/raid1/www/Hosts/bankrupt/TCR_Public/160701.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, July 1, 2016, Vol. 20, No. 183
Headlines
480 BUNNELL: Seeks to Hire Ignal Napolitano as Legal Counsel
90 FLORENCE STREET: Hires Ehrhard & Associates as Counsel
A CHICAGO CONVENTION: Taps Robert R. Tepper as Special Counsel
A CHICAGO CONVENTION: Taps Tighe Kress as Accountant
A GREENER GLOBE: Trustee Taps Burr Pilger as Accountant
A GREENER GLOBE: Trustee Taps Felderstein as Legal Counsel
ABENGOA BIOENERGY: Proposes Aug. 22 Auction for Assets
ADIENT PLC: S&P Assigns Preliminary 'BB+' CCR, Outlook Stable
ADVANCED ROOFING: $3K Genie Boom Lift Sale to Marano Approved
ALLY FINANCIAL: Appoints William Cary to Board
AMERICAN FEDERATED: A.M. Best Affirms bb ICR, Outlook Negative
AMERICOL INC: Hires Menna Law Firm as Attorney
ARCHDIOCESE OF ST. PAUL: Court Rejects Bid to Employ Deloitte
ARROYO VISION: Ch.11 Trustee Hires Grobstein Teeple as Accountants
ATLANTIC & PACIFIC: Court OKs Deal with Creditors, Noteholders
AU CAFE: Hires Troutman Sanders LLP as Special Counsel
B&L EQUIPMENT: PPL to Auction $650K of Non-Essential Equipment
BAYTEX ENERGY: Egan-Jones Assigns 'CCC' Sr. Unsecured Ratings
BEAR METALLURGICAL: Schedules Filing Deadline Extended to July 19
BEUTLER'S LAWN: $157K Genesee County Property Sale Approved
BFN OPERATIONS: Has Interim OK to Obtain $35MM DIP Loan
BFN OPERATIONS: Hires CDG's Ek as Chief Restructuring Officer
BFN OPERATIONS: Hires Gardere Wynne as Counsel
BFN OPERATIONS: Hires Imperial Capital as Investment Banker
BFN OPERATIONS: Hires UpShot Services as Claims Agent
BON-TON STORES: Egan-Jones Lowers FC Sr. Unsecured Rating to CCC-
BONAVISTA ENERGY: Egan-Jones Assigns CCC Sr. Unsecured Ratings
CAMP-RIGBY: Seeks to Hire Johnston Law as Legal Counsel
CELTIC CONCEPTS: U.S. Trustee Unable to Appoint Committee
CHANGE HEALTHCARE: S&P Puts 'B' Rating on Senior Secured Debt
CHARTER SCHOOL: Case Summary & 10 Unsecured Creditors
CHIEFTAIN STEEL: Committee Taps Phoenix as Financial Advisor
CIRCLE B: Hires Brannen Firm as Attorney
CLASSIC COMMUNITIES: Files Schedules of Assets and Liabilities
COMDISCO INC: Final Decree Hearing Set for July 12
COMMERCE PARK: Superior Court Partly Affirms "Tri-Town" Suit Ruling
CONGREGATION OF UNITY: Case Summary & Unsecured Creditor
CONSTRUCTION MATERIALS: Case Summary & 20 Top Unsecured Creditors
CRYOPORT INC: Incurs $15 Million Net Loss in Fiscal 2016
CUSTOM BYTES: Exclusive Plan Filing Period Moved to July 29
DARIUS ENTERPRISES: $950K Sale of Chatworth Real Property Approved
DIAMOND RESORTS: Moody's Puts B1 CFR on Review for Downgrade
DOLPHIN DIGITAL: Closes $250,000 Private Placement
EAST AFRICAN DRILLING: Court Reinstates "RT FM SPC" Suit
ECHELON FINANCIAL: A.M. Best Lowers Issuer Credit Rating to bb
EDU-PRO MANAGEMENT: Case Summary & 8 Unsecured Creditors
ELBIT IMAGING: Reverse Share Split Takes Effect
ELBIT IMAGING: Unit Agrees to Sell Residential Plot for for EUR2.4M
ENERGY FUTURE: Court OKs Extension of Cash Use to Sept. 30
EPICENTER PARTNERS: Stinson Leonard Not "Disinterested," UST Says
EROSOL LLC: Trustee Gets Approval to Hire Hays as Accountant
ERWIN WILLIAMS: Melancons Buy Metairie Property for $170K
FAST LANE: Hires Eason Law Firm as Counsel
FINANCIAL RESOURCES: Hires RentPro's Demott as Property Manager
FLEMINGTON BLOCK: Emerald Wants to Sell Property Claimed by Debtor
FOODSERVICEWAREHOUSE: Selling $7M of Inventory, Hires HYPERAMS
FRANKLIN GRAHAM LOCKE: Proposes $1.68M Sale of Tenn. Property
G.A.S. OF EATONTOWN: Hires Menna Law Firm as Attorney
GARY DEAN ROGERS: Selling Bentwood Reserve Property for $70K
GAWKER MEDIA: Says Sale of Avoidance Actions Will Bring $90MM
GEIGER DEVELOPMENT: U.S. Trustee Unable to Appoint Committee
GOLDEN MARINA: Wants Plan Filing Deadline Moved to Oct. 4
GREIF INC: Egan-Jones Lowers FC Sr. Unsecured Rating to BB
HEARTLAND DAIRY: Hires Haller & Colvin as Attorneys
HILLCREST ACADEMY: Voluntary Chapter 11 Case Summary
HISTORIC TIMBER: Taps Mathis Marifian as Legal Counsel
IAMGOLD CORP: Egan-Jones Assigns 'B' Senior Unsecured Ratings
IHEARTCOMMUNICATIONS INC: No Agreement Yet on Credit Amendment
INTREPID POTASH: Reaches Agreement to Extend Debt Covenant Waiver
INVERRARY RESORT HOTEL: Seeks to Hire Hunter Realty as Broker
ISLE OF CAPRI CASINOS: Egan-Jones Hikes FC Sr. Unsec. Rating to B
J L LEASING: Sells 2011 Kenworth T800 Tractor for $68K
JOHN A. RITTER: U.S. Trustee Forms 5-Member Committee
JOHN Q. HAMMONS: Kroll Bond Rating Agency Monitors Bankruptcy
KATOURA INC: Hires Joel M. Aresty as Attorney
KDA GROUP: Ga. Courts Remands Suit vs Yellowbookpages.com
KDA GROUP: U.S. Trustee Unable to Appoint Committee
KIPIN INDUSTRIES: Prism Response Leaves Creditors' Committee
LIVE NATURALLY: Taps McCraw Law Firm as Special Counsel
LONGVIEW POWER: S&P Lowers Rating on $300MM Facility to 'B'
LOS ANGELES GUILD: Case Summary & 20 Top Unsecured Creditors
M SPACE HOLDINGS: Has $1.2M Stalking Horse Deal with VESTA
MARK MARTINEZ LLC: U.S. Trustee Forms 3-Member Committee
MATT HORN: Selling Pennsylvania Property for $717,000
MAXUS ENERGY: Hires Prime Clerk as Claims and Noticing Agent
MINERVA HOSPITALITY: Taps Gabriel Del Virginia as Legal Counsel
NATIVE WHOLESALE: Bid to Reconsider Okla.'s Allowed Claim Denied
NET ELEMENT: May Issue 1.34 Million Shares Under Equity Plan
NEUSTAR INC: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
NEW HORIZONS: Renews $112.5K Owenton KY Property Sale Motion
NEWARK WATERSHED: Court Grants Cory Booker's Bid to Dismiss Suit
NEWPORT BONDING: A.M. Best Withdraws ccc Issuer Credit Rating
NICOLAOS SPIRAKIS: Objection to Spiliotis' Secured Claim Sustained
NORTH GATEWAY CORE: Taps Forrester & Worth as Legal Counsel
OAKFABCO INC: Exclusive Plan Filing Period Extended to Sept. 30
OI SA: Chapter 15 Recognition Hearing Set for July 21
PACIFIC EXPLORATION: Court Authorizes Filing of Compromise Plan
PARFUMS ACQUISITION: S&P Affirms 'B' CCR, Outlook Stable
PEAK WEB: Appointed Lightower Fiber to Creditors' Committee
PERRY PETROLEUM: Hires Lawrence G. Frank as Attorney
PETROLEUM PRODUCTS: Exclusive Plan Filing Deadline Moved to Oct. 3
PEYTO EXPLORATION: Egan-Jones Assigns BB+ Sr. Unsecured Ratings
PICO HOLDINGS: Activist Bloggers Pen Open Letter to Chairman Marino
PIONEER ENERGY: Releases Copy of Slide Presentation for 2016
POSTMEDIA NETWORK: S&P Cuts CCR to CCC- on Increased Default Risk
PUBLIC SERVICE: A.M. Best Lowers Finc'l. Strength Rating to C++
RICEBRAN TECHNOLOGIES: Incumbent Directors Get Majority Votes
ROBERT CRIMI SR: Receives $400K Offer for New Jersey Property
SCOTT A BERGER M.D.: Case Summary & 20 Top Unsecured Creditors
SEARS HOLDINGS: Egan-Jones Ups FC Sr. Unsecured Debt Rating to CC
SFX ENTERTAINMENT: Securities Plaintiffs Balk at Sillerman Deal
SFX ENTERTAINMENT: Taps FTI's Brazilian Office
SNEED SHIPBUILDING: Has Until Sept. 1 to Exclusively File Plan
SPARTAN SPECIALTY: Case Summary & 5 Unsecured Creditors
ST. JAMES NURSING: Must Amend Disclosure Statement
STARVING STUDENTS: Hires Garman Turner Gordon as Attorney
STEEL FUNDING: S&P Rates $700MM Participation Notes 'BB+'
STERLING MID-HOLDINGS: S&P Cuts ICR to CC on Planned Debt Exchange
SUNCOAST LED: Taps Steven M. Fishman as Legal Counsel
TECHPRECISION CORP: Posts $1.35 Million Net Income for Fiscal 2016
TJ SIGNS SOLUTIONS: Hires Orville & McDonald Law as Attorney
TRIANGLE PETROLEUM: Provides Update on Strategic Alternatives
TRIANGLE USA: Case Summary & 20 Largest Unsecured Creditors
TRIANGLE USA: Files Ch.11 Petition to Facilitate Restructuring
TRIANGLE USA: Files for Bankruptcy with Plan Support Agreement
TURNKEY PRODUCTS: Hires Jeff Sims as Chief Financial Officer
TUSCANY ENERGY: ATB Financial Demands Repayment of $8.5M Loan
UCI INTERNATIONAL: Proposes Bid Procedures for De Minimis Assets
UNIQUE INSURANCE: A.M. Best Lowers Finc'l. Strength Rating to C++
UNIVERSAL SECURITY: Delays March 31 Form 10-K Report
UNIVERSAL SECURITY: Douglas Ruth Files Schedule 13G with SEC
UNO CHARTER: S&P Lowers Revenue Bonds Rating to BB+
VENOCO INC: Needs Until October 17 to Decide on Leases
VERESEN INC: Egan-Jones Assigns BB+ Sr. Unsecured Debt Rating
VWR FUNDING: S&P Affirms 'BB-' CCR & Revises Outlook to Positive
WILLIAM CONTRACTOR: Suit vs. Mercado, et al., Dismissed
XTREME MACHINING: U.S. Trustee Unable to Appoint Committee
[^] BOOK REVIEW: The Sorcerer's Apprentice - Medical Miracles
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480 BUNNELL: Seeks to Hire Ignal Napolitano as Legal Counsel
------------------------------------------------------------
480 Bunnell Street, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Connecticut to hire Ignal, Napolitano &
Shapiro, P.C.
The Debtor tapped the firm to provide legal services in connection
with the sale of its property located in Bridgeport, Connecticut.
Specifically, Ignal will:
(a) advise the Debtor concerning the actions that it might
take to sell the property;
(b) prepare legal documents necessary to consummate the sale
of the property, distribute the proceeds of the sale and
comply with the Debtor's obligations to file monthly
operating reports and pay quarterly fees; and
(c) advise the Debtor and prepare responses to applications,
motions, pleadings, notices and other papers, which will
be filed and served in its Chapter 11 case.
The hourly rate for Roberta Napolitano, a member of the firm who
will provide most of the services, is $250 an hour.
In a court filing, Ms. Napolitano disclosed that the firm does not
hold any interest adverse to the Debtor's estate.
The firm can be reached through:
Roberta Napolitano
Ignal, Napolitano & Shapiro, P.C.
350 Fairfield Avenue
Bridgeport, Connecticut 06604
About 480 Bunnell Street
480 Bunnell Street, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Conn. Case No. 12-51736) on September
24, 2012. The petition was signed by Raymond Weiner, member.
At the time of the filing, the Debtor estimated its assets and
liabilities at $1 million to $10 million.
90 FLORENCE STREET: Hires Ehrhard & Associates as Counsel
---------------------------------------------------------
90 Florence Street, Inc., asks for permission from the U.S.
Bankruptcy Court for the District of Massachusetts to employ
Ehrhard & Associates, P.C., as counsel.
E&A will:
a) give Debtor legal advice with respect to its powers and
duties as a Debtor in this Chapter 11 proceeding;
b) perform on behalf of your applicant necessary
applications, answers, orders, reports and other legal
papers requires for these proceedings;
c) perform all other legal services for your applicant which
may be necessary, and it is necessary for Debtor to employ
an attorney for such professional services; and
d) represent the Debtor with the sale, refinance or
restructuring of the property of the Debtor.
E&A has received a retainer of $5,717 of which $4,000 is being held
in escrow for legal fees and $1,717 is to be used for the filing
fee pending future fee applications with this Court.
E&A will be paid at these hourly rates:
James P. Ehrhard, Esq. $300
Jennifer Cote, Paralegal $110
Senior Attorneys $300
Junior Attorneys $225
Paralegals $110
Legal Secretaries $85
James P. Ehrhard, Esq., an attorney at E&A, assures the Court that
neither he nor any member or employee of the firm holds or
represents any interest adverse to the estate of the Debtor. Mr.
Ehrhard and the Debtor tells the Court that he and E&A are
disinterested persons as that term is defined in 11 U.S.C. Section
101(14).
E&A can be reached at:
James P. Ehrhard, Esq.
Ehrhard & Associates, P.C.
250 Commecial Street, Suite 410
Worcester, MA 01608
Tel: (508)791-8411
E-mail: ehrhard@ehrhardlaw.com
90 Florence Street, Inc., filed for Chapter 11 bankruptcy
protection (Bankr. D. Mass. Case No. 16-41066) on June 20, 2016.
A CHICAGO CONVENTION: Taps Robert R. Tepper as Special Counsel
--------------------------------------------------------------
A Chicago Convention Center, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to hire the
Law Offices of Robert R. Tepper as its special counsel.
The firm will represent the Debtor in a lawsuit it filed against
Hangzhou Tianfeng Exit & Entry for Personal Affairs Co., Ltd. and
14 others in the Circuit Court of Cook County, Illinois.
The firm will be paid $525 per hour for its services and will
receive reimbursement for work-related expenses.
Robert Tepper disclosed in a court filing that he does not hold or
represent any interest adverse to the Debtor's estate.
The firm can be reached through:
Robert R. Tepper
Law Offices of Robert R. Tepper
111 West Washington, Suite 1900
Chicago, IL 60602
About A Chicago Convention Center
A Chicago Convention Center, LLC was formed to raise funds and
develop a convention center complex at 8201 W. Higgins, Chicago,
Illinois.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N. D. Ill. Case No. 16-20463) on June 23, 2016. The
petition was signed by Ravinder Sethi, member.
The case is assigned to Judge Deborah L. Thorne.
At the time of the filing, the Debtor estimated its assets at $1
million to $10 million and debts at $10 million to $50 million.
A CHICAGO CONVENTION: Taps Tighe Kress as Accountant
----------------------------------------------------
A Chicago Convention Center, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to hire
Tighe, Kress & Orr, P.C. as its accountant.
The Debtor tapped the firm to provide accounting services, which
include the preparation of tax returns for 2013, 2014 and 2015, and
the prosecution of an appeal from the Internal Revenue Service's
decision disputing that it was an accrual-basis taxpayer for 2012.
Tighe will be paid $350 per hour for its services, according to
court filings.
Keith Orr, an accountant employed by Tighe, disclosed in a court
filing that he is a "disinterested person" as defined in section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Keith W. Orr
Tighe, Kress & Orr
2001 Larkin Avenue, Suite 202,
Elgin, IL 60123
The Debtor can be reached through its legal counsel:
Ariel Weissberg, Esq.
Rakesh Khanna, Esq.
Devvrat Sinha, Esq.
Weissberg and Associates, Ltd.
401 S. LaSalle St., Suite 403
Chicago, IL 60605
Tel: 312-663-0004
Fax: 312-663-1514
ariel@weissberglaw.com
About A Chicago Convention Center
A Chicago Convention Center, LLC was formed to raise funds and
develop a convention center complex at 8201 W. Higgins, Chicago,
Illinois.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N. D. Ill. Case No. 16-20463) on June 23, 2016. The
petition was signed by Ravinder Sethi, member.
The case is assigned to Judge Deborah L. Thorne.
At the time of the filing, the Debtor estimated its assets at $1
million to $10 million and debts at $10 million to $50 million.
A GREENER GLOBE: Trustee Taps Burr Pilger as Accountant
-------------------------------------------------------
The Chapter 11 trustee of A Greener Globe seeks approval from the
U.S. Bankruptcy Court for the Eastern District of California to
hire Burr, Pilger Mayer, Inc. as his accountant.
Russell Burbank, the bankruptcy trustee, tapped the firm to provide
these services:
(a) analyze, record and report on budgeting, cash receipts
and disbursements, and sources or uses of cash to allow
for proper administration of the estates;
(b) complete tax work and other financial analysis;
(c) assist the trustee in preparing state and federal income
tax returns;
(d) communicate with taxing authorities on behalf of the
estate; and
(e) other accounting, bookkeeping and administrative
services.
Burr Pilger does not hold or represent any interest adverse to the
estate or any class of creditors, according to court filings.
The firm can be reached through:
Andrea Cope
Stephanie Avakian
Burr, Pilger Mayer, Inc.
600 California Street, Suite 600
San Francisco, CA 94108
Phone: 415-421-5757
Fax: 415-288-6288
About A Greener Globe
A Greener Globe sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Cal. Case No. 16-21900) on March 28,
2016.
A GREENER GLOBE: Trustee Taps Felderstein as Legal Counsel
----------------------------------------------------------
The Chapter 11 trustee of A Greener Globe seeks approval from the
U.S. Bankruptcy Court for the Eastern District of California to
hire Felderstein Fitzgerald Willoughby & Pascuzzi LLP.
Russell Burbank, the bankruptcy trustee, tapped the firm to be his
legal counsel in connection with the Debtor's Chapter 11 case.
Felderstein will provide these services:
(a) advise the trustee with respect to bankruptcy-related
matters;
(b) assist the trustee in obtaining the use of cash
collateral and obtaining court approval to sell the
Debtor's assets or business;
(c) assist the trustee in the preparation and confirmation of
a plan of reorganization or liquidation; and
(d) advise and represent the trustee with respect to possible
motions for relief from stay filed by the Debtor's
secured creditors.
The firm's professionals and their hourly rates are:
Steven H. Felderstein Managing Partner $495
Donald W. Fitzgerald Partner $495
Thomas A. Willoughby Partner $495
Paul J. Pascuzzi Partner $475
Jason E. Rios Partner $405
Jennifer E. Niemann Counsel $395
Holly A. Estioko Associate $350
Karen L. Widder Legal Assistant $195
The firm has agreed to cap the hourly rate for Steven Felderstein
at $495, which is a reduction from $595.
Aside from professional fees, the firm will also receive
reimbursement for work-related expenses.
Felderstein does not hold or represent any interest adverse to the
Debtor's estate or its creditors, according to court filings.
The firm can be reached through:
Thomas A. Willoughby
Jennifer E. Niemann
Felderstein Fitzgerald
Willoughby & Pascuzzi LLP
400 Capitol Mall, Suite 1750
Sacramento, CA 95814
Telephone: (916) 329-7400
Facsimile: (916) 329-7435
twilloughby@ffwplaw.com
jniemann@ffwplaw.com
About A Greener Globe
A Greener Globe sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Cal. Case No. 16-21900) on March 28,
2016.
ABENGOA BIOENERGY: Proposes Aug. 22 Auction for Assets
------------------------------------------------------
Abengoa Bioenergy US Holding, LLC and its debtor affiliates ask the
U.S. Bankruptcy Court for the Eastern District of Missouri, Eastern
Division, to approve procedures in connection with the sale of one
or more of the assets of the Bioenergy Debtors to stalking horse
bidders Maize Acquisition Sub LLC, KE Holdings, LLC, and BioUrja
Trading, LLC, for $360 million, absent higher and better offers.
The sale transactions pursuant to the Stalking Horse Agreements are
subject to competitive bidding.
A hearing for the sale motion is set for June 15, 2016, at 10:00
a.m., Courtroom 7 North, U.S. Bankruptcy Court for the Eastern
District of Missouri, Eastern Division.
Contemporaneously with filing their chapter 11 petitions, certain
affiliates of the Debtors (the "Maple Debtors") filed a motion
seeking a joint administration of their Chapter 11 cases with the
cases of the Debtors in the Chapter 11 cases ("Original Debtors,"
and together with the Maple Debtors, "Bioenergy Debtors").
The Maple Debtors own and operate two ethanol production facilities
located in Mt. Vernon, IN and Madison, IL ("Maple Assets"), which
have been a part of the marketing process that also included the
four assets of the Original Debtors; specifically, the plant in
Ravenna, NE ("Ravenna Assets"), the plant in York, NE ("York
Assets"), the plant in Colwich, NE and the plant in Portales, NM.
The Bioenergy Debtors have determined, after the exercise of due
diligence and in consultation with their advisors that maximizing
the value of the Bioenergy Debtors' estates is best accomplished
through the sale, free and clear of liabilities, of one or more of
the Debtors' assets ("Purchased Assets"). To that end, the
Bioenergy Debtors entered into the following asset purchase
agreements ("Stalking Horse Agreements"), all dated Jun. 10, 2016:
a. between Abengoa Bioenergy of Illinois, LLC and Abengoa
Bioenergy of Indiana, LLC, on the one hand, and Maize Acquisition
Sub LLC, on the other hand, for the Maple Assets in an amount no
less than $200 million;
b. between Abengoa Bioenergy of Nebraska, LLC and KE Holdings,
LLC for the Ravenna Assets in an amount no less than $115 million;
and
c. between Abengoa Bioenergy Company, LLC and BioUrja Trading,
LLC for the York Assets in an amount no less than $45 million.
Copies of the Maple Assets Stalking Horse Agreement, the Ravenna
Assets Stalking Horse Agreement, the York Assets Stalking Horse
Agreement, and the Bidding Procedures is available for free at:
http://bankrupt.com/misc/Abengoa_378_Sale_M.pdf
The sales of the Purchased Assets pursuant to the procedures and on
the proposed timeline present the best opportunity to maximize the
value of the Purchased Assets for all interested parties. Moreover,
the rapid transition to new ownership will maximize the value of
the Purchased Assets.
Under the Stalking Horse Agreements, the Stalking Horse Purchasers
have agreed to purchase the Purchased Assets at the prices
specified in each respective agreement (the "Stalking Horse
Purchase Prices"). The Stalking Horse Purchasers, in making their
offers, have relied upon the agreement by the Debtors to seek the
Court's approval of reimbursement of each Stalking Horse
Purchaser's reasonable fees, costs, disbursements, and expenses
incurred in connection with the transactions contemplated by the
Stalking Horse Agreements through the date of termination, subject
to a cap for each Stalking Horse Purchaser of $500,000 (the
"Expense Reimbursement") and an aggregate fee of 2.5% of the cash
purchase price attributable to the property, plant and equipment of
the Purchased Assets (the "Break-Up Fee," and together
with the Expense Reimbursement, the "Stalking Horse Protections"),
and in reasonable expectation that the Court will enter an order
providing such relief.
In order to ensure that the Bioenergy Debtors receive the maximum
value for the Purchased Assets, the Stalking Horse Agreements are
subject to higher or better offers, and, as such, the Stalking
Horse Agreement(s) will serve as the "stalking-horse" bid(s) for
the respective Purchased Asset(s). The Bioenergy Debtors will
entertain bids for individual assets or combinations of assets,
regardless of whether such assets are subject to a Stalking Horse.
The Debtors propose this timeline:
a) Bid Procedures Objection Deadline: June 15, 2016 at 10:00
a.m. (prevailing Central Time)
b) Assumption/Assignment and Cure Objection Deadline: August 11,
2016 at 4:00 p.m. (prevailing Central Time)
c) Sale Objection Deadline: August 18, 2016 at 4:00 p.m.
(prevailing Central Time)
d) Bid Deadline: August 18, 2016 at 4:00 p.m. (prevailing
Eastern Time)
e) Auction: August 22, 2016 at 10:00 a.m. (prevailing Eastern
Time)
f) Sale Hearing: August 25, 2016
The Bioenergy Debtors request that the Court schedule the Sale
Hearing on Aug. 25, 2016 and propose that any objections to the
sale be filed by 4:00 p.m. (CT) on Aug. 18, 2016.
Local Counsel to the Bioenergy Debtors:
Richard W. Engel, Jr.
Susan K. Ehlers
Erin M. Edelman
ARMSTRONG TEASDALE LLP
7700 Forsyth Blvd., Suite 1800
St. Louis, MO 63105
Telephone: (314) 621-5070
Facsimile: (314) 621-5065
E-mail: rengel@armstrongteasdale.com
sehlers@armstrongteasdale.com
eedelman@armstrongteasdale.com
Counsel to the Bioenergy Debtors:
Richard A. Chesley
LA PIPER LLP (US)
203 North LaSalle Street, Suite 1900
Chicago, IL 60601
Telephone: (312) 368-4000
Facsimile: (312) 236-7516
E-mail: richard.chesley@dlapiper.com
- and -
R. Craig Martin
LA PIPER LLP (US)
1201 North Market Street, Suite 2100
Wilmington, DE 19801
Telephone: (302) 468-5700
Facsimile: (302) 394-2341
E-mail: craig.martin@dlapiper.com
About Abengoa Bioenergy
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, MO.
With a total investment of $3.3 billion, the US 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, et al., on Feb. 1, 2016, filed an involuntary
Chapter 7 petition for Abengoa Bioenergy of Nebraska, LLC
("ABNE")vand on Feb. 11, 2016, filed an involuntary Chapter 7
petition for Abengoa Bioenergy Co., LLC ("ABC"). 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. An order for
relief has not been entered, and no interim Chapter 7 trustee has
been appointed in the Involuntary Cases. The petitioning creditors
are represented by McGrath, North, Mullin & Kratz, P.C.
On Feb. 24, 2016, Abengoa Bioenergy US Holding, LLC and five
affiliated debtors each filed a Chapter 11 voluntary petition in
St. Louis, Missouri, disclosing total assets of $1.3 billion and
debt of $1.2 billion. The cases are pending before the Hon. Kathy
A. Surratt-States and are jointly administered under Bankr. E.D.
Mo. Case No. 16-41161.
The Debtors have engaged DLA Piper LLP (US) as counsel, Armstrong
Teasdale LLP as co-counsel, Alvarez & Marsal North America, LLC as
financial advisor, Lazard as investment banker and Prime Clerk LLC
as claims and noticing agent.
ADIENT PLC: S&P Assigns Preliminary 'BB+' CCR, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings said that it has assigned its preliminary 'BB+'
corporate credit rating to Adient PLC. The outlook is stable.
At the same time, S&P assigned its preliminary 'BBB' issue-level
rating and '1' recovery rating to the company's senior secured
debt. The '1' recovery rating indicates S&P's expectation that
lenders will receive very high recovery (90%-100%) in the event of
a default.
"Our preliminary corporate credit rating on Adient reflects the
company's position as the leading provider of seating systems for
the global light-vehicle market," said S&P Global credit analyst
Lawrence Orlowski. With operations in 33 countries, the company
delivers 25 million seating systems per year and has long-standing
relationships with all of the premier automotive manufacturers. The
majority of these relationships span more than 20 years and have
carried over from the company's time as JCI's Automotive Seating
segment. Additionally, Adient also has 17 joint-venture
partnerships with key Chinese OEMs.
The stable outlook on Adient reflects S&P's assumption that the
company will maintain a significant financial risk profile.
Overall, S&P would expect the company's debt-to-EBITDA metric to
remain below 4.0x while its FOCF-to-debt ratio remains above 10%
over the next 12 months.
S&P could lower its ratings on Adient if, for example, global
vehicle demand began to decline or the OEMs decide to pursue a
components-sourcing strategy that leads to significant pricing
pressure on their suppliers, causing the company's debt-to-EBITDA
metric to exceed 4.0x and its FOCF-to-debt ratio to fall
significantly below 10% on a sustained basis.
S&P could raise its ratings on Adient to investment grade (rated
'BBB-' and higher) if the company demonstrated a comfortable
resilience to adverse economic conditions over the long-term
(including through industry downturns) and it increased its overall
profitability. The company would also need to expand its EBITDA
margins to reflect its strengthening competitive position and
consistent program-launch execution before S&P would upgrade it.
ADVANCED ROOFING: $3K Genie Boom Lift Sale to Marano Approved
-------------------------------------------------------------
Judge Jack Schmetterer of the U.S. Bankruptcy Court for the
Northern District of Illinois, Eastern Division, authorized
Advanced Roofing & Woodworking, Inc., to sell the Genie Boom Lift,
free and clear of any liens, to Marano Co. for $3,000 payable to
secured creditor, Union National Bank, within 7 days of entry of
the order, plus the Stipulation of Joseph Zanko disallowing his
claim against Advanced Roofing & Woodworking, Inc. in the amount of
$5,462.
Advanced Roofing & Woodworking is represented by:
Teresa L. Einarson
THOMAS & EINARSON LTD.
1200 Roosevelt Rd, Suite 150
Glen Ellyn, IL 60137
Telephone: (630) 562-2280
Advanced Roofing & Woodworking
Advanced Roofing & Woodworking, Inc., sought Chapter 11 protection
(Bankr. N.D. Ill. Case No. 15-27325) on Aug. 10, 2015, in Chicago.
The case is assigned to Judge Jack B. Schmetterer. The Debtor is
represented by Teresa L. Einarson, Esq. at Thomas & Einarson LTD.
The Debtor estimated $500,000 to $1 million in assets and $1
million to $10 million in debt. The petition was signed by Charles
Hankins, president.
ALLY FINANCIAL: Appoints William Cary to Board
----------------------------------------------
William H. Cary was appointed to the Ally Financial Inc. Board of
Directors, effective June 23, 2016. In connection with his
appointment, Mr. Cary will receive, under the Company's 2014
Non-Employee Directors Equity Compensation Plan, a one-time initial
award of deferred stock units, as well as a prorated annual
retainer grant of deferred stock units.
Further, Stephen A. Feinberg, a current director of the Company,
resigned from the Board, effective June 22, 2016. Mr. Feinberg's
decision to resign did not involve any disagreement with the
Company's operations, policies or practices.
About Ally Financial
Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/--
is one of the world's largest automotive financial services
companies. The Company offers a full suite of automotive
financing products and services in key markets around the world.
Ally's other business units include mortgage operations and
commercial finance, and the company's subsidiary, Ally Bank,
offers online retail banking products. Ally operates as a bank
holding company.
GMAC obtained a $17 billion bailout from the U.S. government in
exchange for a 56.3 percent stake. Private equity firm Cerberus
Capital Management LP keeps 14.9 percent, while General Motors Co.
owns 6.7 percent.
Ally reported net income of $1.28 billion on $4.86 billion of total
net revenue for the year ended Dec. 31, 2015, compared to net
income of $1.15 billion on $4.65 billion of total net revenue for
the year ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had
$158.58 billion in total assets, $145.14 billion in total
liabilities and $13.43 billion in total equity.
* * *
As reported by the TCR on Dec. 16, 2013, Standard & Poor's Ratings
Services said it raised its issuer credit rating on Ally Financial
Inc. to 'BB' from 'B+'. "The upgrade reflects the company's
release from potential legal and financial liabilities stemming
from its ownership of ResCap," said Standard & Poor's credit
analyst Tom Connell.
In the April 3, 2014, edition of the TCR, Fitch Ratings has
upgraded Ally Financial Inc.'s long-term Issuer Default Rating
(IDR) and senior unsecured debt rating to 'BB+' from 'BB'.
The rating upgrade reflects increased clarity around Ally's
ownership structure given Ally's recent announcement that it has
launched an initial public offering those shares of its common
stock held by the U.S. Treasury (the Treasury).
As reported by the TCR on July 16, 2014, Moody's Investors Service
affirmed the 'Ba3' corporate family and 'B1' senior unsecured
ratings of Ally Financial, Inc. and revised the outlook for the
ratings to positive from stable. Moody's affirmed Ally's ratings
and revised its rating outlook to positive based on the company's
progress toward sustained improvements in profitability and
repayment of government assistance received during the financial
crisis.
AMERICAN FEDERATED: A.M. Best Affirms bb ICR, Outlook Negative
--------------------------------------------------------------
A.M. Best has affirmed the financial strength rating of B (Fair)
and the issuer credit rating of "bb" of American Federated
Insurance Company (AFIC) (Flowood, MS). The outlook for each rating
is negative.
AFIC is an indirect, wholly owned subsidiary of First Tower Finance
Company LLC (First Tower Finance), a multi-line specialty finance
company. Prospect Capital Corporation [NASDAQ: PSEC], a publicly
traded closed-end investment company, indirectly owns an 80.1%
majority interest in First Tower Finance and its subsidiaries.
The ratings reflect considerable financial leverage that has
resulted in a deficit in members' equity at First Tower Finance,
stemming from a 2014 transaction involving the return of First
Tower Finance's capital to its members. The outlooks reflect the
significant financial leverage at First Tower Finance, an
intermediate holding company, and the potential for this to create
pressure on AFIC for dividends or increased expense sharing.
Negative rating actions could occur if the financial condition of
First Tower Finance weakens significantly. In addition, negative
rating actions could occur should Prospect Capital Corporation fail
to provide adequate support for First Tower Finance and its
subsidiaries.
AMERICOL INC: Hires Menna Law Firm as Attorney
----------------------------------------------
AmeriCol Inc., seeks authorization from the U.S. Bankruptcy Court
for the District of New Jersey to employ Pasquale Menna of Menna
Law Firm as attorney for Debtor-in-Possession.
Pasquale Menna will be paid at a rate of $250 per hour.
Pasquale Menna, member of Menna Law Firm, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
Menna Law Firm may be reached at:
Pasquale Menna, Esq.
Menna Law Firm
151 Bodman Place
3rd Floor, Suite 300
Red Bank, NJ 07701
Tel: 732-383-8445
Fax: 732-383-8274
E-mail: pmenna@mennalaw.com
About AmeriCol Inc.
AmeriCol Inc. filed a Chapter 11 bankruptcy petition (Bankr. D.N.J.
Case No. 16-19584) on May 17, 2016.
ARCHDIOCESE OF ST. PAUL: Court Rejects Bid to Employ Deloitte
-------------------------------------------------------------
Judge Robert J. Kressel of the U.S. Bankruptcy Court for the
District of Minnesota rejects the second motion of the Committee of
Unsecured Creditors of The Archdiocese of Saint Paul and
Minneapolis to retain Deloitte Transactions and Business Analytics
LLP as financial advisor to the Committee.
The request was filed on February 26, 2016. The Order was dated
June 2, 2016.
About the Archdiocese of Saint Paul
and Minneapolis
The Archdiocese of Saint Paul and Minneapolis was originally
established by the Vatican in 1850 and serves a geographical area
consisting of 12 greater Twin Cities metro-area counties in
Minnesota, including Ramsey, Hennepin, Anoka, Carver, Chicago,
Dakota, Goodhue, Le Sueur, Rice, Scott, Washington, and Wright
counties. There are 187 parishes and approximately 825,000 Catholic
individuals in the region. These individuals and parishes are
served by 3999 priests and 173 deacons.
The Archdiocese of St. Paul and Minneapolis filed for Chapter 11
protection (Bankr. D. Minn. Case No. 15-30125) in Minnesota on Jan.
16, 2015, saying it has large and growing liabilities related to
child sexual abuse and that its pension obligations are
underfunded.
The Debtor disclosed $45,203,010 in assets and $15,890,460 in
liabilities as of the Chapter 11 filing.
The Debtor has tapped Briggs and Morgan, P.A., as Chapter 11
counsel; BGA Management LLC d/b/a Alliance Management as financial
advisor; Lindquist & Vennum LLP as attorney.
Eleven other dioceses have commenced Chapter 11 bankruptcy cases in
the United States to settle claims from current and former
parishioners who say they were sexually molested by priests.
U.S. Trustee for Region 12 appointed five creditors to serve on the
official committee of unsecured creditors.
The U.S. Trustee appointed five creditors to serve on the Committee
of Parish Creditors. Ginny Dwyer appointed as the acting
chairperson of the committee until such time as the members can
meet and officially elect their own person.
ARROYO VISION: Ch.11 Trustee Hires Grobstein Teeple as Accountants
------------------------------------------------------------------
Elissa Miller, the Chapter 11 Trustee for Arroyo Vision Care, LLC,
asks the U.S. Bankruptcy Court for the Central District of
California for permission to employ Grobstein Teeple LLP as her
Accountants.
The Chapter 11 Trustee requires GT to:
a. obtain and evaluate financial records;
b. evaluate assets and liabilities of Debtor and Estate;
c. assist with preparation of projections, analysis of tax and
financial issues related to a plan and disclosure statement;
d. evaluate tax issue related to the Debtor and Estate;
e. prepare tax returns;
f. provide litigation consulting if required; and
g. provide accounting and consulting services requested by the
Applicant and its counsel.
GT understands and agrees to accept employment on grounds that its
fees may be awarded only upon the application to and approval by
the Court after notice and hearing. It is contemplated that GT will
seek compensation and reimbursement of expenses from the Estate
based upon its normal and usual hourly filing rates and may seek
interim compensation as permitted by 11 U.S.C. Sec. 330 and 331.
Howard B. Grobstein, partner at Grobstein Teeple LLP, assured the
Court that the firm does not represent any interest adverse to the
Debtors and their estates.
GT may be reach at:
Howard B. Grobstein
Grobstein Teeple LLP
6300 Canoga Avenue, Suite 1500W
Woodland Hills, CA 91367
Telephone: (818)532-1020
Facsimile: (818)532-1120
About Arroyo Vision Care, LLC
Arroyo Vision Care, LL filed a Chapter 11 bankruptcy petition
(Bankr. C.D. Cal. Case No. 16-10742) on January 20, 2016. Judge
Sheri Bluebond presides over the case. The Michael D. Kwasigroch
Law Firm represented the Debtor as counsel. In its petition, the
Debtor estimated $1 million to $10 million in both assets and
liabilities. The petition was signed by Gary Lefkowitz, CEO.
Elissa Miller has been appointed as the Chapter 11 Trustee for the
Debtor.
ATLANTIC & PACIFIC: Court OKs Deal with Creditors, Noteholders
--------------------------------------------------------------
Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern
District of New York approves the global settlement entered into by
The Great Atlantic & Pacific Tea Company, Inc., and certain of its
affiliates with the Official Committee of Unsecured Creditors, the
Prepetition PIK Notes Trustee, the Prepetition Convertible Notes
Trustee, the Unions, and the Pension Plans.
