the Company had $3.20 billion in total assets, $2.90 billion in total liabilities and $301.5 million in total stockholders' equity. "AAM had an outstanding year in 2015. On the strength of North American light vehicle production volumes and our solid operational performance, AAM achieved record sales and record gross profit for the year. We also made measurable progress in diversifying our business and improving our capital structure," said AAM's Chairman & Chief Executive Officer, David C. Dauch. "As we look ahead to 2016 and beyond, we remain focused on advancing our technology leadership in order to capitalize on major industry trends and drive profitable growth and business diversification." A full-text copy of the Form 10-K is available for free at: http://is.gd/6TjPI3 About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE: AXL) -- http://www.aam.com/-- manufactures, engineers, designs and validates driveline and drivetrain systems and related components and chassis modules for light trucks, sport utility vehicles, passenger cars, crossover vehicles and commercial vehicles. * * * In September 2012, Moody's Investors Service affirmed the 'B1' Corporate Family Rating (CFR) and Probability of Default Rating (PDR) of American Axle. American Axle carries a 'BB-' corporate credit rating from Standard & Poor's Ratings Services. "The 'BB-' corporate credit rating on American Axle reflects the company's 'weak' business risk profile and 'aggressive' financial risk profile, which incorporate substantial exposure to the highly cyclical light- vehicle market," S&P said, as reported by the TCR on Sept. 6, 2012. As reported by the TCR on Sept. 1, 2014, Fitch Ratings had upgraded the Issuer Default Ratings (IDRs) of American Axle & Manufacturing Holdings, Inc. (AXL) and its American Axle & Manufacturing, Inc. (AAM) subsidiary to 'BB-' from 'B+'. The upgrade of the IDRs for AXL and AAM is supported by the fundamental improvement in the drivetrain and driveline supplier's credit profile over the past several years. ATLANTIC CITY, NJ: Lawmakers Seek to Revive Rejected City --------------------------------------------------------- Romy Varghese, writing for Bloomberg Brief - Distress & Bankruptcy, reported that New Jersey lawmakers plan to mount a renewed push for legislation aimed at stabilizing Atlantic City's finances despite its rejection by Governor Chris Christie, seeking to extend aid to the struggling gambling hub that's rapidly running out of money. According to the report, the measures seek to divert gaming funds to the city and for a decade set up fixed payments from casinos instead of property taxes, which would prevent the assessment appeals that have dealt a blow to the government's revenue. If approved, the bills could help steady a city that's at risk of running out of cash in April, if not sooner, said state Senator Jim Whelan, a Democrat who represents Atlantic City. He said legislators will also introduce a bill that would give the state more control over its finances for five years, a plan presented by Christie on Jan. 26, the report related. It would give Atlantic City a year to generate cash from its water utility before state officials step in to do so themselves, Whelan said, the report cited. * * * The Troubled Company Reporter, on Feb. 3, 2016, reported that Moody's Investors Service has placed the City of Atlantic City, NJ Caa1 GO rating under review for possible downgrade. The review for downgrade will consider the adequacy of proposed legislative budget solutions and the likelihood of municipal debt restructuring with bondholder impairment. Within the next two months, Moody's expects the state legislature to develop a plan that will specify the powers to be granted to the New Jersey Local Finance Board to implement budget improvements and restructure municipal debt. The probability of bondholder impairment is likely low if budget solutions are adequate and/or state financial support is high, but could rise if they are not, which would lead to a revision of the rating downward. A specific indication that bondholders would be included in adverse debt restructuring could also lead to a rating downgrade. Beyond the rating review time horizon, outstanding tax appeal refunds could pose a risk to bondholder security even if adequate budget measures are achieved. The TCR, on Feb. 1, 2016, reported that Standard & Poor's Ratings Services has lowered its underlying rating on Atlantic City Board of Education, N.J.'s existing general obligation (GO) bonds to 'BB-' from 'BBB-'. At the same time, S&P removed the rating from CreditWatch negative. The outlook is negative. At the same time, S&P affirmed its 'A' school program rating. The outlook on the program rating is stable. ATNA RESOURCES: Creditors Have Until Feb. 29 to File Claims ----------------------------------------------------------- Creditors of Atna Resources Inc. have until the end of this month to file their pre-bankruptcy claim against the company. Proofs of claim must be filed no later than the Feb. 29 deadline approved by Judge Sidney Brooks who oversees the company's bankruptcy case. This deadline is called a "bar date" because it means that creditors who come forward after that date may be "barred" from ever filing a claim against the company. Meanwhile, all governmental units that have claims against the company must submit a proof of their claims no later than May 16, 2016. About Atna Resources Atna Resources Ltd. was incorporated in British Columbia in 1984 and its corporate management office is located in Golden, Colorado. The company is involved in all phases of the mining business, including exploration, preparation of feasibility studies, permitting, construction, development, operation and reclamation of mining properties. The company is currently operating the Pinson Underground gold mine near Winnemucca, Nevada, the Briggs mine located in Inyo County, California, and other development and exploration-stage properties in Canada and the U.S. Atna Resources, Inc., et al., filed Chapter 11 bankruptcy petitions (Bankr. D. Colo. Proposed Lead Case No. 15-22848) on Nov. 18, 2015. The petition was signed by Rodney D. Gloss as vice president & chief financial officer. The Debtors estimated assets in the range of $10 million to $50 million and liabilities of $50 million to $100 million. Squire Patton Boggs (US) LLP represents the Debtors as counsel. The Office of the U.S. Trustee appointed five creditors to the official committee of unsecured creditors. Onsager Guyerson Fletcher Johnson LLC represents the committee. BERRY PLASTICS: Teachers Advisors Reports 1.5% Stake as of Dec. 31 ------------------------------------------------------------------ Teachers Advisors, Inc., disclosed in an amended Schedule 13G filed with the Securities and Exchange Commission that as of Dec. 31, 2015, it beneficially owns 1,826,133 shares of common stock of Berry Plastics Corporation representing 1.52 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/BVWuY3 About Berry Plastics Berry Plastics Corporation manufactures and markets plastic packaging products, plastic film products, specialty adhesives and coated products. At Jan. 2, 2010, the Company had more than 80 production and manufacturing facilities, primarily located in the United States. Berry is a wholly-owned subsidiary of Berry Plastics Group, Inc. Berry Group is primarily owned by affiliates of Apollo Management, L.P., and Graham Partners. Berry, through its wholly owned subsidiaries operates five reporting segments: Rigid Open Top, Rigid Closed Top, Flexible Films, Tapes/Coatings and Specialty Films. The Company's customers are located principally throughout the United States, without significant concentration in any one region or with any one customer. On Dec. 3, 2009, Berry Plastics obtained control of 100 percent of the capital stock of Pliant upon Pliant's emergence from reorganization pursuant to a proceeding under Chapter 11 for a purchase price of $602.7 million. Pliant is a manufacturer of films and flexible packaging for food, personal care, medical, agricultural and industrial applications. * * * As reported by the TCR on Jan. 30, 2015, Moody's Investors Service upgraded the corporate family rating of Berry Plastics to 'B1' from 'B2'. The upgrade of the corporate family rating reflects the pro-forma benefits from the recent restructuring and acquisitions. The TCR reported on Sept. 11, 2015, that Standard & Poor's Ratings Services said it affirmed its 'B+' corporate credit rating on Evansville, Ind.-based Berry Plastics Group Inc. "The corporate credit rating affirmation reflects our view that the AVINTIV acquisition enhances Berry's operations enough to offset the additional debt incurred to fund the transaction, resulting in a neutral effect on credit quality," said Standard & Poor's credit analyst James Siahaan. CAESARS ENTERTAINMENT: Examiner to File Report by Month's End ------------------------------------------------------------- Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review, reported that an end to the Chapter 11 restructuring of Caesars Entertainment Corp.'s operating unit may finally be in sight. According to the report, Richard J. Davis, the court-appointed examiner who has spent nearly a year investigating Caesars' relationship with its bankrupt unit, is expected to share his findings as soon as the end of the month. As previously reported by The Troubled Company Reporter, citing Reuters, U.S. Bankruptcy Judge Benjamin Goldgar on Jan. 20, 2015, said that he might dismiss Caesars's Chapter 11 bankruptcy case or convert it to one under Chapter 7 liquidation if the Company insists that the results of a probe into whether the Company transferred its most profitable properties to new owners before filing to reorganize under Chapter 11 remain sealed. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc., is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. In January 2015, Caesars Entertainment and subsidiary Caesars Entertainment Operating Company, Inc., announced that holders of more than 60% of claims in respect of CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior secured notes due 2020 and CEOC's 9% senior secured notes due 2020 have signed the Amended and Restated Restructuring Support and Forbearance Agreement, dated as of Dec. 31, 2014, among Caesars Entertainment, CEOC and the Consenting Creditors. As a result, The RSA became effective pursuant to its terms as of Jan. 9, 2015. Appaloosa Investment Limited, et al., owed $41 million on account of 10% second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. The bondholders are represented by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Delaware Bankruptcy Judge Kevin Gross entered a ruling that the bankruptcy proceedings will proceed in the U.S. Bankruptcy Court for the Northern District of Illinois. Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. The U.S. Trustee has appointed seven noteholders to serve in the Official Committee of Second Priority Noteholders and nine members to serve in the Official Unsecured Creditors' Committee. The U.S. Trustee appointed Richard S. Davis as Chapter 11 examiner. CARDIAC SCIENCE: Taps Patterson Thuente to Handle IP and Trademark ------------------------------------------------------------------ Cardiac Science Corporation asks the U.S. Bankruptcy Court for the Western District of Wisconsin for permission to employ Patterson, Thuente, Pedersen, P.A. (doing business as Patterson Thuente IP) as special counsel nunc pro tunc to Oct. 20, 2015. Prepetition, the Debtor used the Patterson Firm in the ordinary course of business to manage its extensive patent portfolio. The Patterson Firm's services to the Debtor have included, among other things, patent and trademark prosecution, advice on intellectual property rights and selected patent litigation work. According to the Debtor, to the extent that any matter will necessarily involve both the Patterson Firm and Whyte Hirschboeck Dudek S.C. as its general bankruptcy counsel, WHD, the Patterson Firm's special counsel services will compliment rather than duplicate the services. The Debtor owes the Patterson Firm approximately $440,000 for prepetition Intellectual Property Services rendered at an hourly rate. In resolution of the Patterson Claims, the Debtor agrees that the Patterson Firm will hold: (i) a secured claim equal to $1.4 million; and (ii) an unsecured claim equal to $2.5 million. CFS will agree that although it is purchasing the ZOLL Litigation and judgment free and clear of liens, the Patterson Secured Claim will attach to proceeds of the ZOLL Litigation settlement payment with priority over the liens of CFS and HDFC Bank Limited and be paid. CFS will pay to the Patterson Firm the Patterson Secured Claim amount as soon as practicable after it receives the ZOLL Litigation settlement payment. For the Intellectual Property Services only, the Patterson Firm agreed to cap its fees at a maximum of $20,000 per month, plus any expenses incurred in connection with the Intellectual Property Services. To the best of the Debtor's knowledge, the Patterson Firm does not represent or hold any interest adverse to the Debtor or its estate with respect to the matters on which the Patterson Firm is to be employed. About Cardiac Science Headquartered in Waukesha, Wisconsin, Cardiac Science Corporation develops, manufactures and sells a variety of advanced diagnostic and therapeutic cardiology devices and systems, including automated external defibrillators, hospital defibrillators and related products and consumables. Cardiac Science filed Chapter 11 bankruptcy petition (Bankr. W.D. Wisc. Case No. 15-13766) on Oct. 20, 2015. The petition was signed by Michael Kang as chief restructuring officer. The Company currently employs approximately 200 people in two facilities located in Wisconsin, and another 93 part time "educators" around the country who educate the Debtor's customers on how to use its products. The Debtor has customers in more than 100 countries. Judge Robert D. Martin presides over the case. The Company estimated assets in the range of $10 million to $50 million and liabilities of at least $100 million. Celestica Electronics (M) SDN BHD is the Debtor's largest unsecured creditor holding a claim of $2.5 million. CFS 915 LLC is the largest creditor of the Debtor, and its $87 million pre-petition loan is secured by substantially all of the Debtor's assets. CFS has agreed to provide $10 million in postpetition financing for the Debtor. The Debtor has engaged Whyte Hirschboeck Dudek S.C. as bankruptcy counsel, Livingstone Partners LLC as investment banker and Garden City Group, LLC as notice and claims agent. In October 2015, the Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. The committee is represented by Freeborn & Peters LLP. CCNG ENERGY: Court OKs Stipulation Resolving Bids to Dismiss Case ----------------------------------------------------------------- The Hon. Ronald B. King of the U.S. Bankruptcy Court for the Western District of Texas signed off a stipulation and agreed order resolving motions to dismiss the Chapter 11 case of CCNG Energy Partners, LP, et al. The stipulation was entered between the Debtors, Guggenheim Corporate Funding, LLC, as administrative agent, and Pirinate Consulting Group, LLC. Guggenheim has asserted that, among other things: -- Pirinate was appointed as the sole manager of each of the Operating Subsidiaries; and -- it may have additional claims against CCNG Energy Partners arising from the filing of the cases after receipt by the Parent of the Written Consents. Guggenheim and Pirinate each filed respective motions to dismiss the Operating Subsidiaries' bankruptcy cases. In this relation, the parties desire to resolve all claims in connection with the transactions under the proposed DIP Term Sheet. The Stipulation provides that: 1. All proceedings and discovery upon the motions to dismiss, and any and all claims of the parties relating to the Written Consents will be withdrawn and waived by the parties and Pirinate will receive payment under the budget of $12,500, and Dykema Cox Smith will receive payment, as an ordinary course professional or pursuant to other order of the Court, of $56,500; and 2. The Debtors will have no further liability to Pirinate or Dykema Cox Smith for further fees or expenses. About CCNG Energy CCNG Energy Partners, L.P. (the "Parent"), CCNG Energy Partners GP, L.L.C. ("CCNG GP"), Trinity Environmental SWD, L.L.C., Trinity Environmental Catarina SWD, L.L.C., Trinity Environmental Titan Trucking, L.L.C., Moss Bluff Property, L.L.C. and Trinity Environmental Services, L.L.C. (collectively, the "Operating Subsidiaries") filed Chapter 11 bankruptcy petitions (Bankr. W.D. Tex. Proposed Lead Case No. 15-70136) on Oct. 12, 2015. The petition was signed by Daniel B. Porter as CEO of General Partner. All of the Debtors' operations are performed by the Operating Subsidiaries. The Debtors estimated both assets and liabilities in the range of $100 million to $500 million. Taube Summers Harrison Taylor Meinzer Brown LLP serves as the Debtors' counsel. Judge Ronald B. King is assigned to the case. The Debtors are engaged in the disposal of produced saltwater and waste from the exploration and production of oil and gas. In 2015, the Office of the U.S. Trustee appointed six creditors to the official committee of unsecured creditors. The creditors are Sun Coast Resources Inc., KBK Industries, Sabine Storage & Operations Inc., Cambrian Management Ltd., WLP Oilfield Services, and Dolphin Services & Chemicals LLC. CCNG ENERGY: Files Schedules of Assets and Liabilities ------------------------------------------------------ CCNG Energy Partners, L.P., filed with the U.S. Bankruptcy Court for the Western District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $3,542,994 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $186,468,226 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-Priority Claims $726,624 ----------- ----------- Total $3,542,994 $187,194,850 A copy of the schedules are available for free at http://bankrupt.com/misc/CCNGEnergy_132_Nov25_SALs.pdf About CCNG Energy CCNG Energy Partners, L.P. (the "Parent"), CCNG Energy Partners GP, L.L.C. ("CCNG GP"), Trinity Environmental SWD, L.L.C., Trinity Environmental Catarina SWD, L.L.C., Trinity Environmental Titan Trucking, L.L.C., Moss Bluff Property, L.L.C. and Trinity Environmental Services, L.L.C. (collectively, the "Operating Subsidiaries") filed Chapter 11 bankruptcy petitions (Bankr. W.D. Tex. Proposed Lead Case No. 15-70136) on Oct. 12, 2015. The petition was signed by Daniel B. Porter as CEO of General Partner. All of the Debtors' operations are performed by the Operating Subsidiaries. The Debtors estimated both assets and liabilities in the range of $100 million to $500 million. Taube Summers Harrison Taylor Meinzer Brown LLP serves as the Debtors' counsel. Judge Ronald B. King is assigned to the case. The Debtors are engaged in the disposal of produced saltwater and waste from the exploration and production of oil and gas. In 2015, the Office of the U.S. Trustee appointed six creditors to the official committee of unsecured creditors. The creditors are Sun Coast Resources Inc., KBK Industries, Sabine Storage & Operations Inc., Cambrian Management Ltd., WLP Oilfield Services, and Dolphin Services & Chemicals LLC. CCNG ENERGY: Raymond James to Evaluate Strategic Alternatives ------------------------------------------------------------- CCNG Energy Partners, LP, et al., filed with the U.S. Bankruptcy Court for the Western District of Texas an amended engagement letter with Raymond James & Associates, Inc., their investment banker. A red-lined copy of the amendment is available for free at: http://bankrupt.com/misc/CCNGEnergy_130_102_AmendedRaymond.pdf The Hon. Ronald B. King on Nov. 24, 2015, entered an order authorizing the Debtors to employ Raymond James as their external investment banking advisor, nunc pro tunc to Oct. 30, 2015. About CCNG Energy CCNG Energy Partners, L.P. (the "Parent"), CCNG Energy Partners GP, L.L.C. ("CCNG GP"), Trinity Environmental SWD, L.L.C., Trinity Environmental Catarina SWD, L.L.C., Trinity Environmental Titan Trucking, L.L.C., Moss Bluff Property, L.L.C. and Trinity Environmental Services, L.L.C. (collectively, the "Operating Subsidiaries") filed Chapter 11 bankruptcy petitions (Bankr. W.D. Tex. Proposed Lead Case No. 15-70136) on Oct. 12, 2015. The petition was signed by Daniel B. Porter as CEO of General Partner. All of the Debtors' operations are performed by the Operating Subsidiaries. The Debtors estimated both assets and liabilities in the range of $100 million to $500 million. Taube Summers Harrison Taylor Meinzer Brown LLP serves as the Debtors' counsel. Judge Ronald B. King is assigned to the case. The Debtors are engaged in the disposal of produced saltwater and waste from the exploration and production of oil and gas. In 2015, the Office of the U.S. Trustee appointed six creditors to the official committee of unsecured creditors. The creditors are Sun Coast Resources Inc., KBK Industries, Sabine Storage & Operations Inc., Cambrian Management Ltd., WLP Oilfield Services, and Dolphin Services & Chemicals LLC. COLT DEFENSE: Fidelity Unit Invests $22 Million ----------------------------------------------- Mark Basch, contributing writer for the Jacksonville Daily Record, reported that Fidelity National Financial Inc. -- through its Fidelity National Financial Ventures (FNFV) unit -- has made a $22 million investment in Colt Defense LLC as the gun manufacturer emerged from Chapter 11 bankruptcy. Fidelity revealed the investment during FNFV's quarterly conference call with analysts on Feb. 11, the report said. "It's an iconic company. It's one of the best brand names in that type of industry in the world and the world is a dangerous place right now," said Fidelity Executive Vice President Brent Bickett, according to the report. He said Fidelity partnered with Newport Global Advisors, a firm it has teamed with in the past, to invest in debt securities issued by Colt. He did not say how much of an interest Fidelity will have in Colt. The company's Chapter 11 reorganization plan stated the Fidelity-Newport partnership, along with Colt's previous owner, Sciens Capital Management, will have voting control of Colt. About Colt Defense Colt Defense LLC is one of the world's oldest and most iconic designers, developers, and manufacturers of firearms for military, law enforcement, personal defense, and recreational purposes and was founded over 175 years ago by Samuel Colt, who patented the first commercial successful revolving cylinder firearm in 1836 and began supplying U.S. and international military customers with firearms in 1847. Colt is incorporated in Delaware and headquartered in West Hartford, Connecticut. In 1992, Colt Manufacturing Company, then the principal operating subsidiary, filed chapter 11 petitions (Bankr. D. Conn.). An investment by Zilkha & Co. allowed CMC to confirm a chapter 11 plan and emerge from Bankruptcy in 1994. Sometime after 1994, majority ownership of the Company Transitioned from Zilkha & Co. to Sciens Capital Management. Colt Holding Company LLC and nine affiliates, including Colt Defense LLC, on June 14, 2015, filed voluntary petitions (Bankr. D. Del. Lead Case No. 15-11296) for relief under Chapter 11 of the Bankruptcy Code to pursue a sale of the assets as a going concern. Colt Defense estimated $100 million to $500 million in assets and debt. On June 16, 2015, the Court directed the joined administration of the assets. The Debtors tapped Richards, Layton & Finger, P.A., and O'Melveny & Myers LLP, as attorneys, and Kurtzman Carson Consultants LLC as claims and noticing agent. Perella Weinberg Partners L.P. is acting as financial advisor of the Company, and Mackinac Partners LLC is acting as its restructuring advisor. Wilmington Savings Fund Society, FSB, as agent under the $13.3 million Term DIP Loan Agreement, is represented by Pryor Cashman LLP's Eric M. Hellige, Esq.; and Willkie Farr & Gallagher LLP's Leonard Klingbaum, Esq. Cortland Capital Market Services LLC, as agent under the $6.67 million Senior DIP Credit Agreement, is represented by Holland & Knight LLP's Joshua M. Spencer, Esq.; Stroock & Stroock & Lavan LLP's Brett Lawrence, Esq.; and Osler, Hoskin & Harcourt LLP's Richard Borins, Esq., and Tracy Sandler, Esq. The U.S. Trustee for Region 3 appointed five creditors of Colt Defense Inc. and its affiliates to serve on the official committee of unsecured creditors. MagPul Industries Corp. has resigned from the committee leaving only four Committee members. Sciens Capital is represented by Skadden, Arps, Slate, Meagher & Flom LLP's Anthony W. Clark, Esq., and Jason M. Liberi, Esq. * * * Colt Defense's Modified Second Amended Joint Plan of Reorganization was declared effective, and the Company emerged from Chapter 11 protection in January 2015. The Plan was confirmed on Dec. 16, 2015, and the Court approved