/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/160225.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, February 25, 2016, Vol. 20, No. 56 Headlines 99 CENTS: Bank Debt Trades at 40% Off ABENGOA BIOENERGY: Case Summary & 50 Largest Unsecured Creditors ABENGOA BIOENERGY: Files for Chapter 11 with $1.2-Bil. in Debt ABENGOA BIOENERGY: Seeks to Convert Involuntary Ch. 7 Cases ALBERTSONS CO: Ex-Workers Complain Non-payment of Compensation ALL PHASE STEEL: Case Summary & 20 Largest Unsecured Creditors ALPHA NATURAL: State Street Has 0.04% Equity Stake AMERICAN AIRLINES: Bank Debt Trades at 3% Off ARCH COAL: Committee Seeks to Undo Interim DIP Order ARCH COAL: Court Approves Wyoming Environment Pact ARCH COAL: Creditors Offer Alternative $100-Mil. DIP Financing ARCH COAL: Russell R. Johnson III Files Verified Statement ARCH COAL: State Street Has 0.3% Equity Stake ASPEN GROUP: Released From DoE's Letter of Credit Requirement AVAGO TECHNOLOGIES: Bank Debt Trades at 2% Off BAILEY TOOL: U.S. Trustee Forms Three-Member Committee BATS GLOBAL: S&P Revises Outlook to Stable & Affirms 'BB-' Rating CAESARS ENTERTAINMENT: Loss Narrows in Fourth Quarter 2015 CASA EN DENVER: Has Access to Cash Collateral Until March 22 CASPIAN SERVICES: Incurs $16.8 Million Net Loss in Dec. 31 Qtr. CEQUEL COMMUNICATIONS: Bank Debt Trades at 2% Off CHESAPEAKE ENERGY: To Cover $500-Mil. Debt Tab CHINA GINSENG: Incurs $1.77 Million Net Loss in Second Quarter CLEARWATER PAPER: S&P Raises CCR to 'BB+', Outlook Stable CLEVELAND BIOLABS: Reports 2015 Financial Results COFFEE CREEK: Case Summary & 4 Unsecured Creditors CONDADO RESTAURANT: Case Summary & 21 Largest Unsecured Creditors COUDERT BROTHERS: Orrick to Pay $165K to Settle China Biz Licenses CURTIS JAMES JACKSON: Says Creditors' Plan Indentured Servitude DETROIT, MI: Schools Hit Debt Limit, Risk Being Unable to Pay Bills DEX MEDIA: Bank Debt Trades at 66% Off DORAL FINANCIAL: Committee Seeks to Hire McConnell as Tax Counsel EDGEWELL PERSONAL: Moody's Lowers CFR to Ba2, Outlook Stable EFT HOLDINGS: Posts $11.5 Million Net Income for Third Quarter EIDOS LLC: 341 Meeting of Creditors Set for March 10 EMERALD INVESTMENTS: Liquidating Plan Declared Effective ENERGY FUTURE: Watchdog Says Chapter 11 Fees at $300M and Rising EXELIXIS INC: State Street Reports 3.9% Stake as of Dec. 31 EXTREME PLASTICS: Citizens Bank OKs Cash Use Until March 11 FAIRPOINT COMMUNICATIONS: Bank Debt Trades at 2% Off FIRST DATA: Bank Debt Due 2018 Trades at 2% Off FIRST DATA: Bank Debt Due 2022 Trades at 3% Off FORTESCUE METALS: Bank Debt Trades at 33% Off FPMC SAN ANTONIO: Seeks to Employ CBRE as Real Estate Broker FPMC SAN ANTONIO: Seeks to Retain Battaglia as Counsel GBG RANCH: Court Issues Final Decree to Close Case GENIUS BRANDS: Signs Distribution Agreement with Sony Pictures GRAHAM HOLDINGS: S&P Withdraws 'B' Corporate Credit Rating GULF PACKAGING: Illinois Judge Confirms Uncontested Plan GULF PACKAGING: Liquidating Plan Declared Effective Jan. 22 GULF PACKAGING: Xsys Seeks Payment of $62K Admin. Expense Claim H. KREVIT AND COMPANY: Committee May Hire Gavin/Solmonese H. KREVIT AND COMPANY: Files Amended Schedules of Assets & Debt H. KREVIT AND COMPANY: Siegel O'Connor Approved as Labor Counsel H. KREVIT AND COMPANY: Wants to Hire Environmental Consultant INEOS GROUP: Bank Debt Due 2018 Trades at 4% Off INEOS GROUP: Bank Debt Due 2022 Trades at 6% Off INFORMATICA CORP: Bank Debt Trades at 7% Off INTERNATIONAL TECHNICAL: Chairman Paid for Osborn Retainer INTERNATIONAL TECHNICAL: Morris Anderson Approved as Fin'l Advisor INTERNATIONAL TECHNICAL: Panel Taps KRyS Global as Fin'l Advisor INTERNATIONAL TECHNICAL: Stinson Leonard Okayed as Panel Counsel KALOBIOS PHARMACEUTICALS: Okayed to Pay $198K in Employee Bonuses LA CASA DE LA RAZA: Case Summary & 16 Unsecured Creditors LATTICE SEMICONDUCTOR: S&P Lowers CCR to 'B', Outlook Stable MAGNUM HUNTER: Can Employ BDO USA as Accountant MAGNUM HUNTER: Committee Can Retain Cole Schotz as Co-Counsel MAGNUM HUNTER: Equity Holders Want More Info on Plan Valuations MAPLE BANK: To Wind Up Canadian Biz; KPMG Named as Liquidator MEDIASHIFT INC.: Cash Use for Gap Period Approved MEDIASHIFT INC: $425K Postpetition Financing Approved MERCURY SIGNS: Voluntary Chapter 11 Case Summary MOLYCORP INC: Bondholders Not Part of Settlement, Lawyer Says MOLYCORP INC: Oaktree, Creditors Reach Bankruptcy Deal MOLYCORP INC: Reports Foreign Units' Earnings Thru Dec. 2015 MOTORS LIQUIDATION: Won't Pursue Avoidance Action Claims Amendment MULTIPLAN INC: Bank Debt Trades at 3% Off NEIMAN MARCUS: Bank Debt Trades at 14% Off P.F. CHANG: S&P Revises Outlook to Negative & Affirms 'B-' CCR PACIFIC SANDS: Provides Update on Corporate Wide Reorganization PARAGON OFFSHORE: April 6 Hearing on Disclosure Statement PEABODY ENERGY: Bank Debt Trades at 57% Off PEABODY ENERGY: Coal Bankruptcies May Leave Cleanup to Taxpayers PETSMART INC: Bank Debt Trades at 4% Off PHOTOMEDEX INC: To Sell Consumer and Professional Businesses POSITRON CORP: Joseph Oliverio Quits as President and Chairman QUICKSILVER RESOURCES: Canada Unit Has Forbearance Until April 1 RADIO SYSTEMS: S&P Affirms 'B' CCR & Revises Outlook to Negative RESTAURANT ASSOCIATES: Case Summary & 13 Unsecured Creditors RESTAURANTS ACQUISITION: 341 Meeting Adjourned to March 1 RIVERBED TECHNOLOGY: Bank Debt Trades at 2% Off ROBERT SIMON: 3rd Cir. Says Debtors Could Have Understood Subpoena RYCKMAN CREEK: 341 Meeting of Creditors Set for March 10 RYCKMAN CREEK: U.S. Trustee Forms Five-Member Committee SAMUEL E. WYLY: Says Too Late for IRS to Collect Tax Deficiencies SANTA FE GOLD: March 8 Hearing on Bid to Dismiss Case SBP HOLDING: S&P Lowers CCR to 'CCC+', Outlook Stable SEMLER SCIENTIFIC: Dismisses Chief Financial Officer SFX ENTERTAINMENT: 341 Meeting of Creditors Set for March 11 SFX ENTERTAINMENT: U.S. Trustee Forms Seven-Member Committee SPORTS AUTHORITY: Moody's Lowers PDR to Ca-PD/LD, Outlook Neg. STEREOTAXIS INC: Reports 2015 Q4 and Full Year Financial Results STUDENT AID CENTER: Files for Chapter 7 Bankruptcy SUMMIT MATERIALS: S&P Assigns B Rating on New $250MM Unsec. Notes SUNTECH AMERICA: Plan Confirmation Hearing Today SUPERVALU: Bank Debt Trades at 5% Off SURGICAL SPECIALTIES: S&P Withdraws 'B' Corporate Credit Rating TECK RESOURCES: Moody's Lowers CFR to B3, Outlook Negative TENET HEALTHCARE: Incurs $140 Million Net Loss in 2015 TOP DRAWER: Case Summary & 3 Unsecured Creditors TRINSEO MATERIALS: Bank Debt Trades at 3% Off UNIVISION COMMUNICATIONS: S&P Affirms 'B' CCR, Outlook Positive VALEANT PHARMACEUTICALS: Moody's Affirms Ba3 CFR, Outlook Negative VANTAGE DRILLING: Bank Debt Trades at 84% Off VARIANT HOLDING: Sec. 341 Meeting Continued to Mar. 4 VARIANT HOLDING: Seeks to Extend Schedules Deadline VICTORY HEALTHCARE: Plan Confirmation Hearing on March 21 VICTORY HEALTHCARE: Proposes Joint Plan of Liquidation WALTER ENERGY: Balks at Coal Act Funds' Bid to Stay Pending Appeal WELLNESS CENTER: Incurs $542,000 Net Loss in Dec. 31 Quarter WEST COAST: Case Converted to Chapter 7 Proceeding WOOD RESOURCE: Seeks to Retain ChildersLaw as Counsel XO HOLDINGS: S&P Puts 'B' CCR on CreditWatch Positive ZAYO GROUP: Bank Debt Trades at 2% Off [*] Conway MacKenzie's R.J. Prossner Receives CIRA Certification [*] Funds Say Court Forgot Baker Donelson Fraud Row Argument [*] GOP Attys Would Likely Back Sri Srinivasan to Replace Scalia [*] MoFo Adds Jonathan Levine as Business Restructuring Partner [*] Squire Patton Boggs and Carroll, Burdick to Combine [*] Williams & Connolly Takes Chance on Zach Warren [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* 99 CENTS: Bank Debt Trades at 40% Off ------------------------------------- Participations in a syndicated loan under which 99 Cents Only Stores is a borrower traded in the secondary market at 59.67 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 1.33 percentage points from the previous week. 99 Cents pays 350 basis points above LIBOR to borrow under the $0.614 billion facility. The bank loan matures on Jan. 13, 2019 and carries Moody's Caa1 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. ABENGOA BIOENERGY: Case Summary & 50 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Abengoa Bioenergy US Holding, LLC 16-41161 fka Abengoa Bioenergy US Holding, Inc. 16150 Main Circle Drive, Suite 300 Chesterfield, MO 63017-4689 Abengoa Bioenergy of Nebraska, LLC 16-41163 Abengoa Bioenergy Company, LLC 16-41165 Abengoa Bioenergy Trading US, LLC 16-41167 Abengoa Bioenergy Engineering and Construction, LLC 16-41168 Abengoa Bioenergy Outsourcing, LLC 16-41171 Type of Business: Engineering and Clean Technology Company Chapter 11 Petition Date: February 24, 2016 Court: United States Bankruptcy Court Eastern District of Missouri (St. Louis) Judge: Hon. Kathy A. Surratt-States Debtors' Richard A. Chesley, Esq. General DLA PiIPER LLP (US) Counsel: 203 North LaSalle Street, Suite 1900 Chicago, IL 60601 Tel: 312.368.4000 Fax: 312.236.7516 E-mail: richard.chesley@dlapiper.com - and - Craig R. Martin, Esq. DLA PIPER LLP (US) 1201 North Market Street, Suite 2100 Wilmington, DE 19801 Tel: 302.468.5700 Fax: 302.394.2341 E-mail: craig.martin@dlapiper.com Debtors' Richard W. Engel, Jr., Esq. Co-Counsel: ARMSTRONG TEASDALE LLP 7700 Forsyth Blvd., Suite 1800 St. Louis, MO 63105 Tel: (314) 621-5070 E-mail: rengel@armstrongteasdale.com Debtors' Financial Advisor: ALVAREZ & MARSAL NORTH AMERICA, LLC Debtors' Investment Banker: LAZARD Debtors' Claims Agent: PRIME CLERK LLC Total Assets: $1.3 billion as of Petition Date Total Liabilities: $1.2 billion as of Petition Date The petitions were signed by Antonio Jose Vallespir de Gregorio, president & CEO. List of Debtors' 50 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Societe Generale Loan Facility $1,454,267,983 Sucursal en Espana, as Agent Torre Picasso Plaza de Pablo Ruiz Picasso, 1, 28020 Madrid Deutsche Trustee $650MM 8.875% $650,000,000 Company Limited, due 2017 as Trustee Winchester House 1 Great Winchester Street London EC2N 2DB United Kingdom Deutsche Trustee Company EUR 550MM $605,495,000 Limited, as Trustee 8.875% due Winchester House 2018 1 Great Winchester Street London EC2N 2DB United Kingdom Deutsche Trustee Company Limited EUR 500 $550,450,000 as Agent 8.50% Due Winchester House 2016 1 Great Winchester Street London EC2N 2DB United Kingdom Deutsche Trustee Company Limited EUR 500mm $550,450,000 as Trustee 6% Due 2021 Winchester House 1 Great Winchester Street London EC2N 2DB United Kingdom Deutsche Bank Trust $450 MM $450,000,000 Company Americas 7.75% due 60 Wall Street 2020 MSNYC 60-2710 New York, New York 10005 U.S.A. Deutsche Trustee Company EUR 375MM $412,837,500 Limited, as trustee 7.0% due 2020 Winchester House 1 Great Winchester Street London EC2N 2DB United Kingdom Deutsche Trustee Company $300 million $300,000,000 Limited, as Trustee 6.5% Senior Winchester House Notes Due 2019 1 Great Winchester Street Issued by Abengoa London EC2N 2DB Greenfield, S.A. United Kingdom Deutsche Trustee Company EUR 265 Million $291,738,500 Limited, as Trustee 5.5% Senior Notes Winchester House Due 2019 issued 1 Great Winchester Street by Abengoa London EC2N 2DB Greenfield S.A. United Kingdom Deutsche Bank AG EUR 400 MM $178,015,530 London Branch, as 6.25% Convertible fiscal agent Notes Due 2019 Winchester House 1 Great Winchester Street London E2NC 2DB United Kingdom Banco Popular Espanol, S.A. EUR 125 million $137,612,500 c/ Velazquez, 34 Revolving Facility 28001 Madrid Spain Agensynd, S.L. EUR 106 million $116,695,400 Velazquez 78 loan with final 4 Derecha maturity date 28001 Madrid Spain of 17 March 2016 European Investment Bank EUR 125 million $82,745,846 98-100 Blvd Konrad Adenauer facility Luxembourg, L-2950 Luxembourg The Receivables Exchange Trade $78,187,559 100 Park Avenue 30th Floor New York, NY 10017 El Instituto Credito Official EUR 30 million $32,870,672 Jaime Cervera/Conchi ICO financing Berrocal Department of Operations Paseo del Prado, 4 28014 Madrid Spain Banco Popular PPB $31,018,431 Fernandez y Gonzalez 4 41001 Sevilla, Spain HSBC PPB $25,384,365 P.O. Box 9 Bufallo, New York 14240 Santander Spain PPB $24,296,720 Edif. Pedrena - Planta S1 Av. Gran Via de Hortaleza 3 28033, Madrid, Spain Cargill Americas, Inc. Trade $22,200,000 2525 Ponce de Leon Bldvd Coral Gables, FL 33134 Royal Bank of Scotland PPB $22,074,593 101 Park Avenue New York NY 10178 Bankia - ABC Line PPB $12,484,030 C/Gabriel Garcia Marquez 1 28232 Las Rozas Banco de Brasil PPB $12,358,292 Banco de Brasil, New York Branch 8325 S Park Circle, Suite 140 Orlando, FL 32819 La Caixa PPB $10,164,964 Avda. de la Palmera-Edificio La Caixa, s/n 41013 Sevilla Spain Cargill Trade and Structured Trade $8,513,141 Finance 9350 Excelsior Blvd Hopkins MN 55343 1000-1100 Wilson Owner, LLC Rent $5,300,000 1100 Wilson Blvd Arlington, VA 22209 Silicon Valley Bank Trade $5,000,000 380 Interlocken Crescent Ste. 600 Broomfield, CO 80021 CHS Trade $4,969,461 P.O. Box 82289 Lincoln, NB 68501-2289 Citibank PPB $4,061,382 2800 Post Oak Blvd, Suite 400 Houston, TX 77056 Gavinlon GR Trade $3,076,494 1331 Capitol Ave Omaha NB 68102 BNSF Railway Company Trade $2,401,985 PO Box 847574 Dallas TX 75284-7574 BakerCorp Litigation $1,928,000 2400 S Cedar Borger, TX 79007 Encore Energy Services, Inc. Trade $1,779,374 11807 Q Street Suite 1 Omaha NB 68137 Trinity Industries Leasing Trade $1,500,072 Company 2525 Stemmons Freeway Philadelphia PA 19175-0131 The Andersons, Inc. Trade $1,451,857 303 W 19th St Kearney NE 68848 Central Valley Ag Cooperative Trade $1,434,874 PO Box 429 York NE 68467 Comerica Bank PPB $1,133,212 39200 Six Mile Road Livonia, Michigan 48152 Spanish Comisario Bondholders SL Notes Due $1,100,900 Av. Francia 17, A, 1 2017 Valencia 46023 Spain Farmers Cooperative-Dorchester Trade $1,015,230 208 West Depot Dorchester NE 68433-0263 Buffalo County Treasurer Tax $909,114 PO Box 1270 Kearney, NE 68848-1270 Aurora Coop Elevator Co. Trade $899,484 P.O. Box 209 Aurora, L 68818 GATX Rail - Locomotive Rental Trade $759,037 222 West Adams Street Chicago IL 60606 Interstate Commodities, Inc. Trade $725,307 7 Madison Street Troy NY 12180 Novozymes North America, Inc. Trade $719,074 PO Box 576 Franklinton NC 27525 The Andersons Inc. - Rail Trade $557,447 NW 6172 PO Box 1450 Minneapolis MN 55485-6172 Banco Santander PPB $441,849 P.O. Box 362589 San Juan PR 00936-2589 Farmers Coop Assoc of Trade $312,186 Ravenna NE 35885 Ravenna Road Ravenna NE 68869 Nalco Company Trade $283,375 P.O. Box 70716 Chicago IL 60673-0716 York County Treasurer Tax $270,448 510 N. Lincoln Avenue York, NE 68467 Danisco US Inc. Trade $265,631 PO Box 7247-8528 Philadelphia PA 19170-8528 Bearing Headquarters Co. Trade $263,263 PO Box 6267 Broadview IL 60155 ABENGOA BIOENERGY: Files for Chapter 11 with $1.2-Bil. in Debt -------------------------------------------------------------- Abengoa Bioenergy US Holding, LLC and five other U.S. units of Spanish engineering and renewable energy giant Abengoa Bionergia, S.A., sought Chapter 11 bankruptcy protection on Feb. 24, 2016, in St. Louis, Missouri, listing $1.2 billion in debt. Abengoa S.A., which is desperate for funding and is in talks with creditors on the terms of a viability plan that would help it avoid bankruptcy, has pursued a Chapter 11 restructuring for its U.S. units after creditors tried to force two units to liquidate under Chapter 7 bankruptcy early February. The Debtors that have sought Chapter 11 bankruptcy protection are: a) Abengoa Bioenergy US Holding, LLC ("ABUS"), a limited liability company organized under the laws of Missouri that indirectly owns the other US entities of Abengoa Bioenergy through its ownership of nondebtor Abengoa Bioenergy Operations, LLC. ABUS is a corporate guarantor on many of the other Debtors' obligations. b) Abengoa Bioenergy Company, LLC ("ABC"), a limited liability company organized under the laws of the state of Kansas. This is the oldest company in the US of Abengoa Bioenergy. ABC operated three ethanol plants located in Portales, New Mexico; Colwich, Kansas and York, Nebraska. As of the Petition Date, ABC has 59 employees and operations at all three ethanol plants have been idled due to working capital issues. ABC is the main entity that manages the Debtors' cash and as a result, it has many liabilities but also has several corresponding intercompany receivables owed to it by the other Debtors. ABC is also a guarantor of corporate debt of Abengoa and Related entities. c) Abengoa Bioenergy of Nebraska, LLC ("ABNE"), a limited liability company organized under the laws of the state of Nebraska. ABNE owns an ethanol plant in Ravenna, Nebraska. Due to working capital issues, the plant's operations were idled in the last quarter of 2015. ABNE is also a guarantor of corporate debt of Abengoa and related entities. d) Abengoa Bioenergy Engineering & Construction, LLC ("ABEC"), a limited liability company organized under the laws of the state of Missouri. ABEC has three employees and provides engineering and consulting services. e) Abengoa Bioenergy Trading US, LLC ("ABT"), a limited liability company organized under the laws of the state of Missouri. ABT employs about thirteen employees who mainly manage, among other matters, grain purchases for Abengoa Bioenergy's plants, main supplies procurement services, and manage the sale, marketing and logistics of ethanol that the plants produce. f) Abengoa Bioenergy Outsourcing, LLC ("ABO"), a limited liability company organized under the laws of the state of Missouri. This entity employs thirty-eight employees used in the Debtors' operations and thus is the primary entity that either leases employees to the other Debtors or employs people directly for use in the Debtors' operations. As of the Petition Date, the Debtors, on a consolidated basis, own assets of approximately $1.3 billion. As of the Petition Date, the Debtors had aggregate liabilities of approximately $1.2 billion. In addition, Abengoa Bioenergy Company, LLC ("ABC") and Abengoa Bioenergy of Nebraska, LLC ("ABNE") are each guarantors on notes issued by Abengoa, S.A., Abengoa Finance, S.A.U, or Abengoa Greenfield, S.A. in the approximate amount of $6.86 billion. The Debtors' revenue for the period ending Dec. 31 2015 was approximately $366 million. First Day Motions The Debtors have filed or expect to file a number of First Day Motions, customary in bankruptcy cases such as these, designed to minimize the adverse effects of the commencement of the bankruptcy cases on their ongoing business operations. The First Day Motions seek authority to, among other things, continue to pay employee compensation and benefits in order to maintain morale and retention as the Debtors transition into chapter 11, thus avoiding the potential for catastrophic "brain drain"; ensure the continuation of the Debtors' cash management systems and other business operations without interruption; provide the Debtors the ability to pay certain critical vendors and certain other vendors who could assert liens against the Debtors property; and to provide adequate assurance of future performance to their utility providers. A first day hearing before U.S. Bankruptcy Judge Kathy A. Surratt-States is scheduled for March 2 at 10:00 a.m. A copy of the affidavit in support of the First Day Motions is available for free at: http://bankrupt.com/misc/Abengoa_12_1st_Day_Affidavit.pdf Four Ethanol Plants Collectively, the Debtors own, operate, and/or service four ethanol plants: Ravenna, York, Colwich, and Portales. Having negotiated DIP financing to provide the necessary liquidity, Debtors intend to resume operations in their most profitable ethanol plants, Ravenna and York. Resumption of ethanol plant operations will generate value to the Debtors' estates and provide recovery for its creditors. In fact, other plants in Nebraska continue to operate in the current market environment. Indeed, the Debtors believe that operating both Ravenna and York will not only stabilize the Debtors' operations, but will maximize the value of these estate for the creditors through either a going-concern sale under Section 363 of the Bankruptcy Code or through a plan of reorganization. The Debtors intend to use the "breathing room" permitted by the Bankruptcy Code and DIP financing to carefully plan the course that will maximize the value to all stakeholders in the Chapter 11 cases. About Abengoa Bionergy Abengoa Bioenergy is a collection of indirect subsidiaries of Abengoa S.A. ("Abengoa"), a Spanish company founded in 1941. The global headquarters of Abengoa Bioenergy is in Chesterfield, Missouri. With a total investment of $3.3 billion, the United States has become Abengoa S.A.'s largest market in terms of sales volume, particularly from developing solar, bioethanol, and water projects. Spanish energy giant Abengoa S.A. is an engineering and clean technology company with operations in more than 50 countries worldwide that provides innovative solutions for a diverse range of customers in the energy and environmental sectors. Abengoa is one of the world's top builders of power lines transporting energy across Latin America and a top engineering and construction business, making massive renewable-energy power plants worldwide. On Nov. 25, 2015, in Spain, Abengoa S.A. announced its intention to seek protection under Article 5bis of Spanish insolvency law, a pre-insolvency statute that permits a company to enter into negotiations with certain creditors for restricting of its financial affairs. The Spanish company is facing a March 28, 2016, deadline to agree on a viability plan or restructuring plan with its banks and bondholders, without which it could be forced to declare bankruptcy. Gavilon Grain, LLC, Farmers Cooperative Association, and The Andersons, Inc. filed on Feb. 1, 2016, an involuntary petition for relief under Chapter 7 of the Bankruptcy Code against Abengoa Bioenergy of Nebraska, LLC ("ABNE") in the United States Bankruptcy Court for the District of Nebraska. Gavilon Grain, Farmers Cooperative, and Central Valley Ag Cooperative on Feb. 11 filed an involuntary Chapter 7 petition against Abengoa Bioenergy Company, LLC ("ABC") in the United States Bankruptcy Court for the District of Kansas (Kansas City). ABC's involuntary Chapter 7 case is Bankr. D. Kan. Case No. 16-20178. ABNE's involuntary case is Bankr. D. Neb. Case No. 16-80141. Gavilon Grain LLC and other petitioners are represented by James J Niemeier, Esq., James G. Powers, Esq., Robert P. Diederich, Esq., at McGrath, North, Mullin & Kratz, P.C. On Feb. 24, 2016, Abengoa Bioenergy US Holding, LLC and five affiliated debtors, including ABNE and ABC, each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Missouri. The cases are pending before the Honorable Kathy A. Surratt-States and are jointly administered under Case No. 16-41161. The Debtors tapped DLA Piper LLP (US) as counsel. Prime Clerk is the claims and noticing agent. The Debtors' investment banker is Lazard. ABENGOA BIOENERGY: Seeks to Convert Involuntary Ch. 7 Cases ----------------------------------------------------------- Abengoa Bioenergy Company, LLC ("ABC"), Abengoa Bioenergy of Nebraska, LLC ("ABNE"), and four other U.S. units of Spanish energy giant Abengoa S.A. filed Chapter 11 bankruptcy petitions in St. Louis, Missouri, on Feb. 24, 2016. The Chapter 11 filings serve to counter attempts made by Gavilon Grain, LLC, Farmers Cooperative Association, and The Andersons, Inc. to place ABNE under Chapter 7 bankruptcy protection. Gavilon et al. on Feb. 1, 2016, filed involuntary petitions for relief under Chapter 7 of the Bankruptcy Code against ABNE in the United States Bankruptcy Court for the District of Nebraska. Gavilon Grain, Farmers Cooperative, and Central Valley Ag Cooperative also seek to place ABC under Chapter 7 bankruptcy protection by filing an involuntary Chapter 7 petition on Feb. 11 in the United States Bankruptcy Court for the District of Kansas (Kansas City). ABC's involuntary Chapter 7 case is Bankr. D. Kan. Case No. 16-20178. ABNE's involuntary case is Bankr. D. Neb. Case No. 16-80141. Sandra Porras Serrano, CFO of Abengoa Bioenergia, S.A., said in a court filing that it is important to note that in advance of the chapter 7 filings and consistent with the Abengoa S.A.'s Viability Plan, the Debtors' management, in conjunction with their advisors, had already been working on restructuring Abengoa Bioenergy. Since the commencement of the chapter 7 cases, the Debtors have been focusing their efforts on solicitation of potential debtor in possession financing and preparing for voluntary chapter 11 petitions to permit the Debtors to sell or restructure their businesses. Contemporaneously with filing voluntary petitions for relief under chapter 11 of the Bankruptcy Code for the Debtors, ABNE and ABC each filed (i) a motion to convert their respect involuntary chapter 7 cases into cases under chapter 11 of the Bankruptcy Code and (ii) a motion to transfer venue of those involuntary chapter 7 case to the U.S. Bankruptcy Court for the Eastern District of Missouri. The Debtors said they have worked tirelessly with their advisors since Feb. 1, 2016, and well before to prepare these Debtors for a stand-alone transaction. Specifically, the Debtors' investment banker, Lazard, has been developing a sale process for certain of the bioenergy assets. In the wake of the involuntary petitions, the Debtors and their advisors have to obtain adequate DIP financing to allow for not only the stabilization of this business, but a process that with time, should realize a significant return to the Debtors' creditors. About Abengoa Bionergy Abengoa Bioenergy is a collection of indirect subsidiaries of Abengoa S.A. ("Abengoa"), a Spanish company founded in 1941. The global headquarters of Abengoa Bioenergy is in Chesterfield, Missouri. With a total investment of $3.3 billion, the United States has become Abengoa S.A.'s largest market in terms of sales volume, particularly from developing solar, bioethanol, and water projects. Spanish energy giant Abengoa S.A. is an engineering and clean technology company with operations in more than 50 countries worldwide that provides innovative solutions for a diverse range of customers in the energy and environmental sectors. Abengoa is one of the world's top builders of power lines transporting energy across Latin America and a top engineering and construction business, making massive renewable-energy power plants worldwide. On Nov. 25, 2015, in Spain, Abengoa S.A. announced its intention to seek protection under Article 5bis of Spanish insolvency law, a pre-insolvency statute that permits a company to enter into negotiations with certain creditors for restricting of its financial affairs. The Spanish company is facing a March 28, 2016, deadline to agree on a viability plan or restructuring plan with its banks and bondholders, without which it could be forced to declare bankruptcy. On Feb. 24, 2016, Abengoa Bioenergy US Holding, LLC and five affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Missouri. The cases are pending before the Honorable Kathy A. Surratt-States and are jointly administered under Case No. 16-41161. The Debtors tapped DLA Piper LLP (US) as counsel. Prime Clerk is the claims and noticing agent. The Debtors' investment banker is Lazard. Gavilon Grain LLC and other petitioning creditors are represented by: James J Niemeier, Esq. James G. Powers, Esq. Robert P. Diederich, Esq. McGRATH, NORTH, MULLIN & KRATZ, P.C. First National Tower, Suite 3700 1601 Dodge Street Omaha, NE 68102 Tel: (402) 341-3070 E-mail: jniemeier@mcgrathnorth.com jpowers@mcgrathnorth.com rdiederich@mcgrathnorth.com ALBERTSONS CO: Ex-Workers Complain Non-payment of Compensation -------------------------------------------------------------- Dani Meyer at Bankruptcy Law360 reported that since Albertsons bought back several stores that it had sold to Haggen when its rival went bankrupt, the grocery store chain hasn't paid its hourly employees all of the wages they earned, according to a proposed class action recently removed to California federal court. A group of current and former employees said in their state court complaint that Albertsons Companies Inc. didn't provide paychecks, pay stubs or any pay at all for several weeks after buying the stores back in September until the plaintiffs filed their complaint. About Albertsons Companies Albertsons Companies Inc. is an American grocery company founded and based in Boise, Idaho. In January 2015, it acquired Safeway Inc. for $9.2 billion. The newly merged company has more than 2,200 stores and over 250,000 employees, which makes it the second largest supermarket chain in North America after Kroger. * * * As reported in the Troubled Company Reporter on Dec. 3, 2015, Moody's Investors Service assigned a Corporate Family Rating of B1 and a Probability of Default Rating of B1-PD to Albertsons Companies, LLC the newly formed parent of Safeway Inc., Albertson's LLC and New Albertsons Inc. The rating outlook is stable. ALL PHASE STEEL: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: All Phase Steel Works, LLC 480 Bunnel Street Bridgeport, CT 06607 Case No.: 16-50257 Chapter 11 Petition Date: February 23, 2016 Court: United States Bankruptcy Court District of Connecticut (Bridgeport) Judge: Hon. Julie A. Manning Debtor's Counsel: James M. Nugent, Esq. HARLOW, ADAMS & FRIEDMAN, P.C. One New Haven Ave, Suite 100 Milford, CT 06460 Tel: (203) 878-0661 Fax: (203) 878-9568 Email: jmn@quidproquo.com Total Assets: $2.65 million Total Liabilities: $4.08 million Largest unsecured creditor: Bushwick Metals, LLC, $459,511 The petition was signed by Paul J. Pinto, member/manager. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ctb16-50257.pdf ALPHA NATURAL: State Street Has 0.04% Equity Stake -------------------------------------------------- State Street Corporation owns 0.04% shares of the common stock of Alpha Natural Resources, Inc., according to State Street's Schedule 13G/A filing with the Securities and Exchange Commission. State Street said it may be deemed to beneficially own 97,201 Alpha Natural shares. State Street, in a separate SEC filing, reported holding 0.3% shares of the common stock of Arch Coal, Inc. State Street may be reached at: Sean P. Newth Senior Vice President, Chief Accounting Officer and Controller STATE STREET CORPORATION State Street Financial Center One Lincoln Street Boston, MA 02111 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 AIRLINES: Bank Debt Trades at 3% Off --------------------------------------------- Participations in a syndicated loan under which American Airlines is a borrower traded in the secondary market at 97.15 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.75 percentage points from the previous week. American Airlines pays 275 basis points above LIBOR to borrow under the $1.867 billion facility. The bank loan matures on June 1, 2020 and carries Moody's Ba1 rating and Standard & Poor's BB+ rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. ARCH COAL: Committee Seeks to Undo Interim DIP Order ---------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Arch Coal, Inc., et al., moves for reconsideration of the order by the U.S. Bankruptcy Court for the Eastern District of Missouri authorizing on an interim basis, the Debtors' motion for approval of debtor-in-possession financing. At a hearing held on Jan. 12, 2016, the Debtors sought and obtained interim approval of the DIP Motion, and the Interim DIP Order was entered on Jan. 15. While the Interim DIP Order does not allow the Debtors to borrow under the DIP Facility or require the DIP Lenders to commit any funds, it does require the Debtors to "perform all obligations under the DIP Documents," including, among other things, payments of current interest -- as "adequate protection" -- to the prepetition lenders and the payment of significant fees to the DIP Lenders. The Committee notes that it was not formed until 13 days after the first day hearing and ten days after the entry of the Interim DIP Order. As a result, the Committee avers that the Interim DIP Order should not bind the Committee or its constituents to the terms of the DIP Facility on a final basis. Indeed, the Committee's review of the DIP Motion and Interim DIP Order revealed that the DIP Facility is unnecessary, and to the extent the relief granted in the Interim DIP Order is considered "final," it should be reconsidered. The Committee argues that: (i) the Debtors failed to establish that entry of the Interim DIP Order was necessary to avoid "immediate and irreparable harm," required under Bankruptcy Rule 4001, (ii) the financing fees approved therein are above-market, and (iii) the Interim DIP Order imposes an undue burden on the Committee's ability to pursue valuable estate claims released by the Debtors for no consideration. Thus, the Committee moves the Court to reconsider the Interim DIP Order, and to set aside the Interim DIP Order to the extent such order granted improper final relief. A full-text copy of the Interim DIP Order is available at http://bankrupt.com/misc/ARCHCOALdipord0115.pdf A copy of the Committee's memorandum in support of its motion for reconsideration is available for free at: http://bankrupt.com/misc/Arch_Coal_323_Memo_UCC_Int_DIP_Ord.pdf Counsel to the Official Committee of Unsecured Creditors: SPENCER FANE LLP Sherry K. Dreisewerd, Esq. Eric C. Peterson, Esq. Sherry K. Dreisewerd, Esq. 1 North Brentwood Boulevard, Suite 1000 St. Louis, MO 63105 Tel: (314) 863-7733 Fax: (314) 862-4656 E-mail: epeterson@spencerfane.com sdreisewerd@spencerfane.com - and - Scott J. Goldstein, Esq. Eric L. Johnson, Esq. 1000 Walnut, Suite 1400 Kansas City, MO 64106 Tel: (816) 474-8100 Fax: (816) 474-3216 E-mail: sgoldstein@spencerfane.com ejohnson@spencerfane.com - and - KRAMER LEVIN NAFTALIS & FRANKEL LLP Thomas Moers Mayer, Esq. Douglas Mannal, Esq. P. Bradley O'Neill, Esq. Andrew M. Dove, Esq. 1177 Avenue of the Americas New York, NY 10036 Tel: (212) 715-9100 Fax: (212) 715-8000 E-mail: tmayer@kramerlevin.com dmannal@kramerlevin.com boneil@kramerlevin.com adove@kramerlevin.com About Arch Coal Founded in 1969, Arch Coal, Inc., is a producer and marketer of coal in the United States, with operations and coal reserves in each of the major coal-producing regions of the Country. As of January 2016, it was the second-largest holder of coal reserves in the United States, owning or controlling over five billion tons of proven and probable reserves. As of the Petition Date, Arch employed approximately 4,600 full- and part-time employees. Arch Coal, Inc. and 71 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Mo. Case Nos. 16-40120 to 16-40191) on Jan. 11, 2016. The petition was signed by Robert G. Jones as senior vice president-law, general counsel and secretary. The Debtors disclosed total assets of $5.84 billion and total debts of $6.45 billion. Judge Charles E. Rendlen III has been assigned the case. The Debtors have engaged Davis Polk & Wardwell LLP as counsel, Bryan Cave LLP as local counsel, FTI Consulting, Inc. as restructuring advisor, PJT Partners as investment banker, and Prime Clerk LLC as notice, claims and solicitation agent The Official Committee of Unsecured Creditors tapped Spencer Fane LLP and Kramer Levin Naftalis & Frankel LLP as attorneys. ARCH COAL: Court Approves Wyoming Environment Pact -------------------------------------------------- Tiffany Kary and Tim Bross, writing for Bloomberg Brief - Distress & Bankruptcy, reported that Arch Coal Inc. will be able to reduce its obligation to clean up mines in Wyoming to $92 million from $485.5 million, helping it move forward with a plan to reorganize. According to the report, U.S. Bankruptcy Judge Charles E. Rendlen III in St. Louis approved the company's settlement with Wyoming on Feb. 23, overruling concerns from environmental groups, which had said the accord could leave the state about $400 million short on cleanup costs. "We're not solving this for the millennium," Judge Rendlen said, calling the environmental objections too hypothetical and emphasizing the need to keep the company operating so it could potentially reorganize, the report related. He said Arch has been a "good citizen" on reclamation issues in the past, the report further related. Judge Rendlen, in issuing his decision, cited Arch's $500 million average loss of liquidity in each of the past two years, the report said. "The last thing a judge wants to do is get in the way" of a company trying to survive, he said. About Arch Coal Founded in 1969, Arch Coal, Inc., is a producer and marketer of coal in the United States, with operations and coal reserves in each of the major coal-producing regions of the Country. As of January 2016, it was the second-largest holder of coal reserves in the United States, owning or controlling over five billion tons of proven and probable reserves. As of the Petition Date, Arch employed approximately 4,600 full- and part-time employees. Arch Coal, Inc. and 71 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Mo. Case Nos. 16-40120 to 16-40191) on Jan. 11, 2016. The petition was signed by Robert G. Jones as senior vice president-law, general counsel and secretary. The Debtors disclosed total assets of $5.84 billion and total debts of $6.45 billion. Judge Charles E. Rendlen III has been assigned the case. The Debtors have engaged Davis Polk & Wardwell LLP as counsel, Bryan Cave LLP as local counsel, FTI Consulting, Inc. as restructuring advisor, PJT Partners as investment banker, and Prime Clerk LLC as notice, claims and solicitation agent Daniel J. Casamatta, Acting U.S. Trustee for Region 13, appointed seven creditors to serve in the Official Committee of Unsecured Creditors in the Chapter 11 cases of Arch Coal, Inc., and its debtor affiliates. The Committee members are: 1. Kinder Morgan, Inc. Andrew Sheedy Vice President - Finance 1001 Louisiana Houston, TX 77002 Tel: (713) 369-8906 Fax: (713) 369-8775 2. UMB Bank, National Association Attn: Mark B. Flannagan 1010 Grand Boulevard Kansas City, MO 64106 Tel: (816) 860-3009 Fax: (816) 860-3029 3. GSO Capital Partners, LP Bradley Feingerts 345 Park Avenue, 31st Floor New York, NY 10154 Tel: (212) 390-2817 4. Nelson Brothers, LLC Nelson Brothers Mining Services, LLC Jason Baker 820 Shades Creek Parkway, Suite 2000 Birmingham, AL 35209 Tel: (205) 414-2900 Fax: (205) 802-5346 5. Bennett Management Corporation c/o James D. Bennett & Joseph von Meister 2 Stamford Plaza, Suite 1501 281 Tresser Blvd. Stamford, CT 06901-3259 Tel: (203) 353-3101 Fax: (203) 353-3113 6. Wyoming Machinery Company Matthew Polito P.O. Box 2335 Casper, WY 82602 Tel: (307) 472-1000 ext 1159 Fax: (307) 261-4486 7. Pension Benefit Guaranty Corp. Attn: John J. Butler, Financial Analyst 1200 K. Street, N.W. Washington, DC 20005-4026 Tel: (202) 326-4070 ext 3810 Fax: (202) 380-2074 The Committee is represented by: Eric C. Peterson, Esq. Sherry K. Dreisewerd, Esq. SPENCER FANE LLP 1 North Brentwood Boulevard Suite 1000 St. Louis, MO 63105 Tel: (314) 863-7733 Fax: (314) 862-4656 Email: epeterson@spencerfane.com sdreisewerd@spencerfane.com -- and -- Scott J. Goldstein, Esq. Eric L. Johnson, Esq. SPENCER FANE LLP 1000 Walnut, Suite 1400 Kansas City, MO 64106 Tel: (816) 474-8100 Fax: (816) 474-3216 Email: sgoldstein@spencerfane.com ejohnson@spencerfane.com -- and -- Thomas Moers Mayer, Esq. Douglas Mannal, Esq. P. Bradley O'Neill, Esq. Andrew M. Dove, Esq. KRAMER LEVIN NAFTALIS & FRANKEL LLP 1177 Avenue of the Americas New York, NY 10036 Tel: (212) 715-9100 Fax: (212) 715-8000 Email: tmayer@kramerlevin.com dmannal@kramerlevin.com boneil@kramerlevin.com adove@kramerlevin.com ARCH COAL: Creditors Offer Alternative $100-Mil. DIP Financing -------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Arch Coal, Inc., et al., is asking the U.S. Bankruptcy Court for the Eastern District of Missouri to deny final approval of the Debtor's motion to obtain $275 million of DIP financing. "The alleged benefits of the DIP Facility are illusory. Instead, the DIP Facility is merely a vehicle for the Debtors' prepetition secured creditors to extract fees, fund the current payment of postpetition interest on their prepetition loans, and irrevocably wrest control over the cases away from the Debtors and other stakeholders. As a result, the proposed DIP Facility should not be approved," the Committee said in the filing. The Committee avers that the Debtors should instead be required to pursue use of cash collateral