The Court directs the Debtors to distribute $1.5 million of the
Cash Consideration to the UFCW professionals, which payment will
not be subject to any avoidance, reduction, recharacterization,
subordination, pursuant to the Bankruptcy Code or applicable
non-bankruptcy law, objection, defense, counterclaim, cross-claims,
set-off or offset, or any other challenges.
The Debtors are further directed to pay Initial Mandatory Payments
the Prepetition Indenture Trustees for their outstanding fees and
expenses in an amount not to exceed $250,000 in the aggregate,
subject to a wind-down budget that is acceptable to the Majority
PIK Noteholders and Majority Convertible Noteholders, and to
distribute to the Prepetition PIK Notes Trustee (for the benefit of
the Prepetition PIK Noteholders) cash in an amount not less than
$90 million.
Likewise, the Parties acknowledge and agree that the Prepetition
PIK Notes Secured Parties have prior to the date of the Global
Settlement, received distributions on account of the Allowed PIK
Notes Claim in the amount of $203,484,992, plus professional fees
required to be paid as set forth in the Final DIP Order or Amended
Cash Collateral Order.
Universal Environmanetal Consulting, Inc., objected to the approval
of the Global Settlement, complaining that UEC received only a
notice of the joint motion and "summary" of the alleged terms of
the global settlement, and has not received the actual terms of the
proposed settlement nor any proper notice of the terms in order to
provide a more substantive objection to the proposed settlement.
Further, UEC complained that it is unclear whether the proposed
settlement even concerns UEC as a supplemental, non-debtor party
considering that UEC has never been brought into the bankruptcy
ation as an actual non-debtor party. UEC asked the Court to except
any and all claims for contribution, indemnity, and/or insurance in
the underlying action under Index No. 03724/2013 pending before the
Supreme Court of Suffolk County.
Attorneys for Universal Environmanetal Consulting, Inc.:
John P. Tierney, Esq.
LAW OFFICE OF JOHN TIERNEY, LLC
175 Main Street, Suite 612
White Plains, New York 10601
Telephone: (973) 588-3050
Email: jay@jtlaw.org
About Atlantic & Pacific
Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea
Company, Inc., and its affiliates are one of the nation's oldest
leading supermarket and food retailers, operating approximately 300
supermarkets, beer, wine, and liquor stores, combination food and
drug stores, and limited assortment food stores across six
Northeastern states. The primary retail operations consist of
supermarkets operated under a variety of well known trade names, or
"banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food
Basics, The Food Emporium, Best Cellars, and A&P Liquors. The
Company employs approximately 28,500 employees, over 90% of whom
are members of one of twelve local unions whose members are
employed by the Debtors under the authority of 35 separate
collective bargaining agreements.
Then with 429 stores, A&P and its affiliates filed Chapter 11
petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010, and
in 2012 emerged from Chapter 11 bankruptcy as a privately held
company with 320 supermarkets.
On July 19, 2015, with 300 stores, A&P and 20 affiliated debtors
each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching
deals for the going concern sales of 120 stores. The Debtors are
seeking joint administration under Case No. 15-23007.
As of Feb. 28, 2015, the Debtors reported total assets of $1.6
billion and liabilities of $2.3 billion.
The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore
Group L.L.C., as investment banker, FTI Consulting, Inc., as
financial advisor, Hilco Real Estate, LLC, as real estate advisor,
and Prime Clerk LLC, as claims and noticing agent.
Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern
District of New York issued an order directing joint administration
of the Chapter 11 cases of The Great Atlantic & Pacific Tea
Company, Inc., and its debtor affiliates under Lead Case No.
15-23007.
AU CAFE: Hires Troutman Sanders LLP as Special Counsel
------------------------------------------------------
AU Cafe, Inc., seeks authorization from the U.S. Bankruptcy Court
for the Southern District of New York to employ Troutman Sanders
LLP as Special Counsel. The firm has agreed to represent and
advise the Debtor pursuant to Sec. 327(e) of the Bankruptcy Code in
connection with its application for a new sidewalk cafe.
The Debtor has operated a restaurant in New York at 1700 Broadway,
at the corner of 53rd street, since 1992. Since April 2015, the
restaurant has been closed for renovations, which are now
substantially complete. The Debtor expected to reopen in June 2016
as an American bistro restaurant, which will serve lunch and dinner
and provide an outdoor cafe.
The restaurant operated by the Debtor at the Leased Premises have
included sidewalk cafe. The Revenue generated at the Sidewalk Cafe
has been critical to the financial success of the restaurants that
have operated at the Leased Premises, and the Debtor believes that
the Sidewalk Cafe will be critical to the success of the New
Restaurant.
The Sidewalk Cafe previously operated by the Debtor, and as
contemplated for restaurant, sits on private property within the
footprint of the building commonly known as 1700 Broadway. The
Debtor's existing permit to operate the Sidewalk Cafe expires in
mid-September 2016. Thus, while the Debtor can (and intends to)
open the new restaurant before it has secured a renewal of the Cafe
Permit, the Debtor's long-term success is dependent on obtaining
that renewal so that there is no interruption in the operation of
the Sidewalk Cafe.
Troutman will be paid at these hourly rates:
Partners $1,075
Of Counsel $750
Assiciates $640
Paralegals $305
Troutman has agreed to accept a retainer of $10,000 for this
engagement, which would be paid from funds provided by Andrew
Silverman, the Debtor's shareholder, and not from funds provided by
the Debtor.
Troutman will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jeremiah Candreva, partner of Troutman Sanders LLP, assured the
Court that the firm does not represent any interest adverse to the
Debtors and their estates.
Troutman may be reached at:
Jeremiah Candreva
Troutman Sanders LLP
875 Third Street Avenue
New York, NY 10022
Phone: 212.704.6292
Fax: 212.704.5991
E-mail: jed.candreva@troutmansanders.com
About AU Cafe, Inc.
AU Cafe, Inc. filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y. Case No. 16-10682) on March 23, 2016. Robert Leslie
Rattet, Esq., at Herrieck, Feinstein, LLP as bankruptcy counsel.
B&L EQUIPMENT: PPL to Auction $650K of Non-Essential Equipment
--------------------------------------------------------------
B&L Equipment Rentals Inc., asks the U.S. Bankruptcy Court for the
Eastern District of California to authorize the sale of its
non-essential trucks, trailers and equipment ("Equipment") at a
public auction to be conducted by PPL Group ("PPL").
A hearing for the Motion is set for July 7, 2016 at 9 a.m. before
the Honorable Rene Lastreto, II, Courthouse 510, located at 19th
St., Bakersfield, CA.
The Debtor owns trucks, trailers, and equipment used in the
operation of its business. However, a number of the trucks,
trailers, and equipment are not necessary to the operation of its
business.
The Debtors believes that the market value of the Equipment is
$650,000 and that it will receive about the same amount from the
sale. The Equipment is subject to a "blanket lien" held by the
Bank of America, N.A. according to Proof of Claim filed Bank of
America on March 1, 2016. The Proof of Claim indicates that the
amount owed to Bank of America secured by lien against the
Equipment and other personal property owned by Debtor was $456,126
when Debtor filed its Chapter 11 case.
The Debtor explains that the sale of the Equipment by PPL through
public auction is best and most efficient way to sell it because it
will expose the Equipment to the marketplace to the maximum extent
possible, and can be completed in the shortest time possible.
PPL has guaranteed a payment of at least $400,000 to the Debtor
which will be paid after the Bankruptcy Court approves PPL's
employment by Debtor and authorizes PPL to sell the equipment per
terms of the "Advance Auction Agreement."
Proceeds received from the sale of the Equipment will be used by
the Debtor to pay the cost of sale including sales commissions and
auctioneer fees, and satisfy Bank of America's claim secured by the
lien against the Equipment, and pay expenses incurred by the Debtor
in the ordinary course of its business or pay other expenses and
claims in Debtor's Chapter 11 case as permitted by the law.
PPL's fee for the services rendered will be $50,000 from the first
$450,000 in gross proceeds from the sale of the Equipment, and
twenty percent of the gross proceeds from the sale of the Equipment
over and above $450,000.
Attorney for Debtor-in-Possession:
Leonard L. Welsh
LAW OFFICES OF LEONARD K. WELSH
4550 California Avenue, Fourth Floor
Bakersfield, CA 93309
Telephone: (661) 328-5328
About B&L Equipment Rentals
B&L Equipment Rentals, Inc., owns and operates an oilfield service
company. It operates its business in California, Texas, Colorado
and Nevada.
B&L Equipment Rentals filed a Chapter 11 bankruptcy petition
(Bankr. E.D. Cal. Case No. 15-14685) on Nov. 30, 2015. The
petition was signed by Lawrence F. Jenkins, the president. The
Debtor disclosed total assets of $17.2 million and total debt of
$5.02 million. The Law Office of Leonard K. Welsh serves as
counsel to the Debtor. The case has been assigned to Judge Rene
Lastreto II.
BAYTEX ENERGY: Egan-Jones Assigns 'CCC' Sr. Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company assigned CCC senior unsecured ratings on
debt issued by Baytex Energy Corp on June 27, 2016. EJR also
assigned a C rating on the Company's commercial paper.
Baytex Energy Corp. is a Calgary-based Canadian producer, developer
and explorer of oil and natural gas.
BEAR METALLURGICAL: Schedules Filing Deadline Extended to July 19
-----------------------------------------------------------------
The Hon. Jeffrey A. Deller of the U.S. Bankruptcy Court for the
Western District of Pennsylvania granted Gulf Chemical &
Metallurgical Corporation and its debtor-affiliates, an extension
of 35 days after the June 14, 2016 petition date, to and including
July 19, 2016, to file their schedules of assets and liabilities,
and statements of financial affairs.
About Bear Metallurgical
Bear Metallurgical Co. and Gulf Chemical & Metallurgical Corp.
filed chapter 11 petitions (Bankr. W. D. Pa. Lead Case No.
16-22192) on June 14, 2016.
The petitions were signed by Eric Caridroit, chief executive
officer. The cases are assigned to Judge Jeffery A. Deller.
At the time of the filing, Bear Metallurgical estimated assets and
debts to be between $1 million and $10 million. Gulf Chemical
estimated assets and debts to be between $100 million and $500
million.
BEUTLER'S LAWN: $157K Genesee County Property Sale Approved
-----------------------------------------------------------
Judge Daniel S. Opperman of the U.S. Bankruptcy Court for the
Eastern District of Michigan, Southern Division, authorized
Beutler's Lawn and Garden, Inc. and its affiliates to sell the
property commonly known as 5478 S. Saginaw Street, in Grand Blanc
Township, Genesee County, MI to Mr. [__] Hicks for $156,900.
FirstMerit Bank will receive its entire redemption amount, the
County of Genesee and any other real property tax creditor will
receive its full payment, the tax liens will be paid in accordance
with the amounts set forth in the motion and any all relevant
customary closing costs such as title insurance and commission to
the realtor previously approved by the Court may be paid from the
closing proceeds. The Debtor will file with the Court a proposed
closing statement prior to closing.
Beutler's Lawn and Garden is represented by:
Peter T. Mooney
SIMEN, FIGURA & PARKER, PLC
5206 Gateway Centre #200
Flint, MI 48507
Telephone: (810) 235-9000
E-mail: pmooney@sfplaw.com
About Beutler's Lawn and Garden
Beutlers Lawn and Garden, Inc. sought Chapter 11 protection (Bankr.
E.D. Mich. Case No. 14-33089) on Nov. 19, 2014 in Flint, Michigan.
The Debtor is represented by Peter T. Mooney, Esq., at Simen,
Figura & Parker. The Debtor estimated $100,000 to $500,000 in
assets and $100,000 to $500,000 in debt. The petition was signed
by Gregory Amy, the company president.
BFN OPERATIONS: Has Interim OK to Obtain $35MM DIP Loan
-------------------------------------------------------
Honorable Barbara J. Houser of the U.S. Bankruptcy Court for the
Northern District of Texas, Dallas Division, gave BFN Operations
LLC, BFN Properties LLC, BFN Holdings LLC, BFN Property Management
LLC, and BFN Investment Holdings LLC, interim authority to obtain
senior secured superpriority debtor-in-possession revolving credit
and security agreement with PNC Bank, N.A., as administrative agent
and lender, in a maximum amount of up to $35,000,000, and to use
the Pre-Petition Collateral, Cash Collateral, and the proceeds and
products thereof.
The Debtor is also given interim authority to use cash collateral
securing its prepetition indebtedness.
After entry of the Interim Order, the DIP Facility will consist of
a revolving credit line of up to $35,000,000, subject to periodic
funding limits established by the Budget, and, upon entry of the
Final Order, a conversion of the outstanding Pre-Petition Credit
Agreement Revolving Advance amounts into postpetition obligations
under the DIP Facility.
The Debtors will pay to the DIP Agent the fees and other charges
payable in the amounts and at the times separately set forth in DIP
Credit Agreement, which will be substantially similar to the fees
payable under the Pre-Petition Credit Agreement and other
Pre-Petition Loan Documents, in accordance with the Budget. The
Debtors also agree to pay the DIP Agent a DIP Commitment Fee of
$100,000.
Interest will accrue on all outstanding advances under the DIP
Facility at a per annum floating rate equal to the sum of (a) the
Alternate Base Rate (as defined in the Pre-Petition Credit
Agreement), plus (b) 5.0%. Effective immediately upon the
occurrence of an Event of Default unless waived in writing by the
DIP Agent at its sole discretion, interest on the outstanding loans
under the DIP Facility will accrue at a rate that is 2% per annum
in excess of the Non-Default Interest Rate.
Proceeds of the DIP Facility will be used solely for the following
purposes (and to the extent identified in the Budget): (a) to fund
post-petition operating expenses and working-capital needs of the
Debtors, (b) to pay interest, fees and expenses to the DIP Agent,
and fees and expenses to the Term Loan Agent, (c) to fund fees and
expenses incurred in connection with the 363 Sale, (d) to pay
permitted pre-petition claim payments and adequate protection
payments approved by DIP Agent and Term Loan Agent, (e) to pay
Professional Fees and expenses provided for in the Budget, and (f)
to pay certain other costs and expenses of administration of the
Chapter 11 Cases.
As adequate protection and in consideration for being primed by the
DIP Lender's claims and liens, the Pre-Petition Lenders: (a) will
receive a claim having priority over any and all expenses, subject
to allowed claims paid under the Carve-Out and super-priority
administrative claims of the DIP Agent and DIP Lender granted in
respect of the DIP Facility, and (b) shall have valid, binding,
enforceable and perfected replacement liens in all DIP Collateral,
subject to the DIP Liens and Carve-Out, in each case equal to the
sum of the aggregate diminution in the value of their respective
liens upon their pre-petition collateral.
In addition, the Debtors will make the following payments, in cash:
(a) the reasonable, out-of-pocket fees and expenses of the Term
Loan Agent, including, but not limited to, the Term Loan Agent’s
professionals, (b) Interest when due on the Fourth Amendment Term
Loan, which will be paid to the Term Loan Agent for the benefit of
the lenders under the Fourth Amendment Term Loan.
The Motion is scheduled for a final hearing on July 25, 2016, and
any objections thereto are due on July 12.
A full-text copy of the Interim DIP Order dated June 22, 2016 is
available at https://is.gd/xBcboq
Proposed Counsel to BFN Operations LLC, et. al.:
Holland N. O’Neil, Esq.
Marcus A. Helt, Esq.
Michael S. Haynes, Esq.
Mark C. Moore, Esq.
Matthew J. Pyeatt, Esq.
GARDERE WYNNE SEWELL LLP
3000 Thanksgiving Tower
1601 Elm Street
Dallas, TX 75201-4761
Telephone: (214) 999-3000
Facsimile: (214) 999-4667
Email: honeil@gardere.com
mhelt@gardere.com
mhaynes@gardere.com
About BFN Operations
BFN Operations LLC and four of its subsidiaries each filed a
voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Tex. Lead Case No. 16-32435) on June 17, 2016, estimating
assets and liabilities in the range of $100 million to $500
million.
Operating under the name Zelenka Farms, the Debtors are wholesale
growers and distributors of container-grown shrubs, trees,
perennials, roses, and groundcovers. Zelenka was founded in 1993
under the name The Berry Family of Nurseries. Zelenka employs
approximately 1,600 people to operate its six facilities totaling
3,577 acres across the key growing regions in the United States.
Zelenka owns farms in Oregon and the Vaughn Lane farm in Tennessee,
and leases farms in Oklahoma, Michigan, North Carolina, and the
Short Mountain farm in Tennessee. With approximately $130 million
in annual sales, Zelenka claims to represent approximately six
percent of the $2.2 billion wholesale nursery products industry and
is one of only five competitors exceeding $100 million in sales.
The Debtors have engaged Gardere Wynne Sewell LLP as counsel, CDG
Group, LLC as chief restructuring officer provider, Imperial
Capital, LLC as investment banker and Upshot Services LLC as
noticing, claims and balloting agent.
Judge Barbara J. Houser is assigned to the cases.
BFN OPERATIONS: Hires CDG's Ek as Chief Restructuring Officer
-------------------------------------------------------------
BFN Operations, LLC and its debtor-affiliates seek permission from
the U.S. Bankruptcy Court for the Northern District of Texas to
employ Eric W. Ek of CDG Group, LLC as their Chief Restructuring
Officer.
According to the Debtors, they need CDG to, among others, make Mr.
Ek available to serve as the Debtors' CEO and CRO, reporting
directly to the Companies' Board of Directors with the
responsibilities and authority as is commensurate with the said
positions.
The Debtors require Mr. Ek with the assistance of CDG to:
a. evaluate the Debtors' overall financial and operational
conditions;
b. assess current liquidity and cash floe needs;
c. develop an orderly plan to maximize recoveries to
creditors, including evaluating restructuring and sales
alternatives;
d. assist the Companies in connection with any Chapter 11
filing preparation, reporting, negotiations, and other tasks
related to the filing and ongoing duties of a
debtor-in-possession;
e. provide other temporary employees to assist the
restructuring efforts, to the extent needed and agreed upon by the
Board of Directors; and
f. perform such other services and analyses related to
improving the Debtors' operations as required or as become
consistent with the foregoing items as the parties shall agree.
The Debtors agreed to compensate CDG through a monthly work fee of
$175,000, until the earlier of the completion of the restructuring
or the termination of CDG's engagement.
The Debtors agreed to provide CDG a retainer in the amount of
$100,000.
In the 90 days prior to the Petition Date, CDG received retainers
and payments totalling to $681,683.03 in the aggregate for the
services performed for the Debtors and reimbursable expenses
incurred in connection with the performance of those services. Of
these amounts, $187,500 remained as a credit balance as of the
Petition Date in favor of the Debtors for future professional
services to performed and expenses to be incurred.
CDG will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Eric W. Ek, principal of CDG Group, LLC, assured the Court that the
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code and does not represent any interest
adverse to the Debtors and their estates.
CDG may be reached at:
Eric W. Ek
CDG Group, LLC
650 Fifth Avenue, 20th Floor
New York, NY 10019
Telephone: +1.213.364.8616
Fax: +1.818.952.3940
E-mail: eek@cdggroup.com
About BFN Operations
BFN Operations LLC and four of its subsidiaries each filed
avoluntary petition under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Tex. Lead Case No. 16-32435) on June 17, 2016, estimating
assets and liabilities in the range of $100 million to $500
million.
Operating under the name Zelenka Farms, the Debtors are wholesale
growers and distributors of container-grown shrubs, trees,
perennials, roses, and groundcovers. Zelenka was founded in 1993
under the name The Berry Family of Nurseries. Zelenka employs
approximately 1,600 people to operate its six facilities totaling
3,577 acres across the key growing regions in the United States.
Zelenka owns farms in Oregon and the Vaughn Lane farm in Tennessee,
and leases farms in Oklahoma, Michigan, North Carolina, and the
Short Mountain farm in Tennessee. With approximately $130
million in annual sales, Zelenka claims to represent approximately
six percent of the $2.2 billion wholesale nursery products industry
and is one of only five competitors exceeding $100 million in
sales.
The Debtors have engaged Gardere Wynne Sewell LLP as counsel, CDG
Group, LLC as chief restructuring officer provider, Imperial
Capital, LLC as investment banker and Upshot Services LLC as
noticing, claims and balloting agent.
Judge Barbara J. Houser is assigned to the cases.
BFN OPERATIONS: Hires Gardere Wynne as Counsel
----------------------------------------------
BFN Operations, LLC and its debtor-affiliates seek permission from
the U.S. Bankruptcy Court for the Northern District of Texas to
employ Gardere Wynne Sewell LLP as counsel to the Debtors and the
Debtors-in-Possession.
The Debtors require Gardere to:
a. advise the Debtors of their powers and duties in the
management of their business;
b. attend meetings and negotiate with representatives of
creditors and other parties in interest;
c. assist the Debtors in the preparation of all administrative
documents required to be filed or prepared herein, and to prepare,
on behalf of the Debtors, all necessary applications, motions,
answers, responses, orders, reports and other legal documents
required;
d. assist the Debtors in obtaining Court approval for use of
cash collateral or debtors-in-possession financing and other
negotiations with secured creditors;
e. take such action as is necessary to preserve and protect
the Debtor's assets and interest therein, including prosecuting
actions on the Debtors' behalf, defending any action commenced
against the Debtors, and representing the Debtors' interest in
negotiations concerning litigation in which the Debtors are
involved, including objections to claims filed against the estate;
f. advise the Debtors in connection with any potential sale of
assets;
g. assist the Debtors in the formulation of a disclosure
statement and in the formulation, confirmation, and consummation of
a Chapter 11 plan;
h. appear before the Court, any appellate courts and the
United States Trustee and protect the interest of the Debtors and
the assets in their estates before such courts and the United
States Trustee;
i. consult with the Debtors regarding tax matters; and
j. perform any and all other legal services that may be
necessary to protect the rights and interest of the Debtors and
their estates in this proceeding and any actions hereafter
commenced in the Chapter 11 Cases.
Gardere will be paid at these hourly rates:
Holland N. O'Neil, partner $825
Marcus A. Helt, partner $635
Michael S. Haynes, partner $590
Mark C. Moore, associate $400
Matthew J. Pyeatt, associate $330
Gardere has been compensated for services provided to the Debtors
prior to the Petition Date in the ordinary course in th amount of
$302,176.58. Gardere held a retainer in the amount of $150,000 for
its services.
Gardere will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Holland N. O'Neil, a partner with the law firm of Gardere Wynne
Sewell LLP, assured the Court that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code and does not represent any interest adverse to the Debtors and
their estates.
Gardere may be reached at:
Holland N. O'Neil, Esq.
Marcus A. Helt, Esq.
Michael S. Haynes, Esq.
Mark C. Moore, Esq.
Matthew J. Pyeatt, Esq.
Gardere Wynne Sewell LLP
1601 Elm Street, Suite 3000
Dallas, TX 75201
Telephone: (214)999-3000
Facsimile: (214)999-4667
E-mail: honeil@gardere.com
mhelt@gardere.com
mhaynes@gardere.com
About BFN Operations
BFN Operations LLC and four of its subsidiaries each filed
avoluntary petition under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Tex. Lead Case No. 16-32435) on June 17, 2016, estimating
assets and liabilities in the range of $100 million to $500
million.
Operating under the name Zelenka Farms, the Debtors are wholesale
growers and distributors of container-grown shrubs, trees,
perennials, roses, and groundcovers. Zelenka was founded in 1993
under the name The Berry Family of Nurseries. Zelenka employs
approximately 1,600 people to operate its six facilities totaling
3,577 acres across the key growing regions in the United States.
Zelenka owns farms in Oregon and the Vaughn Lane farm in Tennessee,
and leases farms in Oklahoma, Michigan, North Carolina, and the
Short Mountain farm in Tennessee. With approximately $130 million
in annual sales, Zelenka claims to represent approximately six
percent of the $2.2 billion wholesale nursery products industry and
is one of only five competitors exceeding $100 million in sales.
The Debtors have engaged Gardere Wynne Sewell LLP as counsel, CDG
Group, LLC as chief restructuring officer provider, Imperial
Capital, LLC as investment banker and Upshot Services LLC as
noticing, claims and balloting agent.
Judge Barbara J. Houser is assigned to the cases.
BFN OPERATIONS: Hires Imperial Capital as Investment Banker
-----------------------------------------------------------
BFN Operations, LLC and its debtor-affiliates seek permission from
the U.S. Bankruptcy Court for the Northern District of Texas to
employ Imperial Capital, LLC, as investment banker.
The Debtors require Imperial to:
a. analyse the Debtors' business operations, properties,
financial condition, competition, forecast, prospects and
management;
b. assist the Debtors in the preparation of solicitation
materials with respect to the Transaction and the Debtors (the
"Offering Materials");
c. identify and contact selected qualified buyers after
approval in writing by the Debtors (such approved and contacted
qualified buyers, the "Buyers") for the Transaction and furnishing
them, on behalf of the Debtors, with copies of Offering Materials
only after such Buyers have executed a Debtor-approved
confidentiality agreement;
d. assist the Debtors in arranging for potential Buyers to
conduct due diligence investigations;
e. advise the Debtors on a proposed purchase price and from of
consideration for the Transaction;
f. assist the Debtors in developing, evaluating, structuring
and negotiating the terms and conditions of a potential
Transaction;
g. assist the Debtors in developing, evaluating, structuring
and negotiating the terms and conditions of a potential Financing;
h. assist the Debtors in the preparation of solicitation
materials with respect to the Financing, any securities to be
issued in connection with the Financing and the Debtors (such
solicitation materials, including, without limitation, all
exhibits, amendments and supplements thereto, the "Financing
Offering Materials");
i. analysis of the Debtors' business, operations, properties,
financial condition, competition, forecast, prospects and
management.
j. identify and contact selected qualified purchasers after
approval in writing by the Debtors (such approval and contacted
qualified purchasers, the "Purchasers") to participate in the
financing and furnishing them, on behalf of the Debtors, with
copies of Financing Offering Materials only after such Purchasers
have executed a Debtor-approved confidentiality agreement; and
k. provide other financial advisory services with respect to
the Debtors' financial issues as may from time to time be agreed
upon between the Debtors and Imperial. The duties of Imperial shall
not include any legal, tax or accounting advice or services, which
shall be procured by the Debtors at their own expenses. Nothing
contained herein shall constitute a commitment on the part of
Imperial to purchase any of the securities comprising or issued in
connection with the Transaction or Finance. For the avoidance of
doubt, Imperial agrees to diligently and simultaneously pursue both
a Transactional and a Financing, and agrees to use commercially
reasonable efforts to devote a substantially equal amount of time
and effort to the pursuit of each.
The Debtors agreed to pay Imperial the following compensation:
-- RETAINER FEE. To engage Imperial to perform the services,
upon signing this Agreement, the Debtors shall pay Imperial a
monthly non- refundable retainer fee ("Retainer Fee") in the amount
of $50,000. Commencing on the fourth month of the engagement 50% of
monthly retainer shall be credited against the payment of any
Transaction Fee or Financing Fee.
-- TRANSACTION FEE. In the event a Transaction is consummated
during the Term of this Agreement with a Buyer (or any definitive,
written agreement is entered into with a Buyer during such period
which subsequently results in a consummated Transaction), the
Debtors agrees to pay Imperial a fee ("Transaction Fee") based upon
the total value of all consideration received directly or
indirectly by the Debtors and/or their shareholders or other owners
(including amounts paid into escrow) from the Buyer as a result of
such Transaction. A Transaction shall be deemed to have been
consummated upon the earliest of any of the following events to
occur: the transfer of more than 50% of the outstanding equity or
substantially all of the assets of the Debtors to one or more
unaffiliated third parties, including, without limitation, by means
of a merger, consolidation, or any other business combination, or
any transaction structured to substantially achieve the same
result. Transaction Consideration shall include the following,
without duplication: cash or cash equivalents; stock or other
securities (including amounts paid or payable in respect of
convertible securities, options or similar rights, whether or not
vested); promissory notes or other debt instruments; indebtedness
for borrowed money (including capitalized lease and preferred stock
obligations) assumed, retired, defeased or repaid or remains
outstanding after the transaction; earnouts; royalties; real
property, personal property or intellectual property sold or
leased; employment or consulting agreements in excess of fair
market rates; non-competition agreements; and management
agreements. In the event that the consideration in a Transaction is
paid in whole or in part in the form of securities or other assets,
the value of such securities or other assets, for the purposes of
calculating the Transaction Fee, shall be the fair market value
thereof, as the parties hereto shall mutually agree, on the day
prior to the consummation of the Transaction; provided, however,
that, if such consideration includes securities with an existing
public trading market, the value thereof shall be determined by the
average closing price for such securities over the last 10 trading
days immediately prior to such consummation. Such Transaction Fee
shall be calculated based on the greater of:
a. $500,000 (the "Minimum Fee"); or
b. 2.0% of Transaction Consideration.
The Transaction Fee will be paid by the Debtors, and received in
full by Imperial, concurrently with the closing of the Transaction
(as part of the closing instructions) by bank wire transfer of
immediately available funds to an account specified by Imperial.
The Debtors may defer payment of any portion of the Transaction Fee
which is in excess of the Minimum Fee and is attributable to
Transaction Consideration consisting of a future earnout, royalty,
or the like (i.e., financial instruments or agreements, the values
of which at the time of the closing cannot be determined because
they are based on future performance or earnings or other uncertain
future occurrences) or amounts paid into escrow, in which case such
portion of the Transaction Fee shall be paid to Imperial within 3
days after the Debtors receive the related Transaction
Consideration. If all or any portion of the Transaction
Consideration is of a determined amount but is to be paid over time
(excluding interest bearing notes), then the portion of the
Transaction Fee attributable thereto shall be payable upon
consummation of the Transaction, calculated based on the net
present value of such Transaction Consideration using an annual
discount rate of 8%.
-- FINANCING FEE. In the event a Financing is consummated
during the Term of this Agreement with a Purchaser (or any
definitive, written agreement is entered into with a Purchaser
during such period which subsequently results in a consummated
Financing), the Debtors agree to pay Imperial a fee (the "Financing
Fee") payable out of the proceeds of the Financing by wire directly
from the Financing source equal to the greater of:
a. $500,000 (the "Minimum Fee"); or
b. 1.5% of the face amount of any first lien debt
securities sold or arranged as part of the Financing; or
c. 2.25% of the face amount of any junior debt
securities sold or arranged as part of the Financing.
Imperial will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Marc Bilbao, Managing Director of Investment Banking for Imperial
Capital, LLC, assured the Court that the firm does not represent
any interest adverse to the Debtors and their estates.
Imperial may be reached at:
Marc Bilbao
Imperial Capital, LLC
2000 Avenue of the Stars, 9th Floor South
Los Angeles, CA 90067
Tel: (310)246-3795
Fax: (310)777-3000
E-mail: mbilbao@imperialcapital.com
About BFN Operations
BFN Operations LLC and four of its subsidiaries each filed
avoluntary petition under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Tex. Lead Case No. 16-32435) on June 17, 2016, estimating
assets and liabilities in the range of $100 million to $500
million.
Operating under the name Zelenka Farms, the Debtors are wholesale
growers and distributors of container-grown shrubs, trees,
perennials, roses, and groundcovers. Zelenka was founded in 1993
under the name The Berry Family of Nurseries. Zelenka employs
approximately 1,600 people to operate its six facilities totaling
3,577 acres across the key growing regions in the United States.
Zelenka owns farms in Oregon and the Vaughn Lane farm in Tennessee,
and leases farms in Oklahoma, Michigan, North Carolina, and the
Short Mountain farm in Tennessee. With approximately $130 million
in annual sales, Zelenka claims to represent approximately six
percent of the $2.2 billion wholesale nursery products industry and
is one of only five competitors exceeding $100 million in sales.
The Debtors have engaged Gardere Wynne Sewell LLP as counsel, CDG
Group, LLC as chief restructuring officer provider, Imperial
Capital, LLC as investment banker and Upshot Services LLC as
noticing, claims and balloting agent.
Judge Barbara J. Houser is assigned to the cases.
BFN OPERATIONS: Hires UpShot Services as Claims Agent
-----------------------------------------------------
BFN Operations, LLC and its debtor-affiliates seek permission from
the U.S. Bankruptcy Court for the Northern District of Texas to
employ UpShot Services LLC as Noticing, Claims and Balloting
Agent.
The Debtors require UpShot to:
a. prepare and serve required notices and documents in the
Bankruptcy Case in accordance with the Bankruptcy Code and the
Bankruptcy Rule in the form and manner directed by the Debtors
and/or the Court, including any notices, orders, pleadings,
publications and other documents as the Debtors or Court may deem
necessary or appropriate for an orderly administration of the
Bankruptcy Case;
b. maintain an official copy of the Debtors' Schedules of
Assets & Liabilities and Statement of Financial Affairs (together,
the "Schedules") listing the Debtors' known creditors and the
amounts owed thereto;
c. all notices, motions, orders or other pleadings or
documents served, prepare and file or caused to be files with the
Clerk an affidavit or certificate of service within seven business
days of service which includes (i) either a copy of the notice
served or the docket numbers(s) and title(s) of the pleading(s)
served, (ii) a list of persons to whom it was mailed (in
alphabetical order) with their addresses, (iii) the manner of
service, and (iv) the date served;
d. perform and assist the Debtors and their retained
professionals which such other tasks, duties and projects it deems
necessary to the overall operation of the Bankruptcy Cases; and
e. assist in the dissemination of information to the public
and respond to requests for administrative information regarding
the case as directed by the Debtors or the Court, including through
the use of cases website and/or call centre.
UpShot Services will be paid at these hourly rate:
Case Manager $180
Case Consultant $130
IT Manager $90
Case Assistant $60
Clerical $30
The Debtors provided the UpShot a retainer in the amount of
$20,000
UpShot will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Travis Vandell, managing director of UpShot Services LLC, assured
the Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
UpShot may be reached at:
Travis Vandell
UpShot Services LLC
8269 E. 23rd Avenue, Suite 275
Denver, CO 80238
Phone: (720)457-3304
E-mail: tvandell@upshotservices.com
About BFN Operations
BFN Operations LLC and four of its subsidiaries each filed a
voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Tex. Lead Case No. 16-32435) on June 17, 2016, estimating
assets and liabilities in the range of $100 million to $500
million.
Operating under the name Zelenka Farms, the Debtors are wholesale
growers and distributors of container-grown shrubs, trees,
perennials, roses, and groundcovers. Zelenka was founded in 1993
under the name The Berry Family of Nurseries. Zelenka employs
approximately 1,600 people to operate its six facilities totaling
3,577 acres across the key growing regions in the United States.
Zelenka owns farms in Oregon and the Vaughn Lane farm in Tennessee,
and leases farms in Oklahoma, Michigan, North Carolina, and the
Short Mountain farm in Tennessee. With approximately $130
million in annual sales, Zelenka claims to represent approximately
six percent of the $2.2 billion wholesale nursery products industry
and is one of only five competitors exceeding $100 million in
sales.
The Debtors have engaged Gardere Wynne Sewell LLP as counsel, CDG
Group, LLC as chief restructuring officer provider, Imperial
Capital, LLC as investment banker and Upshot Services LLC as
noticing, claims and balloting agent.
Judge Barbara J. Houser is assigned to the cases.
BON-TON STORES: Egan-Jones Lowers FC Sr. Unsecured Rating to CCC-
-----------------------------------------------------------------
Egan-Jones Ratings Company downgraded the foreign currency senior
unsecured rating on debt issued by The Bon-Ton Stores Inc to CCC-
from CCC on June 28, 2016.
Bon-Ton Stores, Inc., is a regional department store company based
in York, Pennsylvania, chiefly operating 275 stores, including 11
furniture galleries, in 26 states throughout the northern United
States.
BONAVISTA ENERGY: Egan-Jones Assigns CCC Sr. Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company assigned CCC senior unsecured ratings on
debt issued by Bonavista Energy Corp on June 24, 2016. EJR also
assigned a C rating on the Company's commercial paper rating.
Bonavista Energy Corporation engages in the acquisition,
exploration, development, and production of oil and natural gas
properties and assets in Western Canada.
CAMP-RIGBY: Seeks to Hire Johnston Law as Legal Counsel
-------------------------------------------------------
Camp-Rigby Roofing-Sheetmetal Contractors, Inc. seeks approval from
the U.S. Bankruptcy Court for the Middle District of Florida to
hire Johnston Law, PLLC as its legal counsel.
The Debtor tapped the firm to provide these services in connection
with its Chapter 11 case:
(a) provide legal advice with respect to its rights, duties
and powers;
(b) preparing pleadings and applications;
(c) participate in the formulation of a plan of
reorganization;
(d) assist the Debtor in considering and requesting the
appointment of a trustee or examiner, should such action
become necessary;
(e) consult the U.S. trustee concerning the administration
of the Debtor's estate; and
(f) represent the Debtor in hearings and other judicial
proceedings.
The firm received a retainer in the amount of $2,000 prior to the
Debtor's bankruptcy filing.
Richard Johnston Jr., Esq., at Johnston Law, disclosed in a court
filing that no attorney at his firm has any connection with the
Debtor and that he does not hold any interest adverse to the
Debtor's estate.
The firm can be reached through:
Richard Johnston, Jr.
Johnston Law, PLLC
7370 College Parkway, Suite 207
Fort Myers, FL 33907
Telephone: 239-600-6200
Facsimile: 877-727-4513
richard@richardjohnstonlaw.com
About Camp-Rigby
Camp-Rigby Roofing-Sheetmetal Contractors, Inc. sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. M. D. Fla. Case No.
16-05366) on June 22, 2016.
CELTIC CONCEPTS: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------
The Office of the U.S. Trustee disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Celtic Concepts, Ltd.
Celtic Concepts, Ltd. sought protection under Chapter 11 of the
Bankruptcy Code (Bank. S. D. Texas Case No. 16-32610) on May 24,
2016.
The petition was signed by Brian Young, president of Ceana, LLC
general partner. The case is assigned to Judge Marvin Isgur.
The Debtor estimated assets of $100,000 to $500,000 and debts of $1
million to $10 million.
CHANGE HEALTHCARE: S&P Puts 'B' Rating on Senior Secured Debt
-------------------------------------------------------------
S&P Global Ratings placed its 'B' rating on Nashville, Tenn.-based
Change Healthcare Holdings Inc. (formerly Emdeon Inc.), as well as
the 'B+' rating on the company's senior secured debt and the 'CCC+'
rating on the company's senior unsecured notes, on CreditWatch with
developing implications.
The CreditWatch placement is based on Change Healthcare's June 28,
2016 announcement of its combination with McKesson Technology
Solutions, thereby creating a much larger company, with close to
$3.4 billion in pro forma revenues for the year ended March 31,
2016. The proposed transaction will go through an antitrust review
and is expected to close in the first half of 2017.
"We will monitor developments related to the transaction, and will
resolve the CreditWatch listing when we have additional clarity
around the combined entity's business risk profile, final capital
structure, and credit metrics," said S&P Global Ratings credit
analyst Minesh Shilotri.
CHARTER SCHOOL: Case Summary & 10 Unsecured Creditors
-----------------------------------------------------
Debtor: Charter School Development Services, Inc.
9111 Phillips Grove Terrace
Orlando, FL 32836
Case No.: 16-04312
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: June 29, 2016
Court: United States Bankruptcy Court
Middle District of Florida (Orlando)
Debtor's Counsel: Michael A Nardella, Esq.
NARDELLA & NARDELLA, PLLC
250 East Colonial Drive, Ste 102
Orlando, FL 32801
Tel: 407-966-2680
E-mail: mnardella@nardellalaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Vince V. Desai, president.