modifications to the confirmed Plan on Jan. 12, 2016. Under the Plan, Colt Defense reduced its debt by approximately $200 million, after giving effect to $50 million of new capital raised through the restructuring process. In addition, the Company has executed a long-term lease for its West Hartford Facility and has entered into a memorandum of understanding with the United Auto Workers. DETROIT PUBLIC SCHOOLS: Lawmakers Pledge Bailout Won't Hurt Others ------------------------------------------------------------------ The Associated Press reported that lawmakers looking at a plan to spend $715 million over a decade rescuing Detroit's ailing school district said on Feb. 4, 2016, they will not pass legislation that affects the funding in other districts across the state. Instead, Republican and Democratic legislators are talking with Gov. Rick Snyder's administration about other funding sources, such as diverting a portion of tobacco tax revenue or the state's settlement with tobacco companies. According to the AP, the Senate Government Operations Committee on Feb. 4 held the first of a number of hearings on legislation to split the state-managed district in two this summer and gradually return control to a locally elected board. The district's 46,000 students would attend school in a new district, while the old one would remain intact to retire $515 million in operating debt over eight to 12 years. A commission of state appointees created to review Detroit's finances in the wake of bankruptcy would oversee the new district's budget until the debt is repaid and other conditions are met. The AP reported that the Republican governor's strategy director, John Walsh, told the GOP-controlled panel that "we fear inaction." "One of the worst things that can happen in our opinion to the state, to the students, to the district is bankruptcy," he said. "DPS would be operating under judicial order." The district is burdened by debt, falling enrollment, inadequate buildings and low morale among employees whose recent absences have closed schools. It has been under state financial management for almost seven years, and Snyder officials have warned the district could start being unable to pay some bills in the spring. According to the AP, others testifying included Detroit Mayor Mike Duggan, education advocates and the lead sponsor of the bills, Republican Sen. Goeff Hansen of Hart. Sen. Hansen said in the months before the legislation was introduced in January, he made concessions to Detroit Democrats such as retaining employees' union contract when they are transferred to the new district, more quickly transitioning to a fully elected board and keeping the lowest-achieving schools from being closed for at least two years to give them a chance to turn around. He also committed to ending the Snyder-backed Education Achievement Authority, which opened in 2013 and took over 15 Detroit schools through an agreement between Detroit schools' state emergency manager and Eastern Michigan University. Sen. Hoon-Yung Hopgood, D-Taylor, is working on legislation to use tobacco tax revenue to help the district. Sen. Hansen also raised the possibility of the state's tobacco settlement, telling reporters it could replace school aid funds sent to Detroit. Mayor Duggan raised concerns that the legislation does not call for a commission -- like Snyder proposed previously -- to "bring order" to the opening and closing of schools, including independent publicly funded charters that account for half the city's schools. Eighty percent of schools in the city either opened or closed in the last seven years, he said. DEWEY & LEBOEUF: Prosecutors Have Deal with Zachary Warren ---------------------------------------------------------- Matthew Goldstein, writing for The New York Times' DealBook, reported that the criminal case arising from the collapse of the once-prominent law firm Dewey & LeBoeuf has been cut in half, with Manhattan prosecutors agreeing to a deferred prosecution agreement with another of the four original defendants. According to the report, prosecutors announced the agreement with Zachary Warren, a 31-year-old lawyer, during a court hearing on Feb. 16 that came just weeks before he was to go on trial in New York State Supreme Court in Manhattan. Mr. Warren will be required to perform 350 hours of community service as part of the one-year agreement, the report related. In January, prosecutors working for Cyrus R. Vance Jr., the Manhattan district attorney, reached a similar deal with Steven H. Davis, the former chairman of Dewey, the report further related. Mr. Vance's prosecutors agreed to the deferred agreement with Mr. Davis after a jury deadlocked on dozens of charges against him and two other former executives at the law firm, Stephen DiCarmine and Joel Sanders, the report added. About Dewey & LeBoeuf Dewey & LeBoeuf LLP sought Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 12-12321) to complete the wind-down of its operations. The firm had struggled with high debt and partner defections. Dewey disclosed debt of $245 million and assets of $193 million in its chapter 11 filing late evening on May 29, 2012. Dewey & LeBoeuf LLP operated as a prestigious, New York City- based, law firm that traced its roots to the 2007 merger of Dewey Ballantine LLP -- originally founded in 1909 as Root, Clark & Bird -- and LeBoeuf, Lamb, Green & MacCrae LLP -- originally founded in 1929. In recent years, more than 1,400 lawyers worked at the firm in numerous domestic and foreign offices. At its peak, Dewey employed about 2,000 people with 1,300 lawyers in 25 offices across the globe. When it filed for bankruptcy, only 150 employees were left to complete the wind-down of the business. Dewey's offices in Hong Kong and Beijing are being wound down. The partners of the separate partnership in England are in process of winding down the business in London and Paris, and administration proceedings in England were commenced May 28. All lawyers in the Madrid and Brussels offices have departed. Nearly all of the lawyers and staff of the Frankfurt office have departed, and the remaining personnel are preparing for the closure. The firm's office in Sao Paulo, Brazil, is being prepared for closure and the liquidation of the firm's local affiliate. The partners of the firm in the Johannesburg office, South Africa, are planning to wind down the practice. The firm's ownership interest in its practice in Warsaw, Poland, was sold to the firm of Greenberg Traurig PA on May 11 for $6 million. The Pension Benefit Guaranty Corp. took $2 million of the proceeds as part of a settlement. Judge Martin Glenn oversees the case. Albert Togut, Esq., at Togut, Segal & Segal LLP, represents the Debtor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The petition was signed by Jonathan A. Mitchell, chief restructuring officer. JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the lenders under the Revolver Agreement, hired Kramer Levin Naftalis & Frankel LLP. JPMorgan, as Collateral Agent for the Revolver Lenders and the Noteholders, hired FTI Consulting and Gulf Atlantic Capital, as financial advisors. The Noteholders hired Bingham McCutchen LLP as counsel. The U.S. Trustee formed two committees -- one to represent unsecured creditors and the second to represent former Dewey partners. The creditors committee hired Brown Rudnick LLP led by Edward S. Weisfelner, Esq., as counsel. The Former Partners hired Tracy L. Klestadt, Esq., and Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel. FTI Consulting, Inc. was appointed secured lender trustee for the Secured Lender Trust. Alan Jacobs of AMJ Advisors LLC, was named Dewey's liquidation trustee. Scott E. Ratner, Esq., Frank A. Oswald, Esq., David A. Paul, Esq., Steven S. Flores, Esq., at Togut, Segal & Segal LLP, serve as counsel to the Liquidation Trustee. Dewey's liquidating Chapter 11 plan was approved by the bankruptcy court in February 2013 and implemented in March. The plan created a trust to collect and distribute remaining assets. The firm estimated that midpoint recoveries for secured and unsecured creditors under the plan would be 58.4 percent and 9.1 percent, respectively. DIOCESE OF DULUTH: Judge Zive to Serve as Mediator -------------------------------------------------- Tom Olsen, writing for Duluth News Tribune, reports that The Diocese of Duluth and attorneys representing dozens of child sexual abuse victims have agreed to enter mediation talks ahead of a May 25 deadline for filing claims. The report says the Hon. Gregg Zive, a federal bankruptcy judge in Arizona, is expected to assist in negotiations between the parties. Judge Zive has served as a mediator in diocesan bankruptcies in Spokane, Wash., and Stockton, Calif., and with the Chapter 9 bankruptcy of San Bernardino, Calif. According to the report, the parties have agreed that mediation will begin by May 1 and take place in Minneapolis. If any party objects to Judge Zive's appointment, Bankruptcy Judge Robert Kressel, who is presiding over the bankruptcy case, will hold a hearing on March 10 to consider the appointment. About Diocese of Duluth The Diocese of Duluth sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Minn. Case No. 15-50792) on Dec. 7, 2015. The case is assigned to Judge Robert J Kressel. The Debtor's lead counsel is Bruce A Anderson, Esq., and J Ford Elsaesser, Esq., at Elsaesser Jarzabek Anderson Elliott & MacDonald, CHTD., in Sandpoint, Idaho. The Debtor's local counsel is Phillip Kunkel, Esq., at Gray, Plant, Mooty, Mooty & Bennett, P.A., in St Cloud, Minnesota. * * * Duluth News Tribune reports that the Diocese of Duluth sought Chapter 11 bankruptcy protection amid a $4.9 million judgment against it in the first case to go to trial under the Minnesota Child Victims Act. With an annual budget of about $3.3 million -- and facing dozens of additional claims -- diocese officials stated that bankruptcy was the only way they could fairly compensate all victims while maintaining essential church operations. The report adds that a diocese official testified at a hearing earlier in February 2016 that, as of November 2015, the church maintained net assets of a little more than $5 million and total liabilities of just over $12 million. Victims have until May 25, 2016, to file sexual abuse claims in bankruptcy court. ESTATE FINANCIAL: Has Deal on Allocation of Dispute Proceeds ------------------------------------------------------------ Thomas P. Jeremiassen, the duly appointed Chapter 11 Trustee for the estate of Estate Financial, Inc., seeks authority from the U.S. Bankruptcy Court for the Central District of California to enter into a settlement agreement with Bradley D. Sharp, solely in his capacity as liquidating trustee of the EFMF Liquidating Trust. The EFI Trustee and EFMF Trustee have agreed on to enter into a Settlement Agreement to fully and finally resolve substantially the issue on the distribution of Dispute Proceeds that have already been received and some of which may be received by one or the other Party in the future through litigation or settlement. The Trustees agreed to allocate these Dispute Proceeds as follows: 68% to the EFMF Liquidating Trust and 32% to the EFI Estate. The Trustees further stipulate that EFMF Liquidating Trust will not receive any distributions in connection with those funds in its capacity as a general unsecured creditor of EFI, whether pursuant to the EFI Plan or any distribution to creditors made by a trustee if the EFI Case is converted to one under Chapter 7 of the Bankruptcy Code. The Trustees further agree that each Trustee releases the other and related parties in connection with Disputes and the Dispute Proceeds. The EFI Trustee tells the Court that prior to the commencement of the Cases, that various professionals or companies performed services for EFI and EFMF, including legal and accounting services. In connection with an alleged wrongful conduct of these Professionals, the Trustees made demands upon and entered into settlement negotiations with Seid & Zucker and its insurer, and commenced concurrent adversary proceedings against Bryan Cave LLP, respectively. In addition, the EFI Trustee claims that the Seid & Zucker dispute has been settled and pending allocation between EFI Estate and the EFMF Liquidating Trust for which the EFI Trustee is holding approximately $450,000 on account thereof, and that there may be future litigation or settlement proceeds in connection with the Bryan Cave dispute. According to the EFI Trustee, Creditors of the Debtor EFI will benefit the allocation of the Dispute Proceeds since the division reflected in the Settlement Agreement closely coincides with both the aggregate amount which EFMF provided to EFI subsequent to the time the Trustees allege that damages began accruing against Bryan Cave relative to the aggregate amount which all others provided to EFI subsequent to such time, and the anticipated amount of the allowed EFMF claim as a general unsecured creditor in the EFI case relative to the anticipated, aggregate amount of the allowed claims of all other general unsecured creditors. Furthermore, the EFI Trustee alleges that approval and distribution of the Disclosure Statement and the development of confirmation procedures constitute the first step in the confirmation process, thus, a Joint Motion was filed by the Chapter 11 Trustee and the Creditors’ Committee, requesting among other things, for the Court’s approval of a proposed solicitation and voting procedures in connection with the First Amended Liquidating Plan under Chapter 11 of the Bankruptcy Code, for which Joint Motion has been scheduled for Feb. 17, 2016 for a hearing. The EFI Trustee claims that along with the Plan is the Disclosure Statement which describes, among other things, the proposed Plan, the proposed treatment of various Claims and Interests pursuant thereto, and the potential effects of such treatment on the entities holding those Claims and Interests. The EFI Creditors' Committee has no objection to the Motion and the settlement embodied in the Settlement Agreement. Thomas P. Jeremiassen, EFI Trustee, is represented by: Robert B. Orgel, Esq. Jeffrey L. Kandel, Esq. Cia H. Mackle, Esq. PACHULSKI STANG ZIEHL & JONES LLP 10100 Santa Monica Blvd., 13th Floor Los Angeles, California 90067-4003 Telephone: (310) 277-6910 Facsimile: (310) 201-0760 Email: rorgel@pszjlaw.com jkandel@pszjlaw.com cmackle@pszjlaw.com The Official Committee of Unsecured Creditors is represented by: David W. Meadows, Esq. LAW OFFICES OF DAVID W. MEADOWS 1801 Century Park East, Suite 1235 Los Angeles, California 90067 Telephone: 310-557-8490 Facsimile: 310-557-8493 E-mail:david@davidwmeadowslaw.com About Estate Financial Estate Financial, Inc., was a licensed real estate brokerage firm since the later 1980's. EFI solicited funding for, and arranged and made, loans secured by various real property. EFI also was the sole manager of Estate Financial Mortgage Fund LLC, which was organized for the purpose of investing in and funding loans originated by EFI which were secured by first deeds of trust encumbering commercial and real estate located primarily in California and has been funding such mortgage loans since 2002. Five creditors of EFI filed an involuntary Chapter 11 petition against the real estate broker (Bankr. C.D. Cal. Case No. 08-11457) on June 25, 2008. EFI consented to the bankruptcy petition on July 16, 2008. In its schedules, Estate Financial disclosed total assets of $27.4 million, and total debt of $7.32 million. Robert B. Orgel, Esq., at Pachulski Stang Ziehl & Jones LLP, and William C. Beall, Esq., at Beall and Burkhardt, serve as counsel to the Debtor. A Chapter 11 trustee, Thomas P. Jeremiassen, was appointed by the Court on July 23, 2008. Robyn B. Sokol, Esq., and Steven T. Gubner, Esq., at Ezra Brutzkus & Gubner, serve as counsel to the official committee of unsecured creditors. FPMC FORT WORTH: Files Schedules of Assets and Liabilities ---------------------------------------------------------- FPMC Fort Worth Realty Partners, LP filed with the U.S. Bankruptcy Court for the Western District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $120,000,000 B. Personal Property $9,984,412 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $67,116,330 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-Priority Claims $3,814,408 ----------- ----------- Total $129,984,412 $70,930,738 A copy of the schedules is available for free at: http://bankrupt.com/misc/FPMCFort_27_Dec24_SAL.pdf About FPMC Fort Worth FPMC Fort Worth Realty Partners, LP filed a Chapter 11 bankruptcy petition (Bankr. N.D. Tex. Case No. 15-44791) on Nov. 30, 2015. The petition was signed by Todd Furniss as manager of Neal Richards Group Forest Park Development LLC, its general partner. Franklin Hayward LLP represents the Debtor as counsel. Judge Mark X. Mullin has been assigned the case. Proofs of claims are due by April 7, 2016. FPMC SAN ANTONIO: Files Schedules of Assets and Liabilities ----------------------------------------------------------- FPMC San Antonio Realty Partners, LP, filed U.S. Bankruptcy Court for the Western District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $101,000,000 B. Personal Property $9,301,170 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $64,468,931 E. Creditors Holding Unsecured Priority Claims $2,542,943 F. Creditors Holding Unsecured Non-Priority Claims $271,870 ----------- ----------- Total $110,301,170 $67,283,744 A copy of the schedules is available for free at: http://bankrupt.com/misc/FPMCSanAntonio_50_Oct29_SAL.pdf Statement on Creditors Committee On Nov. 13, 2015, Judy A. Robbins, U.S. Trustee for Region 7 notified the Court that she was unable to appoint an Unsecured Creditors' Committee as contemplated by Section 1102 of the Bankruptcy Code. According to the U.S. Trustee, she has been unable to solicit sufficient interest in serving on the Committee, in order to appoint a proper Committee. About FPMC San Antonio FPMC San Antonio Realty Partners, LP's primary asset is a property commonly known as the Forrest Park Medical Center Hospital and Medical Office Building located at 5510 Presidio Parkway in San Antonio, Texas. Forrest Park Medical Center Hospital is a specialty surgical hospital and medical office building. The four-story, 150,000 square-foot hospital has 54 beds. The Property includes an adjacent 4-story, 84,000 square foot Medical Office Building, together with a parking garage. FPMC did not operate the health care business conducted on its property and instead leased the surgical hospital to a third party. The hospital has ceased operations and furloughed its employees. FPMC San Antonio Realty Partners sought Chapter 11 bankruptcy protection (Bankr. W.D. Tex. Case No. 15-52462) on Oct. 6, 2015 to pursue an 11 U.S.C. Sec. 363 sale of the assets. The Debtor was forced to file the Chapter 11 Case in order to stop an impending foreclosure on the Property Judge Craig A. Gargotta is assigned to the case. The Debtor estimated assets of in the range of $100 million to $500 million and liabilities of at least $50 million. The Debtor tapped the Law Offices of Ray Battaglia, PLLC, as counsel. The Debtor also engaged CBRE, Inc., to market the property. FREEDOM COMMUNICATIONS: Proposes Bonus, Severance Plans ------------------------------------------------------- Jonathan Randles at Bankruptcy Law360 reported that the owner of the Orange County Register on Feb. 8, 2016, sought a California bankruptcy judge's permission to implement bonuses worth up to $1.5 million for a group of executives and a severance package worth $1.8 million for the newspaper's employees, saying that both are needed to boost morale and stem turnover. Freedom Communications Inc. said in court papers that 32 employees, including its vice president of sales, have left the company since it filed for Chapter 11 protection in the fall. About Freedom Communications Headquartered in Santa Ana, California, Freedom Communications, Inc., owns two daily newspapers -- The Press-Enterprise in Riverside, Calif. and The Orange County Register in Santa Ana, Calif. Freedom Communications and 24 of its affiliates sought Chapter 11 bankruptcy protection in California with the intention of selling their assets to a group of local investors led by Rich Mirman, Freedom's chief executive officer and publisher. Headquartered in Santa Ana, California, Freedom owns two daily newspapers -- The Press-Enterprise in Riverside, Calif. and The Orange County Register in Santa Ana, Calif. Freedom Communications, Inc., et al., filed Chapter 11 bankruptcy petitions (Bankr. C.D. Cal. Proposed Lead Case No. 15-15311) on Nov. 1, 2015. Richard E. Mirman signed the petition as chief executive officer. Lobel Weiland Golden Friedman LLP serves as the Debtors' counsel. Freedom Communications Holdings estimated both assets and liabilities in the range of $10 million to $50 million. FRESH & EASY: Creditors Investigate Ties to Yucaipa --------------------------------------------------- Tom Corrigan, writing for Dow Jones' Daily Bankruptcy Review, reported that citing failed settlement talks with Fresh & Easy LLC backer Yucaipa Cos., creditors of the supermarket operator are now looking into possible legal claims against the investment firm and others. According to the report, in court papers filed earlier in February with the U.S. Bankruptcy Court in Wilmington, Del., lawyers representing Fresh & Easy's unsecured creditors asked Judge Brendan Shannon for access to a broad range of information about the company's past business transactions, including the alleged transfer of at least $40 million in real-estate assets from Fresh & Easy to an affiliate of Los Angeles-based Yucaipa. A hearing on the matter is set for Feb. 18, the report said. About Fresh & Easy Fresh & Easy, LLC, a chain of grocery stores in the Southwest United States, filed Chapter 11 bankruptcy petition (Bankr. D. Del., Case No. 15-12220) on Oct. 30, 2015. The petition was signed by Peter McPhee as chief financial officer. The Debtor estimated assets of $10 million to $50 million and liabilities of at least $100 million. The Debtor has engaged Cole Schotz P.C. as counsel, Epiq Bankruptcy Solutions, LLC as claims and noticing agent, DJM Realty Services, LLC and CBRE Group, Inc., as real estate consultants and FTI Consulting, Inc. as restructuring advisors. Judge Christopher S. Sontchi is assigned to the case. FUHU INC: Seeks to Extend Deadline to Remove Suits to July 5 ------------------------------------------------------------ Fuhu Inc. has filed a motion seeking additional time to remove lawsuits involving the company and its affiliates. In its motion, the company asked U.S. Bankruptcy Judge Christopher Sontchi to move the deadline for filing notices of removal of the lawsuits to July 5, 2016. The motion is on Judge Sontchi's calendar for Feb. 24, 2016. About Fuhu Fuhu, Inc. and Fuhu Holdings, Inc. filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Proposed Lead Case No. 15-12465) on Dec. 7, 2015. The petition was signed by James Mitchell as chief executive officer. The Debtors estimated assets in the range of $10 million to $50 million and liabilities of $100 million to $500 million. Pachulski Stang Ziehl & Jones LLP represents the Debtors as counsel. Judge Christopher S. Sontchi presides over the case. Fuhu is headquartered in El Segundo, California, and employs approximately 115 employees and retains one independent contractor who work in various areas including marketing, sales, operations, creative, technology, development and management. Court document indicates that between 2010 and 2013, Fuhu's revenue grew to more than $195 million in 2013. Fuhu's array of nabi tablets are sold in more than 10,000 retail outlets, including Target, Best Buy, Costco Wholesale, Toys R'Us and Walmart stores. Fuhu Moldings owns significant intellectual property assets of the Debtors, including trademarks and copyrights. The Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. Cooley LLP represents the committee. FUTUREWORLD CORP: Admits Going Concern Doubt Amid Net Losses ------------------------------------------------------------ For the year ended March 31, 2015, FutureWorld Corp. incurred a net loss of $1,405,157 and a cumulative net loss since inception of $7,468,578, according to the company's regulatory filing with the U.S. Securities and Exchange Commission on February 1, 2016. As of March 31, 2015, the company had a working capital of $3,715 and $3,715 in cash with which to satisfy any future cash requirements. According to the company, these conditions raise substantial doubt about its ability to continue as a going concern. The company depends upon capital derived from future financing activities such as loans from its officers and directors, subsequent offerings of its common stock or debt financing in order to operate and grow the business either directly or through its subsidiary. There can be no assurance that the company will be successful in raising such