or an alternative DIP structure. The Committee points out that: * The Debtors are not running out of cash. The Debtors have at least $620 million in cash on hand. * The Debtors do not need to borrow to fund operations. The bankruptcy filing has relieved the Debtors of the obligation to pay interest on over $5 billion of debt. In part, as a result, the Debtors' projections reflect that their operational cash burn -- less professional fees and the costs of the DIP -- will only be about $22 million -- or about 3.5% of their cash -- after 13 weeks. * The Debtors do not plan to draw on the DIP Facility in the near future. * The DIP Facility actually restricts the Debtors' liquidity. One of the key terms of the credit agreement blocks the Debtors' ability to use $575 million of their cash on hand, thereby dramatically limiting their access to cash. * The costs of the DIP Facility are high. Not only are certain of the fees above market, but as a price of their agreement, the secured lenders have extracted substantial control over the cases from the Debtors, all to the detriment of unsecured creditors. * The DIP Facility is not the Debtors' only option. Unlike many other cases where the proposed DIP is the only game in town and the estates must accept the lenders' terms or suffocate from lack of cash, the Debtors have two better alternatives. First, they could seek to operate on cash collateral alone, and not borrow at this time. Their unusually high cash balance and cash flowing operations make this more than a plausible option. Second, the Committee has identified creditors prepared to provide an alternative DIP that meets the Debtors' stated concerns, has far lower costs, and does not limit in the same way as the lenders' proposed DIP. The Committee said that on Feb. 12, 2016, it informed the Debtors that certain unsecured creditors have expressed interest in funding a $100 million alternative DIP facility that is less expensive, less restrictive, and more responsive to the Debtors' specific needs. The facility would be modeled after what the Debtors have proposed in the DIP Motion but, if implemented, would provide incremental savings of up to $148 million and equal or greater liquidity than the facility offered by the Prepetition Lenders. The primary modifications, and the corresponding benefits of the Alternative DIP, are: | Benefit of Term RSA DIP vs. Altern. DIP | Alternative DIP ---------------------------- | --------------- Size: $275M reduced to $100M | To the extent any DIP | financing is required, | $100 million is more | Than sufficient ------------------------------------------------------ Applicable | Margin: L+900 beginning after 4 | months, at latest, reduced | to L+700 with no availability | deadline | Savings of $19 million ------------------------------------------------------ Commitment | Fee: 500 bps reduced to 300 bps | Savings of $11 million ------------------------------------------------------ Unused | Line Fee: 500 bps reduced to 200 bps | Savings of $4 million ------------------------------------------------------ Minimum | Cash | Up to $100 million in Covenant: $575 million reduced to | Add'l availability: $300 million | * Alt. DIP: | ($620M + $100M)- $300M | = $420M |* RSA DIP: ($620M + | $275M) - $575M = $320M ------------------------------------------------------ Releases and | Stipulations: Releases and stipulations | in favor of Lenders | deleted | No surrender of estate | claims for no | consideration ------------------------------------------------------ Adequate | Protection | for | Prepetition | First | Lien Lenders: No current cash payment of | Savings of up to $116 interest; | million, lower Two counsel, not three, | professional fees, and For Lenders; | more flexible No milestones | chapter 11 process ------------------------------------------------------ DIP Fee | under PJT | Engagement | Letter: Financing fee of 75 bps would | Savings of apply to smaller facility | $1.3 million ------------------------------------------------------ Kinder Morgan joined in the Committee's objection. Kinder Morgan holds an unsecured claim against the Debtors in the amount of $59,625,000, according to the Debtors' List of 30 Largest Unsecured Creditors filed together with the bankruptcy petitions. "If there is any reason for Debtors to obtain post-petition financing, rather than using cash collateral, two substantial unsecured creditors have provided to the Committee and the Committee has provided to Debtors, a commitment for an alternative DIP Facility (the "Alternative DIP Facility") that would cost far less than the Secured Lender DIP Facility (lower fees and absence of millions of dollars in adequate protection payments), ties up less of Debtors' cash through more favorable liquidity restrictions, and contains none of the impediments to the parties' performance of their duties under the Bankruptcy Code to achieve the best result for all, that are built into the Secured Creditor DIP Facility," Kinder Morgan argued. Proposed $275-Mil. Financing Arch Coal, et al., are seeking Court approval to access a $275 million delayed draw term loan facility provided by a syndicate of financial institutions. Wilmington Trust, National Association, is the administrative agent and collateral agent under the DIP Facility. The Debtors have said their liquidity is anticipated to decline considering the deterioration of the coal market that would place them in a difficult position to continue operations and settle their obligations of approximately $2.2 billion in secured indebtedness and an approximately $2.9 billion in aggregate principal amount of senior unsecured notes. Among the significant features of the Debtors' DIP Financing are: -- it has delayed draw feature minimizing interest expense; -- it requires that the Debtors satisfy certain milestones for progress in the Chapter 11 case; and -- will allow the Debtors to incur up to $75 million of superpriority claims in connection with the Debtors' self-bonded obligations to certain governmental authorities, particularly self-bonded reclamation obligations to the Wyoming Department of Environmental Quality's Land Quality Division. Moreover, the DIP Financing will permit the Debtors to continue selling and/or contributing receivables pursuant to an amendment and restatement of the Debtors' existing $200 million receivables securitization facility to a non-Debtor, Arch Receivable Company, LLC, pursuant to which the Debtors may obtain letters of credit to secure the payment or performance of certain obligations in respect of, among other things, crucial environmental an workers' compensation obligations owed to state and federal regulatory agencies, surety bond providers, insurers and other third parties. The DIP accrues interest at (a) LIBOR Rate + 900 bps (subject to a LIBOR floor of 1.0%) or (b) the Base Rate + 800 bps. The DIP matures on the earliest of (i) January 31, 2017, (ii) the consummation of the sale of all or substantially all of the assets of the Borrower and the Guarantors pursuant to section 363 of the Bankruptcy Code and (iii) the date of the substantial consummation of a Reorganization Plan that is confirmed pursuant to an order of the Bankruptcy Court. Attorneys for Kinder Morgan: J. Talbot Sant, Jr., Esq. Ira M. Potter, Esq. Mark R. Sanders, Esq. AFFINITY LAW GROUP, LLC 1610 Des Peres Road, Suite 100 St. Louis, MO 63131 Tel: (314) 872-3333 Fax: (314) 872-3365 E-mail: tsant@affinitylawgrp.com ipotter@affinitylawgrp.com msanders@affinitylawgrp.com - and - Alfredo R. Perez, Esq. Patrick W. Thompson, Esq. WEIL, GOTSHAL & MANGES LLP 700 Louisiana Houston, TX 77002-2784 Tel: (713) 546-5000 E-mail: Alfredo.perez@weil.com Patrick.thompson@weil.com Arch Coal, Inc.'s attorneys: Marshall S. Huebner, Esq. Brian M. Resnick, Esq. Michelle M. McGreal, Esq. Kevin J. Coco, Esq. DAVIS POLK & WARDWELL LLP 450 Lexington Avenue New York, NY 10017 Telephone: (212) 450-4000 Facsimile: (212) 607-7983 E-mail: marshall.huebner@davispolk.com brian.resnick@davispolk.com michelle.mcgreal@davispolk.com kevin.coco@davispolk.com - and - Lloyd A. Palans, Esq. Brian C. Walsh, Esq. Cullen K. Kuhn, Esq. Laura Uberti Hughes, Esq. BRYAN CAVE LLP One Metropolitan Square 211 N. Broadway, Suite 3600 St. Louis, MO 63102 Telephone: (314) 259-2000 Facsimile: (314) 259-2020 E-mail: lapalans@bryancave.com brian.walsh@bryancave.com ckkuhn@bryancave.com laura.hughes@bryancave.com About Arch Coal Founded in 1969, Arch Coal, Inc., is a producer and marketer of coal in the United States, with operations and coal reserves in each of the major coal-producing regions of the Country. As of January 2016, it was the second-largest holder of coal reserves in the United States, owning or controlling over five billion tons of proven and probable reserves. As of the Petition Date, Arch employed approximately 4,600 full- and part-time employees. Arch Coal, Inc. and 71 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Mo. Case Nos. 16-40120 to 16-40191) on Jan. 11, 2016. The petition was signed by Robert G. Jones as senior vice president-law, general counsel and secretary. The Debtors disclosed total assets of $5.84 billion and total debts of $6.45 billion. Judge Charles E. Rendlen III has been assigned the case. The Debtors have engaged Davis Polk & Wardwell LLP as counsel, Bryan Cave LLP as local counsel, FTI Consulting, Inc. as restructuring advisor, PJT Partners as investment banker, and Prime Clerk LLC as notice, claims and solicitation agent The Official Committee of Unsecured Creditors tapped Spencer Fane LLP and Kramer Levin Naftalis & Frankel LLP as attorneys. ARCH COAL: Russell R. Johnson III Files Verified Statement ---------------------------------------------------------- Russell R. Johnson III of the Law Firm of Russell R. Johnson III, PLC, filed a verified statement of his firm's multiple representations in Arch Coal, Inc., et al.'s Chapter 11 cases of these utility companies that provide postpetition utility goods/services to the Debtors: A. Appalachian Power Company d/b/a/ American Electric Power Kentucky Power Company d/b/a/ American Electric Power Attn: Gregory Holland American Electric Power 40 Franklin Road P.O. Box 2021 Roanoke, VA 24022-2121 B. Monongahela Power Company Potomac Edison Company Attn: Kathy M. Hofacre FirstEnergy Corp 76 S. Main ST. A-GO-15 Akron, OH 44308 C. Virginia Electric and Power Company Attn: Christine G. Heslinga, Esq. Dominion Resources Services, Inc. 120 Tredegar Street Richmond, VA 23219 Monongahela Power Company and Potomac Edison Company have unsecured claims against the Debtor arising from prepetition utility usage. Appalachian and Kentucky Power held prepetition deposits that they will make claims upon for payment of the Debtors' prepetition debt. Virginia Electric is a party to contracts with the Debtors. The firm can be reached at: Russell R. Johnson III, Esq. LAW FIRM OF RUSSELL R. JOHNSON III, PLC 2258 Wheatlands Drive Manakin-Sabot, VA 23103 Telephone: (804) 749-8861 Facsimile: (804) 749-8862 E-mail: russj4478@aol.com About Arch Coal Founded in 1969, Arch Coal, Inc., is a producer and marketer of coal in the United States, with operations and coal reserves in each of the major coal-producing regions of the Country. As of January 2016, it was the second-largest holder of coal reserves in the United States, owning or controlling over five billion tons of proven and probable reserves. As of the Petition Date, Arch employed approximately 4,600 full- and part-time employees. Arch Coal, Inc. and 71 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Mo. Case Nos. 16-40120 to 16-40191) on Jan. 11, 2016. The petition was signed by Robert G. Jones as senior vice president-law, general counsel and secretary. The Debtors disclosed total assets of $5.84 billion and total debts of $6.45 billion. Judge Charles E. Rendlen III has been assigned the case. The Debtors have engaged Davis Polk & Wardwell LLP as counsel, Bryan Cave LLP as local counsel, FTI Consulting, Inc. as restructuring advisor, PJT Partners as investment banker, and Prime Clerk LLC as notice, claims and solicitation agent The Official Committee of Unsecured Creditors tapped Spencer Fane LLP and Kramer Levin Naftalis & Frankel LLP as attorneys. ARCH COAL: State Street Has 0.3% Equity Stake --------------------------------------------- State Street Corporation owns 0.3% shares of the common stock of Arch Coal, Inc., according to State Street's Schedule 13G/A filing with the Securities and Exchange Commission. State Street said it may be deemed to beneficially own 57,391 Arch Coal shares. State Street, in a separate SEC filing, disclosed holding a 0.04% equity stake in Alpha Natural Resources, Inc. State Street may be reached at: Sean P. Newth Senior Vice President, Chief Accounting Officer and Controller STATE STREET CORPORATION State Street Financial Center One Lincoln Street Boston, MA 02111 About Arch Coal Founded in 1969, Arch Coal, Inc., is a producer and marketer of coal in the United States, with operations and coal reserves in each of the major coal-producing regions of the Country. As of January 2016, it was the second-largest holder of coal reserves in the United States, owning or controlling over five billion tons of proven and probable reserves. As of the Petition Date, Arch employed approximately 4,600 full- and part-time employees. Arch Coal, Inc. and 71 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Mo. Case Nos. 16-40120 to 16-40191) on Jan. 11, 2016. The petition was signed by Robert G. Jones as senior vice president-law, general counsel and secretary. The Debtors disclosed total assets of $5.84 billion and total debts of $6.45 billion. Judge Charles E. Rendlen III has been assigned the case. The Debtors have engaged Davis Polk & Wardwell LLP as counsel, Bryan Cave LLP as local counsel, FTI Consulting, Inc. as restructuring advisor, PJT Partners as investment banker, and Prime Clerk LLC as notice, claims and solicitation agent Daniel J. Casamatta, Acting U.S. Trustee for Region 13, appointed seven creditors to serve on the Official Committee of Unsecured Creditors. The Committee is represented by Eric C. Peterson, Esq., and Sherry K. Dreisewerd, Esq., at Spencer Fane LLP; and Thomas Moers Mayer, Esq., Douglas Mannal, Esq., P. Bradley O'Neill, Esq., and Andrew M. Dove, Esq., at Kramer Levin Naftalis & Frankel LLP. ASPEN GROUP: Released From DoE's Letter of Credit Requirement ------------------------------------------------------------- Aspen Group, Inc., announced that the irrevocable letter of credit of $1,122,485 previously imposed on Aspen University by the Department of Education has been released in its entirety effective immediately. Aspen University previously chose to post a letter of credit with the DoE in the amount of $1,122,485 which equaled 25% of the HEA Title IV program funds received by the institution following its fiscal year ending April 30, 2014, in order to remain provisionally certified for a period of up to three complete award years. In late-July, 2015, Aspen reported its financial results to the DoE for its fiscal year ending April 30, 2015. These financial statements were recently confirmed by the DoE to yield a passing composite score required by the DoE to meet the financial responsibility standards set forth in regulations at 34 C.F.R. Section 668.171. "We're pleased to have access to significantly more working capital now that all our cash is unrestricted," said Aspen Group chairman and CEO Michael Mathews. "This will allow us to further accelerate the growth of our Nursing programs via our debtless education solution," continued Mathews. About Aspen Group Denver, Colo.-based Aspen Group, Inc., was founded in Colorado in 1987 as the International School of Information Management. On Sept. 30, 2004, it was acquired by Higher Education Management Group, Inc., and changed its name to Aspen University Inc. On May 13, 2011, the Company formed in Colorado a subsidiary, Aspen University Marketing, LLC, which is currently inactive. On March 13, 2012, the Company was recapitalized in a reverse merger. Aspen's mission is to become an institution of choice for adult learners by offering cost-effective, comprehensive, and relevant online education. Approximately 88 percent of the Company's degree-seeking students (as of June 30, 2012) were enrolled in graduate degree programs (Master or Doctorate degree program). Since 1993, the Company has been nationally accredited by the Distance Education and Training Council, a national accrediting agency recognized by the U.S. Department of Education. Aspen Group reported a net loss of $4.2 million on $5.2 million of revenues for the year ended April 30, 2015, compared to a net loss of $5.3 million on $3.9 million of revenues for the year ended April 30, 2014. As of Oct. 31, 2015, the Company had $5.25 million in total assets, $3.93 million in total liabilities and $1.31 million in total stockholders' equity. AVAGO TECHNOLOGIES: Bank Debt Trades at 2% Off ---------------------------------------------- Participations in a syndicated loan under which Avago Technologies is a borrower traded in the secondary market at 97.74 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.60 percentage points from the previous week. Avago Technologies pays 350 basis points above LIBOR to borrow under the $9.75 billion facility. The bank loan matures on Nov. 13, 2022 and carries Moody's Ba1 rating and Standard & Poor's BBB rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. BAILEY TOOL: U.S. Trustee Forms Three-Member Committee ------------------------------------------------------ The Office of the U.S. Trustee on Feb. 23 appointed three creditors of Bailey Tool & Manufacturing Company and its affiliated debtors to serve on the official committee of unsecured creditors. The unsecured creditors are: (1) Mandel Metals, Inc. Attn: Jayson Fetters 11620 Goodnight Lane, Ste. 200 Dallas, TX 75229 214-905-2900 214-905-3900-fax jfetters@mandelmetals.com (2) Unimet Metal Supply Attn: Steven Andreazza 150 Lackawanna Avenue Parsippany, NJ 07054 973-673-5600-ext 228 973-334-0422-fax stevea@unimetmetalsupply.com (3) O'Neal Flat Rolled Metals, LLC Attn: Cyndi Wallin 1229 South Fulton Avenue Brighton, CO 80601 303-655-4534 877-335-7485-fax cyndi.wallin@ofrmetals.com Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About Bailey Tool On February 1, 2016, Bailey Tool & Manufacturing Company and its affiliated debtors filed for Chapter 11 protection in the United States Bankruptcy Court for the Northern District of Texas (Dallas). The cases are assigned to Judge Barbara J. Houser. The petition was signed by John Buttles, president. . The Debtors have tapped Franklin Hayward LLP as their legal counsel. The Debtors estimated both assets and liabilities in the range of $1 million to $10 million. BATS GLOBAL: S&P Revises Outlook to Stable & Affirms 'BB-' Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its outlook on Bats Global Markets Inc. (Bats) to stable from negative. At the same time, S&P affirmed its 'BB-' ratings on the company, including S&P's issuer credit and issue ratings. "We revised our outlook on Bats to stable to reflect the reduction in the company's leverage since March 2015," said Standard & Poor's credit analyst Olga Roman. Following the spike in debt in March 2015, when the company issued debt to finance the acquisition of Hotspot FX (an institutional spot foreign exchange platform), Bats has used its strong earnings to significantly reduce its leverage through mandatory loan amortization payments and additional debt repayments. S&P expects the company to operate with debt to adjusted EBITDA below 3x and FFO to debt above 20% over the next 12 to 18 months. Although S&P expects the company's debt-to-adjusted EBITDA ratio to decline, it expects its FFO-to-debt ratio to remain below 30% in the next year, which is in line with the current rating. When these two ratios diverge, S&P typically gives priority to the FFO-to-debt ratio. S&P's assessment of Bats' business risk profile reflects its solid market position in U.S. and European equities, globally diversified customer mix, and scalable technology platforms. However, the company's revenue still depends heavily on the trading volumes of the U.S. equity markets. Additionally, S&P believes that Bats, like most other exchanges, is highly vulnerable to operational risk. Bats is the No. 2 equities market operator in the U.S with a market share of 21.1% during the fourth quarter of 2015, slightly up from the same quarter in 2014. The company is also the leading trading venue for exchange traded funds in the U.S. (with a market share above 40% among exchange volumes). In Europe, Bats is the largest equities market operator, with 25.1% market share in the last quarter of 2015, significantly up from 22.4% in the same quarter in 2014. Finally, Bats' U.S. equity options market share picked up substantially in 2015, reaching 8.9% during the fourth quarter of 2015, compared with 6.3% one year ago. As of Dec. 31, 2015, U.S. equities represented 66% of net revenues on a pro forma basis, European equities were 17%, foreign exchange was 10%, and U.S. equity options 7%; 83% of net revenue was generated in the U.S. and the remaining in Europe. Nontransaction revenue was 55% of net revenue for the year ended Dec. 31, 2015. S&P's issuer credit rating on Bats is two notches lower than S&P's stand-alone credit profile, reflecting the structural subordination between Bats' operating subsidiaries and the debt-issuing nonoperating holding company. The stable rating outlook reflects S&P's expectation that Bats will maintain its competitive position in the U.S. and European markets and will operate with FFO to debt of 20%-30% and debt to adjusted EBITDA below 3x over the next 12-18 months. If Bats continues to operate with a debt-to-adjusted EBITDA ratio of less than 3x and improves its FFO-to-debt ratio to more than 30%, S&P could upgrade the company. S&P could lower the rating if the company's earnings decline or if it pursues an aggressive financial policy, causing its debt to adjusted EBITDA to increase above 4x and FFO to debt to decline below 20%. Additionally, S&P could lower the ratings if the company encounters significant operational issues that could weaken its market positon. CAESARS ENTERTAINMENT: Loss Narrows in Fourth Quarter 2015 ---------------------------------------------------------- Christopher Palmeri, writing for Bloomberg Brief - Distress & Bankruptcy, reported that Caesars Entertainment Corp., the casino operator whose largest unit is in bankruptcy, said the loss at its remaining properties narrowed to $76 million in the fourth quarter, after adjustments, as hotel room rates rose. According to the report, the loss compared with a loss of $262 million a year earlier, the Las Vegas-based company, the largest owner of casinos in the U.S., said in a statement on Feb. 23. Revenue climbed 8.7 percent to $1.1 billion in the quarter, while earnings before interest, taxes, depreciation and amortization jumped 52 percent to $305 million, the report said. 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. CASA EN DENVER: Has Access to Cash Collateral Until March 22 ------------------------------------------------------------ Judge Robert A. Mark has so far entered eight interim orders authorizing Casa Media Partners, LLC, and Casa en Denver, Inc., to use cash collateral. The eighth interim order was entered Jan. 25, 2016. The latest interim order provides that the Debtors have access to cash collateral through the final hearing on the Debtors' motion to use cash collateral. The final hearing is scheduled for March 22, 2016 at 2:00 p.m., United States Bankruptcy Court, 301 N. Miami Avenue, Courtroom 4, Miami, FL 33130. Per agreement of the parties, the stay of the Illinois Litigation referenced in paragraph 5 of the "Final Order Authorizing Debtors to Enter Into Working Capital Contribution Commitment Agreement" will be extended through and including the continued Final Hearing date. The Debtors stated in their motion to use cash collateral that Casa Media allegedly owes Bank of Commerce $4,229,320 while Casa en Denver allegedly owes the Bank approximately $7,773,489. The Debtor proposes to grant the Bank replacement liens on postpetition property acquired through the use of cash collateral. About Casa en Denver Casa Media Partners, LLC, and Casa en Denver, Inc., commenced Chapter 11 bankruptcy cases (Bankr. S.D. Fla. Case Nos. 15-16741 and 15-16746) in Miami, Florida on April 15, 2015. The petition was signed by Juan Salvador Gonzalez, the chief financial officer. Judge Hon. Robert A Mark presides over the cases. The Debtors are represented by Kristopher Aungst, Esq., at Tripp Scott, P.A., as their counsel. CASPIAN SERVICES: Incurs $16.8 Million Net Loss in Dec. 31 Qtr. --------------------------------------------------------------- Caspian Services, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $16.8 million on $3.65 million of total revenues for the three months ended Dec. 31, 2015, compared to a net loss of $2.86 million on $6.09 million of total revenues for the same period in 2014. As of Dec. 31, 2015, the Company had $33.8 million in total assets, $112 million in total liabilities, all current, and a $77.9 million total deficit. At Dec. 31, 2015, the Company had cash on hand of $449,000 compared to cash on hand of $1,372,000 at Sept. 30, 2015. At Dec. 31, 2015, total current liabilities exceeded total current assets by $102,975,000. This was mainly attributable to the Balykshi and MOBY Loans, the put option and the Investor's Notes being classified as current liabilities. Bankruptcy Warning "To our knowledge, as of the date of this report neither EBRD nor Investor has sought to accelerate our obligations to them. Should EBRD seek to collect the Balykshi Loan or to accelerate the MOBY Loan or the put option, or to enforce the MOBY Loan Guarantee or the Company corporate guarantee, or any of our other financial obligations to EBRD, or should Investor seek to accelerate repayment of the Consolidated Note we would have insufficient funds to satisfy any of those obligations, collectively or individually. If we are unable to satisfy those obligations, EBRD or Investor could seek any legal remedy available to it or him to obtain repayment, including forcing the Company into bankruptcy, or in the case of EBRD, foreclosing on the loan collateral, which includes the marine base and other assets and bank accounts of Balykshi and CRE, enforcing the Company corporate guarantee, and pursuing the other assets of the Company," the Company stated in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/0Vnxfd About Caspian Services Headquartered in Salt Lake City, Caspian Services, Inc., was incorporated under the laws of the state of Nevada on July 14, 1998. Since February 2002 the Company has concentrated its business efforts to provide diversified oilfield services to the oil and gas industry in western Kazakhstan and the Caspian Sea, including providing a fleet of vessels, onshore, transition zone and marine seismic data acquisition and processing services and a marine supply and support base in the port of Bautino, in Bautino Bay, Kazakhstan. Caspian reported a net loss of $33.2 million on $16.4 million of total revenues for the year ended Sept. 30, 2015, compared to a net loss of $18.8 million on $29.9 million of total revenues for the year ended Sept. 30, 2014. Haynie & Company, P.C., in Salt Lake City, Utah, the Company's independent accounting firm, included a "going concern" qualification in its report on the consolidated financial statements for the year ended Sept. 30, 2015. CEQUEL COMMUNICATIONS: Bank Debt Trades at 2% Off ------------------------------------------------- Participations in a syndicated loan under which Cequel Communications Holdings is a borrower traded in the secondary market at 97.60 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.67 percentage points from the previous week. Cequel Communications pays 325 basis points above LIBOR to borrow under the $2.313 billion facility. The bank loan matures on Dec. 26, 2022 and Moody's and Standard & Poor's did not give any rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. CHESAPEAKE ENERGY: To Cover $500-Mil. Debt Tab ---------------------------------------------- Joe Carroll, writing for Bloomberg Brief - Distress & Bankruptcy, reported that Chesapeake Energy Corp. said it intends to pay a half-billion dollar debt that's coming due in three weeks after exceeding its first-quarter target for asset sales. According to the report, the company has signed agreements to divest $700 million in gas fields and other assets, overshooting the $200 million to $300 million target communicated to investors as recently as Dec. 16, the Oklahoma City-based shale driller said in a statement on Feb. 24. The company plans another $500 million to $1 billion in divestitures in 2016, the report said. The Troubled Company Reporter, citing Bloomberg Brief, previously reported that Chesapeake Energy said it has no plans to seek bankruptcy protection, dismissing a report that wiped out half the U.S. natural gas driller's value. According to the report, Kirkland & Ellis LLP has served as one of Chesapeake's counsel since 2010 and continues to advise the company as it seeks to further strengthen its balance sheet following its recent debt exchange, Chesapeake said in a statement Feb. 8. The company's ability to pay off a half-billion dollars in debt in March hinges on how much of a $1.76 billion nest egg and $4 billion credit line has already been burned by the second-largest U.S. natural gas producer, the report said. As previously reported by the TCR in December 2015, citing Dow Jones' Daily Bankruptcy Review, Chesapeake is working with restructuring advisers at Evercore Partners Inc. to shore up its balance sheet as commodity prices extend their decline. According to the DBR report, citing people familiar with the matter, Evercore bankers are advising the natural-gas producer on potential measures to reduce its $11.6 billion debt load, such as exchanging existing bonds at a discount for new securities or selling assets. * * * The Troubled Company Reporter, on Jan. 27, 2016, reported that Standard & Poor's Ratings Services lowered its corporate credit rating on Oklahoma City-based exploration and production company Chesapeake Energy Corp. to 'CCC+' from 'B'. The outlook is negative. At the same time, S&P lowered the senior unsecured debt ratings to 'CCC-' from 'CCC+'. The '6' recovery rating is unchanged, reflecting S&P's expectation for negligible recovery (0% to 10%) in the event of a payment default. CHINA GINSENG: Incurs $1.77 Million Net Loss in Second Quarter -------------------------------------------------------------- China Ginseng Holdings, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.77 million on $40,121 of revenues for the three months ended Dec. 31, 2015, compared to a net loss of $746,354 on $146,972 of revenues for the same period in 2014. For the six months ended Dec. 31, 2015, the Company reported a net loss of $2.52 million on $61,746 of revenues compared to a net loss of $1.31 million on $152,214 of revenues for the six months ended Dec. 31, 2014. As of Dec. 31, 2015, China Ginseng had $8.49 million in total assets, $19.93 million and a total stockholders' deficit of $11.97 million. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ZVDetZ About China Ginseng Changchun City, China-based China Ginseng Holdings, Inc., conducts business through its four wholly-owned subsidiaries located in China. The Company has been granted 20-year land use rights to 3,705 acres of lands by the Chinese government for ginseng planting and it controls, through lease, approximately 750 acres of grape vineyards. However, recent harvests of grapes showed poor quality for wine production which indicates that the vineyards are no longer suitable for planting grapes for wine production. Therefore, the Company has decided not to renew its lease for the vineyards with the Chinese government upon expiration in 2013 and, going forward, it intends to purchase grapes from the open market in order to produce grape juice and wine. China Ginseng reported a net loss of $3.90 million on $272,600 of revenue for the year ended June 30, 2015, compared with a net loss of $4.76 million on $2.61 million of revenue for the year ended June 30, 2014. Cowan, Gunteski & Co., P.A., in Tinton Falls, NJ, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, citing that the Company had net losses of $3.90 million and $4.76 million for the years ended June 30, 2015 and 2014, respectively, an accumulated deficit of $18.1 million at June 30, 2015 and a working capital deficit of $16.5 million at June 30, 2015, and there are existing uncertain conditions the Company faces relative to its ability to obtain working capital and operate successfully. These conditions raise substantial doubt about its ability to continue as a going concern. CLEARWATER PAPER: S&P Raises CCR to 'BB+', Outlook Stable --------------------------------------------------------- Standard & Poor's Ratings Services said it raised its corporate credit rating on Spokane, Wash.-based Clearwater Paper Corp. to 'BB+' from 'BB'. At the same time, S&P raised its issue-level ratings on the company's senior unsecured notes, due 2023 and 2025, to 'BB+' from 'BB', on par with S&P's corporate credit rating. The recovery rating on the senior unsecured debt is '3', indicating S&P's expectation for meaningful (50% to 70%; high end of the range) recovery to debtholders in the event of default. "Our stable outlook reflects our expectations that despite flat or slightly lower revenues over the next year, continued improvement in EBITDA margins from its strategic initiatives aimed at increasing efficiency in its consumer products segment will hold leverage in the high-2x area and drive incremental improvement in the company's cash flow measures," said Standard & Poor's credit analyst Christopher Andrews. S&P could lower the rating to 'BB' if it believes leverage will be sustained above 3x, which could occur if the company's capital projects do not produce the expected production efficiencies or if commodity paperboard or other inputs experience a protracted unfavorable pricing environment. S&P views a positive rating action as highly unlikely over the next 12 months, due to its forecast of leverage to remain well above 2x and FFO to debt of less than 30% while the company remains exposed to commodity input costs and is much smaller than investment grade-rated tissue and paperboard peers. CLEVELAND BIOLABS: Reports 2015 Financial Results ------------------------------------------------- Cleveland Biolabs, Inc., reported a net loss of $1.66 million on $1.26 million of revenues for the quarter ended Dec. 31, 2015, compared to net income of $10.7 million on $1.39 million of revenues for the same period in 2014. For the year ended Dec. 31, 2015, the Company reported a net loss of $13.04 million on $2.70 million of revenues compared to net income of $35,366 on $3.70 million of revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had $20.9 million in total assets, $5.84 million in total liabilities and $15.0 million in total stockholders' equity. As of Dec. 31, 2015, the Company had $19.6 million in cash, cash equivalents and short-term investments, which, based on the Company's current operational plan, is expected to fund the Company's operating requirements beyond one year. Yakov Kogan, Ph.D., MBA, chief executive officer, stated, "The past year was one of significant momentum and accomplishment for CBLI. We strengthened our financial resources through the addition of a $25 million strategic investor and the award of $15.8 million in funding from the Department of Defense Congressionally Directed Medical Research Programs for continued development of entolimod's biodefense indication. We streamlined our corporate structure with the sale of Incuron, while retaining a royalty on Incuron's future success. We achieved several major milestones with our development programs, including the submission of a pre-Emergency Use Authorization (pre-EUA) dossier for entolimod as a radiation countermeasure and presentation of clinical oncology data for entolimod at the 2015 annual meeting of the American Society of Clinical Oncology. And, we commenced or continued clinical studies designed to further substantiate the potential of our Toll-like receptor agonists, entolimod, CBLB612 and Mobilan." "The pursuit of commercialization for entolimod as a radiation countermeasure remains our top priority," continued Dr. Kogan. "We continue to work with the U.S. Food and Drug Administration to facilitate the review of our pre-EUA dossier. Products with pre-EUA status may be purchased by certain US government stakeholders for stockpiling in the event of a disaster and we believe achievement of this status may also increase interest from foreign governments. We recently initiated a regulatory process with the European Medicines Agency, which has granted entolimod orphan drug designation for the treatment of acute radiation syndrome, and we continue to evaluate other foreign markets." A full-text copy of the press release is available for free at: http://is.gd/LJ6VHo About Cleveland BioLabs Cleveland BioLabs, Inc. (NASDAQ: CBLI) is a biopharmaceutical company developing novel approaches to activate the immune system and address serious unmet medical needs. The Buffalo, New York-based company's proprietary platform of toll-like immune receptor activators has applications in radiation mitigation, oncology immunotherapy and vaccines. COFFEE CREEK: Case Summary & 4 Unsecured Creditors -------------------------------------------------- Debtor: Coffee Creek MRI Development, LLC 5940 W. Touhy Ave., #240 Niles, IL 60714-4689 Case No.: 16-20364 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: February 23, 2016 Court: United States Bankruptcy Court Northern District of Indiana (Hammond Division) Judge: Hon. Philip J. Klingeberger Debtor's Counsel: Jacqueline S. Homann, Esq. JONES OBENCHAIN, LLP 202 S. Michigan St., 600 Key Bank Bldg. P. O. Box 4577 South Bend, IN 46634-4577 Tel: (574) 233-1194 E-mail: jshbankruptcy@jonesobenchain.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million Largest unsecured creditor: Martin Hall, $230,411 The petition was signed by Martin Hall, member. A list of the Debtor's four largest unsecured creditors is available for free at http://bankrupt.com/misc/innb16-20364.pdf CONDADO RESTAURANT: Case Summary & 21 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Condado Restaurant Group, Inc. 1077 Ashford Ave. San Juan, PR 00907 Case No.: 16-01329 Chapter 11 Petition Date: February 24, 2016 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Javier A Vega Villalba, Esq. WEINSTEIN BACAL & MILLER, PSC Gonzalez Padin Bldg Penthouse 154 Rafael Cordero San Juan, PR 00901 E-mail: jvv@w-bmlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million Largest unsecured creditor: Banco De Dessarrollo, $873,764 The petition was signed by Dayn Smith, president. A list of the Debtor's 21 largest unsecured creditors is available for free at http://bankrupt.com/misc/prb16-01329.pdf COUDERT BROTHERS: Orrick to Pay $165K to Settle China Biz Licenses ------------------------------------------------------------------ Pete Brush at Bankruptcy Law360 reported that Orrick Herrington & Sutcliffe LLP will pay a Chapter 11 administrator $165,000 to settle claims that it improperly squeezed a $2.7 million price break from Coudert Brothers LLP for Chinese business licenses before the defunct law firm plunged into bankruptcy in 2006, a Manhattan federal judge heard on Feb. 17, 2016. The pennies-on-the-dollar deal before U.S. District Judge Colleen McMahon came on the morning of a single-day bench trial that was supposed to sort out the 2010 lawsuit brought by plan administrator Development Specialists Inc. About Coudert Brothers Coudert Brothers LLP was an international law firm specializing in complex cross-border transactions and dispute resolution. The firm had operations in Australia and China. Coudert filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 06-12226) on Sept. 22, 2006. John E. Jureller, Jr., Esq., and Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, represented the Debtor in its restructuring efforts. Brian F. Moore, Esq., and David J. Adler, Esq., at McCarter & English, LLP, represented the Official Committee of Unsecured Creditors. Coudert scheduled total assets of $30.0 million and total debts of $18.3 million as of the Petition Date. The Bankruptcy Court in August 2008 signed an order confirming Coudert's chapter 11 plan. The Plan contemplated on paying 39% to unsecured creditors with $26 million in claims. Coudert has been succeeded by Development Specialists, Inc. in its capacity as Plan Administrator under the confirmed chapter 11 plan. CURTIS JAMES JACKSON: Says Creditors' Plan Indentured Servitude --------------------------------------------------------------- Y. Peter Kang at Bankruptcy Law360 reported that rapper 50 Cent urged a Connecticut federal judge on Feb. 15, 2016, to reject a bankruptcy plan proposed by SunTrust Bank and other creditors owed more than $30 million, saying the plan amounts to "indentured servitude." 