A copy of the Debtor's list of its 20 largest unsecured creditors
-- containing just 20 entries -- is available for free at
http://bankrupt.com/misc/flmb16-04312.pdf
CHIEFTAIN STEEL: Committee Taps Phoenix as Financial Advisor
------------------------------------------------------------
The official committee of unsecured creditors of Chieftain Steel,
LLC seeks approval from the U.S. Bankruptcy Court for the Western
District of Kentucky to hire Phoenix Management Services, LLC as
its financial advisor.
The committee tapped the firm to provide these services in
connection with the Debtor's Chapter 11 case:
(a) investigating the Debtor's financial situation both
before and after its bankruptcy filing;
(b) evaluating and investigating causes of action belonging
to the Debtor's bankruptcy estate;
(c) considering the feasibility of any plan of
reorganization;
(d) reviewing and evaluating the Debtor's financial reports;
(e) monitoring the Debtor's operating performance;
(f) developing analysis and providing testimony in support of
court motions;
(g) creditor committee advisory services; and
(h) expert witness testimony.
The Phoenix personnel who will be primarily responsible for
advising the committee bill their time at these hourly rates:
Michael Jacoby $575
Mark Karbiner $395
Mark Karagelian $195
Michael Jacoby, senior managing director of Phoenix, disclosed in a
court filing that the firm does not represent any adverse interest
that would prevent it from representing the committee.
The firm can be reached through:
Michael E. Jacoby
Phoenix Management Services, LLC
110 Commons Court
Chadds Ford, PA 19317
Telephone: (484) 841-6808
Facsimile: (610) 358-9377
Email: mjacoby@phoenixmanagement.com
About Chieftain Steel
Chieftain Steel, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Ky. Case No. 16-10407) on May 2, 2016.
The Debtor is represented by Constance G. Grayson, Esq., at
Gullette & Grayson, PSC.
CIRCLE B: Hires Brannen Firm as Attorney
----------------------------------------
Circle B, Inc., seeks authorization from the U.S. Bankruptcy Court
for the Northern District of Georgia to employ Joseph Chad Brannen
of The Brannen Firm LLC as attorney.
The Debtor requires Brannen Firm to:
a. advise Debtor with respect to its rights, powers, duties
and obligation as Debtor-in-Possession in the administration of
this case, the operation of its business, and the management of its
property;
b. prepare pleadings, applications, and conduct examinations
incidental to administration;
c. advise and represent applicant in connection with all
applications, motions, or complaints for reclamation, adequate
protection, sequestration, relief form stays, appointment of a
trustee or examiner, and all other similar matters;
d. develop the relationship of the status of
Debtor-in-Possession to the claims of creditors in these
proceedings;
e. advise and assist the Debtor-in-Possession in the
formulation and presentation of a Plan pursuant to Chapter 11 of
the Bankruptcy Code and concerning any and all matters relating
thereto; and
f. perform any and all other legal services incident and
necessary herein.
Brannen Firm will be paid at these hourly rates:
Joseph Chad Brannen $350
Paralegal/Support Staff $75
Joseph Chad Brannen, partner in the law firm of The Brannen Firm,
LLC, assured the Court that his firm does not represent any
interest adverse to the Debtors and their estates.
Brannen Firm can be reached at:
Joseph Chad Brannen, Esq.
The Brannen Firm, LLC
7147 Jonesboro Road, Suite G
Morrow, GA 30260
Phone: (770)474-0847
About Circle B., Inc.
Circle B., Inc. filed a Chapter 11 bankruptcy petition (Bankr. N.D.
Ga. Case No. 16-59863) on June 6, 2016. Joseph Chad Brannen, Esq.,
at Brannen Law Group, P.C. as bankruptcy counsel.
CLASSIC COMMUNITIES: Files Schedules of Assets and Liabilities
--------------------------------------------------------------
Classic Communities Corporation filed with the U.S. Bankruptcy
Court for the Middle District of Pennsylvania its schedules of
assets liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- -------------- --------------
A. Real Property $ 7,959,063.00
B. Personal Property $ 236,751.28
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $ 7,050,000.61
E. Creditors Holding
Unsecured Priority
Claims $ 206,677.52
F. Creditors Holding
Unsecured Non-Priority
Claims $19,438,556.36
-------------- --------------
Total $ 8,195,814.28 $26,695,234.49
A copy of the schedules is available for free at:
https://is.gd/IihmDu
About Classic Communities
Classic Communities Corporation filed a Chapter 11 bankruptcy
petition (Bankr. M.D. Pa. Case No. 16-02022) on May 10, 2016. The
petition was signed by Douglas Halbert, president. The Debtor
estimated assets and liabilities in the range of $10 million and
debts of up to $50 million. Judge Mary D. France is the case judge.
COMDISCO INC: Final Decree Hearing Set for July 12
--------------------------------------------------
The Hon. Jack B. Schmeterer of the U.S. Bankruptcy Court for the
Northern District of Illinois will hold a hearing on July 12, 2016,
at 10:00 a.m. (prevailing Central time), Everett McKinley Dirsken
Courthouse, 219 South Dearborn Street, Chicago, Illinois, to
approve the request of Comdisco Inc. et al. for final decree
closing their Chapter 11 bankruptcy cases.
Copies of the motion may be obtained free of charge by sending a
request by email to Comdisco@loganandco.com.
As reported by the Troubled Company Reporter by June 24, 2016,
Comdisco Holding Company, Inc., and Comdisco, Inc., filed with the
U.S. Bankruptcy Court for the Northern District of Illinois Eastern
Division a motion for the entry of a final decree (i) closing the
chapter 11 case of Comdisco, Inc.; (ii) authorizing the Company to
complete certain outstanding administrative tasks following entry
of the Final Decree; (iii) approving the proposed manner of
disposing of and disbursing remaining Company assets; (iv)
confirming the exculpation of the Plan Implementation Parties (as
defined in the Motion); (v) terminating the services of the claims
and noticing agent and disbursing agent; and (vi) retaining
jurisdiction to enforce or interpret its own orders pertaining to
the chapter 11 cases including, but not limited to, the Plan and
the Final Decree. In support of this Motion, the Company has filed
a Final Report and Accounting of the Comdisco Disbursing Agent
attached as Exhibit B to the Motion.
About Comdisco
Comdisco emerged from Chapter 11 bankruptcy proceedings on August
12, 2002. The purpose of reorganized Comdisco is to sell, collect
or otherwise reduce to money in an orderly manner the remaining
assets of the corporation. Pursuant to the Plan and restrictions
contained in its certificate of incorporation, Comdisco is
specifically prohibited from engaging in any business activities
inconsistent with its limited business purpose. Accordingly,
Comdisco has substantially reduced all of its assets to cash and
expects to make a final distribution of the remaining operating
cash (net of amounts withheld for estimated liabilities) to holders
of its common stock and contingent distribution rights in the
manner and priorities set forth in the Plan and Motion. Once all
the administrative tasks as detailed in the Motion are completed,
the company will cease operations. The Company filed on August 12,
2004 a Certificate of Dissolution with the Secretary of State of
the State of Delaware to formally extinguish Comdisco Holding
Company, Inc.'s corporate existence with the State of Delaware
except for the purpose of completing the wind-down contemplated by
the Plan. Under the Plan, Comdisco was charged with, and has been,
liquidating its assets.
COMMERCE PARK: Superior Court Partly Affirms "Tri-Town" Suit Ruling
-------------------------------------------------------------------
The Supreme Court of Rhode Island affirmed in part and vacated in
part the judgments of the Superior Court in the case captioned
Tri-Town Construction Company, Inc., v. Commerce Park Associates
12, LLC et al., Nos. 2015-22-Appeal, 2015-146-Appeal (R.I.).
The defendants, Commerce Park Associates 12, LLC (CPA) and Nicholas
E. Cambio argued that the judgment of the Superior Court in favor
of the plaintiff, Tri-Town Construction Company, Inc., was infected
with four errors. The defendants argued that the trial justice
erred when he granted summary judgment in favor of the plaintiff's
claims for (1) breach of a promissory note and (2) breach of a
guaranty of the note. CPA also challenged (3) the trial justice's
dismissal of its counterclaim pursuant to Rule 12(b)(6) of the
Superior Court Rules of Civil Procedure for payments made to the
plaintiff and for various expenses it incurred. Finally, the
defendants contended that the trial justice erred by (4) granting
the plaintiff's motion for attorney's fees.
The Supreme Court of Rhode Island affirmed the Superior Court's
decision to grant summary judgment in favor of the plaintiff on
claims of the breach of promissory note and breach of guaranty, as
well as its dismissal of CPA's counterclaim. The Supreme Court,
however, reversed the decision to award Tri-Town attorney's fees
without considering the testimony or affidavit of independent
counsel.
A full-text copy of the Supreme Court's June 22, 2016 opinion is
available at https://is.gd/u5lniB from Leagle.com.
Plaintiff is represented by:
Ryan J. Lutrario, Esq.
Vincent A. Indeglia, Esq.
The Summit East, Suite 320
300 Centerville Road
Warwick, RI 02886
Tel: (401)886-9240
Email: vincent@indeglialaw.com
Defendants are represented by:
Richard G. Riendeau, Esq.
41 Mendon Ave.
Pawtucket, RI 02861
CONGREGATION OF UNITY: Case Summary & Unsecured Creditor
--------------------------------------------------------
Debtor: The Congregation of Unity, Inc.
PO Box 546
Edneyville, NC 28727
Case No.: 16-10260
Chapter 11 Petition Date: June 29, 2016
Court: United States Bankruptcy Court
Western District of North Carolina (Asheville)
Judge: Hon. George R. Hodges
Debtor's Counsel: D. Rodney Kight, Jr., Esq.
KIGHT LAW OFFICE
56 College Street, Suite 302
Asheville, NC 28801
Tel: (828) 255-9881
Fax: (828) 255-9886
E-mail: info@kightlaw.com
Total Assets: $1.72 million
Total Liabilities: $579,317
The petition was signed by Carol Brawley, director.
The Debtor listed Raintree Realty & Construction, Inc., as its
largest unsecured creditor holding an unknown amount of claim.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/ncwb16-10260.pdf
CONSTRUCTION MATERIALS: Case Summary & 20 Top Unsecured Creditors
-----------------------------------------------------------------
Debtor: Construction Materials Testing, Inc.
1033 Shary Circle
Concord, CA 94518-2469
Case No.: 16-41814
Chapter 11 Petition Date: June 29, 2016
Court: United States Bankruptcy Court
Northern District of California (Oakland)
Judge: Hon. Roger L. Efremsky
Debtor's Counsel: Ruth Elin Auerbach, Esq.
LAW OFFICES OF RUTH ELIN AUERBACH
77 Van Ness Ave. #201
San Francisco, CA 94102
Tel: (415) 673-0560
Fax: (415) 673-0562
E-mail: attorneyruth@sbcglobal.net
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Donald G. Rose, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/canb16-41814.pdf
CRYOPORT INC: Incurs $15 Million Net Loss in Fiscal 2016
--------------------------------------------------------
Cryoport, Inc., filed with the Securities and Exchange Commission
its annual report on Form 10-K disclosing a net loss attributable
to common stockholders of $15.05 million on $5.88 million of
revenues for the year ended March 31, 2016, compared to a net loss
attributable to common stockholders of $12.19 million on $3.93
million of revenues for the year ended March 31, 2015.
As of March 31, 2016, Cryoport had $5.82 million in total assets,
$2.72 million in total liabilities and $3.09 million in total
stockholders' equity.
KMJ Corbin & Company LLP, in Costa Mesa, California, issued a
"going concern" qualification on the consolidated financial
statements for the year ended March 31, 2016, citing that
the Company has recurring operating losses from inception and has
used substantial amounts of working capital in its operations.
Although the Company has cash and cash equivalents of $2.8 million
at March 31, 2016, management has estimated that cash on hand will
only be sufficient to allow the Company to continue its operations
through the third quarter of fiscal 2017. These matters raise
substantial doubt about the Company's ability to continue as a
going concern.
A full-text copy of the Form 10-K is available for free at:
https://is.gd/IOGvqx
About Cryoport
Lake Forest, Calif.-based CryoPort, Inc. (OTC BB: CYRX) provides
comprehensive solutions for frozen cold chain logistics, primarily
in the life science industries. Its solutions afford new and
reliable alternatives to currently existing products and services
utilized for bio-pharmaceuticals and biologics, including in-vitro
fertilization, cell lines, vaccines, tissue and other commodities
requiring a reliable frozen solution.
CUSTOM BYTES: Exclusive Plan Filing Period Moved to July 29
-----------------------------------------------------------
Alan C. Stout of the U.S. Bankruptcy Court for the Western District
of Kentucky has extended, at the behest of Custom Bytes Inc. of KY,
the date by which only the Debtor may file a plan to July 29, 2016,
and the date by which only the Debtor may solicit acceptances of
its plan until Aug. 29, 2016.
As reported by the Troubled Company Reporter on June 2, 2016, the
Debtor tells the Court that since the Petition Date, they have
continued to generate revenues while exploring processes to
increase profitability. The Debtor expects that the extended
exclusivity period will enhance their ability to propose a plan
that meets the Bankruptcy Code's criteria for confirmation because
the additional time will enable the Debtor to determine the overall
economic health of its business.
Custom Bytes Inc of KY is a computer retailer and services provider
headquartered in Louisville.
Custom Bytes Inc of KY filed for Chapter 11 bankruptcy protection
(Bankr. W.D. Ky. Case No. 15-33890) on Dec. 3, 2015, listing
$77,400 in assets and $162,311 in liabilities.
David M. Cantor, Esq., at Seiller Waterman LLC servers as the
Company's bankruptcy counsel.
DARIUS ENTERPRISES: $950K Sale of Chatworth Real Property Approved
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
San Fernando Valley, approved the Motion filed by Darius
Enterprises, LLC, to sell the parcel of real property commonly
known as 9623 Canoga Avenue, Chatsworth, CA, to Gabriel Guzman
and/or his assignee Guzman's Investments and Loans, Inc., for
$950,000.
Told Partners, Inc., the real estate broker to the Estate,
effectively and broadly marketed the Property for sale in
accordance with industry practices and in a manner designed to
elicit the highest and best offers for the Property.
The sale of the Property was held on May 31, 2016, at 1:30 p.m., in
Courtroom 303 of the US Bankruptcy Court and was conducted by the
Court. Guzman was the initial and only bidder who participated in
the sale.
Escrow is authorized and directed to pay the following claims, in
full in accordance with formal, written payoff demands, from the
proceeds of the sale of the property held in escrow upon the close
thereof:
a. The remaining balance of the claims asserted by secured
creditor, CFS-4, III, LLC in the approximate sum of $501,947.15;
b. The claims asserted by Steve Sharpe Construction, Inc., the
sum of $98,140.00;
c. The priority tax claims to Los Angeles County Treasurer and
Tax Collector, in the sum of $9,068;
d. To Told Partners, the sum of $23,750 on account of its
selling brokers' commission;
e. To Century 21 Peak Commercial., the sum of $23,750 on account
of its selling brokers' commission;
f. Any and all costs associated with the sale of the Property
for which the Debtor is liable under the Sale Agreement and
applicable law, including, but not limited to, escrow fees and
title insurance, whether or not herein specified; and
g. A reserve of $150,000 from the sale of the Property is to
remain in Escrow for administrative claims and expenses pending
further court approval; and
h. All remaining net proceeds after reserving for administrative
claims and expenses, Escrow will remit the balance of such funds to
the Debtor's counsel for deposit into the Debtor's bank account.
Hon. Judge Martin R. Barash approved the sale Motion.
Darius Enterprises, LLC, is represented by:
Lesley B. Davis, Esq.
R. Grace Rodriguez, Esq.
THE LAW OFFICES OF R. GRACE RODRIGUEZ
21000 Devonshire Street, Suite 111
Chatsworth, CA 91311
Telephone: (818) 734-7223
Facsimile: (818) 338-5821
E-mail: ecf@lorgr.com
About Darius Enterprises
Darius Enterprises, LLC, is a limited liability company created by
Masih Madani to own two commercial condominiums located at 9621 and
9623 Canoga Avenue in Chatsworth, CA.
Darius Enterprises filed a chapter 7 petition (Bankr. C.D. Cal.
Case No. 15-12153) on June 10, 2016, and converted the case to a
chapter 11 proceeding in Sept. 2015. This is Darius Enterprises'
second time in bankruptcy court. The company previously sought
Chapter 11 protection (Bankr. C.D. Cal. Case No. 10-20351) on Aug.
20, 2010, estimating less than $1 million in assets and $1 million
to $10 million in debt.
DIAMOND RESORTS: Moody's Puts B1 CFR on Review for Downgrade
------------------------------------------------------------
Moody's Investors Service placed Diamond Resorts Corporation's
("DRC") B1 Corporate Family Rating and B1-PD Probability of Default
Rating on review for downgrade. At the same time, the senior
secured bank credit facilities ratings of B1 were also placed on
review for downgrade. DRC's Speculative Grade Liquidity rating of
SGL-1 remains unchanged.
The review for downgrade is prompted by DRC's announcement that
affiliates of Apollo Global Management, LLC will be acquiring DRC
for $30.25 per share in a transaction valued at about $3.4 billion
including DRC's existing corporate and securitized debt. Moody's
estimates that this represents nearly a 10x EBITDA multiple based
upon Moody's expectation for DRC's 2016 EBITDA and about a 26%
premium over DRC's closing share price on June 28, 2016. The
transaction is expected to close during the second half of 2016.
The following ratings are placed on review for downgrade:
Corporate Family Rating at B1
Probability of Default Rating at B1-PD
Senior secured bank credit facilities at B1, LGD 3
BACKED senior secured bank credit facilities at B1, LGD 3
RATINGS RATIONALE
The review for downgrade reflects Moody's expectation the
transaction will largely be financed with debt as is typical of
financial sponsor acquisitions. The review for downgrade will focus
on how the acquisition will be financed and the likely pace of
deleveraging post-closing. The review will also consider Diamond's
go forward strategies regarding the level of securitized debt that
will be used to support its timeshare loan originations.
Diamond Resorts Corporation (DRC) is a wholly owned subsidiary of
Diamond Resorts International, Inc. DRC is a timeshare business
that specializes in the sale of vacation ownership interests in the
form of points. Members receive an annual allotment of points and
through the membership club can use these points to stay at
destinations within DRC global network of 359 resorts and 20 cruise
itineraries. DRC also provides consumer financing of the purchase
of the vacation ownership interests and manages 109 resorts
worldwide. Revenues are over $950 million.
DOLPHIN DIGITAL: Closes $250,000 Private Placement
--------------------------------------------------
Dolphin Digital Media, Inc., entered into a subscription agreement
with a certain private investor on June 22, 2016, whereby the
Company issued and sold to the Investor in a private placement an
aggregate of 50,000 shares of the Company's common stock, par value
$0.015 per share at a purchase price of $5.00 per Share. The
Placement provided $250,000 of gross proceeds to the Company.
The Company issued the Shares in reliance upon the exemption from
registration provided by Section 4(a)(2) of the Securities Act of
1933, as amended, and Rule 506 of Regulation D promulgated
thereunder. The Investor represented to the Company that such
Investor was an "accredited investor" as defined in Rule 501 (a)
under the Securities Act and that such Investor's Shares were being
acquired for investment purposes. The Shares have not been
registered under the Securities Act and are "restricted securities"
as that term is defined by Rule 144 promulgated under the
Securities Act.
About Dolphin Digital
Coral Gables, Florida-based Dolphin Digital Media, Inc., is
dedicated to the twin causes of online safety for children and
high quality digital entertainment. By creating and managing
child-friendly social networking websites utilizing state-of the-
art fingerprint identification technology, Dolphin Digital Media,
Inc. has taken an industry-leading position with respect to
internet safety, as well as digital entertainment.
Dolphin Digital reported a net loss of $4.05 million on $2.99
million of total revenue for the year ended Dec. 31, 2015, compared
to a net loss of $1.87 million on $2.07 million of total revenue
for the year ended Dec. 31, 2014.
As of March 31, 2016, Dolphin Digital had $20.71 million in total
assets, $46.72 million in total liabilities and a total
stockholders' deficit of $26 million.
BDO USA, LLP, in Miami, Florida, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, citing that the Company has suffered recurring
losses from operations, negative cash flows from operations, and
does not have sufficient working capital. These events raise
substantial doubt about the Company's ability to continue as a
going concern.
EAST AFRICAN DRILLING: Court Reinstates "RT FM SPC" Suit
--------------------------------------------------------
The Court of Appeals of Texas, First District, Houston, reinstated
the cases captioned RT FM SPC and Assured Risk Transfer LLC. v.
Gary Holley, Mike Heidt, Jeremy Counahan, Carl (Eric) Dowden, Herb
Cattee, Art Regehr, Allejandro Banda, Gary Campbell, Jason Crouch,
Aaron Medina, Nick Median, Oklahoma Rig Fabricators, LLC, and 66
Oilfield Services; and East African Drilling, Ltd. a/k/a East
Africa Drilling, Ltd. v. Gary Holley, Mike Heidt, Jeremy Counahan,
Carl (Eric) Dowden, Herb Cattee, Art Regehr, Allejandro Banda, Gary
Campbell, Jason Crouch, Aaron Medina, Nick Median, Oklahoma Rig
Fabricators, LLC, and 66 Oilfield Services, No. 01-16-00192-CV
(Tex. App.).
The appeal was stayed pursuant to suggestions of bankruptcy, filed
on March 28, 2016, stating that appellant, East African Drilling,
Ltd. a/k/a East Africa Drilling, Ltd., had filed a petition for
relief under Chapter 11 of Title 11, United States Code, in Case
16-31447, in the United States Bankruptcy Court for the Southern
District of Texas. On June 8, 2016, appellees notified this Court
that, on June 2, 2016, the bankruptcy court signed an order
dismissing the case with prejudice.
A full-text copy of the appellate court's June 23, 2016 order is
available at https://is.gd/I1tIlD from Leagle.com.
About East African Drilling
East African Drilling LTD. filed a Chapter 11 bankruptcy petition
(Bankr. S.D. Tex. Case No. 16-31447) on March 25, 2016. The
petition was signed by Shane Reeves as restructuring officer. The
Debtor disclosed total assets of $10 million and total debts of
$45.35 million. James B. Jameson, Esq., represents the Debtor as
counsel. Judge Karen K. Brown has been assigned the case.
ECHELON FINANCIAL: A.M. Best Lowers Issuer Credit Rating to bb
--------------------------------------------------------------
A.M. Best has downgraded the issuer credit rating (ICR) to "bb"
from "bb+" of Echelon Financial Holdings Inc. (EFH) [TSX: EFH]. The
outlook for this rating remains negative. Concurrently, A.M. Best
has affirmed the financial strength rating (FSR) of B++ (Good) and
the ICR of "bbb+" of Echelon Insurance (Echelon), as well as the
FSR of B++ (Good) and the ICR of "bbb" of The Insurance Company of
Prince Edward Island (ICPEI) (Prince Edward Island, Canada). The
outlook for each of these ratings is stable. All companies are
domiciled in Mississauga, Ontario unless otherwise specified.
The ratings and outlooks for both Echelon and ICPEI are based upon
each company's solid risk-adjusted capitalization, sound operating
earnings and low exposure to losses occurring from natural
catastrophes given each company's respective focus on non-standard
and associated auto liability lines of business. The ratings also
consider the benefits derived from the parent holding company,
which is publicly traded on the Toronto Stock Exchange, affording
potentially greater financial flexibility.
These positive rating factors are partially offset by Echelon's
concentration within Ontario's auto market, with results adversely
affected by accident claims frequency and cost inflation over the
most recent five-year period, as well as strong competitive market
pressures. Despite sound pre-tax operating earnings reported
throughout the recent five-year period, policyholder surplus has
declined given ongoing stockholder dividend payments to the parent
for general use purposes, which has constrained the company's
ability to improve its capital base.
Offsetting factors for ICPEI include the impact of weather-related
underwriting losses during three of the most recent five years.
While premium volume is divided fairly evenly among Prince Edward
Island, New Brunswick and Nova Scotia, ICPEI's lack of scale
reflects its relatively small geographic footprint, which may
increase its exposure to losses occurring from severe weather
within the Atlantic Maritime provinces.
The ratings of EFH are based primarily on the overall financial
strength of its operating insurance company, Echelon. In addition
to Echelon, EFH is the parent of Qudos Insurance A/S (Qudos); a
vehicle which writes non-standard auto and program business
primarily in Ireland, the United Kingdom, and Denmark; CIM
Reinsurance Company Ltd (Cim Re), a Barbados captive reinsurer; as
well as CUISA Managing General Agency Corporation, a British
Columbia specialty insurance agency. The downgrade of EFH's ICR
reflects the impact of recent strong premium growth written by both
Qudos and Cim Re, which has somewhat impacted the organization's
overall financial strength. A.M. Best will continue to closely
monitor the impact of strong premium growth reported by these
companies on both operating performance and risk-adjusted
capitalization across the enterprise, inclusive of EFH's strategy
and future of its international operations, including progress on
the structured divestiture process announced in early 2016.
Positive rating actions could occur if the operating results for
each company improve to a level that materially outperforms that of
similarly rated carriers while maintaining a strong level of
risk-adjusted capitalization through retained earnings.
Alternatively, negative rating actions could occur if operating
results decline due to a weakening in underwriting performance.
Negative rating actions may also occur should the risk-adjusted
capitalization decline to a level that is not in line with AM
Best's expectations. For the operating subsidiaries, negative
rating actions may also occur if the relationship to its parent
changes in a manner that affects the operations of the companies.
EDU-PRO MANAGEMENT: Case Summary & 8 Unsecured Creditors
--------------------------------------------------------
Debtor: Edu-Pro Management, LLC
9111 Phillips Grove Terrace
Orlando, FL 32836
Case No.: 16-04313
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: June 29, 2016
Court: United States Bankruptcy Court
Middle District of Florida (Orlando)
Debtor's Counsel: Michael A Nardella, Esq.
NARDELLA & NARDELLA, PLLC
250 East Colonial Drive, Ste 102
Orlando, FL 32801
Tel: 407-966-2680
Email: mnardella@nardellalaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Vince Desai, managing member.
A copy of the Debtor's list of its 20 largest unsecured creditors
-- containing 8 entries -- is available for free at
http://bankrupt.com/misc/flmb16-04313.pdf
ELBIT IMAGING: Reverse Share Split Takes Effect
-----------------------------------------------
Elbit Imaging Ltd. announced that the one-for-three reverse split
of the Company's ordinary shares became effective and that the
shares commenced trading on a reverse split-adjusted basis upon the
open of trading on the NASDAQ Global Select Market on Monday, June
27, 2016. With respect to the Tel Aviv Stock Exchange, the shares
commenced trading on a reverse split-adjusted basis upon the open
of trading on Sunday, June 26, 2016.
As part of the reverse share split and pursuant to the approval of
the Company's shareholders, on March 31, 2016, the Company's
Memorandum and Articles of Association were amended to reduce the
Company's authorized share capital from 35,000,000 ordinary shares,
no par value, to 11,666,667 ordinary shares, no par value.
About Elbit Imaging
Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF)
holds investments in real estate and medical companies. The
Company, through its subsidiaries, also develops shopping and
entertainment centers in Central Europe and invests in and manages
hotels.
Elbit Imaging reported a loss of NIS 186.15 million on NIS 1.47
million of revenues for the year ended Dec. 31, 2015, compared to
profit of NIS 1 billion on NIS 461,000 of revenues for the year
ended Dec. 31, 2014. As of Dec. 31, 2015, Elbit Imaging had NIS
778.25 million in total assets, NIS 758.96 million in total
liabilities and NIS 19.28 million in shareholders' equity.
Since February 2013, Elbit has intensively endeavored to come to
an arrangement with its creditors. Elbit has said it has been
hanging by a thread for more than five months. It has encountered
cash flow difficulties and this burdens its day to day activities,
and it certainly cannot make the necessary investments to improve
its assets. In light of the arrangement proceedings, and
according to the demands of most of the bondholders, as well as an
agreement that was signed on March 19, 2013, between Elbit and the
Trustees of six out of eight series of bonds, Elbit is prohibited,
inter alia, from paying off its debts to the financial creditors
-- and as a result a petition to liquidate Elbit was filed, and
Bank Hapoalim has declared its debts immediately payable,
threatening to realize pledges that were given to the Bank on
material assets of the Company -- and Elbit undertook not to sell
material assets of the Company and not to perform any transaction
that is not during its ordinary course of business without giving
an advance notice to the trustees.
Accountant Rony Elroy has been appointed as expert for examining
the debt arrangement in the Company.
In July 2013, Elbit Imaging's controlling shareholders, Europe-
Israel MMS Ltd. and Mr. Mordechay Zisser, notified the Company
that the Tel Aviv District Court has appointed Adv. Giroa Erdinast
as a receiver with regards to the ordinary shares of the Company
held by Europe Israel securing Europe Israel's obligations under
its loan agreement with Bank Hapoalim B.M. The judgment stated
that the Receiver is not authorized to sell the Company's shares
at this stage. Following a request of Europe-Israel, the Court
also delayed any action to be taken with regards to the sale of
those shares for a period of 60 days. Europe Israel and
Mr. Zisser have also notified the Company that they utterly reject
the Bank's claims and intend to appeal the Court's ruling.
ELBIT IMAGING: Unit Agrees to Sell Residential Plot for for EUR2.4M
-------------------------------------------------------------------
Elbit Imaging Ltd. announced that Plaza Centers N.V., an indirect
subsidiary of the Company, has signed an agreement for the sale of
a 20,700 sqm plot of land in Lodz, Poland, to a residential
developer, for EUR2.4 million. The conditional agreement will be
followed by a transfer agreement which is expected to be signed by
the end of August 2016.
On transfer, Plaza will receive an initial payment of EUR1.04
million, followed by EUR180,000 in November 2016, EUR220,000 in
December 2016 and a final instalment of EUR0.96 million in June
2017.
In line with Plaza's stated restructuring plan, 75% of the net cash
proceeds from the sale of the plot, will be distributed to Plaza's
bondholders within the quarter following the receipt of each cash
portion.
About Elbit Imaging
Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF)
holds investments in real estate and medical companies. The
Company, through its subsidiaries, also develops shopping and
entertainment centers in Central Europe and invests in and manages
hotels.
Elbit Imaging reported a loss of NIS 186.15 million on NIS 1.47
million of revenues for the year ended Dec. 31, 2015, compared to
profit of NIS 1 billion on NIS 461,000 of revenues for the year
ended Dec. 31, 2014. As of Dec. 31, 2015, Elbit Imaging had NIS
778.25 million in total assets, NIS 758.96 million in total
liabilities and NIS 19.28 million in shareholders' equity.
Since February 2013, Elbit has intensively endeavored to come to
an arrangement with its creditors. Elbit has said it has been
hanging by a thread for more than five months. It has encountered
cash flow difficulties and this burdens its day to day activities,
and it certainly cannot make the necessary investments to improve
its assets. In light of the arrangement proceedings, and
according to the demands of most of the bondholders, as well as an
agreement that was signed on March 19, 2013, between Elbit and the
Trustees of six out of eight series of bonds, Elbit is prohibited,
inter alia, from paying off its debts to the financial creditors
-- and as a result a petition to liquidate Elbit was filed, and
Bank Hapoalim has declared its debts immediately payable,
threatening to realize pledges that were given to the Bank on
material assets of the Company -- and Elbit undertook not to sell
material assets of the Company and not to perform any transaction
that is not during its ordinary course of business without giving
an advance notice to the trustees.
Accountant Rony Elroy has been appointed as expert for examining
the debt arrangement in the Company.
In July 2013, Elbit Imaging's controlling shareholders, Europe-
Israel MMS Ltd. and Mr. Mordechay Zisser, notified the Company
that the Tel Aviv District Court has appointed Adv. Giroa Erdinast
as a receiver with regards to the ordinary shares of the Company
held by Europe Israel securing Europe Israel's obligations under
its loan agreement with Bank Hapoalim B.M. The judgment stated
that the Receiver is not authorized to sell the Company's shares
at this stage. Following a request of Europe-Israel, the Court
also delayed any action to be taken with regards to the sale of
those shares for a period of 60 days. Europe Israel and
Mr. Zisser have also notified the Company that they utterly reject
the Bank's claims and intend to appeal the Court's ruling.
ENERGY FUTURE: Court OKs Extension of Cash Use to Sept. 30
----------------------------------------------------------
Honorable Christopher S. Sontchi of the U.S. Bankruptcy Court for
the District of Delaware approves the stipulation among Texas
Competitive Electric Holdings Company LLC, Energy Future
Competitive Holdings Company LLC, certain of TCEH's direct and
indirect subsidiaries, Wilmington Trust, N.A., as the First Lien
Collateral Agent and First Lien Administrative Agent, Delaware
Trust Company (f/k/a CSC Trust Company of Delaware), as First Lien
Notes Trustee, and the TCEH Ad Hoc Committee.
The Parties agreed and stipulated that the Final Cash Collateral
Order will be modified, inter alia, as follows:
1. Paragraph 3(a) of the Final Cash Collateral Order will be
deleted and replaced with the following: "(a) Specified Period.
Subject to the terms and conditions of this Final Order, the TCEH
Debtors are authorized to use Cash Collateral for the period from
the Petition Date through the date which is the earliest to occur
of (a) the expiration of the Remedies Notice Period (as defined
herein) or (b) September 30, 2016."
2. Paragraph 5 of the Final Cash Collateral Order is amended by
replacing clause (f) in its entirety with the following:
"(f) Financial Covenant. For any Test Period (as defined in
the DIP Credit Agreement) beginning with the Test Perio ending on
the last day of the first full fiscal quarter after the Closing
Date (as defined in the DIP Credit Agreement) (the "Financial
Covenant"), if the sum of (i) the aggregate principal amount of all
Revolving Letters of Credit Loans (as defined in the DIP Credit
Agreement) then outstanding plus (ii) the aggregate Stated AMount
(as defined in the DIP Credit Agreement) of all then outstanding
Revolving Letters of Credit (as defined in the DIP Credit
Agreement) plus the aggregate amount of Unpaid Drawings (as
defined in the DIP Credit Agreement) with respect to all then
outstanding Revolving Letters of Credit (as defined in the DIP
Credit Agreement) , but in each case, excluding (a) cash
collaterized or backstopped Revolving Letters of Credit (as
defined in the DIP Credit Agreement) and (b) up to $100,000,000 of
undrawn Revolving Letters of Credit (as defined in the DIP Credit
Agreement), exceeds 30% of the Total Revolving Credit Commitment
(as defined in the DIP Credit Agreement) then in effect (after
including any New Revolving Credit Commitments (as defined in the
DIP Credit Agreement) then in effect), then the ratio of (i)
Consolidated Superpriority Secured Net Debt (as defined in the DIP
Credit Agreement) to (ii) Consolidated EBITDA (as defined in the
DIP Credit Agreement) for the most recent four fiscal quarter
period for which financial statements are available shall not
exceed 4.25 to 1.00 as of the last day of such Test Period."
3. Subject to and solely upon the occurrence of the Closing
Date, paragraph 14 of the Final Cash Collateral Order is amended by
(a) replacing the reference to "$1,100,000,000" with "975,000,000"
and (b) replacing the reference to paragraph 25 of the DIP Order
with "paragraph 27 of the DIP Order."
Counsel to the TCEH Debtors:
Mark D. Collins, Esq.
Daniel J. DeFranceschi, Esq.
Jason M. Madron, Esq.
RICHARDS, LAYTON & FINGER, P.A.
920 North King Street
Wilmington, Delaware 19801
Telephone: (302) 651-7700
Facsimile: (302) 651-7701
Email: collins@rlf.com
defranceschi@rlf.com
madron@rlf.com
-- and --
Edward O. Sassower, P.C.
Stephen E. Hessler, Esq.
Brian E. Schartz, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, New York 10022-4611
Telephone: (212) 446-4800
Facsimile: (212) 446-4900
Email: edward.sassower@kirkland.com
stephen.hessler@kirkland.com
brian.schartz@kirkland.com
-- and --
James H.M. Sprayregen, P.C.
Marc Kieselstein, P.C.
Chad J. Husnick, Esq.
Steven N. Serajeddini, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle
Chicago, Illinois 60654
Telephone: (312) 862-2000
Facsimile: (312) 862-2200
Email: james.sprayregen@kirkland.com
marc.kieselstein@kirkland.com
chad.husnick@kirkland.com
steven.serajeddini@kirkland.com
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.
EPICENTER PARTNERS: Stinson Leonard Not "Disinterested," UST Says
-----------------------------------------------------------------
The U.S. Trustee for the District of Arizona, Region 14, filed its
response to the request of Epicenter Partners, L.L.C. and Gray
Meyer Fannin, L.L.C. to employ Stinson Leonard Street, LLP as
counsel to the Debtors.
The U.S. Trustee alleged that the firm is not a "disinterested
person" as required by 11 U.S.C. Sec. 327(a). Stinson Leonard
discloses that it is a pre-petition creditor of both debtors and
owed in the amount of $56,410. A "disinterested person" excludes a
pre-petition creditor, the U.S. Trustee argued.
According to the U.S. Trustee, the language of 11 U.S.C. Sec.
101(14)(A)-(D) mandates a literal approach to the disinterested
person requirements and sets forth in detail a series of
characteristics that disqualify a person from being disinterested.
These paragraphs do not call for any weighing or balancing of the
impact of disqualification. A judicial determination that a
person's characteristics would pose problems for the administration
of the bankruptcy estate is not a prerequisite for
disqualification. Each paragraph refers to characteristics of a
person that are either carefully defined within the Bankruptcy Code
or are easily understood.
The U.S. Trustee requested the bankruptcy court not to grant the
application of Debtor's until such time as: 1) the issue concerning
the pre-petition claim is resolved, and 2) more information
concerning the applicant's connections with certain affiliated
entities is provided.
The U.S. Trustee is represented by:
CHRISTOPHER J. PATTOCK, Esq.
Trial Attorney
230 N. 1 st Ave., #204
Phoenix, AZ 85003-1706
Tel: (602) 682-2614
Fax: (602) 514-7270
E-Mail: Christopher.J.Pattock@usdoj.gov
About Epicenter Partners
Epicenter Partners LLC and Gray Meyer Fannin LLC sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Lead Case
No. 16-05493) on May 16, 2016. The Debtors tapped Thomas J.
Salerno, Esq. -- thomas.salerno@stinsonleonard.com -- at Stinson
Leonard Street, LLP, as their Chapter 11 counsel.
EROSOL LLC: Trustee Gets Approval to Hire Hays as Accountant
------------------------------------------------------------
The Chapter 11 trustee of Erosol, LLC received approval from the
U.S. Bankruptcy Court for the Northern District of Georgia to hire
Hays Financial Consulting, LLC as his accountant.
S. Gregory Hays, the bankruptcy trustee, tapped the firm to provide
these services in connection with the Debtor's Chapter 11 case:
(a) file tax returns and provide advice on income taxes and
their impact on the Debtor's assets;
(b) analyze holdings of the Debtor including analysis of
transactions, valuation of assets, cash flow and equity
in its assets for recovery by the bankruptcy estate;
(c) analyze financial impact of any settlement entered into
by the Debtor;
(d) provide accounting and other financial services to the
Debtor as needed;
(e) investigate and analyze funds owed to the Debtor;
(f) assist in the determination and resolution of claims
asserted by various parties and taxing agencies;
(g) advise and assist the Debtor in investigating its affairs
to assist in the administration of the estate or
liquidation of the assets; and
(h) investigate, analyze and compile data relating to
financial and accounting matters or issues in connection
with any proceeding in the Debtor's case.