capital. The key factors that are not in the company's control and that may have a direct bearing on operating results. These factors include, but are not limited to, acceptance of the company's business plan, the ability to raise capital in the future, the ability to expand its customer base, and the ability to hire key employees to grow the business. There may be other risks and circumstances that management may be unable to predict. Furthermore, the company reported a change in certifying accountants, which involved DKM Certified Public Accountants (DKM) resigning as its independent registered public accounting firm effective June 19, 2015. DKM issued a report on the company's consolidated financial statements for the fiscal year ended March 31, 2014. The report did not contain an adverse opinion or disclaimer of opinion, and was not modified as to uncertainty, audit scope, or accounting principles. Except that it contained an explanatory paragraph expressing concern over the company's ability to continue as a going concern. "This 10K does not include audited financials. Our previous auditors unexpectedly, closed the operations, given us no time to effectively prepare for a new auditor. We are working diligently to remedy this situation by working with new auditors to complete a 10K with audited financials," the company told the SEC. At March 31, 2015, the company had total assets of $35,385,474, total liabilities of $1,667,144 and total stockholders' equity of $33,718,331. For the year ended March 31, 2015, the company incurred a net loss of $1,405,157 as compared with a net loss of $156,319 for the year ended March 31, 2014. A full-text copy of the company's annual report, as amended, is available for free at: http://tinyurl.com/zqhz4zg Saint Petersburg, Florida-based FutureWorld Corp. (FWDG) is a provider of technologies and solutions to the global cannabis industry. FutureWorld, together with its subsidiaries, is focused on the identification, acquisition, development, and commercialization of cannabis related products and services, like industrial hemp. HAGGEN HOLDINGS: Closing Sales at Puyallup Store Approved --------------------------------------------------------- Haggen Holdings, LLC, et al., on Jan. 29, 2016, won approval of a motion allowing the Debtors to: (i) commence store closing sales at the Debtors' store located at 11012 Canyon Rd. East in Puyallup, WA, (ii) implement procedures to sell merchandise at the Store; (iii) enter into a Third Letter Agreement Governing Inventory Disposition by and among Debtor Haggen Opco North, LLC and Hilco Merchant Resources, LLC, dated Jan. 7, 2016. The Debtors engaged Hilco as exclusive agent for the purpose of conducting a sale of merchandise and FF&E at the Puyallup Store through a "Store Closing", "Everything Must Go", "Everything on Sale" or similar themed sale. The sale will commence on or about February 4, 2016 -- Supplemental Sale Commencement Date -- and terminate no later than March 7, 2016. Provided the Gross Cost Recovery is no less than 88% -- Base Fee Threshold -- the Agent will earn a fee equal to 0.5% -- Agent's Supplemental Fee -- of the aggregate Gross Proceeds of Merchandise sold at the Store. The Debtors filed the Motion on Jan. 14, 2016. No objections or responses were filed by the Jan. 26 deadline. After consulting with the Official Committee of Unsecured Creditors and the Debtors prepetition and postpetition lenders, the Debtors agreed to submit a modified proposed order granting the Motion. The revised proposed order provides that only the sale of merchandise exclusive of furniture, fixtures and equipment (the FF&E") at Puyallup Store will be authorized. And the Debtors will be authorized to sell, transfer or abandon certain surplus, obsolete, non-core, or burdensome assets (exclusive of all furniture, fixtures and equipment at the Puyallup Store) (such assets, the "De Minimis Assets"). The original procedures and proposed order provided for the inclusion of the FF&E in the store closing sales. A copy of the Jan. 29 Approving the Puyallup Store Closing Sales is available for free at: http://bankrupt.com/misc/Haggen_H_1348_Ord_Puyallup_Closing.pdf The Agent can be reached at: HILCO MERCHANT RESOURCES, LLC 5 Revere Drive, Suite 206, Northbrook, IL 60062 Attn: Ian Fredericks E-mail: ifredericks@hilcoglobal.com About Haggen Holdings Headquartered in Bellingham, Washington, Haggen was founded in 1933 as a single grocery store. From 1933 to 2014, Haggen grew into a 30 store family-run grocery chain, with stores located in the northwestern United States. From 2011 to 2014, Haggen reduced its store base to 18, including a stand-alone pharmacy location. Haggen rapidly expanded in 2014 and 2015, and, as of the Petition Date, Haggen owned and operated 164 stores through three operating companies: Haggen, Inc., Haggen Opco North, LLC and Haggen Opco South, LLC. Haggen Holdings, LLC, and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 15-11874 to 15-11879) on Sept. 8, 2015, with the intention of reorganizing, or selling as a going concern, their stores for the benefit of their creditors. The petitions were signed by Blake Barnett, the chief financial officer. The Debtors estimated assets of $50 million to $100 million and estimated liabilities of $10 million to $50 million. Young, Conaway, Stargatt & Taylor, LLP, is serving as the Debtors' local counsel. Stroock & Stroock & Lavan LLP serves as the Debtors' general counsel. Alvarez & Marsal North America, LLC, acts as the Debtors' financial advisor. Kurtzman Carson Consultants LLC serves as the Debtors' claims and noticing agent. In September 2015, T. Patrick Tinker, assistant U.S. trustee for Region 3, appointed seven creditors to the official committee of unsecured creditors. The Committee tapped Pachulski Stang Ziehl & Jones LLP as counsel, nunc pro tunc to the Sept. 21, 2015. HAGGEN HOLDINGS: Deadline to Auction Core Stores Moved to Feb. 22 ----------------------------------------------------------------- Haggen Holdings, LLC, et al., on Feb. 12, 2016, obtained a Bankruptcy Court order authorizing a sixth amendment to their DIP Credit Agreement. The Amendment extends the sales-related deadlines for the Debtors' core stores. The Debtors on Oct. 15, 2015, won entry of a final order authorizing them to obtain postpetition financing in accordance with the DIP Credit Agreement. The Debtors secured financing of up to $215 million from PNC Bank, National Association, in its capacity as agent. The Original DIP Credit Agreement provided for a termination date of Feb. 5, 2016. A copy of the DIP Financing Order is available for free at: http://bankrupt.com/misc/Haggen_H_449_Ord_DIP_Loans.pdf The Sixth Amendment extends the deadline to: -- conduct an auction for the Debtors' core stores (as provided in Sec. 10.7(u) of the DIP Credit Agreement) to Feb. 22, 2016; and -- obtain court approval of the Core Stores Sale (as provided in Sec. 10.7(v) of the DIP Credit Agreement) to Feb. 24, 2016. The original auction deadline was Jan. 15, and the sale order deadline at Jan. 18. Failing to comply with the core stores sales deadlines is an event of default under the DIP Credit Agreement. The DIP Agent, the DIP Lenders, the U.S. Trustee and the Creditors' Committee have consented to the Court's entry of the order approving the Sixth Amendment. A copy of the Order is available for free at: http://bankrupt.com/misc/Haggen_H_1443_Ord_6th_Am_DIP.pdf The Debtors won approval of a bidding process for its core stores in December. The procedures allow the grocery chain to enter into a deal with a buyer that will serve as the stalking horse bidder at auction. PNC Bank can submit a credit bid. Haggen considers the stores in Oregon and Washington as its "core" stores as they are "relatively successful" and are located in strategic locations, according to its lawyer, Robert Poppiti Jr. Esq., at Young Conaway Stargatt & Taylor LLP. About Haggen Holdings Headquartered in Bellingham, Washington, Haggen was founded in 1933 as a single grocery store. From 1933 to 2014, Haggen grew into a 30 store family-run grocery chain, with stores located in the northwestern United States. From 2011 to 2014, Haggen reduced its store base to 18, including a stand-alone pharmacy location. Haggen rapidly expanded in 2014 and 2015, and, as of the Petition Date, Haggen owned and operated 164 stores through three operating companies: Haggen, Inc., Haggen Opco North, LLC and Haggen Opco South, LLC. Haggen Holdings, LLC, and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 15-11874 to 15-11879) on Sept. 8, 2015, with the intention of reorganizing, or selling as a going concern, their stores for the benefit of their creditors. The petitions were signed by Blake Barnett, the chief financial officer. The Debtors estimated assets of $50 million to $100 million and estimated liabilities of $10 million to $50 million. Young, Conaway, Stargatt & Taylor, LLP, is serving as the Debtors' local counsel. Stroock & Stroock & Lavan LLP serves as the Debtors' general counsel. Alvarez & Marsal North America, LLC, acts as the Debtors' financial advisor. Kurtzman Carson Consultants LLC serves as the Debtors' claims and noticing agent. In September 2015, T. Patrick Tinker, assistant U.S. trustee for Region 3, appointed seven creditors to the official committee of unsecured creditors. The Committee tapped Pachulski Stang Ziehl & Jones LLP as counsel, nunc pro tunc to the Sept. 21, 2015. HAGGEN HOLDINGS: Landlords to 9 Core Stores Want to Evaluate Buyer ------------------------------------------------------------------ MGP X DHP, LLC, MGP X Properties, LLC, and MGP XI Town Center Lake Forest, LLC filed with the Bankruptcy Court a limited objection and reservation of rights to Haggen Holdings, LLC, et al.'s proposed assumption and assignment of nine leases, which are included in the "core" leases that the Debtors have sought Court approval to sell. The Landlords lease to the Debtors retail space at these locations: Store No. Location --------- -------- 2120 17171 Bothell Way NE, Seattle, WA 11 2814 Meridian St., Bellingham, WA 25 1401 12th St., Bellingham, WA 77 3711 88th St. N.E., Marysville, WA 63 1815 Main St., Ferndale, WA 43 210 3th St., Bellingham, WA 69 2601 East Division, Mount Vernon, WA 55 26603 72nd Ave., N.W. 15 757 Haggen Dr., Burlington, WA On Jan. 12, 2016, the Debtors filed a Notice of Assumption, Assignment and Cure Amount with Respect to Executory Contracts and Unexpired Leases in connection with the proposed sale of the Debtors' "core" leases. All nine of the Leases have been designated as "core leases". The Landlords assert that before assuming and assigning any unexpired lease, the Debtors and the proposed assignee must provide adequate assurance of future performance, pursuant to Sec. 365(b)(1)(C), (b)(3) and (f)(2)(B) of the Bankruptcy Code. "To date, the Debtors have not selected a stalking horse bidder, have not designated any qualified bidders, and have provided no documents or other information to the Landlords showing adequate assurance of future performance under the Leases, such as documents or other information showing the proposed assignee's current financial wherewithal (e.g., balance sheets, cash flow statements, tax returns, projections, etc.), the proposed assignee's experience in operating grocery stores, and the proposed assignee's ability to perform fully under the Leases without issue both upon assumption and assignment and through the remaining terms of the Leases. Accordingly, the Landlords cannot evaluate the eventual purchaser's acceptability as an assignee, or whether the prerequisites of sections 365(b)(1)(C), (b)(3) and (f)(2)(B) of the Bankruptcy Code will be met. The Landlords object to any proposed assumption and assignment of the Leases to any proposed assignee unless the Debtors and/or the proposed assignee comply with sections 365(b)(1)(C), (b)(3) and (f)(2)(B). Absent strict compliance with those sections, any proposed assumption and assignment must be denied," the Landlords said in the Feb. 12, 2016 court filing. The Landlords request that, as a condition to any order approving assumption and assignment of the Leases, any assignee shall be required, at the discretion of the Landlords, to enter into either a short form Assumption and Amendment Agreement or a new lease whereby the assignee shall become directly obligated to the Landlords and appropriate revisions to the Leases (for example, regarding notice addresses, brand name, references to "permitted subtenants" and the like) must be made satisfactory to the Landlords consistent with Section 365. The Landlords are represented by: SAUL EWING LLP Mark Minuti, Esq. Lucian B. Murley, Esq. 222 Delaware Avenue, Suite 1200 P.O. Box 1266 Wilmington, DE 19899 Tel: (302) 421-6840 Fax: (302) 421-5873 E-mail: mminuti@saul.com lmurley@saul.com - and - Lee R. Bogdanoff, Esq. David M. Guess, Esq. KLEE, TUCHIN, BOGDANOFF & STERN LLP 1999 Avenue of the Stars, 39th Floor Los Angeles, CA 90067 Tel: (310) 407-4000 Fax: (310) 407-9090 E-mail: lbogdanoff@ktbslaw.com dguess@ktbslaw.com About Haggen Holdings Headquartered in Bellingham, Washington, Haggen was founded in 1933 as a single grocery store. From 1933 to 2014, Haggen grew into a 30 store family-run grocery chain, with stores located in the northwestern United States. From 2011 to 2014, Haggen reduced its store base to 18, including a stand-alone pharmacy location. Haggen rapidly expanded in 2014 and 2015, and, as of the Petition Date, Haggen owned and operated 164 stores through three operating companies: Haggen, Inc., Haggen Opco North, LLC and Haggen Opco South, LLC. Haggen Holdings, LLC, and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 15-11874 to 15-11879) on Sept. 8, 2015, with the intention of reorganizing, or selling as a going concern, their stores for the benefit of their creditors. The petitions were signed by Blake Barnett, the chief financial officer. The Debtors estimated assets of $50 million to $100 million and estimated liabilities of $10 million to $50 million. Young, Conaway, Stargatt & Taylor, LLP, is serving as the Debtors' local counsel. Stroock & Stroock & Lavan LLP serves as the Debtors' general counsel. Alvarez & Marsal North America, LLC, acts as the Debtors' financial advisor. Kurtzman Carson Consultants LLC serves as the Debtors' claims and noticing agent. In September 2015, T. Patrick Tinker, assistant U.S. trustee for Region 3, appointed seven creditors to the official committee of unsecured creditors. The Committee tapped Pachulski Stang Ziehl & Jones LLP as counsel, nunc pro tunc to the Sept. 21, 2015. HANCOCK FABRICS: Fillmore Outlet to Close in April -------------------------------------------------- Heather Kennison, writing for Twin Falls Times-News, reports that Hancock Fabrics on Fillmore Street is closing after its parent company filed Chapter 11 bankruptcy. The store will close in mid- to late-April and is selling its inventory with no returns, manager Allison Wagstaff said, according to the report. The Associated Press reported Hancock Fabrics plans to close at least 70 money-losing stores. The report says the Idaho Falls location will also close. A bankruptcy judge in Delaware on Feb. 3, 2016, authorized Hancock Fabrics to sell its stores. Judge Brendan L. Shannon also authorized a $100 million debtor-in-possession credit facility. Great American-Led Closing Sales As reported in the Feb. 8, 2016 edition of the TCR, Hancock Fabrics, Inc., et al., sought authority from the Bankruptcy Court to continue to commence and continue store closing or similar themed sales in accordance with a Consulting Agreement dated as of Jan. 23, 2016, with Great American Group, LLC, as consultant. The Debtors operate more than 260 stores in 37 states under the name of "Hancock Fabrics," a national fabric and specialty retailer offering an extensive selection of high-quality fashion and home decorating textiles, sewing accessories, needlecraft supplies, and sewing machines, along with in-store sewing advice. The Debtors intend to close a limited number of uneconomic and underperformed retail stores and to pursue a sale of the balance of their business through an auction process -- ideally on a going-concern basis. Lincoln International LLC, the Debtors' proposed investment banker, had identified a total of 70 stores as underperforming stores that should be closed immediately to ease certain of the liquidity restraints that the Debtors currently face by means of a store closing or similar themed sales. In order to maximize the value of the inventory to be included in the Store Closing Sales at the Closing Stores and the owned furniture, fixtures, and equipment in the Closing Stores, the Debtors sought to retain Great American, a national liquidation firm, as consultant. Under the terms of the Consulting Agreement, Great American will serve as the exclusive agent to the Debtors for the purpose of conducting a sale of certain Merchandise and Owned FF&E at the Closing Stores using the procedures outlined in the Sale Guidelines. The sale term is from around Feb. 8, 2016, to May 30, 2016. About Hancock Fabrics Hancock Fabrics, Inc., is a specialty fabric retailer operating stores under the name "Hancock Fabrics". Hancock has 4,500 full-time and part time employees. The Baldwyn, Mississippi-based company is one of the largest fabric retailers in the United States, operating 260 stores in 37 states as of October 31, 2015 and an internet store under the domain name http://www.hancockfabrics.com/ Hancock Fabrics, Inc. and six of its affiliates, retailer of fabric, sewing and accessories, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10296 to 16-10302) on Feb. 2, 2016. Dennis Lyons, the senior vice president and chief administrative officer, signed the petitions. Judge Brendan Linehan Shannon is assigned to the jointly administered cases. The Debtors have engaged O'Melveny & Myers LLP as general counsel, Richards, Layton & Finger, P.A., as local counsel, Clear Thinking Group LLC as financial advisor, Retail Consulting Services, Inc. d/b/a Real Estate Advisors as real estate advisors and Kurtzman Carson Consultants, LLC as claims and noticing agent. The Debtors disclosed total assets of $151.4 million and total debts of $182.1 million. The Debtors owe its trade vendors approximately $21.2 million as of Jan. 31, 2016. HASHFAST TECHNOLOGIES: Feb. 19 Hearing on Bitcoin as Currency ------------------------------------------------------------- Stan Higgins at CoinDesk.com reported that a California bankruptcy court is set to weigh in on whether bitcoin must be considered a currency. The hearing, set for Feb. 19, follows months of legal wrangling between the trustee of bankrupt bitcoin mining firm HashFast and Marc Lowe, a former promoter for the service who operated under the handle 'CypherDoc'. Trustee Michael Kasolas filed suit against Mr. Lowe in February of last year, seeking to recoup 3,000 bitcoins that had been paid by HashFast to Lowe for promoting the service, including a series of posts on the Bitcoin Talk forum. The trustees alleged that Mr. Lowe was an insider who received preferential treatment from the firm, including the awarding of a refund while other customers were awaiting theirs, prior to HashFast's bankruptcy. In a Jan. 22 filing, the trustees asked for a summary judgment requiring that Mr. Lowe return the 3,000 bitcoins, as well as - perhaps more importantly - a determination that bitcoin is a commodity rather than a currency. By doing so, the court would essentially require that Mr. Lowe pay back the 3,000 BTC at today's rate rather than the value, in dollar terms, when he received it in September 2013. Mr. Lowe asked the court to reject the trustee's claim that the bitcoin transfers were fraudulent in nature. About HashFast Technologies San Francisco, California-based HashFast Technologies LLC, a startup Bitcoin miner manufacturer-turned-chipmaker. Baker Hostetler LLP filed on behalf of Koi Systems, UBE Enterprises, Timothy Lam, Edward Hammond, and Grant Pederson, an involuntary Chapter 7 bankruptcy petition against HashFast Technologies (Bankr. N.D. Cal. Case No. 14-30725) on May 9, 2014. HEALTH DIAGNOSTIC: Creditors to Vote on Liquidation Plan -------------------------------------------------------- Patrick Fitzgerald, writing for Dow Jones' Daily Bankruptcy Review, reported that a bankruptcy judge said Health Diagnostic Laboratory Inc.'s creditors can vote on the Virginia laboratory's chapter 11 liquidation plan. According to the report, Judge Kevin R. Huennekens of the U.S. Bankruptcy Court in Richmond, Va., on Feb. 12 approved the Health Diagnostic's disclosure statement describing the company's plan to pay back creditors. The disclosure document, laying out how much creditors can expect to recover under a chapter 11 plan, must pass muster with the court before creditors can vote on it, the report related. A confirmation hearing to consider approval of the plan is slated for March 29, the report related. About Health Diagnostic Health Diagnostic Laboratory, Inc., Central Medical Laboratory, LLC, and Integrated Health Leaders, LLC, are health care businesses based in Richmond, Virginia. HDL is a blood testing company. Health Diagnostic Laboratory, Inc. (Bankr. E.D. Va. Case No. 15-32919) and affiliates Central Medical Laboratory, LLC (Bankr. E.D. Va. Case No. 15-32920) and Integrated Health Leaders, LLC (Bankr. E.D. Va. Case No. 15-32921) filed separate Chapter 11 bankruptcy petitions on June 7, 2015. The petitions were signed by Martin McGahan, chief restructuring officer. HDL disclosed $96,130,468 in assets and $108,328,110 in liabilities as of the Chapter 11 filing. Justin F. Paget, Esq., Tyler P. Brown, Esq., Jason W. Harbour, Esq., and Henry P. (Toby) Long, III, Esq. at Hunton & Williams LLP serve as the Debtors' bankruptcy counsel. Alvarez & Marsal is the Debtors' financial advisor. Robert S. Westermann, Esq., at Hirshler Fleisher, P.C., serve as the Debtors' conflicts counsel. American Legal Claims Services, LLC, is the Debtors' claims, noticing and balloting agent. Ettin Group, LLC, will market and sell the miscellaneous equipment and other assets. MTS Health Partners, L.P., serves as investment banker. To assist them with their restructuring efforts and to help maximize the value of their estates, the Debtors filed with the Court an application seeking entry of an order authorizing the Debtors to retain Alvarez & Marsal Healthcare Industry Group, LLC ("A&M") to provide the Debtors with a Chief Restructuring Officer and certain additional personnel. Richard Arrowsmith is presently the CRO. The Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. The official committee retained Cooley LLP as its counsel and Protiviti Inc. as its financial advisor. * * * On Oct. 29, 2015, the Court entered an order extending until Jan. 4, 2016, the period during which the Debtors have the exclusive right to propose a Chapter 11 plan, and until March 3, 2016, the exclusive period to solicit acceptances of that plan. On Nov. 5, 2015, the Court entered an order setting Dec. 22, 2015, as the Bar Date for the filing of all proofs of claim. On Jan. 4, 2016, the Debtors filed a proposed Plan of Liquidation and Disclosure Statement. INDALEX INC: Kirkland Wants to Spike Trustee's Malpractice Suit --------------------------------------------------------------- Jody Godoy at Bankruptcy Law360 reported that Kirkland & Ellis LLP sought a quick win in a malpractice suit alleging the practice encouraged Indalex Inc. to issue an ill-advised $76 million dividend that benefited the law firm's partners, telling a Delaware bankruptcy judge on Feb. 8, 2016, that the suit was filed too late. The firm urged U.S. Bankruptcy Judge Laurie Selber Silverstein to grant summary judgment in the case. George L. Miller, trustee for defunct aluminum processor Indalex, contends that partners at the law firm had a conflict of interest because of their investments in funds related to Sun Capital Partners Inc., Indalex’s private equity owner. The Chapter 7 trustee filed an adversary suit against Kirkland & Ellis in 2012 after discovering that Douglas C. Gessner, the firm’s point man for Indalex, and other partners were invested in private equity funds that owned the company when the dividend was handed out in 2007. The trustee is represented by Jesse N. Silverman and Maura Fay McIlvain of Dilworth Paxson LLP. Kirkland is represented by Abraham C. Reich, Peter C. Buckley, Seth A. Niederman and Maura L. Burke of Fox Rothschild LLP. The case is George L. Miller v. Kirkland & Ellis LLP, case number 1:12-ap-50713, in the U.S. Bankruptcy Court for the District of Delaware. About Indalex Holdings Indalex Holdings Corp., a wholly owned subsidiary of Indalex Holdings Finance Inc., through its operating subsidiaries Indalex Inc. and Indalex Ltd., with headquarters in Lincolnshire, Illinois, was the second largest producer of soft alloy extrusion products in North America. Indalex was indirectly controlled by private-equity investor Sun