50 Cent, whose legal name is Curtis James Jackson III, filed an objection in Connecticut bankruptcy court asking U.S. Bankruptcy Judge Ann M. Nevins to reject the disclosure statement of the bankruptcy plan proposed by creditors Sleek Audio LLC, SunTrust and Lastonia Leviston, saying it violates his constitutional rights. 50 Cent, whose legal name is Curtis James Jackson III, filed a motion Feb. 3, asking U.S. Bankruptcy Judge Ann M. Nevins to approve an amendment to his brand collaboration agreement with Jim Beam Brands, saying it will add a year to his contract. Curtis James Jackson, III, aka 50 Cent, filed for Chapter 11 bankruptcy protection (Bankr. D. Conn. Case No. 15-21233) on July 13, 2015. DETROIT, MI: Schools Hit Debt Limit, Risk Being Unable to Pay Bills ------------------------------------------------------------------- Darrell Preston, writing for Bloomberg Brief - Distress & Bankruptcy, reported that Detroit's public schools have reached their borrowing limit and won't be able to take on more debt to pay bills when money runs out in April if Michigan lawmakers don't restructure some of its $2 billion of obligations, state officials said. According to the report, though the district has borrowed when it ran out of money before, it has reached the statutory limit of its ability to do that, said Terry Stanton, spokesman for Michigan's Treasury Department. This month the amount of state aid that's siphoned off to service debt will jump to roughly what is spent on salaries and benefits, pressuring the district's ability to pay its bills in April, the report related. The district may have to stop paying workers if lawmakers fail to reach an agreement, the report cited Peter Wills, chief of staff to state Senator Goeff Hansen, the Republican sponsor of restructuring legislation, as saying. About the City of Detroit The City of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit estimated more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The City's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. A nine-member official committee of retired workers appointed in the case is represented by Dentons US LLP. Lazard Freres & Co. LLC serves as the Retiree Committee's financial advisor. Detroit filed a notice that the effective date of its bankruptcy-exit plan occurred on Dec. 10, 2014. Judge Steven Rhodes on Nov. 12, 2014, entered an order confirming the Eighth Amended Plan for the Adjustment of Debts of the City of Detroit. Thomas Tucker, a federal bankruptcy judge since 2003, took over Detroit's landmark bankruptcy case following the retirement of Judge Rhodes. DEX MEDIA: Bank Debt Trades at 66% Off -------------------------------------- Participations in a syndicated loan under which Dex Media East LLC is a borrower traded in the secondary market at 44.30 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 2.40 percentage points from the previous week. Dex Media pays 250 basis points above LIBOR to borrow under the $950 million facility. The bank loan matures on Oct. 24, 2016 and Moody's and Standard & Poor's did not give any ratings. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. DORAL FINANCIAL: Committee Seeks to Hire McConnell as Tax Counsel ----------------------------------------------------------------- The Committee of Unsecured Creditors of Doral Financial Corporation seeks to retain the law firm of McConnell Valdes LLC as special Puerto Rico tax counsel. McConnell Valdes has agreed to provide the Committee with legal advice concerning the application of Puerto Rico tax law to a potential sale of the Debtor and/or its assets, the preservation of the value of certain of the Debtor's tax attributes, and provide advice related to Puerto Rico tax law in any actions related to the tax attributes during the term of McConnell Valdes' engagement. The Committee has agreed to pay McConnell Valdes hourly fees at these rates: Capital Members $190 to $375 Of-Counsel $285 to $360 Independent Contractor $285 to $360 Counsel $185 to $350 Income Members $175 to $240 Associates $140 to $180 Paralegals $130 to $145 Law Clerks $120 Arturo J. Garcia-Sola, Managing Director of McConnell Valdes, assures the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Committee. The firm can be reached at: Arturo J. Garcia-Sola Managing Director Capital Member, Litigation Practice Group McCONNELL VALDES 270 Munoz Rivera Avenue Hato Rey, Puerto Rico 00918 Tel: 787-250-5632 E-mail: ajg@mcvpr.com About Doral Financial Doral Financial Corporation is a holding company whose primary operating asset was equity in Doral Bank. DFC maintains offices in New York City, Coral Gables, Florida and San Juan, Puerto Rico. DFC has three wholly-owned subsidiaries: (i) Doral Properties, Inc., (ii) Doral Insurance Agency, LLC ("Doral Insurance"), and (iii) Doral Recovery, Inc. On Feb. 27, 2015, regulators placed Doral Bank into receivership and named the Federal Deposit Insurance Corp. as receiver. Doral Bank served customers through 26 branches located in New York, Florida, and Puerto Rico. DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10573) in Manhattan on March 11, 2015. The case is assigned to Judge Shelley C. Chapman. DFC estimated $50 million to $100 million in assets and $100 million to $500 million in debt as of the bankruptcy filing. The Debtor tapped Ropes & Gray LLP as counsel. The U.S. trustee overseeing the Chapter 11 case of Doral Financial Corp. appointed five creditors of the company to serve on the official committee of unsecured creditors. The Committee is represented by Brian D. Pfeiffer, Esq., and Taejin Kim, Esq., at Schulte Roth & Zabel LLP. On Nov. 25, 2015, Doral Properties filed a voluntary petition with the Court for relief under Chapter 11 of the Bankruptcy Code. The Office of the U.S. Trustee appointed five creditors to the official committee of unsecured creditors. Schulte Roth & Zabel LLP represents the committee. EDGEWELL PERSONAL: Moody's Lowers CFR to Ba2, Outlook Stable ------------------------------------------------------------ Moody's Investors Service downgraded Edgewell Personal Care Co.'s Corporate Family Rating (CFR) and Probability of Default Rating to Ba2 and Ba2-PD, from Ba1 and Ba1-PD, respectively. Concurrently, Moody's downgraded the ratings on Edgewell's senior unsecured notes to Ba2 from Ba1 and lowered the Speculative Grade Liquidity (SGL) rating to SGL-2 from SGL-1. These actions reflect the company's weakened credit metrics stemming from weaker than expected earnings, debt financed share repurchases, and modestly weaker liquidity profile. Though Edgewell generates solid free cash flow, the company is increasingly reliant on its senior unsecured revolver -- in part to fund share repurchases. Moody's believes that this reflects a more aggressive financial policy than it had expected at the time of the spin-off of the battery business in June 2015. The outlook is stable. Ratings Downgraded -- Corporate Family Rating to Ba2 from Ba1; -- Probability of Default Rating to Ba2-PD from Ba1- PD; -- $500 million Senior Unsecured Notes to Ba2 (LGD 4) from Ba1 (LDG 4); -- $600 million Senior Unsecured Notes to Ba2 (LGD 4) from Ba1 (LDG 4) -- Speculative Grade Liquidity Rating lowered to SGL-2 from SGL-1. The outlook is stable. Edgewell's Ba2 Corporate Family Rating (CFR) reflects the company's high leverage, aggressive financial policies, modest scale, and concentration in mature, highly-promotional categories. Over the past two quarters, Edgewell has increased its utilization under its $600 million revolving credit facility, primarily to fund $250 million in share repurchases. This has resulted in debt-to-EBITDA leverage of approximately 5x (versus around 3.6x post-spin). Moody's expects that Edgewell will maintain a shareholder friendly posture, and will likely continue to utilize its revolver to fund additional share repurchases. The company's willingness to engage in such shareholder friendly activities while it is facing competitive challenges, FX volatility, and post-spin restructuring efforts is resulting in weakening credit metrics. The stable outlook reflects Moody's expectation that the company will reduce financial leverage through a combination of EBITDA growth and debt repayments. It also reflects the rating agency's expectation that Edgewell will continue to generate strong free cash flow and maintain good liquidity. A downgrade could occur if operating performance deteriorates, or if Edgewell's post-spin restructuring efforts are stymied. Ratings could also be downgraded if the company is unable to achieve and sustain debt-to EBITDA below 4.5x within the next 12 months. Other factors that could contribute to a downgrade include a deterioration in the company's liquidity or continued debt financed share repurchases. Edgewell's ratings could be upgraded if it improves its scale and diversification, and it sustains solid organic growth. An upgrade would also require improved credit metrics such that Moody's expects debt/EBITDA to be sustained below 3.5x. The principal methodology used in these ratings was that for the Global Packaged Goods published in June 2013. Edgewell Personal Care Co., based in St. Louis, Missouri manufactures, markets and distributes branded personal care products in the wet shave, skin and sun care, feminine care, and infant care categories. The company has a portfolio of over 25 brands and a global footprint in over 50 countries. Edgewell's net sales for the 12 months ended December 2015 were approximately $2.4 billion. EFT HOLDINGS: Posts $11.5 Million Net Income for Third Quarter -------------------------------------------------------------- EFT Holdings, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $11.5 million on $81,073 of net total revenues for the three months ended Dec. 31, 2015, compared to a net loss of $4.12 million on $338,097 of net total revenues for the same period in 2014. For the nine months ended Dec. 31, 2015, the Company reported net income of $13.7 million on $339,311 of net total revenues compared to a net loss of $4.36 million on $800,040 of net total revenues for the same period in 2014. As of Dec. 31, 2015, EFT Holdings had $18.6 million in total assets, $12.5 million in total liabilities, all current, and $6.15 million in total equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/D0gb2e About EFT Holding California-based EFT Holdings, Inc., is primarily an e-Business company designed around the "Business-to-Customer" concept, which means that the Company's products are sold directly to customers through its web site. The Company's "Business-to-Customer" model differs from the traditional "Business to Business" model where products are sold to distributors who then sell the products to ultimate customers. EFT Holdings reported a net loss of $5.30 million on $968,000 of net total revenues for the year ended March 31, 2015, compared to a net loss of $20.3 million on $1.80 million of net total revenues for the year ended March 31, 2014. EIDOS LLC: 341 Meeting of Creditors Set for March 10 ---------------------------------------------------- The meeting of creditors of Eidos LLC and its affiliated debtors is set to be held on March 10, 2016, at 10:00 a.m., according to a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia. The meeting will be held at 115 South Union Street, Suite 208, Alexandria, Virginia. The court overseeing the bankruptcy case of a company schedules the meeting of creditors usually about 30 days after the bankruptcy petition is filed. The meeting is called the "341 meeting" after the section of the Bankruptcy Code that requires it. A representative of the company is required to appear at the meeting and answer questions under oath. The meeting is presided over by the U.S. trustee, the Justice Department's bankruptcy watchdog. About Eidos LLC On February 4, 2016, Eidos LLC and six affiliated debtors each filed a Chapter 11 bankruptcy petition in the United States Bankruptcy Court for the Eastern District of Virginia (Alexandria). The cases are assigned to Judge Brian F. Kenney. . The Debtors have tapped Odin, Feldman & Pittleman P.C. as their legal counsel. The Debtors estimated assets of $100 million to $500 million and debts of $50 million to $100 million. EMERALD INVESTMENTS: Liquidating Plan Declared Effective -------------------------------------------------------- Ian J. Gazes, the Chapter 11 trustee of Ashley River Consulting, LLC and Emerald Investments, LLC, notified parties-in-interest that the effective date of the Debtors' liquidating plan occurred Jan. 22, 2016. On Oct. 9, 2015, Kriti Ripley, LLC, Ashley River Properties II, LLC, and the Chapter 11 Trustee filed a First Amended Joint Plan of Liquidation of the Debtors. The Plan contemplated an 11 U.S.C. Sec. 363 sale process in order to pay off: -- Kriti's $1,687,023 claim, -- general unsecured claims, and -- equity holders. The Chapter 11 Trustee negotiated with Kriti to be able to market the Marina Property (70% owned by Emerald and 30% by ARP II) and not just Emerald's 70% indirect interest therein, given the anticipated difficulties of marketing Emerald's 70% indirect interest in ARP II. To protect the sale price of the Marina Property, the Trustee established an unpublicized $18 million reserve price. The Marina Property had to sell for more than $18 million for unsecured creditors to receive any recovery. As the highest bid received -- full of non-qualifying conditions -- was for only $8.5 million, the Trustee agreed as part of the proposed Plan, to relinquish to Kriti Emerald's 70% non-voting interest in ARP II. On Nov. 6, 2015, Judge Martin Glenn entered a memorandum opinion overruling plan confirmation objections by The Gayla Longman Family Irrevocable Trust. A copy of the memorandum opinion is available for free at: http://bankrupt.com/misc/Emerald_I_102_Plan_Conf_Memo.pdf On Nov. 6, 2015, the Bankruptcy Court entered the Order Confirming First Amended Plan of Liquidation. A copy of the Plan Confirmation Order is available at: http://bankrupt.com/misc/Emerald_I_103_PLan_Conf_Ord.pdf The Plan Proponents on Feb. 1, 2016 announced that all conditions precedent to the effective date of the Plan have been satisfied or waived, and (b) for all purposes, the Effective Date is and shall be Jan. 22, 2016. Claims Bar Dates Pursuant to the Plan and the Confirmation Order, Feb. 22, 2016 was established as the last date and time for the filing of requests for the allowance of Administrative Claims against the Debtors. Pursuant to the Plan and the Confirmation Order, March 8, 2016 has been established as the last date and time for the filing of requests for the allowance of Professional Fee Claims against the Debtors, including the Claim of any Professional retained in the Chapter 11 Case pursuant to sections 327 and/or 1103 of the Bankruptcy Code or otherwise, for compensation or reimbursement of costs and expenses relating to services incurred after the Petition Date and prior to and including the Effective Date. Counsel for Kriti Ripley, LLC And Ashley River Properties II, LLC: EMMET, MARVIN & MARTIN, LLP Thomas A. Pitta, Esq. 120 Broadway, 32nd Floor New York, NY 10271 Tel: (212) 238-3000 Fax: (212) 238-3100 Counsel for Chapter 11 Trustee Ian J. Gazes: Ian J. Gazes, Esq. GAZES LLC 151 Hudson Street New York, NY 10013 Tel: (212) 765-9000 Fax: (212) 765-9675 About Emerald Investments Ashley River Consulting, LLC and Emerald Investments, LLC are limited liability companies. Emerald is wholly owned by the Longman Trust. ARC is 80% owned by Emerald. 20% of ARC is owned by David A. Thomas ("Thomas"), who is the manager of each of the Debtors. Stuart Longman ("Longman") is the principal of each of the Debtors and is the trustee of the Longman Trust. Kriti Ripley, LLC and Emerald formed Ashley River Properties II, LLC ("ARP II") in 2003 for the purpose of developing a marina and condominiums (the "Marina Property") on a parcel of property in Charleston, South Carolina. Under the operating agreement, Emerald made in-kind contributions, including the Marina Property, in exchange for its 70% membership interest (the "Emerald Membership Interest"), and Kriti contributed $1.25 million in cash in exchange for the remaining 30% membership interest. Ashley River Consulting, LLC and Emerald Investments, LLC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 14-13406 and 14-13407) in Manhattan on Dec. 15, 2014. The cases are assigned to Judge Martin Glenn. Norwalk, Connecticut-based Emerald Investments estimated $10 million to $50 million in assets and less than $10 million in debt. The Debtors tapped David Y. Wolnerman, Esq., at White & Wolnerman, PLLC, in New York, as counsel. On March 18, 2015, the Court approved the appointment of Ian J. Gazes as chapter 11 Trustee. The Trustee tapped his own firm Gazes LLC as attorneys. No statutory committee has been appointed in these chapter 11 cases. ENERGY FUTURE: Watchdog Says Chapter 11 Fees at $300M and Rising ---------------------------------------------------------------- Matt Chiappardi at Bankruptcy Law360 reported that professional fees in the massive Energy Future Holdings Corp. Chapter 11 bankruptcy have grown to nearly $300 million and are likely to continue rising, the Delaware bankruptcy court learned on Feb. 18, 2016, during a presentation from the special watchdog committee tasked with keeping an eye on the costs. During a hearing in Wilmington, U.S. Bankruptcy Court Judge Christopher S. Sontchi agreed to give interim approval to a package of about $78.6 million in fees and expenses, subject to certain reductions, for the period between May and August 2015. About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a Portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80 percent-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. On April 29, 2014, Energy Future Holdings and 70 affiliated companies sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10979) after reaching a deal with some key financial stakeholders to keep its businesses operating while reducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). The Debtors are seeking to have their cases Jointly administered for procedural purposes. As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in book value and liabilities of $49.7 billion. The Debtors have $42 billion of funded indebtedness. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring Agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee for the second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee represents the interests of the unsecured creditors of ONLY of Energy Future Competitive Holdings Company LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings Company LLC; and EFH Corporate Services Company, and of no other debtors. The Committee has selected Morrison & Foerster LLP and Polsinelli PC for representation in this high-profile energy restructuring. The lawyers working on the case are James M. Peck, Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K. Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at Polsinelli PC. EXELIXIS INC: State Street Reports 3.9% Stake as of Dec. 31 ----------------------------------------------------------- In an amended Schedule 13G filed with the Securities and Exchange Commission, State Street Corporation disclosed that as of Dec. 31, 2015, it beneficially owns 8,930,765 shares of common stock of Exelixis, Inc. representing 3.9 percent of the shares outstanding. A copy of the regulatory filing is available for free at: http://is.gd/yvUKIF About Exelixis Inc. Headquartered in South San Francisco, California, Exelixis, Inc., develops innovative therapies for cancer and other serious diseases. Through its drug discovery and development activities, Exelixis is building a portfolio of novel compounds that it believes has the potential to be high-quality, differentiated pharmaceutical products. Exelixis reported a net loss of $269 million on $25.1 million of total revenues for the year ended Dec. 31, 2014, compared with a net loss of $245 million on $31.3 million of total revenues in 2013. As of Sept. 30, 2015, the Company had $363.24 million in total assets, $437.46 million in total liabilities and a $74.22 million total stockholders' deficit. EXTREME PLASTICS: Citizens Bank OKs Cash Use Until March 11 ----------------------------------------------------------- Citizens Bank of Pennsylvania, the agent for lenders under a prepetition $52 million credit facility provided to debtor Extreme Plastics Plus, Inc., filed a reservation of rights with respect to the Debtors' bid to use cash collateral to make payments under any final orders granting these motions: * Motion for entry of an order (i) authorizing payment of wages and employee benefits; and (ii) directing financial institutions to honor and process checks and transfers related to such obligations; * Motion for entry of an order (i) authorizing the Debtors to continue prepetition insurance coverage policies and practices; (ii) continuing bond coverage; and (iii) directing banks to honor all payments related thereto; * Motion for entry of an order authorizing debtors to pay certain prepetition claims of critical vendors; * Motion for an order authorizing the Debtors to pay prepetition sales and use taxes in the ordinary course of business; * Application pursuant to Sections 327(a) and 1107 of the Bankruptcy Code, Fed. R. Bankr. P. 2014(a) and Del. Bankr. L. R. 2014-1 for an order authorizing the employment and retention of Sullivan Hazeltine Allison LLC as counsel for the Debtors nunc pro tunc to the Petition Date; * Application of Debtors Pursuant to Section 363(b) of the Bankruptcy Code to employ (I) Opportune LLP as crisis managers and (II) Ryan Bouley as Chief Restructuring Officer and certain additional personnel, nunc pro tunc to the Petition Date; * Debtors' application for entry for an order (a) approving the employment and retention of Epiq Bankruptcy Solutions, LLC as Administrative Advisor; * Motion of the Debtors for an order pursuant to 11 U.S.C. Sec. 105(a) and 331 establishing procedures for interim compensation and reimbursement of expenses of professionals; and * Motion for entry of an order authorizing retention and payment of professionals utilized by the Debtors in the ordinary course of business. Citizens Bank does not object to entry of final orders on the Motions. Any payments made in accordance with the authority granted under those final orders, however, must comply in all respects with the order and related budget that governs the Debtors' cash collateral usage. At the present time, the Agent and the Debtors have agreed to a form of consensual order that would allow the Debtors to continue their cash collateral use until 5:00 p.m. (ET) on March 11, 2016. The Agent intends to continue its negotiations with the Debtors on a more permanent cash collateral order, but those discussions are dependent in large part on the Agent's and the Debtors' ability to reach a consensus on the overall direction of the instant cases. On Feb. 1, 2016, the Debtor filed a motion authorizing the postpetition use of cash collateral. The Debtors said they have been unable to obtain commitments for postpetition financing, thus cash collateral will be the sole source of funding for their operations. As adequate protection, the secured lenders will receive superpriority administrative claims and replacement liens. On Feb. 3, Judge Mary Walrath entered an interim order authorizing the Debtors to use cash collateral. A final hearing is scheduled for Feb. 25. Attorneys for Citizens Bank of Pennsylvania Zachary I. Shapiro, Esq. Daniel J. DeFranceschi, Esq. RICHARDS, LAYTON & FINGER, P.A. One Rodney Square 920 N. King St. Wilmington, DE 19801 Telephone: (302) 651-7819 Direct Fax: (302) 498-7819 E-mail: defranceschi@rlf.com shapiro@rlf.com - and - Brad B. Erens, Esq. Timothy W. Hoffmann, Esq. JONES DAY 77 W. Wacker Chicago, IL 60601 Telephone: (312) 782-3939 E-mail: bberens@jonesday.com thoffmann@jonesday.com About Extreme Plastics Founded in 2007, privately-held Extreme Plastics Plus, Inc., operates an environmental containment business specializing in providing environmental lining, above ground storage tanks, composite rig mats, secondary steel wall containment systems, and closed loop solids control services, primarily for the oil and gas industry. Extreme Plastics has six facilities in Fairmont, West Virginia, Tunkhannock, Pennsylvania, St. Clairsville, Ohio, Moore, Texas, Odessa, Texas, and Oklahoma City, Oklahoma. The stock of Extreme Plastics is held entirely by EPP Intermediate Holdings, Inc. The stock of EPP Intermediate is held entirely by EPP Holding Company, LLC, a non-debtor. Extreme Plastics, and affiliate EPP Intermediate Holdings, Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 16-10221) on Jan. 31, 2016, as the ongoing decline in the price of oil and natural gas negatively impacted demand of the Debtors' services. Extreme Plastics estimated $10 million to $50 million in assets and $50 million to $100 million in debt. EPP Intermediate estimated $1 million to $10 million in assets and $50 million to $100 million in debt. As of the Petition Date, Extreme Plastics owes $49.5 million under a secured facility provided by lenders led by Citizens Bank of Pennsylvania, as agent. The facility is secured by a lien in substantially all of the Debtors' assets, as well as a pledge of 100% of the equity in Extreme Plastics and EPP Intermediate. The Debtors tapped Sullivan Hazeltine Allinson LLC as attorneys and Epiq Bankruptcy Solutions, LLC, as claims and noticing agent. FAIRPOINT COMMUNICATIONS: Bank Debt Trades at 2% Off ---------------------------------------------------- Participations in a syndicated loan under which Fairpoint Communications is a borrower traded in the secondary market at 97.70 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.50 percentage points from the previous week. Fairpoint Communications pays 625 basis points above LIBOR to borrow under the $0.640 billion facility. The bank loan matures on Feb. 14, 2019 and carries Moody's B2 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. FIRST DATA: Bank Debt Due 2018 Trades at 2% Off ----------------------------------------------- Participations in a syndicated loan under which First Data Corp is a borrower traded in the secondary market at 97.91 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.63 percentage points from the previous week. First Data Corp pays 350 basis points above LIBOR to borrow under the $4.6 billion facility. The bank loan matures on March 15, 2018 and carries Moody's BB rating and Standard & Poor's B1 rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. FIRST DATA: Bank Debt Due 2022 Trades at 3% Off ----------------------------------------------- Participations in a syndicated loan under which First Data Corp is a borrower traded in the secondary market at 96.52 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 1.43 percentage points from the previous week. First Data Corp pays 375 basis points above LIBOR to borrow under the $2.0 billion facility. The bank loan matures on July 22, 2022 and carries Moody's BB rating and Standard & Poor's B1 rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. FORTESCUE METALS: Bank Debt Trades at 33% Off --------------------------------------------- Participations in a syndicated loan under which Fortescue Metals Group Ltd is a borrower traded in the secondary market at 67.43 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 1.32 percentage points from the previous week. Fortescue Metals pays 275 basis points above LIBOR to borrow under the $4.95 billion facility. The bank loan matures on June 13, 2019 and carries Moody's Ba1 rating and Standard & Poor's BB+ rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. FPMC SAN ANTONIO: Seeks to Employ CBRE as Real Estate Broker ------------------------------------------------------------ FPMC San Antonio Realty Partners, LP, seeks Bankruptcy Court authorization to employ CBRE, Inc., as real estate broker, nunc pro tunc to the Petition Date. The Debtor’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, 12 operating rooms, two procedure rooms, state-of-the-art diagnostic imaging, and in-house pharmacy services. The Property includes an adjacent 4-story, 84,000 square foot Medical Office Building, together with a parking garage. The Debtor engaged CBRE on Oct. 1, 2015 as its broker to sell the Property pursuant to the Exclusive Sale Listing Agreement. Pursuant to the Exclusive Sale Listing Agreement, CBRE will perform services for the Debtors, including: a. marketing the Property; b. assistance with negotiations regarding any potential transactions involving the Property; c. analysis of and recommendations regarding offers for transactions involving the Property; and d. assistance with consummation of any transactions involving the Property. The Exclusive Sale Listing Agreement provides that CBRE will be paid a commission, due in full at the time of closing or transfer of title to the Property, of (i) 1.00% of the gross sales price; however, if the Property is purchased by either Amicus Interests, LLC or OnPointe Health Development LLC, or any of their affiliates, the commission will be 0.33% of the gross sale price. Scott Senese, Senior Managing Director of CBRE, assures the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. 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. FPMC SAN ANTONIO: Seeks to Retain Battaglia as Counsel ------------------------------------------------------ U.S. Bankruptcy Judge Craig Gargotta authorized FPMC San Antonio Realty, Partners, LP, to employ the Law Offices of Ray Battaglia, PLLC, as bankruptcy counsel for the Debtor effective as of the Petition Date. The services to be rendered of the firm include: a. advise the Debtor with respect to its powers and duties as debtor and debtor in possession in the continued management and operation of its business and properties; b. attend meetings and negotiate with representatives of creditors and other parties in interest, and advise and consult on the conduct of the case, including all of the legal and administrative requirements of operating in chapter 11; c. take all necessary actions to protect and preserve the Debtor's estate, including the prosecution of actions on its behalf, the defense of any actions commenced against its estate, negotiations concerning litigation in which the Debtor may be involved, and objections to claims filed against the estate; d. prepare on behalf of the Debtor all motions, applications, answers, orders, reports, and papers necessary to the administration of the estate; e. advise the Debtor in connection with any sales of assets; f. negotiate and prepare on the Debtor's behalf a plan of reorganization, disclosure statement, and all related agreements and/or documents, and take any necessary action on behalf of the Debtor to obtain confirmation of such plan; g. appear before this Court, any appellate courts, and the United States Trustee, and protect the interests of the Debtor’s estate before such courts and the United States Trustee; and h. perform all other necessary legal services and provide all other necessary or appropriate legal advice to the Debtor in connection with this Chapter 11 Case. The Firm has provided and will be providing professional services to the Debtor under its standard rate structure, subject to periodic increases. The hourly rate for Mr. Battaglia is $425 per hour. The Firm has also informed the Debtor that it will bill non-working travel time at half of the otherwise applicable hourly rate. The Debtor agreed that a retainer would be applied to the Firm's professional fees, charges, and disbursements. The initial Retainer amount was $65,000. As of the Petition Date, the balance of the Retainer was $58,523, after payment of all outstanding prepetition fees and expenses incurred by the Firm, including the filing fee in the amount of $1,717. Ray Battaglia assures the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. 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. GBG RANCH: Court Issues Final Decree to Close Case -------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas has ordered to close the Chapter 11 case of GBG Ranch, Ltd. The court issued the order upon request from GBG Ranch itself whose Chapter 11 plan of liquidation took effect on Jan. 5, 2016. The bankruptcy court approved the liquidating plan proposed by GBG Ranch on Nov. 20 last year. GBG Ranch's liquidating plan provided for the disposition of all of its assets. The plan also provided for the payment in full of all allowed claims and the distribution of the remaining assets to holders of equity interest. The plan received overwhelming support from creditors who were entitled to vote, according to court filings. The Trust Company was selected to administer the so-called GBG Ranch Trust following approval of the liquidating plan. Meanwhile, Richard Schmidt was appointed to administer the so-called residuary trust and three other trusts. About GBG Ranch GBG Ranch, LTD, a Texas Limited Partnership, owns the surface estate of three ranches in the vicinity of Laredo, Webb County, Texas. GBG Ranch sought Chapter 11 protection (Bankr. S.D. Tex. Case No. 14-50155) in Laredo, Texas on July 8, 2014, to seek relief from the contentious and costly intra-family litigation that had been ongoing for several years. The petition was signed by Manuel A. Benavides, president. The Benavides family, consisting of the matriarch, Norma, her two sons, Guillermo ("Memo") and Manuel ("Guero"), and various entities owned and controlled by them in varying percentages, have been embroiled in acrimonious litigation since early 2011. The parties to these lawsuits (which were consolidated into a single lawsuit under Case No. 2011 CVF 000194-D1) are various factions of the Benavides family and organizations controlled by them which are suing each other on a multiplicity of claims including efforts to wrest control over the Ranches from the current management of the Debtor and to displace the current management of the Debtor. The Debtor removed the litigation to the Bankruptcy Court on July 9, 2014. The litigation has been abated by the agreement of the parties pending further order of the Bankruptcy Court. The Debtor believes that the litigation can and will be resolved by the Bankruptcy Court, either by agreement or judgment subsequent to the confirmation of the Plan. In schedules filed Dec. 9, 2014, the Debtor disclosed $54,111,258 in assets and $4,401,493 in liabilities as of the Chapter 11 filing. The company is represented by the Law Office of Carl M. Barto. Leslie M. Luttrell and the Luttrell + Villareal Law Group serve as special counsel. In October 2014, the Court, with the agreement of the Debtor, Memo and Quita Wind, appointed Ronald Hornberger as the Chapter 11 Examiner under 11 U.S.C. Sec. 1106. GENIUS BRANDS: Signs Distribution Agreement with Sony Pictures -------------------------------------------------------------- Sony Pictures Home Entertainment and Genius Brands International, Inc., have finalized a multi-year agreement in which SPHE will provide marketing and distribution of GBI's Kid Genius and Baby Genius labels, throughout North America. In addition, the deal allows SPHE and GBI to co-develop, distribute, and globally merchandise future animated or live action properties derived from their respective programming libraries. In consideration for those rights, and subject to certain conditions, Sony will pay the Company an advance in the amount of $2 million, against future royalties, according to a Form 8-K report filed with the Securities and Exchange Commission. "SPHE will work with the GBI team to deliver enriching learning experiences and inspiring entertainment content to families and children across North America," said Ben Means, SVP, Third Party Strategic Partnerships, SPHE. "This partnership underscores our long term commitment to provide consumers with quality product for children and families." "This transformative, long-term commitment between our companies allows Genius Brands International to focus on what we do best--creating, producing, merchandising and acquiring commercial content for both kids and families--and enables us to expand and accelerate our growth and shareholder value," said Andy Heyward, GBI Chairman and CEO. "SPHE's substantial, marketing, promotion, and retail and digital distribution resources, will be instrumental in the continued expansion of our brands." Among the brands SPHE will distribute are the all-new music and fashion-driven brand for tween girls, SpacePOP debuting in Fall 2016; a new original Baby Genius series to coincide with the brand's expanded launch in 2016; Warren Buffett's Secret Millionaires Club, the animated series accessible on-air, online and at retail; and Stan Lee's Mighty 7 (SLAM 7). Additionally, GBI is developing three new properties included in the agreement that will be announced shortly alongside catalog titles. About Genius Brands Beverly Hills, Calif.