The hourly rates of the firm's professionals by position are:
Managing Director $300 - $400
Director $200 - $300
Manager $150 - $225
Associates/Sr. Associates $100 - $175
Aside from professional fees, the firm will also receive
reimbursement for work-related expenses.
Hays Financial Consulting is a "disinterested person" as defined in
section 101(14) of the Bankruptcy Code, according to court
filings.
The firm can be reached through:
S. Gregory Hays
Hays Financial Consulting, LLC
3343 Peachtree Road, Suite 200
Atlanta, GA 30326
Phone: (404) 926-0060
Fax: (404) 926-0055
E-mail: ghays@haysconsulting.net
About Erosol LLC
Erosol, LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ga. Case No. 16-57405) on April 28, 2016.
On June 27, 2016, the court approved the appointment of S. Gregory
Hays as Chapter 11 trustee for the Debtor.
The case is assigned to Judge Mary Grace Diehl.
ERWIN WILLIAMS: Melancons Buy Metairie Property for $170K
---------------------------------------------------------
Erwin John Williams and Julie Mangiaracina Scuderi ask the U.S.
Bankruptcy Court for the Eastern District of Louisiana to authorize
the sale of their immovable property bearing municipal address 1808
North Bengal Road, Metairie, LA ("North Bengal Property") to Joseph
Melancon and Kristen Melancon for $170,000.
At the time of the filing of the Debtors' voluntary petition, the
North Bengal Property was subject to a mortgage, dated March 8,
2005, executed by the Debtors in favor of Standard Mortgage Corp.
("SMC"), which mortgage was recorded in the mortgage records for
the Parish of Jefferson, State of Louisiana, on March 15, 2015,
under instrument number 10514707.
Also at the time of the filing of the Debtors' voluntary petition,
the North Bengal Property was subject to a Home Equity Mortgage,
dated Oct. 20, 2000, executed by the Debtor Julie Mangiaracina
Scuderi in favor of Bank One, N.A. ("Bank One"), and any future
holders, which mortgage was recorded in the Jefferson Parish
Mortgage records under instrument number 10055730.
According to SMC, the total balance due on the Promissory Note
dated Mar. 8, 2005, as of Nov. 18, 2015, is $31,179.47, consisting
of $24,333.90 in principal, interest of $948.53, late charges of
$178.50, attorney's fees of $945, filing fees and court costs of
$685, sheriff's fees of $2,000, title costs of $69, an
appraisal/broker's price opinion of $300, property inspection fees
of $131.25, and an escrow shortage or deficiency of $1,588.29.
According to JP Morgan Chase Bank, N.A., the servicer for the Home
Equity Line of Credit Agreement and Disclosure Statement held by
Bank One, as of the Debtors' petition date, said creditor is owed
$34,280.33, consisting of $32,698.70 in principal, $1,356.53 in
interest, and $225 in fees and court costs.
Acting on the premise or standard of what is in the best interest
of this estate and its creditors, the Debtors have determined that
the sale of the North Bengal Property to Joseph Melancon and
Kristen Melancon for $170,000 represents the best price obtainable
for this property on the current market as of this date.
As to the holders of the mortgages on the Bengal Road Property,
i.e., SMC and Bank One, the sales proceeds to be generated from the
sale of this property are more than sufficient to pay the claims of
these mortgagees. Further, these creditors will have their claims
and security interests/liens attach to and will be paid from the
proceeds of the sale in their order of priority as determined under
applicable non-bankruptcy law.
Based on the Debtors' calculations, and after allocating for the
agent's commission of 6% on the first $100,000 of the gross sales
proceeds and 4% on the balance of the gross sales proceeds (i.e.,
$70,000) or a total of $8,800 to Larry Trunk Realty, and a home
service warranty of $600, Debtors expect to net $160,600 from the
sale before payment of their portion of the seller's closing
costs.
Attorney for Debtors:
Darryl T. Landwehr
LANDWEHR LAW FIRM
1010 Common St., Suite 1710
New Orleans, LA 70112
Telephone: (504) 561-8086
About Erwin Williams and Julie Scuderi
On October 23, 2015, Erwin John Williams and Julie Mangiaracina
Scuderi filed a voluntary petition for relief under Chapter 13 of
Title 11, United States Code (Bankr. E.D. La. Case No. 15-12776).
On June 15, 2016, the Court entered an Order converting the Chapter
13 case to a case under Chapter 11 of Title 11, United
States Code.
Erwin John Williams and Julie Mangiaracina Scuderi sought Chapter
13 protection in US Bankruptcy Court for the Eastern District of
Louisiana on Oct. 23, 2015.
FAST LANE: Hires Eason Law Firm as Counsel
------------------------------------------
Fast Lane Superstore, LLC, seeks authorization from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ The
Eason Law Firm as Counsel.
The Debtor retained The Eason Law Firm to handle the legal matters
leading to and immediately following the Petition Date. Following
the Petition Date, Debtor has the continuing need to retain
bankruptcy counsel to handle the prosecution of Chapter 11
proceedings, to handle challenges against the interest by others
and to otherwise represent its interest on legal matters falling
under the jurisdiction of the Court. The Debtor believes that it
is in its best interest to retain The Eason Law Firm as its
attorney to represent it during the bankruptcy proceedings.
Rodney L. Eason, Esq., associated with The Eason Law Firm, assured
the Court that his 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.
Eason Law Firm can be reached at:
Rodney L. Eason, Esq.
The Eason Law Firm
6150 Old Nation Highway
College Park, GA 30349
Tel: (770)909-7200
Fax: (770)909-0644
E-mail: reason@easonlawfirm.com
About Fast Lane Superstore, LLC
Fast Lane Superstore, LLC filed a Chapter 11 bankruptcy petition
(Bankr. N.D. Ga. Case No. 16-58964) on May 23, 2016. The Eason Law
Firm represents the Debtor as counsel. In its petition, the Debtor
estimated $1 million to $10 million in both assets and
liabilities. The petition was signed by Sherif Riad, president.
FINANCIAL RESOURCES: Hires RentPro's Demott as Property Manager
---------------------------------------------------------------
Financial Resources of America, Inc., seeks authorization from the
U.S. Bankruptcy Court for the Southern District of Florida to
employ Daniel Demott of RentPro Florida as Property Manager.
The Debtor requires Mr. Demott with the assistance of RentPro to:
a. take all necessary action and precaution to protect and
preserve the Debtor's estate.
b.perform all other necessary property management services and
provide all other necessary property management advice to the
Debtor in connection with the Chapter 11 case.
Daniel Demott and the Debtor agreed that Demott's bundled rate
structure will apply to this case and therefore, Demott will not be
seeking to be separately compensated for certain staff, clerical
and resource charges. Presently, the rate for RentPro Florida is
10% of rents collected.
RentPro will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Daniel Demott, as property manager, assured the Court that the firm
is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code and does not represent any interest
adverse to the Debtors and their estates.
RentPro may be reached at:
Daniel Demott
2417 Quantum Blvd
Boyton Beach, FL 33426
Tel: (561)327-6056
E-mail: daniel@RentProFL.com
About Financial Resources of America, Inc.
Financial Resources of America, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. S.D. Fla. Case No. 16-17275) on May 20, 2016.
David L. Merrill, Esq., at Merrill PA as bankruptcy counsel.
FLEMINGTON BLOCK: Emerald Wants to Sell Property Claimed by Debtor
------------------------------------------------------------------
Emerald Investment Real Estate, LLC, asks Judge Christine M.
Gravelle to authorize the sale of the property located at 126
Pennsylvania Avenue, Flemington, NJ.
Emerald is defendant in an adversary proceeding captioned,
Flemington Block and Supply, Inc. vs. Royal Tax Lien Services, LLC
d/b/a Crusader Lien Services, WRCC, LLC, SASS Muni V, LLC and
TLR-V, LLC, and Emerald Investment Real Estate, LLC, Adv. Case No
15-01529 (CMG). Flemington Block and Supply, Inc. filed the
adversary proceeding to set aside the transfer of the property.
Divyesh Shah, member of Emerald Investment Real Estate, said that
he purchased the property from TLR-V for the purchase price of
$75,000. Subsequent to purchasing the property, Shah spent in
excess of $170,000 to repair the property. In October, 2015, after
all of the improvements were made Shah was served with the
adversary complaint seeking to have the property re-conveyed to the
Debtors.
Shah said that he has received an offer to sell the property in the
amount of $355,000. Shah considers the contract to be most
favorable and equivalent to the fair market value. Shah has not
received any higher or better offers for the property..
To the best of Shah's knowledge, Giuseppe Ardito and Gerolima
Sebastiani are the proposed buyers and are disinterested purchasers
who are not associated in any way with Emerald or Shah.
Emerald has retained the services of Weichert Realtors in
connection with the sale of the property. The Brokers have agreed
to accept 5% commission in connection with the sale of the
property. Emerald will also pay a legal fee of $2,500 in court
fees to Hank Chudzik, Esq. at the time of closing for the closing.
The closing is to occur on June 30, 2016.
If necessary, the net proceeds of closing costs may be held until
the determination is made in this matter.
Emerald Investment Real Estate, LLC, is represented by:
Robert C. Nisenson
ROBERT C. NISENSON, LLC
10 Auer Court
East Brunswick, NJ
Telephone: (732) 238-8777
About Flemington Block and Supply
Flemington Block and Supply, Inc. sought Chapter 11 protection
(Bankr. D.N.J. Case No. 15-16733) on April 14, 2015 in Trenton, New
Jersey. The Honorable Judge Christine M. Gravelle is assigned to
the case. Joseph R. Zapata, Jr., Esq., at Norris, McLaughlin &
Marcus, P.A. serves as counsel. The Debtor estimated assets of
$2,000 and $6.12 million in debt. The petition was signed by Gary
N. Marks, receiver.
FOODSERVICEWAREHOUSE: Selling $7M of Inventory, Hires HYPERAMS
--------------------------------------------------------------
FoodServiceWarehouse.com, LLC, asks the U.S. Bankruptcy Court for
the Eastern District of Louisiana to authorize the sale of its
inventory and other personal property outside of the ordinary
course of business in below normal prices and perhaps below the
cost of the purchase price of the goods in order to expeditiously
liquidate its inventory.
The Debtor's inventory is secured by a lien in favor of IberiaBank,
who holds a first lien against the property in the approximate
amount of $2,000,000. Pride Marketing & Procurement, Inc., by
virtue of subrogation rights under the laws of the State of
Louisiana, is subrogated to IberiaBank's position in the
approximate amount of $15,700,000 as a result of Pride satisfying
its guarantee obligations of the loans made by IberiaBank to the
Debtor.
The Debtor is in the process of liquidating its assets including
its inventory in the most efficient and profitable manner, which
requires it to sell its inventory quickly in order to avoid its
operational costs, including salaries, wages and taxes related
thereto, as well as rent and other general operating expenses.
The Debtor believes that its inventory is valued at approximately
$7,000,000 on a costs basis and that the liquidation at a reduced
price will allow the Debtor to satisfy the claims of IberiaBank and
partially pay some of the debt to Pride. Selling the inventory in
liquidation will allow the Debtor to dramatically reduce its total
operating costs. The sale of the inventory will not adversely
affect the value of the Debtor's remaining assets, which are
largely intangible personal property such as accounts receivable,
causes of action, intellectual property and certain business
lines.
The Debtor also seeks to employ HYPERAMS, LLC, an asset
maximization service, as consultants in order to assist, and advise
in the most expeditious and profitable manner in which to liquidate
the inventory. It believes that the employment of HYPERAMS is in
the best interest of the estate and will greatly assist the Debtor
in maximizing the values recovered from the sale of its inventory
and reduce the operating expenses associated therewith.
FoodServiceWarehouse.com's attorneys:
Barry W. Miller
HELLER, DRAPER, PATRICK, HORN & DABNEY, LLC
9311 Bluebonnet Blvd.
Baton Rouge, LA 70810
Telephone: (225) 767-1499
Facsimile: (225) 761-0760
E-mail: bmiller@hellerdraper.com
- and -
Greta M. Brouphy
HELLER, DRAPER, PATRICK, HORN & DABNEY, LLC
650 Poydras Street, Suite 2500
New Orleans, LA 70130-6175
Telephone: (504) 299-3300
Facsimile: (504) 299-3399
E-mail: gbrouphy@hellerdraper.com
About FoodServiceWarehouse.com
FoodServiceWarehouse.com, LLC sought protection under Chapter 11 of
the Bankruptcy Code in the Eastern District of Louisiana (New
Orleans) (Case No. 16-11179) on May 20, 2016. The petition was
signed by Thomas Kim, chief restructuring officer.
The Debtor tapped Barry W. Miller, Esq., at Heller, Draper,
Patrick, Horn & Dabney, L.L.C., as counsel; r2 Advisors, LLC as
financial advisor; HyperAMS, LLC, as liquidation consultant; and
Donlin, Recano & Company, Inc. as its claims, noticing and
solicitation agent.
The case is assigned to Judge Elizabeth Magner.
The Debtor estimated both assets and liabilities in the range of
$10 million to $50 million.
FRANKLIN GRAHAM LOCKE: Proposes $1.68M Sale of Tenn. Property
-------------------------------------------------------------
Franklin Graham Locke filed with the U.S. Bankruptcy Court for the
Middle District of Tennessee, Nashville Division, an expedited
motion to sell his interest in real property known as 210 Lynnwood
Boulevard, Nashville, TN, to Cregan James Laborde and Sarah Blair
for $1,680,000.
The Debtor explains that this matter must be handled on an
expedited basis because a Motion regarding the sale has been filed
in the Debtor's pending divorce proceeding, Franklin Graham Locke
v. Kristin Stegall Locke, Davidson County Circuit Court Case No.
15D194 ("Divorce Proceeding"), which was set to be heard on
June 24, 2016, and the purchase is contingent upon the Court's
approval.
The Debtor co-owns the Real Property with his estranged wife,
Kristin Stegall Locke, as tenants by the entirety.
The Debtor's interest in the Real Property is encumbered by a debt
to Fifth Third Bank in the approximate amount of $583,738 (payoff
through Aug. 31, 2016, with a per diem of $47.27 thereafter). Fifth
Third Bank will be paid a sum not to exceed its payoff from the
sale proceeds for the release of its lien on the Real Property.
The Debtor's interest in the Real Property is encumbered by a debt
to Capstar Bank in the approximate amount of $241,300 as of May 3,
2016, with a per diem of $37.29. Capstar Bank will be paid a sum
not to exceed its payoff from the sale proceeds for the release of
its lien on the Real Property.
The Debtor desires to sell the Real Property under terms and
conditions substantially similar to those summarized as follows:
Purchase Price: $1,680,000
Earnest Money: $15,000
Payoff of Lien(s): $583,738 – Fifth Third through 8/31/2016
$245,776 – Capstar through 8/31/2016
Property Taxes: 2016 pro rata to date of closing
Sale Date: On or before Aug. 26, 2016
Estimated Costs of Sale: To Be Determined
Broker's Commission: $0.00
The Debtor stresses that it is not only important, but it is
legally proper, for the net proceeds from the sale of the Real
Property to be deposited into the Martial DIP Account. The Debtor
has previously sold assets in compliance with an order entered in
his Divorce Proceeding, both before and after the bankruptcy
filing. The Court has previously entered Orders directing the
proceeds from such post-bankruptcy sales to be deposited into the
Marital DIP Account.
The Debtor also requests that the Court allow the sale to be
consummated immediately as authorized by Bankruptcy Rule 6004(h).
He further requests authority to use the proceeds from the sale of
the assets to pay any associated costs of sale. To the extent any
dispute arises as to the extent, priority or amount of any lien,
the Debtor requests authority to pay the portion of such lien as to
which no dispute exists and escrow from the sale proceeds an amount
sufficient to pay the disputed portion pending resolution of the
dispute.
Mr. Locke is represented by:
Timothy G. Niarhos
Gray Waldron
LAW OFFICE OF TIMOTHY G. NIARHOS
321 9th Avenue North
Nashville, TN 37203
Telephone: (615) 320-1101
Facsimile: (615) 320-1102
E-mail: tim@niarhos.com
gray@niarhos.com
About Franklin Graham Locke
Franklin Graham Locke filed a Chapter 11 bankruptcy petition
(Bankr. M.D. Tenn. Case No. 16-01893) on March 16, 2016.
The Debtor and Kristin Locke were, and still remain, parties to a
divorce proceeding pending before the Fourth Circuit Court for
Davidson County, Tennessee styled Dr. Franklin Graham Locke v.
Kristin Stegall Locke, Docket No. 15D-194. In the Divorce
Proceeding, and prior to the filing of the bankruptcy case, an
order was entered requiring the sale of certain personal property.
Timothy G. Niarhos and Gray Waldron at Law Office of Timothy G.
Niarhos serve as counsels.
G.A.S. OF EATONTOWN: Hires Menna Law Firm as Attorney
-----------------------------------------------------
G.A.S. of Eatontown, LLC sought and obtained authorization from the
U.S. Bankruptcy Court for the District of New Jersey to employ
Pasquale Menna of Menna Law Firm as attorney for
Debtor-in-Possession.
Pasquale Menna's services are required by the corporate debtor and
he has familiarity with the bankruptcy proceeding and the company.
Pasquale Menna will be paid at a rate of $250 per hour.
Pasquale Menna, member of Menna Law Firm, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
Menna Law Firm may be reached at:
Pasquale Menna, Esq.
Menna Law Firm
151 Bodman Place
3rd Floor, Suite 300
Red Bank, NJ 07701
Tel: 732-383-8445
Fax: 732-383-8274
E-mail: pmenna@mennalaw.com
About G.A.S. of Eatontown, LLC
G.A.S. of Eatontown, LLC filed a Chapter 11 bankruptcy petition
(Bankr. D.N.J. Case No. 16-19480) on May 16, 2016. Judge Christine
M. Gravelle presides over the case.
GARY DEAN ROGERS: Selling Bentwood Reserve Property for $70K
------------------------------------------------------------
Gary Dean Rogers asks the U.S. Bankruptcy Court for the Western
District of Texas, Austin Division, to authorize the sale of the
Debtor's interest in the 1.32 acres of unimproved real property at
Lot 22, Blk 1, in Bentwood Reserve Subdivision ("Unimproved Tract")
to David and Elizabeth Chambers for $70,000.
The Debtor's broker for the sale is Wesley Crooks of Ranch Realty
("Ranch Realty"). The application to employ Wesley Crooks of Ranch
Realty is pending before the Court.
The Buyers are represented in the transaction by:
Jerrie Woodford
J W REAL ESTATE
Broker/Owner
18045 Kenley Lane
Christoval, TX 76935
Tel: (325) 656-2188
E-mail: jerrie_woodford@yahoo.com
Under the Listing Agreement and Contract, Ranch Realty is to be
paid a commission equal to 6 percent of the Purchase Price at
closing. It is the Debtor's understanding that Ranch Realty will
be sharing 50 percent of its 6 percent commission with Jerrie
Woodford of J W Real Estate, who is the Buyers' broker. No more
than a total of six percent in commissions will be paid.
The Debtor believes that the proposed sale is the best available
option to obtain the maximum value for the Estate's interest in the
Unimproved Tract. The Unimproved Tract has been on the market for
approximately 18 months. Thus, the Debtor believes that the
proposed sale to Buyers, is, at present, the highest and best offer
under the circumstances and will maximize the value to the estate.
Gary Dean Rogers is represented by:
Simon Mayer
Wayne Kitchens
HUGHESWATTERSASKANASE, LLP
1201 Louisiana St., 28th Floor
Houston, TX 77002
Telephone: (713) 759-0818
Facsimile: (713) 759-6834
E-mail: wkitchens@hwa.com
smayer@hwa.com
About Gary Dean Rogers
Gary Dean Rogers -- aka G D Rogers, dba Rogers Construction, dba
Rogers General Construction -- sought Chapter 11 protection
(Bankr. W.D. Tex. Case No. 16-10404) on April 4, 2016. Wayne
Kitchens, Esq. at Hughes Watters Askanase, LLP serves as counsel.
GAWKER MEDIA: Says Sale of Avoidance Actions Will Bring $90MM
-------------------------------------------------------------
Gawker Media LLC and certain of its affiliates filed a response to
the limited objection of Terry G. Bollea to the Debtors' motion
seeking from the U.S. Bankruptcy Court approval of procedures
governing the bidding, auction, and sale of their assets.
As previously reported by The Troubled Company Reporter, citing
Daily Bankruptcy Review, lawyers for Hulk Hogan, whose real name is
Terry G. Bollea, say creditors of Gawker Media Group, not new
owners of the online publishing operation, should have the right to
sue suppliers in Gawker's bankruptcy case.
According to the report, the former professional wrestler filed a
challenge to Gawker's plan to sell itself to Ziff Davis or a higher
bidder at a bankruptcy auction on the grounds the sale unfairly
trades away potentially valuable rights. Mr. Bollea won a $140
million judgment against Gawker and its CEO Nick Denton due to the
release of a sex tape, pushing the company to file for chapter 11
bankruptcy, the report related. Ziff Davis has offered to buy the
Gawker publications, which publish "news, scandal and
entertainment" under such banners as Gizmodo, Jalopnik and Jezebel,
the report further related.
In their response, the Debtors argued that the principal concern
raised in the Limited Objection is that the Debtors should not sell
avoidance actions that relate to (1) any intercompany agreements
and transfers between the Debtors, and (2) any payments to insiders
of any of the Debtors. Indeed, the Stalking Horse APA specifically
excludes the transfer of the Insider Avoidance Actions to the
Buyer, "any intercompany payment[s] due to a Seller from any other
Seller" are "Excluded Assets," which are not transferred to the
Buyer," the Debtors point out.
The Debtors further argued state that the Avoidance Actions being
transferred are those "claims, rights or causes of action under
Chapter 5 of the Bankruptcy Code or any analogous state law claims,
in each case, that relate to the Acquired Assets," which is
designed to inure to the benefit of unsecured creditors by
maximizing the purchase price for the Acquired Assets because the
Debtors are being sold as a going concern -- the preservation of
relationships with the Debtors' vendors is crucial."
The Debtors tell the Court that the sale of the Avoidance Actions
must not be viewed in isolation, but rather as part of a Stalking
Horse APA that, if consummated, will bring $90 million of value
into the Debtors' estates, continue the Debtors' businesses, and
preserve the jobs of substantially all of the Debtors' employees.
The Debtors and the Stalking Horse Bidder negotiated the terms of
the Stalking Horse APA to ensure that those parties would not be
subject to post-closing litigation that could significantly harm
those relationships and, in turn, the viability of the Debtors’
businesses.
The Debtors intend to file a revised proposed Sale Order further
clarifying that the Insider Avoidance Actions shall not be
transferred to the Successful Bidder.
The Court will adjourn on July 7, 2016, to consider entry of the
Bidding Procedures and APA Assumption Order.
Proposed Counsel to Gawker Media LLC, et al.:
Gregg M. Galardi, Esq.
Jonathan P. Gill, Esq.
Marc B. Roitman, Esq.
Kristina K. Alexander, Esq.
ROPES & GRAY LLP
1211 Avenue of the Americas
New York, NY 10036-8704
Telephone: (212) 596-9000
Facsimile: (212) 596-9090
Email: gregg.galardi@ropesgray.com
jonathan.gill@ropesgray.com
marc.roitman@ropesgray.com
kristina.alexander@ropesgray.com
About Gawker Media
Founded in 2002 by Nick Denton, Gawker Media is privately held
online media company operating seven distinct media brands with
corresponding websites under the names Gawker, Deadspin,
Lifehacker, Gizmodo, Kotaku, Jalopnik, and Jezebel. The Company's
various Websites cover, among other things, news and commentary on
current events, politics, pop culture, sports, cars, fashion,
productivity, technology and video games.
Gawker sought bankruptcy protection after being ordered to pay
$140.1 million in connection with an invasion of privacy lawsuit
arising from publication of a report and commentary and
accompanying sex video involving Terry Gene Bollea.
New York-based Gawker Media, LLC -- fdba Gawker Sales, LLC, Gawker
Entertainment, LLC, Gawker Technology, LLC and Blogwire, Inc. --
filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No.
16-11700) on June 10, 2016. The Hon. Stuart M. Bernstein presides
over the Debtors' cases.
Affiliates Gawker Media Group, Inc. and Budapest, Hungary-based
Kinja, Kft. filed separate Chapter 11 petitions (Bankr. S.D.N.Y.
Case Nos. 16-11719 and 16-11718) on June 12, 2016.
The cases are jointly administered.
Gregg M. Galardi, Esq., David B. Hennes, Esq. and Michael S.
Winograd, Esq., at Ropes & Gray LLP serve as counsel to the
Debtors. William Holden at Opportune LLP serves as Gawkers' chief
restructuring officer. Houlihan Lokey Capital, Inc. serves as the
Debtors' investment banker. Prime Clerk LLC serves as claims,
balloting and administrative agent.
Houlihan Lokey was retained by the Debtors on May 16, 2016, to
explore the possibility of a sale of all or substantially all of
the Debtors' assets, with the goal of maximizing return to the
Debtors' estates in the event of a possible chapter 11 filing.
The Debtors estimated $50 million to $100 million in assets and
$100 million to $500 million in liabilities.
GEIGER DEVELOPMENT: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------------
The Office of the U.S. Trustee disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Geiger Development, Inc.
Geiger Development, Inc., based in Friedens, Pa., filed a Chapter
11 petition (Bankr. W.D. Pa. Case No. 16-70427) on June 2, 2016.
The Hon. Jeffery A. Deller presides over the case. Robert O Lampl,
Esq., serves as counsel to the debtor. In its petition, the Debtor
estimated $1 million to $10 million in both assets and liabilities.
The petition was signed by Larry Mostoller, Jr.,
secretary/treasurer.
GOLDEN MARINA: Wants Plan Filing Deadline Moved to Oct. 4
---------------------------------------------------------
Golden Marina Causeway LLC asks the Hon. Donald R. Cassling of the
U.S. Bankruptcy Court for the Northern District of Illinois to
extend the exclusivity period under Sections 1121(b) and (c)(2) to
Oct. 4, 2016, the exclusivity period under Section 1121(c)(3) to
Dec. 5, 2016, and the deadline to file a plan and disclosure
statement to Oct. 4, 2016.
A hearing on the request is set for July 5, 2016, at 9:30 a.m.
The Court previously extended the deadline to file a plan and
disclosure statement, as well as the exclusivity period. The
current deadline for both is July 3, 2016. So that the Debtor may
complete its sale process prior to the plan process, the Debtor
requests a three-month extension of the deadline to file its plan
and disclosure statement and of the exclusivity period.
The Debtor is in the midst of pursuing the sale of its major asset.
The deadline set by this Court to file the plan and disclosure
statement, however, is fast approaching, and the exclusivity period
under Section 1121 will expire soon too. So that it may complete
the sale process prior to the plan process, the Debtor requests a
three-month extension of the exclusivity periods and the deadline
to file its plan and disclosure statement.
On May 17, 2016, the Debtor filed a motion for post-petition
financing, and to sell its major asset. Several parties in
interest objected to that motion, and the Debtor ultimately
withdrew it. Since then, the Debtor has been working to finalize a
deal with another prospective buyer. The Debtor hopes to file a
motion seeking approval of that deal and an auction process soon.
The Debtor expects that the sale process will be completed in
September 2016.
The outcome of the sale will have a large effect on the Debtor's
Chapter 11 plan.
The Debtor's counsel can be reached at:
William J. Factor, Esq.
Jeffrey K. Paulsen, Esq.
FACTORLAW
105 W. Madison Street, Suite 1500
Chicago, IL 60602
Tel: (847) 239-7248
Fax: (847) 574-8233
E-mail: wfactor@wfactorlaw.com
jpaulsen@wfactorlaw.com
About Golden Marina Causeway
Golden Marina Causeway LLC owns two parcels of real estate,
located at 302 and 311 East Greenfield Avenue in Milwaukee,
Wisconsin. The parcel at 311 E. Greenfield consists of 47 acres
and the smaller parcel at 302 E. Greenfield is approximately 1
acre.
Lawrence D. Fromelius filed a Chapter 11 petition (Bankr. N.D. Ill.
Case No. 15-22373) on June 29, 2015. On July 2, 2015, L. Fromelius
Investment Properties LLC filed a petition for relief under Chapter
11 of the Bankruptcy Code under Case No. 15-22943, and on Feb. 5,
2016, Golden Marina Causeway LLC filed for relief under Chapter 11,
under Case No. 16-03587.
Mr. Fromelius is the sole member of Investment Properties. He is
also the sale member of East Greenfield Investors LLC, which in
turn is the sole member of Golden Marina Causeway LLC.
GREIF INC: Egan-Jones Lowers FC Sr. Unsecured Rating to BB
----------------------------------------------------------
Egan-Jones Ratings Company downgraded the foreign currency senior
unsecured rating on debt issued by Greif Inc. to BB from BB+ on
June 23, 2016.
Greif, Inc. is an American manufacturing company based in Delaware,
Ohio.
HEARTLAND DAIRY: Hires Haller & Colvin as Attorneys
---------------------------------------------------
Heartland Dairy Holdings LLC seeks authorization from the U.S.
Bankruptcy Court for the Northern District of Indiana to employ
Haller & Colvin, PC, as attorneys.
The Debtor has selected Haller & Colvin for the reason that they
have considerable experience in chapter 11 proceedings and their
services are necessary for the effective operation and
rehabilitation of the Debtor.
Haller & Colvin was employed by the Debtor during the 12 months
prior to the bankruptcy filing date. During the time, the Debtor
has paid the firm $15,751.50 for prepetition services; there is no
balance due to be paid the firm for those services.
Daniel J. Skekloff, member of Haller & Colvin, PC, assured the
Court that the firm does not represent any interest adverse to the
Debtors and their estates.
Haller & Colvin may be reach at:
Daniel J. Skekloff
Haller & Colvin, PC
444 E. Main Street,
Fort Wayne, Indiana 46802
Telephone: (260) 426-0444
Fax: (260)422-0274
E-mail: dskekloff@hallercolvin.com
About Heartland Diary Holdings, LLC
Heartland Diary Holdings, LLC filed a Chapter 11 bankruptcy
petition (Bankr. C.D. Cal. Case No. 16-11273) on June 17, 2016.
Hon. Robet E. Grant presides over the case. Haller & Colvin, PC
represents the Debtor as counsel. In its petition, the Debtor
estimated $1 million to $10 million in both assets and
liabilities. The petition was signed by John W. Glessner, member.
HILLCREST ACADEMY: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Hillcrest Academy, Inc.
dba Hillcrest Academy Charter School
4710 E. Baseline Road
Mesa, AZ 85206
Case No.: 16-07432
Chapter 11 Petition Date: June 29, 2016
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Hon. Madeleine C. Wanslee
Debtor's Counsel: Donald W. Powell, Esq.
CARMICHAEL & POWELL, P.C.
7301 N. 16th St., #103
Phoenix, AZ 85020
Tel: 602-861-0777
Fax: 602-870-0296
E-mail: d.powell@cplawfirm.com
Estimated Assets: $10 million to $50 million
Estimated Debts: $10 million to $50 million
The petition was signed by Danielle Connolly, president.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
HISTORIC TIMBER: Taps Mathis Marifian as Legal Counsel
------------------------------------------------------
Historic Timber & Plank, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of Illinois to hire
Mathis, Marifian & Richter, Ltd.
The Debtor tapped the firm to provide legal services in connection
with its Chapter 11 case:
(a) appear on behalf of Debtor and pursue the recovery of the
assets;
(b) appear for, prosecute, defend and represent the Debtor's
interest in motions and proceedings related to its case;
(c) investigate and prosecute preferences and other actions;
(d) formulate a plan of reorganization; and
(e) assist in the preparation of schedules, statements of
financial affairs, pleadings, motions, notices and orders
as required for the orderly administration of the
Debtor's estate.
The firm's hourly billing rates range from $200 to $265 for
partners, $100 to $200 for associates, and $50 to $150 per hour for
paraprofessionals.
Mary Lopinot, Esq., a member of Mathis, disclosed in a court filing
that the firm is "disinterested" as defined in section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Mary E. Lopinot
Mathis, Marifian, & Richter, Ltd
23 Public Square, Suite 300
Belleville, IL 62220
Tel: (618) 234-9800
Fax: (618) 234-9786
E-mail: mlopinot@mmrltd.com
About Historic Timber
Historic Timber & Plank, Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S. D. Ill. Case No. 16-31007) on June
28, 2016. The petition was signed by Joseph Adams, president.
The case is assigned to Judge William V. Altenberger.
At the time of the filing, the Debtor estimated its assets at $0 to
$50,000 and debts at $1 million to $10 million.
IAMGOLD CORP: Egan-Jones Assigns 'B' Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company assigned B senior unsecured ratings on
debt issued by IAMGOLD Corp. on June 24, 2016.
Iamgold Corporation is a Toronto based international gold producer.
The company is engaged in the exploration, development, and
production of mineral resource properties throughout the world.
IHEARTCOMMUNICATIONS INC: No Agreement Yet on Credit Amendment
--------------------------------------------------------------
On March 7, 2016, iHeartCommunications, Inc. initiated an action
against, among others, certain holders of the Company's senior
secured indebtedness, which is styled iHeartCommunications, Inc.,
f/k/a Clear Channel Communications, Inc. v. Benefit Street Partners
LLC, et al., and is pending in the 285th Judicial District, Bexar
County, Texas, as Cause No. 2016 CI 04006. The Texas Litigation
related to the contribution on Dec. 3, 2015, of 100,000,000 shares
of Class B common stock of Clear Channel Outdoor Holdings, Inc.,
from Clear Channel Holdings, Inc., one of the Company's
wholly-owned subsidiaries that is a "restricted subsidiary" under
the Company's various debt documents, to Broader Media, LLC, one of
the Company's wholly-owned subsidiaries that is an "unrestricted
subsidiary" under the Company's various debt documents. Certain of
the Holders alleged that the Contribution violated certain
covenants in certain of the Company's priority guarantee note
indentures and issued notices of default on March 7, 2016.
The Texas Court held a bench trial on the merits from May 16
through May 20, 2016. On May 24, 2016, the Texas Court signed the
Final Judgment Granting Declaratory Judgment And Permanent
Injunction, which, among other things, granted the Company's
amended petition seeking a declaratory judgment, finding that the
Contribution did not violate the indentures governing the priority
guarantee notes, and that the Company was not in default under
those indentures as a result of the Contribution. The Texas Court
further granted the Company's request for a permanent injunction,
permanently rescinded the Notices of Default, and enjoined the
defendants from further issuing or threatening to issue Notices of
Default as a result of the Contribution. The ruling is still
subject to appeal, though none has been filed as of June 28, 2016.
As previously disclosed, the Company has from time to time engaged
in discussions with certain of its debt holders, including the
Holders, in connection with the dispute subject to the Texas
Litigation and in connection with exploring possible alternatives
to the terms of the Company's existing senior secured indebtedness.
In connection with these discussions, the Com
The discussions subject to the NDAs involved continued negotiations
with respect to various proposals to amend the terms of the
Company's credit agreement and, through a series of exchange
offers, the priority guarantee note indentures. On
June 15, 2016, the Company provided certain Holders with a
proposal. On June 22, 2016, certain Holders provided the Company
with a counterproposal. On June 27, 2016, the Company provided
certain Holders with an amended proposal. As of June 28, 2016, the
Company had not provided such Holders with, nor had it provided
such Holders access to, confidential information. Given the
significant gap between the proposals, the Company is assessing
whether it will continue discussions.
No agreement has been reached with respect to the above
discussions. There can be no assurance that any agreement will be
reached. Any such agreement would be subject to the negotiation
and execution of definitive documentation, which may require the
consent of additional debt holders who are not party to the
negotiations, and who hold substantial percentages of the Company's
debt, according to a regulatory filing with the Securities and
Exchange Commission.
About iHeartCommunications
iHeartCommunications, Inc., (formerly known as Clear Channel
Communications, Inc.) is a global media and entertainment company.
The Company specializes in radio, digital, outdoor, mobile,
social, live events, on-demand entertainment and information
services for local communities, and uses its unparalleled national
reach to target both nationally and locally on behalf of its
advertising partners. The Company is dedicated to using the
latest technology solutions to transform the company's products
and services for the benefit of its consumers, communities,
partners and advertisers, and its outdoor business reaches over 40
countries across five continents, connecting people to brands
using innovative new technology.
IheartCommunications reported a net loss attributable to the
Company of $755 million on $6.24 billion of revenue for the year
ended Dec. 31, 2015, compared to a net loss attributable to the
Company of $793.76 million on $6.31 billion of revenue for the
year ended Dec. 31, 2014. As of Dec. 31, 2015, the Company had
$13.8 billion in total assets, $24.4 billion in total liabilities
and a total shareholders' deficit of $10.6 billion.
Bankruptcy Warning
"The ability to refinance the debt will depend on the condition of
the capital markets and our financial condition at such time.
Any refinancing of the debt could be at higher interest rates and
increase debt service obligations and may require us and our
subsidiaries to comply with more onerous covenants, which could
further restrict our business operations. The terms of existing
or future debt instruments may restrict us from adopting some of
these alternatives. These alternative measures may not be
successful and may not permit us or our subsidiaries to meet
scheduled debt service obligations. If we or our subsidiaries
cannot make scheduled payments on indebtedness, we or our
subsidiaries, as applicable, will be in default under one or more
of the debt agreements and, as a result we could be forced into
bankruptcy or liquidation," the Company said in its annual report
for the year ended Dec. 31, 2015.
* * *
iHeartCommunications carries a 'CCC' Issuer Default Ratings (IDR)
from Fitch Ratings and a 'Caa2 Corp." corporate family rating from
Moody's Investors Service.
INTREPID POTASH: Reaches Agreement to Extend Debt Covenant Waiver
-----------------------------------------------------------------
Intrepid Potash Inc. on June 30, 2016, disclosed that it has
reached an agreement to further extend the previously announced
waiver of the financial covenants for the first quarter of 2016
under its
long-term unsecured senior notes until July 15, 2016. The previous
waiver from the noteholders would have expired on June 30, 2016.
"We believe we have made good progress in the negotiations with our
noteholders to date and are working towards a resolution to our
debt covenant issues," said Bob Jornayvaz, Intrepid's Executive
Chairman, President and CEO. "We appreciate the additional time
this waiver provides to complete our negotiations."
Intrepid's long-term unsecured senior notes consist of three series
totaling $150 million with laddered maturities beginning in 2020.
Intrepid also maintains a revolving credit facility of $8 million,
which may only be used for letters of credit. The credit facility
matures on the earlier of July 31, 2016, and the date on which the
aggregate commitment under the credit facility is reduced to zero.
Compliance with the revolving credit facility covenants for the
first quarter of 2016 was previously waived until July 31, 2016,
provided no earlier event of default occurs with the senior notes.
About Intrepid
Intrepid Potash -- http://www.intrepidpotash.com-- is the only
U.S. producer of muriate of potash and supplied approximately 9% of
the country's annual consumption in 2015. Potash is applied as an
essential nutrient for healthy crop development, utilized in
several industrial applications and used as an ingredient in animal
feed. Intrepid also produces a specialty fertilizer, Trio(R),
which delivers three key nutrients, potassium, magnesium, and
sulfate, in a single particle.