Capital Partners Inc. Indalex Holdings and four affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 09-10982) on March 20, 2009, joining other investments by Sun Capital in bankruptcy. The Debtors tapped Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware as counsel. In July 2009, the Bankruptcy Court authorized Indalex to sell its business to Sapa Holding AB. Sapa paid (i) $90.1 million in cash and for the Debtors' U.S. assets; and (ii) $31.7 million in cash for the Canadian assets. Indalex Holdings Finance changed its name to IH 1, Inc., following the sale. At the behest of the official committee of unsecured creditors, the Bankruptcy Court entered an order converting the Chapter 11 reorganization cases of Indalex Holdings Finance and its units to Chapter 7 liquidation effective as of Oct. 30, 2009. INTERNATIONAL TECHNICAL: Judge Sets March 15, 2016 Claims Bar Date ------------------------------------------------------------------ A federal judge approved the deadline proposed by International Technical Coatings Inc. for filing pre-bankruptcy claims against the company. The order, issued by U.S. Bankruptcy Judge Madeleine Wanslee, gives creditors until March 15, 2016, to file proofs of their claim. This deadline is called a "bar date" because it means that creditors who come forward after that date may be "barred" from ever filing a claim against the company. About International Technical Phoenix, Arizona-based steel wire manufacturer International Technical Coatings, Inc. filed Chapter 11 bankruptcy petition (Bank. D. Ariz. Case No. 15-14709) on Nov. 18, 2015. John Caldwell signed the petition as chairman. The Debtor estimated assets in the range of $50 million to $100 million and liabilities of more than $10 million. Osborn Maledon, P.A. represents the Debtor as counsel. Judge Madeleine C. Wanslee has been assigned the case. ITC has facilities located in Phoenix, Arizona and Columbus, Ohio. The Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. Stinson Leonard Street, LLP represents the committee. JOE'S JEANS: Carl Marks Acted as Investment Banker on Merger ------------------------------------------------------------ Carl Marks Securities LLC acted as investment banker and chief restructuring advisor to denim retailer Joe's Jeans Inc. in the completion of the merger of the Hudson jeans brand and the Robert Graham fashion brand. The combined company has been renamed Differential Brands Group, Inc. ("Differential"). It will remain publicly listed on NASDAQ under the ticker DFBG. This name change highlights the transformation of the Hudson Jeans and Robert Graham businesses into a unified consumer platform, with plans to further grow the new company organically as well as opportunistically via accretive acquisitions of complementary, premium brands. "The successful merger of Hudson Jeans and Robert Graham completes the second of two transactions designed to transform Joe's Jeans and create a platform for growth," said Evan Tomaskovic, CEO of Carl Marks Securities. "We are pleased that our firm's combined investment banking and operating experience, as well as our creative and strategic thinking, has proven to be an asset in driving a positive outcome for a midmarket business needing to reposition itself for the future," said Mark Claster, President of Carl Marks Securities. "We thank the Carl Marks Advisors team for the great work they have done in driving a successful outcome for the Company and our shareholders," added Sam Furrow, Chairman of the Board and Interim Chief Executive Officer at Joe's Jeans Inc. "Their strategic advice and transactional experience were key contributor to our efforts." Akin Gump Strauss Hauer & Feld LLP acted as legal counsel to Joe's Jeans, with a team led by Russell W. Parks Jr. and Erica D. McGrady. About Carl Marks Securities Carl Marks Securities LLC, the broker-dealer affiliate of Carl Marks Advisor Group LLC -- http://www.carlmarksadvisors.com-- provides financial advisory services related to private placement of debt and equity capital. Serving middle market companies, we provide a broad range of capital market alternatives as they seek financing for growth, mergers or acquisitions, restructurings or other purposes. Carl Marks Securities LLC is a member FINRA and SIPC. About Joe's Jeans Joe's Jeans Inc. -- http://www.joesjeans.com/-- designs, produces and sells apparel and apparel-related products to the retail and premium markets under the Joe's(R) brand and related trademarks. As of Aug. 31, 2015, the Company had $172 million in total assets, $149 million in total liabilities and $22.6 million in total stockholders' equity. In its audit report on the consolidated financial statements for the year ended Nov. 30, 2014, Moss Adams LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has a net working capital deficiency due to debt covenant violations and has suffered recurring losses from operations. The Company reported a net loss of $27.7 million on $189 million of net sales for the fiscal year ended Nov. 30, 2014, compared with a net loss of $7.31 million on $140 million of net sales in 2013. LIQUID HOLDINGS: Wants Case Converted to Chapter 7 Liquidation -------------------------------------------------------------- BankruptcyData reported that Liquid Holdings Group filed with the U.S. Bankruptcy court a motion to convert the Chapter 11 reorganization cases to liquidation under Chapter 7. The Debtors said it lack sufficient liquidity to make pursuit of a sale or liquidating plan an appropriate exercise. In addition, despite extensive prepetition marketing, no party has committed to serve as a stalking horse bidder in a sale process. If the Chapter 11 cases are not converted, the Debtors believe that they will be unable to continue to pay administrative expenses as they come due. The Court scheduled a Feb. 29, 2016, hearing to consider the conversion motion, with objections due by Feb. 22. About Liquid Holdings Group Liquid Holdings Group, Inc. (otc pink:LIQD) -- http://www.liquidholdings.com-- a SaaS provider of investment management solutions for the buy side, on Jan. 28 disclosed that it and its subsidiary Liquid Prime Holdings, LLC, each filed a voluntary petition in the United States Bankruptcy Court for the District of Delaware seeking relief under the provisions of Chapter 11 of the United States Bankruptcy Code. The cases are Liquid Holdings Group, Inc., Case No. 16-10202 (Bankr. D. Del.) and Liquid Prime Holdings, LLC, Case No. 16-10203 (Bankr. D. Del.). The Company's counsel in Chapter 11 is Blank Rome LLP. The Company has engaged Carl Marks Advisory Group, LLC as its bankruptcy financial advisor and SenaHill Advisors, LLC as its investment banker. MAPLE BANK: Chapter 15 Case Summary ----------------------------------- Chapter 15 Petitioner: Dr. Michael C. Frege Chapter 15 Debtor: Maple Bank GmbH Neue Mainzer Strae 2-4 60311 Germany Chapter 15 Case No.: 16-10336 Type of Business: Foreign commercial bank Chapter 15 Petition Date: February 15, 2016 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Chapter 15 Petitioner's David Farrington Yates, Esq. Counsel: DENTONS US LLP 1221 Avenue of the Americas 24th Floor New York, NY 10020 Tel: (212) 768-6700 Fax: (212) 768-6800 Email: farrington.yates@dentons.com Estimated Assets: Unknown Estimated Debts: Unknown MAPLE BANK: Seeking U.S. Recognition of German Proceeding --------------------------------------------------------- Maple Bank GmbH, through Dr. Michael C. Frege, in his capacity as duly appointed insolvency administrator and putative foreign representative, had filed a Chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York seeking recognition in the United States of an insolvency proceeding currently pending in Germany. Germany's Federal Supervisory Authority, Bundesanstalt fur Finanzdienstleistungsaufsicht ("BaFin") filed on Feb. 10, 2016, an application for the opening of insolvency proceedings with the insolvency court at the Frankfurt am Main Lower District Court (Amtsgericht Frankfurt am Main). The Application followed BaFin's issuance on February 6 of a moratorium under Section 46a of the German Banking Act (Kreditwesengesetz), which resulted to Maple Bank's inability to undertake its normal business activities. According to a document filed with the Court, the February 6 Order is the culmination of an investigation by German authorities focusing on selected trading activities by Maple Bank, and certain of its current and former employees, during taxation years 2006 through 2010. The German authorities have alleged that these trading activities violated German tax laws and are seeking to hold Maple Bank liable for alleged tax liabilities of up to EUR392 million. Maple Bank has branches in Toronto, Canada and Den Haag, Netherlands, which are subject to German and local banking regulation (including Canada's Office of the Superintendent of Financial Institutions (OSFI) and the Dutch Imperial Bank (Rijksbank), and operates regulated broker-dealer subsidiaries in London, England; Jersey City, New Jersey, U.S.A. and Toronto, Ontario, Canada. Maple Bank has no offices or employees in the U.S. The Petitioner believes that the German Proceeding can be completed most efficiently if he is entrusted with the administration, realization and distribution of any assets in the U.S. in accordance with the German Proceeding and the German Insolvency Act. As Maple Bank's duly appointed Insolvency Administrator, the Petitioner immediately assumes possession and management of the assets belonging to the insolvency estate pursuant to Section 148 of the German Insolvency Act. The majority of Maple Bank's assets in the U.S. are located in New York. Currently, Maple Bank has a bank account with Deutsche Bank Trust Company in New York, New York that holds cash deposits. Additionally, Maple Bank has a separate United States bank account with BMO Harris Bank N.A. holding cash deposits and is the sole shareholder of United States subsidiaries incorporated under Delaware law. Court document shows that Maple Bank owns assets with a net book value of approximately EUR2.6 billion as of Feb. 10, 2016, of which approximately EUR1.8 billion is located within Germany. Aside from BaFin, Maple Bank has been subject to the regulation and control of the German Federal Reserve Bank and is a member of the Association of German Banks and the Auditing Association of German Banks. The Chapter 15 case is under (Bankr. S.D.N.Y. Case No. 16-10336). Dentons US LLP serves as the Petitioner's counsel. CMS Hasche Sigle acts as the German counsel to the Petitioner. MCCLATCHY CO: Contributes Real Estate to Benefit Pension Plan ------------------------------------------------------------- The McClatchy Company announced that as of close of business Feb. 11, 2016, it has contributed certain company-owned real estate to its qualified defined benefit pension plan. The real estate includes six separate properties, inclusive of certain land and buildings located in Raleigh, NC; Charlotte, NC; Garner, NC; Gulfport, MS; Doral, FL; and Fresno, CA. The properties have been valued by independent appraisals at approximately $47.1 million in total. The company is leasing back the property from its pension plan for 11 years and will pay aggregate annual rent of approximately $3.5 million to the pension plan. The contribution of the property will have no impact on the company's day-to-day operations at its newspapers, office buildings and/or production centers at these locations. The property will be managed by WhiteStar Advisors, LLC, an independent real estate advisory firm engaged by the pension plan. WhiteStar hired independent real estate appraisers to determine the value of the real estate contributed to the plan. As previously discussed, McClatchy expects its required pension contribution under federal law to be nominal in 2016. The aforementioned contribution of real estate is expected to more than satisfy the company's required pension contribution for the year. The final amount of the 2016 contribution is expected to be determined in the third quarter of 2016 when the company's actuaries complete the annual valuation of the pension plan. Pursuant to provisions under its bond indenture governing debt previously issued by Knight Ridder, Inc. (KRI) and assumed by McClatchy in the 2006 acquisition of KRI the company will reduce debt by a minimum of $27.6 million over the next 90 days. "We view this as a win-win transaction for both the pension plan and the company," said Elaine Lintecum, McClatchy's chief financial officer. "Our pension plan will benefit from rental income paid by the company and we expect it to also benefit from price appreciation as these properties hopefully gain in value over time. T he company will, in turn, preserve its cash to repay debt." Lintecum said, "The company will be able to continue to use the facilities for the foreseeable future and will receive a cash tax benefit of approximately $10 million associated with its 2015 tax returns related to the net tax basis of the property contributed." About The McClatchy Company Sacramento, Cal.-based The McClatchy Company (NYSE: MNI) -- http://www.mcclatchy.com/-- is a media company that provides both print and digital news and advertising services. Its operations include 30 daily newspapers, community newspapers, websites, mobile news and advertising, niche publications, direct marketing and direct mail services. Its owned newspapers include, among others, the (Fort Worth) Star-Telegram, The Sacramento Bee, The Kansas City Star, the Miami Herald, The Charlotte Observer, and The (Raleigh) News & Observer. The Company holds interest in digital assets which include CareerBuilder, LLC, Classified Ventures, LLC, HomeFinder, LLC, and Wanderful Media. McClatchy Co reported net income of $374 million on $1.14 billion of net revenues for the year ended Dec. 28, 2014, compared with net income of $18.8 million on $1.21 billion of net revenues for the year ended Dec. 29, 2013. As of Sept. 27, 2015, the Company had $1.95 billion in total assets, $1.74 billion in total liabilities and $202 million in stockholders' equity. * * * McClatchy carries a 'Caa1' corporate family rating from Moody's Investors Service. In May 2011, Moody's changed the rating outlook from stable to positive following the company's announcement that it closed on the sale of land in Miami for $236 million. The outlook change reflects Moody's expectation that McClatchy will utilize the net proceeds to reduce debt, including its underfunded pension position, which will reduce leverage by approximately half a turn and lower required contributions to the pension plan over the next few years. As reported by the TCR on April 2, 2014, Standard & Poor's Ratings Services affirmed all ratings on U.S. newspaper company The McClatchy Co., including the 'B-' corporate credit rating, and revised the rating outlook to stable from positive. The outlook revision to stable reflects S&P's expectation that the timeframe for a potential upgrade lies beyond the next 12 months, and could also depend on the company realizing value from its digital minority interests. MEDIASHIFT INC: Has Until April 27 to Decide on Leases ------------------------------------------------------ U.S. Bankruptcy Judge Sandra Klein has given MediaShift Inc. and Ad-Vantage Networks Inc. until April 27, 2016, to either assume or reject unexpired leases of nonresidential real property. About MediaShift MediaShift, Inc. is a digital advertising technology company. The company, through its subsidiaries offers operators of private internet networks to monetize their audiences through distributed ad technology platforms and across multiple devices. MediaShift, Inc., and Ad-Vantage Networks, Inc., filed Chapter 11 bankruptcy petitions (Bankr. C.D. Cal. Lead Case No. 15-25024) on Sept. 30, 2015. Rick Baran, the president, signed the petitions. The Debtors estimated both assets and liabilities of $10 million to $50 million. The Debtors have engaged Levene, Neale, Bender, Yoo & Brill L.L.P, as counsel. Judge Sandra R. Klein is assigned to the cases. The Office of the U.S. Trustee appointed four creditors to the official committee of unsecured creditors. Danning, Gill, Diamond & Kollitz, LLP represents the committee. MISSION NEW ENERGY: To Release Shares From Voluntary Escrow ----------------------------------------------------------- Mission NewEnergy Limited disclosed that in accordance with Listing Rule 3.10A, 15,000,000 ordinary shares (Escrowed Shares) in the Company will be released from voluntary escrow on Feb. 25, 2016. About Mission NewEnergy Based in Subiaco, Western Australia, Mission NewEnergy Limited is a producer of biodiesel that integrates sustainable biodiesel feedstock cultivation, biodiesel production and wholesale biodiesel distribution focused on the government mandated markets of the United States and Europe. The Company is not operating its biodiesel refining segment. The refineries are being held in care and maintenance either awaiting a return to positive operating conditions or the sale of assets. The Company has materially diminished its Jatropha contract farming operation and the company is now focused on divesting the remaining Indian assets. The Company intends to cease all Indian operations. Mission NewEnergy reported profit of $28.4 million on $7.27 million of total revenue for the year ended June 30, 2015, compared to a loss of $1.09 million on $9.68 million of total revenue for the year ended June 30, 2014. As of June 30, 2015, the Company had $12.6 million in total assets, $5.85 million in total liabilities and $6.76 million in total equity. "Although we incurred an operating profit for the year ended June 30, 2015 of A$28.3 million (2014: A$1.1 million loss), we have a history of net losses and there is a substantial doubt about our ability to continue as a going concern," the Company states in its annual report for the year ended June 30, 2015. MOLYCORP INC: Oaktree Blasts Threat to $514M Bankruptcy Claims -------------------------------------------------------------- Jeff Montgomery at Bankruptcy Law360 reported that with trial approaching Oaktree Capital sought to toss a count from a Molycorp creditors adversary suit that could push the private equity shop's potential $514 million in claims against the mining company to the bottom of a $1.9 billion pile, or disallow them entirely. The move came as Molycorp Inc.'s official unsecured creditors committee continued preparing for a two-part trial, slated to begin in early March in Delaware bankruptcy court, in a suit accusing Oaktree Capital Management LP and affiliated companies of everything from fraud to fiduciary failings in dealing with and lending to the financially ailing Molycorp. Oaktree cited a recent observation in a decision by a New York bankruptcy court that "no court has ever employed equitable disallowance as a sanction." About Molycorp, Inc. Molycorp Inc. -- http://www.molycorp.com/-- is a global rare earths and rare metals producer. Molycorp owns several prominent rare earth processing facilities around the world. It has a workforce of 2,530 employees at locations on three continents. Molycorp's Mountain Pass Rare Earth Facility in San Bernadino County, California, is home to one of the world's largest and richest deposits of rare earths. Molycorp has corporate offices in the United States, Canada and China. CEO Geoffrey R. Bedford, and other senior management members are located in Molycorp's corporate offices in Toronto, Canada. Other senior management members are located at its U.S. corporate headquarters in Greenwood Village, Colorado. Molycorp reported a net loss of $623 million in 2014, a net loss of $377 million in 2013 and a net loss of $475 million in 2012. As of March 31, 2015, the Company had $2.49 billion in total assets, $1.78 billion in total liabilities and $709 million in total stockholders' equity. Molycorp and its North American subsidiaries, together with certain of its non-operating subsidiaries outside of North America, filed Chapter 11 voluntary petitions in Delaware (Bankr. D. Del. Lead Case No. 15-11357) on June 25, 2015, after reaching agreement with a group of lenders on a financial restructuring. The Chapter 11 cases of Molycorp and 20 affiliated debts are pending before Judge Christopher S. Sontchi. The agreement provides for a financial restructuring of the Company's $1.7 billion in debt and provides up to $225 million in gross proceeds in new financing to support operations while the Company completes negotiations with creditors. The Company's operations outside of North America, with the exception of non-operating companies in Luxembourg and Barbados, are excluded from the filings. Molycorp Rare Metals (Oklahoma), LLC, with operations in Quapaw, Oklahoma, also is excluded from the filings as it is not 100% owned by the Company. Molycorp is being advised by the investment banking firm of Miller Buckfire & Co. and is receiving financial advice from AlixPartners, LLP. Jones Day and Young, Conaway, Stargatt & Taylor LLP act as legal counsel to the Company in this process. Prime Clerk serves as claims and noticing agent. Secured creditor Oaktree Capital Management L.P., consented to the use of cash collateral and to extend postpetition financing. On July 8, 2015, the U.S. trustee overseeing the Chapter 11 case of Molycorp Inc. appointed eight creditors of the company to serve on the official committee of unsecured creditor NATIONAL CINEMEDIA: Stephens Inv. Holds 5% Stake as of Dec. 31 -------------------------------------------------------------- In a Schedule 13G filed with the Securities and Exchange Commission, Stephens Investment Management Group, LLC, et al., disclosed that as of Dec. 31, 2015, they beneficially own 3,079,541 shares of common stock of National CineMedia, Inc. representing 5 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/ixNF86 About National CineMedia National CineMedia, Inc., is the holding company of National CineMedia, LLC. NCM LLC operates the largest digital in-theatre network in North America, allowing NCM to distribute advertising, Fathom entertainment programming events and corporate events under long-term exhibitor services agreements with American Multi-Cinema Inc., a wholly owned subsidiary of AMC Entertainment Inc.; Regal Cinemas, Inc., a wholly owned subsidiary of Regal Entertainment Group; and Cinemark USA, Inc., a wholly owned subsidiary of Cinemark Holdings, Inc. NCM LLC also provides such services to certain third-party theater circuits under "network affiliate" agreements, which expire at various dates. As of Oct. 1, 2015, the Company had $1 billion in total assets, $1.23 billion in total liabilities and a $228 million total deficit. * * * As reported by the TCR on March 24, 2011, Standard & Poor's Ratings Services raised its corporate credit ratings on Centennial, Colorado-based National CineMedia Inc. and operating subsidiary National CineMedia LLC (which S&P analyzes on a consolidated basis) to 'BB-' from 'B+'. "The 'BB-' corporate credit rating reflects S&P's expectation that NCM's EBITDA growth will enable the company to continue to de-lever over the intermediate term despite its aggressive dividend policy," said Standard & Poor's credit analyst Jeanne Shoesmith. NEW BEGINNINGS: Jeffersonville Nursing Home to Close in March ------------------------------------------------------------- The Jeffersonville Healthcare & Rehab, which is owned by New Beginnings Care, is scheduled to close in March, several employees tell 13wmaz.com. According to 13wmaz.com, the closure comes after an inspection found "serious deficiencies" and after a federal agency pulled Medicare and Medicaid funding. 