-based Genius Brands International, Inc., creates and distributes music-based products which it believes are entertaining, educational and beneficial to the well-being of infants and young children under its brands, including Baby Genius and Little Genius. Genius Brands reported a net loss of $3.72 million in 2014, a net loss of $7.21 million in 2013, a net loss of $2.06 million in 2012 and a net loss of $1.37 million in 2011. As of Sept. 30, 2015, the Company had $16.0 million in total assets, $4.67 million in total liabilities, and $11.3 million in total equity. GRAHAM HOLDINGS: S&P Withdraws 'B' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services said that it withdrew its 'B' short-term corporate credit rating and 'B' commercial paper rating on Graham Holdings Co. at the issuer's request. S&P's 'BB+' corporate credit rating and stable rating outlook on Graham Holdings remain unchanged. GULF PACKAGING: Illinois Judge Confirms Uncontested Plan -------------------------------------------------------- Judge Pamela S. Hollis has confirmed Gulf Packaging Inc.'s First Amended Chapter 11 Plan. The Plan was supported by the Official Committee of Unsecured Creditors and the secured lender, FCC, LLC, d/b/a First Capital. The Plan contemplates the liquidation of the Debtor by distributing all Cash held or to be received by the Debtor to the Creditor Trust for the benefit of creditors. Joseph E. Myers of EisnerAmper LLP as been designated as trustee for the creditor trust. Pursuant to the Plan and a settlement with FCC, the FCC claims estimated to be at least $9,204,863 (Class 2) will be satisfied with (i) as to the secured claim, 100% of the proceeds from any sales of FCC collateral, and (ii) as to the superpriority claim, 80% of the proceeds of the liquidation of all Creditor Trust Assets until paid in full. Priority non-tax claims of $39,387 (Class 1), and other secured claims totaling $411,281 (Class 3) are unimpaired and will be paid in full. Holders of general unsecured claims estimated at $26.6 million (Class 4) will each receive a pro rata share of 20% of the proceeds of the liquidation of the Creditor Trust Assets. Existing equity interests (Class 5) will be cancelled and holders of these interests will receive the remaining cash after creditors are paid in full. Judge Hollis on Nov. 3, 2015, entered an order conditionally approving the Disclosure Statement, establishing a Nov. 3 record date, and a Dec. 4 voting deadline and setting a Dec. 15 hearing to consider confirmation of the Plan. No objections to confirmation of the Plan were filed. Following a hearing Dec. 15, 2015, the judge granted final approval of the Disclosure Statement and confirmed the Plan. A copy of the Disclosure Statement explaining the terms of the First Amended Plan filed Nov. 5, 2015 is available for free at: A copy of the Plan Confirmation Order is available for free at: http://bankrupt.com/misc/Gulf_Packaging_317_Plan_Conf_Ord.pdf About Gulf Packaging Formed as a Texas corporation in February 2012, Gulf Packaging Inc. is a distributor of packaging equipment and supplies, which sells its product by and through several independent entities. GPI is a private company, with its equity held in equal parts by the Fleck Family Partnership, LLC and CWJ Eagle, LLC (which is affiliated with the Cutshall family). Gulf Packaging sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 15-15249) on April 29, 2015. The Debtor disclosed $16.4 million in assets and $29.8 million in liabilities as of the Chapter 11 filing. The case is assigned to Judge Pamela S. Hollis. The Debtor tapped FrankGecker LLP as counsel; BMC Group Inc. as claims and noticing agent; and the firm of Gavin/Solmonese to provide Edward T. Gavin as chief restructuring officer. The U.S. Trustee appointed nine creditors to serve on an official committee of unsecured creditors. GULF PACKAGING: Liquidating Plan Declared Effective Jan. 22 ----------------------------------------------------------- Gulf Packaging Inc. announced that the effective date of its First Amended Chapter 11 Plan occurred Jan. 22, 2016. On Dec. 15, 2015, the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, entered its Findings of Fact, Conclusions of Law and Order Approving Disclosure Statement and Confirming First Amended Chapter 11 Plan. All holders of Administrative Expense Claims, other than Professional Persons holding Fee Claims and FCC as holder of the FCC Superpriority Claim, were required to file with the Bankruptcy Court a request for the payment of such Claims by Feb. 22, 2016, which is 30 days after the Effective Date. Every Professional Person holding a Fee Claim that has not previously been the subject of a final fee application and accompanying Bankruptcy Court order were also required to file a final application for payment of fees and reimbursement of expenses no later than February 22, 2016. About Gulf Packaging Formed as a Texas corporation in February 2012, Gulf Packaging Inc. is a distributor of packaging equipment and supplies, which sells its product by and through several independent entities. GPI is a private company, with its equity held in equal parts by the Fleck Family Partnership, LLC and CWJ Eagle, LLC (which is affiliated with the Cutshall family). Gulf Packaging sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 15-15249) on April 29, 2015. The Debtor disclosed $16.4 million in assets and $29.8 million in liabilities as of the Chapter 11 filing. The case is assigned to Judge Pamela S. Hollis. The Debtor tapped FrankGecker LLP as counsel; BMC Group Inc. as claims and noticing agent; and the firm of Gavin/Solmonese to provide Edward T. Gavin as chief restructuring officer. The U.S. Trustee appointed nine creditors to serve on an official committee of unsecured creditors. GULF PACKAGING: Xsys Seeks Payment of $62K Admin. Expense Claim --------------------------------------------------------------- At a hearing on March 3, 2016, at 10:30 a.m., Judge Pamela S. Hollis will consider approval of a request by Xsys, Inc., for payment of its $62,006 administrative expense claim against Gulf Packaging Inc. Xsys is an information technology (IT) consulting firm located in Valparaiso, Indiana, and, since its inception, wholly owned and controlled by Melissa Sarkisian. Xsys provided the Debtor and, after March 2015, the Chief Restructuring Officer Edward T. Gavin of Gavin/Solomonese, LLC critical data, reports, and information that enabled the Debtor to prepare and file for bankruptcy. On and after the Petition Date, the Debtor continued to utilize Xsys' services. In fact, a specific line-item was provided for Xsys in each of the Debtor's cash collateral budgets approved and entered in the bankruptcy case. The cash collateral budgets provided weekly payments to Xsys starting at $7,000 per week and gradually decreasing to $2,500 per week. As the Debtor's Chapter 11 case started to fall apart around August 2015, Xsys stopped receiving payments from the Debtor despite the Debtor's continued use of Xsys' services Until November 2015, Xsys provided the Debtor with all of its information technology services, excluding the hosting of the Debtor's servers. In addition, Xsys actively hosted, maintained, and supported the Debtor's data and information until Feb. 12, 2016. Counsel to Xsys Inc.: Konstantinos Armiros, Esq. Kevin H. Morse, Esq. ARNSTEIN & LEHR LLP 120 S. Riverside Plaza, Suite 1200 Chicago, IL 60606 Tel: (312) 876-7100 Fax: (312) 876-0288 E-mail: karmiros@arnstein.com khmorse@arnstein.com About Gulf Packaging Formed as a Texas corporation in February 2012, Gulf Packaging Inc. is a distributor of packaging equipment and supplies, which sells its product by and through several independent entities. GPI is a private company, with its equity held in equal parts by the Fleck Family Partnership, LLC and CWJ Eagle, LLC (which is affiliated with the Cutshall family). Gulf Packaging sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 15-15249) on April 29, 2015. The Debtor disclosed $16.4 million in assets and $29.8 million in liabilities as of the Chapter 11 filing. The case is assigned to Judge Pamela S. Hollis. The Debtor tapped FrankGecker LLP as counsel; BMC Group Inc. as claims and noticing agent; and the firm of Gavin/Solmonese to provide Edward T. Gavin as chief restructuring officer. The U.S. Trustee appointed nine creditors to serve on an official committee of unsecured creditors. H. KREVIT AND COMPANY: Committee May Hire Gavin/Solmonese --------------------------------------------------------- The Official Committee of Unsecured Creditors of the estates of H. Krevit and Company, Incorporated et al., sought and obtained authority from the U.S. Bankruptcy Court to retain Gavin/Solmonese LLC as the panel's financial advisor. The firm's Edward T. Gavin, CTP, and Kathryn B. McGlynn will assist the Committee. Mr. Gavin charges $650 an hour while Ms. McGlynn bills $400 per hour. Gavin/Solmonese will provide these financial advisory services: a) Reviewing and analyzing the businesses, management, operations, properties, financial condition and prospects of the Debtors; b) Reviewing and analyzing historical financial performance, and transactions between and among the Debtors, their creditors, affiliates and other entities; c) Reviewing the assumptions underlying the business plans and cash flow projections for the assets involved in any potential asset sale or plan of reorganization; d) Determining the reasonableness of the projected performance of the Debtors, both historically and future; e) Monitoring, evaluating and reporting to the Committee with respect to the Debtors' near-term liquidity needs, material operational changes and related financial and operational issues; f) Reviewing and analyzing all material contracts and/or agreements; g) Assisting and procuring and assembling any necessary validations of asset values; h) Providing ongoing assistance to the Committee and the Committee's legal counsel; i) Evaluating the Debtors' capital structure and making recommendations to the Committee with respect to the Debtors' efforts to reorganize their business operations and/or confirm a restructuring or liquidating plan; j) Assisting the Committee in preparing documentation required in connection with creating, supporting or opposing a plan and participating in negotiations on behalf of the Committee with the Debtors or any groups affected by a plan; k) Assisting the Committee in marketing the Debtors' assets with the intent of maximizing the value received for any such assets from any such sale; l) Providing ongoing analysis of the Debtors' financial condition, business plans, capital spending budgets, operating forecasts, management and the prospects for their future performance; and m) Such other tasks as the Committee or its counsel may reasonably request in the course of exercise of the Committee's duties in these cases. From time to time, other Gavin/Solmonese professionals may be involved in these cases as needed. Hourly rates for these professionals range from $250.00 to $650.00 per hour. Gavin/Solmonese has preliminarily agreed to a budget of $25,000. Prior approval from the Committee is required before Gavin/Solmonese can exceed the preliminary budget. Mr. Gavin attests that his firm has no connection with, and holds no interest adverse to, the Debtors, their estates, their creditors, or any party in interest in these Chapter 11 cases, nor to the best of the Committee's knowledge does Gavin/Solmonese hold any interest adverse to the interests of the Committee or Debtors' creditors. The U.S. Trustee has filed with the Court a Statement of No Objection to the Committee's application to retain Gavin/Solmonese. About H. Krevit and Company New Haven, Connecticut.-based H. Krevit and Company, Incorporated and three of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Conn. Case Nos. 15-31904 to 15-31907) on Nov. 19, 2015. The petition was signed by Thomas S. Ross as president. Rogin Nassau LLC represents the Debtors as counsel. Judge Julie A. Manning has been assigned the case. The Debtors are manufacturers and distributor of various inorganic chemicals, including sodium hypochlorite (bleach), hydrochloric acid, and sodium hydroxide (caustic soda). The Office of the U.S. Trustee appointed five creditors to the official committee of unsecured creditors. Timothy S. Ponsler at Olin Chlor Alkali Products Division; and Anthony Bellucci at Hamilton Connections, are Co-Chairs of the Official Committee of Unsecured Creditors. Polsinelli PC represents the committee. H. KREVIT AND COMPANY: Files Amended Schedules of Assets & Debt --------------------------------------------------------------- H. Krevit and Company Incorporated disclosed $4,885,814 in assets and $33,664,845 in liabilities in its amended schedules of assets and liabilities for non-individuals: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $0 B. Personal Property $4,885,814 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $28,832,371 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $4,832,474 ----------- ----------- TOTAL $4,885,814 $33,664,845 The company, in its initial schedules filed on Dec. 15, 2015, with the U.S. Bankruptcy Court in Connecticut, disclosed $4,885,814 in assets and $33,364,135 in liabilities. A copy of the company's amended schedules is available without charge at http://is.gd/qxcJAT About H. Krevit and Company New Haven, Connecticut.-based H. Krevit and Company, Incorporated and three of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Conn. Case Nos. 15-31904 to 15-31907) on Nov. 19, 2015. The petition was signed by Thomas S. Ross as president. The Debtors' cases are jointly administered under Case No. 15-31904. Rogin Nassau LLC represents the Debtors as counsel. Judge Julie A. Manning has been assigned the case. The Debtors are manufacturers and distributor of various inorganic chemicals, including sodium hypochlorite (bleach), hydrochloric acid, and sodium hydroxide (caustic soda). The Office of the U.S. Trustee appointed five creditors to the official committee of unsecured creditors. Polsinelli PC represents the committee. H. KREVIT AND COMPANY: Siegel O'Connor Approved as Labor Counsel ---------------------------------------------------------------- H. Krevit and Company, Incorporated et al., sought and obtained authority from the U.S. Bankruptcy Court in Connecticut to employ Siegel, O'Connor, O'Donnell & Beck, P.C. as their labor counsel. Siegel O'Connor has served as the Debtors' labor counsel for many years and their knowledge and expertise is necessary to effectuate the Debtor's plan through this chapter 11 case. The Debtors need Siegel O'Connor as their labor counsel to represent them with respect to Krevit's employees who are members of the Teamsters' Union. The Debtors propose to pay Siegel O'Connor on an hourly basis at its normal hourly rates, which range from $165.00 per hour to $325.00 per hour. Siegel O'Connor has been paid a retainer of $7,500 for services to be rendered to be rendered in connection with this Chapter 11 case. Siegel O'Connor represents no interest adverse to the Debtors or the estate in matters upon which it is to be engaged for the Debtors, and its employment would be in the best interests of the estates. The U.S. Trustee has filed with the Court a Statement of No Objection to the Debtors' application. About H. Krevit and Company New Haven, Connecticut.-based H. Krevit and Company, Incorporated and three of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Conn. Case Nos. 15-31904 to 15-31907) on Nov. 19, 2015. The petition was signed by Thomas S. Ross as president. Rogin Nassau LLC represents the Debtors as counsel. Judge Julie A. Manning has been assigned the case. The Debtors are manufacturers and distributor of various inorganic chemicals, including sodium hypochlorite (bleach), hydrochloric acid, and sodium hydroxide (caustic soda). The Office of the U.S. Trustee appointed five creditors to the official committee of unsecured creditors. Timothy S. Ponsler at Olin Chlor Alkali Products Division; and Anthony Bellucci at Hamilton Connections, are Co-Chairs of the Official Committee of Unsecured Creditors. Polsinelli PC represents the committee. H. KREVIT AND COMPANY: Wants to Hire Environmental Consultant ------------------------------------------------------------- H. Krevit and Company, Incorporated and its affiliated debtor entities received an endorsement from the Office of the United States Trustee, the government watchdog, in their bid to hire an environmental consultant. H. Krevit seeks Court authority to employ ALTA Environmental Corp. to provide advice concerning the environmental reports being prepared by potential purchasers and compliance by the Debtors with environmental laws, including the Connecticut Property Transfer Act (Conn. Gen. Sections 22a-134 et seq.). "The United States Trustee does not usually comment on the hiring of environmental consultants; however, to the extent necessary, the United States Trustee has no objection to the Application to Employ Alta Environmental Corporation," the U.S. Trustee said in a statement. According to H. Krevit, ALTA represents no interest adverse to the Debtors or their estates. About H. Krevit and Company New Haven, Connecticut.-based H. Krevit and Company, Incorporated and three of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Conn. Case Nos. 15-31904 to 15-31907) on Nov. 19, 2015. The petition was signed by Thomas S. Ross as president. Rogin Nassau LLC represents the Debtors as counsel. Judge Julie A. Manning has been assigned the case. The Debtors are manufacturers and distributor of various inorganic chemicals, including sodium hypochlorite (bleach), hydrochloric acid, and sodium hydroxide (caustic soda). The Office of the U.S. Trustee appointed five creditors to the official committee of unsecured creditors. Timothy S. Ponsler at Olin Chlor Alkali Products Division; and Anthony Bellucci at Hamilton Connections, are Co-Chairs of the Official Committee of Unsecured Creditors. Polsinelli PC represents the committee. INEOS GROUP: Bank Debt Due 2018 Trades at 4% Off ------------------------------------------------ Participations in a syndicated loan under which Ineos Group Plc is a borrower traded in the secondary market at 95.92 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 1.00 percentage points from the previous week. Ineos Group Plc pays 275 basis points above LIBOR to borrow under the $2.617 billion facility. The bank loan matures on May 2, 2018 and carries Moody's Ba3 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. INEOS GROUP: Bank Debt Due 2022 Trades at 6% Off ------------------------------------------------ Participations in a syndicated loan under which Ineos Group Plc is a borrower traded in the secondary market at 93.83 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 1.43 percentage points from the previous week. Ineos Group Plc pays 325 basis points above LIBOR to borrow under the $0.625 billion facility. The bank loan matures on june 1, 2022 and carries Moody's B2 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. INFORMATICA CORP: Bank Debt Trades at 7% Off -------------------------------------------- Participations in a syndicated loan under which Informatica Corp is a borrower traded in the secondary market at 93.05 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 1.89 percentage points from the previous week. Informatica Corp pays 350 basis points above LIBOR to borrow under the $ 1.875 billion facility. The bank loan matures on June 1, 2022 and carries Moody's B2 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. INTERNATIONAL TECHNICAL: Chairman Paid for Osborn Retainer ---------------------------------------------------------- Bank of America Bank, N.A. -- International Technical Coatings, Inc.'s secured creditor -- said it doesn't have any objection to the Debtor's bid to employ Osborn Maledon, P.A. as bankruptcy counsel. But the bank expressed serious concerns about the control that John Caldwell, the Debtor's chairman, may have on the bankruptcy case behind the scenes by virtue of his payment of legal fees on behalf of the Debtor. According to BofA, International Technical Coatings owes it more than $25.7 million in outstanding matured, defaulted loan obligations. The debt is secured by substantially all of the Debtor's personal and real property, including, without limitation, the real property located at 110 and 111 South 41st Street, Phoenix, Arizona 85009. Mr. Caldwell, among others, executed a guaranty of the Debtor's loan obligations owed to the bank. In papers filed with the Bankruptcy Court in December, the bank pointed out that Osborn Maledon has disclosed Mr. Caldwell personally paid the firm's retainer in the amount of $80,608. BofA noted that Mr. Caldwell's behavior has become increasingly erratic. The bank cited his "chronic absenteeism at the Debtor's operations, to 'tweaking' the Debtor's audited financial statements, to climbing through a fence to evade service of process." "As the Court knows, the payment of attorneys' fees by an insider raises serious conflict of interest issues, and requires that 'the professional demonstrate the absence of facts that would otherwise render the professional not disinterested, in actual conflict, or facing an impermissible potential for a conflict," BofA said, citing In re Castellucci, Case No. BAP CC-06-1232-PADMO, 2007 WL 7540955, at *10 n.19 (B.A.P. 9th Cir. Jul. 26, 2007) (internal citation omitted). The bank contends that the payment arrangement presents potential conflicts of interest. "Bank of America files this Objection to preserve its rights, and intends to work with counsel for the Debtor, the US Trustee, and other parties in interest in an effort to reach a consensual resolution of the Application. However, on the current record, the bank cannot support the Application," BofA said. The Bankruptcy Court scheduled a hearing on the firm's engagement for December 18, 2015. The hearing date was moved to January 19, 2016. No decision by the Court has been made available on the case docket. BofA is represented by: Robert J. Miller, Esq. Kyle S. Hirsch, Esq. Amanda L. Cartwright, Esq. BRYAN CAVE LLP Two North Central Avenue, Suite 2200 Phoenix, AZ 85004-4406 Telephone: (602) 364-7000 Facsimile: (602) 364-7070 E-mail: rjmiller@bryancave.com kyle.hirsch@bryancave.com amanda.cartwright@bryancave.com About International Technical International Technical Coatings, Inc. is a Phoenix, Arizona-based steel wire manufacturer. It has facilities located in Phoenix, Arizona and Columbus, Ohio. ITC filed a Chapter 11 bankruptcy petition (Bank. D. Ariz. Case No. 15-14709) on Nov. 18, 2015. John Caldwel, the chairman, signed the petition. Judge Madeleine C. Wanslee is assigned the case. Bank of America Bank, N.A., which is owed more than $25.7 million in outstanding matured, defaulted loan obligations, applied for the appointment of a receiver over ITC on Oct. 28, 2015. The Maricopa County Superior Court held an initial hearing on the matter on Nov. 4. A final hearing on the appointment of a receiver was scheduled for Nov. 18 at 1:30 p.m. Unable to secure an agreement with the Bank prior to the scheduled hearing, ITC filed for Chapter 11 protection. In its petition, the Debtor estimated assets of $50 million to $100 million and liabilities of more than $10 million. The Debtor tapped Osborn Maledon, P.A., as bankruptcy counsel. Morris Anderson & Associates, Ltd. serves as its financial advisor. The Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. Stinson Leonard Street, LLP represents the committee. The Committee retained KRyS Global, USA, as its financial advisor. INTERNATIONAL TECHNICAL: Morris Anderson Approved as Fin'l Advisor ------------------------------------------------------------------ International Technical Coatings, Inc., won approval from the Arizona bankruptcy court to employ Morris Anderson & Associates, Ltd. as its financial advisor. Bankruptcy Judge Madeleine C. Wanslee, however, directed Morris Anderson to work with KRyS Global, the financial advisor for the Official Unsecured Creditors' Committee, to minimize the potential duplication of services provided by Morris Anderson and KRyS. Absent any additional Court order, no funds may be paid to Morris Anderson except as set forth in the approved Cash Collateral Budget and upon proper notice and hearing. Morris Anderson and KRyS are directed to notify the Court and the parties-in-interest if the work performed by Morris Anderson or KRyS exceeds the monthly budgeted amount in the approved cash collateral budget. The Debtor said that, to effectively and efficiently administer this case and reorganize, it needs the assistance of a financial advisor to, among other things, assist with the preparation of statements and schedules, budgets and forecasts, perform valuation and feasibility analyses, and to assist with formulation, negotiation, and confirmation of a Chapter 11 reorganization plan. The firm's professionals who are expected to have primary responsibility for this engagement, and their hourly rates are: Daniel F. Dooley, Principal and CEO $595 per hour MORRIS ANDERSON & ASSOCIATES, LTD. 55 West Monroe Street, Suite 2350 Chicago, IL 60603 Tel: (312) 254-0888 Cell: (630) 660-8952 Fax: (312) 727-0180 E-mail: ddooley@morrisanderson.com Timothy H. Shaffer, Director $350 per hour Cell: (602) 469-5147 E-mail: tshaffer@morrisanderson.com Mark Briden, Director $330 per hour Tel: (312) 254-0880 Cell: (708) 514-4726 E-mail: mbriden@morrisanderson.com Other MA professionals and paraprofessionals may render services to ITC as needed. Generally, MA's hourly rates fall within these ranges: Principal - $475 to $595 per hour Managing Director - $375 to $450 per hour Director and Associate Director - $275 to $350 per hour MA attests that it does not hold or represent any interest adverse to ITC, its estate, its creditors, or any other party with an actual or potential conflict in this Chapter 11 case. About International Technical International Technical Coatings, Inc. is a Phoenix, Arizona-based steel wire manufacturer. It has facilities located in Phoenix, Arizona and Columbus, Ohio. ITC filed a Chapter 11 bankruptcy petition (Bank. D. Ariz. Case No. 15-14709) on Nov. 18, 2015. John Caldwel, the chairman, signed the petition. Judge Madeleine C. Wanslee is assigned the case. Bank of America Bank, N.A., which is owed more than $25.7 million in outstanding matured, defaulted loan obligations, applied for the appointment of a receiver over ITC on Oct. 28, 2015. The Maricopa County Superior Court held an initial hearing on the matter on Nov. 4. A final hearing on the appointment of a receiver was scheduled for Nov. 18 at 1:30 p.m. Unable to secure an agreement with the Bank prior to the scheduled hearing, ITC filed for Chapter 11 protection. In its petition, the Debtor estimated assets of $50 million to $100 million and liabilities of more than $10 million. The Debtor tapped Osborn Maledon, P.A., as bankruptcy counsel. Morris Anderson & Associates, Ltd. serves as its financial advisor. The Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. Stinson Leonard Street, LLP represents the committee. The Committee retained KRyS Global, USA, as its financial advisor. Secured creditor Bank of America is represented by Robert J. Miller, Esq., Kyle S. Hirsch, Esq., and Amanda L. Cartwright, Esq., at Bryan Cave LLP. INTERNATIONAL TECHNICAL: Panel Taps KRyS Global as Fin'l Advisor ---------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the Chapter 11 case of International Technical Coatings, Inc., asks the Bankruptcy Court in Arizona for permission to retain KRyS Global, USA, as its financial advisor, effective January 1, 2016. As financial advisor to the Committee, the firm will: a. Review and analyze the businesses, management, operations, properties, financial condition and prospects of the Debtor; b. Review and analyze transactions between and among the Debtor and its principals, creditors, affiliates and other entities; c. Review and analyze historical financial performance the assumptions underlying the business plans and cash flow projections for the assets involved in any potential asset sale of plan of reorganization; d. When appropriate, liaise with the Debtor's management team and financial advisors; e. When appropriate, liaise with the professional engaged by the secured lender in relation to this case; f. Determine the viability of the Debtor and the reasonableness of the projected performance of the Debtor; g. Monitor, evaluate and report to the Committee with respect to the Debtor's near-term liquidity needs, material operational changes and related financial and operational issues; h. Review and analyze such material contracts and/or agreements as may be requested by the Committee; i. Assist in the procurement of and assemble any necessary validations of asset values; j. Evaluate the Debtor's capital structure and make recommendations to the Committee with respect to the Debtor's efforts to reorganize their business operations and/or confirm a restructuring or liquidating plan; k. Assist the Committee in preparing documentation required in connection with creating, supporting or opposing a plan and participate in negotiations on behalf of the Committee with the Debtor or any groups affected by a plan; l. If circumstances necessitate and upon the Committee's request, assist the Committee in marketing the Debtor's assets with the intent of maximizing the value received for any such assets from any such sale; m. Provide ongoing analysis of the Debtor's financial condition, business plans, capital spending budgets, operating forecasts, management and the prospects for their future performance; n. Provide ongoing assistance to the Committee and the Committee's legal counsel; and o. Other tasks as the Committee or its counsel reasonably request in the course of this case. KGUSA attests that it qualifies as a "disinterested person" as defined in Bankruptcy Code Sec. 101(14). KRyS will be compensated on an hourly basis for the services provided under the parties' Agreement. The applicable billable rates are: Managing Partners - $525 Directors - $425 Analysts - $275 The firm may be reached at: Grant Lyon Managing Director KRyS GLOBAL, USA 57W 57th St., 4th Fl. New York, NY 10019 Tel: 602 432 7971 E-mail: Grant.Lyon@KRySGlobalUsa.com Court Wants KRyS and MA to Coordinate As reported in the Troubled Company Reporter, ITC won Court approval to employ Morris Anderson & Associates, Ltd. as its financial advisor. Bankruptcy Judge Madeleine C. Wanslee directed Morris Anderson to work with KRyS Global, the Committee's financial advisor, to minimize the potential duplication of services provided by Morris Anderson and KRyS. Absent any additional Court order, no funds may be paid to Morris Anderson except as set forth in the approved Cash Collateral Budget and upon proper notice and hearing. Morris Anderson and KRyS are directed to notify the Court and the parties-in-interest if the work performed by Morris Anderson or KRyS exceeds the monthly budgeted amount in the approved cash collateral budget. About International Technical International Technical Coatings, Inc. is a Phoenix, Arizona-based steel wire manufacturer. It has facilities located in Phoenix, Arizona and Columbus, Ohio. ITC filed a Chapter 11 bankruptcy petition (Bank. D. Ariz. Case No. 15-14709) on Nov. 18, 2015. John Caldwel, the chairman, signed the petition. Judge Madeleine C. Wanslee is assigned the case. Bank of America Bank, N.A., which is owed more than $25.7 million in outstanding matured, defaulted loan obligations, applied for the appointment of a receiver over ITC on Oct. 28, 2015. The Maricopa County Superior Court held an initial hearing on the matter on Nov. 4. A final hearing on the appointment of a receiver was scheduled for Nov. 18 at 1:30 p.m. Unable to secure an agreement with the Bank prior to the scheduled hearing, ITC filed for Chapter 11 protection. In its petition, the Debtor estimated assets of $50 million to $100 million and liabilities of more than $10 million. The Debtor tapped Osborn Maledon, P.A., as bankruptcy counsel. Morris Anderson & Associates, Ltd. serves as its financial advisor. The Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. Stinson Leonard Street, LLP represents the committee. Secured creditor Bank of America is represented by Robert J. Miller, Esq., Kyle S. Hirsch, Esq., and Amanda L. Cartwright, Esq., at Bryan Cave LLP. INTERNATIONAL TECHNICAL: Stinson Leonard Okayed as Panel Counsel ---------------------------------------------------------------- The U.S. Bankruptcy Court in Arizona gave the Official Committee of Unsecured Creditors appointed in the Chapter 11 case of International Technical Coatings, Inc., the green light to retain Stinson Leonard Street LLP to represent the Committee in all capacities, effective December 15, 2015. The firm may be reached at: Thomas J. Salerno, Esq. Alisa C. Lacey, Esq. Christopher C. Simpson, Esq. Anthony P. Cali, Esq. STINSON LEONARD STREET LLP 1850 N. Central Avenue, Suite 2100 Phoenix, AZ 85004-4584 Tel: (602) 279-1600 Fax: (602) 240-6925 E-mail: Thomas.salerno@stinson.com Alisa.lacey@stinson.com Christopher.simpson@stinson.com Anthony.cali@stinson.com Stinson Leonard's services include: * Analysis of the Debtor's financial situations, and rendering advice to the Committee in determining courses of action necessary for an effective reorganization; * Preparation of and filling of pleadings and documents which may be required; * Representation of the Committee at the meetings and hearings; * Representation of the Committee in any and all adversary and/or contested matters, and other Court proceedings; * Negotiations with the Debtor and other parties-in- interest; * Investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtor, the operation of the Debtor's related entities and business interests, and any matter relevant to the Debtor's case; * Participation in the Debtor's Chapter 11 to the extent it affects the rights and interests of the creditors of the Debtor including, without limitation, the formulation of a Chapter 11 plan of reorganization and confirmation of that plan; * The performance of any and all such other services as are in the interests of the Committee relevant to the Debtor's Chapter 11 cases; and * Other representation as seems appropriate and necessary for the benefit of the Committee. Mr. Salerno, a partner at Stinson Leonard, disclosed that his firm: -- has provided, and currently provides, legal services to Bank of America, N.A., a creditor in this case, on unrelated matters. Those services, primarily and historically transactional in nature, have historically occurred outside of the State of Arizona. To the extent any matter may arise in which the Committee is called upon to engage in litigation involving an adversary proceeding which is directly adverse to the Bank, the Committee will seek the assistance of special counsel. -- is currently involved in an unrelated litigation matter adverse to Committee member EVRAZ Rocky Mountain Steel or an EVRAZ affiliated entity. -- has previously been involved in unrelated litigation matters adverse to Committee member Tata International Metals (Americas) Ltd. Mr. Salerno said his firm qualifies as a "disinterested person" as defined in Bankruptcy Code Sec. 101(14). Regular hourly rates for Stinson Leonard attorneys range from $200.00 to $675.00 and for paralegals and other legal assistants from $95 to $250. About International Technical International Technical Coatings, Inc. is a Phoenix, Arizona-based steel wire manufacturer. It has facilities located in Phoenix, Arizona and Columbus, Ohio. ITC filed a Chapter 11 bankruptcy petition (Bank. D. Ariz. Case No. 15-14709) on Nov. 18, 2015. John Caldwel, the chairman, signed the petition. Judge Madeleine C. Wanslee is assigned the case. Bank of America Bank, N.A., which is owed more than $25.7 million in outstanding matured, defaulted loan obligations, applied for the appointment of a receiver over ITC on Oct. 28, 2015. The Maricopa County Superior Court held an initial hearing on the matter on Nov. 4. A final hearing on the appointment of a receiver was scheduled for Nov. 18 at 1:30 p.m. Unable to secure an agreement with the Bank prior to the scheduled hearing, ITC filed for Chapter 11 protection. In its petition, the Debtor estimated assets of $50 million to $100 million and liabilities of more than $10 million. The Debtor tapped Osborn Maledon, P.A., as bankruptcy counsel. Morris Anderson & Associates, Ltd. serves as its financial advisor. The Office of the U.S. Trustee appointed seven creditors to the official committee of unsecured creditors. Stinson Leonard Street, LLP represents the committee. The Committee retained KRyS Global, USA, as its financial advisor. Secured creditor Bank of America is represented by Robert J. Miller, Esq., Kyle S. Hirsch, Esq., and Amanda L. Cartwright, Esq., at Bryan Cave LLP. KALOBIOS PHARMACEUTICALS: Okayed to Pay $198K in Employee Bonuses ----------------------------------------------------------------- Diana Novak Jones at Bankruptcy Law360 reported that a Delaware bankruptcy judge agreed on Feb. 16, 2016, to let drugmaker KaloBios pay thousands in retention bonuses to the five non-executive employees who remained with the struggling company following the arrest of its infamous former CEO Martin Shkreli. The five employees of KaloBios Pharmaceuticals Inc., which is currently winding its way through Chapter 11 bankruptcy, can receive up to 50 percent of their salary in a bonus paid in two separate installments, U.S. Bankruptcy Judge Laurie Selber Silverstein said in an order. About KaloBios Pharmaceuticals Based in South San Francisco, Calif., KaloBios Pharmaceuticals, Inc., is a company biopharmaceutical company focused on the development of monoclonal antibody therapeutics. The Company's balance sheet at March 31, 2015, showed $32.0 million in total assets, $15.9 million in total liabilities, and a stockholders' deficit of $16.1 million. KaloBios Pharmaceuticals (Nasdaq: KBIO) on Dec. 29, 2015, filed a voluntary petition for bankruptcy protection under Chapter 11 of Title 11 of the United States Bankruptcy Code. The filing was made in the U.S. Bankruptcy Court for the District of Delaware (Case No. 15-12628). The Company is represented by Eric D. Schwartz of Morris, Nichols, Arsht & Tunnell. LA CASA DE LA RAZA: Case Summary & 16 Unsecured Creditors --------------------------------------------------------- Debtor: La Casa de la Raza, Inc. 601 E. Montecito St Santa Barbara, CA 93103 Case No.: 16-10331 Chapter 11 Petition Date: February 23, 2016 Court: United States Bankruptcy Court Central District of California (Santa Barbara) Debtor's Counsel: Matthew M Clarke, Esq. CHRISTMAN KELLEY & CLARKE PC 1334 Anacapa St Santa Barbara, CA 93101 Tel: 805-884-9922 Fax: 866-611-9852 E-mail: matt@christmankelley.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million Largest unsecured creditor: Internal Revenue Service, $120,046 The petition was signed by Marisela Marquez, chief executive. A list of the Debtor's 16 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb16-10331.pdf LATTICE SEMICONDUCTOR: S&P Lowers CCR to 'B', Outlook Stable ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its corporate credit rating on Hillsboro, Ore.