Intrepid serves diverse customers in markets where a logistical
advantage exists; and is a leader in the utilization of solar
evaporation production, one of the lowest cost, environmentally
friendly production methods for potash. After the idling of its
West mine in July 2016, Intrepid's production will come from three
solar solution potash facilities and one conventional underground
Trio(R) mine.
INVERRARY RESORT HOTEL: Seeks to Hire Hunter Realty as Broker
-------------------------------------------------------------
The Inverrary Resort Hotel Condominium Association, Inc. seeks
approval from the U.S. Bankruptcy Court for the Southern District
of Florida to hire Hunter Realty Associates, Inc. as its broker.
The Debtor tapped the firm in connection with the sale of Inverrary
Resort, a resort hotel it owns located in Lauderhill, Florida.
Hunter will receive a commission, which is 3% of the total sales
price, plus an additional 1% if a cooperating broker is involved in
the sale.
Robert Hunter, chief executive officer of Hunter, disclosed in a
court filing that the firm does not hold or represent any interest
adverse to the Debtor's estate.
A Meeting of Creditors under 11 U.S.C. Sec. 341 had been scheduled
for June 27, 2016.
About the Inverrary Association
The Inverrary Resort Hotel Condominium Association, Inc., Nirvana
Inverrary Lofts, Inc., and Alrames S.A.de C.V. Corp. filed
voluntary chapter 11 petitions (Bankr. S.D. Fla. Case Nos.
16-17792, 16-17799 and 16-17802) on May 31, 2016. The three
Debtors are represented in their jointly administered cases by
Jason Slatkin, Esq., at Slatkin & Reynolds, P.A., in Ft.
Lauderdale. At the time of the filings each single asset real
estate Debtor estimated its assets at less than $50,000 and its
debts at more than $1 million.
ISLE OF CAPRI CASINOS: Egan-Jones Hikes FC Sr. Unsec. Rating to B
-----------------------------------------------------------------
Egan-Jones Ratings Company raised the foreign currency senior
unsecured rating on debt issued by Isle of Capri Casinos Inc. to B
from B- on June 27, 2016.
Isle of Capri Casinos, Inc. is a gaming company headquartered in
Creve Coeur, Missouri, in Greater St. Louis, which operates casinos
and associated entertainment and lodging facilities in the United
States.
J L LEASING: Sells 2011 Kenworth T800 Tractor for $68K
------------------------------------------------------
J L Leasing & Transportation, Inc., asks the U.S. Bankruptcy Court
for the Western District of Washington, Seattle Division, to
approve the sale of its 2011 Kenworth Model T800 Tractor bearing
VIN No. 1XKDD49X2BJ279238 that is encumbered by Wells Fargo, the
secured creditor that holds title, for $68,000 and will be paid to
Wells Fargo.
A hearing for the Motion is set for July 21, 2016 at 9:00 a.m. The
response deadline is July 14, 2016.
The Debtor, a trucking company, became involved in expensive
factored financing of its accounts receivable with Riviera Finance
and Summit Financial in 2014 and Capital Credit in early 2015.
During the time that Debtor made the decision to stop using
factored financing, it had serious cash flow problems and taxes
were not timely paid or in some cases not paid at all in late 2014
and 2015. Debtor has negotiated approximately 12 agreements with
equipment lenders and vendors restructuring payments on secured
debt, one of which was with Wells Fargo.
The Debtor has determined that it is in the best interests of the
bankruptcy estate to sell the Tractor and to pay off the related
secured obligation to Wells Fargo. Pursuant to the terms of the
Wells Fargo stipulation, the Debtor can sell the truck with its
approval and re-amortize remaining debt. Any sale proceeds in
excess of the payoff of the Tractor will be applied to reduce other
cross-collateralized Wells Fargo debt.
J L Leasing & Transportation's attorney:
Danial D. Pharris
LASHER HOLZAPFEL SPERRY & EBBERSON, P.L.L.C.
601 Union Street, Suite 2600
Seattle, WA 98101-4000
Telephone: (206) 624-1230
Facsimile: (206) 340-2563
E-mail: pharris@lasher.com
About J L Leasing & Transportation
J L Leasing & Transportation is a trucking company, incorporated in
Washington on Dec. 13, 2001 and it is headquartered in Enumclaw,
Washington. Prior to that time the business was a sole
proprietorship operated by Frank Letourneau's father and mother
since approximately 1993. J L Leasing's primary trucking
activities are in the state of Washington including container
shipping for companies importing and exporting goods through the
ports of Washington, Oregon and British Columbia, and transporting
produce and other commodities in Washington, Oregon and British
Columbia.
J L Leasing & Transportation sought Chapter 11 protection (Bankr.
W.D. Wash. Case No. 15-13813) on June 23, 2015. The petition was
submitted by Jutta Letourneau, CEO and Sole Member Board of
Directors. The Debtor estimated assets in the range of $0 to
$50,000 and $500,000 to $1,000,000 in debt. Lasher Holzapfel
Sperry & Ebberson PLLC serves as counsel.
JOHN A. RITTER: U.S. Trustee Forms 5-Member Committee
-----------------------------------------------------
Tracy Hope Davis, U.S. trustee for Region 17, on June 28 appointed
five creditors to serve on the official committee of unsecured
creditors in the Chapter 11 cases of John Ritter and the 12
companies he manages.
The committee members are:
(1) Multibank 2009-1 RES-ADC Venture, LLC
Attn: Michael Strickland
7000 Central Parkway NE, Suite 700
Atlanta, Georgia 30328
(2) Branch Banking & Trust Co.
Attn: William M. Conges
200 West Second Street, 3rd Floor
Winston-Salem, NC 27101
(3) Boyd Family Partnership LP
Attn: Bradley Boyd, GP
1645 Village Center Cir.
Las Vegas, Nevada 89134
(4) SV Litigation SPE LLC
Attn: Jacques Massa, Managing Member
c/o Michael Mazur
Mazur & Brooks, a PLC
2355 Red Rock St., Suite 100
Las Vegas, Nevada 89146
(5) Dermody Family Trust
Attn: Patrick Dermody, Trustee
954 Roseberry Drive
Las Vegas, Nevada 89138
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 John A. Ritter
Certain alleged creditors of John A. Ritter, on February 29, 2016,
filed an involuntary bankruptcy petition against him under chapter
7 of the Bankruptcy Code. Mr. Ritter opposed that petition.
However, following discussions with the petitioning creditors, he
agreed to entry of an order for relief against him under chapter 11
of the Bankruptcy Code.
Agave Properties, LLC, and its 11 affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev., Case No.
16-13338) on June 17, 2016. The petition was signed by John A.
Ritter, manager. The bankruptcy cases are jointly administered
under Mr. Ritter's Chapter 11 case, Case No. 16-10933.
The cases are assigned to Judge Mike K. Nakagawa.
At the time of the filing, Agave Properties and its 11 affiliates
estimated their assets at $10 million to $50 million and
liabilities at $100 million to $500 million.
JOHN Q. HAMMONS: Kroll Bond Rating Agency Monitors Bankruptcy
-------------------------------------------------------------
Kroll Bond Rating Agency (KBRA) is monitoring the John Q. Hammons
Hotels & Resorts (JQH) bankruptcy following the company's
announcement that it, along with its affiliates, filed for Chapter
11 bankruptcy protection on June 26, 2016.
KBRA has identified five loans across ten CMBS transactions with an
aggregate balance of $690 million that are impacted by the filing.
Of the ten securitizations, four are rated by KBRA. At this time,
KBRA is not placing any ratings from the securitizations on Watch,
but will continue to follow the filing and the performance of the
related loans. The four transactions are exposed to two loans, one
of which is a pari passu split loan that was contributed to three
of the four KBRA rated deals, as well as a non-KBRA rated
securitization. The KBRA rated transactions were all securitized
last year, and include GSMS 2015-GC34, GSMS 2015-GS1, CGCMT
2015-GC35 and WFCM 2015-C26. The exposures to JQH in these
transactions range from 3.0% to 8.5% of the related pool balances.
John Q. Hammons Hotels & Resorts was formed by John Q. Hammons in
1969 and currently oversees a portfolio of hotels under the
Carlson, Hilton, InterContinental, Marriott, Starwood and Wyndham
Brands.
About Kroll Bond Rating Agency
KBRA -- http://www.kbra.com/-- is registered with the U.S.
Securities and Exchange Commission as a Nationally Recognized
Statistical Rating Organization (NRSRO). In addition, KBRA is
recognized by the National Association of Insurance Commissioners
(NAIC) as a Credit Rating Provider (CRP).
About John Q. Hammons Hotels & Resorts
Springfield, Mo.-based John Q. Hammons Hotels & Resorts (JQH) --
http://www.jqhhotels.com/-- is a private, independent owner and
manager of hotels in the United States, representing brands such
as: Marriott, Hilton, Embassy Suites by Hilton, Sheraton, IHG,
Chateau on the Lake Resort / Spa & Convention Center, and Plaza
Hotels Collection. It has portfolio of 35 hotels representing
approximately 8,500 guest rooms/suites in 16 states.
KATOURA INC: Hires Joel M. Aresty as Attorney
---------------------------------------------
Katoura Inc., seeks authorization from the U.S. Bankruptcy Court
for the Southern District of Florida to employ Joel M. Aresty of
the law firm Joel M. Aresty, P.A. as attoreny.
The Debtor requires Joel M. Aresty to:
a. give advice to the debtor with respect to its powers and
duties as a debtor in possession and the continued management of
its business operations;
b. advise the debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
c. prepare motions, pleadings, orders, applications, adversary
proceedings, and other legal documents necessary in the
administration of the case;
d. protect the interest of the debtor in all matters pending
before the court;
e. represent the debtor in negotiation with its creditors in
the preparation of a plan.
No prepetition fees or costs are owing. Mike Kattoua, the Debtor's
President, is paying costs and fees outside the estate due to lack
of funds in the estate.
Joel M. Aresty, Esq., assures the Court that his firm does not
represent any interest adverse to the Debtors and their estates.
Joel M. Aresty, PA may be reached at:
Joel M. Aresty, Esq.
Joel M. Aresty, PA
309 1st Avenue S
Tierra Verde, FL 33715
Phone: 305-904-1903
Fax: 877-350-9402
E-mail: aresty@mac.com
About Katoura Inc.
Katoura Inc., filed a Chapter 11 bankruptcy petition (Bankr. S.D.
Fla. Case No. 16-18005) on June 3, 2016. Joel M. Aresty, Esq., at
Joel M. Aresty PA as bankruptcy counsel.
KDA GROUP: Ga. Courts Remands Suit vs Yellowbookpages.com
---------------------------------------------------------
The Court of Appeals of Georgia has remanded the case captioned KDA
GROUP, INC. v. YELLOWBOOKPAGES.COM LLC et al., A16A0855 (Ga. Ct.
App.) to the trial court pending resolution of KDA Group, Inc.'s
bankruptcy petition filed in the Bankruptcy Court for the Western
District of Pennsylvania.
A full-text copy of the appellate court's June 24, 2016 order is
available at https://is.gd/NF2nmh from Leagle.com.
About KDA Group
Headquartered in Pittsburgh, Pennsylvania, KDA Group, Inc., filed
for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No.
16-21821) on May 12, 2016, estimating its assets at between
$100,000 and $500,000 and liabilities at between $10 million and
$50 million. The petition was signed by Nicholas D. E. Barran,
authorized representative.
Judge Gregory L. Taddonio presides over the case.
Donald R. Calaiaro, Esq., at Calaiaro Valencik serves as the
Debtor's bankruptcy counsel.
KDA GROUP: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------
The Office of the U.S. Trustee disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of KDA Group, Inc.
About KDA Group
Headquartered in Pittsburgh, Pennsylvania, KDA Group, Inc., filed
for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No.
16-21821) on May 12, 2016, estimating its assets at between
$100,000 and $500,000 and liabilities at between $10 million and
$50 million. The petition was signed by Nicholas D. E. Barran,
authorized representative.
Judge Gregory L. Taddonio presides over the case.
Donald R. Calaiaro, Esq., at Calaiaro Valencik serves as the
Debtor's bankruptcy counsel.
KIPIN INDUSTRIES: Prism Response Leaves Creditors' Committee
------------------------------------------------------------
Andrew Vara, acting U.S. trustee for Region 3, on June 28 announced
that Prism Response, Inc., is no longer a member of the official
committee of unsecured creditors of Kipin Industries, Inc.
The remaining members of the committee are:
(1) Heights Plaza Materials, Inc.
124 Pulaski Drive
Natrona Heights, PA 15065
Attn: John E. Marino, President
Tel. (724) 224-6113
Fax (724) 224-3555
hpminc@comcast.net
(2) Smalis, Inc.
P.O. Box 412, 223 Marginal Rd.
New Stanton, PA 15672
Attn: Doug Smalis, President
Tel. (724) 925-8500
About Kipin Industries
Kipin Industries, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Penn. Case No. 16-21164) on March 30,
2016. The Debtor is represented by Edgardo D. Santillan, Esq., at
Santillan Law Firm, PC.
LIVE NATURALLY: Taps McCraw Law Firm as Special Counsel
-------------------------------------------------------
Live Naturally, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of North Carolina to hire The McCraw Law
Firm, PLLC as its special counsel.
The firm will represent Live Naturally in a case filed by Carolina
Parkway, LLC against the Debtor. The case is pending in
Mecklenburg County, Superior Court Division.
Jeffrey McCraw, Esq., at McCraw Law Firm, disclosed in a court
filing that the firm does not hold or represent any interest
adverse to the Debtor or its estate.
The firm can be reached through:
Jeffrey McCraw
The McCraw Law Firm, PLLC
129 West Trade Street Suite 1505
Charlotte, NC 28202
Tel: 704-621-4443
About Live Naturally
Live Naturally LLC filed a Chapter 11 petition (Bankr. W.D.N.C.
Case No. 16-30739) on Chapter 11 Petition filed May 2, 2016.
LONGVIEW POWER: S&P Lowers Rating on $300MM Facility to 'B'
-----------------------------------------------------------
S&P Global Ratings lowered its rating on Longview Power LLC's
$300 million senior secured term loan B facility due 2021 and
$25 million revolving credit facility due 2020 to 'B' from 'B+'.
The outlook is negative.
The recovery rating on this debt remains '2', and indicates that
lenders can expect to realize substantial recovery (70%-90%, at the
low end of the range) of principal in a default scenario.
The Longview Power project includes the 700 megawatt coal-fired
Longview Power plant and associated coal production and supply
operations of Mepco Holding. "The rating downgrade on Longview
Power LLC reflects ongoing weak energy market conditions in the PJM
Interconnection and the possibility that the project could breach
its financial covenants within 12 months," said S&P Global Ratings
credit analyst Kimberly Yarborough. DSCRs have fallen well below
our prior expectations due to persistently low power prices and we
think that these market conditions will continue.
The negative outlook reflects S&P's view that the project may
breach its financial covenant of 1.10x DSCR when this metric begins
to be enforced in the fourth quarter of 2016 and beyond. Further,
low power prices, mild weather, and weak demand growth in the PJM
could also lead to lower power prices; such a scenario would result
in lower DSCRs and heightened refinancing risk, potentially
triggering a downgrade.
Events that could lead to a downgrade include S&P's assessment that
a covenant breach would be more likely. This could occur if DSCRs
fall below 1.10x, power prices decrease, or lower-than-expected
dispatch of the plants results in weaker DSCRs prior to debt
maturity and thus a higher cost to refinance debt. S&P could also
lower the rating if operational performance is materially below its
expectations, though we think this development is remote.
S&P could revise the outlook to stable if it considered the
potential for a covenant default to be more remote and market
conditions recover such that S&P expected an improvement in minimum
DSCR to above 1.3x.
LOS ANGELES GUILD: Case Summary & 20 Top Unsecured Creditors
------------------------------------------------------------
Debtor: Los Angeles Guild LLC
3437 West El Segundo Blvd
Los Angeles, CA 90250
Case No.: 16-42890
Chapter 11 Petition Date: June 29, 2016
Court: United States Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Hon. Carla E. Craig
Debtor's Counsel: Matthew C. Heerde, Esq.
LAW OFFICE OF MATTHEW C. HEERDE
222 Broadway, 19th Floor
New York, NY 10038
Tel: 347-460-3588
Fax: 347-535-3588
E-mail: mheerde@heerdelaw.com
- and -
Jeb Singer, Esq.
LAW OFFICE OF MATTHEW C. HEERDE
222 Broadway, 19th Floor
New York, NY 10038
Tel: (917) 806-5832
E-mail: jsinger@heerdelaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Peter Brown, managing member.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/nyeb16-42890.pdf
M SPACE HOLDINGS: Has $1.2M Stalking Horse Deal with VESTA
----------------------------------------------------------
M Space Holdings, LLC, asks the U.S. Bankruptcy Court for the
District of Utah to authorize the sale of certain modular units and
other assets ("Assets") to VESTA Housing Solutions, LLC for $
1,200,000, subject to higher or better offers. VESTA will assume
all unexpired leases and executory contracts related to the assets,
and all secured parties will provide appropriate lien releases.
Pursuant to the bid procedures, interested parties are required to
submit initial bids by July 1, 2016, at 4:00 p.m. (prevailing
Mountain time). If the Debtor receives at least one qualified bid,
in addition to VESTA's, an auction will take place on July 6, 2016,
at 9:30 a.m.
The sale hearing is scheduled for July 12, 2016 at 2:00 p.m.
The Debtor is a provider of turnkey complex modular space solutions
for rent and sale whose primary client bases are schools and the
oil industry.
The Court entered the Cash Collateral Order on May 25, 2016, and
pursuant to the Cash Collateral Budget, the Debtor must realize
approximately $10,500,000 in sales proceeds by June 30,2016 to
avoid an event of default.
On May 24, 2016, the Court approved the retention and employment of
Gordon Brothers Commercial & Industrial, LLC ("GB") as the Asset
Liquidator for the Debtor. GB estimates the value of the Assets at
$1,322,905.
The Debtor has sound business reasons for the proposed sale, which
was evaluated and recommended by GB. The Debtor has concluded that
a prompt sale of the Assets is necessary to avoid an event of
default under the Cash Collateral Order and to maximize the value
of its assets for the benefit of creditors and the estate. A sale
by auction, using reasonable procedures as set forth in the Bid
Procedures, presents the best opportunity to realize the maximum
value of the Assets.
GB will be paid a commission and its expenses from the proceeds of
the proposed sale. All remaining sales proceeds will be disbursed
pursuant to the Interim Order Authorizing Debtor's Use of
Collateral and Cash Collateral and Granting Adequate Protection
Claim and Lien and any final order related thereto.
A copy of the Sales Agreement, the list of the Debtor's Assets to
be sold described on the Sales Agreement, and the Bidding
Procedures attached to the Motion is available for free at
http://bankrupt.com/misc/M_Space_101_Sale_M.pdf
M Space Holdings is represented by:
Sherilyn A. Olsen
Mona L. Burton
Ellen E. Ostrow
HOLLAND & HART LLP
222 S. Main Street, Suite 2200
Salt Lake City, UT 84101
Telephone: (801) 799-5800
Facsimile: (801) 799-5700
E-mail: olsen@hollandhart.com
mburton@hollandhart.com
eeostrow@hollandhart.com
About M Space Holdings
M Space Holdings, LLC, is a provider of turnkey complex modular
space solutions. M Space sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Utah Case No. 16-24384) on May 19,
2016. The petition was signed by Jeffrey Deutschendorf, chief
executive officer and president. The case is assigned to Judge
Joel T. Marker.
The Debtor tapped Holland & Hart LLP as counsel. The Debtor's
asset Liquidator is Gordon Brothers Commercial & Industrial, LLC.
The Debtor estimated assets and liabilities in the range of
$50 million to $100 million.
MARK MARTINEZ LLC: U.S. Trustee Forms 3-Member Committee
--------------------------------------------------------
The Office of the U.S. Trustee on June 28 appointed three creditors
of Mark A. Martinez, LLC, to serve on the official committee of
unsecured creditors.
The committee members are:
(1) Diamond G Inspection
Attn: Steve M. Steen
11050 West Little York, Bldg. G
Houston, TX 77041
Tel: 713/725-0591
Fax: 713/937-8148
seve4@msn.com
(2) Momentum Rental & Sales, Inc.
809 S. Hwy 35
Port Lavaca, TX 77879
Tel: 361/552-7368
Fax: 361/482-0415
Attn: Jennifer Chau
The Chau Law Firm, P.C.
P. O. Box 990
Palacios, TX 88465
Tel. 281/888-7982
Fax. 281/764-6799
jenniferchaulaw@gmail.com
(3) A1 Installations
Attn: Chris Rankin
P. O. Box 131373
The Woodlands, TX 77393
Tel. 832/283-2012
chris@a1installations.net
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 Mark A. Martinez
Mark A. Martinez, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Case No. 16-80149) on May 24,
2016, listing under $50,000 in assets and under $1 million in
liabilities.
MATT HORN: Selling Pennsylvania Property for $717,000
-----------------------------------------------------
Matt Horn and Veronica Horn, through attorney Harvey S. Barr, will
on July 11, 2016, at 10:00 a.m. will seek approval of their
application to (i) execute a deed to permit the sale of property
known as 325 Jefferis Road, Dowingtown, Pennsylvania, (ii) pay all
reasonable closing costs, outstanding real estate taxes and
expenses, and (c) retain Tom Burlington of Duffy Real Estate - St.
Davids and Jamie Wagner of Re/Max Action Associates as real estate
brokers for procuring the sale, and (d) keep $50,000 from the
closing proceeds to maintain and preserve other properties of the
estate.
At the time of the Chapter 11 filing, the Debtors were the owners
of 227 Summit Park Road, New Hempstead, New York a residence and
commercial parcel; a single family residence in Downingtown,
Pennsylvania; and a single family residence in West Dover, Vermont.
Pursuant to an order of the Court, the property on Summit Road was
foreclosed by the holder of the first mortgage, resulting in a
surplus.
At the time of the filing, the Debtors also owned a small strip of
land which was not capable of development and upon which they
formerly maintained a "billboard" for their now defunct business
known as Matterhorn Nursery, Inc. Pursuant to a Court order dated
Oct. 19, 2015, the Debtors were successful in selling this small
strip of land.
After months of negotiations the Debtors recently entered into a
Contract of Sale to sell the Pennsylvania property. The said
property consists of a 4-bedroom, 3-bathroom single family home on
two+ acres with a two-car detached garage on a public road. The
offer is $717,000, subject to overbidding.
There is due to the holder of the first mortgage approximately
$615,000, which will be paid from the sale proceeds.
According to the closing statement, the Debtors' Estate will net
approximately $3,852.
Matt Horn and Veronica Horn sought Chapter 11 protection (Bankr.
S.D.N.Y. Case No. 13-23284) on Aug. 2, 2013.
The Debtors' attorney:
Harvey S. Barr, Esq.
664 Chestnut Ridge Road
Spring Valley, NY 10977
Telephone: (845) 352-4080
MAXUS ENERGY: Hires Prime Clerk as Claims and Noticing Agent
------------------------------------------------------------
Maxus Energy Corporation and its debtor-affiliates seek permission
from the U.S. Bankruptcy Court for the District of Delaware to
employ Prime Clerk as Claims and Noticing Agent, nunc pro tunc to
June 17, 2016.
The Debtors require Prime Clerk to:
a. prepare and serve required notices and documents in these
chapter 11 cases in accordance with the Bankruptcy Code and the
Bankruptcy Rule in the form and manner directed by the Debtors
and/or the Court, including (i) notice of the commencement of these
chapter 11 cases and the initial meeting of creditors under
Bankruptcy Code 341(a), (ii) notice of any claims bar date, (iii)
notices of transfers of claims, (iv) notices of objections to
claims and objections to transfer of claims, (v) notices of any
hearings on a disclosure statement and confirmation of the Debtors'
plan or plans of reorganization, including under Bankruptcy Rule
3017(d), (vi) notice of the effective date of any plan and (vii)
all other notices, orders, pleadings, publications and other
documents as the Debtors or Court may deem necessary or appropriate
for an orderly administration of these chapter 11 cases.
b. maintain an official copy of the Debtors' schedules of
assets and liabilities and statements of financial affairs
(collectively, the "Schedules"), listing the Debtors' known
creditors and the amounts owed thereto;
c. maintain (i) a list of all potential creditors, equity
holders and other parties-in-interest and (ii) a "core" mailing
list consisting of all parties described in Bankruptcy Rule
2002(i), (j) and (k) and those parties that have file a notice of
appearance pursuant to Bankruptcy Rule 9010; update and make said
lists available upon request by a party-in-interest of the Clerk;
d. furnish a notice to all potential creditors of the last
date for filing proofs of claims and form for filing a proof of
claim, after such notice and form are approved by the Court, and
notify said potential creditors of the existence, amount and
classification of their respective claims as set forth in the
Schedules, which may be effected by inclusion of such information
(or the lack thereof, in cases where the Schedules indicate no debt
due to subject party) on a customized proof of claim form provided
to potential creditors;
e. maintain a post office box or address for the purpose of
receiving claims and returned mail, and process all mail received;
f. for all notices, motions, orders or other pleadings of
documents served, prepare and file or cause to be filed with the
Clerk an affidavit or certificate of service within seven (7)
business days of service which includes (i) either a copy of the
notice served or the docket number(s) and title(s) of the
pleading(s) served, (ii) a list of persons to whom it was mailed
(in alphabetical order) with their addresses, (iii) the manner of
service and (iv) the date served;
g. process all proof of claim received, including those
received by the Clerk, check said processing for accuracy and
maintain the original proofs of claim in a secure area;
h. maintain the official claims register for each Debtor
(collectively, "Claims Registers") on behalf of the Clerk; upon the
Clerk's request, provide the Clerk with certified, duplicate
unofficial Claims Registers; and specify in the Claims Registers
the following information for each claim docketed; (i) the claim
number assigned, (ii) the date received, (iii) the name and address
of the claimant and agent, if applicable, who filed the claim, (iv)
the amount asserted, (v) the asserted classification(s) of the
claim (e.g., secured, unsecured, priority, etc.), (vi) the
applicable Debtor and (vii) any disposition of the claim;
i. implement necessary security measures to ensure the
completeness and integrity of the Claims Registers and the
safekeeping of the original claims;
j. record all transfer of claims and provide any notices of
such transfers as required by Bankruptcy Rule 3001(e);
k. relocate, by messenger or overnight delivery, all of the
Court-filed proofs of claim to the offices of Prime Clerk, not less
than weekly;
l. upon completion of the docketing process for all claims
received to date for each case, turn over to the clerk copies of
the Claims Registers for the Clerk's review (upon the Clerk's
request);
m. monitor the Court's docket for all notices of appearance,
address changes, and claims-related pleadings and orders filed and
make necessary notations on and/or changes to the claims register
and any services or mailing lists, including to identify and
eliminate duplicative names and addresses from such lists;
n. identify and correct any incomplete or incorrect addresses
in any mailing or service lists;
o. assist in the dissemination of information to the public
and respond to requests for administrative information regarding
these chapter 11 cases as directed by the Debtors or the Court,
including through the use of as website and/or call center;
p. monitor the Court's docket in these chapter 11 cases and,
when filings are made in error or containing errors, alert the
filing party of such error and work with them to correct any such
error;
q. if the chapter 11 cases are converted to cases under
chapter 7 of the Bankruptcy Code, contact the Clerk's office within
three (3) days of notice to Prime Clerk of entry of the order
converting the cases;
r. 30 days prior to the close of these chapter 11 cases, to
the extent practicable, request that the Debtors submit to the
Court a proposed order dismissing Prime Clerk as Claims and
Noticing Agent and terminating its services in such capacity upon
completion of its duties and responsibilities and upon the closing
of these chapter 11 cases;
s. within seven days of notice to Prime Clerk of entry of an
order closing these chapter 11 cases, provide to the Court the
final version of the Claims Registers as of the date immediately
before the close of the chapter 11 cases; and
t. at the close of these chapter 11 cases, (i) box transport
all original documents, in proper format, as provided by the
Clerk's office, to (A) the Philadelphia Federal Records Center,
14700 Townsend Road, Philadelphia, PA 19154 or (B) any other
location requested by the Clerk's office; and (ii) docket a
completed SF-135 Form indicating the accession and location numbers
of the archived claims.
The fees and expenses incurred by Prime Clerk in the performance of
the above services be treated as administrative expenses of the
Debtors' estate pursuant to 28 U.S.C. 156(c) and 503(b)(1)(A) of
the Bankruptcy Code, and be paid in the ordinary course of business
without further application to, or order of, the Court.
Prior to the Petition Date, the Debtors provided Prime Clerk a
retainer in the amount of $50,000.
Michael J. Frishberg, Co-President and Chief Operating Officer of
Prime Clerk LLC, assured the Court that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code and does not represent any interest adverse to
the Debtors and their estates.
Prime Clerk may be reached at:
Michael J. Frishberg
830 Third Avenue, 9th Floor
New York, New York 10022
Tel.: 212 257 5450
E-mail: mfrishberg@primeclerk.com
Maxus Energy Corporation and four of its subsidiaries filed
voluntary petitions for reorganization under Chapter 11 (Bankr. D.
Del., Case No. 16-11501) on June 17, 2016. The Debtors intend to
use the breathing spell afforded by the Bankruptcy Code to decide
whether their existing environmental remediation operations and oil
and gas operations can be restructured as a sustainable,
stand-alone enterprise.
The Debtors have engaged Young Conaway Stargatt & Taylor, LLP as
local counsel, Morrison & Foerster LLP as general bankruptcy
counsel, Zolfo Cooper, LLC as financial advisor and Prime Clerk LLC
as claims and noticing agent, all are subject to the Bankruptcy
Court's approval.
MINERVA HOSPITALITY: Taps Gabriel Del Virginia as Legal Counsel
---------------------------------------------------------------
Minerva Hospitality Group, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire the
Law Offices of Gabriel Del Virginia.
Minerva Hospitality tapped the firm to serve as its legal counsel
in connection with its Chapter 11 case.
The firm will provide Minerva Hospitality with legal advice
regarding its duties as a debtor-in-possession; prepare legal
papers; assist the Debtor's accountants in preparing monthly
reports to the Office of the U.S. Trustee; and provide other
services necessary in the conduct of its case.
The firm's professionals and their hourly rates are:
Gabriel Del Virginia, Partner $500
Associate $250
Paralegal $125
In a court filing, Gabriel Del Virginia, Esq., disclosed that the
firm is a "disinterested person" as defined in section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Gabriel Del Virginia
Law Offices of Gabriel Del Virginia
30 Wall Street-12th Floor
New York, New York 10005
Telephone: 212-371-5478
Facsimile: 212-371-0460
E-mail: gabriel.delvirginia@verizon.net
About Minerva Hospitality
Minerva Hospitality Group, LLC sought protection under Chapter 11
of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 16-10912) on April
14, 2016.
NATIVE WHOLESALE: Bid to Reconsider Okla.'s Allowed Claim Denied
----------------------------------------------------------------
In the case captioned In re: NATIVE WHOLESALE SUPPLY COMPANY,
Debtor, 11-14009 B (Bankr. W.D.N.Y.), Judge Carl L. Bucki of the
United States Bankruptcy Court for the Western District of New York
denied the motion filed by Native Wholesale Supply Company for
reconsideration of the allowed claim of the State of Oklahoma.
"The debtor's confirmed plan of reorganization establishes a
separate but compelling basis to deny the motion to modify the
allowed claim of the State of Oklahoma. Section 3.1 of the Plan
provides that Oklahoma’s prepetition claim "will become an
Allowed Claim, upon, and to the extent of the entry of a Final
Order in the Oklahoma Litigation granting financial recovery to
Oklahoma from the Debtor on account of Prepetition activities of
the Debtor." Now that Oklahoma has duly secured this final order,
the debtor may not renege on its commitment to pay. This outcome
necessarily follows from 11 U.S.C. section 1141(a), which provides
in relevant part that "the provisions of a confirmed plan bind the
debtor . . . and any creditor . . . , whether or not the claim or
interest of such creditor . . . is impaired under the plan and
whether or not such creditor . . . has accepted the plan."
Essentially, the order of confirmation gives binding effect to the
dictates of the Plan. Because the debtor's confirmed plan
contemplates the payment of Oklahoma's final judgment, the debtor
may not now modify the amount of Oklahoma's allowed claim," Judge
Bucki said.
A full-text copy of Judge Bucki's June 16, 2016 order is available
at http://bankrupt.com/misc/nywb1-11-14009-1037.pdf
Debtor is represented by:
GROSS, SHUMAN, BRIZDLE & GILFILLAN, P.C.
Robert J. Feldman, Esq.
Janet C. Burhyte, Esq.
465 Main Street, Suite 600
Buffalo, NY 14203
The State of Oklahoma is represented by:
NATIONAL ASSOCIATION OF ATTORNEYS GENERAL
Karen Cordry, Esq., of counsel
2030 M. Street, NW
Washington, D.C. 20036
-- and --
HODGSON RUSS LLP
Craig T. Lutterbein, Esq., of counsel
The Guaranty Building
140 Pearl Street, Suite 100
Buffalo, NY 14202
Email: clutterbein@hodgsonruss.com
About Native Wholesale Supply Company
Native Wholesale Supply Company is engaged in the business of
importing cigarettes and other tobacco products from Canada and
selling them to third parties within the United States. It
purchases the products from Grand River Enterprises Six Nations,
Ltd., a Canadian corporation and the Debtor's only secured
creditor. Native is an entity organized under the Sac and Fox
Nation and has its principal place of business at 10955 Logan Road
in Perrysburg, New York.
Native filed for Chapter 11 bankruptcy (Bankr. W.D.N.Y. Case No.
11-14009) on Nov. 21, 2011. The Chapter 11 filing was triggered
to resolve an ongoing dispute with the United States government
regarding up to $43 million in assessments made by the government
against the Debtor pursuant to the Fair and Equitable Tobacco
Reform Act of 2004 and the Tobacco Transition Payment Program and
to restructure the terms of payment of any obligation determined
to be owing by the Debtor to the U.S. under the Disputed
Assessment. The issues pertaining to the Disputed Assessment
resulted in two lawsuits, subsequently consolidated, now pending
in the Federal District Court.
Robert J. Feldman, Esq., and Janet G. Burhyte, Esq., at Gross,
Shuman, Brizdle & Gilfillan, P.C., in Buffalo, N.Y., represent the
Debtor as counsel.
The Company disclosed $30,022,315 in assets and $70,590,564 in
liabilities as of the Chapter 11 filing.
The States of California, New Mexico, Oklahoma and Idaho have
appeared in the case and are represented by Garry M. Graber, Esq.,
and Craig T. Lutterbein, Esq., at Hodgson Russ LLP, in Buffalo,
Newj York, and Karen Cordry, Esq., National Association of
Attorneys General, in Washington, D.C.
According to a Consensual Disclosure Statement for Joint Consensual
Plan of Reorganization of Native Wholesale Supply Company, and the
States dated March 6, 2014, the Debtor established a Plan Funding
Account at M&T and deposited $5.5 million on Feb. 4, 2014, and an
additional $500,000 was deposited on Feb. 14, 2014. An additional
$500,000 will be deposited in the Plan Funding Account on each
succeeding 15th day of each month (or the first business day after
the 15th) beginning in March 2014 until the Plan is confirmed.
No trustee, examiner or creditors' committee has been appointed in
the case.
NET ELEMENT: May Issue 1.34 Million Shares Under Equity Plan
------------------------------------------------------------
Net Element, Inc., filed with the Securities and Exchange
Commission a Form S-8 registration statement for the purpose of
registering an additional 1,348,858 shares of Common Stock to be
issued pursuant to the Company's 2013 Equity Incentive Plan, as
amended. The proposed maximum aggregate offering price is $2.58
million. A full-text copy of the prospectus is available for free
at https://is.gd/EhY7zo
About Net Element
Miami, Fla.-based Net Element International, Inc., formerly Net
Element, Inc., currently operates several online media Web sites
in the film, auto racing and emerging music talent markets.
Net Element reported a net loss of $13.3 million on $40.2 million
of total revenues for the year ended Dec. 31, 2015, compared to a
net loss of $10.21 million on $21.4 million of total revenues for
the year ended Dec. 31, 2014.
As of March 31, 2016, Net Element had $21.61 million in total
assets, $14.05 million in total liabilities and $7.55 million in
total stockholders' equity.
Daszkal Bolton LLP, in Fort Lauderdale, Florida, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2015, citing that the Company has sustained
recurring losses from operations and has working capital and
accumulated deficits that raise substantial doubt about its ability
to continue as a going concern.
NEUSTAR INC: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
-----------------------------------------------------------
Egan-Jones Ratings Company downgraded the senior unsecured ratings
on debt issued by Neustar Inc. to BB+ from BBB- on June 24, 2016.
Neustar, Inc. is an American technology company that provides
real-time information and analytics for the Internet,
telecommunications, entertainment, and marketing industries.
NEW HORIZONS: Renews $112.5K Owenton KY Property Sale Motion
------------------------------------------------------------
New Horizons Health Systems, Inc., filed a renewed motion to sell
its real property located at 326 Roland Avenue, Owenton, KY. The
Debtor now intends to sell the Property to NKY MHMR Properties,
Inc. for $112,500, subject to the completion of an inspection
satisfactory to the buyer.
On Jan. 25, 2016, the Court entered an order ("Sale Order")
granting the Debtor's amended motion for entry of an order
authorizing the sale of substantially all assets. Since the entry
of the Sale Order, the Debtor has closed on the sale of the assets
sold under the authority granted by that Sale Order, and the Debtor
is no longer doing business as a going concern. The Debtor used
the real property only minimally in the operation of its business,
and neither the Debtor nor SEH has any use for the real property
now that the sale to SEH has been approved.
The Debtor actively marketed its assets both before and after its
bankruptcy case was filed. It diligently evaluated the sale
proposed and the potential for any other higher and better offers
for the sale of the Real Property. Based on this knowledge, the
Debtor has accepted NKY MHMR's offer in good faith and negotiated
the terms of the Contract to Purchase the Real Property at arm's
length.
The Debtor also believes that the purchase price is fair,
reasonable, and higher than any other buyer would be willing to
pay.
New Horizons Health Systems, Inc. is represented by:
Ellen Arvin Kennedy, Esq.
John M. Spires, Esq.
250 W. Main Street, Suite 1400
Lexington, KY 40507
Telephone: (859) 425-1000
Facsimile: (859) 425-1099
E-mail: ellen.kennedy@dinsmore.com
About New Horizons Health Systems
Headquartered in Owenton, Kentucky, New Horizons Health Systems,
Inc. -- dba New Horizons Medical Center, dba New Horizons Family
Practice -- operates the Owen County Hospital. The hospital serves
the counties of Owen, Gallatin, and Carroll and has operated
continually since 1951.
New Horizons Health Systems, Inc., filed for Chapter 11 bankruptcy
protection (Bankr. E.D. Ky. Case No. 15-30235) on May 29, 2015,
estimating its assets at between $1 million and $10 million and
liabilities at between $10 million and $50 million. The petition
was signed by Bernard T. Poe, president.
Judge Gregory R. Schaaf presides over the case.
Ellen Arvin Kennedy, Esq., at Dinsmore & Shohl LLP serves as the
Company's bankruptcy counsel. Kelley S. Gamble, CPA, is the
Company's accountant.
An official committee of unsecured creditors has been appointed in
the case.
NEWARK WATERSHED: Court Grants Cory Booker's Bid to Dismiss Suit
----------------------------------------------------------------
In an adversary complaint filed by debtor Newark Watershed
Conversarion and Development Corporation, Judge Vincent F. Papalia
of the United States Bankruptcy Court for the District of New
Jersey granted Cory Booker's motion to dismiss on grounds of public
employee immunity, but denied Vaughn L. McKoy's motion to dismiss
based on charitable immunity and N.J.S.A. Section 15A:6-14. Judge
Papalia also granted the debtor's motion to amend.