13wmaz.com says on Jan. 13, according to court documents, state inspectors visited the Jeffersonville nursing home. The report says the inspectors found health and safety violations that put patients at risk. An administrator at Jeffersonville Healthcare & Rehab referred questions to Terry Walker, spokesman for New Beginnings Care, a Tennessee company. New Beginnings Healthcare & Rehab, LLC and several affiliated entities filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tenn. Case Nos. 16-10272 to 16-10273; 16-10275 to 16-10280; and 16-10282 to 16-10287) on January 22, 2016. The Hon. Nicholas W. Whittenburg presides over the cases. David J. Fulton, Esq., at Scarborough & Fulton, serves as counsel to the Debtors. New Beginnings estimated under $50,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Debbie Jones, member. A Consolidated list of the Debtors' 30 largest unsecured creditors is available for free at http://bankrupt.com/misc/tneb16-10272.pdf NORANDA ALUMINUM: Jamaica Unit Said to Be In Takeover Talks ----------------------------------------------------------- Alphea Saunders, senior staff reporter at Jamaica Observer, reports that sources have confirmed that Noranda Bauxite Limited (NBL) is in negotiations with a Chinese firm to take over its 49% share in its beleaguered mining operations in St Ann. The Jamaican Government owns 51% of the assets of Noranda Bauxite Partners which is managed and run by NBL. According to the Observer's source, "A major announcement is in the offing". That source also hinted that the aim of this unidentified Chinese firm is to make massive investments not just in NBL's 49% share, but the bauxite alumina industry as a whole. The report also noted that the Chapter 11 bankruptcy filing of NBL's parent company, Noranda Aluminum Holding Corporation (NAHC), has stirred concerns about the future of Noranda's local operations which has been in trouble for some time now. The NAHC has, however, assured that it will continue production in St Ann in partnership with the Jamaican Government. The Observer further reported that Jamaica's Mining and Energy Minister Phillip Paulwell was scheduled to meet with Noranda's management and unions representing the workers to discuss the job cuts. Since January 13, positions have been made redundant at NBL's Discovery Bay plant. About Noranda Aluminum Noranda Aluminum Holding Corporation is an integrated producer of primary aluminum and high-quality rolled aluminum coils. The Company has two businesses: an Upstream Business and a Downstream Business. The Upstream Business consists of a smelter near New Madrid, Missouri, referred to as "New Madrid," and supporting operations at a bauxite mining operation ("St. Ann") and an alumina refinery ("Gramercy"). The Downstream, or Flat-Rolled Products Business is one of the largest aluminum foil producers in North America, and consists of four rolling mill facilities. Headquartered in New Madrid, Missouri, Noranda Aluminum, Inc., et al., engaged in the production of primary aluminum and rolled aluminum coils, filed separate Chapter 11 bankruptcy petitions (Bankr. E.D. Mo. Proposed Lead Case No. 16-10083) on Feb. 8, 2016. The petitions were signed by Dale W. Boyles, the chief financial officer. Judge Barry S. Schermer is assigned to the case. The Debtors had approximately 1,857 employees as of the Petition Date. The Debtors estimated both assets and liabilities in the range of $1 billion to $10 billion. As of the Petition Date, the Debtors had approximately $529.6 million in outstanding principal amount of secured indebtedness, consisting of a revolving credit facility and a term loan facility. The Debtors have engaged Paul, Weiss, Rifkind, Wharton & Garrison LLP as general counsel, Carmody MacDonald P.C. as local counsel, PJT Partners, LP as investment banker, Alvarez & Marsal North America, LLC as restructuring advisors and Prime Clerk LLC as claims, solicitation and balloting agent. NORTH ALABAMA SCIENCE CENTER: Museum Misses 2 Lease Payments ------------------------------------------------------------ Paul Gattis, writing for AL.com, reports that Disraeli LLC -- the company that held the lease on the Sci-Quest museum -- said in bankruptcy court filings that the not-for-profit museum in west Huntsville, Alabama, is past due on its January and February post-petition lease payments. U.S. Bankruptcy Judge Clifton Jessup, who presides over Sci-Quest's Chapter 11 proceedings, set a hearing on the bankruptcy for March 7, 2016. According to AL.com, the museum's website is offline and its phone service appeared to have been disconnected. Its Facebook page appears to have been removed as well. The doors were locked at the museum on Feb. 16. North Alabama Science Center, Inc., dba Sci-Quest, filed for Chapter 11 protection (Bankr. N.D. Ala. Case No. 14-83200) on Nov. 20, 2014, estimating under $1 million in both assets and debts. A copy of the petition is available at no extra charge at http://bankrupt.com/misc/alnb14-83200.pdf Sci-Quest is represented by Tazewell Shepard, Esq., at Tazewell Shepard, P.C. NORTHERN FRONTIER: Gets Extension of Temporary Waiver From Lenders ------------------------------------------------------------------ Northern Frontier Corp. on Feb. 16 disclosed that it has received an extension of its previously announced temporary waiver from its lenders of certain financial covenants under its credit facilities for the period ended December 31, 2015. Management has negotiated a Waiver of the previously announced anticipated breaches from its Lenders. The Waiver terms include: -- 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 March 31, 2016. The Waiver is conditional on, among other items, Northern Frontier entering into amended 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 additional 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. The Corporation's common shares and common share purchase warrants are listed on the TSX Venture Exchange under the trading symbol "FFF" and "FFF.WT.A", respectively. OSAGE EXPLORATION: Feb. 25 Final Hearing on $1.4MM Apollo DIP Loan ------------------------------------------------------------------ Osage Exploration and Development, Inc., sought and obtained interim authority from Judge Sarah A. Hall of the U.S. Bankruptcy Court for the Western District of Oklahoma to obtain postpetition loans and other extensions of credit from Apollo Investment Corporation or one or more of its affiliates in an amount not to exceed $1,400,000, The DIP Lender has agreed to make available $400,000 of the DIP financing upon entry of the interim order. The judge conducted an interim hearing on the DIP Financing Motion on Feb. 9, 2016. A final hearing on the Financing Motion will take place on Feb. 25 at 9:30 a.m. Objections to entry of the Final Order are due Feb. 19. These pleadings were filed on February 8, 2016, in response to the Financing Motion: -- Comments by the United States Trustee (Charles Snyder); -- Limited Joint Objection by Blake Arnold Working Interest Oil & Gas Properties, L.L.C., Claude C. Arnold Working Interest Oil & Gas Properties, L.L.C. and R. Scott Thompson Enterprises, LLC; -- Joinder In Limited Objection by Manor Oaks, LLC; -- Joinder In Limited Objection by CMO Energy Partners II, LP; -- Objection by Weatherford U.S., L.P., Weatherford Artificial Lift Systems, LLC, and Precision Energy Services, Inc.; -- Joinder In Limited Objection by CFE Partners LLC and Joinder In Limited Objection by Endico, Inc. In the Interim Order, the Court said all objections are overruled except to the extent the objections are addressed in the Interim Order. A copy of the Interim Order granting the DIP Financing is available for free at: http://bankrupt.com/misc/Osage_E_72_Int_Loan_Order.pdf Terms of DIP Facility The DIP facility from Apollo Investment Corporation will mature on the earlier of: (i) April 25, 2016, (ii) the effective date of a chapter 11 plan with respect to the Bankruptcy Case, (iii) the sale of all or a substantial part of the assets of the Debtor and its subsidiaries, which, for the avoidance of doubt, shall include any sale of any oil and/or gas well operated by the Debtor, and (iv) the date that the Loans shall become due and payable in full or pursuant to the DIP Order, whether by acceleration or otherwise. The DIP loans will have interest rate of 8% per annum, payable in arrears at the end of every calendar month at maturity. There is a default rate of 2% per annum in excess of the interest rate otherwise payable. The Debtor agrees to pay fees of 2% of the principal amount of the DIP Facility, payable on the date of the applicable funding and 2% of the total amount advanced under the DIP Facility payable upon maturity. Osage Exploration also seeks to use cash collateral. The Lender has consented to the Debtor's use of cash collateral subject to funding and budget limitations. Use of cash collateral will terminate on April 25, 2016. The parties have agreed to a 13-week budget. The Debtor is already indebted to Apollo pursuant to a Credit Agreement dated April 27, 2012. The Lender holds a valid, enforceable, and allowable claim against the Debtor, as of the Petition Date, in an aggregate amount of at least $25,000,000 of unpaid principal, plus any and all accrued and unpaid interest, fees, costs, expenses, charges, and other claims. The parties agree that the Debtor will conduct a comprehensive marketing and sale process of its assets and businesses. Attorneys for the Debtor: Mark A. Craige, Esq. Michael R. Pacewicz, Esq. CROWE & DUNLEVY 500 Kennedy Building 321 South Boston Avenue Tulsa, OK 74103-3313 Tel: 918-592-9800 Fax: 918-592-9801 E-mail: mark.craige@crowedunlevy.com michael.pacewicz@crowedunlevy.com About Osage Exploration Based in San Diego, California with production offices in Oklahoma City, Oklahoma, and executive offices in Bogota, Colombia, Osage Exploration and Development, Inc. (OTC BB: OEDV) -- http://www.osageexploration.com/-- is an independent exploration and production company with interests in oil and gas wells and prospects in the US and Colombia. Osage Exploration filed a Chapter 11 petition (Bankr. W.D. Okla. Case No. 16-10308) on Feb. 3, 2016, to pursue a sale of substantially all assets. The Debtor estimated assets and debt of $10 million to $50 million. The Debtor tapped Crowe & Dunlevy as counsel. PARAGON OFFSHORE: Taps KCC as Claims and Noticing Agent ------------------------------------------------------- Paragon Offshore plc and its affiliated debtors seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Kurtzman Carson Consultants LLC as their claims and noticing agent nunc pro tunc to the Petition Date, with full responsibility for the distribution of notices and the maintenance, processing, and docketing of proofs of claim filed in their Chapter 11 cases. The Debtors anticipate that by appointing KCC, the distribution of notices and the processing of claims will be expedited, and the office of the Clerk of the Bankruptcy Court for the District of Delaware will be relieved of the administrative burden of processing what may be an overwhelming number of claims. KCC's currently hourly rates are: Position Hourly Rate -------- ----------- Executive Vice President Waived Director/Senior Managing Consultant $180 Consultant/Senior Consultant $75-$165 Technology/Programming Consultant $35-$70 Clerical $30-$50 Solicitation Lead/Securities Director $215 Securities Senior Consultant $200 The Debtors request that the undisputed fees and expenses incurred by KCC in the performance of the Claims and Noticing Services in accordance with the terms of the Services Agreement be treated as administrative expenses of their Chapter 11 estates and be paid in the ordinary course of business without further application to or order of the Court. Prior to the Petition Date, the Debtors provided KCC a retainer in the amount of $40,000, to be held by KCC during these Chapter 11 cases as security for the Debtors' payment obligations under the Services Agreement. Following termination of the Services Agreement, KCC will return to the Debtors any unused portion of the retainer. Under the terms of the Services Agreement, the Debtors have agreed to indemnify, defend and hold harmless KCC and its affiliates, members, directors, officers, employees, consultants, subcontractors and agents under certain circumstances specified in the Services Agreement, except in circumstances resulting solely from KCC's gross negligence or willful misconduct or as otherwise provided in the Services Agreement or any order authorizing the employment and retention of KCC. KCC represented that it is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b). About Paragon Offshore Paragon Offshore plc -- http://www.paragonoffshore.com/-- is a global provider of offshore drilling rigs. Paragon's operated fleet includes 34 jackups, including two high specification heavy duty/harsh environment jackups, and six floaters (four drillships and two semisubmersibles). Paragon's primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world. Paragon's principal executive offices are located in Houston, Texas. Paragon is a public limited company registered in England and Wales and its ordinary shares have been trading on the over-the-counter markets under the trading symbol "PGNPF" since December 18, 2015. Paragon Offshore Plc, et al., filed separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10385 to 16-10410) on Feb. 14, 2016, after reaching a deal with lenders on a reorganization plan that would eliminate $1.1 billion in debt. The petitions were signed by Randall D. Stilley as authorized representative. Judge Christopher S. Sontchi is assigned to the cases. The Debtors reported total assets of $2.47 billion and total debts of $2.96 billion as of Sept. 30, 2015. The Debtors have engaged Weil, Gotshal & Manges LLP as general counsel, Richards, Layton & Finger, P.A. as local counsel, Lazard Freres & Co. LLC as financial advisor, Alixpartners, LLP as restructuring advisor, and Kurtzman Carson Consultants as claims and noticing agent. PENNGOOD LLC: Case Summary & 16 Unsecured Creditors --------------------------------------------------- Debtor: Penngood LLC dba Penn Good and Associates LLP 1015 18th Street. NW #600 Washington, DC 20036 Case No.: 16-00051 Chapter 11 Petition Date: February 15, 2016 Court: United States Bankruptcy Court District of Columbia (Washington, D.C.) Debtor's Counsel: Richard G. Hall, Esq. RICHARD G. HALL 7369 McWhorter Place, Suite 412 Annandale, VA 22003 Tel: (703) 256-7159 Email: richard@rghalllaw.us Total Assets: $1.85 million Total Liabilities: $4.42 million Largest unsecured creditor: BET Viacom, $1,792,317 The petition was signed by Clyde H. Penn Jr., owner. A list of the Debtor's 16 largest unsecured creditors is available for free at http://bankrupt.com/misc/dcb16-00051.pdf PHOTOMEDEX INC: Stonepine No Longer a Shareholder as of Dec. 31 --------------------------------------------------------------- In an amended Schedule 13G filed with the Securities and Exchange Commission, Stonepine Capital, L.P., Stonepine Capital Management, LLC, Jon M. Plexico and Timothy P. Lynch disclosed that as of Dec. 31, 2015, they ceased to beneficially own shares of common stock of PhotoMedex, Inc. A copy of the regulatory filing is available for free at http://is.gd/swki9T About PhotoMedex PhotoMedex, Inc., is a global health products and services company providing integrated disease management and aesthetic solutions to dermatologists, professional aestheticians, ophthalmologists, optometrists, consumers and patients. The Company provides proprietary products and services that address skin conditions including psoriasis, vitiligo, acne, actinic keratosis, photo damage and unwanted hair, as well as fixed-site laser vision correction services at our LasikPlus(R) vision centers. PhotoMedex and its subsidiaries has entered into a second amended and restated forbearance agreement with the lenders that are parties to the credit agreement dated May 12, 2014, and with JP Morgan Chase, as administrative agent for the Lenders pursuant to which the Lender have agreed to forbear from exercising their rights and remedies with respect to certain events of default from Aug. 25, 2014, until April 1, 2016, or earlier if an event of default occurs, according to a document filed with the Securities and Exchange Commission in March 2015. As of June 30, 2015, the Company had $67.7 million in total assets, $23.9 million in total liabilities and $43.8 million in total stockholders' equity. Bankruptcy Warning "If, in the future, PhotoMedex is required to obtain similar forbearance agreements as a result of our inability to meet the terms of the credit agreement, there can be no assurance that those forbearance agreements will be available on commercially reasonable terms or at all. If, as or when required, we are unable to repay, refinance or restructure our indebtedness under those credit facilities, or amend the covenants contained therein, the lenders could elect to terminate their commitments under the credit facilities and institute foreclosure proceedings against our assets. Under such circumstances, we could be forced into bankruptcy or liquidation. In addition, any additional events of default or declaration of acceleration under one of those facilities or the forbearance agreement could also result in an event of default under one or more of these agreements. Such a declaration would have a material adverse impact on our liquidity, financial position and results of operations," the Company stated in its 2014 annual report. PICO HOLDINGS: PICO Revises Revocation Solicitation --------------------------------------------------- By Geoffrey J. Bailey -- gjbaileypb@hotmail.com -- PICO Holdings, Inc. (Nasdaq:PICO), based in La Jolla, Calif., is a diversified holding company reporting recurring losses since 2008. PICO owns 57% of UCP, Inc. (NYSE:UCP), 100% of Vidler Water Company, Inc., a securities portfolio and various interests in small businesses. Central Square Management LLC and River Road Asset Management LLC collectively own more than 14% of PICO and have agitated for governance and financial changes. Sean Leder owns 1% of PICO shares and seeks shareholder authorization to call a Special Meeting to remove and replace five directors. Other activists at http://ReformPICONow.com/have taken to the Internet to advance the shareholder cause. In a PRER14A Revocation Solicitation Statement filed with the Securities and Exchange Commission on February 16, 2016, PICO attempts to convince shareholders to file a Blue Card to revoke authorization for Mr. Leder's Special Meeting. PICO makes five arguments. First, the Consent Solicitation is unnecessary because PICO practices open and honest communication with shareholders. Second, Mr. Leder lacks director and executive experience. Third, Qualstar, on whose Board Mr. Leder serves as a Director, has performed poorly when measured by stock price performance. Fourth, PICO has taken measures to create shareholder value as per its change in business plan, appointment of 3 new directors and stated intent to return capital to shareholders. Last, Mr. Leder will bill shareholders for any eventual proxy victory. Activist bloggers at www.reformpiconow.com are unimpressed. They note that up until Mr. Leder filed his Consent Statement, PICO was dismissive of shareholders and had sought only entrenchment. Mr. Leder has considerable real estate and deal experience, and has run a successful family office for over 20 years. Qualstar's poor market performance was not Mr. Leder's fault, as the company was disadvantaged in many ways, long before Mr. Leder arrived. The bloggers disparage PICO's director appointments, especially Eric Speron, whom they note had served on no boards previously and lacks the experience and credentials appropriate for directorship. Finally, the activist bloggers charge PICO with deception regarding Mr. Leder's future request for expense reimbursement. They note that Mr. Leder's campaign will cost $250,000 while existing PICO management has destroyed over half a billion dollars. Mr. Leder's request will absorb less than a penny per share. Mr. Leder spends his own money, while PICO seeks no reimbursement because it currently spends shareholder money. The bloggers encourage PICO shareholders to vote Mr. Leder's White Request Card, and to throw any and all documentation from PICO in the trash. PUERTO RICO: House of Reps Passes Bill to Restructure $9BB in Debt ------------------------------------------------------------------ Mary Williams Walsh, writing for The New York Times' DealBook, reported that a plan to restructure about $9 billion of Puerto Rico's debt, hailed as a model for the rest of the island's debt-laden government, moved toward the desk of Gov. Alejandro Garcia Padilla to be signed into law, after winning approval by Puerto Rico's House of Representatives. According to the report, the Puerto Rico Senate, which approved a similar bill last week, was still working to iron out differences between the two bills. The restructuring deal was set to expire at midnight on Feb. 16 if not signed by the governor, but a person with knowledge of the proceedings who spoke on the condition of anonymity, said the lawmakers were within striking distance of agreement and the creditors were not inclined to enforce the deadline. QUANTUM FUEL: Capital Ventures No Longer A Shareholder at Dec. 31 ----------------------------------------------------------------- In an amended Schedule 13G filed with the Securities and Exchange Commission, Capital Ventures International and Heights Capital Management, Inc. disclosed that as of Dec. 31, 2015, they ceased to beneficially own shares of common stock of Quantum Fuel Systems Technologies Worldwide, Inc. A copy of the regulatory filing is available for free at http://is.gd/Uhlmft About Quantum Fuel Lake Forest, Cal.-based Quantum Fuel Systems Technologies Worldwide, Inc. (Nasdaq: QTWW) develops and produces advanced vehicle propulsion systems, fuel storage technologies, and alternative fuel vehicles. Quantum's portfolio of technologies includes electronic and software controls, hybrid electric drive systems, natural gas and hydrogen storage and metering systems and other alternative fuel technologies and solutions that enable fuel efficient, low emission, natural gas, hybrid, plug-in hybrid electric and fuel cell vehicles. Quantum Fuel reported a net loss of $14.9 million in 2014, a net loss attributable to stockholders of $23.0 million in 2013, a net loss attributable to stockholders of $30.9 million in 2012 and a net loss attributable to common stockholders of $38.5 million in 2011. As of Sept. 30, 2015, the Company had $67.5 million in total assets, $45.5 million in total liabilities and $22.0 million in total stockholders' equity. QUANTUM MATERIALS: Weaver and Tidwell Raises Going Concern Doubt ---------------------------------------------------------------- Weaver and Tidwell, L.L.P., in an October 13, 2015 report addressed to the board of directors and stockholders of Quantum Materials Corp., expressed substantial doubt about the company's ability to continue as a going concern. The firm audited the consolidated balance sheets of the company as of June 30, 2015 and 2014, and the related consolidated statements of operations, stockholders' equity (deficit), and cash flows for each of the years in the two-year period ended June 30, 2015. Weaver and Tidwell related that the company has suffered recurring losses from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern. Quantum Materials President and Principal Executive Officer Stephen Squires disclosed in a February 2, 2016 regulatory filing with the U.S. Securities and Exchange Commission, "The company recorded losses from continuing operations in the current period presented and has a history of losses. The ability of the company to continue as a going concern is dependent upon its ability to reverse negative operating trends, obtain revenues from operations, raise additional capital, and/or obtain debt financing. "Management has revised its business strategy to include expansion into other lines of business. In conjunction with the anticipated new revenue streams, management is currently negotiating new debt and equity financing, the proceeds from which would be used to settle outstanding debts at more favorable terms, to finance operations, and to develop its business plans. However, there can be no assurance that the company will be able to raise capital, obtain debt financing, or improve operating results sufficiently to continue as a going concern." At June 30, 2015, the company had total assets of $1,929,635, total liabilities of $1,200,662, and total stockholders' equity of $728,973. For the year ended June 30, 2015, the company posted a net loss of $2,002,009 as compared with a net loss of $5,302,487 for the year ended June 30, 2014. A full-text copy of the company's annual report, as amended, is available for free at: http://tinyurl.com/jmwbada Quantum Materials Corp. and its wholly owned subsidiary, Solterra Renewable Technologies, Inc. (collectively referred to as the company) are headquartered in San Marcos, Texas. The company specializes in the design, development, production and supply of quantum dots, including tetrapod quantum dots, a high performance variant of quantum dots, and highly uniform nanoparticles, using its patented automated continuous flow production process. SABINE OIL: BoNY Protests Kirkland's Impartiality in Claims Probe ----------------------------------------------------------------- Jonathan Randles at Bankruptcy Law360 reported that a representative for certain Sabine Oil & Gas Corp. noteholders challenged Kirkland & Ellis LLP's impartiality with regard to the firm's role advising an investigation into potential legal claims over the company's ill-fated tie-up with Forest Oil during a mini-trial on Feb. 8, 2016, in New York bankruptcy court. Akin Gump Strauss Hauer & Feld LLP partner Daniel Golden, who is representing The Bank of New York Mellon Trust Co. in its role as trustee for certain Sabine legacy unsecured notes, noted of Kirkland's dual roles in the bankruptcy influenced the outcome of an investigation into possible legal claims over the merger. Kirkland and other attorneys aligned with Sabine