-based Lattice Semiconductor Corp. to 'B' from 'B+'. The outlook is stable. At the same time, S&P lowered the issue-level rating on the company's $350 million senior secured term loan to 'B' from 'B+'. The recovery rating on the debt remains '3', indicating S&P's expectation for meaningful (50%-70%; lower half of the range) recovery in the event of a payment default. "The downgrade reflects the company's continued weakness in operating performance, which fell meaningfully short of our forecast," said Standard & Poor's credit analyst Minesh Shilotri. The stable outlook reflects S&P's expectation that the company will generate meaningful revenue growth in fiscal 2016 through new customer wins, resulting in free operating cash flow near $50 million and adjusted leverage below 5x. MAGNUM HUNTER: Can Employ BDO USA as Accountant ----------------------------------------------- U.S. Bankruptcy Judge Kevin Gross authorized Magnum Hunter Resources Corporation to employ BDO USA, LLP, as accountant and auditor, nunc pro tunc to the Petition Date. BDO USA, LLP, will perform an integrated audit of the consolidated financial statements of Magnum Hunter Resources Corporation, which comprise the consolidated balance sheet as of Dec. 31, 2015, and the related consolidated statements of operations, comprehensive income (loss), stockholders' equity, and cash flows for the year then ended, the related notes to the consolidated financial statements, and the Company's internal control over financial reporting as of Dec. 31, 2015, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSQ"). The objective of the integrated audit is to express an opinion in both the consolidated financial statements and the effectiveness of internal control over financial. BDO will also perform reviews of the unaudited condensed quarterly consolidated financial statements to be included in Forms 10-Q filed with the SEC for the quarters ending March 31, June 30, and September 30, 2016; and of the unaudited financial information for the quarters ending December 31, 2016, and 2015 to be included in an unaudited note to the annual consolidated financial statements to be included in Forms 10-K for the years ending December 31, 2016 and 2015. The fees that BDO will be charging in connection with the engagement are: Partners $535 to $750 Senior Managers $300 to $400 Managers $250 to $300 Seniors $190 to $250 Experienced Associates $160 to $190 Associates $150 to $160 BDO USA, LLP, assures the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. About Magnum Hunter Magnum Hunter Resources Corporation is an oil and gas company headquartered in Irving, Texas that primarily is engaged in the acquisition, development, and production of oil and natural gas reserves in the United States. MHRC and its affiliates own interests in approximately 431,643 net acres in total and have proved reserves with an industry value of approximately $234.5 million as of December 31, 2015. In the aggregate, MHRC generated approximately $391.5 million in revenue from their operations in 2014 and generated approximately $169.3 million in revenues from their operations for the ten months ended October 31, 2015. Magnum Hunter Resources Corporation and 19 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Proposed Lead Case No. 15-12533) on Dec. 15, 2015. The petitions were signed by Gary C. Evans as chairman and chief executive officer. The Debtors have engaged Kirkland & Ellis, LLP as their general counsel, Pachulski Stang Ziehl & Jones LLP as local counsel, PJT Partners, LP as investment banker, Alvarez & Marsal North America, LLC, as restructuring advisor, and Prime Clerk, LLC as notice, claims and balloting agent. As of Sept. 30, 2015, the Debtors reported approximately $1.1 billion in total liabilities, as well as $416.3 million in stated value of preferred stock. The Debtors' significant funded debt obligations include: (a) approximately $70 million in principal amount of obligations under the Debtors' Bridge Financing Facility; (b) approximately $336.6 million in principal amount of obligations under the Debtors' second lien credit agreement; (c) approximately $13.2 million in principal amount of Equipment and Real Estate Notes; and (d) approximately $600 million in principal amount of Notes. MAGNUM HUNTER: Committee Can Retain Cole Schotz as Co-Counsel ------------------------------------------------------------- U.S. Bankruptcy Judge Kevin Gross authorized the Committee of Unsecured Creditors of Magnum Hunter Resources Corporation to retain Cole Schotz P.C. as Delaware co-counsel, nunc pro tunc to Dec. 30, 2015. The services that Cole Schotz will perform include: a. serving as Delaware bankruptcy co-counsel to the Committee; b. serving as conflicts counsel to the Committee in conflicts matters as designated by Ropes & Gray and the Committee; c. providing legal advice with respect to the Committee's powers, rights, duties, and obligations in the Chapter 11 Cases; d. assisting and advising the Committee in its consultations with the Debtors regarding the administration of the Chapter 11 Cases; e. assisting the Committee in reviewing and negotiating terms for unsecured creditors with respect to (i) the use of cash collateral, (ii) any sale of substantially all of the Debtors' assets, including negotiating bid procedures and proposed asset purchase agreements, and (iii) other requests for relief which would impact unsecured creditors; f. advising the Committee on the corporate aspects of the Debtors' reorganization or liquidation and the planes) or other means to effect reorganization or liquidation as may be proposed in connection therewith, and participation in the formulation of any such planes) or means of implementing reorganization or liquidation, as necessary; g. taking all necessary actions to protect and preserve the estates of the Debtors for the benefit of creditors, including the investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtors, the investigation of the prior operation of the Debtors' businesses and the investigation and prosecution of estate claims, causes of action, and any other matters relevant to the Chapter 11 cases; h. preparing on behalf of the Committee all necessary motions, applications, complaints, answers, orders, reports, papers and other pleadings and filings in connection with the Committee's duties in the Chapter 11 cases; i. advising and representing the Committee in hearings and other judicial proceedings in connection with all necessary motions, applications, objections and other pleadings, and otherwise protecting the interests of those represented by the Committee; and j. performing all other necessary legal services as may be required and authorized by the Committee that are in the best interests of general unsecured creditors. The attorneys and paralegals primarily responsible for representing the Committee, and their current standard hourly rates are: Norman L. Pernick Member $840 per hour Patrick J. Reilley Member $510 per hour Jacob S. Frumkin Associate $365 per hour David W. Giattino Associate $285 per hour Pauline Z. Ratkowiak Paralegal $260 per hour In addition, other attorneys and paralegals may be involved as necessary and appropriate to represent the Committee. The current rates of Cole Schotz members, special counsel, associates and paralegals are as follows: Members $395 to $850 per hour Special Counsel $385 to $480 per hour Associates $195 to $420 per hour Paralegals $165 to $270 per hour Norman Pernick, Esq., a member of Cole Schotz, assures the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The firm can be reached at: COLE SCHOTZ P.C. Norman L. Pernick, Esq. Patrick J. Reilley, Esq. Jacob S. Frumkin, Esq. David W. Giattino, Esq. 500 Delaware Avenue, Suite 1410 Wilmington, Delaware 19801 Telephone: 302-652-3131 Facsimile: 302-652-3117 E-mail: npernick@coleschotz.com preilley@coleschotz.com jfrumkin@coleschotz.com swilliams@coleschotz.com About Magnum Hunter Magnum Hunter Resources Corporation is an oil and gas company headquartered in Irving, Texas that primarily is engaged in the acquisition, development, and production of oil and natural gas reserves in the United States. MHRC and its affiliates own interests in approximately 431,643 net acres in total and have proved reserves with an industry value of approximately $234.5 million as of December 31, 2015. In the aggregate, MHRC generated approximately $391.5 million in revenue from their operations in 2014 and generated approximately $169.3 million in revenues from their operations for the ten months ended October 31, 2015. Magnum Hunter Resources Corporation and 19 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Proposed Lead Case No. 15-12533) on Dec. 15, 2015. The petitions were signed by Gary C. Evans as chairman and chief executive officer. The Debtors have engaged Kirkland & Ellis, LLP as their general counsel, Pachulski Stang Ziehl & Jones LLP as local counsel, PJT Partners, LP as investment banker, Alvarez & Marsal North America, LLC, as restructuring advisor, and Prime Clerk, LLC as notice, claims and balloting agent. As of Sept. 30, 2015, the Debtors reported approximately $1.1 billion in total liabilities, as well as $416.3 million in stated value of preferred stock. The Debtors' significant funded debt obligations include: (a) approximately $70 million in principal amount of obligations under the Debtors' Bridge Financing Facility; (b) approximately $336.6 million in principal amount of obligations under the Debtors' second lien credit agreement; (c) approximately $13.2 million in principal amount of Equipment and Real Estate Notes; and (d) approximately $600 million in principal amount of Notes. MAGNUM HUNTER: Equity Holders Want More Info on Plan Valuations --------------------------------------------------------------- The Ad Hoc Group of Equity Holders says the disclosure statement explaining Magnum Hunter Resources Corporation's Plan of Reorganization lacks the information necessary for equity security holders and creditors to make an informed decision about the Plan, specifically with respect to valuation. The Equity Holders point out that the only discussion of valuation is in section XI(F) of the Disclosure Statement, which simply references the Valuation Analysis and acknowledges that the Valuation is substantially less than the stated book value of the assets. In conjunction with formulating the Plan, PJT Partners LP, the Debtors' investment banker and financial advisor, performed a valuation analysis that estimates the total enterprise value of the Reorganized Debtors to be approximately $700 million to $1.0 billion, with a mid-point range of $850 million. The Valuation, the Equity Holders point out, is a far cry from the estimated book value of the Debtors' assets as of Sept. 30, 2015 -- $1.5 billion -- and from the Debtors' estimated total enterprise value of the company as of October 2015 -- $1.35 billion. The Debtors have approximately $1.0 billion in funded indebtedness. As of October 2015, the equity holders were in the money, according to the Debtors' own valuation of the company. The Debtors now indicate that the company's total enterprise value is at worst, $650 million less, and at best, $350 million less, than it was in October 2015. The ability of the equity holders and creditors to appropriately understand and evaluate PTJ's Valuation Analysis and the Valuation is of the upmost importance, according to the Equity Holders. To the extent the Court views the Debtors' disclosures with respect to the Valuation and Valuation Analysis sufficient for purposes of the Disclosure Statement, the Ad Hoc Group reserves the right to contest valuation at the Confirmation Hearing. The Ad Hoc Group also reserves the right to contest the expedited confirmation schedule proposed by the Debtors. The Equity Holders aver that the valuation issues in the Cases are particularly complex because of the size the Cases and the highly technical and specialized nature of the Debtors' business. Discovery will be required and a reasonable assessment will require significant work by financial analysts, the Equity Holders tell the Court. Attorneys for the Ad Hoc Group of Equity Holders: VENABLE LLP Jamie L. Edmonson, Esq. Daniel A. O'Brien, Esq. 1201 N. Market St., Suite 1400 Wilmington, DE 19801 Tel: (302) 298-3535 Fax: (302) 298-3550 E-mail: jledmonson@Venable.com dao'brien@Venable.com The Chapter 11 Plan The hearing to consider approval of the Disclosure Statement explaining Magnum Hunter's Plan of Reorganization is slated for February 26, 2016, at 3:00 p.m., Eastern Standard Time. The Debtors' Plan, as amended, is supported by the Official Committee of Unsecured Creditors, 100% of the DIP Facility Lenders, approximately [66.5]% of the Second Lien Lenders, and approximately [79]% of the Notholders. The key element of the Plan is the agreement of creditors to convert their pre- and postpetition funded debt claims, including the DIP facility claims of up to $200 million, second lien claims of $336.6 million, and note claims of $600 million, into new common equity. Specifically, the DIP Facility Lenders shall receive their pro rata share of 28.8 percent of the new common equity, the second lien lenders will receive their Pro Rata share of 36.87 percent of the New Common Equity, and the Noteholders shall receive their Pro Rata share of 31.33 percent of the New Common Equity (all of which is subject to dilution by the Management Incentive Plan). Unsecured creditors are expected to recover 10.3% to 49.1% under the First Amended Plan, while holders of unsecured claims classified as convenience claims are expected to recover 50%. Moreover, the holders of the equipment and real estate notes with principal totaling $13.2 million will have their claims reinstated. A blacklined version of the First Amended Disclosure Statement is available at http://bankrupt.com/misc/MAGNUMds0219.pdf About Magnum Hunter Magnum Hunter Resources Corporation is an oil and gas company headquartered in Irving, Texas that primarily is engaged in the acquisition, development, and production of oil and natural gas reserves in the United States. MHRC and its affiliates own interests in approximately 431,643 net acres in total and have proved reserves with an industry value of approximately $234.5 million as of December 31, 2015. In the aggregate, MHRC generated approximately $391.5 million in revenue from their operations in 2014 and generated approximately $169.3 million in revenues from their operations for the ten months ended October 31, 2015. Magnum Hunter Resources Corporation and 19 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Proposed Lead Case No. 15-12533) on Dec. 15, 2015. The petitions were signed by Gary C. Evans as chairman and chief executive officer. The Debtors have engaged Kirkland & Ellis, LLP as their general counsel, Pachulski Stang Ziehl & Jones LLP as local counsel, PJT Partners, LP as investment banker, Alvarez & Marsal North America, LLC, as restructuring advisor, and Prime Clerk, LLC as notice, claims and balloting agent. As of Sept. 30, 2015, the Debtors reported approximately $1.1 billion in total liabilities, as well as $416.3 million in stated value of preferred stock. The Debtors' significant funded debt obligations include: (a) approximately $70 million in principal amount of obligations under the Debtors' Bridge Financing Facility; (b) approximately $336.6 million in principal amount of obligations under the Debtors' second lien credit agreement; (c) approximately $13.2 million in principal amount of Equipment and Real Estate Notes; and (d) approximately $600 million in principal amount of Notes. MAPLE BANK: To Wind Up Canadian Biz; KPMG Named as Liquidator ------------------------------------------------------------- The Ontario Superior Court of Justice authorized the Attorney General of Canada to wind-up the business in Canada of Maple Bank GmbH under the Winding-Up and Restructuring Act and the Bank Act. The Court appointed KPMG Inc. as liquidator. Interested persons may contact the firm directly for further information at: KPMG Inc. Liquidator of the Business in Canada of Maple Bank GmbH Attention: Sven Dedic 333 Bay Street, Suite 4600 Toronto, ON M5H 2S5 Tel: (416) 777-3091 Fax: (416) 777-3364 Email: svendedic@kpmg.ca MEDIASHIFT INC.: Cash Use for Gap Period Approved ------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, approved on a final basis a stipulation authorizing MediaShift, Inc. and Ad-Vantage Networks, Inc., to use cash collateral. MediaShift Holdings, Inc. ("MSH") and Kirby Enterprise Capital Management, LLC and related entities and individuals ("Kirby Parties") consented to the Stipulation. The Debtors believed that MSH and the Kirby Parties are the only entities and individuals that may have an interest in the Debtors' Cash Collateral. The Stipulation was also approved by the Official Committee of Unsecured Creditors (" Official Committee"). MSH and the Kirby Parties have consented to the Debtors' use of $10,540 in Cash Collateral to pay certain operating expenses of the Debtors during the period ("Gap Period") of Dec. 16, 2015 to December 30, 2015, the hearing date on a motion the Debtors had filed for approval of a post-petition loan ("DIP Loan") from MSH to fund the Debtors' operations from Dec. 30, 2015 though the close of a planned auction sale ("363 Sale") of substantially all of the Debtors' assets to MSH and the Kirby Parties pursuant to a stalking horse bid by them that the parties are continuing to document or such higher or better bid for all or substantially all of the Debtors' assets obtained at the 363 Sale and approved by the Court, which sale is expected to close by the end of Jan. 31, 2016, or as soon thereafter as possible. The Debtors believed the payments set forth in the Budget to be made during the Gap Period are required to avoid immediate irreparable harm to the Debtors and their estates and to maintain going concern and asset values for the benefit of all parties in interest. The Debtors told the Court that in exchange for MSH and the Kirby Parties' consent to the Debtors' use of Cash Collateral pursuant to the Stipulation and the Budget, and as a form of adequate protection, the Debtors' agreed to provide MSH and the Kirby Parties with replacement liens in the Debtors' postpetition collateral with the same, validity, extent, and priority as the MSH and the Kirby Parties were entitled to on the Petition Date. MediaShift, Inc. and its affiliated debtors are represented by: Ron Bender, Esq. Todd M. Arnold, Esq. LEVENE, NEALE, BENDER, YOO & BRILL L.L.P 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Telephone: (310)229-1234 Facsimile: (310)229-1244 Email: rb@lnbyb.com tma@lnbyb.com About MediaShift, Inc. 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. MEDIASHIFT INC: $425K Postpetition Financing Approved ----------------------------------------------------- MediaShift, Inc., and Ad-Vantage Networks, Inc., sought and obtained from Judge Sandra R. Klein, of the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, authorization to obtain postpetition financing from MediaShift Holdings, Inc. The Debtors sought to obtain credit and incur debt on a final basis in the amount of $425,000, secured by first priority perfected liens on substantially all of the Debtors' assets. The Loan contains, among others, the following terms: (a) Term: From the Closing Date to the earlier of (1) the close of any sale of all or substantially all of the Debtors' assets, and (2) Jan. 31, 2016 which may be extended in the Debtor's sole discretion for up to 30 days upon prior written notice to Lender, provided that interest will continue to run on the DIP Obligations. (b) Rate: The outstanding principal balance of the Loan will bear interest at a per annum rate equal to 12%. However, upon the occurrence and during the continuation of an Event of Default, the interest rate will be increased to 16%. A full-text copy of the Court's Final DIP Order dated Dec. 30, 2015, is available at http://is.gd/hdfnp3 About MediaShift, Inc. 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. MERCURY SIGNS: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Mercury Signs & Display, Ltd. 12407 Sowden Road Houston, TX 77080-2032 Case No.: 16-30906 Chapter 11 Petition Date: February 23, 2016 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Hon. Jeff Bohm Debtor's Counsel: Margaret Maxwell McClure, Esq. LAW OFFICE OF MARGARET M. MCCLURE 909 Fannin, Suite 3810 Houston, TX 77010 Tel: 713-659-1333 Fax: 713-658-0334 E-mail: margaret@mmmcclurelaw.com Total Assets: $817,790 Total Liabilities: $772,558 The petition was signed by Travis S. Hoffart & Ted Hoffart, Jr., managing members of GPs. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. MOLYCORP INC: Bondholders Not Part of Settlement, Lawyer Says ------------------------------------------------------------- Steven Church, writing for Bloomberg Brief - Distress & Bankruptcy, reported that secured bondholders of Molycorp Inc. aren't part of a settlement with a committee of unsecured creditors that was announced on Feb. 22, a lawyer for the company said in court the following day. According to the report, investors who hold 10 percent notes due in 2020 will share either equity or cash with lower-ranking creditors under terms of the settlement. A committee of unsecured creditors has agreed to drop a lawsuit against Molycorp's main lender, Oaktree Capital Management, and Molycorp's officers and directors, the report related. 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 creditors. * * * The U.S. Bankruptcy Court for the District of Delaware will convene a hearing to consideration confirmation of Molycorp, Inc., et al.'s Plan, including the approval of the sale of substantially all of the Debtors' assets pursuant to the Plan, on March 28, 2016, 10:00 a.m., Eastern Time. Judge Christopher Sontchi in Delaware approved the disclosure statement explaining the Debtors' Plan on Jan. 20, 2015, after the Debtors revised the Disclosure Statement to incorporate certain modifications directed by the Court during the Jan. 14 hearing. The Plan contemplates two possible outcomes: (1) the sale of substantially all of the Debtors' assets if certain conditions set forth in the Plan are satisfied and (2) (a) the sale of the assets associated with the Debtors' Mountain Pass mining facility in San Bernardino County, California; and (b) the stand-alone reorganization around the Debtors' other three business units. MOLYCORP INC: Oaktree, Creditors Reach Bankruptcy Deal ------------------------------------------------------ Peg Brickley, writing for Dow Jones' Daily Bankruptcy Review, reported that junior and senior creditors have reached a deal that will speed the end of the bankruptcy of Molycorp, and give senior lender Oaktree Capital Management most of the value in the embattled rare-earths company. According to the report, the deal averts prolonged litigation between junior creditors and Oaktree over loans to Molycorp, which was driven to file for chapter 11 protection in June 2015, after prices for its products plunged. 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 creditors. * * * The U.S. Bankruptcy Court for the District of Delaware will convene a hearing to consideration confirmation of Molycorp, Inc., et al.'s Plan, including the approval of the sale of substantially all of the Debtors' assets pursuant to the Plan, on March 28, 2016, 10:00 a.m., Eastern Time. Judge Christopher Sontchi in Delaware approved the disclosure statement explaining the Debtors' Plan on Jan. 20, 2015, after the Debtors revised the Disclosure Statement to incorporate certain modifications directed by the Court during the Jan. 14 hearing. The Plan contemplates two possible outcomes: (1) the sale of substantially all of the Debtors' assets if certain conditions set forth in the Plan are satisfied and (2) (a) the sale of the assets associated with the Debtors' Mountain Pass mining facility in San Bernardino County, California; and (b) the stand-alone reorganization around the Debtors' other three business units. MOLYCORP INC: Reports Foreign Units' Earnings Thru Dec. 2015 ------------------------------------------------------------ Molycorp Inc. submitted to the U.S. Bankruptcy Court for the District of Delaware its periodic report, as of Dec. 31, 2015, on the value, operations and profitability of those entities in which the estate holds a substantial or controlling interest, as required by Bankruptcy Rule 2015.3. The estates of Molycorp, Inc., et al. hold a substantial or controlling interest in these entities: Interest of Name of Entity the Estate -------------- ---------- Industrial Minerals S.a.r.l. 100% Jiangyin Jiahua Advanced Material Resources Co., Ltd. 95% Magnequench International Trading (Tianjin) Co., Ltd. 100% Magnequench (Korat) Co., Ltd. 100% Magnequench Neo Powders Pte. Ltd. 100% Molycorp (Beijing) Co., Ltd. 100% Molycorp Chemicals & Oxides (Europe) Ltd. 100% Molycorp Japan, Inc 100% Molycorp Korea Inc. 100% Molycorp Rare Metals Korea Inc. 100% Molycorp Rare Metals (Oklahoma), LLC 80% Molycorp Silmet AS 100% Neo Performance Materials (Singapore) Pte. Ltd. 100% NMT Holdings GmbH 100% Shanxi Jia Hua Galaxy Electronic Materials Co., Ltd. 60% Xin Bao Investment Limited 100% Zibo Jiahua Advanced Material Resources Co., Ltd. 95% Zibo Jia Xin Magnetic Materials Ltd. 100% Boulder Wind Power, Inc. Pref. Stock Gan Zhou Ke Li Rare Earth New Material 25% GQD Special Material (Thailand) Co., Ltd. 20% Ingal Stade GmbH 50% The owned-entities had these assets and liabilities as of Dec. 31, 2015, and earnings during the six months ended Dec. 31, 2015: 6-Months Name of Entity Assets Liabilities Earnings -------------- ------ ----------- -------- Industrial Minerals ($110,602) $0 ($14,352) Jiangyin Jiahua $25,695,759 $3,954,400 ($2,206,253) Magnequench Tianjin $18,741,662 $1,042,915 $7,839,088 Magnequench Korat $5,327,792 $1,447,682 $931,217 Magnequench Neo $4,416,510 $283,720 $215,616 Molycorp Beijing $506,727 $108,193 $11,096 Molycorp Europe $6,757,613 $666,929 $662,690 Molycorp Japan $12,280,537 $2,018,541 $411,581 Molycorp Korea $233,959 $29,592 $24,301 Molycorp Rare Korea $5,053,025 $752,491 $667,180 Molycorp Oklahoma $1,679,975 $1,497,850 $76,098 Molycorp Silmet $76,319,920 $4,320,309 ($6,476,098) Neo Singapore $835,987 $70,347 $44,353 NMT Holdings ($561,988) $0 ($9,368) Shanxi Jia $3,205,168 $1,000,776 ($275,284) Xin Bao $22,308,015 $50,318 ($61,085) Zibo Jiahua $30,267,080 $7,924,741 $4,731,822 Zibo Jia Xin ($589,951) $8,170 $20,266 Boulder Wind $0 $0 $0 Gan Zhou N/A N/A N/A GQD Thailand N/A N/A N/A Ingal Stade $0 $0 $0 Industrial Minerals S.a.r.l., a holding company incorporated in Luxembourg, owns 100% of the equity interest in Sooriyan Mining Company (Private) Limited, a rare earth exploration company in Sri Lanka. Jiangyin Jiahua Advanced Material Resources Co., Ltd., is a rare earths processing plant, located approximately 150 kilometers from Shanghai, in the city of Jiangyin, Jiangsu Province, China. Magnequench International Trading (Tianjin) Co., Ltd. engages in the sales and distribution of Magnequench Neo Powders to domestic Chinese customers. Magnequench (Korat) Co., Ltd. is a magnetic powder and alloy manufacturing facility located on approximately 250 kilometers of land northeast of Bangkok, Thailand. Located in Singapore, Magnequench Neo Powders Pte. Ltd. provides sales support, and research and development aimed at introducing new powder grades that meet new application needs as specified by the customers. Molycorp (Beijing) Co., Ltd. provides administrative support for operations in China. Located in Abingdon, United Kingdom, Molycorp Chemicals & Oxides (Europe) Ltd. primarily engages in the sales and distribution of rare earth/zirconium mixed oxide related products purchased from Zibo Jiahua Advanced Material Resources Co., Ltd. and Jiangyin Jiahua Advanced Material Resources Co., Ltd., and also engages in research and development of rare earth mixed oxides. Based in Tokyo, Japan, Molycorp Japan, Inc., engages in the sales and distribution of rare earth/zirconium mixed oxide related products purchased from Zibo Jiahua Advanced Material Resources Co., Ltd. and Jiangyin Jiahua Advanced Material Resources Co., Ltd. Located in Seoul, Molycorp Korea Inc provides sales services to both rare earth/Zirconium and Magnequench Neo Powders. Located in Hyeongok Industrial Zone in the Republic of Korea, Molycorp Rare Metals Korea Inc. is a facility that produces and sells Gallium Trichloride. Located in Quapaw, Oklahoma, Molycorp Rare Metals (Oklahoma), LLC is a manufacturer of Gallium Trichloride and was formerly known as GalliumCompounds. Primarily located in Sillamäe, Estonia, Molycorp Silmet AS transforms rare earth elements into rare earth products and has a longstanding experience in the manufacturing of Niobium and Tantalum rare metal products. Neo Performance Materials (Singapore) Pte. Ltd. is dedicated to the research and development of new applications for rare earth/Zirconium and rare metal products. Located in Tubingen, Germany, NMT Holdings GmbH is a holding company which holds a 100% equity interest in Magnequench GmbH and a 50.04% share in Buss & Buss Spezialmetalle GmbH. Shanxi Jia Hua Galaxy Electronic Materials Co., a joint venture company, owns a facility that produces Gallium and is located in Shanxi, China. Located in Hong Kong, Xin Bao Investment Limited, a holding company, is the sole shareholder of Magnequench (Tianjin) Company Limited and owner of a 33% interest in Toda Magnequench Magnetic Material (Tianjin) Co., Ltd., which produces magnetic compounds. Zibo Jiahua Advanced Material Resources Co., Ltd. facility is a rare earths and zirconium processing plant located 21 kilometers from the center of Zibo, an industrial center in Shandong Province, China. Zibo Jia Xin Magnetic Materials Ltd. is a company that owns an inactive facility located within the boundaries of Zibo Jia Hua Advanced Material Resources Co., Ltd. Boulder Wind Power, Inc., is a company engaged in the development of permanent magnet generators and power conversion technology, which investment was subsequently written off in 2014. Gan Zhou Keli Rare Earth New Material is a Chinese business that converts rare earth oxides into metal for Magnequench (Tianjin) Company Limited for use in its production of magnetic powder, and the results of operations of this company are reported under Magnequench Inc. based on equity method of accounting. Ingal Stade GmbH is a German joint venture involved in the extraction of gallium metal ("GaM") from alumina smelter bayer liquor with purity level of 5N (99.999%) or higher, but the investment of Molycorp Minerals Canada ULC in this joint venture was reduced to zero in 2014. GQD Special Material (Thailand) Co., Ltd. is a company in Thailand that converts rare earth oxides into metal for Magnequench (Tianjin) Company Limited and Magnequench (Korat) Co., Ltd. for use in their production of magnetic powder. A full-text copy of the Rule 2015.3 Report, which contains the balance sheet, statement of operations, and statement of cash flow of each of the owned entities is available for free at: http://bankrupt.com/misc/Molycorp_1237_2015.3_Report.pdf 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 creditors. * * * The Bankruptcy Court will convene a hearing to consideration confirmation of Molycorp, Inc., et al.'s Plan, including the approval of the sale of substantially all of the Debtors' assets pursuant to the Plan, on March 28, 2016, 10:00 a.m., Eastern Time. Judge Christopher Sontchi approved the disclosure statement explaining the Debtors' Plan on Jan. 20, 2015, after the Debtors revised the Disclosure Statement to incorporate certain modifications directed by the Court during the Jan. 14 hearing. The Plan contemplates two possible outcomes: (1) the sale of substantially all of the Debtors' assets if certain conditions set forth in the Plan are satisfied and (2) (a) the sale of the assets associated with the Debtors' Mountain Pass mining facility in San Bernardino County, California; and (b) the stand-alone reorganization around the Debtors' other three business units. MOTORS LIQUIDATION: Won't Pursue Avoidance Action Claims Amendment ------------------------------------------------------------------ As previously disclosed on Jan. 13, 2016, in a Current Report on Form 8-K filed with the Securities and Exchange Commission, the Motors Liquidation Company GUC Trust announced that it had reached an agreement in principle with the Motors Liquidation Company Avoidance Action Trust regarding the treatment of certain potential general unsecured claims of defendants to a legal action being pursued by the Avoidance Action Trust. The Proposed Agreement, if it were to become effective, would have resulted in limiting the potential liability of the GUC Trust associated with the Term Loan Avoidance Action Claims, which amount was previously uncertain, to $75 million. As stated in the Prior 8-K, the Proposed Agreement was subject to the satisfaction of a number of conditions precedent, including but not limited to a requirement that the parties negotiate and reach agreement on definitive documentation incorporating the terms of the Proposed Agreement. The GUC Trust announced that the parties to the Proposed Agreement were unable to reach agreement on the final terms of the Proposed Agreement. Accordingly, the GUC Trust will no longer be pursuing the Proposed Agreement. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. On Dec. 15, 2011, Motors Liquidation Company was dissolved. On the Dissolution Date, pursuant to the Plan and the Motors Liquidation Company GUC Trust Agreement, dated March 30, 2011, between the parties thereto, the trust administrator and trustee -- GUC Trust Administrator -- of the Motors Liquidation Company GUC Trust, assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded prior to the Dissolution Date. As of June 30, 2015, Motors Liquidation had $860 million in total assets, $74 million in total liabilities and $786 million in net assets in liquidation. MULTIPLAN INC: Bank Debt Trades at 3% Off ----------------------------------------- Participations in a syndicated loan under which MultiPlan Inc is a borrower traded in the secondary market at 97.10 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.50 percentage points from the previous week. MultiPlan Inc pays 300 basis points above LIBOR to borrow under the $ 2.2 billion facility. The bank loan matures on March 14, 2021 and carries Moody's B1 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. NEIMAN MARCUS: Bank Debt Trades at 14% Off ------------------------------------------ Participations in a syndicated loan under which Neiman Marcus Group Inc is a borrower traded in the secondary market at 85.73 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 1.38 percentage points from the previous week. Neiman Marcus pays 300 basis points above LIBOR to borrow under the $ 2.9 billion facility. The bank loan matures on Oct. 16, 2020 and carries Moody's B2 rating and Standard & Poor's did not give any rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. P.F. CHANG: S&P Revises Outlook to Negative & Affirms 'B-' CCR -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the Scottsdale, Ariz.-based Asian-themed restaurateur P.F. Chang's China Bistro Inc. to negative from stable. At the same time, S&P affirmed all ratings, including the 'B-' corporate credit rating. "The outlook revision reflects our expectation that weakened operating performance will pressure liquidity, resulting in the covenant cushion falling below 15%. We believe a significant turnaround in comparable sales and customer traffic is unlikely amid a weakening casual dining market," said credit analyst Mathew Christy. "Although we continue to see some growth in the company's licensing sales, these represents relatively insignificant portion of total revenue and we now expect negative trends in comparable sales to persist in 2016, only partially offset by new restaurants, resulting in modestly declining revenue in 2016." "The negative outlook reflects our expectation that weaker operating performance will likely result in weak free operating cash flow generation (neutral and slightly negative) and deteriorating liquidity, pressuring covenant cushion to be below the 15% level in 2016, especially after the step-down of the leverage covenant in June 2016," S&P noted. A lower rating could result from further deterioration of the company's liquidity such that the capital structure becomes unsustainable, or weaker operating performance results in an increasing likelihood of breaching its senior secured leverage covenants. This could occur if EBITDA declines by more than 8% from S&P's current base-case projections. In this scenario, interest coverage would decline to the low-2.0x range and adjusted leverage would increase to about the mid-6x range. S&P could consider an upgrade if the company achieves a sustained improvement in operating results with consistent positive comparable sales growth and increasing operating margins, leading to adequate cushion under the secured leverage covenant to more than 15% on a current and projected basis. This scenario could occur if EBITDA improved more than 8% versus S&P's 2016 base-case scenario, commensurate with adjusted leverage in the mid-5x range. PACIFIC SANDS: Provides Update on Corporate Wide Reorganization --------------------------------------------------------------- Pacific Sands, Inc., for the quarter ending December 31, 2015, had a loss from operations of $163,000. Sales declined 80% from the comparable prior year quarter primarily as a result of the lack of working capital caused by very high debt service costs. The company has been operating without a full time CFO. Accordingly, a full time consultant with both a financial background and experience in small business development and operations was added to the Board of Directors at the beginning of the year. At that time the company implemented a corporate wide reorganization dubbed Project Lazarus. To date under this program, the company has restructured nearly a quarter of a million dollars of very high cost debt, some with principal and interest paid daily, to much lower interest rates and on more sustainable payment terms. One CD was refinanced as a traditional low cost loan to cut potential dilution from future conversions. Nearly $100,000 of concessions, and principal reductions, of vendor claims have been achieved, resulting in a more normal flow of materials into inventory. As raw material shipments have increased, order backlogs have begun to decline and customers are being reengaged. In addition, steps have been taken to significantly reduce selling and general overhead cost to less than $200,000 per quarter. While not sustainable for the longer term, these cuts have allowed the company to substantially reduce its profit and loss break-even point. A fresh, new look to the company website www.oxyboost.com has been implemented to highlight the newly reformulated and rebranded household laundry and cleaning products as well as the unique and singular EcoOne Pool and Spa portfolio. Also, the company has begun to promote and market its products on additional social media platforms. The company has raised a very modest amount of capital without the use of CDs so far this quarter. A shortage of working capital still limits the ability of the company to increase sales levels significantly. As additional improvements to our operations under our reorganization plan are implemented, we hope to be able to obtain additional non-equity sources of capital to fund operations. As of this date the company has nearly 250,000,000 shares of common stock outstanding because of the use of CDs to fund past operations. Every officer and director of this company holds shares of stock, and as a group owns nearly 22,000,000 shares. The support of other shareholders, customers, vendors, and especially our loyal employees during this period of transition is appreciated. About The Company Pacific Sands, Inc. -- http://www.oxyboost.com/-- develops, markets and sells unique non-toxic, earth, health and child-friendly products for cleaning, personal hygiene, and water maintenance applications. The company's ecoone(R) Spa Treatment system earned a third place finish in the "Best Green Product" category at the International Pool and Spa show held November 2012 in New Orleans. PARAGON OFFSHORE: April 6 Hearing on Disclosure Statement --------------------------------------------------------- A hearing will be held before the Honorable Christopher S. Sontchi, U.S. Bankruptcy Judge, in the U.S. Bankruptcy Court for the District of Delaware on April 6, 2016 at 10:00 a.m. (prevailing Eastern Time), to consider approval of the disclosure statement explaining Paragon Offshore plc, et al.'s proposed reorganization plan. Objections, if any, to approval of the Proposed Disclosure Statement are due March 30, 2016 at 4:00 p.m. (prevailing Eastern Time). As reported in the Feb. 16, 2016 edition of the TCR, Paragon Offshore plc, et al., filed with their Chapter 11 bankruptcy petitions a proposed reorganization plan that lets holders of $1.02 billion in senior notes recover up to 72.6%, returns 100% cents on the dollar to general unsecured creditors, and lets existing shareholders retain 65% of the company. Holders of approximately 95.6% in outstanding principal amount of the revolving credit agreement claims entitled to vote on the Plan and holders of 76.9% in outstanding principal amount of the senior notes claims entitled to vote on the Plan have already agreed to vote in favor of the Plan. The rights of holders of general unsecured claims will be left unaltered by the Plan, and the Debtors will continue to pay or dispute each general unsecured claim in the ordinary course of business. The restructuring will leave the Debtors' business intact under Paragon Offshore and substantially de-lever it, providing for the reduction of $1.1 billion of the Debtors' existing debt and $60 million of the Debtors' annual cash interest expense upon the completion of the Restructuring. Copies of the Plan and Disclosure Statement are available for free at: http://bankrupt.com/misc/Paragon_11_Ch11_Plan.pdf http://bankrupt.com/misc/Paragon_12_Disc_Statement.pdf Counsel to the Debtors: WEIL, GOTSHAL & MANGES LLP 767 Fifth Avenue New York, NY 10153 Attn: Gary T. Holtzer, Esq. Stephen A. Youngman, Esq. Telephone: (212) 310-8000 E-mail: gary.holtzer@weil.com stephen.youngman@weil.com Co-Counsel to the Debtors: RICHARDS, LAYTON & FINGER, P.A. One Rodney Square 920 North King Street Wilmington, DE 19801 Attn: Mark D. Collins, Esq. Amanda R. Steele, Esq. Telephone: (302) 651-7700 E-mail: collins@rlf.com steele@rlf.com Counsel to the Ad Hoc Committee of Senior Noteholders PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP 1285 Avenue of the Americas New York, NY 10019 Attn: Andrew N. Rosenberg, Esq. Elizabeth R. McColm, Esq. Telephone: (212) 373-3000 E-mail: arosenberg@paulweiss.com emccolm@paulweiss.com Counsel to the Revolving Credit Facility Agent: SIMPSON THACHER & BARTLETT LLP 425 Lexington Avenue New York, NY 10017 Attn: Sandeep Qusba, Esq. Kathrine A. McLendon, Esq. Telephone: (212) 455-2000 E-mail: squsba@stblaw.com kmclendon@stblaw.com 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 case. 