The formal count against Booker and McKoy is Count Seven for
"Negligence/Breach of Fiduciary Duties."
The bankruptcy case is In re: NEWARK WATERSHED CONSERVATION AND
DEVELOPMENT CORPORATION, Chapter 11, Debtor, Case No. 15-10019
(VFP) (Bankr. D.N.J.).
The adversary proceeding is NEWARK WATERSHED CONSERVATION AND
DEVELOPMENT CORPORATION, Debtor-Plaintiff, v. LINDA
WATKINS-BRASHEAR; DAWAYNE BRASHEAR; EDIT INTERIORS; DONALD BERNARD
SR.; DONALD BERNARD SR. CONSULTING; BERNARD AND ASSOCIATES; NEW
BEGINNINGS ENVIRONMENTAL LLC; EDWARD MCRAE; CLEANER-N-GREENER;
GREENER-N-CLEANER; CARLOS AROCHO; AROCHO LANDSCAPING; OSCAR N.
JAMES SR.; THE JAMES GROUP; JAMES C. PORTER; JIM P. ENTERPRISES,
LLC; LAWRENCE BELCHER, CPA; WALTER FRYE, CPA; UNITY FINANCIAL
STRATEGISTS, INC.; GARDEN STATE SECURITIES, INC.; DARNELL A. DEANS;
CORY A. BOOKER; RODNEY B. JOHNSON; WILLIAM T. MERRITT; OSCAR S.
JAMES II (a/k/a OSCAR JAMES, JR.); DONALD M. PAYNE, JR.; VAUGHN L.
McKOY; MICHELLE THOMAS; XYZ CORPORATION 1-10 (FICTITIOUS NAMES);
JOHN DOE 1-10 (FICTITIOUS NAMES), Defendants, Adv. Pro. No. 15-2397
(VFP) (Bankr. D.N.J.).
A full-text copy of Judge Papalia's June 21, 2016 opinion is
available at https://is.gd/XAgfUy from Leagle.com.
Newark Watershed Conservation and Development Corporation is
represented by:
Donald W Clarke, Esq.
Daniel Stolz, Esq.
WASSERMAN, JURISTA & STOLZ, P.C.
110 Allen Road, Suite 304
Basking Ridge, NJ 07920
Tel: (973)467-2700
Fax: (973)467-8126
Email: dclarke@wjslaw.com
dstolz@wjslaw.com
-- and --
James A. Scarpone, Esq.
Bruce D. Vargo, Esq.
SCARPONE & VARGO LLC
50 Park Place, Suite 1003
Newark, NJ 07102
Tel: (973)623-4101
Fax: (973-623-4181
Email: jscarpone@scarponevargo.com
bvargo@scarponevargo.com
Walter Frye, CPA is represented by:
Christopher Adams, Esq.
ADAMS BUCHAN & PALO, LLC
146 Route 34, Suite 325
Holmdel, NJ 07733
Tel: (732)837-4544
Fax: (732)837-3002
Unity Financial Strategists, Inc. is represented by:
Michael D. Mezzacca, Esq.
HARTLAUB, DOTTEN & MEZZACCA, P.C.
47 River Road
Summit, NJ 07901
Tel: (908)273-5730
Fax: (908)273-6670
Email: mmezzacca@hdmlawfirm.com
Garden State Securities, Inc. is represented by:
Gregory William Fox, Esq.
Sarah Kleinman, Esq.
MARSHALL, DENNEHY, WARNER, COLEMAN & GOG
2000 Market Street, Suite 2300
Philadelphia, PA 19103
Tel: (215)575-2600
Fax: (215)575-0856
Email: gwfox@mdwcg.com
sakleinman@mdwcg.com
Donald M. Payne, Jr. is represented by:
Alan Dexter Bowman, Esq.
1 Gateway Center # 110
Newark, NJ 07102
Tel: (973)622-2225
Vaughn L. McKoy is represented by:
Jaimee Lynn Katz Sussner, Esq.
Laura Kessler, Esq.
SILLS CUMMIS & GROSS PC
The Legal Center
One Riverfront Plaza
Newark, NJ 07102
Tel: (973)643-7000
Fax: (973)643-6500
Email: jsussner@silsscummis.com
lkessler@sillscummis.com
About Newark Watershed
Newark, New Jersey-based Newark Watershed Conservation and
Development Corporation filed for Chapter 11 protection (Bankr.
D.N.J. Case No. 15-10019) on Jan. 2, 2015. The petition was
signed by Joseph M. Hartnett, interim executive director.
The Hon. Donald H. Steckroth presides over the case. Donald W.
Clarke, Esq., and Daniel Stolz, Esq., at Wasserman, Jurista &
Stolz, P.C., represents the Debtor in its Chapter 11 case.
The Debtor disclosed total assets of $202,489 and total
liabilities of $2.07 million.
NEWPORT BONDING: A.M. Best Withdraws ccc Issuer Credit Rating
-------------------------------------------------------------
A.M. Best has affirmed the financial strength rating of C (Weak)
and the issuer credit rating of "ccc" of Newport Bonding and Surety
Company (Newport) (Hato Rey, PR). Additionally, the ratings have
been removed from under review with negative implications and
assigned negative outlooks. Concurrently, A.M. Best has withdrawn
the ratings as the company no longer participates in A.M. Best's
interactive rating process.
The affirmations reflect the company's fluctuating operating
performance due to elevated loss ratios, very high underwriting
expense measures and the lack of enterprise risk management
controls. Although the company's risk-adjusted capitalization is
adequate for the rating level, the limited capital base and
volatility in capital over the past five years remain a credit
negative.
NICOLAOS SPIRAKIS: Objection to Spiliotis' Secured Claim Sustained
------------------------------------------------------------------
In the case captioned IN RE: NICOLAOS P. SPIRAKIS, MARY C.
SPIRAKIS, Debtors, No. 13-07462-8-SWH (Bankr. E.D.N.C.), Judge
Stephani W. Humrickhouse of the United States Bankruptcy Court for
the Eastern District of North Carolina, Wilmington Division,
sustained the debtors' objection to the secured portion of the
proof of claim filed by Georgia Spiliotis.
On January 16, 2015, Ms. Spiliotis filed a proof of claim in the
amount of $1,000,000.00 based upon Mr. Spirakis' alleged breach of
fiduciary duty and negligent misrepresentation. Ms. Spiliotis
asserted that her claim is secured in the amount of $70,000.00 by
virtue of a right of setoff.
Judge Humrickhouse, however, determined that because one of the
necessary elements of setoff under section 553 cannot be satisfied,
Ms. Spiliotis is not entitled to a right of setoff, and further,
does not possess a secured claim.
A full-text copy of Judge Humrickhouse's June 23, 2016 order is
available at https://is.gd/DQATJP from Leagle.com.
Nicolaos P. Spirakis is represented by:
Clayton W. Cheek, Esq.
George M. Oliver, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
405 Middle Street
New Bern, NC 28563
Tel: (252)633-1930
Fax: (252)633-1950
Email: clayton@olivercheek.com
george@olivercheek.com
NORTH GATEWAY CORE: Taps Forrester & Worth as Legal Counsel
-----------------------------------------------------------
North Gateway Core Acreage Investors, LLC seeks approval from the
U.S. Bankruptcy Court for the District of Arizona to hire Forrester
& Worth, PLLC as its legal counsel.
The Debtor tapped the firm to provide these services in connection
with its Chapter 11 case:
(a) examination of the Debtor's acts, conduct and property;
(b) preparation of records, reports, pleadings and other
legal papers;
(c) representation of Debtor in contested matters and
adversary proceedings;
(d) identification and prosecution of claims and causes of
action;
(e) examination of proofs of claim and possible objections to
such claims; and
(f) preparation of a Chapter 11 plan and disclosure statement
and representation of Debtor in related confirmation
proceedings.
The firm's professionals and their hourly rates are:
S. Cary Forrester $450
John R. Worth $400
Paralegals is $150
Aside from professional fees, the firm will also receive
reimbursement for work-related expenses.
In a court filing, S. Cary Forrester disclosed that the firm does
not represent any interest adverse to the Debtor or its bankruptcy
estate.
The firm can be reached through:
S. Cary Forrester
John R. Worth
Forrester & Worth, PLLC
3636 North Central Avenue, Suite 700
Phoenix, Arizona 85012
Phone: (602) 258-2728
Fax: (602) 271-4300
E-mail: scf@forresterandworth.com
jrw@forresterandworth.com
About North Gateway Core
North Gateway Core Acreage Investors, LLC sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
16-07286) on June 27, 2016. The petition was signed by Gary White,
co-manager of managing member.
At the time of the filing, the Debtor estimated its assets at $1
million to $10 million and debts at $500,000 to $1 million.
OAKFABCO INC: Exclusive Plan Filing Period Extended to Sept. 30
---------------------------------------------------------------
The Hon. Jack B. Schmetterer of the U.S. Bankruptcy Court for the
Northern District of Illinois has extended, at the behest of
Oakfabco, Inc., the Debtor's exclusive right to file a Chapter 11
plan through Sept. 30, 2016, and to solicit votes thereon through
Nov. 30, 2016.
As reported by the Troubled Company Reporter on June 16, 2016, the
Debtor submits that there is sufficient cause to approve the
extension of the Exclusive Periods. The Debtor says it cannot
negotiate or file its Chapter 11 plan of liquidation until it has
funds necessary to support the plan. The Debtor anticipates
funding its plan through the settlement proceeds and any other
insurance rights available to the Debtor. The Debtor cannot commit
to utilizing the settlement proceeds prior to a hearing on the
insurance settlement motions and court approval of the insurance
settlement agreements. Accordingly, approval of the
insurance settlement agreements is a necessary prerequisite to
negotiating and filing the plan.
The status conference scheduled for Aug. 18, 2016, at 11:00 a.m.,
for a report on the status of the plan and disclosure statement is
rescheduled for Oct. 11, 2016, at 11:00 a.m.
About Oakfabco, Inc.
Oakfabco, Inc, formerly known as Kewanee Boiler Corporation, has
not manufactured boilers since 1988 when it sold its Kewanee boiler
business in an 11 U.S.C. Section 363 sale to Coppus Engineering
Corporation. In early 2009, it sold all of its remaining assets.
The Debtor has no employees, and, Frederick W. Stein is the
Debtor's sole officer and director. The Debtor's sole remaining
asset is its insurance, and it has no known liabilities other than
asbestos claims.
In January 1970, Kewanee Boiler Corp, then a newly-formed Illinois
Corporation, acquired the assets and debt of American Standard,
Inc.'s commercial boiler manufacturing division known as "Kewanee
Boiler." The boilers manufactured and sold by Kewanee Boiler were
insulated with asbestos.
Oakfabco sought Chapter 11 protection (Bankr. N.D. Ill. Case No.
16-27062) on Aug. 7, 2015, to resolve its remaining asbestos
claims. Reed Smith LLP serves as counsel to the Debtor.
The Debtor estimated $10 million to $50 million in assets and
debt.
The U.S. Trustee for Region 11, appointed four members to the
Asbestos Claimants' Committee in the Chapter 11 bankruptcy case of
Oakfabco Inc.
The Asbestos Claimants' Committee is represented by Frances Gecker,
Esq., Joseph D. Frank, Esq., and Micah R. Krohn, Esq., at
Frankgecker LLP.
OI SA: Chapter 15 Recognition Hearing Set for July 21
-----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
scheduled a hearing for July 21, 2016, at 10:00 a.m. (New York
Time) at Room 701, One Bowling Green, New York, New York, to
approve the request of Ojas N. Shah, in his capacity as the foreign
representative of Oi S.A. and its debtor-affiliates, to recognize
the company's Brazilian proceedings as a foreign main proceeding
with respect to each of the Debtors. Objections, if any, are due
July 14, 2016, at 4:00 p.m. (New York Time).
The petitioner's counsel are:
John K. Cunningham, Esq.
Richard S. Kebrdle, Esq.
White & Case LLP
Southeast Financial Center
200 South Biscayne Blvd., Suite 4900
Miami, FL 33131
Tel: (305) 371-2700
Fax: (305) 358-5744
Email: jcunningham@whitecase.com
rkebrdle@shitecase.com
Headquartered in Rio de Janeiro, and operating almost exclusively
within Brazil, the Oi Group provides services like fixed-line data
transmission and network usage for phones, internet, and cable,
Wi-Fi hot-spots in public areas, and mobile phone and data
services, and employs approximately 142,000 direct and indirect
employees.
The Company is represented by John K. Cunningham of White & Case.
In its most recent Annual Report, Oi SA reported total assets of
R$59,552,794,000 (currency in Brazilian Real).
PACIFIC EXPLORATION: Court Authorizes Filing of Compromise Plan
---------------------------------------------------------------
Pacific Exploration & Production Corp. on June 30, 2016, provided
an update with respect to its comprehensive restructuring
transaction (the "Restructuring Transaction") with: (i) certain
holders of the Company's senior unsecured notes (the "Supporting
Noteholders") ()Ad Hoc Committee")), (ii) certain of the Company's
lenders under its credit facilities (the "Supporting Bank Lenders",
and together with the Supporting Noteholders, the "Supporting
Creditors"), and (iii) The Catalyst Capital Group Inc.
("Catalyst"). The Restructuring Transaction will significantly
reduce debt, improve liquidity, and best position the Company to
navigate the current oil price environment.
Restructuring Update
On June 30, the Ontario Superior Court of Justice (the "Court")
granted an order ()Meeting Order"): (a) authorizing the filing of
the Company's plan of compromise and arrangement (the "Plan")
pursuant to the Companies' Creditors Arrangement Act (Canada) (the
"CCAA") through which the Restructuring Transaction would be
implemented; (b) authorizing and directing that a meeting of
affected creditors of the Company be held to consider and vote on
the Plan (the "Creditors' Meeting"); (c) setting
August 23, 2016 as the date for a hearing for court approval of the
Plan should the Plan be approved at the Creditors' Meeting; and (d)
providing certain additional direction with respect to the
procedures for the conduct of voting at the Creditors' Meeting and
the procedures for qualifying Supporting Noteholders to receive
early consent shares on implementation of the Plan and for affected
creditors to receive cash in lieu of common shares under the Plan.
Creditors' Meeting
In order to be approved, the Plan must receive the affirmative vote
of a majority in number of affected creditors who represent at
least two-thirds in value of the voting claims of affected
creditors, in each case who are present and vote in person or by
proxy on the Plan at the Creditors' Meeting.
The Creditors' Meeting will be held on August 17, 2016 at 10:00
a.m. (Toronto time), subject to any adjournment or postponement of
the Creditors' Meeting.
Holders of the Company's shares will not be entitled to vote at the
Creditors' Meeting.
The Restructuring Transaction has support from Supporting Creditors
holding approximately 78.91% of the aggregate principal amount of
the debt held by the Company's noteholders and lenders under the
Company's credit facilities. Subject to the terms and conditions
of the restructuring support agreement entered into by the Company,
the Supporting Creditors and Catalyst (the "Support Agreement"),
the Supporting Creditors have agreed to support and vote in favor
of the Restructuring Transaction.
The record date for the purposes of determining which beneficial
holders of the Company's senior unsecured notes are entitled to
receive notice of the Creditors' Meeting and vote at the Creditors'
Meeting with respect to their claims as holders of senior unsecured
notes shall be 5:00 p.m. (Toronto time) on July 8, 2016 (the
"Noteholder Record Date"). 5:00 pm (Toronto time) on July 8, 2016
has also been set as the record date for holders of the bank debt.
Materials required for voting at the Creditors' Meeting (the
"Meeting Materials") and with respect to certain other elections to
be made in connection with the Plan will be delivered to affected
creditors in accordance with the procedures set out in the Meeting
Order.
The Meeting Order contains specific provisions relating to notice,
voting and record dates for the lenders under the Company's credit
facilities, which should be reviewed by those lenders and their
advisors.
Detailed information on the procedures for affected creditors to
participate in the Creditors' Meeting and to make certain elections
under the Plan are set out in the Meeting Order, the Plan and the
information circular that will be delivered to affected creditors.
Early Consent Shares
As part of the Restructuring Transaction, Noteholders were offered
their pro rata share of approximately 2.2% of the common shares of
the reorganized Company (the "Supporting Noteholder Consideration")
upon Plan implementation if they signed the Support Agreement or
signed and returned a joinder to the Support Agreement on or before
May 6, 2016 (the "Early Support Deadline"), subject to certain
terms and conditions.
In order to receive its pro rata share of the Supporting Noteholder
Consideration, a Supporting Noteholder must: (i) qualify for such
Supporting Noteholder Consideration in accordance with the terms of
the Support Agreement, including those terms applicable to
transferees of senior unsecured notes; (ii) be a holder of the
senior unsecured notes to which the Support Agreement applies as of
5:00 p.m. (Toronto time) on the Noteholder Record Date ()Eligible
Note Claims"); (iii) vote its Eligible Note Claims in favor of the
Plan; (iv) hold, immediately prior to the time of implementation of
the Plan, senior unsecured notes in the aggregate principal amount
equal to, or in excess of, the fair market value of the Supporting
Noteholder Consideration such holder would be entitled to receive;
and (v) deliver a properly completed and executed "Application for
Early Consent Consideration" (which will be distributed to the
Company's noteholders with the Meeting Materials and which is
attached as Schedule "E" to the Meeting Order) so that it is
received by the Supporting Noteholder's intermediary by August 10,
2016 at 10:00 a.m. (Toronto time).
Only holders of Eligible Note Claims on the Noteholder Record Date
shall be entitled to Supporting Noteholder Consideration. Persons
who acquire Eligible Note Claims after the Noteholder Record Date
will not receive any Supporting Noteholder Consideration in respect
of such Eligible Note Claim.
The Supporting Noteholder Consideration will be allocated from the
shares otherwise receivable by the holders of the Company's senior
unsecured notes and as a result, for greater certainty, the
issuance of Supporting Noteholder Consideration to Supporting
Noteholders does not affect the entitlements of the other affected
creditors under the Plan.
Cash Election
Affected creditors have the opportunity under the Plan to receive
cash in lieu of the common shares of the reorganized Company that
they would otherwise be entitled to receive under the Plan
including any Supporting Noteholder Consideration, subject of the
terms and conditions set out in the Plan (the "Cash Election").
There is no requirement for affected creditors to participate in
the Cash Election.
Creditors wishing to participate in the Cash Election must comply
with the procedures established in the Meeting Order and the Plan.
Cash Election forms are irrevocable once submitted.
Further details regarding the Plan (including the Cash Election),
the Meeting Order and the Creditors' Meeting are available on the
Monitor's website at www.pwc.com/ca/pacific
About Pacific Exploration & Production
Pacific Exploration & Production Corp. is a Canadian public company
and a leading explorer and producer of natural gas and crude oil,
with operations focused in Latin America. The Company has a
diversified portfolio of assets with interests in more than 70
exploration and production blocks in various countries including
Colombia, Peru, Guatemala, Brazil, Guyana and Belize. The
Company's strategy is focused on sustainable growth in production &
reserves and cash generation.
In April 19, 2016 and April 20, 2016, the Company announced its
entry into an agreement with: (i) The Catalyst Capital Group Inc.,
(ii) certain members of an ad hoc committee of holders of the
Company's senior unsecured notes, and (iii) certain of the
Company's lenders under its credit facilities, to effect a
comprehensive financial restructuring (the "Restructuring
Transaction") that will significantly reduce debt, improve
liquidity, and best position the Company to navigate the current
oil price environment. The restructuring will be implemented by
way of a plan of arrangement pursuant to a court-supervised process
in Canada, together with appropriate proceedings in Colombia under
Law 1116 and in the United States.
On April 27, 2016, Pacific Exploration, et al., applied for and
received an order for protection pursuant to the Companies'
Creditors Arrangement Act ("CCAA"), R.S.C.1985, c.C-36 from the
Ontario Superior Court of Justice Commercial List and
PricewaterhouseCoopers Inc. was appointed as monitor of the
Applicants (the "Monitor").
The Applicants filed recognition proceedings pursuant to Chapter 15
of title 11 of the United States Bankruptcy Code (the "U.S.
Proceedings") and pursuant to Law 1116 of 2006 of the Republic of
Colombia (the "Colombian Proceedings"). Pacific, et al., each
filed a Chapter 15 bankruptcy petition (Bank. S.D.N.Y. Case Nos.
16-11189 to 16-11211) in New York, in the U.S. on April 29, 2016.
The Company is being advised by Lazard Freres & Co. LLC, Norton
Rose Fulbright Canada LLP (Canada), Proskauer Rose LLP (U.S.),
Zolfo Cooper (U.S.), Garrigues (Colombia) and Kingsdale Shareholder
Services (Canada). The Independent Committee is being advised by
Osler, Hoskin & Harcourt LLP and UBS Securities Canada Inc. The
Noteholders forming part of the funding creditors are being advised
by Evercore Group L.L.C. (U.S.), Goodmans LLP (Canada), Paul,
Weiss, Rifkind, Wharton & Garrison LLP (U.S.) and Cardenas y
Cardenas Abogados (Colombia). FTI Consulting (U.S.), Davis Polk &
Wardwell LLP (U.S.), Torys LLP (Canada) and Gomez-Pinzon Zuleta
Abogados (Colombia) are counsel to the agent on the revolving
credit facility of the Company, and Seward & Kissel is counsel to
the agent on the HSBC Bank, USA, N.A. term loan of the Company.
Catalyst is being advised by Brown Rudnick LLP (U.S.), McMillan LLP
(Canada) and GMP Securities L.P.
PricewaterhouseCoopers Inc., the foreign representative oF Pacific
Exploration, can be contacted at:
PRICEWATERHOUSECOOPERS INC.
PwC Tower
18 York Street, Suite 2600
Toronto, ON M5J 0B2
Attention: Tammy Muradova
Canada/US: +1 844 855 8568
Colombia: 01 800 518 2167
Local US: +1 503 520 4469
PARFUMS ACQUISITION: S&P Affirms 'B' CCR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings affirmed its 'B' corporate credit rating on
Stamford, Conn.-based Parfums Acquisition Co. The outlook is
stable.
In addition, S&P is raising its issue-level rating on the company's
senior secured debt to 'B+' from 'B'. S&P is revising the recovery
rating to '2' from '3', reflecting its expectation for substantial
(70% to 90%, at the low end of the range) recovery in the event of
a payment default. Total debt outstanding as of March 31, 2016,
was about $300 million.
The rating affirmation reflects S&P's view that the company will
remain a small player with a narrow focus in the highly competitive
bath and beauty industry with sizable exposure to large retailers
such as Wal-Mart, notwithstanding its solid performance. Parfums
products generally compete in the low-priced end of niche
categories in the food, drug, and mass channels, and in our opinion
have low pricing power. The company also competes against larger
beauty companies that sell through alternative channels, and
retailers such as Victoria's Secret and Bath & Body Works, which
sell their own premium brands. These companies are much larger,
better capitalized, and have greater financial resources, which
enables them to spend more on innovation and marketing than
Parfums. The company also has a significant customer concentration
with Wal-Mart. While S&P believes the company has had a long-term,
satisfactory relationship with Wal-Mart, the retailer has a history
of pressuring its suppliers and cutting back on orders. Any
meaningful reduction in business from Wal-Mart could significantly
weaken Parfums' profitability and credit metrics.
S&P's ratings also reflect Parfums' weak credit ratios and
financial sponsor ownership. S&P expects that steady EBITDA growth
and gradual debt reduction could lead to meaningful credit metric
improvement. However, the company's majority ownership by a
financial sponsor weighs on the rating, as financial sponsors focus
on generating investment returns over short-term horizons, often
dictating aggressive financial policies that include large
debt-financed dividend payouts and acquisitions.
The outlook is stable, reflecting S&P's belief that Parfums will
generate steady revenue and profit growth as the company leverages
its strong distribution network to grow recent and newly acquired
brands. S&P forecasts leverage will improve meaningfully,
including leverage to the high-3x area at the end of 2016.
S&P could lower the rating if operating performance deteriorates,
leading to a material decline in EBITDA and free cash flow
generation, which could weaken S&P's view of company's business
risk profile. This could occur if there are unfavorable changes to
the company's relationship with Wal-Mart or if competition from
Parfums' larger peers intensifies. Alternatively, S&P could lower
the rating if financial policy becomes more aggressive, leading to
financial leverage sustained in the low-6x area. This could occur
if debt increases about $200 million or if EBITDA declines about
35%.
Although unlikely over the next year, S&P could raise the rating if
the company continues to improve its scale and diversify its
business, while also sustaining leverage well below 5x. An upgrade
would be predicated on a commitment from the financial sponsor not
to pursue debt-financed dividends or acquisitions that would lead
to a meaningful deterioration of credit ratios.
PEAK WEB: Appointed Lightower Fiber to Creditors' Committee
-----------------------------------------------------------
Gail Brehm Geiger, acting U.S. trustee for Region 18, on June 28
appointed Lightower Fiber Networks to serve on the official
committee of unsecured creditors of Peak Web LLC.
The bankruptcy watchdog had earlier appointed Themesoft Inc., MOD
Mission Critical, Gregory Rodriguez, and Intervision Systems, court
filings show.
Fiber Networks' contact information is:
Lightower Fiber Networks
c/o Scot M. Callahan
80 Central Street
Boxborough, MA 01719
Phone: (978) 268-9309
Fax: (978) 264-6825
Email: scallahan@lightower.com
About Peak Web
Headquartered in Oregon, Peak Web, LLC dba Peak Hosting, is a
managed-service company that provides the servers, storage,
network, datacenter, and staff for some of the largest online
businesses. Peak’s operations and engineering teams currently
support 26 customers in industries spanning online and mobile
gaming, finance, real estate, consulting, and big data companies.
Peak has 50% of its data center pre-built and ready for new
customers. This equates to about 100 racks of space, which can
accommodate approximately 2,000 additional servers for the
expansion of new and existing customers.
Peak Web sought creditor protection in the U.S. Bankruptcy Court
for the District of Oregon (Bankr. D. Ore. Case No. 16-32311) on
June 13, 2016. The petition was signed by Jeffrey E. Papen as CEO.
The Debtor estimated assets in the range of $100 million to $500
million and liabilities of up to $100 million.
The Debtor has engaged Tonkon Torp LLP as counsel, Cascade Capital
Group, LLC as consultant and Susman Godfrey LLP and Ropers Majeski
Kohn Bentley PC as its litigation counsel.
The case is assigned to Judge Peter C McKittrick.
PERRY PETROLEUM: Hires Lawrence G. Frank as Attorney
----------------------------------------------------
Perry Petroleum Equipment Ltd., Inc., seeks authorization from the
U.S. Bankruptcy Court for the Middle District of Pennsylvania to
employ Lawrence G. Frank as attorney.
The Debtor consulted with Lawrence G. Frank, Esq. prior to and
subsequent to the filing of the Chapter 11 proceeding.
The Debtor requires Lawrence G. Frank to:
a. counsel on actions to take during the Chapter 11
administration;
b. prepare of Schedules and Statement of Affairs;
c. attend the First Meeting of Creditors; and
d. any other necessary hearings on motions filed by the
Debtor-in-Possession or any creditors.
Mr. Frank will be paid $330 per hour plus out-of-pocket costs. He
assures the Court that the firm does not represent any interest
adverse to the Debtors and their estates.
Lawrence G. Frank may be reach at:
Lawrence G. Frank, Esq.
100 Aspen Drive
Dillsburg, PA 17019
Phone: (717)234-7455
Fax: (717)432-9065
E-mail: lawrencegfrank@gmail.com
About Perry Petroleum Equipment Ltd., Inc.
Perry Petroleum Equipment Ltd., Inc. filed a Chapter 11 bankruptcy
petition (Bankr. M.D. Penn. Case No. 16-02449) on June 9,
2016. Hon. Mary D. France presides over the case. Law Offices of
Lawrence G. Frank represents the Debtor as counsel.
In its petition, the Debtor listed $500,000 to $1 million in assets
and $1 million to $10 million in liabilities. The petition was
signed by Brian D. Sheaffer, president.
PETROLEUM PRODUCTS: Exclusive Plan Filing Deadline Moved to Oct. 3
------------------------------------------------------------------
The Hon. Marvin Isgur of the U.S. Bankruptcy Court for the Southern
District of Texas has extended, at the behest of Petroleum Products
& Services, Inc., dba Wellhead Distributors International, the
exclusive period under which the Debtor may file a plan of
reorganization for a period of 90 days until Oct. 3, 2016. The
exclusive period is automatically extended for an additional 60
days to allow the Debtor to solicit and obtain acceptance of its
plan.
As reported by the Troubled Company Reporter on June 3, 2016, the
Debtor asked that the Court extend the exclusive period under which
the Debtor may file a plan of reorganization until Oct. 3, 2016,
and and until Dec. 2, 2016, in which to confirm a plan. On April
22, 2016, the Debtor filed its motion to estimate the claim of
China Petroleum Technology & Development Corporation for purposes
of allowance, distribution and voting pursuant to 11 U.S.C. Section
502(C), which is currently pending before the Court. Claims
alleged by CPTDC in the litigation (although highly disputed) are
potentially substantial and allowance of the same could
significantly impact any plan filed by the Debtor. Thus, the
Estimation Motion must be resolved before the Debtors can confirm a
plan.
About Petroleum Products
Petroleum Products & Services, Inc. (dba Wellhead Distributors
Int'l and dba WDi) distributes API-6A wellhead equipment and valves
used in the petroleum and natural gas industries.
The Company filed a Chapter 11 bankruptcy petition (Bankr. S.D.
Tex., Case No. 16-31201) on March 4, 2016. Alejandro Kiss signed
the petition as president. The Debtor estimated assets in the
range of $10 million to $50 million and liabilities of at least $10
million.
The Debtor has engaged Hoover Slovacek, LLP, as counsel and Hirsch
Westheimer, P.C., as special litigation counsel.
PEYTO EXPLORATION: Egan-Jones Assigns BB+ Sr. Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company assigned BB+ senior unsecured ratings on
debt issued by Peyto Exploration & Development Corp on June 24,
2016.
Peyto Exploration & Development Corp., an energy company, engages
in the exploration, development, and production of oil and natural
gas, and natural gas liquids in Canada.
PICO HOLDINGS: Activist Bloggers Pen Open Letter to Chairman Marino
-------------------------------------------------------------------
PICO Holdings, Inc. (Nasdaq:PICO), based in La Jolla, Calif., is a
diversified holding company reporting recurring losses since 2008.
PICO owns 57% of UCP, Inc. (NYSE:UCP), 100% of Vidler Water
Company, Inc., a securities portfolio and various interests in
small businesses. PICO has $664 million in assets and $434 million
in shareholder equity. Central Square Management LLC and River Road
Asset Management LLC collectively own more than 14% of PICO. Other
activists at http://ReformPICONow.com/have taken to the Internet
to advance the shareholder cause.
On June 27, 2016, the activist bloggers posted an open letter to
PICO Chairman Raymond Marino. The letter is reprinted in its
entirety.
Dear Raymond,
Congratulations on your appointment as Chairman of PICO Holdings.
Shareowners are fortunate to have a businessman of your experience
and aptitude as steward of our company. We look forward to a
holistically profitable partnership.
We know who you are - we have been publishing about you for several
months. But since you do not know us, allow us to introduce
ourselves. We are ReformPICONow, a group of suffering PICO
shareholders who have one objective: to create value for all PICO
shareholders.
The purpose of this letter is to discuss PICO's relationship with
its CEO John R. Hart. We believe that Mr. Hart has proven deficient
in all qualities desirable in a CEO. For example:
A) Mr. Hart lacks leadership and communication skills: In
2015, at "Investor Day," Mr. Hart censored the webcast of the
General Q&A - a possible Regulation FD violation. As a result, only
select invitees were made aware of his answers to important
questions.
B) Mr. Hart lacks capital allocation skill: PICO has reported
5 consecutive years of losses, which total $242.2 million or almost
$10.50 per share. Central Square estimates that Northstar Hallock
cost shareholders $85 million, or $3.70 per share.
C) Mr. Hart is defectively avaricious: The Hart Employment
Agreement and Bonus Plan has earned unanimous scorn from PICO
shaholders. PICO's second-largest investor River Road, stated that
these contracts were negotiated "IN BAD FAITH . . . "
[Capitalization in original].
D) Mr. Hart is incapable of creating value: Five years ago,
PICO's market capitalization was roughly $700 million. Today, it is
barely $200 million, a destruction of almost half a billion dollars
or 68% of capitalization. During this time, the S&P 500 returned
63%.
E) Mr. Hart lacks integrity: On June 7, we published PICOGate,
revealing that Mr. Hart hid from PICO shareholders the fact that he
owned an equity stake in Synthonics at the time PICO made an
investment in that entity. Further, Mr. Hart and Director Kenneth
Slepicka failed to disclose, for 6 years, their manifest conflict
of interest.
F) PICO shareholders seek Mr. Hart's termination: In 7 months
of publishing, RPN has not received a single utterance of support
for Mr. Hart, nor a single challenge to our disparagements. We have
been contacted by analysts, hedge funds, institutional investors,
journalists, retail investors and former PICO and UCP employees --
all of whom are PICO owners -- seeking the ouster of Mr. Hart.
Given this list, we ask you, our Chairman, to expeditiously
terminate Mr. Hart's employment for cause to produce these
significant positive results:
Heal PICO's dysfunctional relationship with its shareowners.
PICO shareowners are like abused children: we have been lied to,
manipulated, beaten and stolen from. Resentment and mistrust run at
intense levels. Removal of the primary perpetrator of these abuses,
Mr. Hart, would engender deep gratitude among shareowners for you.
Enhance the current standing of both PICO and our Chairman.
PICO suffers from an atrocious reputation in the investment
community -- producing a shockingly low stock price. Removal of Mr.
Hart will raise PICO's stature, and your stature in the process.
Correct a glaring mismatch. Our Chairman is an honest,
competent businessman who has created value for shareholders. Our
CEO is the polar opposite.We are unaware of a single example where
the virtuous has raised the base -- always the base drags down the
virtuous. You would be best served by an honest, competent CEO.
Create value for PICO owners. Mr. Hart proposes to take $20
million in base salary and bonus payments over the next 5 years, or
almost $1 per share. The amount of value you create at PICO will be
either X or X-Hart ("X minus Hart"). Both you and PICO shareowners
will benefit if that number is X.
Improve our Chairman's legacy. History will judge you by the
amount of value created at PICO. By retaining Mr. Hart as CEO, you
entrust your legacy to a corrupt and incompetent executive. History
argues that this is a poor bet. We ask if it is rational to have
one's legacy decided by a man who has destroyed half a billion
dollars in value?
Open doors for our Chairman. Your next business opportunity
depends on the amount of value created at PICO. If copious value is
created, lots of doors will open. If value creation falls below
expectations, doors will close. With Mr. Hart's $20 million
entitlement, suspect incentives and proven ineptitude, you are
poised to start the value creation game from a deficit. Your career
prospects will improve once Mr. Hart can no longer influence them.
Remove a threat to our Chairman. The PICO situation is gaining
prominence. An increasing number of investors recognize the gap
between asset value and market price, combined with angry
shareowners. If significant value is not created soon, an activist
with knuckles will force value creation. While your term runs until
2018, a special meeting to remove multiple Directors remains a
possibility. Both you and PICO will benefit from the security and
stability that comes with value creation.
On May 25, 2016, RPN advocated the CEO role for our Chairman (see
Raymond Marino Clinches RPN Nomination). PICO shareowners would
benefit from your increased services to the Company. If this option
is not appealing, PICO would benefit by retention of an honest and
competent CEO chosen by the Board.
Mr. Hart's presence at PICO is destructive to shareholder value.
Contrarily, his removal will create shareholder value. We are all
owners in PICO together. We all seek economic value creation.
PICOGate provides the means with which to remove Mr. Hart from PICO
immediately and cheaply. We humbly ask you to use the tools at your
disposal to create value for all owners of PICO and remove Mr. Hart
from our Company.
In service to all PICO owners,
RPN
PIONEER ENERGY: Releases Copy of Slide Presentation for 2016
------------------------------------------------------------
From time to time, senior management of Pioneer Energy Services
meets with groups of investors and business analysts. In
connection with management's participation in those meetings and
participation in the SGS Energy and Industrials Conference on June
28, 2016, the Company prepared a slide presentation providing an
update on the Company's operations and certain recent developments,
which among others, include the following:
* Overall
-- Based on client feedback, activity is expected to increase in
the third quarter of 2016
* Drilling
-- Quarter-to-date utilization through May is 41%; current
utilization is 39% based on a total fleet of 31 rigs
-- All rigs in Colombia are currently idle; however, discussions
about potential activity late in the year and into 2017 have
increased
* Well Servicing
-- Quarter-to-date utilization through May is 39% as compared to
44% in the prior quarter
-- June month-to-date utilization is approximately 41% and 24-
hour and weekend work are beginning to return to the market
* Coiled Tubing
-- Quarter-to-date utilization through May is 23% as compared to
24% in the prior quarter
-- Larger pipe work (2 3/8" and 2 5/8") is beginning to be
discussed
The slides are available for free at https://is.gd/K1weNg
About Pioneer Energy
Pioneer Energy Services Corp. provides land-based drilling services
and production services to a diverse group of independent and large
oil and gas exploration and production companies in the United
States and internationally in Colombia. The Company also provides
two of its services (coiled tubing and wireline services) offshore
in the Gulf of Mexico.
Pioneer Energy reported a net loss of $155.14 million in 2015
following a net loss of $38.01 million in 2014.
As of March 31, 2016, Pioneer Energy had $786.52 million in total
assets, $471.41 million in total liabilities and $315.11 million in
total shareholders' equity.
* * *
As reported by the TCR on March 7, 2016, Moody's Investors Service,
on March 3, 2016, downgraded Pioneer Energy Services Corp.'s
Corporate Family Rating (CFR) to Caa3 from B2, Probability of
Default Rating (PDR) to Caa3-PD from B2-PD, and senior unsecured
notes to Ca from B3.
"The rating downgrades were driven by the material deterioration in
Pioneer Energy's credit metrics through 2015 and our expectation of
continued deterioration through 2016. The demand outlook for
drilling and oilfield services is extremely weak, as witnessed by
the steep and continued drop in the US rig count" said Sreedhar
Kona, Moody's Vice President. "The negative outlook reflects the
deteriorating fundamentals of the services sector and the
likelihood of covenant breaches"
Pioneer Energy carries a "B+" corporate credit rating from Standard
& Poor's Ratings.
POSTMEDIA NETWORK: S&P Cuts CCR to CCC- on Increased Default Risk
-----------------------------------------------------------------
S&P Global Ratings said it lowered its long-term corporate credit
rating on Toronto-based media company Postmedia Network Inc. to
'CCC-' from 'CCC+'. The outlook is negative.
At the same time, S&P Global Ratings lowered its issue-level rating
on Postmedia's C$390 million first-lien notes (C$303 million
outstanding) to 'CCC+' from 'B'. The '1' recovery rating on the
debt is unchanged. S&P Global Ratings also lowered its issue-level
rating on the company's US$275 million second-lien notes (US$269
million outstanding) to 'CC' from 'CCC-'. The '6' recovery rating
on the notes is unchanged.
"We base the downgrade on our belief that the company could default
or enter into a distressed exchange within the next six months,"
said S&P Global Ratings credit analyst Vinod Makkar.