denied the accusation and said the examination was impartial. Kirkland represented Sabine in its Chapter 11 case. Kirkland also advised a special committee formed prior to the company’s bankruptcy filing that was tasked with examining legal claims that various creditor groups could file related to the 2014 Forest Oil merger. About Sabine Oil & Gas Corporation Sabine Oil & Gas Corp. is an independent energy company engaged in the acquisition, production, exploration, and development of onshore oil and natural gas properties in the U.S. The Company's current operations are principally located in the Cotton Valley Sand and Haynesville Shale in East Texas, the Eagle Ford Shale in South Texas, the Granite Wash in the Texas Panhandle, and the North Louisiana Haynesville. The Company operates, or has joint working interests in, approximately 2,100 oil and gas production sites (approximately 1,800 operating and approximately 315 non-operating) and has approximately 165 full-time employees. Sabine Oil and its affiliated entities sought Chapter 11 Protection (Bankr. S.D.N.Y. Lead Case No. 15-11835) in Manhattan on July 15, 2015. The Debtors have engaged Kirkland & Ellis LLP and Kirkland & Ellis International LLP, as counsel; Lazard Freres & Co. LLC, as investment banker and Prime Clerk LLC as notice, claims and balloting agent. The Debtors also tapped Zolfo Cooper Management, LLC, to provide Jonathan A. Mitchell as CRO and other additional personnel. The U.S. Trustee for Region 2 appointed five creditors to serve on the official committee of unsecured creditors. The Committee tapped Mark R. Somerstein, Esq., Keith H. Wofford, Esq., and D. Ross Martin, Esq., at Ropes & Gray LLP as counsel. The Committee also retained Blackstone Advisory Partners L.P. as investment banker; and Berkeley Research Group, LLC as financial advisor. SAMSON RESOURCES: Kirkland Bid to Collect Fee Fight Costs Denied ---------------------------------------------------------------- Carmen Germaine at Bankruptcy Law360 reported that a Delaware bankruptcy judge on Feb. 8, 2016, refused to allow Kirkland & Ellis LLP and Klehr Harrison Harvey Branzburg LLP to seek reimbursement from Samson Resources Corp. for any expenses from defending their fees, noting a recent Delaware decision blocked similar cost requests. U.S. Bankruptcy Judge Christopher S. Sontchi sent a letter to attorneys from Kirkland and Klehr Harrison saying he wouldn't approve provisions in oil and gas company Samson's applications to retain the firms that would allow them to seek reimbursement of any expenses they incur defending their fees from legal challenges. About Samson Resources Samson Resources Corporation, et al., filed Chapter 11 bankruptcy petitions (D. Del. Lead Case No. 15-11934) on Sept. 16, 2015. Philip W. Cook signed the petition as executive vice president and chief financial officer. The Debtors estimated assets and liabilities of more than $1 billion. Samson is an onshore oil and gas exploration and production company with interests in various oil and gas leases primarily located in Colorado, Louisiana, North Dakota, Oklahoma, Texas, and Wyoming. The Operating Companies operate, or have royalty or working interests in, approximately 8,700 oil and gas production sites. Samson was acquired by KKR and Crestview from Charles Schusterman in December 2011 for approximately $7.2 billion. The investor group provided approximately $4.1 billion in equity investments as part of the purchase price. Kirkland & Ellis LLP represents the Debtors as general counsel. Klehr Harrison Harvey Branzburg LLP is the Debtors' local counsel. Alvarez & Marsal LLC acts as the Debtors' financial advisor. Blackstone Advisory Partners L.P. serves as the Debtors' Investment banker. Garden City Group, LLC serves as claims and noticing agent to the Debtors. Andrew Vara, acting U.S. trustee for Region 3, appointed three creditors of Samson Resources Corp. and its affiliated debtors to serve on the official committee of unsecured creditors. The Committee has tapped White & Case LLP as counsel and Farnan LLP as local counsel. SCIO DIAMOND: Incurs $1.26 Million Net Loss in Third Quarter ------------------------------------------------------------ Scio Diamond Technology Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.26 million on $125,677 of revenue for the three months ended Dec. 31, 2015, compared to a net loss of $1.31 million on $109,358 of revenue for the same period in 2014. For the nine months ended Dec. 31, 2015, the Company reported a net loss of $2.94 million on $534,144 of revenue compared to a net loss of $3.07 million on $667,672 of revenue for the nine months ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had $10.71 million in total assets, $3.62 million in total liabilities and $7.08 million in total shareholders' equity. "The Company has generated little revenue to date and consequently its operations are subject to all risks inherent in the establishment and commercial launch of a new business enterprise. The Company continues to develop its diamond technology while operating its factory to maximize revenue. The Company experienced a process water leak in our facility in mid-December 2015 causing damage to our diamond growers and a temporary interruption in production. The factory was operating again within a number of days, and is currently operating in excess of 80% of capacity. The delay in resuming full production capacity is due to the lead time on the ordering of certain parts, and full operations may not resume until the end of February 2016. The shutdown had a significant negative impact on revenue for December 2015 and January 2016 and delays the Company's attainment of its near-term business objectives. The Company is working with its insurance carrier to cover the expense related to the production shutdown and the cost of the business interruption," according to the the Quarterly Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/nxDUEy About Scio Diamond Scio Diamond Technology Corporation was incorporated under the laws of the State of Nevada as Krossbow Holding Corp. on Sept. 17, 2009. The Company's focus is on man-made diamond technology development and commercialization. SFX ENTERTAINMENT: March 4 Final Hearing on DIP Financing Approval ------------------------------------------------------------------ BankruptcyData reported that the U.S. Bankruptcy Court approved, on an interim basis (amended), SFX Entertainment's debtor-in-possession financing. The Court scheduled a March 4, 2016 final hearing on the financing motion. The proposed DIP Facility consists of a new money senior secured priming superpriority multiple-drawn term loan facility in an aggregate maximum principal amount not to exceed $30 million and Tranche B DIP Loans in an amount not to exceed $57.6 million. Jeff Montgomery at Bankruptcy Law360 reported that SFX Entertainment scrambled through a revised Chapter 11 funding agreement on Feb. 9, 2016, in Delaware federal court, after creditors in the Netherlands moved against a subsidiary there before the company could complete its interim financing deals. According to Law360, the emergency Chapter 11 hearing trimmed the company's regular debtor-in-possession financing to $87.6 million from a $115 million total previously approved, while assigning a portion of the original amount to a foreign lender. About SFX Entertainment Headquartered in New York, New York, SFX Entertainment, with approximately $312 million in pro-forma revenues, is a producer of live events and media and entertainment content focused exclusively on electronic music culture. SFX Entertainment, Inc., and 43 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10238 to 16-10281) on Feb. 1, 2016. The petitions were signed by Michael Katzenstein as chief restructuring officer. The Debtors disclosed total assets of $661.6 million and total debts of $490.2 million. Greenberg Traurig, LLP serves as the Debtors' counsel. Kurtzman Carson Consultants LLC acts as the Debtors' claims and noticing agent. Judge Mary F. Walrath is assigned to the case. SIGA TECHNOLOGIES: Amended Plan Filed; April 5 Hearing Set ---------------------------------------------------------- BankruptcyData reported that SIGA Technologies filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan and related Disclosure Statement. The Court scheduled a confirmation hearing on April 5, 2016, with objections due by March 15, 2016. The Debtor has said that the Plan, which is supported by the Official Committee of Unsecured Creditors, will enable SIGA to emerge from chapter 11 and to continue the litigation of its dispute with PharmAthene, Inc., without posting a bond or other security, until that litigation is finally determined. According to BankruptcyData, the Plan, as amended, provides: * Each holder of an Allowed General Unsecured Claim will receive Cash in an amount equal to the Claim up to $5,000,000, plus postpetition interest at the Postpetition Interest Rate accrued from the Commencement Date to the Effective Date. * The PharmAthene Claim will be deemed allowed to the extent of $5,000,000 on the Effective Date, if not otherwise allowed in a greater amount on such date. The only potential holder of an Allowed General Unsecured Claim in excess of $5,000,000 is PharmAthene. * PharmAthene will receive in respect of the portion, if any, of the PharmAthene Allowed Claim in excess of $5,000,000, in full settlement and satisfaction of such Claim, the following: (i) treatment with one of the following options: (A) Option 1: Payment in full in Cash of the unpaid balance of the PharmAthene Allowed Claim. Option 1 will only be available if the PharmAthene Final Order provides for a single lump sum payment, together with any interest, fees and expenses included in such PharmAthene Final Order, to be paid to PharmAthene (a 'Lump Sum Payment Award'); (B) Option 2: Treatment of the PharmAthene Allowed Claim pursuant to and in compliance with the provisions of the PharmAthene Final Order if, and only if, such order provides for something other than a single lump sum payment (plus any interest, fees and expenses included in such PharmAthene Final Order) to be paid to PharmAthene (or an award of specific performance) (an 'Alternative Award')." 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. STANDARD REGISTER: Court Spares Directors Over Ch. 11 Claims ------------------------------------------------------------ Matt Chiappardi at Bankruptcy Law360 reported that a Delaware bankruptcy judge on Feb. 8, 2016, threw out adversary claims from the Standard Register Co. estate liquidating trust that directors played a role in tanking the company by approving the prepetition merger with debt-ridden rival WorkflowOne LLC, but will allow the trustee a second swing at their bonus compensation. During a hearing in Wilmington, U.S. Bankruptcy Judge Brendan L. Shannon said the trustee hadn't presented any facts to show that directors of document manager Standard Register were not acting within the best interests of the company. About Standard Register Standard Register provided 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 had operations in all U.S. states and Puerto Rico, and had 3,500 full-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. * * * Assets of Standard Register and its affiliates were sold to Taylor Corp., a privately held company. The sale to Taylor closed on July 31, 2015. SRC Liquidation Company, f/k/a The Standard Register Company, and its affiliated debtors on Nov. 19, 2015, won confirmation of their Second Amended Chapter 11 Plan of Liquidation. The Effective Date of the Plan occurred on Dec. 18, 2015. The Plan proposes to pay 1% of the allowed claims of general unsecured creditors. STELLAR BIOTECHNOLOGIES: Echavarria Reports 17% Stake as of Dec. 31 ------------------------------------------------------------------- In an amended Schedule 13G filed with the Securities and Exchange Commission, Ernesto Echavarria disclosed that as of Dec. 31, 2015, it beneficially owns 1,461,310 (1,411,310 common shares and 50,000 warrants) of Stellar Biotechnologies Inc. representing 17.19%, assuming exercise of the 50,000 warrants. A copy of the regulatory filing is available at http://is.gd/zEoXtH About Stellar Port Hueneme, Cal.-based Stellar Biotechnologies, Inc.'s business is to commercially produce and market Keyhole Limpet Hemocyanin ("KLH") as well as to develop new technology related to culture and production of KLH and subunit KLH ("suKLH") formulations. The Company markets KLH and suKLH formulations to customers in the United States and Europe. KLH is used extensively as a carrier protein in the production of antibodies for research, biotechnology and therapeutic applications. Stellar Biotechnologies reported a net loss of $8.43 million for the year ended Aug. 31, 2014, a net loss of $14.5 million for the year ended Aug. 31, 2013, and a net loss of $5.52 million for the year ended Aug. 31, 2012. Stellar Biotechnologies reported a net loss of $2.84 million on $758,689 of revenues for the year ended Sept. 30, 2015. As of Dec. 31, 2015, the Company had $10.35 million in total assets, $723,675 in total liabilities and $9.63 million in total shareholders' equity. SUNDEVIL POWER: Proposes May 2 Auction for All Assets ----------------------------------------------------- Sundevil Power Holdings, LLC and SPH Holdco LLC seek authority from the Bankruptcy Court to establish bidding procedures to be employed in connection with the proposed sale of substantially all of their assets. The Debtors also seek permission to enter into one or more asset purchase agreements with one or more potential "stalking horse" bidders and to provide certain bid protections to any Stalking Horse Bidder. According to the Debtors, the Bid Procedures are designed to maximize value for their estates and will enable them to review, analyze, and compare all bids received to determine which bid is in the best interests of their estates and creditors. The Bid Procedures describe, among other things, the procedures for parties to access due diligence, the manner in which bidders and bids become "qualified," the receipt of bids received, the conduct of any auction, the selection and approval of any ultimately successful bidders, and the deadlines with respect to the foregoing Bid Procedures. A Potential Bidder who desires to be a Qualified Bidder must deliver the Required Bid Documents so as to be received not later than 12:00 p.m. (Eastern Time) on April 29, 2016, to the Financial Advisor, 520 Madison Avenue, 7 th Floor, New York, New York 10022 (Attn: Kevin Phillips (kphillips@jefferies.com) and Richard Morgner (rmorgner@jefferies.com)) with copies to Drinker Biddle & Reath, LLP, 222 Delaware Avenue, Suite 1400, Wilmington, Delaware 19801 (Attn: Steven Kortanek (Steven.Kortanek@dbr.com) and Howard A. Cohen (Howard.Cohen@dbr.com)), Vinson & Elkins LLP, 666 Fifth Avenue, 26 th Floor, New York, New York 10103-0040 (Attn: David S. Meyer (dmeyer@velaw.com)) and Vinson & Elkins LLP, Trammell Crow Center, 2001 Ross Avenue, Suite 3700, Dallas, Texas 75201-2975 (Attn: Paul E. Heath (pheath@velaw.com)). If the Debtors execute any asset purchase agreement with any Stalking Horse Bidder, the Debtors may, upon the consent of the DIP Lenders, provide such Stalking Horse Bidders with a breakup fee in an amount to be negotiated by the Debtors in their discretion, based on the totality of the circumstances, including, without limitation, the purchase price and other terms and conditions of the Asset Purchase Agreement, but in no event more than three percent of the cash portion of the purchase price, payable only from the proceeds of an alternative sale transaction, and satisfied as a super-priority administrative expense, and subject to customary conditions and limitations. In the event that the Debtors timely receive at least one Qualified Bid with respect to the Assets, the Debtors will conduct an auction. The Auction will be in accordance with the Bid Procedures and upon notice to all Qualified Bidders who have submitted Qualified Bids. The Auction will be conducted at the offices of Vinson & Elkins LLP, 666 Fifth Avenue, 26 th Floor, New York, New York 10103-0040 on May 2, 2016, at 10:00 a.m. (Eastern Time). The DIP Agent, the DIP Lenders, the Prepetition Agent and the Prepetition Lender will be entitled to credit bid some or all of their indebtedness at the Auction pursuant to Section 363(k) of the Bankruptcy Code. To incentivize potential bidders and thereby maximize the potential value of the Assets, the Debtors request that they be authorized, upon their receipt of any bid that the Debtors deem to be acceptable in an exercise of their sound business judgment, to designate one or more Qualified Bids as a stalking horse bid and to execute an Asset Purchase Agreement with such Stalking Horse Bidder in connection with the proposed sale of the Assets, at any time before the commencement of the Auction. No bid may be a Stalking Horse Bid if it does not constitute a Qualified Bid. Additionally, the Debtors, as part of the Sale, may assume and assign Assumed Contracts and Assumed Leases. About Sundevil Power Merchant power generators Sundevil Power Holdings, LLC and SPH Holdco LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case Nos. 16-10369 and 16-10370, respectively), on Feb. 12, 2016. The petitions were signed by Blake M. Carlson as authorized signatory. The Debtors estimated assets in the range of $100 million to $500 million and liabilities of at least $100 million. The Debtors have engaged Vinson & Elkins LLP as legal counsel, Drinker Biddle & Reath LLP as Delaware counsel, and Garden City Group as claims and noticing agent. Judge Kevin J. Carey is assigned to the case. TGHI INC: Former Targus Parents File Prepackaged Liquidating Plan ----------------------------------------------------------------- Parent THI, Inc. (f/k/a Targus Holdings, Inc.) and TGHI, Inc. (f/k/a Targus Group Holdings, Inc.) filed a Prepackaged Plan of Liquidation that lets TGHI's general unsecured creditors recover 11% to 13% of their allowed claims. The general unsecured creditors are owed $8.32 million, according to court filings. Pursuant to a Transaction Support Agreement dated May 21, 2015, signed with majority of the lenders under the Debtors' $185 million prepetition secured term loan facility, Holdings agreed to release 100% of the stock of operating company Targus Group International, Inc. ("TGII") in favor of the $185 Million Facility Lenders. The Prepetition $185 Million Facility Requisite Majority Lenders agreed to, among other things: (i) fund $500,000 for the administration of these bankruptcy cases through confirmation and $200,000 for the post- confirmation wind-down and administration of the Debtors' estates -- the Funded Amount; and (ii) facilitate (and cause the Prepetition $185 Million Facility Lenders to ensure through subordination) the payment of the Transaction Consideration to Holdings. The parties later entered into an amendment to the Transaction Support Agreement, pursuant to which the parties agreed to liquidate and settle the amount of the Transaction Consideration at: (i) $750,000 to be funded to Holdings after the consummation of a publicly-noticed asset foreclosure sale process -- whereby the Prepetition $185 Million Facility Lenders submitted the highest bid and became the new owners of certain of the assets of TGII, and (ii) any unused portion of the $700,000 Funded Amount. As part of the Amendment, the Prepetition $185 Million Facility Lenders agreed to waive and release all of their claims against Holdings on account of Holding's guarantee of the Prepetition $185 Million Facility, and as a result, the Prepetition $185 Million Facility Lenders have no remaining claims against the Debtors in the Chapter 11 Cases. In accordance with the Transaction Support Agreement and the Amendment, the Debtors and the parties have negotiated the terms of a chapter 11 plan that provides for a recovery to unsecured creditors of Holdings that, based upon Holdings' insolvency, would otherwise be unavailable absent the settlement regarding the Transaction Consideration. The key components of the Plan are: * Holders of the Allowed Prepetition $20 Million Facility Claims, owed $21,019,178, will allocate their distribution on account of any claims they hold against Holdings under the applicable debt documents (secured or unsecured) to holders of General Unsecured Claims against Holdings. The holders of $20 Million Facility Claims are slated to have a 0% recovery. * As a result of the allocation of distributions by the lenders under the Prepetition $20 Million Facility, holders of Allowed General Unsecured Claims against Holdings will receive their pro rata share of the Fixed Transaction Consideration Payment and any other Distributable Holdings Assets. Only those Holders of General Unsecured Claims against Holdings that vote in favor of the Plan will receive their pro rata share of the Residual Funded Amount. The holders of general unsecured claims against Holdings, estimated at $8,323,999, are slated to have an 11% to 13% recovery. * Holders of general unsecured claims against Parent, estimated at $52,733,223, will each receive a pro rata share of assets of Parent available for distribution -- Distributable Parent Assets -- if any. However, there are no projected Distributable Parent Assets. The class is deemed to reject the Plan and will have a 0% recovery. * Payment in full, in cash, of all Allowed Administrative Claims, statutory fees, and, to the extent applicable, Priority Tax Claims, Other Priority Claims and Other Secured Claims against Holdings. * Equity Interests in Holdings will be cancelled and Parent will not receive any distribution on account of those Equity Interests. Because the Debtors believe that Parent has no other assets or distributable value, no creditors of Parent, including General Unsecured Claims against Parent are projected to receive any distribution on account of their claims. As a result, the Debtors are not soliciting votes on the Plan from holders of General Unsecured Claims against Parent. * Equity Interests in Parent will be cancelled on the Effective Date and will receive no distribution on account of those Equity Interests. Pursuant to the Transaction Support Agreement, the Plan has the support of (i) 100% of the Prepetition $20 Million Facility Lenders, (ii) a majority of the holders of the Holdings PIK Notes, which notes represent all of the unsecured claims against Holdings, and (iii) pursuant to the direction of a majority of the holders of the Holdings PIK Notes, the Administrative Agent for the Holdings PIK Notes. A copy of the Disclosure Statement filed Feb. 9, 2016, is available for free at: http://bankrupt.com/misc/TGHI_Inc_7_Disc_Statement.pdf The Debtors' attorneys: Tracy L. Klestadt, Esq. Joseph Corneau, Esq. KLESTADT WINTERS JURELLER SOUTHARD & STEVENS, LLP 200 West 41st Street, 17th Floor New York, NY 10036 Tel: (212) 972-3000 Fax: (212) 972-2245 E-mail: jcorneau@klestadt.com tklestadt@klestadt.com The Prepetition $20 Million Facility Lenders' attorneys: Brett Lawrence, Esq. Jayme Goldstein, Esq. Daniel Ginsberg, Esq. STROOCK & STROOCK & LAVAN LLP 180 Maiden Lane New York, NY 10038-4982 Tel: 212-806-5422 E-mail: blawrence@stroock.com jgoldstein@stroock.com dginsberg@stroock.com The Prepetition $20 Million Facility Agent can be reached through Wilmington Trust, National Association's Jeffery Rose -- jrose@wilmingtontrust.com The Prepetition $20 Million Facility Agent's attorneys: Alan Glantz, Esq. KAYE SCHOLER LLP 250 West 55th Street New York, NY 10019-9710 Tel: 212 836 8000 E-mail: alan.glantz@kayescholer.com The PIK Note Administrative Agent: LAW DEBENTURE TRUST COMPANY OF NEW YORK Attn: Frank Godino Thomas Musarra E-mail: frank.godino@lawdeb.com Thomas.musarra@lawdeb.com The PIK Note Administrative Agent's attorneys: Steven Reisman, Esq. Joshua Geller, Esq. James Drew, Esq. CURTIS, MALLET-PREVOST, COLT & MOSLE, LLP 101 Park Avenue New York, NY 10178-0061 Tel: 212 696 6000 Fax: 1 212 697 1559 E-mail: sreisman@curtis.com jgeller@curtis.com jdrew@curtis.com About TGHI, Inc. TGHI, Inc. and Parent THI, Inc. filed petitions under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case Nos. 16-10300 and 16-10301, respectively) on Feb. 9, 2016, to effectuate a wind down and dissolution of their estates. The Debtors were the former direct or indirect holding companies of Targus Group International, Inc. and its operating subsidiaries -- which are now unaffiliated with the Debtors and are not "Debtors" in the Chapter 11 Cases -- and were a leading global supplier of carrying cases and accessory products for the mobile lifestyle. TGII and its operating subsidiaries were a global supplier of carrying cases and accessory products for the mobile lifestyle. The Parent owns 100% of the equity interests in Holdings. Holdings owned 100% of the equity interests in TGII prior to the Oct. 30, 2015 transaction. After various events of default