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. Judge Christopher S. Sontchi is assigned to the cases. PEABODY ENERGY: Bank Debt Trades at 57% Off ------------------------------------------- Participations in a syndicated loan under which Peabody Energy Power Corp is a borrower traded in the secondary market at 42.56 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.94 percentage points from the previous week. Peabody Energy pays 325 basis points above LIBOR to borrow under the $1.2 billion facility. The bank loan matures on Sept. 20, 2020 and carries Moody's B3 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. PEABODY ENERGY: Coal Bankruptcies May Leave Cleanup to Taxpayers ---------------------------------------------------------------- Jennifer A. Dlouhy, writing for Bloomberg Brief - Distress & Bankruptcy, reported that recent coal company bankruptcies raise the risk that taxpayers will "end up holding the bag" and foot the costs of cleaning up old mines, U.S. Secretary of Interior Sally Jewell said on Feb. 23. "There is a very significant potential problem and risk to the taxpayer with the pretty high-profile bankruptcies that have taken place recently," Ms. Jewell told the Senate Energy and Natural Resources Committee, the report related. According to Bloomberg, coal companies mining on federal lands are required to pay for cleanup costs and other liabilities. While some Appalachian states allow those companies to pay into a bond fund, companies in western states generally use their balance sheets as collateral, a process known as "self-bonding," the Bloomberg report added. "With some of these recent bankruptcies, we have seen some negotiation between the state and the company" that federal regulators "find of concern," Ms. Jewell said, the report further related. As previously reported by The Troubled Company Reporter, citing Bloomberg Brief, an environmental advocacy group is calling on the Illinois Department of Natural Resources to strip Peabody Energy's self-bonding authority, asserting the coal mining giant's financial condition has significantly deteriorated in recent years making bankruptcy a virtual certainty. According to the report, the Environmental Law & Policy Center sent a letter Feb. 1 to IDNR Director Wayne Rosenthal asking the agency to require Peabody to substitute its current $92 million in self-bonded obligations in Illinois with surety bonds -- essentially insurance policies purchased from a guarantor that could cover the coal company's obligations in the event of financial collapse. The letter contends Peabody's balance sheet is so compromised that bankruptcy is a strong possibility for the energy company, the report related. "Illinois taxpayers should not be left holding the bag for the reclamation of Peabody's coal mines," the report cited Howard Learner, ELPC's executive director, as saying. "Moreover, the environment should not have to suffer because sufficient funds are not available to get the job done. We are dealing with a company that had a stock price of about $74 three or four years ago. Today Peabody's stock has an adjusted value of about 30 cents -- a penny stock." Kelley Wright, manager of corporate communications for Peabody, dismissed the ELPC's representations, saying "Peabody has an excellent record of land restoration and is routinely recognized for these programs," the Bloomberg report related. "All of our mines were reaffirmed for self-bonding eligibility last year in all states where we have self-bonding. The Illinois Basin is a core region, and our U.S. mining results have been solid even with the challenging markets." Peabody Energy Corp. is based in St. Louis, Missouri, and is the largest coal miner in the U.S. * * * As reported by the Troubled Company Reporter on Jan. 20, 2016, Standard & Poor's Ratings Services said it lowered its corporate credit rating on St. Louis-based Peabody Energy Corp. to 'CCC+' from 'B'. PETSMART INC: Bank Debt Trades at 4% Off ---------------------------------------- Participations in a syndicated loan under which Petsmart Inc is a borrower traded in the secondary market at 96.21 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.69 percentage points from the previous week. Petsmart Inc pays 325 basis points above LIBOR to borrow under the $ 4.3 billion facility. The bank loan matures March 10, 2022 and carries Moody's BB- rating and Standard & Poor's Ba3 rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. PHOTOMEDEX INC: To Sell Consumer and Professional Businesses ------------------------------------------------------------ PhotoMedex, Inc., announced it has entered into a definitive agreement to sell its consumer products and professional products businesses to DS Healthcare Group for total consideration of approximately $48 million in a combination of convertible preferred stock, common stock and a note. This proposed transaction, which is structured in two reverse triangular mergers, is subject to customary closing conditions, including PhotoMedex and DS Healthcare Group shareholders approvals and regulatory approvals. The boards of directors of both PhotoMedex and DS Healthcare Group have voted unanimously in favor of the transaction, which is expected to close in the second quarter of 2016. Upon consummation of the transaction and assuming conversion of convertible preferred securities and exercise of existing warrants deemed by the parties to be equivalent in the transaction to issued common stock, it is expected that there will be approximately 43.3 million DS Healthcare Group common shares outstanding. After conversion of the deemed PhotoMedex common stock equivalents, PhotoMedex shareholders will own approximately 43% of the company and DS Healthcare shareholders will own approximately 57%, each on an "as converted" basis. Commenting on the proposed transaction, Dr. Dolev Rafaeli, chief executive officer of PhotoMedex, said, "This agreement presents our shareholders with an opportunity to receive significant value for our operating assets, both immediately and over the coming three years. In particular Radiancy's home-use medical and personal care devices franchise and its unique marketing platform will gain an additional arsenal of complementary products for distribution alongside our portfolio of consumer brands. Also, our Neova professional skin care line will move seamlessly into DS Healthcare's direct salesforce in Mexico, Spain and Colombia and distributors in Canada, Portugal, Italy, South Africa, China, and Brazil Our proprietary consumer marketing engine will be used to increase the sales growth of DS Healthcare Group's disruptive products through DTC channels and a direct-marketing platform. The structure of this agreement permits our shareholders to participate in the growth anticipated by DS Healthcare in the near future while the talented PhotoMedex staff is expected to transition to the new owners. PhotoMedex intends to distribute the proceeds from this agreement, net of certain professional fees, severance, income taxes and other costs, to its shareholders in an orderly fashion over the next three years." "We are very excited to add these innovative devices that have absolutely no equivalent market competitor and a range of proprietary technologies to our growing portfolio of products. PhotoMedex has remarkable expertise in the development of personal medical devices and has many additional products in the pipeline, some of which have already received FDA clearance. In addition, the Neova professional skin care line adds valuable access to a global network of physicians. Through this transaction we will expand our professional aesthetic and therapeutic skin care portfolio in anti-aging skin care and specialty skin care products used post-hair transplantation, and add to our portfolio of at-home products for hair removal, acne treatment and back pain relief," commented Daniel Khesin, chairman and founder of DS Healthcare Group. "Through this transaction we will have a truly global footprint and a massive marketing structure to unlock extraordinary synergies and opportunities for our shareholders." "DS Healthcare is uniquely positioned to immediately take advantage of Radiancy assets to extract substantial value for all shareholders," stated Renee Barch-Niles, chief executive officer of DS Healthcare. "Our combined product development expertise, distribution relationships and industry-leading management team will allow us to scale this business to unlock tremendous appreciation to the company's combined value." Transaction Terms Under the terms of the agreement, DS Healthcare will issue $20 million convertible Series A preferred stock and a note in the amount of $4.5 million in consideration of the Radiancy consumer products business. In addition, in consideration of the PhotoMedex technology business, in which Neova is a part, DS Healthcare will issue 8.75 million common shares, of which 6.0 million will be considered "make whole" shares such that the total value of the 6.0 million shares of common stock must have a value of $20 million on the third anniversary of the closing or additional shares will be issued. More information will be contained in a Form 8-K to be filed today and available at www.sec.gov and in a proxy statement to be issued to PhotoMedex shareholders and filed at www.sec.gov. In addition, the composition of the DS Healthcare Group board of directors will change, and will include three directors from PhotoMedex, three directors from DS Healthcare and one independent director. Dolev Rafaeli, chief executive officer of PhotoMedex, Dennis McGrath, president and chief financial officer of PhotoMedex, and a third independent director from PhotoMedex’s current board of directors, will join the DS Healthcare Group’s board of directors upon closing of the transaction. The additional board members will include Michael Pope, managing director of Vert Capital and president of BOXLIGHT Corporation, Daniel Khesin, chairman of the board and founder of DS Healthcare, and Renee Barch-Niles, chief executive officer of DS Healthcare. The parties will mutually agree upon a seventh and independent director. PhotoMedex intends to seek the customary six-month extension to comply with the Nasdaq minimum bid price requirement, which is accompanied by moving the listing of PhotoMedex common stock from the Nasdaq Global Market to the Nasdaq Capital Market. Canaccord Genuity Inc. served as financial advisor to PhotoMedex on this transaction and Stevens and Lee served as legal counsel. Maxim Group LLC served as financial advisor and CKR Law served as legal counsel to DS Healthcare Group on this transaction. Stockholder Approval In connection with the transaction, each of DS Healthcare and PhotoMedex will file with the SEC a proxy statement to be sent to their respective stockholders seeking the approval from DS Healthcare's stockholders of the issuance of shares to PhotoMedex in connection with the mergers and from PhotoMedex's stockholders of, among other things, the sale of substantially all of its assets pursuant to the mergers. The consummation of the mergers are subject to, among other things, the review of the proxy statements by the SEC, the approvals by DS Healthcare stockholders and PhotoMedex stockholders, and other customary closing conditions. The boards of directors of PhotoMedex and DS Healthcare have approved the transaction. Holders of approximately 24% of the common stock of DS Healthcare and approximately 17% of the common stock of PhotoMedex have agreed to vote their shares in favor of the merger, which is currently expected to close in the second quarter of 2016. Additional information is available for free at: http://is.gd/9jfTbs 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. POSITRON CORP: Joseph Oliverio Quits as President and Chairman -------------------------------------------------------------- Joseph G. Oliverio resigned as president and chairman of the Board of Directors of Positron Corporation effective Feb. 16, 2016, according to a document filed with the Securities and Exchange Commission. That resignation was not due to a disagreement with the Registrant on any matter relating to the Company's operations, policies or practice, the filing stated. About Positron Corporation Headquartered in Fishers, Indiana, Positron Corporation is a molecular imaging company focused on nuclear cardiology. Positron reported a net loss of $2.58 million on $1.46 million of sales for the year ended Dec. 31, 2014, compared to a net loss of $7.1 million on $1.63 million of sales for the year ended Dec. 31, 2013. As of June 30, 2015, the Company had $1.64 million in total assets, $2.97 million in total liabilities and a stockholders' deficit of $1.32 million. Sassetti LLC, in Oak Park, Illinois, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has a significant accumulated deficit which raises substantial doubt about the Company's ability to continue as a going concern. QUICKSILVER RESOURCES: Canada Unit Has Forbearance Until April 1 ---------------------------------------------------------------- Quicksilver Resources Canada Inc., a wholly owned subsidiary of Quicksilver Resources Inc., entered into a Fifth Forbearance Agreement on February 16, 2016, with: -- JPMorgan Chase Bank, N.A., as global administrative agent; -- JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian administrative agent; and -- the lenders party thereto, relating to the Amended and Restated Credit Agreement dated as of December 22, 2011 by and among the Company, as parent, Quicksilver Canada, as borrower, the Canadian Administrative Agent, and the lenders parties thereto. Under the Fifth Forbearance Agreement, the Administrative Agents and the requisite lenders agreed to, among other things, continue to forbear from exercising all of their rights and remedies in connection with specified defaults under the Canadian Credit Agreement related to the chapter 11 filings of the Company and certain of its subsidiaries until the earlier of: (i) April 1, 2016, (ii) the commencement against Quicksilver Canada or certain specified Canadian subsidiary guarantors of any litigation in which the amounts involved, individually or in the aggregate, equal or exceed $5,000,000, that could reasonably be expected to have a material adverse effect on the validity or enforceability of the Canadian loan documents, the rights and remedies of the Canadian Administrative Agent and the Canadian secured parties under the Canadian loan documents and applicable law, or the business, operations, property or financial condition of the Non-Filers, taken as a whole, (iii) the acceleration of, or any other exercise of any rights or remedies in respect of, any other indebtedness of any Non-Filer the outstanding principal amount of which exceeds, individually or in the aggregate for such Non- Filer, $5,000,000, (iv) any Non-Filer taking any action to challenge the validity or enforceability of the Fifth Forbearance Agreement or any other Canadian loan document or any provision of the Fifth Forbearance Agreement or such documents, (v) the commencement by any Non-Filer of proceedings under bankruptcy, insolvency, receivership, restructuring or similar law, (vi) the occurrence of any termination event under the cash collateral order of the United States Bankruptcy Court for the District of Delaware, (vii) any failure by Quicksilver Canada to pay interest on the loans under the Canadian Credit Agreement at the applicable rate, (viii) any failure by the Company to pay interest on the loans under the Amended and Restated Credit Agreement, dated as of December 22, 2011 by and among the Company, as borrower, the guarantors party thereto, the Global Administrative Agent and the lenders parties thereto, at the applicable rate in accordance with the terms of the cash collateral order and the Waiver and Forbearance Agreement, dated March 16, 2015, by and among the Company, Quicksilver Canada, the guarantors party thereto, the Administrative Agents and the lenders party thereto, and (ix) any failure by the Debtors to comply with their cash collateral and other obligations pursuant to paragraph 15 of the January 27, 2016 Bankruptcy Court Order approving the sale of certain assets to BlueStone Natural Resource II, LLC. Quicksilver Canada acknowledges and agrees that as of the close of business on February 1, 2016, the Secured Indebtedness includes, without limitation, not less than $75.6 million of Loans and not less than $1.7 million of face amount of Letters of Credit (in each case, on a United States dollar equivalent). A copy of the Fifth Forbearance Agreement, dated February 16, 2016, among Quicksilver Resources Canada Inc. and the agents and lenders party thereto, is available at http://is.gd/KfprL9 The lending syndicate consists of: * JPMORGAN CHASE BANK, N.A., as a Lender under the U.S. Credit Agreement and as Global Administrative Agent; * JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as a Lender and Issuing Bank under the Canadian Credit Agreement and as Canadian Administrative Agent; * BANK OF AMERICA, N.A., as a Lender under the U.S. Credit Agreement; * BANK OF AMERICA, N.A., (by its Canada Branch) as a Lender under the Canadian Credit Agreement; * CANADIAN IMPERIAL BANK OF COMMERCE, as a Lender under the Canadian Credit Agreement; * CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH, as a Lender under the U.S. Credit Agreement; * CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as a Lender under the U.S. Credit Agreement and the Canadian Credit Agreement; * CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender under the U.S. Credit Agreement; * CREDIT SUISSE AG, TORONTO BRANCH, as a Lender under the Canadian Credit Agreement; * GOLDMAN SACHS BANK USA, as a Lender under the U.S. Credit Agreement; * TORONTO DOMINION (NEW YORK) LLC, as a Lender under the U.S. Credit Agreement; * THE TORONTO-DOMINION BANK, as a Lender under the Canadian Credit Agreement; * UBS AG, STAMFORD BRANCH, as a Lender under the U.S. Credit Agreement; * UBS AG CANADA BRANCH, as a Lender under the Canadian Credit Agreement; * WELLS FARGO BANK, N.A., as a Lender under the U.S. Credit Agreement; * WELLS FARGO FINANCIAL CORPORATION CANADA, as a Lender under the Canadian Credit Agreement; and * KEYBANK, N.A., as a Lender under the U.S. Credit Agreement About Quicksilver Resources Quicksilver Resources Inc. (OTCQB: KWKA) is an exploration and production company engaged in the development and production of long-lived natural gas and oil properties onshore North America. Based in Fort Worth, Texas, the company claims to be a leader in the development and production from unconventional reservoirs including shale gas, and coal bed methane. Following more than 30 years of operating as a private company, Quicksilver became public in 1999. The Company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas; Steamboat Springs, Colorado; Craig, Colorado and Cut Bank, Montana. The Company's Canadian subsidiary, Quicksilver Resources Canada Inc. is headquartered in Calgary, Alberta. On March 17, 2015, Quicksilver Resources Inc. and certain of its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in Delaware. Quicksilver's Canadian subsidiaries were not included in the chapter 11 filing. The Company's legal advisors are Akin Gump Strauss Hauer & Feld LLP in the U.S. and Bennett Jones in Canada. Richards Layton & Finger, P.A., is legal co-counsel in the Chapter 11 cases. Houlihan Lokey Capital, Inc., is serving as financial advisor. Garden City Group Inc. is the claims and noticing agent. The Company's balance sheet at Dec. 31, 2014, showed $1.21 billion in total assets, $2.35 billion in total liabilities and total stockholders' deficit of $1.14 billion. The U.S. Trustee for Region 3 appointed five creditors of Quicksilver Resources Inc. to serve on the official committee of unsecured creditors. * * * Quicksilver Resources Inc. and its U.S. subsidiaries on January 22, 2016, entered into an Asset Purchase Agreement with BlueStone Natural Resources II, LLC pursuant to which the Buyer agreed to purchase substantially all of the Sellers' U.S. oil and gas assets for a cash purchase price of $245.0 million. The consummation of the transactions contemplated by the Purchase Agreement is subject to customary closing conditions, and such transactions are expected to close on or before March 31, 2016. RADIO SYSTEMS: S&P Affirms 'B' CCR & Revises Outlook to Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed all ratings on Knoxville, Tenn.-based Radio Systems Corp., including the 'B' corporate credit rating, and revised the outlook to negative from stable. Pro forma for this transaction, S&P estimates adjusted debt outstanding of roughly $580 million at year-end 2015 (compared with $250 million pre-transaction). "The outlook revision to negative reflects our estimate that this transaction will increase the ratio of pro forma debt to EBITDA to close to 8x compared with about 4x for the fiscal year ended Dec. 31, 2015. Thereafter, leverage will steadily increase given the substantial accretion in the company's preferred equity, which S&P views as a debt obligation that will require refinancing prior to its seven year maturity," said Standard & Poor's credit analyst Chris Johnson. "Moreover, the company is not amending its bank facilities to further limit future dividends to the majority founder and owner in conjunction with this transaction. Therefore, the company may resume dividends in the future, possibly weakening discretionary cash flow and future debt repayment." The ratings affirmation is based on the company's stated intentions to not make dividend payments and instead prioritize debt reduction in 2016. The affirmation is also based on Standard & Poor's expectation for ongoing EBITDA growth and stronger after-tax income following the transaction, which should lead to better debt service ratios (including funds from operations (FFO) cash interest coverage increasing to closer to 3x over the next year), given that cash interest will not materially increase since the majority of the interest on the preferred securities will be PIK. S&P could revise the outlook to stable if the company demonstrates a commitment to debt payment beyond 2016 and to not resuming aggressive dividend payments. Based on S&P's current projections, this could happen if the company repays its working capital borrowings by fiscal year-end 2016 (leading to limited pre-payable debt of less than $10 million thereafter) and repurchases a portion of their second-lien notes while not making aggressive dividend payments. RESTAURANT ASSOCIATES: Case Summary & 13 Unsecured Creditors ------------------------------------------------------------ Debtor: Restaurant Associates of Puerto Rico, Inc. 1000 Conquistador Ave. Fajardo, PR 00738 Case No.: 16-01330 Chapter 11 Petition Date: February 24, 2016 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Javier A Vega Villalba, Esq. WEINSTEIN BACAL & MILLER, PSC Gonzalez Padin Bldg Penthouse 154 Rafael Cordero San Juan, PR 00901 E-mail: jvv@w-bmlaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million Largest unsecured creditor: Department of Treasury of PR, $500,000 The petition was signed by Dayn Smith, president. A list of the Debtor's 13 largest unsecured creditors is available for free at http://bankrupt.com/misc/prb16-01330.pdf RESTAURANTS ACQUISITION: 341 Meeting Adjourned to March 1 --------------------------------------------------------- The Office of the U.S. Trustee adjourned the meeting of creditors of Restaurants Acquisition I LLC to March 1, 2016, at 2:30 p.m., according to a filing with the U.S. Bankruptcy Court in Delaware. The meeting will take place at J. Caleb Boggs Federal Building, Room 2112, 844 King Street, Wilmington, Delaware. The court overseeing the bankruptcy case of a company schedules the meeting of creditors usually about 30 days after the bankruptcy petition is filed. The meeting is called the "341 meeting" after the section of the Bankruptcy Code that requires it. A representative of the company is required to appear at the meeting and answer questions under oath. The meeting is presided over by the U.S. trustee, the Justice Department's bankruptcy watchdog. About Restaurants Acquisition Restaurants Acquisition I, LLC filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 15-12406) on Dec. 2, 2015. The petition was signed by Craig W. Barber as president. Duane Morris LLP represents the Debtor as counsel. The Debtor operates a chain of full-service restaurants throughout Texas, largely located in the Dallas-Fort Worth and Houston metropolitan area, operating under the trade-names Black-eyed Pea and Dixie House. Through its restaurants, the Debtor also provides its customers and patrons with on and off premises dining along with catering services. The Debtor's debt obligations consist of approximately $2.44 million in loans under a secured credit agreement with CNL Financial Group, Inc., approximately $1.42 million in loans owed to Grove Family Investments, L.P., approximately $850,000 owed to American Express Bank, FSB, under a business and loan security agreement and approximately $2.17 million in trade debt. As of the Petition Date, the Debtor estimates that it has approximately $3.92 million of unsecured trade debt and other outstanding operating expenses, including, but not limited to, rent, general operating payables and past-due taxes. RIVERBED TECHNOLOGY: Bank Debt Trades at 2% Off ----------------------------------------------- Participations in a syndicated loan under which Riverbed Technology Inc is a borrower traded in the secondary market at 97.95 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.88 percentage points from the previous week. Riverbed Technology Inc pays 500 basis points above LIBOR to borrow under the $1.625 billion facility. The bank loan matures on Feb. 11, 2022 and carries Moody's B1 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. ROBERT SIMON: 3rd Cir. Says Debtors Could Have Understood Subpoena ------------------------------------------------------------------ Jody Godoy at Bankruptcy Law360 reported that the Third Circuit handed a collection agency and its law firm a win in a Fair Debt Collection Practices Act suit on Feb. 17, 2016, saying a couple who sued over the agency's subpoena in their bankruptcy case couldn't have been misled by the document. The three-judge panel said a New Jersey federal judge had been right to issue summary judgment for FIA Card Services NA and its counsel, Weinstein & Riley PS, in tossing Robert and Stacey Simon's suit claiming they violated the FDCPA. On Dec. 30, 2010, Robert Maxwell Simon and Stacey Helene Simon filed for bankruptcy protection (Case No. No. 10-50052) under Chapter 7 of the Bankruptcy Code, 11 U.S.C. Sec. 701–84, in the United States Bankruptcy Court for the District of New Jersey. The Simons are represented by Andy Winchell, Esq., at Law Offices of Andy Winchell. RYCKMAN CREEK: 341 Meeting of Creditors Set for March 10 -------------------------------------------------------- The meeting of creditors of Ryckman Creek Resources LLC and its affiliated debtors is set to be held on March 10, 2016, at 10:00 a.m. (Eastern Time), according to a filing with the U.S. Bankruptcy Court in Delaware. The meeting will be held at J. Caleb Boggs Federal Building, 2nd Floor, Room 2112, 844 King Street, Wilmington, Delaware. . The court overseeing the bankruptcy case of a company schedules the meeting of creditors usually about 30 days after the bankruptcy petition is filed. The meeting is called the "341 meeting" after the section of the Bankruptcy Code that requires it. A representative of the company is required to appear at the meeting and answer questions under oath. The meeting is presided over by the U.S. trustee, the Justice Department's bankruptcy watchdog. About Ryckman Ryckman Creek Resources, LLC, Ryckman Creek Resources Holdings LLC, Peregrine Rocky Mountains LLC and Peregrine Midstream Partners LLC filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10292 to 16-10295) on Feb. 2, 2016. The petitions were signed by Robert Foss as chief executive officer. Kevin J. Carey has been assigned the case. The Debtors have engaged Skadden, Arps, Slate, Meagher & Flom LLP as counsel, AP Services, LLC as management provider, Evercore Group LLC as investment banker, and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors estimated both assets and liabilities in the range of $100 million to $500 million. As of the Petition Date, Ryckman had approximately $333 million of prepetition bank debt. RYCKMAN CREEK: U.S. Trustee Forms Five-Member Committee ------------------------------------------------------- Andrew Vara, acting U.S. trustee for Region 3, appointed five creditors of Ryckman Creek Resources LLC and its affiliated debtors to serve on the official committee of unsecured creditors. The unsecured creditors are: (1) Troy Construction, LLC Attn: Daniel J. O'Hare 8521 McHard Rd. Houston, TX 77052 Phone: 281-437-8214 Fax: 281-437-9580 (2) Redi Services LLC Attn: Jeff Nelson PO Box 310 Lyman, WI 42937 Phone: 307-787-6333 Fax: 307-787-3134 (3) Alliance Process Partners LLC dba IAG Attn: J.B. Switzer 10300 Town Park Dr. SE4003, Houston, TX 77072 Phone: 832-615-1456 Fax: 713-690-9092 (4) BCCK Engineering, Inc. Attn: Ben Friedman, CFO 2500 N. Big Spring St. Midland, TX 79705 Phone: 432-685-6095 Fax: 432-685-7021 (5) Praxair, Inc. Attn: Jeffrey Weiss 39 Old Ridgebury Rd. Danbury, CT 06810 Phone: 203-837-2104 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About Ryckman Ryckman Creek Resources, LLC, Ryckman Creek Resources Holdings LLC, Peregrine Rocky Mountains LLC and Peregrine Midstream Partners LLC filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10292 to 16-10295) on Feb. 2, 2016. The petitions were signed by Robert Foss as chief executive officer. Kevin J. Carey has been assigned the case. The Debtors have engaged Skadden, Arps, Slate, Meagher & Flom LLP as counsel, AP Services, LLC as management provider, Evercore Group LLC as investment banker, and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors estimated both assets and liabilities in the range of $100 million to $500 million. As of the Petition Date, Ryckman had approximately $333 million of prepetition bank debt. SAMUEL E. WYLY: Says Too Late for IRS to Collect Tax Deficiencies ----------------------------------------------------------------- Kelly Knaub at Bankruptcy Law360 reported that business tycoon Sam Wyly and his sister-in-law told a Texas bankruptcy judge on Feb. 16, 2016, that it's too late for the IRS to collect tax deficiencies from 1992 to 1996 in its $2.2 billion dispute, saying the agency has failed to prove that it can seek the taxes from later annuity payments and waited too long to broach the issue. Sam Wyly and the widow of his late brother, Dee Wyly, told U.S. Bankruptcy Judge Barbara Houser that the IRS waited too long to argue that mitigation provisions in the IRS code prevent them from doubly excluding income -- their options and stock transactions-related income and annuity payments -- from taxation, and also failed to show that their cases meet the limited requirements for the provisions. About Sam Wyly Sam Wyly is a lifelong entrepreneur and author. His first book, 1,000 Dollars & An Idea, is a biography that tells his story of creating and building companies, including University Computing, Michaels Arts & Crafts, Sterling Software, and Bonanza Steakhouse. His second book, Texas Got It Right!, co-authored with his son, Andrew, was gifted to roughly 450,000 students and teachers, thought leaders, and readers, and continues to be a best-seller in its Amazon category. Samuel Wyly filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 14-35043) on Oct. 19, 2014, weeks after a judge ordered him to pay several hundred million dollars in a civil fraud case. In September 2014, a federal judge ordered Mr. Wyly and the estate of his deceased brother to pay more than $300 million in sanctions after they were found guilty of committing civil fraud to hide stock sales and nab millions of dollars in profits. About Caroline Wyly Caroline Wyly is the widow of business tycoon Charles Wyly. She and her brother-in-law Sam Wyly sought Chapter 11 bankruptcy protection as leverage to settle a looming tax bill and a $329 million claim from the Securities and Exchange Commission. Her bankruptcy is In re Caroline D. Wyly, 14-35074, in U.S. Bankruptcy Court, Northern District Texas (Dallas). SANTA FE GOLD: March 8 Hearing on Bid to Dismiss Case ----------------------------------------------------- BankruptcyData reported that Santa Fe Gold filed with the U.S. Bankruptcy Court a motion for entry of an order dismissing the Chapter 11 cases and granting related relief. The motion explains, "The Court must approve dismissal of the Chapter 11 cases on the terms set forth because, among other things, (a) the Debtors cannot bear the administrative costs of formulating and confirming a plan of reorganization, (b) the Debtors have no remaining tangible estate assets to administer, nor the funds to do so....In the cases, it is not realistic or even possible for the Debtors to confirm a chapter 11 plan. The Debtors have sold substantially all of their assets, and the only likely potential cause of action that may have resulted in a recovery to the Debtors' estates has been resolved pursuant to the settlement. There is no business to reorganize. There is no prospect of distributions to creditors, other than from the GUC Settlement Proceeds, which represent a far better outcome for the Debtors' creditors than they would otherwise be able to obtain....Under the circumstances presented, conversion to chapter 7 and appointment of a chapter 7 trustee would impose significant and unnecessary additional administrative costs upon the Debtors' estates with no correlative benefit. There are simply no assets of value for a potential chapter 7 trustee to administer. There would be no benefit to (and indeed only a burden upon) the Debtors' creditors and estates by conversion." The Court scheduled a March 8, 2016 hearing on the motion. About Santa Fe Gold Santa Fe Gold Corporation and three affiliated entities, a group of mining and mineral exploration companies headquartered in Lordsburg, New Mexico, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No. 15-11761) on Aug. 26, 2015, to pursue an expedited sale of their assets in order to maximize value for all stakeholders. The case is pending before the Honorable Mary F. Walrath. The cases are being jointly administered for procedural purposes. Santa Fe Gold disclosed $19.1 million in assets and $29.9 million in debt as of March 31, 2015. The Debtors tapped Young Conaway Stargatt & Taylor, LLP, as counsel; Canaccord Genuity Group Inc., as financial advisor; and American Legal Claim Services, LLC, as notice, claims, and solicitation agent. The Official Committee of Unsecured Creditors tapped Polsinelli PC and Squire Patton Boggs (US) LLP as attorneys. Waterton Global Value, L.P., the prepetition lender, the DIP lender and buyer of the assets, is represented by Richards, Layton & Finger, P.A., and Sidley Austin LLP. SBP HOLDING: S&P Lowers CCR to 'CCC+', Outlook Stable ----------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on SBP Holding L.P. to 'CCC+' from 'B'. The outlook is stable. At the same time, S&P lowered the issue-level ratings on the company's first-lien term loan to 'CCC+' from 'B'. The recovery rating remains '3', indicating S&P's expectation of meaningful (50% to 70%; upper half of the range) recovery in the event of a payment default. S&P also lowered the issue-level ratings on the company's second-lien term loan to 'CCC-' from 'CCC+'. The recovery rating remains '6', indicating S&P's expectation of negligible (0% to 10%) recovery in the event of a payment default. "The downgrade reflects SBP Holding substantial exposure to oil and gas end markets and the continued drag the sector is projected to have on the company's cash flows," said Standard & Poor's credit analyst Michael Tsai. S&P assesses SBP's business risk profile as weak and its financial risk profile as highly leveraged. S&P assess liquidity as adequate. The stable outlook reflects Standard & Poor's view that the company will maintain adequate liquidity with positive operating cash flows and low capital spending requirements. S&P could lower the rating if it assessed liquidity as less than adequate, which could result from further decreases to the company's credit facility borrowing base stemming from increasing challenges in the company's oil and gas business, and/or the company engages in further debt-financed acquisitions. Upside scenarioWe could raise the rating if S&P projected credit measures to improve, such that FFO/debt was approaching 12%, which would likely result from improving oil and gas end markets. SEMLER SCIENTIFIC: Dismisses Chief Financial Officer ---------------------------------------------------- The Board of Directors of Semler Scientific, Inc. determined to terminate the Company's engagement of Mr. James Walker as chief financial officer and principal accounting officer of the Company through its consulting agreement with The Brenner Group, the Company disclosed in a Form 8-K filed with the Securities and Exchange Commission. The Company has reappointed Daniel E. Conger, age 39, the Company's vice president of finance, as the Company's principal accounting officer effective as of Feb. 18, 2016. Mr. Walker may provide consulting services on an as-needed basis to the Company. Mr. Conger has served as the vice president of finance of the Company since October 2010. From September 2008 until joining the Company, Mr. Conger worked at Bacchus Vascular and its acquirer Covidien, Inc., a medical device, supplies and pharmaceuticals company, where he was the Plant Controller for the San Jose plant. At Covidien, Mr. Conger was responsible for creation of a $130 million annual budget, leading a team of six people. He had sole responsibility for preparation of monthly and quarterly financial statements, and presented quarterly results to executive management of the global business unit. Mr. Conger has been working in the medical device, start-up and biotechnology industries since 2006, and has experience designing internal control systems, implementing such systems, and running finance in a business centered manner. He received his B.S. in Business Administration from Humboldt State University in May 2001 and an MBA- Accounting Option from California State University East Bay in June 2010. Mr. Conger's employment is governed by the terms of his Oct. 18, 2010, at-will employment agreement. Under the terms of the agreement, Mr. Conger can be terminated at any time and his job titles, salaries and benefits may be modified from time to time as the Company deems necessary. Effective Jan. 1, 2016, Mr. Conger's base salary was $157,500 with target incentive of 20% of base salary. Also on Feb. 18, 2016, the Board of the Company, upon the recommendation of its Compensation Committee, approved the following compensation arrangement for Douglas Murphy-Chutorian, M.D., Director, president and chief executive officer, effective Jan. 1, 2016. Base Salary $367,500 Target Incentive 50% of Base Salary Equity 125,000 stock options Any target incentive will be at the discretion of the Compensation Committee and will be based on achievement of performance goals by Dr. Murphy-Chutorian. On Feb. 18, 2016, the Compensation Committee, as ratified by the Board, granted Dr. Murphy-Chutorian options to acquire 125,000 shares of common stock pursuant to the Semler Scientific, Inc. 2014 Stock Incentive Plan, which options have a 10-year term. One-quarter of the options will vest in full upon the one-year anniversary of the grant date, and the remainder of which vest monthly thereafter such that they are vested in full on the four-year anniversary of the grant date. About Semler Scientific Semler Scientific, Inc. provides diagnostic and testing services to healthcare insurers and physician groups. The Portland, Oregon-based Company develops, manufactures and markets innovative proprietary products and services that assist healthcare providers in evaluating and treating chronic diseases. As of Sept. 30, 2015, Semler had $3.52 million in total assets, $2.98 million in total liabilities and $531,000 in total stockholders' equity. "We have incurred recurring losses since inception and expect to continue to incur losses as a result of costs and expenses related to our marketing and other promotional activities, research and continued development of our vascular testing product and our testing service. Our principal sources of cash have included the issuance of equity, primarily our February 2014 initial public offering of common stock, as well as other private placements of our shares, revenue, and to a lesser extent, borrowings under loan agreements. We expect that as our revenues grow, our operating expenses will continue to grow and, as a result, we will need to generate significant additional net revenues to achieve profitability. For this reason, the Company's independent registered public accountants' report for the year ended December 31, 2014 included an explanatory paragraph that expresses substantial doubt about our ability to continue as a "going concern." The Company said this doubt continues to exist. SFX ENTERTAINMENT: 341 Meeting of Creditors Set for March 11 ------------------------------------------------------------ The meeting of creditors of SFX Entertainment Inc. and its affiliated debtors is set to be held on March 11, 2016, at 9:00 a.m., according to a filing with the U.S. Bankruptcy Court in Delaware. The meeting will be held at J. Caleb Boggs Federal Building, 2nd Floor, Room 2112, 844 King Street, Wilmington, Delaware. . The court overseeing the bankruptcy case of a company schedules the meeting of creditors usually about 30 days after the bankruptcy petition is filed. The meeting is called the "341 meeting" after the section of the Bankruptcy Code that requires it. A representative of the company is required to appear at the meeting and answer questions under oath. The meeting is presided over by the U.S. trustee, the Justice Department's bankruptcy watchdog. 