Postmedia recently announced that it had formed an independent
special committee to, among other things, explore and review
alternatives to improve its capital structure and liquidity.
Although the company has not released any further details about its
intentions or actions regarding of its capital structure, S&P is
aware that an interest payment on Postmedia's US$275 million
second-lien notes (US$269 million outstanding) is due in July.
Given the divergent objectives of the C$303 million first-lien debt
holders and the second-lien debt holders, S&P believes that a
default, distressed exchange, or other debt restructuring appears
inevitable within six months, absent unanticipated significantly
favorable changes to the company's circumstances.
Postmedia's operating performance is weak and S&P expects it to
remain so, with the company unable to reverse the drop in revenues
in its print advertising segment, which continue to decline at over
10% organically (not considering the impact of the Sun Media
acquisition). Digital revenue has also been largely flat as the
company has not been able to offset the declines in the print
segment.
The negative outlook primarily reflects S&P's view of the
likelihood that Postmedia could default on its debt within the next
six months because of continued weak performance and the divergent
motivations of its first- and second-lien debt holders.
S&P would take a negative rating action if the company announces a
distressed exchange or misses (or announces that it plans to miss)
an interest payment on its debt.
Although S&P views it as unlikely in the next six months, an
upgrade could result from a material improvement in liquidity,
which S&P assumes would primarily result from material proceeds
from asset sales or other financing options. Such a scenario could
occur if EBITDA stabilizes and revenue declines moderate.
PUBLIC SERVICE: A.M. Best Lowers Finc'l. Strength Rating to C++
---------------------------------------------------------------
A.M. Best has downgraded the financial strength rating to C++
(Marginal) from B- (Fair) and the issuer credit rating to "b" from
"bb-" of Public Service Insurance Company (Chicago, IL) and its
affiliates, Paramount Insurance Company (New York, NY) and Western
Select Insurance Company (Chicago, IL) (collectively referred to as
Magna Carta Companies). Additionally, the ratings have been removed
from under review with negative implications and assigned negative
outlooks. Concurrently, A.M. Best has withdrawn the ratings in
response to the company's request to no longer participate in A.M.
Best's interactive rating process.
The downgrade reflects the deterioration in operating performance
in the last half of 2015, resulting partially from a $40 million
development in reserves in the fourth quarter, having followed a
$13.8 million charge at the end of the third quarter. This equated
to a nearly $60 million surplus loss for 2015, including
underwriting losses. Approximately $23.6 million of the
fourth-quarter reserve development was related to the workers'
compensation line of business. Management has had an adverse
development cover (ADC) in place since 2014 on 100% of the 2013 and
prior accident years to provide protection against further
unexpected reserve developments. However, the group has yet to
reach its retention of $385 million (having just $12 million of
retention remaining) to begin to use the cover of $60 million for
all lines of business. The development in 2015 counted $36 million
toward the ADC retention level.
With the purchase of a Loss Portfolio Transfer (LPT) from
Technology Insurance Company, which protects the company for all
commercial business in accident years 2014 and 2015, Magna Carta
now has some type of protection for all of its business except the
current accident year. Surplus currently is $50 million after the
first-quarter LPT purchase. While protected, the group's surplus
now is less than its surplus note responsibility, although after
taking all of the various adjustments into consideration, adjusted
surplus still outpaces the note.
RICEBRAN TECHNOLOGIES: Incumbent Directors Get Majority Votes
-------------------------------------------------------------
RiceBran Technologies announced that, based on preliminary
noncumulative voting results reported by the independent inspector
of elections following the Company's 2016 Annual Meeting of
Shareholders, a large majority of shareholders have voted on the
WHITE proxy card for the Company's incumbent Board of Directors.
The Inspector also reported that the incumbent Board received more
than 5.2 million votes, over 2 million more votes than LF-RB
Group's proposed slate of directors. The Board and LF-RB Group
will now proceed with the cumulative voting process in accordance
with the Company's bylaws and applicable law. Based on preliminary
numbers it appears likely that the LF-RB Group will be able to
elect two, but no more than three, of their director candidates to
the Board after the cumulating voting process has been completed.
Further, the preliminary estimates lead us to believe that the
incumbent Board will retain four or five of the Board's seven seats
- a majority of the Board.
The Company is mindful, however, that shareholders have voiced
their desire to see changes to the composition of the Board. As a
result, the Board made multiple settlement proposals to LF-RB Group
that sought to establish a stronger Board.
Robert C. Schweitzer, Chairman of RiceBran Technologies, said, "We
are pleased that shareholders have voted a clear majority of their
shares in favor of the incumbent Board. This result is a testament
to the progress the Board and management have made in implementing
the Company's strategic plan to deliver enhanced returns in the
face of considerable economic and geo-political headwinds. LF-RB
Group has so far rejected the Board's very reasonable settlement
proposals and continues to demand concessions that would
effectively give them control of the Company, even though
shareholders voted down their proposal for wholesale change.
Nonetheless, the Board is fully committed to engaging in
constructive discussions with LF-RB Group and to acting in the best
interests of all shareholders."
The preliminary vote count also indicates that RiceBran
Technologies shareholders have approved all of the other proposals
submitted for a vote at the Annual Meeting, including the
compensation of the Company's named executive officers, and
ratifying appointment of the Company's independent registered
public accounting firm for the year ending Dec. 31, 2016.
RiceBran Technologies will file final voting results with the
Securities & Exchange Commission on a Form 8-K once they are
certified by the independent inspector of elections.
About RiceBran
Scottsdale, Ariz.-based RiceBran Technologies, a California
corporation, is a human food ingredient and animal nutrition
company focused on the procurement, bio-refining and marketing of
numerous products derived from rice bran.
RiceBran reported a net loss of $10.6 million on $39.9 million of
revenues for the year ended Dec. 31, 2015, compared to a net loss
of $26.6 million on $40.10 million of revenues for the year ended
Dec. 31, 2014.
As of March 31, 2016, RiceBran had $34.9 million in total assets,
$26.9 million in total liabilities and $7.66 million in total
equity attributable to the Company's shareholders.
The Company's auditors Marcum LLP, in New York, NY, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2015, citing that the Company has suffered
recurring losses from operations resulting in an accumulated
deficit of $251 million at December 31, 2015. This factor among
other things, raises substantial doubt about its ability to
continue as a going concern.
ROBERT CRIMI SR: Receives $400K Offer for New Jersey Property
-------------------------------------------------------------
Robert T. Crimi, Sr., asks the U.S. Bankruptcy Court for the
District of New Jersey to approve the private sale of 443 Zion Rd.,
Egg Harbor Township, NJ.
The Debtor has received an offer from Alil (Alex) Alili and Sefdali
(Sam) Alili to purchase said property for the sum of $400,000,
subject to the buyers receiving a credit against the purchase price
in the sum of $100,000, for sums allegedly previously paid pursuant
to a prepetition Agreement of Sale, said credit being part of the
consideration to settle the disputes between Mr. Crimi, his wife,
and Alil (Alex) Alili and Sefdali (Sam) Alili.
The property was appraised by David M. Neyers SCGREA, IFA of
Appraisal Services, Inc., as having a fair market value as of March
23, 2016 of $258,000.
A hearing for the Motion is set for July 12, 2016 at 2 p.m. in
Courtroom # 4C, U.S. Bankruptcy Court, Mitchell Cohen Federal Court
House, 1 John F. Gerry Plaza, 4th & Cooper Streets, 4th Floor,
Camden, NJ. The response deadline is July 5, 2016.
Robert T. Crimi Sr. is represented by:
David A. Kasen, Esq.
KASEN & KASEN
Society Hill Office Park, Suite 3
1874 E. Narlton Pike
Cherry Hill, NJ 08003
Telephone: (856) 424-4144
Facsimile: (856) 424-7565
The Chapter 11 case is In re Robert T. Crimi, Sr. (Bankr. D.N.J.
Case NO. 15-16241).
SCOTT A BERGER M.D.: Case Summary & 20 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: Scott A. Berger, M.D., P.A.
aka Pain Management Consultants of South Florida
aka Pain Management Consultants of West Boca
9970 Central Park Blvd #401
Boca Raton, FL 33428
Case No.: 16-19155
Nature of Business: Health Care
Chapter 11 Petition Date: June 29, 2016
Court: United States Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Hon. Erik P. Kimball
Debtor's Counsel: Tarek K Kiem, Esq.
RAPPAPORT OSBORNE RAPPAPORT & KIEM, PL
1300 N Federal Hwy #203
Boca Raton, FL 33432
Tel: (561) 368-2200
Fax: (561) 338-0350
E-mail: office@rorlawfirm.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Scott A. Berger, MD, director.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/flsb16-19155.pdf
SEARS HOLDINGS: Egan-Jones Ups FC Sr. Unsecured Debt Rating to CC
-----------------------------------------------------------------
Egan-Jones Ratings Company raised the foreign currency senior
unsecured rating on debt issued by Sears Holdings Corp to CC from C
on June 28, 2016.
Sears Holdings Corporation is an American holding company
headquartered in Hoffman Estates, Illinois. It is the owner of
retail store brands Sears and Kmart, and was founded after the
latter purchased the former in 2005.
SFX ENTERTAINMENT: Securities Plaintiffs Balk at Sillerman Deal
---------------------------------------------------------------
Guevoura Fund Ltd. -- the court-appointed lead plaintiff in the
securities class action styled Guevoura Fund Ltd., et al. v.
Sillerman, et al., Case No. 15-cv-07192 (S.D.N.Y.), currently
pending in the United States District Court for the Southern
District of New York, individually and on behalf of all others
similarly situated, by and through their counsel -- objects to
request of SFX Entertainment for authority to enter into a
Resignation and Transition Agreement with Robert F.X. Sillerman.
The Securities Plaintiffs have concerns with the Resignation
Agreement given Mr. Sillerman's conduct as alleged in the
Securities Litigation, as well as the fact that major
constituencies in the Chapter 11 Cases bargained for Mr.
Sillerman's quick and unconditional separation from the Debtors'
business.
They contend that the Resignation Agreement provides Mr. Sillerman
with substantial benefits purportedly in exchange for his
resignation -- a resignation that has already taken effect and
which Mr. Sillerman agreed to effectuate, with no strings attached,
pursuant to his obligations under the RSA. It is unclear, based on
the conduct described in the Complaint, and in light of the major
constituents' desire to have Mr. Sillerman promptly relieved of his
duties, why Mr. Sillerman should receive anything in exchange for
his resignation, especially because none of these benefits were
contemplated in the RSA or DIP Credit Agreement.
Securities Plaintiffs requests that:
* The Resignation Agreement should specify what Mr. Sillerman's
duties as Chairman will be going forward;
* The Resignation Agreement and any order approving the Motion
should expressly state that no claims against Mr. Sillerman
are being released, whether they reside with the company or a
third party, and that the Debtors are not waiving any party's
rights to object to any claims Mr. Sillerman may have against
the Debtors' estates;
* The Resignation Agreement should make clear that the Debtors
are not assuming the obligations set forth in the pre-
petition Indemnification Agreement; and
* The Debtors should make it clear that they are not waiving
any party's rights to seek subordination of any of Mr.
Sillerman's indemnification claims that are based on the
claims asserted in the Securities Litigation pursuant to
section 510(b) of the Bankruptcy Code.
About SFX Entertainment
SFX Entertainment, Inc., and 43 of its affiliates, a global
producer of live events and digital entertainment content focused
exclusively on the electronic music culture and other world-class
festivals, 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 $662 million and total debt
of $490 million.
Judge Mary F. Walrath is assigned to the case.
Greenberg Traurig, LLP serves as the Debtors' counsel. Kurtzman
Carson Consultants LLC acts as the Debtors' claims and noticing
agent. The Debtor hired FTI Consulting Inc. to provide crisis and
turnaround management services.
An Official Committee of Unsecured Creditors has retained Pachulski
Stang Ziehl & Jones LLP as counsel, and Conway Mackenzie, Inc., as
financial advisor.
SFX ENTERTAINMENT: Taps FTI's Brazilian Office
----------------------------------------------
SFX Entertainment, Inc., et al., seek authority from the U.S.
Bankruptcy Court for the District of Delaware (a) to expand the
scope of the services to be rendered by FTI Consulting, Inc. as the
Debtors' crisis and turnaround manager, (b) for FTI to add
additional personnel, nunc pro tunc to May 18, 2016, and (c) for
FTI to provide Christopher T. Nicholls to serve as the Chief
Executive Officer.
The assistance of additional personnel from FTI's Brazil offices
(the "FTI Brazil Professionals") is necessary to represent the
Debtors' interests with respect to the SFX Brazil Entities. Among
other responsibilities, the FTI Brazil Professionals will assess
the needs of the SFX Brazil Entities' operations, coordinate with
the Debtors' lenders to obtain any necessary credit support for the
SFX Brazil Entities, develop business plan alternatives, and assist
with the development of strategic alternatives for the business.
FTI Brazil Professionals will be paid at these hourly rates:
Title Rate Per Hour ($USD)
Senior Managing Director $850
Managing Director $750
Director $680
Senior Consultant $475
The Debtors, with the assistance of FTI, counsel, and their
investment banker have been working to market and sell their
Beatport business. Meanwhile, the Debtors have undertaken an
operational restructuring at Beatport which includes the
elimination of the streaming portion of the business and the
retention and further development of its core online music store.
In light of the uncertainties generated by the sale process and the
challenges attendant to the operational restructuring, the Debtors
have determined that Mr. Nicholls's undertaking of a direct
leadership role at Beatport is important to guide Beatport through
this time.
FTI will not charge any additional fees, other than those Mr.
Nicholls bills at his pre-approved hourly rate, in respect of Mr.
Nicholls' expanded role as CEO of Beatport.
About SFX Entertainment
SFX Entertainment, Inc., and 43 of its affiliates, a global
producer of live events and digital entertainment content focused
exclusively on the electronic music culture and other world-class
festivals, 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 $662 million and total debt
of $490 million.
Judge Mary F. Walrath is assigned to the case.
Greenberg Traurig, LLP serves as the Debtors' counsel. Kurtzman
Carson Consultants LLC acts as the Debtors' claims and noticing
agent. The Debtor hired FTI Consulting Inc. to provide crisis and
turnaround management services.
An Official Committee of Unsecured Creditors has retained Pachulski
Stang Ziehl & Jones LLP as counsel, and Conway Mackenzie, Inc., as
financial advisor.
SNEED SHIPBUILDING: Has Until Sept. 1 to Exclusively File Plan
--------------------------------------------------------------
David R. Jones of the U.S. Bankruptcy Court for the Southern
District of Texas has extended Sneed Shipbuilding, Inc.'s
exclusivity period for the Debtor to file a plan of reorganization
to Sept. 1, 2016.
As reported by the Troubled Company Reporter on June 8, 2016, the
Debtor asked the Court to extend the exclusivity period for the
Debtor to file a plan of reorganization to Oct. 31, 2016. The
Debtor submits that there is substantial cause to extend
Exclusivity, including, but not limited to, the Debtor's reasonable
prospect for filing a viable Chapter 11 plan once all issues are
resolved and all timely claims have been filed.
About Sneed Shipbuilding
Sneed Shipbuilding, Inc., sought protection under Chapter 11 of the
Bankruptcy Code in the U.S. Bankruptcy Court for the Southern
District of Texas (Victoria) (Bankr. S.D. Tex., Case No. 16-60014)
on March 4, 2016. The petition was signed by Clyde E. Sneed,
president.
The Debtor is represented by Amber Michelle Chambers, Esq., Eric
Michael VanHorn, Esq., and Nicholas Zugaro, Esq., at McCathern,
PLLC. The case is assigned to Judge David R Jones.
The Debtor estimated assets of $1 million to $10 million and debts
of $10 million to $50 million.
SPARTAN SPECIALTY: Case Summary & 5 Unsecured Creditors
-------------------------------------------------------
Debtor: Spartan Specialty Finance I SPV, LLC
85 Horton Drive
Monsey, NY 10952
Case No.: 16-22881
Chapter 11 Petition Date: June 29, 2016
Court: United States Bankruptcy Court
Southern District of New York (White Plains)
Judge: Hon. Robert D. Drain
Debtor's Counsel: Gabriel Del Virginia, Esq.
LAW OFFICES OF GABRIEL DEL VIRGINIA
30 Wall Street, 12th Floor
New York, NY 10005
Tel: (212) 371-5478
Fax: (212) 371-0460
E-mail: gabriel.delvirginia@verizon.net
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Barry Kostiner, member.
A copy of the Debtor's list of its 20 largest unsecured creditors
-- containing just five entries -- is available for free at
http://bankrupt.com/misc/nyeb16-22881.pdf
ST. JAMES NURSING: Must Amend Disclosure Statement
--------------------------------------------------
In the case captioned In re: ST. JAMES NURSING AND PHYSICAL
REHABILITATION CENTER, INC., et al., Chapter 11, Debtors, Case No.
16-42333 Jointly administered (Bankr. E.D. Mich.), Judge Thomas J.
Tucker of the United States Bankruptcy Court for the Eastern
District of Michigan, Southern Division issued an order requiring
the debtors to file an amended combined plan and disclosure
statement no later than June 29, 2016.
On June 21, 2016, the debtors in the jointly administered cases
filed a plan and disclosure statement, in a document entitled
"Debtors' Combined Plan of Reorganization and Disclosure
Statement". Judge Tucker, however, cannot yet grant preliminary
approval of the disclosure statement contained within the document,
noting several problems, which the debtors must correct.
A full-text copy of Judge Tucker's June 23, 2016 order is available
at https://is.gd/7DwPaj from Leagle.com.
St. James Nursing & Physical Rehabilitation Center, Inc. is
represented by:
Michael E. Baum, Esq.
Kim K. Hillary, Esq.
John J. Stockdale, Jr., Esq.
Jason L. Weiner, Esq.
40950 Woodward Avenue, Suite 100
Bloomfield Hills, MI 48304
Tel: (248)540-3340
Email: mbaum@schaferandweiner.com
khillary@schaferandweiner.com
jstockdale@schaferandweiner.com
dweiner@schaferandweiner.com
Daniel M. McDermott, U.S. Trustee, is represented by:
Leslie K. Berg, Esq.
Claretta Evans, Esq.
211 West Fort Street, Suite 700
Detroit, MI 48226
Tel: (313)226-7999
Fax: (313)226-7952
About St. James Nursing
St. James Nursing & Physical Rehabilitation Center Inc. sought
protection under Chapter 11 of the Bankruptcy Code in the Eastern
District of Michigan (Detroit) (Case No. 16-42333) on February 22,
2016. The petition was signed by Bradley Mali, president.
The Debtor is represented by Michael E. Baum, Esq., at Schafer and
Weiner, PLLC. The case is assigned to Judge Phillip J. Shefferly.
The Debtor estimated assets of $0 to $50,000 and debts of $1
million to $10 million.
STARVING STUDENTS: Hires Garman Turner Gordon as Attorney
---------------------------------------------------------
Starving Students of Nevada LLC seeks authorization from the U.S.
Bankruptcy Court for the District of Nevada to employ Garman Turner
Gordon LLP as Attorneys, nunc pro tunc to June 8, 2016.
The Debtor requires GTG to:
a. prepare on behalf of SSN, as Debtor-in-Possession, all
necessary of appropriate motions, applications, answers, orders,
reports, and all other papers in connection with the filing of the
Chapter 11 Case and administration of SNN's estate.
b. take all necessary or appropriate actions in connection
with a plan or plans of reorganisation and related disclosure
statement(s) and all related documents, and such further actions as
may be required in connection with the administration of SSN's
estate.
c. take all necessary actions to protect and preserve the
estate of SSN, including the prosecution of actions on SSN's
behalf, the defense of any actions commenced against SSN, the
negotiations of disputes in which SSN is involved, and the
preparation of objections to claims filed against SSN's estate;
and
d. perform all other necessary legal services in connection
with the prosecution of the Chapter 11 case.
GTG will be paid at these hourly rates:
Partners $435-$775
Associates $200-$385
Paraprofessionals $130-$190
On May 10, 2016, in conjunction with SSN's retention of GTG as its
reorganisation counsel, GTG received a retainer from non-estate
assets in the sum of $75,000 for legal services and costs to be
rendered in connection with SSN's Chapter 11 case. GTG is currently
holding the retainer of $75,000.
GTG will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Mark M. Weisenmiller, Esq., associate of Garman Turner Gordon LLP,
assured the Court that the firm does not represent any interest
adverse to the Debtors and their estates.
GTG may be reached at:
Mark M. Weisenmiller, Esq.
Gregory E. Garman, Esq.
Garman Turner Gordon LLP
650 White Drive, Set 110
Las Vegas, NV 89119
Telephone: 725-777-3000
Facsimile: 725-777-3112
E-mail: mweisenmiller@gtg.legal
ggarman@gtg.legal
About Starving Students of Nevada LLC
Starving Students of Nevada LLC filed a Chapter 11 bankruptcy
petition (Bankr. D.NV Case No. 15-13151) on June 8, 2015. Hon.
August B. Landis presides over the case. Garman Turner Gordon LLP
represents the Debtor as counsel.
In its petition, the Debtor estimated $5,656 in assets and $ 3.91
million in liabilities. The petition was signed by Ethan Margalith,
sole member of Starving Students, Inc., Debtor's managing member.
STEEL FUNDING: S&P Rates $700MM Participation Notes 'BB+'
---------------------------------------------------------
S&P Global Ratings assigned its 'BB+' credit rating to Steel
Funding Ltd.'s loan participation notes.
The note proceeds from the issuer are lent to NLMK OJSC (a
Russia-based steel company) under a loan agreement.
The key risk for the notes issued by Steel Funding is the credit
risk of NLMK, who pays timely interest on the repack notes each
quarter and ultimate principal on the final maturity date. NLMK is
rated 'BB+'.
The issuer pays the transaction expenses, which it funds using the
sum received from NLMK. The paying agent in the transaction passes
on the proceedsreceived from NLMK (both interest and principal) to
the noteholders.
S&P's rating on Steel Funding's notes is at all times equal to the
rating on NLMK (who pays interest and principal on the notes).
S&P has therefore weak-linked its rating on the notes to S&P's
'BB+' rating on NLMK.
RATINGS LIST
Steel Funding Ltd. Rating
US$700 mil loan participation notes BB+
STERLING MID-HOLDINGS: S&P Cuts ICR to CC on Planned Debt Exchange
------------------------------------------------------------------
S&P Global Ratings said it lowered its issuer credit rating on
Sterling Mid-Holdings Ltd. to 'CC' from 'CCC' and lowered the
ratings on its senior notes to 'C' from 'CC'. S&P is also placing
the ratings on CreditWatch with negative implications.
On June 26, 2016, Sterling announced an exchange offer for DFC
Finance's $800 million 10.5% senior secured notes due 2020 for
12.0% senior secured PIK toggle notes due 2020. The company offers
an early tender premium expiring on July 11, 2016, where an
eligible holder will receive $970 in exchange and $30 premium for a
total of $1,000 of par total exchange. If the holder tenders after
July 11, it will receive $970 in exchange consideration per $1,000
of par value. Sterling believes that affiliates of LoneStar hold
approximately $196 million of the existing senior notes and intend
to exchange them prior to the early tender deadline. S&P expects
the settlement of the exchange offer to occur on or about July 29,
2016, at which time we plan to lower the issuer credit rating to
'SD' (selective default) and the rating on the senior notes to 'D'
(default). S&P views this exchange offer as distressed and are
lowering the credit ratings to reflect the risk of the expected de
facto restructuring.
"We are placing our ratings on CreditWatch with negative
implications because we expect to lower the issuer credit rating to
'SD' and the rating on the senior notes to 'D' when the exchange
offer occurs," said credit analyst Gaurav Parikh.
Following the consummation of the exchange and downgrade to
default, S&P will likely raise the issuer credit rating after
completing a forward-looking review that takes into account the
results of the exchange. S&P believes its credit rating on the
company would likely be no higher than 'CCC', while the newly
issued senior secured PIK toggle notes would receive an issue
rating no higher than 'CC'. An issuer credit rating of 'CCC'
indicates that the issuer is likely to default in the next 12
months, absent an unforeseen positive development.
SUNCOAST LED: Taps Steven M. Fishman as Legal Counsel
-----------------------------------------------------
Suncoast LED Displays LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire Steven M. Fishman,
P.A. as its legal counsel.
The Debtor tapped the firm to provide these services in connection
with its Chapter 11 case:
(a) advising the Debtor about its powers and duties;
(b) preparing and filing of schedules of assets and
liabilities, statement of affairs, and other documents
required by the court;
(c) representing the Debtor at the Section 341 creditors'
meeting;
(d) advising the Debtor about its responsibilities in
complying
with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(e) preparing legal papers;
(f) protecting the interest of the Debtor in all matters
pending before the court; and
(g) negotiating with creditors concerning the formulation of
a Chapter 11 plan.
The Debtor proposes to pay $300 per hour for the services provided
by Steven Fishman, Esq., and $75 per hour for paralegal services.
Aside from professional fees, the firm will also receive
reimbursement for work-related expenses.
In a court filing, Mr. Fishman disclosed that the firm does not
represent any interests adverse to the Debtor or its estate.
The firm can be reached through:
Steven Fishman
Steven M. Fishman, P.A.
2454 McMullen Booth Road
Clearwater, FL 33759
Phone: (727) 724-9044
About Suncoast LED Displays
Suncoast LED Displays LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 16-05408) on June 23,
2016.
TECHPRECISION CORP: Posts $1.35 Million Net Income for Fiscal 2016
------------------------------------------------------------------
TechPrecision Corporation filed with the Securities and Exchange
Commission its annual report on Form 10-K disclosing net income of
$1.35 million on $16.9 million of net sales for the year ended
March 31, 2016, compared to a net loss of $3.58 million on $18.2
million of net sales for the year ended March 31, 2015.
As of March 31, 2016, TechPrecision had $12.1 million in total
assets, $10.4 million in total liabilities and $1.72 million in
total stockholders' equity.
At March 31, 2016, TechPrecision had positive working capital of
$510,000, an improvement of $2.6 million compared to negative
working capital of $2.1 million at March 31, 2015. The Company had
$1.3 million in cash and cash equivalents at March 31, 2016
approximately $4,000 lower when compared to March 31, 2015. Since
the end of the fiscal 2015, the Company's total debt has decreased
by approximately $1.0 million to $4.7 million at March 31, 2016;
and shareholders' equity has increased by $1.4 million.
Net sales of $4.9 million were higher by $1.0 million when compared
to $3.9 million in the year-ago quarter.
Gross profit was $1.7 million compared to $880,000 in the same
quarter last year. Gross margins improved in the fourth quarter of
fiscal 2016 due to improved throughput, lower materials and labor
costs, and the absence of contract losses.
Selling, general and administrative expenses decreased by
approximately 30% or $387,000 compared to the same quarter last
year. The fourth quarter of fiscal 2016 was positively impacted by
lower spending on compensation, outside advisory services and
office expense.
Net interest expense includes a reversal of deferred interest costs
of approximately $241,000 which will not have to be paid in
connection with the Utica Loan and Security Agreement.
Net income of $885,000 increased significantly compared to a net
loss of $719,000 in the prior year's fourth quarter.
Year-end Recap
"This was another quarter of operational and financial progress as
we delivered our fourth consecutive quarter of net profit and our
first full year of net profit since fiscal year 2011," stated
Alexander Shen, TechPrecision's chief executive officer. "We
improved profitability in the fourth quarter of fiscal 2016 on
increased sales volume of approximately $1.0 million compared to
the same year-ago quarter, with net profit of $885,000 compared to
a net loss of $719,000 for the fourth quarter of fiscal 2015. These
results were achieved due to our consistent sharp focus on
productivity initiatives, resource realignment, and top line growth
with core customers. Furthermore, we renegotiated terms on one of
our outstanding loans which contributed to a $2.6 million
improvement in our working capital position since fiscal 2015
year-end, improving our ability to grow."
"Moving forward, we will continue our focus on winning new
contracts with our established customers in the defense, nuclear
and precision industrial sectors, utilizing our core competencies
and know-how in custom, large scale, high-precision fabrication and
machining to be a valued, high quality supplier," said Shen. "In
particular, we see meaningful opportunities in the defense sector,
our primary business sector focus. Opportunistically, we will
pursue contracts in the aerospace, nuclear and healthcare sectors
while continuing to execute on operational run rate improvements to
increase our gross margins and cash flows. We will further
strengthen our balance sheet by taking advantage of refinancing
opportunities and paying down debt."
A full-text copy of the Form 10-K is available for free at:
https://is.gd/biCw8j
About TechPrecision
TechPrecision Corporation (OTC BB: TPCSE), through its wholly owned
subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical Components
Co., Ltd., globally manufactures large-scale, metal fabricated and
machined precision components and equipment.
TJ SIGNS SOLUTIONS: Hires Orville & McDonald Law as Attorney
------------------------------------------------------------
TJ Sign Solutions, Inc., seeks authorization from the U.S.
Bankruptcy Court for the Northern District of New York to employ
Peter A. Orville of Orville & McDonald Law P.C. as Attorney.
The Debtor requires Peter A. Orville with assistance of Orville &
McDonald Law P.C. to:
a. give the Debtor legal advice with respect to their powers
and duties as Debtor-in-Possession in the continued operation of
his business in the management of his property;
b. take necessary action to avoid liens against the Debtor's
property, remove restraints against Debtor's property and other
actions to remove any encumbrances or liens which are avoidable,
which were placed against the property of the Debtor prior to the
filing of the Petition instituting this proceeding and at a time
when the Debtor was insolvent;
c. take necessary action to enjoin and stay until decree
herein any attempt by secured creditors to enforces liens upon
property of the Debtor's in which property the Debtor has
substantial equity;
d. represent the Debtor in any proceedings which may be
instituted in this Court by creditors or other parties during the
course of this proceeding;
e. prepare on behalf of the Debtor the necessary petitions,
answers, orders, reports and other legal papers;
f. perform all other legal services for the Debtor as
Debtor-in-Possession to the employ attorneys for such services.
Orville & McDonald Law will be paid at these hourly rates:
Peter Orville $300
Zachary McDonald $225
Associates $125
Peter Orville, member of Orville & McDonald Law P.C., assured the
Court that the firm does not represent any interest adverse to the
Debtors and their estates.
Orville & McDonald Law may be reached at:
Peter Orville, Esq.
Zachary McDonald , Esq.
Orville & McDonald Law P.C.
30 Riverside Drive
Binghamton, NY 13905
Telephone: (607)770-1007
Facsimile: (607)770-1110
E-mail: peteropc@gmail.com
zmcdonald@gmail.com
About TJ Sign Solutions, Inc.
TJ Sign Solutions, Inc. filed a Chapter 11 bankruptcy petition
(Bankr. N.D.N.Y. Case No. 16-10862) on June 17, 2016. Peter Alan
Orville, Esq., at Orville & McDonald as bankruptcy counsel.
TRIANGLE PETROLEUM: Provides Update on Strategic Alternatives
-------------------------------------------------------------
Triangle Petroleum Corporation (NYSE MKT: TPLM) on June 29, 2016,
provided an update on its evaluation of strategic alternatives and
announced other corporate matters in conjunction with the filing by
its wholly-owned subsidiaries, Triangle USA Petroleum Corporation
("TUSA") and Ranger Fabrication, LLC, and their respective
subsidiaries, of voluntary petitions for relief under
Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the District of Delaware to implement
the terms of a Plan Support Agreement ("PSA") that will facilitate
the restructuring of TUSA's balance sheet.
Triangle Petroleum Corporation does not guarantee TUSA's funded
indebtedness and is not included in the filing by TUSA. TPLM will
continue to operate in the ordinary course throughout TUSA's
Chapter 11 process, while continuing to assess its own strategic
alternatives.
TPLM's ongoing assets include cash on hand, its 100% ownership
interest in RockPile Energy Services, LLC ("RockPile"), and its
minority investment in Caliber Midstream Partners, L.P. TPLM holds
$8.2 million of TUSA's 6.75% Senior Unsecured Notes ("Notes") due
2022 and an estimated $286 million in net operating losses (NOLs)
as of Jan. 31, 2016, in addition to other assets. Although
RockPile previously announced that it is conducting its own review
of strategic alternatives, TUSA's restructuring does not directly
affect TPLM's interest in RockPile.
TPLM continues to evaluate strategic options to maximize the value
of its assets and has engaged in discussions with its principal
stakeholders to identify a comprehensive solution.
TPLM also disclosed that its Board of Directors has been expanded
from five to six directors in connection with the appointment of
Mr. James B. Shein as an independent director. Mr. Shein is
currently Clinical Professor of Strategy at the Kellogg School of
Management at Northwestern University and brings extensive
restructuring, governance and fiduciary duty advisory experience.
He will play a critical role in determining and executing the best
path forward for TPLM.
The Board of Directors has formed a Special Committee and appointed
James Shein and Gus Halas, an incumbent independent director, as
its members. The Special Committee is charged with maximizing
value for the Company, its shareholders and other relevant
stakeholders (collectively, the "Company Stakeholders") as the
Company continues its ongoing evaluation of strategic alternatives.
The Board has delegated significant authority to the Special
Committee to deliberate and act on behalf of the Board and the
Company in the manner it deems to be in the best interests of the
Company Stakeholders, including with respect to the Company's
interests in its subsidiaries. The Special Committee has also been
authorized to engage advisors in carrying out its duties.
In addition, TPLM disclosed that it has adopted a tax benefits
preservation plan designed to reduce the likelihood that Triangle
will experience an "ownership change" under U.S. federal income tax
laws. This plan is similar to other tax benefits preservation
plans adopted by other public companies with significant tax
attributes.
The purpose of the tax benefits preservation plan is to protect
Triangle's ability to use its tax assets, such as net operating
loss carryforwards and built-in losses, to offset future taxable
income, which would be substantially limited if Triangle
experienced an "ownership change" as defined under Section 382 of
the Internal Revenue Code and related Internal Revenue Service
pronouncements. In general, an ownership change would occur if
Triangle's "5-percent shareholders," as defined under Section 382,
collectively increase their ownership in Triangle by more than 50
percentage points over a rolling three-year period.
As part of the plan, the Triangle Board of Directors declared a
dividend of one preferred stock purchase interest for each
outstanding share of its common stock. The issuance of preferred
stock pursuant to the plan will be subject to shareholder approval.
The interests will be distributable to shareholders of record as
of July 8, 2016, as well as to holders of shares of Triangle common
stock issued after that date, but would only be activated if
triggered by the plan.
Additional information regarding the tax benefits preservation plan
will be contained in a Form 8-K and in a Registration Statement on
Form 8-A that Triangle is filing with the Securities and Exchange
Commission.
About Triangle Petroleum
Triangle Petroleum Corporation -- http://www.trianglepetroleum.com/
-- is a Denver-based oil and natural gas exploration and production
company. Triangle Petroleum conducts its E&P, oilfield and
midstream activities in the Williston Basin of North Dakota and
Montana.
Triangle Petroleum reported a net loss of $822 million on $358
million of total revenues for the year ended Jan. 31, 2016,
compared to net income of $93.4 million on $573 million of total
revenues for the year ended Jan. 31, 2015.
KPMG LLP, in Denver, Colorado, issued a "going concern"
qualification on the Company's consolidated financial statements
for the year ended Jan. 31, 2016, citing that the Company does not
have sufficient liquidity to meet this obligation, if called by the
lenders. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
TRIANGLE USA: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Triangle USA Petroleum Corporation 16-11566
1200 17th Street, Suite 2500
Denver, CO 80202
Foxtrot Resources LLC 16-11567
Leaf Minerals, LLC 16-11568
Ranger Fabrication Management Holdings, LLC 16-11569
Ranger Fabrication, LLC 16-11570
Ranger Fabrication Management, LLC 16-11565
Type of Business: Oil and gas exploration and development company
Chapter 11 Petition Date: June 29, 2016
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Judge: Hon. Mary F. Walrath
Debtors' Counsel: Sarah E. Pierce, Esq.
SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
One Rodney Square
P.O. Box 636
Wilmington, DE 19899
Tel: 302-651-3127
Fax: 302-329-9416
E-mail: sarah.pierce@skadden.com
- and -
George N. Panagakis, Esq.
Ron E. Meisler, Esq.
Christopher M. Dressel, Esq.
Renu P. Shah, Esq.
SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
155 N. Wacker Drive
Chicago, Illinois 60606-1720
Tel: (312) 407-0700
Fax: (312) 407-0411
E-mail: george.panagakis@skadden.com
ron.meisler@skadden.com
christopher.dressel@skadden.com
renu.shah@skadden.com
Debtors'
Financial
Advisor: AP SERVICES, LLC
Debtors'
Investment
Banker: PJT PARTNERS INC.
Debtors'
Claims &
Noticing
Agent: PRIME CLERK LLC
Estimated Assets: $500 million to $1 billion
Estimated Debts: $500 million to $1 billion
The petitions were signed by Ashley Garber, secretary.
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Wilmington Trust, NA TUSA Senior Notes $392,508,569
1110 North Market St, 5th Floor
Wilmington, DE 19890
Attn: Rita Marie Ritrovato
rritrovato@wilmingtontrust.com
Fax: 302-636-4140
Noble Drilling LLC Trade Payable $261,005
1925 South Timberline Office
Building
Fort Collins CO 80525
Tel: 970-631-8428
STV/GWD Trade Payable $230,000
melissa.petrillo-shirey@stvinc.com
McKenzie Electric Co-Op Trade Payable $220,940
Weatherford US LLP Trade Payable $219,836
Lufkin Industries Inc. Trade Payable $216,408
Sun Well Service Inc. Trade Payable $198,210
Canary LLC Trade Payable $191,503
Kelly Tools LLC Trade Payable $186,169
Industrial Piping Specialists Trade Payable $180,228
jsvejkovsky@ipies.com
Western Falcon Inc. Trade Payable $169,205
Encore Electric Inc. Trade Payable $167,615
Mike.McCabe@EncoreElectric.com
Jensco Pipe & Equipment Inc. Trade Payable $156,076
L&K Electric Trade Payable $143,822
1st Rate Energy SVCS Inc. Trade Payable $117,434
Dnow LLP Trade Payable $113,149
Basic Energy Services LP Trade Payable $109,241
Nalco Champion Trade Payable $108,225
Slaugh Fishing Services Inc. Trade Payable $106,804
Questar Energy Services Inc. Trade Payable $104,876
TRIANGLE USA: Files Ch.11 Petition to Facilitate Restructuring
--------------------------------------------------------------
Triangle USA Petroleum Corporation ("TUSA") and its affiliates on
June 29, 2016, filed voluntary petitions for relief under Chapter
11 of the United States Bankruptcy Code in the United States
Bankruptcy Court for the District of Delaware to implement the
terms of a Plan Support Agreement ("PSA") that will facilitate the
restructuring of its balance sheet.
TUSA is a wholly-owned subsidiary of Triangle Petroleum Corporation
(NYSE MKT: TPLM, or "TPC"). Neither TPLM nor its affiliated
company, RockPile Energy Services, LLC, is included in TUSA's
Chapter 11 filing. Ranger Fabrication, LLC, a minor, wholly-owned
subsidiary of TPLM that ceased operating earlier this year, has
filed for bankruptcy alongside TUSA in order to complete an orderly
wind down of its affairs.
TUSA expects to continue its operations without interruption and
has more than adequate liquidity to fund its operations during the
restructuring process. At the time of its Chapter 11 filing, TUSA
had approximately $88 million in cash and cash equivalents. TUSA
has requested Court approval to utilize cash collateral as approved
under an agreement with its bank group. Accordingly, TUSA does not
expect to seek debtor-in-possession ("DIP") financing.