commencing in December 2014 under each of the operative senior secured revolving loan and term loan credit facilities, the Debtors obtained various forbearances. Pursuant to a Transaction Support Agreement dated May 21, 2015 with holders of a prepetition $185 million credit facility, the Debtors agreed to release the common stock into escrow and a marketing process for a sale or refinancing transaction was commenced. The marketing process, however, failed to yield a result that would repay a meaningful portion of the debt facilities. On Oct. 30, 2015, 100% of the stock of TGII was released to an entity controlled by the $185 Million Facility Lenders in exchange for an agreement to fund the administration of the Debtors' Chapter 11 cases and the wind-down of the Debtors, and provide a "transaction consideration" for the benefit of Holdings' creditors. TGHI, Inc. estimated assets in the range of $1 million to $10 million and liabilities of $10 million to $50 million. Parent THI, Inc. estimated assets of $0 to $50,000 and liabilities of $50 million to $100 million. Judge Michael E. Wiles is assigned to the cases. The Debtors have engaged Klestadt Winters Jureller Southard & Stevens, LLP as counsel and Kurtzman Carson Consultants LLC as claims, noticing agent and administrative agent. The Debtors also tapped Kramer Levin Naftalis & Frankel LLP's Adam C. Rogoff, Esq. -- arogoff@kramerlevin.com -- and Anupama Yerramalli, Esq. -- ayerramalli@kramerlevin.com -- as special counsel. * * * On Feb. 11, 2016, the Court entered an order establishing a March 18, 2016 general claims bar date, and an Aug. 8, 2016 governmental claims bar date. TGHI INC: To Seek Confirmation of Liquidating Plan on April 1 ------------------------------------------------------------- At the behest of Parent THI, Inc. (f/k/a Targus Holdings, Inc.) and TGHI, Inc. (f/k/a Targus Group Holdings, Inc.), Judge Michael E. Wiles on Feb. 11 agreed to set a combined hearing to consider confirmation of the Debtors' Prepackaged Liquidating Plan and approval of the explanatory Disclosure Statement. With the solicitation of Plan votes done prior to the bankruptcy filing, the Debtors sought and obtained a Court order providing that: * The Combined Hearing -- at which time the Court will consider, among other things, the Solicitation Procedures, the adequacy of the Disclosure Statement and confirmation of the Prepack Plan -- will commence at 11:00 a.m., (prevailing New York time) on April 1, 2016, which date may be continued from time to time without further notice other than adjournments announced in open court. * Any objections to the Solicitation Procedures, Disclosure Statement or confirmation of the Prepack Plan must be filed, together with proof of service, with the Court and served so as to be actually received by March 22, 2016 at 4:00 p.m. (prevailing New York time), unless otherwise agreed to by the Debtors in their sole discretion. The Reply Deadline is March 28, 2016. The Debtors are seeking approval of solicitation procedures used in connection with the prepetition solicitation of the Prepack Plan. The Debtors set a voting record date of Feb. 1, 2016, distributed solicitation packages Feb. 3, 2016, and set a Feb. 5, 2016 voting deadline. As a result of the solicitation, holders of (a) 100% of the Prepetition $20 Million Facility Claims (Class 3) entitled to vote on the Prepack Plan and (b) 100% of the General Unsecured Claims Against Holdings (Class 5) entitled to vote on the Prepack Plan voted to accept the Prepack Plan. Specifically, as of the Voting Deadline, the Debtors had received votes to accept the Prepack Plan from 100% of the holders of Class 3 Prepetition $20 Million Facility Claims entitled to vote, and votes from 15 of 17 of the holders (88%) of Class 5 General Unsecured Claims against Holdings, representing $4,885,000 of the $5,000,000 (97.7%) of the dollar amount of claims in such class. The Debtors extended the Voting Deadline for two holders of Class 5 General Unsecured Claims against Holdings through Feb. 8, 2016, and received and accepted ballots from such holders on Feb. 8, 2016. As a result, all creditors entitled to vote have voted to accept the Prepack Plan. Votes of holders of Other Priority Claims (Class 1) and Other Secured Claims (Class 2) were not solicited because their respective claims are unimpaired under the Prepack Plan and as a result, such holders are conclusively presumed to accept the Prepack Plan pursuant to section 1126(f) of the Bankruptcy Code. Votes of holders of General Unsecured Claims against Parent (Class 4), Intercompany Claims (Class 6), Equity Interests in Holdings (Class 7) and Equity Interests in Parent (Class 8) were not solicited because such holders will not receive or retain any property under the Prepack Plan, and as a result, such holders are deemed to reject the Prepack Plan pursuant to section 1126(g) of the Bankruptcy Code. About TGHI, Inc. TGHI, Inc. and Parent THI, Inc. filed petitions under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case Nos. 16-10300 and 16-10301, respectively) on Feb. 9, 2016, to effectuate a wind down and dissolution of their estates. The Debtors were the former direct or indirect holding companies of Targus Group International, Inc. and its operating subsidiaries -- which are now unaffiliated with the Debtors and are not "Debtors" in the Chapter 11 Cases -- and were a leading global supplier of carrying cases and accessory products for the mobile lifestyle. TGII and its operating subsidiaries were a global supplier of carrying cases and accessory products for the mobile lifestyle. The Parent owns 100% of the equity interests in Holdings. Holdings owned 100% of the equity interests in TGII prior to the Oct. 30, 2015 transaction. After various events of default commencing in December 2014 under each of the operative senior secured revolving loan and term loan credit facilities, the Debtors obtained various forbearances. Pursuant to a Transaction Support Agreement dated May 21, 2015 with holders of a prepetition $185 million credit facility, the Debtors agreed to release the common stock into escrow and a marketing process for a sale or refinancing transaction was commenced. The marketing process, however, failed to yield a result that would repay a meaningful portion of the debt facilities. On Oct. 30, 2015, 100% of the stock of TGII was released to an entity controlled by the $185 Million Facility Lenders in exchange for an agreement to fund the administration of the Debtors' Chapter 11 cases and the wind-down of the Debtors, and provide a "transaction consideration" for the benefit of Holdings' creditors. TGHI, Inc. estimated assets in the range of $1 million to $10 million and liabilities of $10 million to $50 million. Parent THI, Inc. estimated assets of $0 to $50,000 and liabilities of $50 million to $100 million. Judge Michael E. Wiles is assigned to the cases. The Debtors have engaged Klestadt Winters Jureller Southard & Stevens, LLP as counsel and Kurtzman Carson Consultants LLC as claims, noticing agent and administrative agent. The Debtors also tapped Kramer Levin Naftalis & Frankel LLP's Adam C. Rogoff, Esq. -- arogoff@kramerlevin.com -- and Anupama Yerramalli, Esq. -- ayerramalli@kramerlevin.com -- as special counsel. * * * On Feb. 11, 2016, the Court entered an order establishing a March 18, 2016 general claims bar date, and an Aug. 8, 2016 governmental claims bar date. TRAVELPORT WORLDWIDE: Amalgamated Gadget Stake at 0.91% at Dec. 31 ------------------------------------------------------------------ In an amended Schedule 13G filed with the Securities and Exchange Commission, Amalgamated Gadget, L.P. disclosed that as of Dec. 31, 2015, it beneficially owns 1,125,960 shares of common stock of Travelport Worldwide Limited representing 0.91 percent of the shares outstanding. The Shares are held by Amalgamated for and on behalf of three funds, R2 Investments, LDC and its two wholly owned subsidiaries, R2 Top Hat, Ltd. and Q5-R5 Trading, Ltd., pursuant to an Investment Management Agreement. Pursuant to that agreement, Amalgamated has sole voting and dispositive power of those shares and those three funds have no beneficial ownership of those shares. A copy of the regulatory filing is available for free at: http://is.gd/hn8ttu About Travelport Worldwide Travelport Worldwide Limited is a travel commerce platform providing distribution, technology, payment and other solutions for the global travel and tourism industry. As of Sept. 30, 2015, the Company had $2.93 billion in total assets, $3.29 billion in total liabilities and a $359 million total deficit. * * * As reported by the TCR in March 2015, Standard & Poor's Ratings Services raised to 'B' from 'B-' its long-term corporate credit rating on U.K.-based travel services provider Travelport Worldwide Ltd. The rating action reflects Travelport's good operating performance in 2014. TRAVELPORT WORLDWIDE: FMR LLC Reports 14.9% Stake ------------------------------------------------- FMR LLC and Abigail P. Johnson disclosed in an amended 13G filed with the Securities and Exchange Commission on Feb. 12, 2016, that they beneficially own 18,525,533 shares of common stock of Travelport Worldwide Ltd. representing 14.999 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/ABK4bZ About Travelport Worldwide Travelport Worldwide Limited is a travel commerce platform providing distribution, technology, payment and other solutions for the global travel and tourism industry. As of Sept. 30, 2015, the Company had $2.93 billion in total assets, $3.29 billion in total liabilities and a $359 million total deficit. * * * As reported by the TCR in March 2015, Standard & Poor's Ratings Services raised to 'B' from 'B-' its long-term corporate credit rating on U.K.-based travel services provider Travelport Worldwide Ltd. The rating action reflects Travelport's good operating performance in 2014. TRAVELPORT WORLDWIDE: Solus Reports 5.5% Stake as of Dec. 31 ------------------------------------------------------------ In an amended Schedule 13G filed with the Securities and Exchange Commission, Solus Alternative Asset Management LP, Solus GP LLC, and Mr. Christopher Pucillo disclosed that as of Dec. 31, 2015, they beneficially own 6,843,799 shares of common stock of Travelport Worldwide Limited representing 5.54 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/naeB1v About Travelport Worldwide Travelport Worldwide Limited is a travel commerce platform providing distribution, technology, payment and other solutions for the global travel and tourism industry. As of Sept. 30, 2015, the Company had $2.93 billion in total assets, $3.29 billion in total liabilities and a $359 million total deficit. * * * As reported by the TCR in March 2015, Standard & Poor's Ratings Services raised to 'B' from 'B-' its long-term corporate credit rating on U.K.-based travel services provider Travelport Worldwide Ltd. The rating action reflects Travelport's good operating performance in 2014. WAFERGEN BIO-SYSTEMS: CVI Investments Reports 4.9% Stake at Dec. 31 ------------------------------------------------------------------- In an amended Schedule 13G filed with the Securities and Exchange Commission, CVI Investments, Inc. and Heights Capital Management, Inc. disclosed that as of Dec. 31, 2015, they beneficially own 759,275 shares of common stock of WaferGen Bio-systems, Inc., representing 4.9 percent of the shares outstanding. The Shares reported as beneficially owned are issuable upon the exercise of a warrant to purchase Shares. The warrant is not exercisable to the extent that the total number of Shares then beneficially owned by a Reporting Person and its affiliates and any other persons whose beneficial ownership of Shares would be aggregated with such Reporting Person for purposes of Section 13(d) of the Exchange Act, would exceed 4.99%. A copy of the regulatory filing is available at: http://is.gd/GTIFoA About WaferGen Bio-systems Fremont, California-based WaferGen Bio-systems, Inc., engages in the development of systems for gene expression quantification, genotyping and stem cell research. Since 2008, the Company's primary focus has been on the development, manufacture and marketing of its SmartChip System, a genetic analysis platform used for profiling and validating molecular biomarkers in the life sciences and pharmaceutical drug discovery industries. WaferGen Bio-systems reported a net loss of $10.7 million in 2014, a net loss of $16.3 million in 2013 and a net loss of $8.97 million in 2012. As of Sept. 30, 2015, the Company had $10.65 million in total assets, $7.66 million in total liabilities and $2.99 million in total stockholders' equity. WALTER ENERGY: Wants Formation, Funding of Retiree's VEBA Approved ------------------------------------------------------------------ BankruptcyData reported that Walter Energy, the United Mine Workers of America (the MWA) and Coal Acquisition (buyer) filed with the U.S. Bankruptcy Court a joint motion for entry of an order authorizing and approving the formation and funding of a Walter Retirees' VEBA (volunteer employee benefits association). The Debtor said the UMWA and Buyer have engaged in negotiations with respect to an initial collective bargaining agreement. On Feb. 4, 2016, the UMWA and the buyer executed an agreement (the 'Buyer CBA'), subject to ratification by the UMWA Employees and the closing of the sale. The ratification vote with respect to the Buyer CBA is scheduled for Feb. 16, 2016. Assuming that the Buyer CBA is ratified, the UMWA will withdraw all of the appeals filed by the UMWA, subject to the closing of the sale. The buyer CBA contemplates the formation and funding of the Walter Retirees' VEBA for the benefit of eligible UMWA Retirees. Assuming ratification of the buyer CBA occurs, and the closing of the sale, the UMWA and buyer have engaged in negotiations with respect to an initial collective bargaining agreement. On Feb. 4, 2016, the UMWA and the buyer executed an agreement (the 'Buyer CBA'), subject to ratification by the UMWA Employees and the closing of the sale. The ratification vote with respect to the Buyer CBA is scheduled for Feb. 16, 2016. Assuming that the Buyer CBA is ratified, the UMWA will withdraw all of the appeals filed by the UMWA, subject to the closing of the sale. The Buyer CBA contemplates the formation and funding of the Walter Retirees' VEBA for the benefit of eligible UMWA Retirees." The parties also filed a separate motion seeking an expedited Feb. 17, 2016 hearing to consider the VEBA motion. About Walter Energy Walter Energy -- http://www.walterenergy.com/-- is a publicly traded "pure-play" metallurgical coal producer for the global steel industry with strategic access to steel producers in Europe, Asia and South America. The Company also produces thermal coal, anthracite, metallurgical coke and coal bed methane gas. Walter Energy employs approximately 2,700 employees, with operations in the United States, Canada and the United Kingdom. For the year ended Dec. 31, 2014, the Company reported a net loss of $471 million following a net loss of $359 million in 2013. Walter Energy, Inc., and its affiliates sought Chapter 11 protection (Bankr. N.D. Ala. Lead Case No. 15-02741) in Birmingham, Alabama on July 15, 2015, after signing a restructuring support agreement with first-lien lenders. Walter Energy disclosed total assets of $5.2 billion and total debt of $5 billion as of March 31, 2015. The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison as counsel; Bradley Arant Boult Cummings LLP, as co-counsel; Ogletree Deakins LLP, as labor and employment counsel; Maynard, Cooper & Gale, P.C., as special counsel; Blackstone Advisory Services, L.P., as investment banker; AlixPartners, LLP, as financial advisor, and Kurtzman Carson Consultants LLC, as claims and noticing agent. The Bankruptcy Administrator for the Northern District of Alabama appointed an Official Committee of Unsecured Creditors and an Official Committee of Retirees. The Creditors Committee tapped Morrison & Foerster LLP and Christian & Small LLP as attorneys. The Retiree Committee retained Adams & Reese LLP and Jenner & Block LLP as attorneys. The informal group of certain unaffiliated First Lien Lenders and First Lien Noteholders (the "Steering Committee") retained Akin, Gump, Strauss, Hauer and Feld LLP as legal advisor, and Lazard Freres & Co. LLC as financial advisor. WARREN RESOURCES: Warns of Possible Bankruptcy If Deal Fails ------------------------------------------------------------ Jonathan Randles at Bankruptcy Law360 reported that Denver-based oil and gas producer Warren Resources said on Feb. 9, 2016, that it will file for bankruptcy if it can't strike an out-of-court restructuring deal with creditors that hold approximately $453 million in outstanding debt, saying it will need financial concessions in order to survive a weak energy market. In light of the company's financial difficulties, Warren said it will not expand drilling operations in the next year and estimates that its overall gas production will decline by approximately 20 percent for 2016. In a separate report, Amrutha Gayathri at Reuters said that Warren, which on Feb. 9, 2016, also cut its 2016 revenue and production forecasts, had deferred a $7.5 million semi-annual interest payment that was due on Feb. 1 to reach a deal with its creditors. The company has a 30-day grace period for negotiations with noteholders, since deferring interest payment on Feb. 1. Several oil producers, whose cash flows have been squeezed by a 70 percent fall in oil prices since June 2014, are in talks with creditors to defer payments and improve liquidity. "These are very difficult times for Warren and its industry peers," Chief Executive James Watt said in a statement, adding that the company needed further concessions from debt holders and vendors to survive a prolonged downturn in oil prices. Warren, which has tapped Jefferies LLC to help with a potential restructuring, forecast total revenue to fall 31.7 percent to $61.1 million in 2016, from a year earlier. The company said it expects oil production to fall about 18 percent and natural gas production to decline about 20 percent this year. Warren's first lien creditors held $235 million in principal, second lien creditors $51 million and investors $167 million in unsecured senior notes, as of Dec. 31. The company had $26.8 million in cash at the end of 2015, Warren said on Feb. 9. * * * As reported in the Troubled Company Reporter on Feb. 3, 2016, Standard & Poor's Ratings Services lowered its corporate credit on oil and gas exploration and production company Warren Resources Inc. to 'D' from 'SD' (selective default). The issue-level rating on the company's unsecured debt remains 'D'. The recovery rating remains '6', indicating S&P's expectation of negligible (0%-10%) recovery in the event of a payment default. The 'D' ratings reflect Warren Resources Inc.'s announcement that it has missed a $7.5 million interest payment on its outstanding $300 million 9% notes ($167 million outstanding) due 2022, and S&P's belief that the company will not make this payment before the 30-day grace period ends. S&P believes that the default will be a general default and the company will fail to pay all or substantially all of its obligations as they come due. WORLD MARKETING: AFS Wants Associated Bank to Disgorge $600,000 --------------------------------------------------------------- Associated Bank, National Association, was the target of a complaint filed January 11, 2016, in the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division, in connection with the In re: World Marketing Chicago, LLC, et al Chapter 11 bankruptcy proceeding, the bank's holding company, Associated Banc-Corp, disclosed in its Form 10-K Report filed with the Securities and Exchange Commission on February 5, 2016, for the fiscal year ended December 31, 2015. In the complaint, American Funds Service Company v. Associated Bank, N.A., the plaintiff alleges that approximately $600,000 of funds it had advanced to the World Marketing entities to apply towards future postage fees was swept by the Bank from World Marketing's bank accounts. Plaintiff seeks the return of such funds from the Bank under several theories, including Sec. 541(d) of the Bankruptcy Code, the creation of a resulting trust, and unjust enrichment. The Bank intends to vigorously defend this lawsuit. It is not possible for management to assess the probability of a material adverse outcome or reasonably estimate the amount of any potential loss at this time with respect to these two lawsuits. Headquartered in Milwaukee, Wisconsin, World Marketing Chicago, LLC, offers marketing consulting and mailing services. World Marketing Chicago, LLC (Bankr. N.D. Ill. Case No. 15-32968), and affiliates World Marketing Atlanta, LLC (Bankr. N.D. Ill. Case No. 15-32975) and World Marketing Dallas, LLC (Bankr. N.D. Ill. Case No. 15-32977) filed for Chapter 11 bankruptcy protection on Sept. 28, 2015, each estimating their assets and liabilities at between $1 million and $10 million. The petitions were signed by Robert W. Kraft, the authorized individual. The cases are jointly administered. Judge Timothy A. Barnes presides over the cases. Jeffrey C Dan, Esq., at Crane Heyman Simon Wlch & Clar serves as the Debtors' bankruptcy counsel. The Official Committee of Unsecured Creditors appointed in the case are represented by: Elizabeth Vandesteeg, Esq. Aaron L. Hammer, Esq. Sugar Felsenthal Grais & Hammer LLP 30 N. LaSalle Street, Suite 3000 Chicago, IL USA 60602 Tel: (312) 704-2193 E-mail: evandesteeg@sugarfgh.com ahammer@sugarfgh.com AEG Partners LLC serves as the Committee's financial advisor. WORLD MARKETING: Creditors Sue Associated Bank to Avoid Collateral ------------------------------------------------------------------ Associated Bank, National Association, was the target of a complaint filed January 11, 2016, in the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division, in connection with the In re: World Marketing Chicago, LLC, et al Chapter 11 bankruptcy proceeding, the bank's holding company, Associated Banc-Corp, disclosed in its Form 10-K Report filed with the Securities and Exchange Commission on February 5, 2016, for the fiscal year ended December 31, 2015. In the complaint, The Official Committee of Unsecured Creditors of World Marketing Chicago, LLC, et al v. Associated Bank, N.A., the plaintiff seeks to avoid guarantees and pledges of collateral given by the debtors to secure a revolving financing commitment of $6 million to the debtors' parent company from the Bank. The plaintiff alleges a variety of legal theories under federal and state law, including fraudulent conveyance, preferential transfer and conversion, in support of its position. The plaintiff seeks return of approximately $4 million paid to the Bank and the avoidance of the security interest in the collateral securing the remaining approximately $1 million of indebtedness to the Bank. The Bank intends to vigorously defend this lawsuit. Headquartered in Milwaukee, Wisconsin, World Marketing Chicago, LLC, offers marketing consulting and mailing services. World Marketing Chicago, LLC (Bankr. N.D. Ill. Case No. 15-32968), and affiliates World Marketing Atlanta, LLC (Bankr. N.D. Ill. Case No. 15-32975) and World Marketing Dallas, LLC (Bankr. N.D. Ill. Case No. 15-32977) filed for Chapter 11 bankruptcy protection on Sept. 28, 2015, each estimating their assets and liabilities at between $1 million and $10 million. The petitions were signed by Robert W. Kraft, the authorized individual. The cases are jointly administered. Judge Timothy A. Barnes presides over the cases. Jeffrey C Dan, Esq., at Crane Heyman Simon Wlch & Clar serves as the Debtors' bankruptcy counsel. The Official Committee of Unsecured Creditors appointed in the case are represented by Elizabeth Vandesteeg, Esq., and Aaron L. Hammer, Esq., at Sugar Felsenthal Grais & Hammer LLP as counsel. AEG Partners LLC serves as the Committee's financial advisor. ZUCKER GOLDBERG: Committee's Challenge Period Expires Feb. 26 ------------------------------------------------------------- The Official Committee of Unsecured Creditors sought and obtained entry of a consent order extending until Feb. 26, 2016, its deadline to commence an adversary proceeding to challenge the amount, validity and enforceability of liens granted by Zucker, Goldberg & Ackerman, LLC, to J.P. Morgan Chase Bank, N.A. On Sept. 11, 2015, the Court entered a final order authorizing the Debtor to use cash collateral. The Order provided for a period of 60 days for the Creditors Committee to commence an adversary proceeding to challenge the obligations and liens incurred and granted by the Debtor to Chase. The Court granted a Nov. 10 motion by the Committee to extend that challenge period, pushing back the panel's deadline to Jan. 12. The Court later entered a consent order extending the challenge period to Feb. 5. The Committee and Chase agreed to enter into the latest