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. SFX ENTERTAINMENT: U.S. Trustee Forms Seven-Member Committee ------------------------------------------------------------ Andrew Vara, acting U.S. trustee for Region 3, appointed seven creditors of SFX Entertainment Inc. and its affiliated debtors to serve on the official committee of unsecured creditors. The unsecured creditors are: (1) Mike Bindra 300 East Rd. Alford, MA 01266 Phone: 917-582-1560 (2) Artists Alliance Australasia Pty. Ltd. Attn: Francesco Cotela 93 Kerr Street Fitzroy, VIC 3065 Australia Phone: 61-417-538-528 (3) Vistajet US, Inc. Attn: Rachael Neale 112 Charles A. Lindbergh Dr. Teterboro, NJ 07608 (4) AM Only, LLC Attn: Stephanie R. Morris, Esq. 55 Washington Street, Suite 656 Brooklyn, NY, 11201 Phone: 718-237-2428, x 114 Fax: 866-571-1621 (5) ID&T BVBA c/o Curtis Miller, Morris Nichols, Arsht & Tunnell 1201 N. Market Street Wilmington, DE, 19801 Phone: 302-351-9419 Fax: 302-495-3080 (6) Epic Tents, LLC Attn: Daniel G. Nolan, III 1069 Canton Rd. Marietta, GA, 30066 Phone: 770-827-8876 Fax: 404-521-4341 (7) Event Flooring Solutions, LLC Attn: Samuel B. Wodetzci 1069 Canton Rd. Marietta, GA, 30066 Phone: 770-919-9090 Fax: 404-521-4341 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. 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. SPORTS AUTHORITY: Moody's Lowers PDR to Ca-PD/LD, Outlook Neg. -------------------------------------------------------------- Moody's Investors Service downgraded The Sports Authority, Inc.'s Probability of Default Rating (PDR) to Ca-PD/LD from Caa3-PD and Corporate Family Rating ("CFR") to Ca from Caa3. The limited default "LD" designation appended to Sports Authority's probability of default rating reflects that the missed interest payment constitutes a default under Moody's definition. The limited default designation will remain until the company resolves the missed payment. Concurrently, the rating on the $300 million Senior Secured Term Loan due November 2017 was downgraded to Ca from Caa3. The ratings outlook remains negative. The downgrade reflects Sports Authority's missed Jan. 15, 2016, interest payment on its Senior Subordinated Notes and the subsequent failure to make the payment during the 30-day grace period that expired of Feb. 14, 2016. Moody's views this as a limited default as it represents a default of only one element of the company's capital structure. Rating Downgrades: Issuer: Sports Authority Inc. (The) Probability of Default Rating, to Ca-PD /LD from Caa3-PD Corporate Family Rating, to Ca from Caa3 300 Million Senior Secured Term Loan B due 2017, to Ca (LGD 3) from Caa3 (LGD 3) RATINGS RATIONALE Sports Authority's Ca Corporate Family Rating reflects the high probability that the missed interest payment on its senior subordinated notes will lead to a second default from either an acceleration of the $300 million senior secured term loan due to the cross default provisions, a bankruptcy filing, or a debt restructuring. The company is engaged in discussions with its lenders regarding ways to address the missed interest payment, its debt maturities beginning in 2017, as well as improving its capital structure, which Moody's believes is unsustainable at current weak levels of operating performance. The company's leverage is very high and interest coverage is weak, at around 7.0x and less than 1.0x, respectively. Sports Authority's operating performance has been inconsistent over the past several years due to weak execution, adverse weather, high promotional activity and competitive pressure, and a challenged consumer. Despite recent efforts to implement an operational improvement plan, sales have once again turned negative due to store closures and weak comparable store sales, while EBITDA margins have been pressured by expense deleveraging, lower merchandise margins and higher fulfillment and shipping costs related to growing e-commerce sales. Sports Authority's liquidity is weak, reflecting the need to address debt maturities that begin in 2017. Also, if an acceleration of the subordinated debt or $300 million senior secured term loan occurs due to the missed interest payment, the company would likely be unable to repay debt at par. The negative outlook reflects Moody's view that the company may have difficulty refinancing its debt without restructuring or impairment to lenders. Should the company default on other elements of its capital structure or pursue a formal reorganization under the U.S. Bankruptcy Code, ratings could be downgraded further. Additionally, ratings could be downgraded if Moody's comes to expect the recovery value on Sports Authority's debt instruments to be lower than currently estimated. The ratings are unlikely to be upgraded without successfully extending its debt maturity profile and reducing debt to more sustainable levels. The Sports Authority, Inc. is a full-line sporting goods retailer operating 470 stores in 41 states and Puerto Rico. Revenues exceeded $2.6 billion for the twelve months ended Oct. 31, 2015. The company is owned by private equity firm Leonard Green & Partners, L.P. The principal methodology used in these ratings was Retail Industry published in October 2015. STEREOTAXIS INC: Reports 2015 Q4 and Full Year Financial Results ---------------------------------------------------------------- Stereotaxis, Inc., reported a net loss of $1.68 million on $9.20 million of total revenue for the three months ended Dec. 31, 2015, compared to net income of $856,215 on $9.75 million of total revenue for the same period in 2014. For the 12 months ended Dec. 31, 2015, the Company reported a net loss of $7.35 million on $37.67 million of total revenue compared to a net loss of $5.20 million on $35.01 million of total revenue for the 12 months ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had $19.22 million in total assets, $36.85 million in total liabilities and a total stockholders' deficit of $17.62 million. "We finished the year on a strong note, achieving new capital orders of $5.1 million in the fourth quarter and our first ever positive free cash flow quarter of $1.6 million, which helped drive a 71% reduction in cash burn for the full year," said William C. Mills, Stereotaxis chief executive officer. "New capital orders in the fourth quarter included two Niobe ES system orders in Japan, where we see continued progress and momentum. For the full year, we grew total revenue 8% compared to 2014 and increased systems revenue 36% year over year on seven new Niobe ES systems and several upgraded sites, compared to three Niobe system shipments last year. "Our improved commercial results reflect progress with our ongoing initiatives to increase awareness of the outstanding clinical efficacy, efficiency, and safety of our technology compared to manual modalities across the spectrum of complex ablation cases. Supported by a growing body of independent clinical evidence on the higher acute success, lower recurrence rates, and improved safety when using our magnetic navigation platform for the treatment of ventricular tachycardia (VT), these procedures have become our growth leader. In the fourth quarter, VT procedures increased 28% year over year. "With an estimated 60,000 VT procedures performed worldwide and growing at over 10% each year, we believe the VT market currently represents a nearly $100 million market opportunity for the Company on an annual basis. Last month, we announced the initiation of our first prospective, randomized clinical trial at prominent VT centers of excellence to definitively establish our superiority in long-term patient outcomes versus manual catheter approaches. We believe we are well positioned to become the standard of care for VT and to capitalize on this position as part of our overall growth plans," Mr. Mills concluded. At Dec. 31, 2015, Stereotaxis had cash and cash equivalents of $5.6 million, compared to $3.6 million at Sept. 30, 2015, with unused borrowing capacity of $5.2 million on its revolving line of credit with Silicon Valley Bank. During the quarter, the Company recognized $0.3 million in gross proceeds from its 2015 warrants offering. Cash burn for 2015 was $2.7 million compared to $9.2 million in 2014. At Dec. 31, 2015, total debt was $18.4 million related to HealthCare Royalty Partners long-term debt with no borrowings against its revolving line of credit with Silicon Valley Bank. A full-text copy of the press release is available for free at: http://is.gd/Y5DJbN About Stereotaxis Based in St. Louis, Missouri, Stereotaxis, Inc., is a manufacturer and developer of a suite of navigation systems in interventional surgical procedures. The Company's Epoch Solution is used in the treatment of arrhythmias and coronary artery disease. Stereotaxis reported a net loss of $5.20 million in 2014, a net loss of $68.8 million in 2013 and a net loss of $9.23 million in 2012. Ernst & Young LLP, in St. Louis, Missouri, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred recurring operating losses and has a net capital deficiency. These conditions raise substantial doubt about the Company's ability to continue as a going concern. STUDENT AID CENTER: Files for Chapter 7 Bankruptcy -------------------------------------------------- Student Aid Center Inc. filed a Chapter 7 petition (Bankr. S.D. Fla. Case No. 16-11759) on Feb. 8, 2015, estimating $500,000 to $1 million in assets and $1 million to $10 million in debt. The Debtor is represented by: Luis Salazar, Esq. SALAZAR JACKSON, LLP 2000 Ponce De Leon Boulevard Penthouse Coral Gables, FL 33134 Tel: 305.374.4848 Fax: (305) 397-1021 E-mail: salazar@salazarjackson.com The meeting of creditors is slated to be held March 14, 2016, at 9:30 a.m. Jillian Berman at MarketWatch reports that the company is part of a burgeoning industry of student debt-relief firms that regulators have accused of preying on borrowers desperate for help with their student loans. According to the report, Student Aid Center's bankruptcy comes several months after Minnesota Attorney General Lori Swanson filed a lawsuit against the company, accusing the firm of misrepresenting itself to borrowers by telling them it could help them qualify for loan forgiveness programs, that it would "take over" or pay borrowers' loans and by lying about the amount that at loan would drop with the help of their services. In addition, the company charged between $500 and $1,500 to sign borrowers up with government programs they could otherwise access for free, Swanson's suit claims. MarketWatch also reported that Student Aid Center was also the target of a class-action suit filed last year, which accused the company of illegally robocalling consumers and offering its services, even to people who don't have student loans. SUMMIT MATERIALS: S&P Assigns B Rating on New $250MM Unsec. Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' issue-level rating to Denver–based Summit Materials LLC's proposed $250 million senior unsecured notes due 2022. The recovery rating is '5', indicating S&P's view that creditors could expect modest (higher half of the 10% to 30% range) recovery in the event of a payment default. S&P expects the company will use the net proceeds to fund its expected acquisition of Boxley Materials Co., a Roanoke, Va.-based vertically integrated aggregates company, as well as for general corporate purposes. All of S&P's existing ratings on the company, including S&P's 'B+' corporate credit rating, 'BB' senior secured debt rating, and existing 'B' senior unsecured notes rating, are unchanged by the transaction. The outlook is stable. S&P projects that pro forma for the new debt financing and acquisition, Summit's debt leverage will approximate 5.25x, which is in line with the current 'B+' corporate credit rating and highly leveraged financial risk profile. S&P's ratings on Summit Materials incorporate S&P's assessment of the company's financial risk profile as highly leveraged and its business risk profile as satisfactory. SIMULATED DEFAULT ASSUMPTIONS -- Year of default: 2020 -- EBITDA at emergence: $200 million -- Implied enterprise valuation (EV) multiple: 6x -- Gross EV: $1.2 billion SIMPLIFIED WATERFALL -- Net EV (after 5% administrative costs): $1.14 billion -- Estimated priority claims $40 million (capital leases, claims at nonguarantor subsidiaries) -- Remaining value: $1.1 billion -- Estimated senior secured claims: $860 million (revolving credit: $205 million; term loan: $650 million) -- Recovery expectation: 90% to 100% -- Remaining value for senior unsecured notes: $240 million -- Senior unsecured notes claims: $925 million -- Recovery expectation: 10% to 30% upper end of range Ratings List Summit Materials LLC Corporate Credit Rating B+/Stable/-- New Rating Summit Materials LLC $250 mil. sr unsecd notes due 2022 B Recovery Rating 5H SUNTECH AMERICA: Plan Confirmation Hearing Today ------------------------------------------------ Judge Christopher Sontchi of the U.S. Bankruptcy Court for the District of Delaware will convene a hearing on Feb. 25, 2016, at 2:00 p.m. (ET) to consider confirmation of Suntech America, Inc., et al.'s Chapter 11 Plan of Liquidation. The Debtors filed on Feb. 2, 2016, a plan supplement disclosing that a Plan Administrator to be appointed under the Plan will receive a flat fee of $20,000 per month. The Plan calls for the appointment on the Effective Date of Robert Moon, or another person jointly selected by the Debtors and the Committee as Plan Administrator. The Plan Administrator is tasked to make distributions in accordance with the Plan. Majority of the Debtors' assets have already been liquidated to cash. The Debtor has $16.3 million in cash and cash equivalents. A plan settlement provides for the resolution of two significant disputed claims against the Debtors (The Solyndra Residual Trust's $1.5 billion Claim and Wuxi Suntech Power Co.'s approximate $145 million Claim). The general unsecured claims of Solyndra and Wuxi are allowed at $360,441,916 and these claimants have agreed to a payment of $10,312,500 plus 60% of the total value of any additional assets, for a 2.86% recovery. Holders of other general unsecured claims totaling $6 million are slated to recover 30%. Holders of equity interests will receive the remaining cash after distribution to holders of allowed claims have been made. As reported in the Jan. 19, 2016 edition of the TCR, the Court has established this timeline for the confirmation of the Plan: Voting Record Date Jan. 13, 2016 Date Solicitation will Commence Jan. 19, 2016 3018 Motion Deadline Feb. 9, 2016 3018 Objection Deadline Feb. 16, 2016 Plan Supplement Filing Deadline Feb. 2, 2016 Voting Deadline Feb. 16, 2016 Plan Objection Deadline Feb. 16, 2016 Deadline to File Memoranda of Law in Support of Confirmation of the Plan Feb. 23, 2016 Deadline to File Replies to any Objections to the Plan Feb. 23, 2016 Voting Report Filing Deadline Feb. 23, 2016 Plan Confirmation Hearing Feb. 25, 2016 A black-lined version of the Combined Plan filed Jan. 14, 2016, is available for free at http://bankrupt.com/misc/SUNTECHplan0114.pdf About Suntech America Headquartered in San Francisco, California, Suntech America, Inc., aka Suntech Power, an affiliate of Wuxi, China-based Suntech Power Holdings Corp., was the main operating subsidiary of the Suntech Group in the Americas and its primary business purpose was acting as an intermediary for marketing, selling and distributing Suntech Group manufactured products. Suntech America, Inc., and Suntech Arizona, Inc. filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 15-10054 and 15-10056) on Jan. 12, 2015. Judge Christopher S. Sontchi presides over the cases. Mark D. Collins, Esq., Paul Noble Heath, Esq., William A. Romanowicz, Esq., Zachary I Shapiro, Esq., at Richards, Layton & Finger, P.A., serve as the Debtors' bankruptcy counsel. Upshot Services LLC is the Debtors' claims and noticing agent. The Debtors estimated their assets at between $100 million and $500 million, and their debts at between $100 million and $500 million. SUPERVALU: Bank Debt Trades at 5% Off ------------------------------------- Participations in a syndicated loan under which SuperValu is a borrower traded in the secondary market at 95.08 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.80 percentage points from the previous week. SuperValu pays 350 basis points above LIBOR to borrow under the $1.485 billion facility. The bank loan matures on March 21, 2019 and carries Moody's Ba3 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. SURGICAL SPECIALTIES: S&P Withdraws 'B' Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings, including the 'B' corporate credit rating, on Reading, Pa.-based suture, needle, and other consumable medical supplies manufacturer Surgical Specialties Corp.(U.S.) Inc. at the company's request. TECK RESOURCES: Moody's Lowers CFR to B3, Outlook Negative ---------------------------------------------------------- Moody's Investors Service downgraded Teck Resources Limited's Corporate Family rating to B3 from Ba3, Probability of Default Rating to B3-PD from Ba3-PD and senior unsecured note ratings to B3 from Ba3. Teck's Speculative Grade Liquidity Rating remains unchanged at SGL-2. The rating outlook is negative. This concludes the review initiated on Jan. 21, 2016. "The downgrade of Teck's rating is driven by low commodity prices that could push leverage over 7x by the end of 2017, together with potential refinancing challenges after 2018", said Jamie Koutsoukis, Moody's Vice-President, Senior Analyst. This rating action reflect Moody's view that there has been a fundamental downward shift in the mining sector with the downturn being deeper and the recovery longer than previously expected, resulting in increased credit risk and weaker metrics for Teck as well as the global mining sector. Consequently, ratings need to be recalibrated to reflect expected performance over a more protracted challenging operating environment. The slowing economic growth rates in China materially impact the demand for base metals while the reducing steel production rates impact demand for iron ore and metallurgical coal - leading to lower prices. While lower oil prices, lower freight costs, and currency depreciation contribute to reduced costs, the drop in prices has and will continue to significantly impact performance. In addition, the strong US dollar is a further factor contributing to weakening demand and driving prices lower since most metals are traded in dollars. RATINGS RATIONALE Teck's B3 CFR is driven primarily by expected high leverage and concern over refinancing needs beyond 2018. This is the result of continuing material free cash flow consumption due to sizable capital expenditure requirements and exposure to weak commodity prices. Providing an offset are the diversity and scale of its business, low geopolitical risks, and a good average cost position. Moody's expects Teck's adjusted Debt/EBITDA will exceed 6.0 x in 2016 and increase to over 7.0x in 2017, incorporating a 1.40 USD/CAD exchange rate and base commodity price assumptions of US$80/tonne for benchmark metallurgical coal, US$2.15/pound for copper and US$0.75/pound for zinc. The company's significant spending on the Fort Hills oil sands development project (of which it does not control the capital decision process), at a time when commodity prices continue to be under pressure, will cause Teck's free cash flow consumption to total approximately C$800 million in 2016 and C$500 million in 2017. Absent improvement in commodity prices beyond Moody's expectations, asset sales, equity issuance (which management has ruled out) or other inorganic actions taken by management, leverage will increase. Teck's rating outlook is negative because its leverage will remain at higher than normal levels for its B3 rating, cash flow will remain sizably negative through at least 2017, and with US$1.6 billion of unsecured notes maturing over the through 2017-2019 period, Moody's has concerns regarding the company's ability to refinance the debt. Teck's liquidity is good (SGL-2) through 2016, driven by Moody's estimate that Teck's cash requirements will total about C$1.2 billion through the year, compared to cash sources that total about C$5.5 billion. Cash requirements include about C$800 million of negative free cash flow, about C$400 million of minimum balance sheet cash needs and no material debt maturities in 2016. Teck however has US$600 million of notes due in 2017. Sources include C$1.9 billion of cash at December 2015, and C$4.8 billion of unused revolvers at December 30, 2015: US$1.2 billion matures in June 2017 (US$740 million drawn for letters of credit) and US$3 billion matures in 2020 (undrawn). Moody's expects that Teck will maintain ample cushion to its maximum 50% Debt/Capitalization debt covenant (37% at Q4/15). Teck's rating could be downgraded to Caa1 if: Liquidity deteriorates; There is an increased likelihood that Teck will be unable to refinace upcoming debt matrurities An upgrade to B2 is unlikely currently, however Teck's rating could be upgraded to B2 if: The majority of the capital spend at Fort Hills is largely completed; There is a reasonable expectation of sustained neutral or positive free cash flow and; There is a high level of certainty that Teck will be able to refinance its upcoming debt maturities through 2019. Moody's believes this would be contingent on improved commodity prices. Downgrades: Issuer: Teck Resources Limited Corporate Family Rating, downgraded to B3 from Ba3 Probability of Default Rating, downgraded to B3-PD from Ba3-PD Senior Unsecured Regular Bond/Debentures, Downgraded to B3 (LGD 4) from Ba3 (LGD 4) Backed Senior Unsecured Regular Bond/Debentures, Downgraded to B3 (LGD 4) from Ba3 (LGD 4) Senior Unsecured Shelf, Downgraded to (P)B3 from (P)Ba3 Unchanged: Speculative Grade Liquidity Rating, unchanged at SGL-2 Outlook Actions: Issuer: Teck Resources Limited Outlook, Negative Headquartered in Vancouver, British Columbia, Canada, Teck Resources is a diversified mining company with assets in Canada, the U.S., Peru and Chile. The company is a leading producer of metallurgical coal, operates one of the world's largest zinc mines (Red Dog in Alaska) and also produces a meaningful amount of copper. Revenues for 2015 were C$8.3 billion. The principal methodology used in these ratings was Global Mining Industry published in August 2014. TENET HEALTHCARE: Incurs $140 Million Net Loss in 2015 ------------------------------------------------------ Tenet Healthcare Corporation filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss attributable to the Company's common shareholders of $140 million on $18.63 billion of net operating revenues for the year ended Dec. 31, 2015, compared to net income available to the Company's common shareholders of $12 million on $16.60 billion of net operating revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had $23.68 billion in total assets, $20.45 billion in total liabilities, $2.26 billion in redeemable noncontrolling interests in equity of consolidated subsidiaries and $958 million in total equity. "We delivered Adjusted EBITDA at the midpoint of our Outlook for the fourth quarter and are on a path to deliver strong growth in Adjusted EBITDA and improved Adjusted Free Cash Flow in 2016," said Trevor Fetter, chairman and chief executive officer. "Similar to our results in the third quarter, we experienced pressure on lower acuity inpatient hospital admissions and continued to drive increases in higher-acuity admissions. Our Conifer Health Solutions and United Surgical Partners subsidiaries performed well, with Conifer meeting our expectations and USPI delivering stronger-than-expected results in the fourth quarter." Cash and cash equivalents were $356 million at Dec. 31, 2015, compared to $193 million at Dec. 31, 2014. Tenet's cash and debt balances as of Dec. 31, 2015, reflect the cash proceeds that the company received from the sale of two hospitals in North Carolina, the sale of a majority position in four hospitals in Dallas, and the related changes that these transactions had on Tenet's balance sheet. The company ended 2015 with no outstanding borrowings on its $1 billion credit line. A full-text copy of the Form 10-K is available for free at: http://is.gd/uYIy0N About Tenet Tenet Healthcare Corporation -- http://www.tenethealth.com/-- is a national, diversified healthcare services company with 110,000 employees united around a common mission: to help people live happier, healthier lives. The company operates 80 hospitals, 214 outpatient centers, six health plans and Conifer Health Solutions, a leading provider of healthcare business process services in the areas of revenue cycle management, value based care and patient communications. * * * Tenet carries a 'B' IDR from Fitch Ratings, 'B' corporate credit rating from Standard & Poor's Ratings Services and 'B1' Corporate Family Rating from Moody's Investors Service. TOP DRAWER: Case Summary & 3 Unsecured Creditors ------------------------------------------------ Debtor: Top Drawer LLC PO Box 117485 Burlingame, CA 94011 Case No.: 16-10782 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: February 23, 2016 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Hon. Laurel E. Davis Debtor's Counsel: Steven L. Yarmy, Esq. STEVEN L. YARMY ATTORNEY AT LAW 7464 W. Sahara Avenue Las Vegas, NV 89117 Tel: (702) 586-3513 Fax: (702) 586-3690 E-mail: sly@stevenyarmylaw.com Total Assets: $350,000 Total Liabilities: $1.98 million Largest unsecured creditor: Celtic Bank Corporation/SBA, $1.1 million The petition was signed by Susan M. Davila, managing member. A list of the Debtor's three largest unsecured creditors is available for free at http://bankrupt.com/misc/nvb16-10782.pdf TRINSEO MATERIALS: Bank Debt Trades at 3% Off --------------------------------------------- Participations in a syndicated loan under which Trinseo Materials Operating SCA [ex-Styron] is a borrower traded in the secondary market at 96.60 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.58 percentage points from the previous week. Trinseo Materials pays 325 basis points above LIBOR to borrow under the $0.5 billion facility. The bank loan matures on Oct. 27, 2021 and carries Moody's Ba3 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. UNIVISION COMMUNICATIONS: S&P Affirms 'B' CCR, Outlook Positive --------------------------------------------------------------- Standard & Poor's Ratings Services said that it revised its rating outlook on New York City-based Univision Communications Inc. to positive from stable and affirmed its 'B' corporate credit rating on the company. S&P's 'B+' issue-level rating and '2' recovery rating on the company's senior secured notes remain unchanged. The '2' recovery rating indicates S&P's expectation for substantial recovery (70%-90%; lower half of the range) of principal in the event of a payment default. S&P's 'CCC+' issue-level and '6' recovery ratings on the company's senior unsecured notes also remain unchanged. The '6' recovery rating indicates S&P's expectation for negligible recovery (0%-10%) of principal in the event of a payment default. "The positive rating outlook reflects our expectation that Univision's leverage will continue to moderate as a result of debt repayment and EBITDA growth related to higher retransmission and political advertising revenue in 2016," said Standard & Poor's credit analyst Jeanne Shoesmith. Leverage declined to 7.8x at the end of 2015 from 9.1x a year earlier as a result of EBITDA growth and lower debt balances. The reduced debt largely resulted from Univision's agreement with Grupo Televisa S.A.B. in July 2015 to exchange $1.125 billion of convertible debentures for warrants. S&P expects that leverage will continue to decline over the next two years as a result of growth in EBITDA and the company directing a portion of its free operating cash flow to debt repayment. S&P also expects leverage to approach the low-7x area by the end of 2016 and the low-6x area by the end of 2017. S&P has not factored an IPO into S&P's rating analysis, which would likely lead to more accelerated debt repayment. S&P could raise its corporate credit rating on Univision if the company's leverage approaches 7x, and S&P expects that leverage will continue to further moderate. Leverage could reach the low-7x area toward the end of 2016 if EBITDA grows at a high-single-digit percent rate and the company repays about $150 million of debt. An upgrade would also entail the company maintaining adequate liquidity and prospects for continued EBITDA growth. S&P could revise the outlook to stable if Univision encounters renewed economic pressure and stops making progress in its deleveraging efforts, causing leverage to remain above 7x. This could result from a loss of Hispanic viewers due to increasingly aggressive competition along with minimal growth in Hispanic ad spending compared with English-language ad spending. VALEANT PHARMACEUTICALS: Moody's Affirms Ba3 CFR, Outlook Negative ------------------------------------------------------------------ Moody's Investors Service affirmed the ratings of Valeant Pharmaceuticals International, Inc. and subsidiaries, including the Ba3 Corporate Family Rating and Ba3-PD Probability of Default Rating. At the same time, Moody's revised the rating outlook to negative from stable. This rating action follows the announcement that Valeant will not file its Form 10-K report with the Securities and Exchange Commission by the required filing deadline of Feb. 29, 2016. Valeant's late 10-K filing relates to the ongoing work of its ad hoc board committee, and the finding of misstatements related to the timing of revenue recognition. Moody's notes that the amount of the misstatements appears relatively minor. However, the misstatements may not be final because the work of the ad hoc committee remains ongoing including its review of accounting and its relationship with Philidor. The late 10-K filing occurs at a time when Valeant faces other challenges, including payer pushback on pricing of Valeant's products, the transition towards a new prescription fulfillment program with Walgreens, and interim executive leadership. The negative outlook reflects the potential for downward rating pressure should these challenges intensify, leading to continued financial reporting delays or reduced ability to deleverage. Ratings affirmed: Valeant Pharmaceuticals International, Inc.: Corporate Family Rating at Ba3 Probability of Default Rating at Ba3-PD Senior secured bank credit facilities at Ba1 (LGD 2) Senior unsecured notes at B1 (LGD 5) Speculative Grade Liquidity Rating at SGL-2 Valeant Pharmaceuticals International: Senior unsecured notes, at B1 (LGD 5) VRX Escrow Corp. (obligations assumed by Valeant Pharmaceuticals International, Inc.): Senior unsecured notes at B1 (LGD 5) The rating outlook is negative. RATINGS RATIONALE Valeant's Ba3 Corporate Family Rating reflects its good scale in the global pharmaceutical industry with annual revenue above $10 billion, its strong diversity, its high profit margins, and its good cash flow. The ratings are also supported by low exposure to patent cliffs, and growth from successful products like Jublia (antifungal) and Xifaxan for irritable bowel syndrome. The ratings are also supported by management's commitment to reduce debt/EBITDA to 4.0x by year-end 2016. However, the rating also reflect moderately high financial leverage (Moody's estimates pro forma gross debt/EBITDA of 5.5x as of Sept. 30, 2015), and significant business challenges related to Valeant's pricing strategy and aggressive acquisition appetite. Valeant is confronting significant scrutiny on its pricing practices, including those on products acquired through acquisitions, and uncertainty related to government investigations. In late 2015 Valeant announced it was terminating its relationship with specialty pharmacy distributor Philidor, and Valeant is transitioning to a new distribution arrangement with Walgreens. The rating outlook is negative, reflecting uncertainties related to Valeant's late 10-K filing combined with business challenges including reviving growth in its dermatology franchise while transitioning to the Walgreens fulfillment program. Moody's could downgrade the ratings if Valeant faces any escalation in issues related to financial reporting, litigation or regulatory compliance, sees a significant deterioration in organic growth, makes debt-financed acquisitions prior to deleveraging, or sustains debt/EBITDA above 5.0 times. Conversely, Moody's could upgrade the ratings if Valeant demonstrates that it can sustain healthy organic growth in a changing pricing environment and concludes its review of its specialty distribution practices with no major negative findings. To consider an upgrade, Moody's would also want to see Valeant deleverage and sustain debt/EBITDA of around 4.0 times, and reduce the uncertainties created by government investigations. Headquartered in Laval, Quebec, Valeant Pharmaceuticals International, Inc. is a global specialty pharmaceutical company with expertise including branded dermatology, gastrointestinal disorders, eye health, neurology, branded generics and OTC products. Valeant reported approximately $10 billion in total revenue for the 12 months ended Sept. 30, 2015. The principal methodology used in these ratings was Global Pharmaceutical Industry published in December 2012. VANTAGE DRILLING: Bank Debt Trades at 84% Off --------------------------------------------- Participations in a syndicated loan under which Vantage Drilling Co is a borrower traded in the secondary market at 16.50 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.50 percentage points from the previous week. Vantage Drilling Co pays 400 basis points above LIBOR to borrow under the $0.475 billion facility. The bank loan matures on Oct. 25, 2017 and carries Moody's WR rating and Standard & Poor's D rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. VARIANT HOLDING: Sec. 341 Meeting Continued to Mar. 4 ----------------------------------------------------- Variant Holding Company, LLC, has filed a notice that the Sec. 341 meeting of creditors is continued to Mar. 4, 2016, at 1:00 p.m., at J. Caleb Boggs Federal Building, 844 King St., Room 2112, Wilmington, Delaware. About Variant Holding Tucson, Arizona-based Variant Holding Company, LLC, and its direct and indirect subsidiaries are a commercial real estate business with direct and indirect ownership interests in 23 real property interests in various states. Variant Holding commenced bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code in Delaware (Case No. 14-12021) on Aug. 28, 2014. Variant Holding estimated $100 million to $500 million in assets and less than $100 million in debt. Members holding the majority of the interests in the company, namely Conix WH Holdings, LLC, Conix Inc., Numeric Holding Company, LLC, Walkers Dream Trust, and Variant Royalty Group, LP, signed the resolution authorizing the bankruptcy filing. Variant's subsidiaries filed voluntary Chapter 11 petitions on Jan. 12, 2016. Variant's property-owning subsidiaries, which own 23 apartment complexes, and which are debtors are: (1) Broadmoor Apartments, LLC, Chesapeake Apartments, LLC, Holly Ridge Apartments, LLC, Holly Tree Apartments, LLC, Preston Valley Apartments, LLC, Ravenwood Hills Apartments, LLC, River Road Terrace Apartments, LLC, and Sandridge Apartments, LLC (collectively, the "FX3 Portfolio Debtors"); (2) 10400 Sandpiper Apartments, LLC, 10301 Vista Apartments, LLC, Pines of Westbury, Ltd., 201 Ashton Oaks Apartments, LLC, 13875 Cranbook Forest Apartments, LLC, 5900 Crystal Springs Apartments, LLC, 7107 Las Palmas Apartments, LLC, 11911 Park Texas Apartments, LLC, 1201 Oaks of Brittany Apartments LLC, 3504 Mesa Ridge Apartments, LLC, 667 Maxey Village Apartments, LLC, 17103 Pine Forest Apartments, LLC, 7600 Royal Oaks Apartments, LLC, and 4101 Pointe Apartments, LLC (collectively, the "H14 Portfolio Debtors"); and (3) The Oaks of Stonecrest Apartments, LLC ("Oaks at Stonecrest")(the FX3 Portfolio Debtors, the H14 Portfolio Debtors and Oaks at Stonecrest are collectively referred as the "Property-Owning Debtors"). The FX3 Portfolio Debtors own 8 apartment projects in Texas, Maryland, Virginia, and South Carolina, which properties total 1,850 housing units. The H14 Portfolio Debtors own 14 apartment projects in Texas, which consist of a total of 5,050 housing units. Oaks at Stonecrest owns a single apartment project in Lithonia, Georgia, which has 280 housing units. The Debtors have tapped Pachulski Stang Ziehl & Jones LLP, as counsel and UpShot Services LLC as claims and noticing agent. VARIANT HOLDING: Seeks to Extend Schedules Deadline --------------------------------------------------- Variant Holding Company, LLC, et al., seek entry of an order extending the time within which the Debtors must file their schedules of assets and liabilities and statements of financial affairs through and including Feb. 25, 2016. Given the size and complexity of the Subsidiary Debtors' operations, and taking into account that there are 34 separate Subsidiary Debtor entities, a significant amount of information must be accumulated, reviewed, and analyzed to properly prepare the Schedules and Statements. The Subsidiary Debtors and their professionals have been consumed with a multitude of critical administrative administrative and operational decisions arising in conjunction with the commencement of the Subsidiary Debtors' Chapter 11 cases. Due to the complexity of the Debtors' business, compiling and consolidating the data required for the Schedules and Statements presents a complex and time-consuming task. About Variant Holding Tucson, Arizona-based Variant Holding Company, LLC, and its direct and indirect subsidiaries are a commercial real estate business with direct and indirect ownership interests in 23 real property interests in various states. Variant Holding commenced bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code in Delaware (Case No. 14-12021) on Aug. 28, 2014. Variant Holding estimated $100 million to $500 million in assets and less than $100 million in debt. Members holding the majority of the interests in the company, namely Conix WH Holdings, LLC, Conix Inc., Numeric Holding Company, LLC, Walkers Dream Trust, and Variant Royalty Group, LP, signed the resolution authorizing the bankruptcy filing. Variant's subsidiaries filed voluntary Chapter 11 petitions on Jan. 12, 2016. Variant's property-owning subsidiaries, which own 23 apartment complexes, and which are debtors are: (1) Broadmoor Apartments, LLC, Chesapeake Apartments, LLC, Holly Ridge Apartments, LLC, Holly Tree Apartments, LLC, Preston Valley Apartments, LLC, Ravenwood Hills Apartments, LLC, River Road Terrace Apartments, LLC, and Sandridge Apartments, LLC (collectively, the "FX3 Portfolio Debtors"); (2) 10400 Sandpiper Apartments, LLC, 10301 Vista Apartments, LLC, Pines of Westbury, Ltd., 201 Ashton