Following several months of negotiations, TUSA has entered into a
PSA with holders of approximately 73% of TUSA's $381 million 6.75%
Senior Unsecured Notes ("Notes") due 2022 ("Participating
Noteholders"). The PSA provides for the Notes to be converted into
equity and a new money rights offering for $100 million, which will
be backstopped by a commitment from certain Participating
Noteholders. TUSA's existing reserve-backed credit facility will
be paid in full from a new revolving credit facility, existing cash
at emergence, and proceeds of the new money rights offering. TUSA
plans to utilize the Chapter 11 process to continue discussions
with other stakeholders, including other noteholders, the bank
group in its senior reserve-backed credit facility and parties with
which TUSA currently has midstream agreements, including affiliates
of Caliber Midstream Partners, L.P.
TUSA has filed a variety of customary "first day" motions with the
Court seeking, among other things, authority to maintain its
existing cash management system, and the ability to make payments
to royalty interest holders, working interest partners, and with
respect to wages and benefits, lease operating expenses, drilling
and production costs, and other related operating costs, and other
customary relief. When granted, such motions will ensure TUSA's
ability to maintain operations without interruption throughout the
restructuring process.
John Castellano of AP Services, LLC has been appointed TUSA's Chief
Restructuring Officer.
TUSA intends to complete its balance sheet restructuring as quickly
as possible and emerge as a stronger enterprise with a capital
structure better suited to a lower commodity price environment and
the potential to create and deliver long-term value.
Additional information, including Court filings, regarding TUSA's
restructuring is available at https://cases.primeclerk.com/TUSA or
by contacting TUSA's proposed notice and claims agent at
855-842-4122 (for toll free domestic calls) or 929-333-8982 (for
international calls) or by e-mail at tusainfo@primeclerk.com
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel to TUSA, PJT Partners is serving as its financial advisor
and AP Services, LLC is its restructuring advisor.
About Triangle Petroleum
Triangle Petroleum Corporation -- http://www.trianglepetroleum.com/
-- is a Denver-based oil and natural gas exploration and production
company. Triangle Petroleum conducts its E&P, oilfield and
midstream activities in the Williston Basin of North Dakota and
Montana.
Triangle Petroleum reported a net loss of $822 million on $358
million of total revenues for the year ended Jan. 31, 2016,
compared to net income of $93.4 million on $573 million of total
revenues for the year ended Jan. 31, 2015.
KPMG LLP, in Denver, Colorado, issued a "going concern"
qualification on the Company's consolidated financial statements
for the year ended Jan. 31, 2016, citing that the Company does not
have sufficient liquidity to meet this obligation, if called by the
lenders. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
TRIANGLE USA: Files for Bankruptcy with Plan Support Agreement
--------------------------------------------------------------
In the midst of the historically severe downturn in the commodity
markets, Triangle USA Petroleum Corporation and its affiliates
filed voluntary petitions under Chapter 11 of the Bankruptcy Code
in order to implement a balance sheet restructuring with support
from majority of noteholders.
The Debtors said that as a result of the commodity price downturn,
their 2016 revenue declined by over $100 million from fiscal year
2015, despite a 17% year-over-year increase in average daily
production volumes. The same trends are evident in the Debtors'
proved reserve values, which fell from nearly $1 billion to
approximately $330 million between fiscal years 2015 and 2016.
"Since fall 2014, commodity prices have fallen dramatically, with
crude oil and natural gas spot prices reaching lows of
approximately $26/Bbl and $1.50/MMBtu, respectively, in early 2016.
The Debtors' weighted average sale price per barrel of oil
equivalent fell from $68 in fiscal year 2015 to $37 in fiscal year
2016," according to John R. Castellano, chief restructuring officer
of TUSA.
While the Debtors have implemented numerous initiatives to control
costs and manage liquidity during the market downturn, they
maintained that many aspects of their cost structure -- including
their cost of midstream services -- are relatively inelastic.
"The Debtors have responded to the fall in commodity prices with
numerous efforts to proactively manage liquidity and preserve value
for stakeholders, including reductions in capital expenditures,
targeted sales of non-core assets, and reductions in G&A spending.
Despite Triangle's myriad of efforts to control costs and manage
liquidity, Triangle recognized that a prolonged downturn in
commodity prices could necessitate a more comprehensive
deleveraging transaction," Mr. Castellano added.
Accordingly, in March 2016, the Debtors retained legal and
financial advisors to assist in evaluating strategic alternatives.
In collaboration with their restructuring advisors, the Debtors
carefully evaluated a range of strategic options, including selling
material assets or business segments; seeking additional financing;
or refinancing, recapitalizing, or restructuring all or a portion
of their existing debt.
Given the lack of sufficient stakeholder support for a consolidated
restructuring, the Debtors focused their efforts on a "standalone"
restructuring of TUSA.
Plan Support Agreement
Following months of negotiations, on June 29, 2016, the Debtors
entered into a plan support agreement with the holders of
approximately 73% in aggregate principal amount of TUSA's $381
million 6.75% senior unsecured notes due 2022. Pursuant to the
PSA, the Ad Hoc Noteholder Group has agreed to support a
pre-arranged Chapter 11 plan under which the Debtors will
substantially deleverage their balance sheets by, among other
things, exchanging the TUSA Notes for equity interests in
reorganized TUSA. To enhance liquidity and position the
reorganized Debtors to capture growth opportunities as market
conditions rebound, the PSA further contemplates a new-money rights
offering of approximately $100 million backstopped by
members of the Ad Hoc Noteholder Group.
Under the contemplated plan, the Debtors will pay the existing RBL
Credit Facility in full in cash on the effective date and exchange
the TUSA Notes for 100% of the new common stock of reorganized
TUSA, subject to dilution from, among other things, other general
unsecured claims and a management incentive plan.
Orderly Wind Down of the Ranger Debtors
Pursuant to the PSA, the Participating Noteholders contemplate a
cash distribution to general unsecured creditors of Ranger
Fabrication, LLC and its two Debtor subsidiaries under a Chapter 11
plan. Ranger ceased operations and liquidated its remaining assets
earlier this year. The Ranger auction generated insufficient cash
proceeds to fully repay Ranger's secured debt and, as a result, no
proceeds were available for distribution to Ranger's unsecured
creditors. While the Debtors believe that Ranger's general
unsecured creditors have received all to which they are legally
entitled, given Ranger's unsatisfied secured debt, certain Ranger
creditors have nonetheless commenced lawsuits or issued demands
against Ranger on account of their unpaid claims.
To avoid the distraction of responding to those proceedings and
demands in ad hoc fashion, the Debtors, with the support of the Ad
Hoc Noteholder Group, believe that a Chapter 11 plan of liquidation
represents the fairest and most efficient way to complete Ranger's
wind down. The Debtors anticipate that a proposed cash
distribution to Ranger's unsecured creditors under such plan will
result in better recoveries for such creditors than would otherwise
be possible.
First Day Motions
To minimize any business disruption caused by the commencement of
these Chapter 11 cases, TUSA has filed a variety of customary
"first day" motions with the Court seeking, among other things,
authority to maintain its existing cash management system, pay
employee obligations, prohibit utility providers from discontinuing
services, pay obligations in connection with their oil and gas
properties in the ordinary course of business, and use cash
collateral. A full-text copy of the declaration in support of the
First Day Motions is available for free at:
http://bankrupt.com/misc/13_TRIANGLE_declaration.pdf
About Triangle USA
Triangle USA Petroleum Corporation is an independent exploration
and production company with a strategic focus on developing the
Bakken Shale and Three Forks formations in the Williston Basin of
North Dakota and Montana. TUSA is a wholly owned subsidiary of
Triangle Petroleum Corporation (NYSE MKT: TPLM). Neither TPLM nor
its affiliated company, RockPile Energy Services, LLC, is included
in TUSA's Chapter 11 filing.
The cases are pending before the Honorable Mary F. Walrath, and the
Debtors have requested that their cases be jointly administered
under Case No. 16-11566.
The Debtors have engaged Skadden, Arps, Slate, Meagher & Flom LLP
as counsel, AP Services, LLC, as financial advisor, PJT Partners
Inc. as investment banker and Prime Clerk LLC as claims & noticing
agent.
In its petition, TUSA estimated assets in the range of $500 million
to $1 billion and liabilities of up to $1 billion.
TURNKEY PRODUCTS: Hires Jeff Sims as Chief Financial Officer
------------------------------------------------------------
Turnkey Products, LLC seeks authorization from the U.S. Bankruptcy
Court for the Middle District of North Carolina to employ Jeff Sims
as Chief Financial Officer.
On March 30, 2016 the Debtor caused to be filed the Second Amended
Chapter 11 Plan of Reorganization dated March 30, 2016. The Plan
proposes to repay certain indebtedness owed to creditors from
future operations and future profitability of the Debtor. In
addition, the Plan involves incurring certain indebtedness with a
lender, more particularly described in the Plan as the Exit Lender,
to take out the Debtor's current factor and inventory lender. The
Debtor intends for the Exit Lender to be Capital Business Credit,
LLC. The Confirmation Hearing on the Debtor's Plan is currently
scheduled for July 5, 2016.
The Debtor is in need of the services of a Chief Financial Officer
to aid and assist the Debtor in implementing the Plan, creating and
monitoring budgets and pro-formas, and monitoring the Debtor's
debts and debt service mechanisms. Additionally, the Debtor may be
in need of the services of a Chief Financial Officer to assist the
Debtor in general bookkeeping duties.
Jeff Sims will be compensated $135 per hour. He assures the Court
that he does not represent any interest adverse to the Debtors and
their estates.
Jeff Sims may be reached at:
Jeff Sims
487 Adams Ridge Drive
Greensboro, NC 27407
Cellphone: 336-340-3218
E-mail: simsjeff@me.com
About Turnkey Products, LLC
Turnkey Products, LLC filed a Chapter 11 bankruptcy petition
(Bankr. M.D.N.C.. Case No. 15-10411) on April 17, 2015. Hon. Lena
M. James presides over the case. Ivey, McClellan, Gatton %
Siegmund, LLP represents the Debtor as counsel.
Turnkey has been in business since 1998, designing and importing
home office furniture from China and Vietnam. Turnkey sells its
products to furniture retailers across the United States through
multi-lined, independently contracted salespeople or sales groups.
In its petition, the Debtor estimated $0 to $50,000 in assets and $
1million to $10 million in liabilities. The petition was signed by
Richard Olmeda, member/manager.
TUSCANY ENERGY: ATB Financial Demands Repayment of $8.5M Loan
-------------------------------------------------------------
Tuscany Energy Ltd. on June 29, 2016, disclosed that following
extensive discussions with its lender under its credit facility,
ATB Financial has demanded repayment of all amounts owing
thereunder, being approximately $8.5 million, and delivered a
Notice of Intention to Enforce Security under section 244 of the
Bankruptcy and Insolvency Act (Canada) (the "BIA") whereby ATB sets
forth its intention to enforce its security for repayment of the
loan. In connection therewith, the Company has consented to the
early enforcement by ATB of its security and to the appointment of
a receiver over its Saskatchewan based assets. The application for
the appointment of the receiver was scheduled to be heard at 10:00
a.m. (Saskatoon time) on June 30, 2016 at Court of Queen's Bench in
Saskatoon, Saskatchewan. In connection therewith, the Company also
intends to file an assignment in bankruptcy under the BIA with
respect to its remaining assets. Following such, the receiver of
the Saskatchewan based assets and the trustee in bankruptcy in
respect of Tuscany's remaining assets, which is expected to be
Grant Thornton Limited in both cases, will be in charge of managing
the day-to-day affairs of Tuscany and should be contacted with
respect to any questions concerning the assets and liabilities of
the Company. Upon the appointment of the receiver and the
assignment in bankruptcy being made, it is expected that all of
Tuscany's directors will resign.
As previously announced, the Company initiated a process in
December 2015 to identify and examine strategic alternatives for
the purpose of enhancing shareholder value. Although it discussed
possible transactions with various parties, the prolonged
depression in commodity prices and resulting negative impact on the
Company's operating results and equity markets resulted in its
inability to secure a timely transaction on acceptable terms.
Calgary-based Tuscany Energy Ltd. -- http://www.tuscanyenergy.com/
-- is a heavy oil development and production company with reserves,
land holdings and production in Canada. The Company's principal
focus is the exploitation of oil resources in Alberta and
Saskatchewan through horizontal drilling.
UCI INTERNATIONAL: Proposes Bid Procedures for De Minimis Assets
----------------------------------------------------------------
UCI International, LLC, and its affiliates filed a motion asking
the U.S. Bankruptcy Court for the District of Delaware, to approve
bid procedures for the sale, transfer or abandonment of de minimis
assets to a single buyer or group of related buyers with a gross
transaction value equal to or less than $5,000,000.
A hearing for the Motion is set for July 7, 2016 at 3:00 p.m. (ET).
Objection deadline is set for June 30, 2016 at 4:00 p.m. (ET).
In the normal course of operations, the Debtors come into
possession of certain assets that
(a) are no longer required for the operation of their businesses,
(b) are no longer part of the Debtors' strategic plans and have
been rendered obsolete, excessive, or burdensome; or
(c) the Debtors have determined, after further examination, are
of marginal or no value to their estates.
Moreover, the Debtors anticipate that, during the course of the
Chapter 11 cases, they will continue to identify certain assets
that are not a part of the Debtors' strategic plans. Many of these
assets are likely to be surplus, obsolete or non-core assets of a
relatively de minimis value compared to the Debtors' total asset
base.
The Debtors are now in the process of closing down and transferring
the assembly portion of that plant to Puebla, Mexico. During this
process, the Debtors have become aware of certain non-necessary
pieces of equipment that are De Minimis Assets that are no longer
necessary to operations, but could provide value to the Debtors'
estates via a sale.
The Debtors expect to take all reasonable steps to sell the De
Minimis Assets that are not needed for their operations. The costs
associated with sales of certain De Minimis Assets, however, may
exceed any possible proceeds thereof.
The inability to consummate a commercially reasonable sale of De
Minimis Assets would indicate that these De Minimis Assets have no
meaningful monetary value to the Debtors' estates. Further, the
costs of storing and maintaining such De Minimis Assets may burden
the Debtors' estates.
In the exercise of their sound business judgment, the Debtors have
determined that the prompt sale of De Minimis Assets without the
need for further court approval is in the best interests of their
estates and creditors. In the event the Debtors are able to locate
buyers for such assets, it is likely that the proposed buyers'
offers will be conditioned on a quick sale and a process with
minimum costs and expenses.
A copy of the De Minimis Asset Sale Procedures and Abandonment
Procedures attached to the Motion is available for free at
http://bankrupt.com/misc/UCI_130_Sale_M.pdf
The Debtors are represented by:
Larry J. Nyhan
Jessica C.K. Boelter
Kerriann S. Mills
Geoffrey M. King
Michael T. Gustafson
SIDLEY AUSTIN LLP
One South Dearborn Street
Chicago, IL 60603
Telephone: (312) 853-7000
Facsimile: (312) 853-7036
- and -
Robert S. Brady
Edmon L. Morton
Ashley E. Jacobs
Elizabeth S. Justison
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square, 1000 North King Street
Wilmington, DE 19801
Telephone: (302) 571-6600
Facsimile: (302) 571-1253
About UCI International
UCI International, LLC, headquartered in Lake Forest, IL, designs,
manufactures, and distributes vehicle replacement parts, including
a broad range of filtration, fuel delivery systems, and cooling
systems products in the automotive, trucking, marine, mining,
construction, agricultural, and industrial vehicles markets.
UCI and its affiliates sought Chapter 11 protection (Bankr. D. Del.
Case No. 16-11355) on June 1, 2016. The Debtors are represented by
lawyers at Sidley Austin LLP. Alvarez & Marsal provides the
company with financial advice and Moelis & Company LLC is the
Debtors' investment banker. Garden City Group serves as the
Debtors' Claims Agent. Wilmington Trust is the Indenture Trustee
for a $400-million issue of 8.625% Senior Notes Due 2019.
UNIQUE INSURANCE: A.M. Best Lowers Finc'l. Strength Rating to C++
-----------------------------------------------------------------
A.M. Best has downgraded the financial strength rating (FSR) to C++
(Marginal) from B- (Fair) and the issuer credit rating (ICR) to
"b+" from "bb-" of Unique Insurance Company (Unique) (Chicago, IL).
The outlook for the FSR has been revised to stable from negative,
while the outlook for the ICR remains negative.
The rating downgrades reflect the continued deterioration of
Unique's overall risk-adjusted capitalization. While net premium
written decreased by year-end 2015, this was due to an increase in
the company's quota share agreement, as gross writings and policy
count continued to increase approximately 25% compared with the
prior year. As a result of the growth, incurred losses increased
and loss reserves continued to develop unfavorably. When compared
with other private passenger non-standard automobile writers, all
of Unique's leverage measures are elevated. The company's high
expense position, driven by commission costs, also contributes
negatively to the company's profitability.
Partially offsetting these negative rating factors are Unique's
generally positive operating results. In each of the past five
years, the company has generated positive net income and positive
pre-tax and total returns on revenue and equity. The company's
average pure loss ratio compares favorably with the industry
composite. Unique has added to surplus in each of the past four
years due to a combination of investment income and fee income that
offsets overall underwriting losses. Nevertheless, overall
risk-adjusted capitalization has trended downward due to the
aforementioned growth.
UNIVERSAL SECURITY: Delays March 31 Form 10-K Report
----------------------------------------------------
Universal Security Instruments, Inc., filed with the U.S.
Securities and Exchange Commission a Notification of Late Filing on
Form 12b-25 with respect to its annual report on Form 10-K for the
year ended March 31, 2016.
The Company owns a 50% interest in a Hong Kong Joint Venture
operating in the Peoples Republic of China, and financial results
of the Joint Venture must be reflected in the Company's Annual
Report on Form 10-K. The Company said the preparation of the Joint
Venture's financial results has not been completed.
About Universal Security
Owings Mills, Maryland-based Universal Security markets and
distributes safety and security products which are primarily
manufactured through its 50%-owned Hong Kong Joint Venture.
At Dec. 31, 2015, the Company had $20,213,695 in total assets,
$3,226,026 in total current liabilities and $16,987,669 in total
shareholders' equity.
"Our history of operating losses, declining revenues in prior
years, and limited financing options raises substantial doubt about
our ability to continue as a going concern. The Company had net
losses of $1,362,552 for the nine months ended December 31, 2015,
and $3,704,985 and $4,450,244 for the fiscal years ended March 31,
2015 and 2014, respectively. The Company is monitoring its
liquidity and working capital position in light of continued
operating losses, and decreases in its cash and working capital
position over the past four fiscal years of operations. In
addition to the expanded factoring agreement with Merchant Factors
Corporation (Merchant) as discussed below, the Company has
negotiated payment terms on its trade accounts payable to the Hong
Kong Joint Venture. The payment terms on the trade accounts
payable to the Hong Kong Joint Venture provide ninety day repayment
terms on up to $1,000,000 of purchases of the Company's new sealed
product line. The Company also believes that its cash position can
be improved by a combination of reductions in inventory and by
lowering expenses. In addition, the Company is prepared to
initiate changes in its operations, if needed, to reduce its
operating costs while maintaining its current level of customer
service. However, there are potential risks, including that the
Company's revenues may not reach levels required to return to
profitability, costs may exceed the Company's estimates, or the
Company's working capital needs may be greater than anticipated.
Any of these factors may change the Company’s expectation of cash
usage in the remainder of the fiscal year ending March 31, 2016,
and beyond, or may significantly affect the Company's level of
liquidity. These financial statements do not include any
adjustments that might result from the Company not being able to
continue as a going concern," the Company stated in its quarterly
report for the period ended Dec. 31, 2015.
UNIVERSAL SECURITY: Douglas Ruth Files Schedule 13G with SEC
------------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange Commission
on June 28, 2016, Douglas Ruth disclosed that he beneficially owns
740,645 shares of common stock of Universal Security Instruments,
Inc., representing 32 percent of the shares outstanding. Lenox
Capital Management, Inc. also reported beneficial ownership of
726,145 common shares.
The number of shares beneficially owned over which Douglas
Ruth has shared power to vote, is an aggregate number based upon
the shares owned directly by Mr. Ruth, as well as those shares held
in discretionary accounts of customers of Lenox Capital Management,
Inc., of which Douglas Ruth is the Sole Shareholder. Each of these
individual customers has the right to receive or the power to
direct the receipt of dividends from, or the proceeds from the sale
of, such securities, based upon their own individual holdings. No
individual customer owns more than five percent of the class.
A copy of the regulatory filing is available for free at:
https://is.gd/7jYAFw
About Universal Security
Owings Mills, Maryland-based Universal Security markets and
distributes safety and security products which are primarily
manufactured through its 50%-owned Hong Kong Joint Venture.
At Dec. 31, 2015, the Company had $20,213,695 in total assets,
$3,226,026 in total current liabilities and $16,987,669 in total
shareholders' equity.
"Our history of operating losses, declining revenues in prior
years, and limited financing options raises substantial doubt about
our ability to continue as a going concern. The Company had net
losses of $1,362,552 for the nine months ended December 31, 2015,
and $3,704,985 and $4,450,244 for the fiscal years ended March 31,
2015 and 2014, respectively. The Company is monitoring its
liquidity and working capital position in light of continued
operating losses, and decreases in its cash and working capital
position over the past four fiscal years of operations. In
addition to the expanded factoring agreement with Merchant Factors
Corporation (Merchant) as discussed below, the Company has
negotiated payment terms on its trade accounts payable to the Hong
Kong Joint Venture. The payment terms on the trade accounts
payable to the Hong Kong Joint Venture provide ninety day repayment
terms on up to $1,000,000 of purchases of the Company's new sealed
product line. The Company also believes that its cash position can
be improved by a combination of reductions in inventory and by
lowering expenses. In addition, the Company is prepared to
initiate changes in its operations, if needed, to reduce its
operating costs while maintaining its current level of customer
service. However, there are potential risks, including that the
Company's revenues may not reach levels required to return to
profitability, costs may exceed the Company's estimates, or the
Company's working capital needs may be greater than anticipated.
Any of these factors may change the Company’s expectation of cash
usage in the remainder of the fiscal year ending March 31, 2016,
and beyond, or may significantly affect the Company's level of
liquidity. These financial statements do not include any
adjustments that might result from the Company not being able to
continue as a going concern," the Company stated in its quarterly
report for the period ended Dec. 31, 2015.
UNO CHARTER: S&P Lowers Revenue Bonds Rating to BB+
---------------------------------------------------
S&P Global Ratings has lowered its rating on Illinois Finance
Authority's series 2011A and taxable series 2011B charter school
refunding and improvement revenue bonds, issued for the UNO Charter
School Network (UCSN), and further guaranteed by United
Neighborhood Organization (UNO), to 'BB+' from 'BBB-'. The outlook
is negative.
"The downgrade and negative outlook are based on the UCSN's failure
to improve its cash position along with potential uncertainty
regarding the possibility of charter revocation and the state
funding environment," said S&P Global Ratings credit analyst Laura
Kuffler-Macdonald.
UCSN's operating days' cash on hand have declined over the past
three years, falling from 58 days to 41 days in fiscal 2015 without
material improvements expected in fiscal 2016. These levels are
not consistent with the investment-grade category. The state
funding environment in Illinois is volatile but S&P don't expect
significant delays in payments. There could be some variance in
frequency of payments, but overall, minimal disruption is expected.
S&P believes that UCSN has the financial capacity to withstand any
short-term delays or disruptions in payments but such events could
further pressure UCSN's already-weak cash position.
S&P remains concerned about the lack of a budget at the state and
the fact that Illinois continues to operate without a structurally
balanced budget, which could affect per pupil payments to Illinois
charter schools over the medium term. S&P will continue to monitor
the state budgetary situation and its impact on charter schools.
The rating reflects S&P's view of these credit risks:
-- State budgetary pressures that could limit per pupil
funding;
-- The charter renewal risks associated with any charter
school;
-- Declining days' cash on hand as of June 30, 2015, of more
than 41 down from 51 days in fiscal 2014; and
-- Potential challenges associated with the recent transition
to fully independent operations.
S&P believes these factors support the rating:
-- Three successful charter renewals, including the most recent
one at June 30, 2013, for five years;
-- Positive operations for fiscal years 2011 through 2015 and
projected for fiscal 2016, after deficits in fiscal years
2009 and 2010;
-- Adequate coverage of maximum annual debt service of about
1.3x in fiscal 2015; S&P's coverage calculations assume the
operations and debt associated with all of the UCSN schools,
which is expected to continue for fiscal 2016;
-- Wait lists at most of the schools and room to grow at many
locations; and
-- restructured management team.
The negative outlook reflects S&P's uncertainty regarding the state
funding environment, charter revocation, and weak cash position.
S&P would consider a further negative rating action if UCSN falls
behind in its remediation plan; if funding from state is delayed or
interrupted, such that it significantly affects operating
performance or liquidity, or a budget is passed that significantly
cuts per pupil funding; or if an UNO bankruptcy impairs UCSN's
operations.
S&P could revise the outlook to stable if issues surrounding UNO
and with the charter authorizer are resolved. An upgrade is not
likely during the outlook period, absent significant improvement in
days' cash on hand commensurate with 'BBB-' medians.
VENOCO INC: Needs Until October 17 to Decide on Leases
------------------------------------------------------
Venoco, Inc., and its affiliated debtors ask the U.S. Bankruptcy
Court for a 90-day extension of the time within which they must
assume or reject unexpired leases of nonresidential real property
from July 18, 2016, through October 17, 2016, without prejudice to
the right of the Debtors to seek further extensions.
The Debtors' decision regarding whether to assume or reject any
particular Unexpired Lease depends on a number of different
factors, including an assessment as to whether the terms of the
Unexpired Lease are commensurate with the local market and are
consistent with their overall restructuring objectives and to
ensure that the Debtors maintain flexibility with respect to the
Unexpired Leases as the Debtors' restructuring continues.
Currently, the Debtors are still soliciting votes on the Plan while
the confirmation hearing is scheduled to occur on July 13, and out
of caution, in the event the Plan is not confirmed, the Debtors
will need additional time to review the terms of the Unexpired
Leases to determine whether assumption of such Unexpired Leases is
consistent with the Debtors go-forward restructuring objectives.
A hearing on the motion has been set on July 13, 2016, and
objections thereto are due on July 6.
Counsel for Debtors and Debtors in Possession:
Robert J. Dehney, Esq.
Andrew R. Remming, Esq.
Erin R. Fay, Esq.
MORRIS, NICHOLS, ARSHT & TUNNEL LLP
1201 North Market Street, 16th Floor
P.O. Box 1347
Wilmington, Delaware 19899
Telephone: (302) 658-9200
Facsimile: (302) 658-3989
Email: rdehney@mnat.com
aremming@mnat.com
efay@mnat.com
-- and --
Robert G. Burns, Esq.
Robin J. Miles, Esq.
BRACEWELL LLP
1251 Avenue of Americas, 49th Floor
New York, New York 10020-1104
Telephone: (212) 508-6100
Facsimile: (800) 404-3970
Email: Robert.Burns@bracewelllaw.com
Robin.Miles@bracewelllaw.com
-- and --
Mark E. Dendinger, Esq.
BRACEWELL LLP
CityPlace I, 34th Floor
185 Asylum Street
Hartford, Connecticut 06103
Telephone: (860) 947-9000
Facsimile: (800) 404-3970
Email: Mark.Dendinger@bracewelllaw.com
About Venoco Inc.
Headquartered in Denver, Colorado, Venoco, Inc., Denver Parent
Corporation, TexCal Energy (LP) LLC, Whittier Pipeline Corporation,
TexCal Energy (GP) LLC, Ellwood Pipeline, Inc., and TexCal Energy
South Texas, L.P. are independent energy companies primarily
focused on the acquisition, exploration, production and Development
of oil and gas properties in California. As of the Petition Date,
the Debtors held interests in approximately 72,053 net acres in
California, of which 48,836 are developed. As of the Petition
Date, the Debtors employed approximately 160 people.
The Debtors were founded by Timothy M. Marquez in Carpinteria,
California in 1992. In January 2012, Denver Parent Company, an
affiliate of Mr. Marquez, who then owned 50% of the outstanding
shares of Venoco common stock, took the company private again by
acquiring all of the outstanding common stock for $12.50 per
share.
After going private in January 2012, the Debtors were left with
significant debt obligations, which in 2012 exceeded $845 million,
as disclosed in filings with the Court. Between 2012 and 2014, the
Debtors completed a number of asset sales, generating over $470
million in net proceeds for capital expenditures and for paydowns
of the debt.
Venoco, Inc., et al., filed Chapter 11 bankruptcy petitions (Bankr.
D. Del. Proposed Lead Case No. 16-10655) on March 18, 2016. The
Debtors estimated assets in the range of $100 million to $500
million and debts of up to $1 billion. Hon. Kevin Gross has been
assigned the cases.
The Debtors have hired Morris, Nichols, Arsht & Tunnell, LLP, and
Bracewell LLP as counsel; PJT Partners LP as financial advisor;
Deloitte LLP as restructuring advisor; Ernst & Young LLP as
independent auditor and tax advisor and BMC Group, Inc., as notice,
claims and balloting agent.
VERESEN INC: Egan-Jones Assigns BB+ Sr. Unsecured Debt Rating
-------------------------------------------------------------
Egan-Jones Ratings Company assigned BB+ senior unsecured ratings on
debt issued by Veresen Inc. on June 27, 2016.
Veresen Inc. is a Calgary, Alberta-based energy infrastructure
company with three main lines of business: Pipelines, Natural Gas
and Power Generation.
VWR FUNDING: S&P Affirms 'BB-' CCR & Revises Outlook to Positive
----------------------------------------------------------------
S&P Global Ratings affirmed all ratings on VWR Funding Inc.,
including the 'BB-' corporate credit rating, and revised the
outlook to positive from stable.
At the same time, S&P assigned its 'BB-' corporate credit rating to
VWR Corp., parent company of subsidiary VWR Funding Inc. The
outlook is positive.
S&P subsequently withdrew its corporate credit rating on VWR
Funding Inc.
"The positive outlook reflects declining leverage, solid operations
and cash flows, and a reduction in the financial sponsors' stake in
the company," said S&P Global Ratings credit analyst Tulip Lim.
S&P could raise the rating if it become convinced that leverage
will continue to decline and remain below 4x.
VWR has a well-established position as one of the largest
distributors of laboratory supplies and a strong presence in North
America and Europe. However, the market remains fragmented, as S&P
estimates that VWR has only approximately 8% of the global market
place. S&P believes its global sourcing and distribution
capabilities are beneficial, but its large pharmaceutical industry
and other customers have become more price-sensitive.
S&P's rating outlook on VWR is positive, reflecting the potential
for an upgrade if S&P become convinced that leverage will remain
below 4x. It also reflects S&P's expectation for steady operating
trends that include low- to mid-single-digit revenue growth, flat
EBITDA margins, and measured acquisition activity that contributes
to leverage reduction.
S&P could revise its outlook back to stable if it expects the
company would sustain leverage above 4x. This could occur if the
company made an acquisition of more than $200 million. It could
also occur if revenue growth flattened and margins contracted by 50
basis points. This could occur because of intensifying
competition, foreign exchange headwinds, or unexpected operating
missteps which delay deleveraging.
S&P could raise the rating if it became convinced that VWR's
leverage would remain below 4x. This could occur if the company
performs modestly better than S&P's base-case scenario and
financial sponsors continue to reduce their stake in the company
such that S&P expects leverage will remain under 4x longer term.
WILLIAM CONTRACTOR: Suit vs. Mercado, et al., Dismissed
-------------------------------------------------------
Judge Brian K. Tester of the United States Bankruptcy Court for the
District of Puerto Rico granted the motion filed by Jose Mercado
and Sonia Ortiz to dismiss the adversary proceeding captioned
WILLIAM CONTRACTOR, INC., Plaintiff, v. JOSE MERCADO, et al.,
Defendants, Adversary No. 15-00263 BKT (Bankr. D.P.R.).
The bankruptcy case is IN RE: WILLIAM CONTRACTOR, INC., Chapter 11,
Debtor, Case No. 15-06311 BKT (Bankr. D.P.R.).
A full-text copy of Judge Tester's June 22, 2016 opinion and order
is available at https://is.gd/dqwP8E from Leagle.com.
WILLIAM CONTRACTOR INC is represented by:
Damaris Quinones Vargas, Esq.
BUFETE QUINONES VARGAS & ASOC.
P.O. Box 429
Cabo Rojo, PR 00623
Tel: (787)851-7866
Fax: (787)851-1717
Email: damarisqv@bufetequinones.com
BANCO POPULAR is represented by:
Luis C. Marini Biaggi, Esq.
Carolina Velaz-Rivero, Esq.
O'NEILL & BORGES
250 Munoz Rivera Avenue, Suite 800
San Juan, PR 00918-1813
Tel: (787)764-8181
Fax: (787)753-8944
Email: luis.marini@oneillborges.com
carolina.velaz@oneillborges.com
JOSE MERCADO is represented by:
Luisa S. Valle Castro, Esq.
C CONDE & ASSOCIATES
254 San Jose Street, 5th Floor
Old San Juan, PR 00901
Tel: (787)729-2900
Fax: (787)729-2203
Email: ls.valle@condelaw.com
XTREME MACHINING: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
The Office of the U.S. Trustee disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Xtreme Machining, LLC.
Xtreme Machining, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W. Pa. Case No. 16-70309) on April 22,
2016. The petition was signed by Robert A. Zelenky, president.
The case is assigned to Judge Jeffery A. Deller.
At the time of the filing, the Debtor estimated its assets at
$500,000 to $1 million and liabilities at $1 million to $10
million.
[^] BOOK REVIEW: The Sorcerer's Apprentice - Medical Miracles
-------------------------------------------------------------
Author: Sallie Tisdale
Publisher: BeardBooks
Softcover: 270 pages
List Price: $34.95
Review by Henry Berry
Order your own personal copy at http://is.gd/9SAfJR
An earlier edition of "The Sorcerer's Apprentice" won an American
Health Book Award in 1986. The book has been recognized as an
outstanding book on popular science. Tisdale brings to her subject
of the wide nd engrossing field of health and illness the
perspective, as well as the special sympathies and sensitivities,
of a registered nurse. She is an exceptionally skilled writer.
Again and again, her descriptions of ill individuals and images of
illnesses such as cancer and meningitis make a lasting impression.
Tisdale accomplishes the tricky business of bringing the reader to
an understanding of what persons experience when they are ill; and
in doing this, to understand more about the nature of illness as
well. Her style and aim as a writer are like that of a medical or
science journalist for leading major newspaper, say the "New York
Times" or "Los Angeles Times." To this informative, readable style
is added the probing interest and concern of the philosopher
trying to shed some light on one of the central and most
unsettling aspects of human existence. In this insightful,
illuminating, probing exploration of the mystery of illness,
Tisdale also outlines the limits of the effectiveness of
treatments and cures, even with modern medicine's store of
technology and drugs. These are often called "miracles" of modern
medicine. But from this author's perspective, with the most
serious, life-threatening, illnesses, doctors and other health-
care professionals are like sorcerer's trying to work magic on
them. They hope to bring improvement, but can never be sure what
they do will bring it about. Tisdale's intent is not to debunk
modern medicine, belittle its resources and ways, or suggest that
the medical profession holds out false hopes. Her intent is do
report on the mystery of serious illness as she has witnessed it
and from this, imagined what it is like in her varied work as a
registered nurse. She also writes from her own experiences in
being chronically ill when she was younger and the pain and
surgery going with this.
She writes, "I want to get at the reasons for the strange state of
amnesia we in the health professions find ourselves in. I want to
find clues to my weird experiences, try to sense the nature of
being sick." The amnesia of health professionals is their state of
mind from the demands placed on them all the time by patients,
employers, and society, as well as themselves, to cure illness, to
save lives, to make sick people feel better. Doctors, surgeons,
nurses, and other health-care professionals become primarily
technicians applying the wonders of modern medicine. Because of
the volume of patients, they do not get to spend much time with
any one or a few of them. It's all they can do to apply the
prescribed treatment, apply more of it if it doesn't work the
first time, and try something else if this treatment doesn't seem
to be effective. Added to this is keeping up with the new medical
studies and treatments. But Tisdale stepped out of this problem-
solving outlook, can-do, perfectionist mentality by opting to
spend most of her time in nursing homes, where she would be among
old persons she would see regularly, away from the high-charged
atmosphere of a hospital with its "many medical students,
technicians, administrators, and insurance review artists." To
stay on her "medical toes," she balanced this with working
occasional shifts in a nearby hospital. In her hospital work, she
worked in a neonatal intensive care unit (NICU), intensive care
unit (ICU), a burn center, and in a surgery room. From this
combination of work with the infirm, ill, and the latest medical
technology and procedures among highly-skilled professionals,
Tisdale learned that "being sick is the strangest of states." This
is not the lesson nearly all other health-care workers come away
with. For them, sick persons are like something that has to be
"fixed." They're focused on the practical, physical matter of
treating a malady. Unlike this author, they're not focused
consciously on the nature of pain and what the patient is
experiencing. The pragmatic, results-oriented medical profession
is focused on the effects of treatment. Tisdale brings into the
picture of health care and seriously-ill patients all of what the
medical profession in its amnesia, as she called it, overlooks.
Simply in describing what she observes, Tisdale leads those in the
medical profession as well as other interested readers to see what
they normally overlook, what they normally do not see in the
business and pressures of their work. She describes the beginning
of a hip-replacement operation, the surgeon "takes the scalpel and
cuts--the top of the hip to a third of the way down the thigh--and
cuts again through the globular yellow fat, and deeper. The
resident follows with a cautery, holding tiny spraying blood
vessels and burning them shut with an electric current. One small,
throbbing arteriole escapes, and his glasses and cheek are
splattered." One learns more about what is actually going on in an
operation from this and following passages than from seeing one of
those glimpses of operations commonly shown on TV. The author
explains the illness of meningitis, "The brain becomes swollen
with blood and tissue fluid, its entire surface layered with
pus...The pressure in the skull increases until the winding
convolutions of the brain are flattened out...The spreading
infection and pressure from the growing turbulent ocean sitting on
top of the brain cause permanent weakness and paralysis,
blindness, deafness...." This dramatic depiction of meningitis
brings together medical facts, symptoms, and effects on the
patient. Tisdale does this repeatedly to present illness and the
persons whose lives revolve around it from patients and relatives
to doctors and nurses in a light readers could never imagine, even
those who are immersed in this world.
Tisdale's main point is that the miracles of modern medicine do
not unquestionably end the miseries of illness, or even
unquestionably alleviate them. As much as they bring some relief
to ill individuals and sometimes cure illness, in many cases they
bring on other kinds of pains and sorrows. Tisdale reminds readers
that the mystery of illness does, and always will, elude the
miracle of medical technology, drugs, and practices. Part of the
mystery of the paradoxes of treatment and the elusiveness of
restored health for ill persons she focuses on is "simply the
mystery of illness. Erosion, obviously, is natural. Our bodies are
essentially entropic." This is what many persons, both among the
public and medical professionals, tend to forget. "The Sorcerer's
Apprentice" serves as a reminder that the faith and hope placed in
modern medicine need to be balanced with an awareness of the
mystery of illness which will always be a part of human life.
*********
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
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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
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liabilities delivered to nation's bankruptcy courts. The list
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Each Friday's edition of the TCR includes a review about a book of
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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
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Copyright 2016. All rights reserved. ISSN: 1520-9474.
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