consent order. In seeking the extension, the Committee said it served a Rule 2004 subpoena on the Debtor on or about Sept. 14, 2015. On Oct. 22, 2015, the Debtor responded to the subpoena producing approximately 12,545 pages of documents. Certain categories of documents have not been produced to date, which are relevant in determining whether the Committee should challenge the Debtor's stipulations in the cash collateral order. It added that the documents that have been produced by the Debtor to date raise a number of issues concerning the Chase Loan that will need to be addressed through further discovery. ServiceLink Another party-in-interest, ServiceLink NLS LLC, also seeks an extension of the challenge period termination date. Chase filed an objection to the motion but later agreed to drop the objection after negotiating terms of the extension order with ServiceLink. The stipulation and order signed by the judge provided that the challenge date will be extended to give ServiceLink 60 days -- until Dec. 17, 2015 -- to object to whether the Chase Security Interest covers the proceeds of fees collected by the Debtor for services rendered by ServiceLink to the Debtor. ServiceLink later informed the Debtor in a Dec. 17 letter that it has no objection to the validity, perfection and priority of Chase's security interest provided that, ServiceLink preserves its right to: 1. The validity, perfection and priority of Chase's security interest in deposit accounts as original collateral; and 2. Whether the Chase security interest covers the proceds of fees collected by the Debtor for services rendered by ServiceLink to the Debtor and billed by the Debtor to its clients. Counsel to ServiceLink: John Harmon, Esq. Jonathan I Rabinowitz, Esq. RABINOWITZ, LUBETKIN & TULLY, L.L.C. 239 Eisenhower Parkway, Suite 100 Livingston, NJ 07039 Tel: (973) 597-9100 Fax: (973) 597-9119 E-mail: jharmon@rltlawfirm.com jrabinowitz@rltlawfirm.com - and - David W. Ross, Esq. Erica L. Koehl, Esq. BABST, CALLAND, CLEMENTS & ZOMNIR, P.C. Two Gateway Center Pittsburgh, PA 15222 Tel: (412) 394-6558 Fax: (412) 773-8746 E-mail: dross@babstcalland.com ekoehl@babstcalland.com About Zucker Goldberg Formed in 1923 as Zucker & Goldberg, the law firm Zucker, Goldberg & Ackerman, LLC, was primarily engaged in the representation of lenders and secured parties in foreclosure matters, insolvency proceedings and related matters. The sole members of ZGA are Michael S. Ackerman, Esq. and Joel Ackerman, Esq. Michael S. Ackerman is the managing member of the firm. ZGA's primary offices are in Mountainside, New Jersey. Zucker, Goldberg & Ackerman, LLC, sought Chapter 11 protection (Bankr. D.N.J. Case No. 15-24585) in Newark, New Jersey, on Aug. 3, 2015, to complete the orderly liquidation of the business. The case is assigned to Judge Christine M. Gravelle. The Debtor disclosed total assets of $11.5 million and total liabilities of $53.3 million as of June 30, 2015. ZGA tapped Wasserman, Jurista & Stolz, P.C. as bankruptcy counsel; Brown, Moskowitz & Kallen, P.C., as special litigation counsel; Genova Burns as labor counsel; and BMC Group, Inc., as noticing and balloting agent. On Aug. 17, 2015, an Official Committee of Unsecured Creditors was appointed by the Office of the United States Trustee. The Committee on Oct. 15, 2015, won approval to retain McCarter & English, LLP to serve as Committee counsel, effective as August 14, 2015. ZUCKER GOLDBERG: Plan Exclusivity Extended to April 18 ------------------------------------------------------ U.S. Bankruptcy Judge Christine M. Gravelle entered an order extending Zucker, Goldberg & Ackerman, LLC's exclusive period to seek confirmation of its Chapter 11 plan through and including April 18, 2016. Zucker Goldberg filed the extension request on Jan. 13, 2016. It seeks to push the exclusive period back through March 18, 2016. The Debtor on Dec. 1, 2015, filed its Plan and Disclosure Statement with the Court. In its extension motion, the Debtor said it is in the process of amending the Disclosure Statement due to objections filed, and to alter the treatment of JPMorgan Chase, the Debtor's sole secured creditor. The Official Committee of Unsecured Creditors objected to the extension request. The panel said the Debtor has not demonstrated cause to extend exclusivity for a number of reasons. The Committee said, among other things, that the current disclosure statement provides little to no information on certain critical issues and the Debtor seems unwilling to address the disclosure deficiencies identified by the Committee in its Objection. "Notwithstanding this, because the disclosure statement and plan confirmation process will be placed in suspense pending the examiner's investigation and report, the Committee does not object at this time to the maintenance of the status quo. However, the Committee expressly requests that the Court consider the termination of the Debtor's exclusivity at such time when the Debtor's Amended Disclosure Statement (or any amended version thereof) is scheduled for consideration of approval," the Committee stated. Daniel M. Stolz, Esq., at Wasserman, Jurista & Stolz, P.C., counsel to the Debtor, noted that during the chamber's conference and Court Hearing held on January 15, it was agreed by all parties that the status quo would be preserved pending the appointment of an Examiner, the issuance of a report by the Examiner and an opportunity for the Committee and Debtor to negotiate modifications of the Debtor's Plan to address the findings in the Examiner's Report. That status quo was to include an extension of the Debtor's Exclusive Period for Confirming the Plan of Reorganization filed in this matter. Following a hearing on Jan. 29, 2016, the judge on Feb. 1, entered an order extending the Debtor's exclusivity to April 18. About Zucker Goldberg Formed in 1923 as Zucker & Goldberg, the law firm Zucker, Goldberg & Ackerman, LLC, was primarily engaged in the representation of lenders and secured parties in foreclosure matters, insolvency proceedings and related matters. The sole members of ZGA are Michael S. Ackerman, Esq. and Joel Ackerman, Esq. Michael S. Ackerman is the managing member of the firm. ZGA's primary offices are in Mountainside, New Jersey. Zucker, Goldberg & Ackerman, LLC, sought Chapter 11 protection (Bankr. D.N.J. Case No. 15-24585) in Newark, New Jersey, on Aug. 3, 2015, to complete the orderly liquidation of the business. The case is assigned to Judge Christine M. Gravelle. The Debtor disclosed total assets of $11.5 million and total liabilities of $53.3 million as of June 30, 2015. ZGA tapped Wasserman, Jurista & Stolz, P.C. as bankruptcy counsel; Brown, Moskowitz & Kallen, P.C., as special litigation counsel; Genova Burns as labor counsel; and BMC Group, Inc., as noticing and balloting agent. On Aug. 17, 2015, an Official Committee of Unsecured Creditors was appointed by the Office of the United States Trustee. The Committee on Oct. 15, 2015, won approval to retain McCarter & English, LLP to serve as Committee counsel, effective as August 14, 2015. ZUCKER GOLDBERG: Plan Put on Hold After Examiner Named ------------------------------------------------------ The law firm Zucker, Goldberg & Ackerman, LLC, in December filed a "Plan of Orderly Liquidation" which provides for: 1. the wind down of the firm's business, 2. the collection of its accounts receivable and liquidation of its other assets, 3. pursuit of any claims or causes of action held by the Debtor, and 4. distribution of the proceeds of these activities to creditors. A hearing on the Disclosure Statement was scheduled Jan. 15, 2016. Several parties filed objections ahead of the hearing. AMC Settlement Services, LLC, said the Disclosure Statement does not contain adequate information as there is too uncertainty with respect to recovery of the Debtor's accounts receivable and avoidance actions. DGR Subpoena & Messenger Service, Inc. d/b/a DGR - THE Source For Legal Support said the Disclosure Statement needs to be amended to reflect a trust claim that may arise for services DGR provided. The Official Committee of Unsecured Creditors complained of numerous omissions in the Disclosure Statement and said the Disclosure Statement is describing an unconfirmable plan. "Separate and apart from the glaring lack of anything even approaching adequate information upon which creditors could tender or recommend an informed vote, the Disclosure Statement may not be approved because it describes a fatally defective Plan. The Plan clearly violates applicable provisions of the Bankruptcy Code relating to confirmation in at least two material respects: (i) it sets up an impermissible classification scheme and all claims are designated as unsecured claims without regard to whether the claim is a subordinated claim of an insider or whether it is covered by insurance (subject to a deductible); and (ii) impermissibly designates class 4 (equity interests) as a voting class in spite of the potential that this estate may be administratively insolvent," the Committee said. The Debtor on Jan. 14, 2015 submitted an Amended Disclosure Statement. Daniel M. Stolz, Esq., at Wasserman, Jurista & Stolz, P.C., counsel to the Debtor, noted that during the chamber's conference and Court Hearing held on January 15, it was agreed by all parties that the status quo would be preserved pending the appointment of an Examiner, the issuance of a report by the Examiner and an opportunity for the Committee and Debtor to negotiate modifications of the Debtor's Plan to address the findings in the Examiner's Report. That status quo was to include an extension of the Debtor's Exclusive Period for Confirming the Plan of Reorganization filed in this matter. Terms of the Plan The Debtor filed its Plan of Orderly Liquidation and Disclosure Statement on Dec. 1, 2015. A copy of the First Amended Disclosure Statement filed Jan. 14, 2016, is available for free at: http://bankrupt.com/misc/Zucker_G_353_Am_DS.pdf The Debtor believes that administrative claims and holders of priority claims (Class 1) will be paid in full under the Plan. The secured claim of J.P. Morgan Chase (Class 2) as of the Petition Date was in the approximate amount of $2.8 million. During the course of the within Chapter 11 proceeding, the indebtedness to Chase has been substantially reduced to $500,000. In the Original Disclosure Statement, the Debtor said that it expects to the secured claim of Chase to be paid in full. However, in the Amended Disclosure Statement, the Debtor said that because of nonpayment by the Debtor's clients and other factors, it appears unlikely that the indebtedness due to Chase will be satisfied in full on or before the Effective Date. Unsecured creditors (Class 3) will receive a pro rata distribution of the net funds available after all assets have been liquidated and all secured, administrative and priority claims have been paid in full. Unfortunately, because Debtor anticipates that clients owing accounts receivable will contest their obligation to pay such account receivable, the funds that will be available for distribution is uncertain at the present time. The Debtor's Schedules of Assets and Liabilities listed unsecured claims in excess of $20 million against the within Bankruptcy Estate. Creditors are in the process of filing Proofs of Claim against the within Bankruptcy Estate. Holders of equity interests (Class 4) will receive no distributions under the Plan. Counsel to the Debtor: Daniel M. Stolz, ESQ. Steven Z. Jurista, Esq. Leonard C. Walczyk, Esq. Scott S. Rever, Esq. Donald W. Clarke, ESQ. WASSERMAN, JURISTA & STOLZ, P.C. 110 Allen Road, Suite 304 Basking Ridge, NJ 07920 Tel: (973) 467-2700 Fax: (973) 467-8126 Counsel for JPMorgan Chase Bank, N.A.: William S. Katchen, Esq. LAW OFFICES OF WILLIAM S. KATCHEN, L.L.C. 210 Park Avenue, Suite 301 Florham Park, NJ 07932 Tel: (973) 635-6300 Fax: (973) 635-6363 E-mail: wkatchen@wskatchen.com Counsel to the Official Committee of Unsecured Creditors: David J. Adler, Esq. Matthew B. Heimann, Esq. McCARTER & ENGLISH, LLP Four Gateway Center 100 Mulberry Street Newark, NJ 07102 Telephone: (973) 622-4444 Facsimile: (973) 624-7070 E-mail: dadler@mccarter.com mheimann@mccarter.com Proposed Special Counsel to the Official Committee of Unsecured Creditors: Eduardo J. Glas, Esq. TSEITLIN & GLAS, P.C. 345 Seventh Avenue, 21st Floor New York, NY 10001 Tel: (212) 944-7434 E-mail: ejglas@gmail.com Attorneys for AMC Settlement Services, LLC: Steven M. Richman, Esq. Jonathan W. Hugg, Esq. William C. Price, Esq. Elizabeth L. Slaby, Esq. CLARK HILL PLC 502 Carnegie Center, Suite 103 Princeton, NJ 08540 Tel: (609) 785-2911 Fax: (609) 785-2971 E-mail: srichman@clarkhill.com jhugg@clarkhill.com wprice@clarkhill.com bslaby@clarkhill.com Attorneys for DGR Subpoena & Messenger Service, Inc. d/b/a DGR – THE Source for Legal Support: Todd M. Galante, Esq. LECLAIRRYAN One Riverfront Plaza, 16th Floor 1037 Raymond Boulevard Newark, NJ 07102 Telephone: (973) 491-3364 Facsimile: (973) 491-3481 E-mail: todd.galante@leclairryan.com About Zucker Goldberg Formed in 1923 as Zucker & Goldberg, the law firm Zucker, Goldberg & Ackerman, LLC, was primarily engaged in the representation of lenders and secured parties in foreclosure matters, insolvency proceedings and related matters. The sole members of ZGA are Michael S. Ackerman, Esq. and Joel Ackerman, Esq. Michael S. Ackerman is the managing member of the firm. ZGA's primary offices are in Mountainside, New Jersey. Zucker, Goldberg & Ackerman, LLC, sought Chapter 11 protection (Bankr. D.N.J. Case No. 15-24585) in Newark, New Jersey, on Aug. 3, 2015, to complete the orderly liquidation of the business. The case is assigned to Judge Christine M. Gravelle. The Debtor disclosed total assets of $11.5 million and total liabilities of $53.3 million as of June 30, 2015. ZGA tapped Wasserman, Jurista & Stolz, P.C. as bankruptcy counsel; Brown, Moskowitz & Kallen, P.C., as special litigation counsel; Genova Burns as labor counsel; and BMC Group, Inc., as noticing and balloting agent. On Aug. 17, 2015, an Official Committee of Unsecured Creditors was appointed by the Office of the United States Trustee. The Committee on Oct. 15, 2015, won approval to retain McCarter & English, LLP to serve as Committee counsel, effective as Aug. 14, 2015. [*] Baker Donelson Evades Hedge Funds' Legal Fee Fraud Suit ----------------------------------------------------------- Dani Meyer at Bankruptcy Law360 reported that an Illinois federal court found on Feb. 5, 2016, that it can't hear two hedge funds' suit accusing Baker Donelson Bearman Caldwell & Berkowitz PC of doctoring a loan agreement for a bankrupt energy company because there isn't any evidence the funds suffered an injury in Illinois. Applying the Seventh Circuit's "express aiming" test to establish whether a party's actions were sufficiently directed at the forum state to exercise jurisdiction, the Court found that the plaintiffs didn't adequately show that Baker Donelson knew that its alleged actions preventing the funds from collecting on their loan would extend to Illinois. The plaintiffs are represented by Blake T. Hannafan and James A. Mcguinness of Hannafan & Hannafan Ltd. Baker Donelson is represented by John R. Storino of Jenner & Block LLP. The case is Pentwater Equity Opportunities Master Fund Ltd. et al. v. Baker Donelson Bearman Caldwell & Berkowitz PC, case number 1:15-cv-01885, in the U.S. District Court for the Northern District of Illinois. [*] Justice Department Reaches $470MM Settlement with HSBC ---------------------------------------------------------- The Justice Department, the Department of Housing and Urban Development (HUD) and the Consumer Financial Protection Bureau, along with 49 state attorneys general and the District of Columbia's attorney general, have reached a $470 million agreement with HSBC Bank USA NA and its affiliates to address mortgage origination, servicing and foreclosure abuses. "This agreement is the result of a coordinated effort between federal and state partners to hold HSBC accountable for abusive mortgage practices," said Acting Associate Attorney General Stuart F. Delery. "This agreement provides for $370 million in creditable consumer relief to benefit homeowners across the country and requires HSBC to reform their servicing standards. The Department of Justice remains committed to rooting out financial fraud and holding bad actors accountable for their actions." "This settlement illustrates the department's continuing commitment to ensure responsible mortgage servicing," said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department's Civil Division. "The agreement is part of our ongoing effort to address root causes of the financial crisis." The settlement reflects a continuation of enforcement actions by the department and its federal and state enforcement partners to hold financial institutions accountable for abusive mortgage practices. The settlement parallels the $25 billion National Mortgage Settlement (NMS) reached in February 2012 between the federal government, 49 state attorneys general and the District of Columbia's attorney general and the five largest national mortgage servicers, well as the $968 million settlement reached in June 2014 between those same federal and state partners and SunTrust Mortgage Inc. This settlement with HSBC is the result of negotiations that, as has been reported in HSBC Holdings plc's Annual Report and Accounts, began following the announcement of the NMS. Under the agreement, HSBC has agreed to provide more than $470 million in relief to consumers and payments to federal and state parties, and to be bound to mortgage servicing standards and be subject to independent monitoring of its compliance with the agreement. More specifically, the settlement provides that: HSBC will pay $100 million: $40.5 million to be paid to the settling federal parties; $59.3 million to be paid into an escrow fund administered by the states to make payments to borrowers who lost their homes to foreclosure between 2008 and 2012; and $200,000 to be paid into an escrow fund to reimburse the state attorneys general for investigation costs. By July 2016, HSBC will complete $370 million in creditable consumer relief directly to borrowers and homeowners in the form of reducing the principal on mortgages for borrowers who are at risk of default, reducing mortgage interest rates, forgiving forbearance and other forms of relief. The relief to homeowners has been underway and will likely provide more than $370 million in direct benefits to borrowers because HSBC will not be permitted to claim credit for every dollar spent on the required consumer relief. HSBC will be required to implement standards for the servicing of mortgage loans, the handling of foreclosures and for ensuring the accuracy of information provided in federal bankruptcy court. These standards are designed to prevent foreclosure abuses of the past, such as robo-signing, improper documentation and lost paperwork, and create new consumer protections. The standards provide for oversight of foreclosure processing, including third-party vendors, and new requirements to undertake pre-filing reviews of certain documents filed in bankruptcy court. The servicing standards ensure that foreclosure is a last resort by requiring HSBC to evaluate homeowners for other loss-mitigation options first. In addition, the standards restrict HSBC from foreclosing while the homeowner is being considered for a loan modification. The agreement will be filed as a consent judgment in the U.S. District Court for the District of Columbia. Compliance with the agreement will be overseen by an independent monitor, Joseph A. Smith Jr., who is also the monitor for the NMS and SunTrust settlement. Smith has served as the North Carolina Commissioner of Banks and is also the former chairman of the Conference of State Banks Supervisors. Smith will oversee implementation of the servicing standards required by the agreement, will certify that HSBC has satisfied its consumer relief obligations and will file regular public reports that identify any quarter in which HSBC fell short of the standards imposed in the settlement. The parties may seek penalties for non-compliance. The agreement resolves potential violations of civil law based on HSBC's deficient mortgage loan origination and servicing activities. The agreement does not prevent state and federal authorities from pursuing criminal enforcement actions related to this or other conduct by HSBC, or from punishing wrongful securitization conduct that is the focus of President Barack Obama's Financial Fraud Enforcement Task Force Residential Mortgage-Backed Securities Working Group. State attorneys general also preserved, among other things, all claims against Mortgage Electronic Registration Systems. Additionally, the agreement does not prevent any action by individual borrowers who wish to bring their own lawsuits. [*] Tiger Capital, Liquidity Services Launch Partnership -------------------------------------------------------- Tiger Capital Group and Liquidity Services on Feb. 16 announced the launch of a partnership geared toward helping insolvency and turnaround professionals ramp up their services to the turbulent oil and gas market, as well as directly assist companies seeking to sell surplus assets. As macro trends drive more oil and gas enterprises into bankruptcy or distress, the partnership -- Tiger Liquidity Services Energy Partners -- brings together two companies with substantial capital resources as well as decades of experience in the valuation and disposition of surplus assets, said Jeff Tanenbaum, president of Tiger Group's Remarketing Services division. "Liquidity Services maintains the world's largest marketplace for business surplus and is well known for its expertise in the oil and gas sector," Mr. Tanenbaum noted. "For its part, Tiger has 40 years of experience in structuring liquidation events globally for Fortune 1000 companies, lenders, insolvency professionals, government agencies and small businesses. The result is a valuable new resource for the bankruptcy and turnaround community." "The partnership is well positioned to help the sector adapt to the considerable challenges of today," said Daniel Beck, vice president of global sales for Liquidity Services. "The mission of this partnership is to provide both the intelligence and the proven strategies needed to help distressed companies pay off creditors, remain solvent and even lay the foundation for future growth," he said. "Strategic adaptation could include everything from online auctions of surplus oil-and-gas assets, to rapid injections of capital, to the turnkey sale of whole operations." "Other possible solutions for insolvency professionals working with distressed oil and gas companies include immediately receiving capital from the partnership by selling assets outright through a principal deal, or by marketing the assets on a consignment basis and offering them for sale via the partnership's proprietary online auction platforms or negotiated sale," Mr. Beck added. With more than 80,000 oil and gas transactions completed to date, Washington, DC-based Liquidity Services markets assets to more than three million registered buyers in almost 200 countries and territories. Network International is the company's online marketplace for energy-related assets. "Network International is known for selling nearly every asset category, including equipment related to drilling, construction, pipelines, power generation, oilfield production, refineries, petrochemical units, and much more," Mr. Beck said. New York-based Tiger Group annually appraises more than $30 billion in industrial and consumer product assets. The company has spent years honing its insolvency expertise and process-oriented approach to asset valuation and disposition, Tanenbaum said. "Tiger Group and Liquidity Services are a perfect fit," he said. "Together, we have the marketplaces, the buyers, the historical sales data and the years of experience needed to help insolvency professionals seize opportunities in today's challenging oil and gas sector." About Tiger Group Tiger Capital Group -- http://www.TigerGroup.com-- provides asset valuation, advisory and disposition services to a broad range of retail, wholesale, and industrial clients. Tiger maintains offices in New York, Los Angeles, Boston, Chicago, Sydney and San Francisco. About Liquidity Services Liquidity Services -- http://www.LiquidityServices.com-- is a global solution provider in the reverse supply chain with the world's largest marketplace for business surplus. The company partners with global Fortune 1000 corporations, middle market companies, and government agencies to intelligently transform surplus assets and inventory from a burden into a liquid opportunity that fuels the achievement of strategic goals. ********* 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 2016. 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 ***