Oaks Apartments, LLC, 13875 Cranbook Forest Apartments, LLC, 5900 Crystal Springs Apartments, LLC, 7107 Las Palmas Apartments, LLC, 11911 Park Texas Apartments, LLC, 1201 Oaks of Brittany Apartments LLC, 3504 Mesa Ridge Apartments, LLC, 667 Maxey Village Apartments, LLC, 17103 Pine Forest Apartments, LLC, 7600 Royal Oaks Apartments, LLC, and 4101 Pointe Apartments, LLC (collectively, the "H14 Portfolio Debtors"); and (3) The Oaks of Stonecrest Apartments, LLC ("Oaks at Stonecrest")(the FX3 Portfolio Debtors, the H14 Portfolio Debtors and Oaks at Stonecrest are collectively referred as the "Property-Owning Debtors"). The FX3 Portfolio Debtors own 8 apartment projects in Texas, Maryland, Virginia, and South Carolina, which properties total 1,850 housing units. The H14 Portfolio Debtors own 14 apartment projects in Texas, which consist of a total of 5,050 housing units. Oaks at Stonecrest owns a single apartment project in Lithonia, Georgia, which has 280 housing units. The Debtors have tapped Pachulski Stang Ziehl & Jones LLP, as counsel and UpShot Services LLC as claims and noticing agent. VICTORY HEALTHCARE: Plan Confirmation Hearing on March 21 --------------------------------------------------------- Judge Russell Nelms approved the disclosure statement explaining Victory Medical Center Mid-Cities, LP, et al.'s First Amended Joint Chapter 11 Plan and set a March 21, 2016 hearing to consider confirmation of the Plan. In a Feb. 16 order, Judge Nelms approved the Disclosure Statement and set Feb. 16 as the record date for holders of claims and equity security interests entitled to receive the Disclosure Statement and solicitation materials. The Plan, Disclosure Statement and Ballots were scheduled to be mailed to creditors and parties by Feb. 19, 2016. All objections to the Plan are due March 18, 2016 at 5:00 p.m. (CDT). All parties entitled to vote on the Plan have until March 18, 2016, at 5:00 p.m. (CDT) to cast ballots. The Debtors will file a ballot summary by March 21, 2016 at noon (CDT). The Court will conduct a hearing on confirmation of the First Amended Plan on March 21, 2017, at 1:30 p.m. (CDT). Attorneys for the Debtors: Edward L. Rothberg, Esq. Melissa A. Haselden, Esq. HOOVER SLOVACECK 5051 Westheimer, Suite 1200 Galleria Tower II Houston, TX 77056 Tel: (713) 977-8686 Fax: (713) 977-5395 E-mail: rothberg@hooverslovaceck.com haselden@hooverslovaceck.com Disclosure Statement Objection Dell Financial Services L.L.C. on Feb. 2 filed an objection to the original iteration of the Disclosure Statement. Among other things, Dell complained that without basic information as to how the Debtors intend to recover the amounts allegedly owed on accounts receivable, and the projected costs and expenses related thereto, creditors are left in the dark as to whether the Plan is actually feasible or even viable. Dell also notes that the Disclosure Statement makes no effort to inform creditors what they will receive under the Plan. Dell asserts that creditors have a right to know, in percentage terms, the amount the Debtors estimate they will recover on their claims and the potential timing of such a recovery. Attorneys for Dell Financial Services: G. James Landon, Esq. Sabrina L. Streusand, Esq. Kemper C. Powell, Esq. STREUSAND, LANDON & OZBURN, LLP 811 Barton Springs Road, Suite 811 Austin, TX 78701 Tel: (512) 236-9900 Fax: (512) 236-9904 E-mail: landon@slollp.com streusand@slollp.com powell@slollp.com About Victory Healthcare Victory Parent Company, LLC, and 8 affiliated companies sought Chapter 11 protection in Fort Worth, Texas (Bankr. N.D. Tex.) on June 12, 2015, in Ft. Worth, Texas. Headquartered in The Woodlands, Texas, Victory Parent Company manages six medical centers in Texas. Founded in 2005, Victory now maintains medical centers offering emergency room services in through Victory Medical Center Mid-Cities in Hurst, Victory Medical Center Plano, Victory Medical Center Craig Ranch in McKinney, and Victory Medical Center Landmark in San Antonio. The company also manages its Victory Medical Center Beaumont and Houston-East, which are not part of the Chapter 11 filing and will be sold separately. The Debtors tapped Hoover Slovacek, LLP, as counsel; Epiq Bankruptcy Solutions, LLC, as claims agent; and Baker, Donelson, Bearman, Caldwell & Berkowitz, PC, as special counsel. The Debtors also tapped Patrick C. Shields, P.C. as accountants to prepare and file the Debtors' state and federal tax returns on an hourly fee basis; Dr. Jin Zhou d/b/a ERISAclaim.com as Special Collection Agent for the Debtors on a contingency fee basis; and Sullins & Johnston PC as special counsel to pursue on a contingency fee basis litigation claims seeking recovery of amounts owed to the Debtors for medical care and services provided; and Patrick Magill as Chief Restructuring Officer. The Official Committee of Unsecured Creditors retained Pepper Hamilton LLP as its counsel, Forshey Prostok as its local counsel, and PWC as its financial advisor. * * * On June 25, 2015, the Debtors obtained approval from the Court of bidding procedures in connection with an expedited sale process for ongoing business operations. No qualified bids were received for the ongoing business concern of the Craig Ranch Hospital, and as a result Debtors closed the Craig Ranch hospital on July 17, 2015. No qualified bids were received for the ongoing business concern of Mid-Cities Hospital and as a result the Debtors closed the Mid-Cities Hospital on August 21, 2015. On Nov. 24, 2015, the Debtors, excluding Plano, obtained final approval to borrow on a secured basis from Robert Helms and H.D. Patel, through HPRH Investments, LLC -- DIP Lenders -- in an amount up to $2,300,000. The last day to file a proof of claim for creditors of Southcross and Southcross GP was Dec. 10, 2015. For all other Debtors, the last date to file a proof of claim was Oct. 22, 2015. The last day for any former patients of the Debtors to file a proof of claim was Dec. 21, 2015. The Debtors filed their Joint Chapter 11 Plan of Liquidation and accompanying Disclosure Statement on Jan. 8, 2016. VICTORY HEALTHCARE: Proposes Joint Plan of Liquidation ------------------------------------------------------ Victory Medical Center Mid-Cities, LP, et al., have filed a plan of liquidation that proposes to satisfy all claims in order of priority from cash, net litigation proceeds, collection of accounts receivable, liquidation of other assets, and an exit facility. If the Plan is confirmed by the Bankruptcy Court and consummated: (1) Allowed Administrative Claims will be paid in Cash in full unless otherwise agreed; (2) Allowed Non-Tax Priority Claims will be paid in full in Cash unless otherwise agreed; (3) Allowed Priority Tax Claims will be paid in full, with statutory interest, in equal quarterly payments over time from Trustee's Available Cash; (4) The Allowed Secured Claim of HPRH Investments for the HPRH Consolidated Debt will be paid over time from Trustee's Available Cash with simple interest at a rate of 10% per annum until paid in full; (5) The Holders of Other Allowed Secured Claims will either (i) have their collateral surrendered in satisfaction of their Claims or (ii) such other treatment as may be agreed between the Holder of such Claim and the Debtors; (6) Holders of Allowed General Unsecured Claims will be paid a pro rata share of the remaining Trustee's Available Cash as provided in Article 4.5 of the Plan; (7) Holders of Allowed Claims of Affiliates will be allowed to offset any amount owed by a Debtor, with the balance of the Allowed Claim to be treated as an Allowed General Unsecured Claim; and (8) Equity Interest Holders will receive no distribution or any property under the Plan on account of said Interests until Allowed Class 1, Class 2, Class 3, Class 4, Class 5, and Class 6 are paid as provided under the terms of the Plan. On the Effective Date, a separate Grantor Trust will be created for each Debtor Couplet and Victory Parent. Neil Gilmour will be appointed as the initial Grantor Trustee for each of the Debtors. The Grantor Trustee will be required to post a bond of at least $250,000 for each Debtor Couplet and Victory Parent, for a total of $1.5 million in connection with this appointment. The Grantor Trustee retains the right, but not the requirement, to pursue all Avoidance Actions except those specifically released in the Plan. HPRH Investments will provide exit financing in the amount of necessary to pay off the HPRH DIP Loan, plus if Debtors' Available Cash is insufficient to pay Allowed Administrative Claims, Allowed Class 3 Claims, the $150,000 to the Grantor Trustee set forth in Section 6.13 or other required operational expenses, as determined solely by the Debtors, that are necessary to cover such Claims and expenses. The Debtors filed their Joint Chapter 11 Plan of Liquidation and accompanying Disclosure Statement on Jan. 8, 2016 and a First Amended Disclosure Statement on Feb. 12, 2016. A copy of the First Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/Victory_M_777_1st_Am_DS.pdf The Debtors have also filed their plan supplements and exhibits in connection with the Amended Plan and Disclosure Statement: http://bankrupt.com/misc/Victory_M_783_Plan_Supp.pdf http://bankrupt.com/misc/Victory_M_784_Plan_Supp.pdf http://bankrupt.com/misc/Victory_M_785_Plan_Supp.pdf http://bankrupt.com/misc/Victory_M_788_Plan_Supp.pdf About Victory Healthcare Victory Parent Company, LLC, and 8 affiliated companies sought Chapter 11 protection in Fort Worth, Texas (Bankr. N.D. Tex.) on June 12, 2015, in Ft. Worth, Texas. Headquartered in The Woodlands, Texas, Victory Parent Company manages six medical centers in Texas. Founded in 2005, Victory now maintains medical centers offering emergency room services in through Victory Medical Center Mid-Cities in Hurst, Victory Medical Center Plano, Victory Medical Center Craig Ranch in McKinney, and Victory Medical Center Landmark in San Antonio. The company also manages its Victory Medical Center Beaumont and Houston-East, which are not part of the Chapter 11 filing and will be sold separately. The Debtors tapped Hoover Slovacek, LLP, as counsel; Epiq Bankruptcy Solutions, LLC, as claims agent; and Baker, Donelson, Bearman, Caldwell & Berkowitz, PC, as special counsel. The Debtors also tapped Patrick C. Shields, P.C. as accountants to prepare and file the Debtors' state and federal tax returns on an hourly fee basis; Dr. Jin Zhou d/b/a ERISAclaim.com as Special Collection Agent for the Debtors on a contingency fee basis; and Sullins & Johnston PC as special counsel to pursue on a contingency fee basis litigation claims seeking recovery of amounts owed to the Debtors for medical care and services provided; and Patrick Magill as Chief Restructuring Officer. The Official Committee of Unsecured Creditors retained Pepper Hamilton LLP as its counsel, Forshey Prostok as its local counsel, and PwC as its financial advisor. * * * On June 25, 2015, the Debtors obtained approval from the Court of bidding procedures in connection with an expedited sale process for ongoing business operations. No qualified bids were received for the ongoing business concern of the Craig Ranch Hospital, and as a result Debtors closed the Craig Ranch hospital on July 17, 2015. No qualified bids were received for the ongoing business concern of Mid-Cities Hospital and as a result the Debtors closed the Mid-Cities Hospital on August 21, 2015. On Nov. 24, 2015, the Debtors, excluding Plano, obtained final approval to borrow on a secured basis from Robert Helms and H.D. Patel, through HPRH Investments, LLC -- DIP Lenders -- in an amount up to $2,300,000. The last day to file a proof of claim for creditors of Southcross and Southcross GP was Dec. 10, 2015. For all other Debtors, the last date to file a proof of claim was Oct. 22, 2015. The last day for any former patients of the Debtors to file a proof of claim was Dec. 21, 2015. The Debtors filed their Joint Chapter 11 Plan of Liquidation and accompanying Disclosure Statement on Jan. 8, 2016. WALTER ENERGY: Balks at Coal Act Funds' Bid to Stay Pending Appeal ------------------------------------------------------------------ BankruptcyData reported that Walter Energy filed with the U.S. Bankruptcy Court a statement of opposition to Coal Act Funds' emergency motion for stay pending appeal. The statement explains, "The Debtors and the purchaser consummated the Non-Core Sale Transaction on Feb. 12, 2016. Accordingly, the Funds' appeal of the Non-Core Sale Order is moot and a stay would serve no purpose....Nonetheless, the Court must deny the stay motion if it chooses to consider the merits. The Non-Core Sale Order provided the best and only opportunity to sell the relevant NonCore Assets as a going concern with substantial assumed liabilities, a new collective bargaining agreement with the USW, and continued employment for non-union workers....The debtor-in-possession financing facility matures upon the closing of the sale of the Core Assets to Coal Acquisition LLC, and the Debtors have no ability to fund operations thereafter. Hence, the only alternative to the Non-Core Sale Order was a straight liquidation of the Non-Core Assets." 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. WELLNESS CENTER: Incurs $542,000 Net Loss in Dec. 31 Quarter ------------------------------------------------------------ Wellness Center USA, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company's stockholders of $541,557 on $126,426 of total revenue for the three months ended Dec. 31, 2015, compared to a net loss attributable to the Company's stockholders of $422,943 on $103,309 of total revenue for the same period in 2014. As of Dec. 31, 2015, the Company had $973,336 in total assets, $922,216 in total liabilities and $158,858 in total stockholders' equity and a $107,738 in noncontrolling interest. As of Dec. 31, 2015, the Company's cash balance was $135,599. A full-text copy of the Form 10-Q is available for free at: http://is.gd/KH8vdk About Wellness Center Wellness Center USA, Inc. (WCUI:OTC US) is an alternative healthcare, medical device solutions and online nutraceutical sales company. The Company has four business units: Stealth Mark, which sells, licenses or provides certain authentication and encryption products and services; National Pain Centers, Inc., which specializes in spine and multimodal pain; Psoria-Shield Inc., a developer and manufacturer of Ultra Violet (UV) phototherapy devices for the treatment of skin diseases; and CNS-Wellness LLC, which specializes in the treatment of brain-based behavioral health disorders. Wellness Center reported a net loss of $4.86 million for the fiscal year ended Sept. 30, 2014, compared to a net loss of $2.81 million for the fiscal year ended Sept. 30, 2013. Li and Company, PC, in Skillman, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2014. The independent auditors noted that the Company had an accumulated deficit at Sept. 30, 2014, a net loss and net cash used in operating activities for the reporting period then ended. These factors raise substantial doubt about the Company's ability to continue as a going concern. WEST COAST: Case Converted to Chapter 7 Proceeding -------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of California ordered the conversion of West Coast Growers Inc.'s Chapter 11 case to a Chapter 7 liquidation. The court had earlier required West Coast Growers to explain why its case should not be converted to a Chapter 7 proceeding or dismissed after seeing that there was no need for the company to remain under Chapter 11 protection. According to the court, West Coast Growers did not have assets available for distribution to unsecured creditors and that the appointment of an outside trustee or examiner could do little for those creditors. Parties involved in the case had also told the court during hearings that the company did not intend to reorganize under a Chapter 11 plan, court filings show. In a court filing, West Coast Growers had admitted that it didn't have available money for general unsecured creditors. The company, however, favored the dismissal of its case over conversion to a Chapter 7 proceeding. About West Coast Growers West Coast Growers, Inc., a Kerman, California-based processor and distributor of California raisins, sought Chapter 11 bankruptcy protection (Bankr. E.D. Cal. Case No. 15-11079) on March 20, 2015, in Fresno, California. The case is assigned to Judge W. Richard Lee. Related entity Salwasser, Inc. (the 100% shareholder of WCG) also sought bankruptcy protection on March 20, 2015 (Case No. 15-11080). Charlotte Ellen Salwasser filed a Chapter 11 petition (Case No. 15-10705) on Feb. 26, 2015. Ms. Salwasser and husband George Salwasser are the principals and 50% shareholders of Salwasser, Inc. Mr. Salwasser is the president of WCG, and Ms. Salwasser is the vice president and secretary of WCG. West Coast Growers disclosed total assets of $10.1 million and total liabilities of $59.6 million. Hagop T. Bedoyan, Esq., Jacob L. Eaton, Esq., at Lisa A. Holder, Esq., at Klein, Denatale, Goldner, Cooper, Rosenlieb & Kimball, LLP, serve as West Coast Growers' attorneys. Peter L. Fear, Esq., at Fear Law Group, P.C., represents Salwasser as counsel. The U.S. Trustee for Region 17 appointed two creditors of West Coast Growers Inc. to serve on the official committee of unsecured creditors. The Committee retains Blakeley LLP as its counsel. WOOD RESOURCE: Seeks to Retain ChildersLaw as Counsel ----------------------------------------------------- Wood Resource Recovery, L.L.C., asks the Bankruptcy Court for approval to employ Seldon J. Childers and ChildersLaw, LLC, as counsel, nunc pro tunc to the Petition Date. The professional services that Childers Law will render include, but are not limited to, the following: A. preparation of all Schedules, Statements, Declarations, and other papers to be filed in this case on behalf of the Debtor. B. advise and counsel the Debtor with respect to its responsibilities in complying with the United States Trustee's Guidelines and Reporting Requirements and with the rules and Orders of the Court; C. defend any causes of action on behalf of the Debtor; D. protect the interests of the Debtor in all matters before the Court; E. prepare on behalf of the Debtor all necessary applications, motions, reports, pleadings, orders, adversary proceedings, and other legal documents necessary in the Chapter 11 case; F. counsel the Debtor with regard to its rights and obligations as a Debtor-in-Possession; G. represent the Debtor in negotiation with its creditors and in preparation of a Chapter 11 Plan of Reorganization and a Disclosure Statement; and H. provide all services to the Debtor of a legal nature in the field of bankruptcy law. The Debtor has agreed to compensate ChildersLaw for Post-Petition services on an hourly basis in accordance with ChildersLaw's standard hourly rates in effect on the date service is rendered, subject to the Court's approval. ChildersLaw's hourly rates are $375 per hour for attorney Seldon J. Childers, $275 per hour for associate attorneys of the firm, $150 per hour for paraprofessionals, and $50 per hour for legal secretarial time. The Debtor has also agreed to reimburse ChildersLaw for its actual and necessary expenses incurred in representing the Debtor. Seldon J. Childers assures the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors. The firm can be reached at: Seldon J. Childers, Esq. CHILDERSLAW, LLC 2135 N.W. 40th Terrace, Suite B Gainesville, FL 32605 Tel: 866-996-6104 FREE Fax: 407-209-3870 E-mail: jchilders@smartbizlaw.com About Wood Resource Gainesville, Florida-based Wood Resource Recovery, L.L.C., filed on January 28, 2016, voluntary petitions (Bankr. N.D. Fla., Case No. 16-10014). The case is assigned to Judge Karen K. Specie. The Debtors are represented by Elizabeth A. Green, Esq., at Baker & Hostetler LLP, in Orlando, Florida. Wood Resource Recovery disclosed estimated assets and liabilities of between $10 million to $50 million as of the Chapter 11 filing. The Debtor's counsel is Seldon J. Childers, Esq., at ChildersLaw, LLC. XO HOLDINGS: S&P Puts 'B' CCR on CreditWatch Positive ----------------------------------------------------- Standard & Poor's Ratings Services said that it placed its 'B' corporate credit rating on Herndon, Va.-based XO Holdings on CreditWatch with positive implications. "The CreditWatch placement follows the company's announcement that its wholly owned subsidiary XO Communications LLC will be acquired by Verizon Communications Inc. in a transaction valued at approximately $1.8 billion," said Standard & Poor's credit analyst Scott Tan. "We expect the transaction to close in the first half of 2017." S&P also expects that XO Holdings' existing $500 million senior secured term loan due 2021, which is issued by XO Communications, will be repaid when the transaction closes. The documentation in the term loan contains a change of control provision in the event the company is acquired. As a result, S&P is not placing its ratings on the senior secured term loan on CreditWatch. S&P expects to resolve the CreditWatch placement when the transaction closes, at which time S&P will withdraw its ratings on XO Holdings. ZAYO GROUP: Bank Debt Trades at 2% Off -------------------------------------- Participations in a syndicated loan under which Zayo Group is a borrower traded in the secondary market at 97.68 cents-on-the-dollar during the week ended Friday, Feb. 12, 2016, according to data compiled by LSTA/Thomson Reuters MTM Pricing. This represents a decrease of 0.75 percentage points from the previous week. Zayo Group pays 275 basis points above LIBOR to borrow under the $1.995 billion facility. The bank loan matures on May 12, 2022 and carries Moody's and Standard & Poor's did not give any rating. The loan is one of the biggest gainers and losers among 247 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Feb. 12. [*] Conway MacKenzie's R.J. Prossner Receives CIRA Certification ---------------------------------------------------------------- Conway MacKenzie announced that R.J. Prossner has received his Certified Insolvency & Restructuring Advisor (CIRA) Certification. In addition to passing the comprehensive three-part examination, all Certified Insolvency and Restructuring Advisor (CIRA) recipients must have a minimum of five years of accounting or financial experience, and have completed, within the last eight years, 4,000 hours of specialized insolvency and reorganization experience. The CIRA program recognizes by public awareness and certification those individuals who possess a high degree of specialized, professional, financial and operational expertise in the area of business bankruptcy and insolvency. Such experience includes accounting, operational, taxation, law, finance and management strategies related to business bankruptcy and insolvency. At Conway MacKenzie, Mr. Prossner specializes in providing liquidity management, financial modeling, strategic planning, turnaround and operational management services to both performing and underperforming companies. As a restructuring advisor, he has represented the interests of debtor and creditor constituencies in out-of-court restructurings and formal bankruptcy settings in a variety of industries, including automotive, manufacturing, consumer products, retail, distribution, metals & specialty metals, telecommunications and technology. Mr. Prossner is a member of the Association of Insolvency & Restructuring Advisors, the Turnaround Management Association, the American Bankruptcy Institute, and the Association for Corporate Growth. Conway MacKenzie -- http://conwaymackenzie.com/-- is a consulting and financial advisory firm. Across industries and across the country, it helps healthy companies thrive and troubled companies get back on track. [*] Funds Say Court Forgot Baker Donelson Fraud Row Argument ------------------------------------------------------------ Dani Meyer at Bankruptcy Law360 reported that two hedge funds accusing Baker Donelson Bearman Caldwell & Berkowitz PC of doctoring a loan agreement for a bankrupt energy company asked an Illinois federal court on Feb. 17, 2016, to rethink tossing the suit, saying the court ostensibly forgot about one of their jurisdiction assertions. U.S. District Judge Robert M. Dow Jr. had dismissed the suit earlier this month after finding the funds failed to show the law firm knew its alleged actions to prevent the funds from collecting on their loan would extend to Illinois. [*] GOP Attys Would Likely Back Sri Srinivasan to Replace Scalia ---------------------------------------------------------------- Jimmy Hoover at Bankruptcy Law360 reported politically moderate D.C. Circuit Judge Sri Srinivasan is considered among President Barack Obama's top choices to replace the late Associate Supreme Court Justice Antonin Scalia, and despite calls from the Republican party to block any nominee, experts say he will likely have strong support among elite GOP lawyers. With Obama saying he plans to nominate a successor to the fiery conservative justice despite planned Republican opposition, numerous sources have identified Judge Srinivasan as the most plausible candidate given his Indian background, young age and experience. Jeannie O'Sullivan at Law 360 reported that the fate of the high court's pending cases -- which involve hot-button topics like affirmative action, abortion, immigration, Obamacare and union fees -- turns on whether the Senate will confirm a new justice this term or wait until a new president is elected, experts say. Justice Scalia sat on the bench's closely held 5-4 conservative majority. [*] MoFo Adds Jonathan Levine as Business Restructuring Partner --------------------------------------------------------------- Jonathan Levine joined Morrison & Foerster LLP's New York office as a partner in its Business Restructuring & Insolvency Group. Mr. Levine comes to the firm from Andrews Kurth, where he represented ad hoc bondholder groups, indenture trustees, and creditor committees. His addition follows the recent arrival of Peter Declercq and Sonya Van de Graaff as business restructuring and insolvency partners in London. "I've known Jon for nearly a decade and have seen what an outstanding lawyer he is from working opposite him in a number of different matters," said Brett Miller, managing partner of the New York office and a partner in the Business Restructuring & Insolvency Group. "Jon's practice and his strong corporate background complement our current restructuring capabilities, and make him a great resource for our clients. Jon's addition is also particularly timely, given the significant uptick in bankruptcy filings so far in 2016 and the current uncertain global economic climate." "The growth of our global restructuring platform is a key component of MoFo's strategic development," said Lorenzo Marinuzzi, global co-chair of the firmwide Business Restructuring & Insolvency Group. "Jon brings distinguished restructuring experience to MoFo, strengthening an already impressive bench of high-caliber lawyers. We are thrilled to have him join our team.” Mr. Levine's practice involves the representation of official and ad hoc creditors and equity committees, significant strategic and financial investors, and debtors/issuers in complex chapter 11 reorganizations and out-of-court restructurings. Mr. Levine regularly advises indenture trustees, hedge funds, and other market participants on a variety of matters. H e earned his J.D. from the University of California at Los Angeles School of Law and his B.A. from Stanford University. Morrison & Foerster's Business Restructuring & Insolvency Group has one of the strongest practices in the industry and has advised on many of the most complex matters in recent years. [*] Squire Patton Boggs and Carroll, Burdick to Combine ------------------------------------------------------- Squire Patton Boggs and California-based Carroll, Burdick & McDonough on Feb. 22 announce that they have reached a definitive agreement to combine firms. The combination will create the world's premier product quality, brand protection and compliance practice, joining together Squire Patton Boggs’ leading global platform of over 1,500 lawyers spanning 45 offices in 21 countries in the Americas, Asia Pacific, Europe and the Middle East, with Carroll Burdick, a complex litigation and products risk management powerhouse with over 50 lawyers on three continents. Carroll Burdick will operate as an integrated part of Squire Patton Boggs, offering clients a robust level of service in a range of corporate, compliance and dispute-related disciplines, as well as deep roots representing the transportation industry. Founded in San Francisco in 1948, where its main office remains, Carroll Burdick also has offices in Böblingen (near Stuttgart), giving the combined firm a significant presence in the center of Germany's industrial powerhouse of Baden-Württemberg. This office will complement Squire Patton Boggs' offices in Berlin and Frankfurt, and further solidify its long-term commitment to serving premier German clients with worldwide business. Carroll Burdick also has offices in Hong Kong and Los Angeles, which complement those of Squire Patton Boggs and strengthen the combined firm’s presence in California and the Pacific Rim. "From the outset of our discussions with Carroll Burdick, it was clear that our firms shared common values, a complementary mix of practices and clients who would mutually benefit from what the other firm brought to the table," said Squire Patton Boggs' Global Chairman Mark Ruehlmann. "The needs of our clients have always been the central focus of our firm's strategic vision. In an increasingly regulated and inter-dependent global economy, our clients rely upon us now more than ever for compliance solutions across virtually all industries. With this combination, and the new relationships that come with it, we have even greater opportunities to better serve our clients with strong and developing global businesses." "As we looked to grow and expand the range of services we could offer clients, particularly our premier practice in global product risk coordination, joining a firm with the scale, practice breadth and global reputation of Squire Patton Boggs was a logical step," said Dr. Matthew Kemner, Chairman of Carroll Burdick, who has been asked to serve as a member of Squire Patton Boggs' Global Board. "For a global firm of this size, we were impressed with their high level of integration and ability to mobilize client teams across virtually any area of law and geography for the better service of our outstanding global clients. This is a very exciting day for our clients and us." The combination is subject to a limited number of conditions and is expected to become effective in March 2016. About Squire Patton Boggs Squire Patton Boggs is one of the world’s strongest integrated legal practices. With 45 offices in 21 countries, the firm is renowned for its local connections and global influence, delivering comprehensive legal services across North America, Europe, the Middle East, Asia Pacific, and Latin America. About Carroll, Burdick & McDonough A leader in global product risk management and global litigation coordination, Carroll Burdick has over 50 lawyers on three continents, speaking more than 16 languages including German, English, Mandarin Chinese (Mandarin and Cantonese), French, Italian, Latvian, Malay, Romanian, Russian and Spanish, with over 20 percent of the firm’s lawyers having legal educations in two or more countries. This unparalleled experience provides the cultural insights necessary for effective global legal service that helps our international clients reach their global business goals. PRESS CONTACT Angelo Kakolyris +1 212 407 0148 angelo.kakolyris@squirepb.com * * * Elizabeth Olson, writing for The New York Times' DealBook, reported that Squire Patton Boggs, a law firm that was built on powerhouse lobbying in Washington but later encountered turbulence as the legal economy shifted, is acquiring a smaller firm based in San Francisco, Carroll, Burdick & McDonough. The firms, which announced the deal on Feb. 22, said the combination would become effective in March, joining the approximately 1,500 lawyers at Squire with Carroll Burdick's 50, the DealBook related. In 2014, Patton Boggs, started by Thomas Boggs Jr., merged with Squire Sanders as its future became shaky, the report further related. The combined firm is one of the three largest in the country, but earnings from its best-known practice, lobbying, have been declining, the DealBook said. In 2015, $25 million of the firm's annual revenue came from its lobbying practice, a 20 percent drop from its 2014 lobbying earnings of $32 million, the DealBook added. [*] Williams & Connolly Takes Chance on Zach Warren --------------------------------------------------- Brandon Lowrey at Bankruptcy Law360 reported that Williams & Connolly LLP has taken a calculated risk in hiring Zachary Warren on the same day that the young lawyer inked a deferred prosecution agreement over his alleged role in the Dewey & LeBoeuf LLP scandal, a move that Warren's attorney called a "vindication" for the otherwise promising attorney. The Manhattan district attorney's office agreed to drop charges against the 31-year-old after one year if he completes 350 hours of community service. Warren was charged as a low-level co-conspirator in the firm's purported fraud scheme. Williams & Connolly LLP -- https://www.wc.com/ -- is a prominent litigation firm based in Washington, D.C. Although the firm handles cases all over the world, the firm's 275 partners and associates are all based in a single office in Washington, D.C. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re Paul Herbert Feller Bankr. C.D. Cal. Case No. 16-10238 Chapter 11 Petition filed February 9, 2016 represented by: Reed H Olmstead, Esq. HURLBETT & OLMSTEAD E-mail: reed@olmstead.law In re Marsh Trucking, LLC Bankr. D. Colo. Case No. 16-10980 Chapter 11 Petition filed February 9, 2016 See http://bankrupt.com/misc/cob1610980.pdf represented by: Phillip Jones, Esq. WILLIAMS, TURNER & HOLMES, PC E-mail: pjones@wth-law.com In re Michelle Metzler Bankr. S.D. Fla. Case No. 16-11831 Chapter 11 Petition filed February 9, 2016 In re Andre A. Small Bankr. D. Md. Case No. 16-11473 Chapter 11 Petition filed February 9, 2016 In re Erik R Rivera Otero and Melissa B Santos Alberti Bankr. D.P.R. Case No. 16-00918 Chapter 11 Petition filed February 9, 2016 In re Pedro Ivan Martinez Santana Bankr. D.P.R. Case No. 16-00932 Chapter 11 Petition filed February 9, 2016 In re D&H Machine Service, Inc. Bankr. E.D. Tenn. Case No. 16-30308 Chapter 11 Petition filed February 9, 2016 See http://bankrupt.com/misc/tneb16-30308.pdf represented by: Dean B. Farmer, Esq. HODGES, DOUGHTY & CARSON PLLC E-mail: dfarmer@hdclaw.com In re Eastern Dhaka, Inc. Bankr. S.D. Tex. Case No. 16-80043 Chapter 11 Petition filed February 9, 2016 See http://bankrupt.com/misc/txsb16-80043.pdf represented by: Sirigurmukh Khalsa, Esq. WIST HOLLAND & KEHLHOF E-mail: skhalsa@whkllp.com In re Presidential Detailing LLC Bankr. E.D. Va. Case No. 16-10447 Chapter 11 Petition filed February 9, 2016 See http://bankrupt.com/misc/vaeb16-10447.pdf represented by: Steven B. Ramsdell, Esq. TYLER, BARTL, RAMSDELL & COUNTS, PLC E-mail: sramsdell@tbrclaw.com In re Peggy Kenney Bankr. W.D. Wash. Case No. 16-40481 Chapter 11 Petition filed February 9, 2016 filed Pro Se In re Sassyfras Investments, LLC Bankr. D. Ariz. Case No. 16-01178 Chapter 11 Petition filed February 10, 2016 See http://bankrupt.com/misc/azb16-01178.pdf represented by: William R. Richardson, Esq. RICHARDSON & RICHARDSON PC E-mail: wrichlaw@aol.com In re Kenneth Duane Stacks Bankr. E.D. Ark. Case No. 16-16-10673 Chapter 11 Petition filed February 10, 2016 In re Heather Marie Bartlett Bankr. C.D. Cal. Case No. 16-10524 Chapter 11 Petition filed February 10, 2016 See http://bankrupt.com/misc/cacb16-10524.pdf represented by: Andrew S Bisom, Esq. THE BISOM LAW GROUP E-mail: abisom@bisomlaw.com In re Jose Cruz Mercado Bankr. E.D. Cal. Case No. 16-90103 Chapter 11 Petition filed February 10, 2016 In re Gloriosa R. Antiporda and Hess B. Yazji Bankr. M.D. Fla. Case No. 16-00456 Chapter 11 Petition filed February 10, 2016 In re Siegfried K. Holz Bankr. M.D. Fla. Case No. 16-00456 Chapter 11 Petition filed February 10, 2016 In re Andre A. Small Trustee Of Andre A. Small Irrevocable Trust Bankr. D. Md. Case No. 16-11473 Chapter 11 Petition filed February 10, 2016 See http://bankrupt.com/misc/mdb16-11473.pdf Filed Pro Se In re Samwin, LLC Bankr. D.N.J. Case No. 16-12420 Chapter 11 Petition filed February 10, 2016 See http://bankrupt.com/misc/njb16-12420.pdf represented by: David A. Kasen, Esq. KASEN & KASEN E-mail: dkasen@kasenlaw.com In re La Kandela Restaurant Inc. Bankr. E.D.N.Y. Case No. 16-40560 Chapter 11 Petition filed February 10, 2016 See http://bankrupt.com/misc/nysb16-40560.pdf represented by: Frances Newman Ruiz, Esq. Ruiz Law Group PC In re Dunlap Street, LLC Bankr. M.D. Pa. Case No. 16-00542 Chapter 11 Petition filed February 10, 2016 See http://bankrupt.com/misc/pamb16-00542.pdf represented by: Donald M. Hahn, Esq. Stover McGlaughlin Gerace Weyandt & McCormick PC In re Eduardo Rivera Rivera Bankr. D.P.R. Case No. 16-00945 Chapter 11 Petition filed February 10, 2016 In re Sango Pool and Spa, LLC Bankr. M.D. Tenn. Case No. 16-00850 Chapter 11 Petition filed February 10, 2016 See http://bankrupt.com/misc/tnmb16-00850.pdf represented by: Griffin S. Dunham, Esq. Emerge Law PLC In re Gordon Communications Bankr. S.D. Tex. Case No. 16-30744 Chapter 11 Petition filed February 10, 2016 See http://bankrupt.com/misc/txsb16-30744.pdf represented by: Matthew Hoffman, Esq. Hoffman & Saweris, p.c. In re Presidio Circle, LLC Bankr. D. Ariz. Case No. 16-01213 Chapter 11 Petition filed February 11, 2016 Filed Pro Se In re Blake Tek Yoon Bankr. C.D. Cal. Case No. 16-11744 Chapter 11 Petition filed February 11, 2016 represented by: Vakhe Khodzhayan, Esq. KG LAW E-mail: vahe@lawyer.com In re ADA Construction Services, Inc Bankr. E.D. Cal. Case No. 16-20760 Chapter 11 Petition filed February 11, 2016 See http://bankrupt.com/misc/caeb16-20760.pdf represented by: Michael W. Thomas, Esq. THOMAS & ASSOCIATES E-mail: mthomas@thomas-lawyers.com In re Jackson Sutter, LLC Bankr. N.D. Cal. Case No. 16-40370 Chapter 11 Petition filed February 11, 2016 See http://bankrupt.com/misc/canb16-40370.pdf represented by: Paul E. Manasian, Esq. LAW OFFICES OF PAUL E. MANASIAN E-mail: manasian@mrlawsf.com In re J. Brent Wainwright Industries, LLC Bankr. M.D. Fla. Case No. 16-00470 Chapter 11 Petition filed February 11, 2016 See http://bankrupt.com/misc/flmb16-00470.pdf represented by: Buddy D. Ford, Esq. BUDDY D. FORD, PA E-mail: Nancy@TampaEsq.com In re David Anthony Abdo and Carmen Silvia Morales-Abdo Bankr. S.D. Fla. Case No. 16-11953 Chapter 11 Petition filed February 11, 2016 In re Mustapha Assi Revocable Living Trust dated June 23, 2003 Bankr. D. Nev. Case No. 16-10615 Chapter 11 Petition filed February 11, 2016 See http://bankrupt.com/misc/nvb16-10615.pdf represented by: Talitha B. Gray Kozlowski, Esq. GTG,LLP E-mail: tgray@gtg.legal In re 721 Vermont St Estate Inc Bankr. E.D.N.Y. Case No. 16-40576 Chapter 11 Petition filed February 11, 2016 In re Motel Tropical Inc Bankr. D.P.R. Case No. 16-00966 Chapter 11 Petition filed February 11, 2016 See http://bankrupt.com/misc/prb16-00966.pdf represented by: Isabel M. Fullana, Esq. GARCIA ARREGUI & FULLANA PSC E-mail: isabelfullana@gmail.com In re B & D Entreprises S.E. Bankr. D.P.R. Case No. 16-00978 Chapter 11 Petition filed February 11, 2016 See http://bankrupt.com/misc/prb16-00978.pdf represented by: Isabel M. Fullana, Esq. GARCIA ARREGUI & FULLANA PSC E-mail: isabelfullana@gmail.com In re Italian Oven Corp. Bankr. D.P.R. Case No. 16-00994 Chapter 11 Petition filed February 11, 2016 See http://bankrupt.com/misc/prb16-00994.pdf represented by: Alexis Fuentes Hernandez, Esq. FUENTES LAW OFFICES, LLC E-mail: alex@fuentes-law.com In re UTSA Apartments 16, LLC Bankr. W.D. Tex. Case No. 16-50341 Chapter 11 Petition filed February 11, 2016 See http://bankrupt.com/misc/txwb16-50341.pdf represented by: Allen M. DeBard, Esq. LANGLEY & BANACK, INC E-mail: adebard@langleybanack.com ********* 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 ***